Open AccessLimiting collusion in the construction industry: A review of the bid-rigging settlement in South Africa
Author(s) -
Hardin Ratshisusu
Publication year - 2014
Publication title -
journal of economic and financial sciences
Language(s) - English
Resource type - Journals
eISSN - 2312-2803
pISSN - 1995-7076
DOI - 10.4102/jef.v7i4.386
Subject(s) - rivalry , procurement , collusion , competition (biology) , business , settlement (finance) , commission , call for bids , limiting , public work , construction industry , human settlement , industrial organization , finance , economics , marketing , engineering , public administration , mechanical engineering , ecology , biology , payment , macroeconomics , construction engineering , political science , waste management
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.