Three Queensland construction companies fined for illegal collusion

The Federal Court in Brisbane has imposed penalties against three Queensland construction companies for engaging in illegal price controlling conduct known in the construction industry as cover pricing.

The conduct related to tenders for three state government construction projects in Queensland and one local government project. The projects were Rockhampton Airport, the Jilalan Inspection Shed, the Callemondah project, and the West Pacific Pines Project.

Justice John Logan imposed penalties against each company to be paid in instalments over 24 months:

• JM Kelly (Project Builders) Pty Ltd – $600,000;

• TF Woollam and Son Pty Ltd – $450,000; and

• Carmichael Builders Pty Ltd – $250,000.

"The conduct here is aptly described as price-controlling behaviour," Logan noted.

"It is a form of collusive tendering and an unlawful civil conspiracy."

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