Positive changes in Dutch construction industry, but NMa remains vigilant

The Dutch construction industry as a whole has witnessed a change in the way it conducts business since the Dutch government started to tackle the fraudulent practices in the industry. At the same time, there are indications that price-fixing has not yet been rooted out completely. This picture of the current state of the construction industry is painted in a survey by the Netherlands Competition Authority (NMa) that was carried out among 500 industry professionals. The survey's objective was to find out what exactly has changed, according to construction companies, clients and other parties concerned, in the industry after 2004, the year in which the NMa fined more than 1,400 construction companies.

'The report shows that the prohibition of cartels enjoys increased support from the construction industry,' says Mr. Pieter Kalbfleisch, chairman of the Board of the NMa, in response to the publication of the report. 'More than three out of four respondents agree with the statement that it was a good thing that the NMa tackled the fraudulent practices in the construction industry. In my observation, the industry is becoming much more aware of what is allowed and what is prohibited according to the Dutch Competition Act. This increased awareness is beneficial to the compliance with the prohibition of cartels. At the same time, the survey reveals that the NMa's work is not yet done,' says Mr. Kalbfleisch. One out of four contractors indicate that they know other companies that play less by the rules than they do. A small group (four per cent) even say that, once in a while, they still get approached by others to fix prices. Furthermore, almost half of the contractors indicate making a genuine risk assessment once in a while as to whether or not to break official regulations. 'That is why we will continue to keep a close eye on the industry. And we will take measures against those who violate the Competition Act,' warned Mr. Kalbfleisch.


The results of the survey further show respondents indicating that transparency in business practices is increasing, and that the quality of works is improving. However, the respondents also see the relationship between client and contractor becoming more distant, and that there are more rules and formalities. Contractors are often particularly critical of the application of procurement rules by government clients.


The entire report (in Dutch) can be downloaded here.