The construction sector remains under scrutiny as watchdog targets anti-competitive practices.
The Competition and Markets Authority (CMA) is piloting artificial intelligence to crack down on bid-rigging in public procurement. This move comes as the construction industry faces heightened investigation over collusion and corrupt practices.
The AI tool leverages large-scale data scraping to identify procurement markets deemed at “significant risk” of bid-rigging, a practice that undermines fair competition and inflates costs for taxpayers.
Sarah Cardell, chief executive of the CMA, described the tool’s potential to revolutionize detection efforts. “We know that procurement markets are at significant risk of bid-rigging,” Cardell said. “We’ve now got the capability to be able to scan data at scale, bidding data at scale, to spot anomalies in that bidding data and to identify areas of potential anti-competitive conduct.”
The tool, which has already undergone trials in a government department, has shown promising results. Cardell called the pilot “quite successful,” signaling its potential to reshape how authorities monitor procurement processes.
A Sector Under Fire
The construction industry has frequently been at the center of CMA investigations. In 2023, a major probe revealed widespread malpractice among demolition firms, leading to nearly £60 million in fines for 10 companies. The investigation also uncovered cases where firms exchanged “compensation payments,” further tarnishing the sector’s reputation.
Just last month, the CMA announced another bid-rigging inquiry, this time linked to the Department for Education’s Condition Improvement Fund. The fund, which allocates money to schools with aging or unsafe buildings, allegedly became a target for collusion. Unannounced inspections of roofing and construction firms revealed suspected illegal cooperation among contractors and technical advisors to secure contracts.
A High-Tech Approach to a Persistent Problem
The CMA’s AI initiative represents a proactive step in tackling systemic issues. While traditional investigations rely heavily on whistleblowers or lengthy audits, AI offers the ability to quickly analyze massive datasets for irregularities, potentially uncovering misconduct that would otherwise go unnoticed.
As the CMA refines its approach, the construction industry and other procurement-heavy sectors can expect increased scrutiny. The watchdog’s use of AI underscores its commitment to safeguarding competitive markets and protecting public funds from corrupt practices.
