In the sun-soaked state of Florida, where hurricanes and harsh weather demand robust infrastructure, a federal investigation into bid rigging among commercial roofing contractors has sent shockwaves through the industry. Launched roughly two years ago by the FBI and the Department of Education’s Office of the Inspector General, the probe targets anticompetitive practices that allegedly inflated costs for critical roofing projects across central Florida. As of early 2025, four individuals and one company had pleaded guilty to violating the Sherman Act by conspiring to rig bids on commercial roofing services, including installations and repairs for flat and sloped roofs in various facilities. With sentencings pending throughout the year, the case highlights the vulnerabilities in competitive bidding processes, especially in a region prone to natural disasters that necessitate frequent repairs.
The defendants include prominent figures in the roofing world. Douglas Sutter, president and owner of Sarasota-based Sutter Roofing Co.—honored as Roofing Contractor's 2021 Commercial Roofing Contractor of the Year—pleaded guilty in January 2025. Sutter emphasized personal accountability, stating, “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.” His charge relates solely to privately funded projects, and he expressed a desire to educate peers: “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.”
Glenn Bailey, former CEO of Colonial Roofing Inc. in Sarasota, and Chris Rakos, the company's president, also entered guilty pleas. Colonial specializes in condominium associations' repair and maintenance. A spokesman for Colonial, Mark Hubbard, described the scheme as “comp bidding,” where companies submit intentionally high bids to meet competitive requirements without genuine competition. In response, Colonial implemented an antitrust policy, trained staff on compliance, and bolstered internal controls. Kenneth Cody, branch manager at Fort Lauderdale's Service Works Commercial Roofing, and the company itself rounded out the guilty pleas, with the firm's sentencing occurring in early 2025.
The conspiracies, spanning from 2017 to 2022 in some reports, affected an estimated $7 million in contracts. Federal officials underscore the importance of fair bidding for infrastructure, particularly in Florida's storm-vulnerable communities. Some projects involved school facilities, prompting involvement from education inspectors to safeguard public funds. The Department of Justice noted that such rigging undermines free markets and could lead to higher costs for consumers and taxpayers.
Industry implications are profound. Bid rigging erodes trust, potentially leading to stricter regulations and oversight. Contractors may face increased scrutiny, with calls for enhanced training on antitrust laws. While no collaboration between Sutter and Colonial was indicated, the cases reveal how "complementary bidding" can distort markets. Additional charges emerged in late 2024, suggesting the investigation continues.
As Florida rebuilds from recurring storms, this scandal serves as a cautionary tale. Roofing firms are urged to prioritize ethical practices to foster genuine competition. With potential penalties including fines up to $100 million for companies and up to 10 years in prison for individuals, the outcomes—still unfolding as of late 2025—could reshape bidding norms. Stakeholders recommend consulting legal experts and adopting compliance programs to navigate this evolving landscape.
