A Building Industry Taskforce (Taskforce) referral to the Australian Competition and Consumer Commission (ACCC) has resulted in penalties and costs totalling $210,000 against a major building company, Bovis Lend Lease.
The Federal Court also ordered that Bovis be restrained for four years from making an arrangement with the Construction Forestry Mining and Energy Union (CFMEU) for the purpose of preventing or hindering Bovis from acquiring construction services from any subcontractor it has contracted with or regularly deals with.
The ACCC alleged that the CFMEU and Bovis reached an arrangement or understanding that Bovis would not use a subcontractor, Bernmar Projects Pty Ltd, on the Landmark building site in the ACT. Bovis admitted to engaging in this conduct in contravention of the Trade Practices Act 1974 (TPA).
In a clear message the court imposed a penalty of $100,000 and ordered Bovis to pay the ACCC’s costs of $110,000. Bovis also agreed to pay Bernmar $50,000 in compensation.
The ABCC’s predecessor, the Taskforce, initially investigated this matter. On receipt of legal advice that there was evidence of a breach of the TPA, the Taskforce referred the results of its investigation, including 11 witness statements and interviews, to the ACCC in July 2004.
This case demonstrates the positive effect of the ABCC appropriately referring allegations of unlawful conduct to the relevant agencies. Further, it demonstrates that those referrals may produce significant outcomes.
The hearing of the ACCC case against the CFMEU and its members David Noonan and Laslo Lanscar relating to the same matter is complete and judgement is reserved.
Related document:
ACCC media statement – Bovis Lend Lease ordered to pay $100,000 penalty