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Warning about sub-contractors vetting schemes under CDM
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Posted By Arran Linton - Smith MIOSH RSP
A worried client of ours has just alerted me to sub-contractor vetting scheme, which is operated through one large construction organisation.
It works like this:
1. X Construction Plc has sub-contracted their vetting process onto Y Health and Safety Consultants
2. Y Consultants then approach X Construction's sub-contractors in order to vet them for the Contractors Compliance Scheme, however there is a £500 fee which all potential sub-contractor are expected to pay.
3. Before Z sub-contractor may be considered for inclusion on to X Construction Plc's tender list, they have to pass Y Consultants vetting process.
4. Y Consultants appear to be also, using this scheme to obtain further safety advisory and training work for their own benefit.
This scheme does not appear to have any quality control process and this is particularly worrying as they are asking for confidential information. Checks undertaken through IOSH and IIRSM on Y Consultants have only identified one individual who is an Associate Member of IOSH.
Have any other Members come across this or a similar scheme?
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Rank: Guest
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Posted By Ciaran McAleenan
Arran,
Firstly I am encouraged to note that a principal contractor is being proactive in health and safety by vetting any sub-contractors that he intends using in future contracts. I am sure that he is not alone in this process. Whatever your or your clients concerns are at this stage that is a positive point to note. Whether the system he is using is the best available technique is always a debatable point since most of us tend to hold subjective opinion on that one. I gather from your posting, however, is that he is using a system that if applied equally to all prospective sub-contractors should be fair and equitable.
I will now address what I understand to be the concerns that you have raised;
1. The principal contractor’s vetting scheme is an internal company matter. The Client (CDM definition) is the person that will ultimately need to be convinced of the competence (technical, safety, financial etc) of the principal contractor and any nominated sub-contractors. Having a vetting scheme in place might help the decision making process but a competent Client will not take it on face value.
2. It is the responsibility of the principal contractor to ensure that he has engaged a competent H&S consultancy to operate the vetting scheme. (Remember that holding IOSH or IIRSM membership does not guarantee H&S competency no more than not holding it proves incompetence).
3. The vetting scheme is a contractual matter between the principal contractor and potential sub-contractors. If any of the sub-contractors feel the H&S consultancy is breaching confidentiality, operating outside of its remit or acting in a manner that creates a conflict of interest they should raise the matter with the principal contractor.
Finally for your information the IOSH, the Construction Industry Federation in NI and the major Client organisations (Government Agencies) have been working together for the last couple of years to produce a 3rd party H&S accreditation scheme for contractors. The scheme is well advanced and with any luck will be operational in 2001. This should go a long way towards allaying both your and your clients fears and in the long run the contractor you refer to might find it more cost-effective to use this process.
Regards
Ciaran
mailto: ciaran@confinedspaces.com
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Rank: Guest
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Posted By peter gotch
Arran,
Have heard about similar scheme, sorry scam, operating in Central Belt of Scotland.
Housing Association client employs consultant (Directors understood to be ex fireman, and ex Environmental Health Officer) to vet contractors.
They then go to sub-contractors indicating that they will not work for contractors unless they cough up x 100 pounds as payment to be 100% compliant with all relevant H&S legislation (I wish!)
If they ever try this on us, we will be on to both HSE and Trading Standards, because I think this is fraudulent practice.
Only come accross the consultancy once. The contractor they were engaged by moved onto another consultancy within a matter of months.
Regards, Peter.
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Posted By Arran Linton - Smith MIOSH RSP
Peter Gotch ,
Your point is very interesting and I am glad you made it.
Our client (Z sub-contractor) has since run a financial check on the vetting consultant Co. (Y) and we have subsequently discovered that in a very short period of trading,(Y) has developed a very interesting financial history.
It would certainly be interesting to know if the consultant Co. (Y) now has any Professional Indemnity Insurance .
Unfortunately I cannot elaborate on details of this story, however our client has indicated that they certainly will not be handing over the £500 vetting fee.
In relation to Ciarans point, The principal contractors vetting scheme is an internal company matter, as the principal contractor is a public listed company, surly this is also going to be a shareholder matter under the Turnbal reforms.
Another point Ciaran made, It is the responsibility of the principal contractor to ensure that he has engaged a competent H&S consultancy to operate the vetting scheme, however in this case it does not appear to have been adequately undertaken.
I am aware that H&S consultancy vetting is now a growing industry and I am also aware that there are a growing number virtual H&S consultancy who dont directly employ any Health and Safety Practitioners, but sub-contract all their work out. If I were a solicitor, this type of practice is prohibited under the Law Societies Solicitors Practice Rules. Unfortunately any-one can call themselves H&S consultants.
Has CDM now moved on to another chapter, where the sub-contractor has now to vet the competence of principal contractors vetting sub-contractor, before they submit themselves to being vetted for sub-contractor competence.
Interesting.
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Posted By Allan St.John Holt
What a nice little earner!! There are quite a few 'Del Boys' around in the H&S consultancy business these days. And of course the principal contractor likes the idea, as it doesn't cost him anything because the money for the consultants comes from the vetted subbies. So as long as the process works or appears to work the principal contractor would see no reason to change. But, as has been pointed out, he's taking a risk by relying on potentially inadequate vetting to come up with competent contractors.
The sooner the passport schemes come into wide use the better in my opinion.
The wider issue is that anyone can indeed set themselves up as a consultant, and offer very cheap rates for a poor service. The pity of it is that in the construction industry there is no shortage of (smaller) clients who are only interested in getting minimal 'cover' at the cheapest price. If you have no overheads to speak of, then the new/small/young/unqualified consultancy will always have the price advantage.
Quite what to do about that is anybody's guess, though I have found the answer is to head for the specialist niche market where the newcomers are unlikely to be able to compete. Interesting and frustrating, isn't it?
Allan
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Posted By Arran Linton - Smith
Allan,
You hit the nail right on the head with this one, however it was a big name in construction with their own safety department which fell for this particular scheme.
Sub-contracting, sub-contractor or contractor vetting appears to be a new growing industry and I have also discovered one local authority undertaking this practice. Anything outside the scope of your famous text book, like OHSAS 18001 Certification completely throws them.
On one famous occasion, I saw one contractor rejected via one of these schemes because as they quoted, "there is no such thing as BS 8800".
On another occasion I saw a contractor being asked to submit COSHH hazard data sheets.
Also, what VDU assessments have you undertaken?
What is a Statutory Instrument?
In terms of your list of overheads, you did not mention the Professional Indemnity Insurance which they are very unlikly to have.
Interesting and frustrating, it is and we cannot win !
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Posted By ken Parker
I have only one comment to make. Why is it that those of us that are new to this forum have to be continually subjected to the que jumbers with their specific subjects time and again. We have read your message, but your continual que jumping takes valuable time and expence from us beginers. I treat this forum as a valuble learning curve by readinding reponces to questions. I sometimes wonder if those that are more qualified than the rest of us are just playing games. i don't mean to be rude, its just htat I treat this forum as a very valuable sie for information for us poor, beleaugered begineers, even though I have been a H&S rep for tghe past 24 years
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Posted By ken Parker
In responce to my last message my apologise for the failure of my spell checker. I didn't use it.i am not trying to be predantict, rude, smart or anything else. this forum for up and coming H&SC personnel can notbe beaten. My main gripe is about que jumping and the way that some of the professionals / gurus treat it at the expence of us lesser qualified people who just want to learn. Usining the web can be expensive whilst you are still studying to be competent/ qualified.I don't like having to go through threads time and again that I have been through because of que jumping.
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Posted By Ralph Ellington
Contractor and sub-contractor vetting is an area where some additional HSE guidance would not go amiss. Yes I do know about "Managing Contractors : a guide for employers" but that is aimed at the chemical industry.
I do checks for my employer on contractors including those wishing to be admitted to our select list. You might be amused to hear of a contractor who claimed to belong to a range of trade and professional institutions. Right there in the list of organisations to which they belonged was the Health and Safety Executive. I was mightily impressed!
Regards, Ralph Ellington
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Posted By peter gotch
Ralph,
You will find guidance in Reports 172 and 173 published by the Construction Industry Research and Information Association (CIRIA)
"CDM Regulations - Practical guidance for clients and clients' agents"
"CDM Regulations - Practical guidance for planning supervisors"
An example questionnaire was deliberately not included in these Reports as they are trying to make the point that enquiries should be horses for courses.
Seasons greetings, Peter.
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Posted By Richard Jones
Ciaran,
I thought it might be worth expanding on your final point - for the sake of clarity:
The scheme you refer to will be a "Certificated Audit Scheme", carried out by International Register of Certificated Auditors (IRCA) qualified, Registered Safety Practitioners.
IOSH will not accredit the scheme but will be co-signatories on certificates that are issued to successful participating companies. The certificate will indicate that the particular company has satisfied the auditor that their H&S Management System meets the requirements of the scheme.
Richard Jones
Head of Technical Affairs - IOSH
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Warning about sub-contractors vetting schemes under CDM
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