Competition watchdog suspects two interior-construction firms of rigging tenders worth over S$7 million
The companies now have six weeks to make representations to the Competition and Consumer Commission of Singapore in support of their case
TWO interior-construction companies were on Thursday (May 23) issued legal notices by Singapore’s competition watchdog for allegedly rigging tender bids worth more than S$7 million.
Tarkus Interiors and Flex Connect (previously known as Facility Link) were handed the notices, known as Proposed Infringement Decisions, by the Competition and Consumer Commission of Singapore (CCCS).
The companies now have six weeks to make their individual representations or to provide any other information in support of their case for CCCS’ consideration, before the watchdog makes its final decision.
Tarkus and Flex Connect are in the business of providing interior fit-out construction services, which can include the construction of interior partitions, mechanical, electrical and plumbing works and finishings.
The allegedly rigged bids were for the supply of such works to 12 non-residential properties in Singapore – offices, retail spaces and food-and-beverage outlets.
These tenders were called from August 2016 to August 2021, and valued at between S$150,000 and S$7.7 million.
The Proposed Infringement Decisions set out the facts of the alleged collusion. In a statement on Thursday, the CCCS said its investigations indicated that Tarkus and Flex Connect undertook “concerted practices” and anti-competitive agreements to rig the bids for the tenders.
For example, one party would request a supporting quotation from the other, which it believed to be higher than its own. The other party would then provide this higher quotation to the customer. At times, one party would specify a price for the other party to use in the supporting quotation.
CCCS said that such arrangements between the companies removed competitive pressure between them to submit their best offers to customers. It said: “As a result, customers suffered, as they were unable to obtain offers that could provide the best value.”
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