Original Research

Limiting collusion in the construction industry: A review of the bid-rigging settlement in South Africa

Hardin Ratshisusu
Journal of Economic and Financial Sciences | Vol 7, No 4 | a386 | DOI: https://doi.org/10.4102/jef.v7i4.386 | © 2014 Hardin Ratshisusu | This work is licensed under CC Attribution 4.0
Submitted: 02 July 2018 | Published: 30 September 2014

About the author(s)

Hardin Ratshisusu, Competition Commission, South Africa

Full Text:

PDF (379KB)

Abstract

This paper undertakes a critical case analysis of the process and outcomes of the Competition Commission (CCSA) Fast Track Construction Settlement Project relative to the mandates of the CCSA and the Construction Industry Development Board (CIDB). The study reviews the information from the CCSA’s settlements, analysing the breakdown by private and public projects, type of project and the nature of bid-rigging. It provides an assessment of the practices involved and considers the cooperation that is required for the successful implementation of large infrastructure projects and how these can be organized in a way that ensures rivalry while enabling co-operation. The paper further reviews the barriers to entry, and the complementary measures that can be taken to ensure greater effective rivalry and participation. Interventions that could be necessary at the regulatory, procurement and firm level to ensure that the construction sector charts a new sustainable competitive path are highlighted. 


Keywords

regulation; construction industry; entry barriers; corporate leniency; cartel behaviour

Metrics

Total abstract views: 1992
Total article views: 1418

 

Crossref Citations

1. The impact of financial aspect on procurement procedures in achieving sustainable public procurement: A case of Zanzibar urban services project
Asha Ramadhan, William Gomera
International Journal of Research in Business and Social Science (2147- 4478)  vol: 11  issue: 10  first page: 265  year: 2022  
doi: 10.20525/ijrbs.v11i10.2147