Federal investigators in Florida have been looking into bid-rigging by several roofing contractors on multiple projects for roughly two years. 

As part of the ongoing investigation coordinated by the FBI and the Department of Education’s Office of the Inspector General, four contractors and one company have pleaded guilty for their roles in what government officials described as bid-rigging conspiracies throughout central Florida.

Kenneth Cody, branch manager at Service Works Commercial Roofing of Fort Lauderdale, recently pleaded guilty to a conspiracy to suppress and eliminate competition by rigging bids on commercial roofing projects violating the Sherman Act, a news release from the Department of Justice stated. 

The company also pleaded guilty to the charge – and faces sentencing this month. Cody did not respond to requests for comment from RC. Attempts to reach Cody at Service Works by publication time were unsuccessful. 

Earlier this month, contractors Glenn Bailey and Douglas Sutter each entered guilty pleas in the United States District Court for the Middle District of Florida to the same charge. According to the plea agreements, the defendants knowingly entered into a conspiracy to restrain trade by rigging bids for commercial roofing services. The news release stated that the roofing services included installing and repairing flat and sloped roofs in commercial and other facilities.  

Sutter is the president and owner of Sutter Roofing Co., based in Sarasota. He would not discuss the case while sentencing is pending later this year. Yet he issued a statement indicating any wrongdoing was his own and not the company’s. 

“I took responsibility for this situation from the very beginning, and while it has been an unfortunate experience, it has also highlighted the nuances of antitrust laws and their vital role in supporting free and open markets where innovation and competition can thrive,” RC’s 2021 Commercial Roofing Contractor of the Year said in the written statement. 

Bailey was the CEO of Colonial Roofing Inc., a Sarasota-based roofer specializing in condominium association repair, maintenance and roof replacements. Chris Rakos, Colonial’s president, also pleaded guilty to the same crime late last year. Both await sentencing later this year. 

Mark Hubbard, a spokesman for Colonial Roofing, said Rakos fully cooperated with investigators looking into antitrust violations in the Florida commercial roofing industry.

"The investigation focused on a practice known as 'comp bidding,' in which one or more roofing companies agree to submit an intentionally high bid to satisfy competitive bidding requirements for a particular job," Hubbard said.

Colonial Roofing adopted an antitrust policy, educated its team on antitrust compliance and proper bidding processes, and enhanced internal controls to ensure compliance with all laws and regulations going forward, Hubbard stated.

Phone messages for Bailey were not returned by publication time. 

There is no indication that Sutter and Colonial officials worked together in the conspiracies. 

Federal investigators noted in the release that Florida communities deal with hurricanes and other harsh weather conditions that demand services for critical infrastructure, like roofs. They added that the bidding process for constructing and maintaining that infrastructure needs to be fair and is under continued scrutiny from law enforcement. Since some projects involve school facilities, investigators with the Department of Education said they are working with law enforcement to aggressively pursue anyone misappropriating education funds.

The single charge against Sutter is related strictly to privately funded projects. He indicated he wants to help other contractors learn from his experience. 

“My hope is that others will draw lessons from my experience to strengthen their business practices and ensure that employees at every level understand these laws and the risks they entail,” he said in his written statement. 

Editor’s Note: Roofing Contractor is committed to providing the resources and insights contractors need to improve their businesses and navigate challenges. Stay tuned for upcoming content exploring how to avoid legal pitfalls and build a stronger, more resilient business.