Anti-competitive Activities Policy

Purpose and scope

Hydrock is committed to behaving legally and ethically in all aspects of procurement and competition. This policy statement sets out our position in terms of behaviours associated with market competition. It clearly sets out our position that fair and open competition is ultimately in the best interests of the business and the wider economy.

It identifies the legal basis for anti-competitive behaviour and identifies 'red flags' that should be reported to the management team if they are observed.

Introduction

As a company and as individuals we are obliged by law to comply with various rules at a national level that are designed to ensure that competition between businesses within the UK is not unduly restricted. Competition compliance is all about upholding these rules and more importantly about being seen to uphold these rules.

Under the United Kingdom Competition Act (CA) there are prohibitions on anti-competitive agreements and rules relating to abusive conduct by dominant businesses. The Enterprise Act (EA) creates individual liability by making it a criminal offence for any individual dishonestly entering into an agreement relating to price-fixing, market sharing, bid-rigging or production-limiting cartels.

The impacts of breaking anti-competitive laws are:

» Failure to comply with competition rules can have an extremely high financial cost. The Office of Fair Trading can impose fines of up to % of worldwide turnover for one year

» Any agreement that infringes competition law may be wholly or partially invalid which means that the company cannot enforce it.

» Orders which can be made against us to cease or modify the infringing agreement or practice may result in an unanticipated outcome.

» Third parties who suffer loss as a result of anti-competitive behaviour may be able to claim damages from us for their loss.

» Investigations into the company and findings of infringements attract adverse press comment.

» Investigations and possible legal proceedings resulting from infringements can take years to resolve, leading to high costs and taking up management time that should be devoted to more profitable projects.

» There is also an increased risk of further complaints against the company and ongoing surveillance by the competition authorities.

» Blacklisting of the company from public sector procurement.

Who must comply with this Policy?

This policy applies to all persons working for Hydrock or on Hydrock’s behalf in any capacity. This includes: employees at all levels, directors, officers, agency workers, seconded workers, volunteers, interns, agents, contractors, external consultants, third‐party representatives and business partners, or any other person associated with Hydrock, wherever located.

What you must not do (red flags)

You (or someone acting on your behalf) should not:

» Enter into an agreement (verbally or in written form) relating to price fixing, bid rigging, sharing markets or customers, sharing commercially sensitive information.

» Discuss the prices you’re going to charge your customers with your competitors. You’ll be breaking the law if you agree with another business:

» to charge the same prices to your customers

» to offer discounts or increase your prices at the same time

» to charge the same fees to intermediaries

» Discuss bids for a contract tender with your competitors. Bid rigging includes:

» agreeing with your competitors how much you’ll bid for a contract or share information about your bid

» taking turns to win contracts

» asking other businesses to bid when they do not want the contract (called ‘cover bids’)

» paying other businesses not to bid or when you win a tender

» agreeing with other businesses not to bid or to withdrawing your bid

» Agree with other businesses to share markets or customers. You’ll be breaking competition law if you agree with another business:

» not to approach each other’s customers

» not to compete with them for customers, for example in specific locations

» Share information with other businesses that might reduce competition between you, for example information about:

» prices

» production

» your suppliers, customers or contractors

» the markets you sell or plan to sell to

It should be noted that you can legitimately share information where this is for the purposes of jointly bidding for a contract where Hydrock acts as the lead or sub-consultant.

What you must do

» Ensure that you read, understand and comply with this policy.

» Avoid any activity that might lead to, or suggest, a breach of this policy.

» Have raised awareness of these issues where others may begin to share information or suggest actions that might lead to a breach

» Notify your line manager, or their line manager, as soon as possible if you believe or suspect that a breach of this policy has occurred, or may occur in the future. Should you feel you are unable to report a breach of this policy to either your line manager or their line manager, the reporting procedure outlined within the ‘Whistleblowing’ policy should be followed.

Dr Scott Elliott, Managing Director June