F. Allied Construction, President Plead Guilty to Bid-Rigging

The case, heard in federal court in Detroit, is part of an ongoing federal antitrust investigation in the asphalt paving sector.

Photo by Carol M. Highsmith Archive/Library of Congress. Cropped from the original

Clarkston, Mich.-based contractor F. Allied Construction Co. Inc. and its president Andrew Foster conspired with two other asphalt paving companies between June 2013 and June 2016 and, separately from July 2017 to May 2021, to rig bids, while creating the appearance of competition for projects by intentionally submitting losing bids, prosecutors say.

The firm's vice president of estimating, Kevin Shell, pleaded guilty to similar charges earlier Aug. 18. Prosecutors did not name the other contractors that participated in the scheme.

Allied and Foster each pleaded guilty to two counts of conspiracy to restrain trade. Their sentencing is scheduled for Dec. 12. Foster faces as much as 10 years in prison and a $1 million fine, while the company faces a criminal fine of up to $100 million.

Attorneys representing the company and Foster did not immediately respond to inquiries about the case.

The case was investigated by the U.S. Dept. of Justice Antitrust Division along with the U.S. Dept. of Transportation and U.S. Postal Service. Deputy Attorney General Manish Kumar said in a statement that the agencies are committed to uncovering “schemes that undermine competition in the transportation infrastructure sector.”

James Leggate is an online news editor at ENR. He has reported on a variety of issues for more than 10 years and his work has contributed to several regional Associated Press Media Editors and Murrow award wins.