6.41 I recommend that the CIEC and the Constructors Liaison Group (CLG) should produce a joint Code of Practice for the Selection of Subcontractors (by main contractors land by other subcontractors). This should contain:

4. Commitments to short tender lists (especially for design and construct work).

Commitments to selection on quality and price (especially for work with a design input).

The contractor should confirm, when offering a subcontract document to domestic subcontractors, that it complies with the principles set out in Chapter 5 of this Report and with the provisions of the Construction Contracts Bill (see Chapter 8). A similar procedure should be adopted by first line subcontractors to their sub-subcontractors. (Below that level this should only be followed if formal contract documentation is used.) A similar system is used on public sector schemes in Germany.

4 Dutch auctioning should be explicitly ruled out. Specific provision should be made for tenders to be opened simultaneously at a predetermined time, date and place, and in the presence of the tenderers or their nominees, or of a mutually acceptable independent witness.⁴⁸

5. Main contractors should notify clients automatically in advance of the commencement of work of the names and addresses of all firms of domestic subcontractors to be employed on the site, whether or not they have previously "named" them, so that they can exercise the right to object to any. This should relate only to the first level of subcontractors.

6. Subcontractors should undertake that, in the spirit of teamwork, they will co-ordinate their activities effectively with each other, and thereby assist the achievement of the main contractor's overall programme. They may need to price for such interface work. (This is part of the "win-win" culture in the USA and Germany.)

Public clients should require adherence to the Code by firms tendering for public sector livork. Other client organisations should strongly encourage their members to do likewise.