Local authorities could take legal action against construction firms accused of rigging bids for council contracts.
Birmingham City Council is seeking assurances from firms named in the Office of Fair Trading report that they had not colluded in bidding for council contracts, and English Partnerships is to conduct a major review of its contract procedures.
The Office of Fair Trading has alleged that 112 construction companies were involved in cover pricing and colluded with other competitors to agree prices when tendering for contracts with local authorities, and other customers.
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