The UK Contractors Group and National Federation of Builders have, together with Construction News, jointly launched a competition law code of conduct to help avoid breaches of competition law by the construction industry.

The code highlights the need for construction companies to have rigorous internal procedures to prevent anti competitive practices.

For those companies who have not yet established internal compliance regimes, the Code will be backed up with guidance and training.

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The Code is being launched in response to the recent OFT investigation into

"cover pricing" in the construction industry.

A decision on fines is expected in September.

Stephen Ratcliffe, Director of UKCG, said: "The Code is not merely a statement of high level principles. On the contrary, it has real substance. All UKCG members have individual competition law compliance regimes within their businesses which ensure they are able to implement the Code's principles."

Speaking about the Code's launch Julia Evans, Chief Executive of the NFB, said: "This Code of Conduct is an effective and visible way of demonstrating that the

industry has understood the OFT's message.

"We also hope it will provide some reassurance to public sector clients seeking evidence that contractors are aware of their obligations."

(GK/BMcc)