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Construction Industry

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Abstract

The OECD Competition Committee debated issues related to the Construction Industry in June 2008. This roundtable addressed the special characteristics of the construction industry as they relate to competition law and policy. Construction is a critical sector in OECD economies because it builds and maintains the structures and infrastructure on which almost every other industry depends. Unfortunately, the construction industry has also tended to suffer from cartel activity, as shown by a spate of well - publicised recent matters from around the world. The roundtable includes an examination of why this industry seems to be more prone to cartel formation than other industries. It also looked into the complications that may arise when multiple construction firms use the same bid calculation software. Finally, the Committee discussed the arguments – occasionally made by industry advocates – that competition is either irrelevant or “ruinous” in the construction industry. Neither argument was found to be persuasive, as there are no distinguishing features of the construction sector that reduce the benefits that competition brings to consumer welfare.

Suggested Citation

  • Oecd, 2010. "Construction Industry," OECD Journal: Competition Law and Policy, OECD Publishing, vol. 10(1), pages 153-171.
    • Handle: RePEc:oec:dafkaa:5kmhbhp87tbv
    DOI: 10.1787/clp-10-5kmhbhp87tbv
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    Cited by:

    1. Al-Maamary, Hilal M.S. & Kazem, Hussein A. & Chaichan, Miqdam T., 2017. "Climate change: The game changer in the Gulf Cooperation Council Region," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 555-576.
    2. Stéphanie Boulenger & Marcelin Joanis, 2015. "Analyse économique des marchés publics dans l’industrie de la construction au Québec," CIRANO Project Reports 2015rp-23, CIRANO.
    3. Peter J. Rimmer & Howard Dick, 2010. "Appropriate Economic Space for Transnational Infrastructural Projects: Gateways, Multimodal Corridors, and Special Economic Zones," Working Papers id:2946, eSocialSciences.
    4. Quezada, George & Bratanova, Alexandra & Boughen, N & Hajkowicz, Stefan, 2016. "Are you ready for change? Farsight for construction: Exploratory scenarios for Queensland’s construction industry to 2036," MPRA Paper 114021, University Library of Munich, Germany.

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