Further to last week’s £17.9m fine (the largest of any imposed on the 103 companies) imposed on Kier by the OFT arising from its investigation into cover-pricing in the construction industry, in a detailed statement Kier said it was further considering its position.

According to Kier, the fine has been calculated by reference to Kier Group plc's entire worldwide group turnover (not just that for Kier Regional Limited) for the year to 30 June 2008 (£2.3bn).  In the case of certain companies with group turnover in excess of Kier but where the fine is lower, the applicable turnover was calculated by reference to the ownership structure in place at the time the infringement occurred, not the acquiring group.

Kier's fine was not reduced for leniency as the OFT closed the window for leniency prior to Kier becoming aware of its involvement in the OFT's investigation.

Kier said that the level of the fine it had received, compared with others did not indicate a more serious breach of the Competition Act 1998 and that the breach for Kier related specifically to cover-pricing which is at the lower end of the spectrum of the suggested anti-competitive activity. It also pointed out that although Kier was not one the six companies found to have made compensation payments to other parties, the fines for those six companies were nevertheless lower than that for Kier.

Kier said it was ‘very disappointed’ at the level of the fine imposed by the OFT, commenting that it was the largest fine of any of those investigated, despite the fact that Kier's infringements were at the lower level of the offences committed and that the company had co-operated openly with the OFT throughout the entire investigation.

Kier concluded by saying that it was continuing to assess the OFT's decision and is considering its position.