The fines on civil engineering and infrastructure contractors are part of a wide-ranging investigation by the Nederlandse Mededingingsautoriteit (NMa) into the Dutch construction industry.

The NMa, which began its investigation in 1998, targeted projects that included major works at the Schiphol airport in Amsterdam and the HSL-Zuid high-speed railway link. Investigations into other subsectors, including installation and utilities, are due to be concluded later this year.

The action coincides with a pledge from Britain’s Office of Fair Trading to target the UK construction and housing market over the next three years.

An OFT spokesman said, however, that it was premature to expect a similarly wide-ranging inquiry.

Next month the NMa is expected to publicise the list of companies and their fines, once final negotiations with the firms have been concluded.

It is unclear whether any UK companies will be affected, although the list will feature some of the biggest contractors in the Netherlands. BAM, the largest Dutch builder, has made a €40 million provision for the fines while Heijmans has set aside €30 million.

Dutch financial analysts had expected heavier fines, which they feared could have hit future profits and dividend schedules.

Pieter Kalbfleisch, NMa director-general, said: “NMa enforces the law; our fines must be realistic. This also takes into account the economic circumstances of this moment and makes a contribution to the recovery of relationships between the construction sector and public authorities.”

The initial NMa investigation, which resulted in fines totalling €100 million, revealed that contractors, by coordinating their bids, had increased the cost of building a major tunnel near Schipol airport by 9 per cent.

The second phase of the NMa investigation focused on civil engineering contracts across the Netherlands, including the HSL-Zuid railway link.

Britain’s OFT is watching the NMa investigation, in particular its success in encouraging 140 companies to act as whistleblowers. Companies that voluntarily provided information will have their fines reduced by up to 50 per cent.

The OFT’s annual draft plan for 2005-06 lists the construction and housing sector, including related services such as estate agencies, as one of five key target areas.

It is the first time that the OFT has publicly declared what areas it intends to target over the next three years. Credit markets, healthcare markets, interaction between the Government and markets and mass-market scams will also be investigated.

The draft plan is expected to be finalised and published by the end of next month.

The NMa has offered companies discounts on their fines if they agree to an accelerated sanctions procedure.

The watchdog has appointed Hans Blankert, the former chairman of the Confederation of Netherlands Industry and Employers, to represent the companies that agree to speeding up the process.

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