Blog 036 - The Billion Pound PQQ

So several of the Tier 1’s have now signed up to a new “common PQQ” system, a move which they have announced will save billions. This is a positive move, undoubtedly but it will need a hard shift from more Tier 1’s for it to actually be beneficial.

The concept being that the supply chain can undertake one PQQ, saving endless hours of paperwork and the Tier 1’s can use it as a database. Not only will they save themselves administration fees in the writing, management and maintenance of their own PQQ’s but the Supply Chain will only need to complete this process once and it be applicable to all employers.

Whilst pleasing that it is now becoming a reality, this is not a new concept, with the former “National Specialist Contractors Council” (now part of Build UK) championing the PAS 91 PQQ system 10 years ago, imagine the wastage that could have been saved in the last decade.

The true test will come from the adoption rate of this system, this research formed part of my dissertation studies many years ago and a big consideration I put forward at the time was the cost accreditation and PQQ to the supply chain. If this doesn’t receive widespread adoption and the supply chain are still required to subscribe to many PQQ systems, individual PQQ systems, Quality management systems, safety management systems, approved databases and the like, then the savings will never be truly realised. The small but significant point I made 10 years ago was that CHAS registration at the time was around £3k per annum, an insignificant sum to many contractors but a very large sum to many SME Trade Contractors who are being increasingly asked to register with such accreditation bodies.

Build UK have come out in support of this movement, but just as they (forming part of the CLC) have shown their influence during this pandemic, it is time for them to do it again, pushing wholesale adoption out across the industry to effect truly beneficial and lasting improvements to the red tape costing our industry billions of pounds of thousands of lost man days. This is a very positive move for the industry and I want to see it really take hold. Specialist Contractors can do their part by trying to push the standard PQQ, but in a competitive world, I am realistic about the success of a bottom up approach! Hopefully, through collaboration, using top down and bottom up, we can cut down on the PQQ paper storm and return our industry to a well oiled machine focusing on delivering the improbable, the task that we do so well.

Next step, standard and common contract forms, now that really will save billions…

If you want to discuss any questions you have relating to PQQ’s or require help joining certain supply chains, please drop me an email and we can have a chat.