More than a third of contractors believe fraud is a major problem in the property maintenance industry, according to a report by corporate property maintenance consultant Nickleby & Co Ltd.
The Closed Shop? Report polled property maintenance and management contractors, and found that 34% and 18% respectively believe fraud is a major problem.
A further 31% of contractors believe that contracts and tenders are being lost due to unethical practices in the procurement process, with two-thirds stating that they are often forced to bid low to win a contract.
The news follows one of the largest Competition Act investigations by the Office of Fair Trading (OFT), which accused 112 construction firms of price rigging.
This includes housebuilders, commercial and industrial constructors and public sector contractors, working on schools, universities and hospitals.
“Cartel activity of the type alleged today harms the economy by distorting competition and keeping prices artificially high,” said OFT chief executive John Fingleton.
Nickleby’s survey also found that a fifth of contractors believe that maintenance spend is wasted and that long-term, planned and preventative maintenance could yield £2.7bn-worth of savings.
