Due to the actions of a whistleblower The Netherlands was confronted with a massive case of construction fraud involving almost the entire construction sector. Price fixing, prior consulting, duplicate accounts, fictitious invoices and active corruption of civil servants were rampant practices. This case description concentrates on price fixing and prior consulting which were long standing industry practices that only became illegal in 1998. We trace the history of price fixing in the construction sector and the institutional factors that pushed the sector into price fixing. We consider several institutional proposals to solve the issue as presented by a parliamentary investigation committee as well as the building sector itself.
|Title of host publication||European Business Ethics Casebook|
|Editors||W. Dubbink, L. van Liedekerke, H. van Luijk|
|Place of Publication||Dordrecht|
|Number of pages||182|
|Publication status||Published - 2011|
|Name||Issues in Business Ethics|