Industry council calls for whistle blowers

Exclusive by Kathy Watson

The Construction Industry Council has set up a system whereby whistle blowers can identify and tackle private and public sector clients who try to beat consultants down on fees during post-tender negotiations.

Now if miscreants fail to come into line they could be named and shamed by the council. Details of the service have been sent to members in an information note urging them to 'let CIC complain on your behalf'.

Richard Biggs, secretary of the fees task force that has spearheaded the initiative, said consultants' hands have been tied in the past although it was known that malpractice by clients was widespread. "Clients tend to break the rules by not selecting on quality, but trying to go for the lowest price, thereby doing the industry a disservice. Their consultants are then in a difficult position. If they complain they will not get asked to work for that client again."

Under the scheme consultants will be able to complain in confidence to CIC chief executive Graham Watts. The council will then contact the client to remind them about fee competition best practice and quality assessment. Biggs admitted the scheme might expose individuals behaving badly in an otherwise well run client organisation which would enable their bosses to act.

Antony Pollington, secretary of the Construction Clients' Forum, welcomed the new service. "Every policy statement we have issued takes the line this is against best practice, so we would not be happy if there was dependable evidence that it is occurring and we would be prepared to say so." But he admitted it would be difficult for the CCF to take any stronger action against miscreant members.

The council has been at the forefront in the publication of guidelines setting out good practice in fee competition and quality assessments. The principles in its earlier booklets have been incorporated in the Construction Industry Board publication: Selecting Consultants for the Team: Balancing Quality and Price. Similar principles are contained in the CIC's own book, A Guide to Quality Based Selection of Consultants.

It is promising to use reports of non-compliance to compile statistics to promote best practice further.

The issue of unfair post-tender negotiations was tested in court recently by cladding specialist Harmon over a contract on Portcullis House, the new Parliament building. Harmon had gone into liquidation and therefore had nothing to lose in suing an organisation claiming unfair treatment in post-tender negotiations. The court found in Harmon's favour.