Ready-Mix Price Collusion Upheld

(Construction Claims Advisor: Vol. 24, Iss. 11, July 1, 2026)

Editor's Notes - Case Summaries

It is common for people in the same industry or line of work to discuss business. Trade associations exist primarily to address challenges or problems common to the trade, but any discussion that includes the cost or pricing structure of individual businesses is a slippery slope.

A federal district court convicted an executive of a ready-mix concrete company for criminal conspiracy to restrain trade. The defendant tried to portray his communication with competitors as innocent trade talk. A federal appeals court, however, ruled that the evidence supported findings of price fixing, bid rigging and market allocation. See: United States v. John David Melton

The other case in this issue involved a labor union’s ability to recover from a public works payment bond. The union alleged that a subcontractor on a job had failed to pay mandatory contributions to employee benefit plans. A Massachusetts court ruled that a collective bargaining agreement created a “contractual relationship” between the prime contractor (the principal on the payment bond) and the labor union.

Exchange of Price Information Led to Bid Rigging Conviction

A federal appeals court has ruled that although the exchange of cost or pricing information among competitors is not necessarily a criminal act, a jury may infer price fixing or bid rigging from such communication.

Labor Union May Recover Against Public Works Payment Bond

A Massachusetts appellate court has ruled that for purposes of public works payment bond protection, a labor union had a “contractual relationship” with the prime contractor. The union could pursue the bond for a subcontractor’s unpaid benefit plan contributions.