The Office for Fair Trading has imposed a fine of £200 million on more than hundred British leading construction companies for rigging bids on building projects through out the country.

The OFT said112 construction companies pushed the cost of building schools, universities, hospitals and all that up by engaging in illegal bid rigging activities from 2000 to 2006.

The regulator added the companies, which included Balfour Beatty, Galliford Try and the like, artificially inflated the bill.

Some of the accused companies have admitted their wrong doing to get a rebate of 1-2 per cent in fines.

Local Government Association said, "There can be no excuse for any form of cover price or bid rigging which leaves councils and taxpayers picking up the bill."

Construction companies used to agree secretly on the prices before submitting during a tender process. A company that did not want to win the project would submit a very high price. Eventually the winner would reward that company with secret payment.

All that would give false impression of the level of competition.

According to many, total penalty is lower than expected.

(Via TopNews United Kingdom. Contributed by Sunil Kumar)