ACCC institutes against demolition and asbestos removal companies for alleged price-fixing
The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court, Adelaide against McMahon Services Pty Ltd, SA Demolition & Salvage Pty Ltd, DCD Enterprises Pty Ltd (trading as D & V Services) and a number of their representatives for alleged price-fixing of a tender for demolition and asbestos removal work.
In late 2000, the Defence Estate Office of the Commonwealth Department of Defence invited a number of companies to tender for a project involving the removal of asbestos and the demolition of structures at its site in Salisbury, South Australia. McMahon Services and SA Demolition were two of the companies invited to tender.
The ACCC alleges that in response to the invitation to tender:
McMahon Services communicated to SA Demolition (through D & V Services), the price that SA Demolition should tender for the project;
McMahon Services advised SA Demolition and D & V Services that if SA Demolition tendered at the price specified and McMahon Services was awarded the tender, it would give the companies $50,000;
McMahon Services also advised that if it won the tender it would subcontract D & V Services to undertake the asbestos removal component of the project and furthermore, may provide SA Demolition with some work on the project carting materials;
SA Demolition tendered at the specified price;
in or around the time that it was awarded the tender, McMahon Services sub-contracted D & V Services to carry out the asbestos removal work on the project; and
soon after, McMahon Services paid $50,000 to D & V Services and SA Demolition.
The ACCC is seeking orders including:
declarations;
pecuniary penalties;
injunctions;
findings of fact;
the implementation of a trade practices compliance program; and
costs.
A directions hearing is listed for 9.45 a.m. on 27 February 2003 in the Federal Court, Adelaide.
