2024-05-09
		
		
		The Office for the Protection of Competition imposed fines totalling CZK 7,442,000 on the construction companies B.H.S. BOHEMIA, a.s., SEŽEV facility s.r.o., COMMODUM, spol. s r.o. and Hroší stavby Morava a.s. for participation in cartel agreements concerning public procurement in construction sector. The decision has already become final, the parties to the proceedings have fulfilled the conditions for settlement and have not filed an appeal.
		
			
		
		
		The above mentioned undertakings illegally colluded on their participation and bids in public contracts awarded by the Railway Administration in 2015, namely "Demolition works on buildings managed by the OŘ Brno" (B.H.S. BOHEMIA and SEŽEV facility), "Okrouhlice, RZZ building - repair of the building" (B.H.S. BOHEMIA and COMMODUM) and "Tišnov, RZZ building - repair of the outer shell" (B.H.S. BOHEMIA and Hroší stavby Morava). The members of the cartel then submitted their coordinated bids to the Contracting Authority, thereby acting in a concerted practise with the aim to distort competition.
The Office identified the indexation of the individual item prices in the bids and found, after taking evidence, that this indexation must have been the result of agreements between the parties to the proceedings.
When setting the fines, the Office based its decision on the value of the public contracts that were the subject of the prohibited agreement. The fine for the undertaking B.H.S. BOHEMIA was increased by 25 % and 20 % for its participation in all three agreements. For the other parties, the fines were increased to reach at least 0,5 % of the undertaking's total net turnover and to fulfil their punitive function. All the parties have complied with the conditions for settlement, for which their fines were reduced by 20 %. The undertakings B.H.S. BOHEMIA and Hroší stavby Morava also achieved a further reduction of the fine by introducing an effective compliance programme to prevent possible future infringements of competition law.
 
The fines for the cartel members are:
B.H.S. BOHEMIA, a.s.         CZK 538,000 
SEŽEV facility s.r.o.             CZK 2,052,000 
COMMODUM, spol. s r.o.    CZK 1,761,000 
Hroší stavby Morava a.s.     CZK 3,091,000 
 
Press Unit of the Office for the Protection of Competition
24/078 – S0570/2022
 
		
		
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Construction Companies Fined for Colluding in Public Procurement Cartel

The Office for the Protection of Competition in the Czech Republic imposed fines totaling CZK 7,442,000 on construction companies B.H.S. BOHEMIA, SEŽEV facility, COMMODUM, and Hroší stavby Morava for engaging in cartel agreements in public procurement.

The companies colluded on bids for public contracts awarded by the Railway Administration in 2015, submitting coordinated bids to distort competition. The Office found evidence of price indexation in the bids, indicating agreements among the companies.

Fines were based on the value of the public contracts involved, with increases for certain companies based on their participation in multiple agreements. Fines were reduced for all parties due to compliance with settlement conditions, and further reductions were granted for implementing effective compliance programs.



Construction Companies Fined for Colluding in Public Procurement Cartel

Construction companies in the Czech Republic were fined for participating in cartel agreements related to public procurement in the construction sector, resulting in distorted competition.