6.19 Prequalification is an effective system which allows clients to seek tenders from contractors (and also consultants) of equivalent size, capability and experience. Strictly speaking, this is a two stage procedure. "Qualification" means a contractor getting on to an approved list at all. "Prequalification" means drawing up a list of firms which are suitable for a particular project. The first stage is the necessary gateway to the second. The DOEs CMIS offers a service to all Government Departments36. As of 23 February 1994, there were 7893 contractors on the CMIS list37. The CMIS application form sent to contractors is 6 sides of A4 paper long,. and contains 24 questions. The Department of Transport also maintains a list of contractors. There are about 400 firms on that list, of whom around 40 are capable of undertaking work with the value of over €4 million. The DOT form is six sides of A4 paper and contains 18 questions. Both the DOE and the DOT also ask applicants to submit similar documentation such as company (and parent company) accounts. Most local authorities and other public sector clients also keep lists.
6.20 Such duplication of effort is a wasteful burden for the construction industry. It also adds to clients' costs, not only because of increased prices from firms but also because of the resource implications of maintaining separate lists. Attempts to rationalise the procedures in the past have not met with success. The National Joint Consultative Committee for Building drafted two questionnaires in 1988. The first was a fourteen page A4 document for the inclusion of a contractor in a general approved local authority list. The other was twelve pages, and intended for specific projects. They were unable to reach agreement with the Local Authority Associations upon these proposed forms. The NJCC have now devised two more questionnaires, 14 and 11 pages respectively, for General Lists and Specific Projects. They were due for publication in June 1994. The Northern Ireland Housing Executive (NIHE), which is the largest Government client in Northern Ireland, keeps a "Register of Approved Contractors". It has a nine page form, with 27 questions, accompanied by a nine page guidance note written in clear and simple English, which describes its contracts policy. Both main contractors and subcontractors are required to be registered if they wish to be considered for any NIHE work38. There are currently 1200 firms on the NIHE list, and there is a three page, 12 question annual review and reassessment form for those firms already on the list.
6.21 The European Union is taking an increasing interest in qualification systems. CEN, the European Standardisation Body, has been asked to consider the feasibility of drawing up common criteria. The most likely outcome is that a firm which has qualified in its own country within the EU would be permitted to tender for work elsewhere without having also to qualify in the country where it wishes to tender. The lack of a single, central UK system of qualification could effectively deny UK contractors opportunities in the rest of Europe once mutual recognition of EU systems is achieved. This is not a theoretical issue. British firms are already working in other EU countries, and vice versa, but all go through a fresh qualification procedure. Pressure for mutual recognition is likely to be strong, as also are possible harmonisation arrangements for the accreditation of individual skills.
6.22 It is now appropriate for the DOE to develop CMIS as the central United Kingdom resource. That would provide the basis for an official register of contractors, and subcontractors, and would also assist clients and designers to assess competence under the CDM regulations (see Chapter 7, paragraphs 7.6 to 7.9).
6.23 A registration system for public sector work would allow for other factors to be taken into account in assessing the quality, competence and suitability for work of contractors and subcontractors on the list. Additional questions should also be posed, designed to improve productivity and competitiveness, and relating to quality controls, research and development, training arrangements and specialist skills. I am advised that EU legislation may preclude some of these issues being used as part of the selection process. If this is the case, the Government should consider arguing for amendments to the EU legislation. The Local Government Act 1988 may also require amendment in this regard. The DOE may also wish to include the questions normally asked by local authorities regarding outlawing of discrimination.
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36 The CMIS list can also be consulted by private clients, in that they would be informed, if they enquire of the DOE, if a specific contractor is on the list.
37 For reference see footnote 28.
38 Electrical contractors are specifically required to be registered with the National Inspection Council for Electrical Installation Contracting, and to have attained quality assurance (QA) certification to at least BS 5750 part 3.