ARM Architecture hit with $1m in fines over bid rigging

Work on Charles Darwin University’s Darwin CBD campus. Picture: Charles Darwin University

The Federal Court has ordered leading commercial firm ARM Architecture to pay nearly $1m in fines because its former managing director attempted to rig bids for a $250m building project at Charles Darwin University.

The court ordered ARM Architecture to pay a penalty of $900,000 and former managing director Tony Allen to pay $75,000.

In a statement, ARM said Mr Allen was no longer with the business and the firm had gained no advantage from his actions.

“To resolve the matter as efficiently as possible and minimise disruption within the firm, ARM has accepted liability and negotiated a settlement with the Australian Competition & Consumer Commission.

“The settlement of $900,000 is to be paid over five years,” the statement reads.

According to the ACCC, ARM admitted it had attempted to engage in cartel conduct when Mr 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.

Mr 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. Mr Allen left ARM in March 2022.

“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,” ACCC chair Gina Cass-Gottlieb said.

“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 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.

Mr 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.

In a statement, Mr Allen said he made a very serious mistake by attempting to induce the other firms to engage in bid-rigging, and this has had serious consequences for him.

“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,” his statement reads. “Whatever pressure you may be under, and whatever motivation you may have, do not attempt to induce others to engage in cartel conduct.”