The Construction Cartel

Litigation funding for the pursuit of claims against STRABAG & PORR without cost, risk, or effort.

Your compensation

In case of success around 20% of the project costs, plus interest.

No risk

The pursuit of your claims is 100% financed. Only in case of success we receive a commission.

No effort

The entire process is managed for you by LitFin and the renowned law firm Brand Rechtsanwälte GmbH.

The construction cartel

2021 Federal Competition Authority has established in several decisions that at least 40 construction companies throughout Austria were involved in a cartel over a period of at least 15 years. Fines of over EUR 100 million have been legally imposed on the two largest of these companies, STRABAG AG and the PORR Group. The companies have admitted their involvement in the cartel and reduced their fines by cooperating extensively in the investigations. Investigations into further companies are ongoing.

The Authority found that, at least from July 2002 to October 2017, illegal price collusion was carried out by the participants and their bodies. The cartelists established a collusion system which largely eliminated competition in the Austrian construction industry through price agreements for public and private tenders, cover bids, market partition, the exchange of competition-sensitive information, as well as protection mechanisms and bidding rotation. At least 1127 construction projects were directly affected by this. According to the Cartel Court, however, there are a number of other projects that were certainly or very probably coordinated.

As a result of this conduct in violation of antitrust law, direct and indirect customers who commissioned construction projects during the cartel period suffered damages which can now be claimed.

Who is affected?

Due to its distinct organization and geographic scope, the cartel is very likely to have affected almost all major construction projects in Austria during the cartel period. Public and private tenders in particular, but also other construction projects, come into question. According to the Federal Competition Authority, the following projects in particular were under the influence of the cartel to the detriment of customers:

In civil engineering, the following structures are particularly affected:

● Federal roads (freeways and expressways)
● National Roads
● Municipal roads
● Private roads and parking lots
● Bridge structures
● Sewer and pipeline construction
● Earthworks
● Track structures

In building construction, the following buildings, among others, are affected:

● Private office and residential buildings
● Public schools and kindergartens
● Health Centers
● Gas stations
● Power plants
● Cemeteries
● Barracks
● Prison buildings
● Parking lots

It can be assumed that almost all construction projects in these areas have caused damage to the builders.

The cartelists

The Federal Competition Authority and the Cartel Court have already issued a legally binding decision that at least the two largest construction companies on the Austrian market, STRABAG AG and the PORR Group, were involved in the cartel. In addition, investigations are underway against more than 100 other companies as well as numerous suspects. At least 40-60 construction companies are alleged to have been involved in the cartel.

The amount of damage

The damage caused by the cartel can be immense. A study commissioned by the European Commission concluded that hardcore cartels result in a cartel-related markup of around 20 percent of the final price. Of course, the damage can also be considerably higher.

Since the construction cartel was an established cartel supported by numerous stabilizing measures, it can be assumed that customers suffered considerable damage here as well.

Our offer

LitFin offers injured customers the risk-free and cost-free assertion of their claims for damages against the cartelists by the renowned commercial law firm B-LAW. LitFin assumes all court, lawyer and expert costs and thus bears the entire litigation cost risk. Only in the event of success do we receive a commission for this.

Our offer is directed, subject to a case-by-case review, to all companies, local authorities and private individuals who have commissioned and carried out construction projects during the cartel period. The final combined price for these projects must also be at least EUR 500,000.

Legal representation will be provided by the experienced litigation team of the renowned law firm B-LAW – Brand Rechtsanwälte, specialized in cases of this kind. They will examine your claims and enforce them in court as well as out of court or in arbitration proceedings.

In this case, joint action has a number of advantages. Costs are saved, information is pooled and the negotiating position vis-à-vis the cartelists is strengthened. In addition, claims for damages can be asserted against each company involved in the cartel, which makes a joint strategy all the more attractive.

As a participant financed by us, you also bear no risk of litigation costs for the entire prosecution of the claim, i.e. both out-of-court and in the event of enforcement by legal action. There is no need to take out legal expenses insurance, as LitFin will finance the prosecution of the claim on your behalf.

In the event of success, you will receive the net proceeds achieved less our success commission, which is graded according to the amount of damage. It lies between 24 and 29 percent of the amount received from the cartelists.

Ausgaben für Bauvorhaben	Erfolgsprovision
Ab € 5 Mio.	25%
Ab € 20 Mio.	24%
Ab € 50 Mio.	23%
Ab € 100 Mio.	individuell

If you are interested in risk-free enforcement, please contact us without obligation using the contact form at the bottom of this website. We will then get back to you with further information and, after a thorough case review, a concrete offer.

Successful together.

Your advantages with LitFin

One of the largest litigation financiers in the EU at your side.
No lawyer, expert or court fees for you. - LitFin bears all costs.
No risk, both in terms of costs and the outcome of the proceedings.
No effort: You send us all the necessary documents and we take care of the rest. You will be kept informed of developments.
Representation by the renowned business law firm Brand Rechtsanwälte GmbH.
With strong resources and the best lawyers against STRABAG and PORR.
Local authorities fulfill their obligation to assert potential claims on behalf of their citizens.
Common interests: We only earn if you also succeed.

Registration

If you have questions or would like us to assess your claim, please contact us here for a free and non-binding consultation. We will then get back to you by email and are happy to set up a date for a personal call.

Alternatively, you can reach us directly at info@baukartell.at.

We are looking forward to hearing from you.

Frequently asked questions

Who can claim damages?

Anyone who commissioned construction projects from the construction companies involved in the cartel during the cartel period (July 2002 to October 2017) very likely suffered damages. This damage can now be claimed.

How much will it cost me to pursue a claim?

The pursuit of a claim does not involve any costs for the injured party. LitFin pays court costs, attorney fees and expert witness fees. We do not receive a commission for this only in the event of success. This means that only when compensation is actually paid out will our success commission be deducted. No success, no money for us!

What compensation can I expect?

The amount of compensation you can expect to receive is ultimately negotiated through a settlement or determined by the court. In most cartels, consumers incur damages of about 20% of the final price, which can be recovered, plus interest.

We partner with some of the most reputable economists who use your data to compare your expenses to the prices you would have paid for the projects in a "healthy" market. The difference represents the damage and can be claimed in court.

What happens after registration with LitFin?

You will receive all relevant information and documents in writing so that you can decide whether you want to participate. We will make you a concrete offer after reviewing your documents. If you join, you will remain the owner of your claim. This claim will be pursued in or out of court by the lawyers of Brand Rechtsanwälte GmbH. LitFin will bear all costs.

What documents and information do I need to make a claim?

This depends on the type of construction project. In any case, the contract with the construction company and the paid invoices are needed for proof. If the project was awarded through a tender, we would also ask you for the relevant documents regarding this. After registration and an initial meeting, we will inform you in detail about what is necessary for the successful enforcement of your claims.

How long will the procedure take?

It is difficult to predict how long it will take, but it is expected that a first instance claim will take at least 1-3 years to receive a decision from a court. Our goal is to reach a settlement agreement with the cartelists. Experience shows that this is much faster and saves costs.

Throughout the proceedings, you will be kept informed of relevant developments in the case.

Why shouldn't I just pursue my claim myself with my lawyer?

Of course, every injured party is free to pursue their claim themselves with their personal attorney. However, there are some advantages to proceeding together. Costs are saved, relevant knowledge and data are exchanged, and the negotiating position against the usually well-resourced opposing party in the proceedings is improved. Moreover, if you choose LitFin financing, you do not have to spend money yourself, nor do you have to make use of your legal expenses insurance.