The Federal Court has found architecture firm Ashton Raggatt McDougall Pty Ltd (ARM Architecture) and its former managing director Anthony (Tony) John Allen had attempted to rig bids for a tender relating to a $250-million building project at Darwin’s Charles Darwin University.
The Court ordered ARM Architecture to pay a penalty of $900,000 and Allen to pay a penalty of $75,000.
ARM Architecture admitted it had attempted to engage in cartel conduct when Allen sent emails to eight other architecture firms in September 2020 asking the firms not to bid for the second phase of the university project.
Allen admitted that he had attempted to induce the other architecture firms to make an arrangement or arrive at an understanding with ARM containing a cartel provision.
After the conduct was brought to its attention, Charles Darwin University excluded ARM Architecture from tendering for the project.
Allen left ARM in March 2022.
Australian Competition & Consumer Commission (ACCC) Chair Gina Cass-Gottlieb said: “This judgment should serve as a strong reminder for everyone, including professionals and professional services firms, that bid rigging is against the law, no matter what industry you are in.
“When a business attempts to rig a bid or form a cartel, they harm competition by unfairly seeking to advance their interests over those of its customers.
“When they do so on a public project, they are also doing so at the expense of the public purse.”
ARM Architecture was also ordered to conduct an education, training and compliance program relating to obligations under the Competition and Consumer Act and pay part of the ACCC’s costs.
Allen was also ordered to contribute to the ACCC’s costs, and to seek to have an educative notice about his experience published under his name on the website of the Architects Registration Board of Victoria, as a warning to other professionals.
In his educative notice, Allen has agreed to say: “I made a very serious mistake by attempting to induce the other firms to engage in bid-rigging, and this has had serious consequences for me.
“I have lost my position, my reputation, and my involvement in a profession that I love.
“Do not do what I did; learn from my mistakes – whatever pressure you may be under, and whatever motivation you may have, do not attempt to induce others to engage in cartel conduct.”
Cass-Gottlieb said the ACCC had recently enhanced its cartel detection program and encouraged public procurement officials to be alert to the signs of bid rigging and other cartel conduct in public tenders.
She added: “If they have any concerns, they can report the matter to the ACCC, and they can do so anonymously.”
The orders were made following joint submissions by the parties and the ACCC to the Court, including in relation to the form of final declarations and orders.