Does My Business Need The Common Assessment Standard?

With the new updates in supply chain processes, you may be asking yourself, “Do I need the Common Assessment Standard?”. Here, we take a look at your legal responsibilities and why you should adopt the Common Assessment Standard.

Do I Need The Common Assessment Standard?

There are two approaches to answering the question “Do I need the Common Assessment Standard?”, and we’ll answer both in detail to build a clear picture of what you need to be doing.

Is The Common Assessment Standard A Legal Requirement?

The first response is about your legal obligation, so perhaps the question “Is the Common Assessment Standard mandatory?” is more appropriate. The Common Assessment Standard is not a legal requirement — yet. Legal documentation in the construction industry is ever-changing, and this is the latest update to an existing process. That being said, the Common Assessment Standard is a pre-qualification requirement for any company specifying this accreditation.

Whether it is a legal obligation or not should, of course, not be the only incentive for adopting the Common Assessment Standard. Many industry standards are not mandatory but enormously benefit the suppliers who adopt them. The Common Assessment Standard can provide a competitive advantage for bidding for projects, amongst other benefits.

Related Reading: Powerful Benefits Of The Common Assessment Standard

While construction is one of the most regulated industries in the UK, there is often a lot of overlap in the entire supply chain process. The Common Assessment Standard will streamline those processes and improve the standards as a whole across the industry. As more construction companies mandate Common Assessment Standard accreditation of the suppliers they work with, we expect to see this level of certification become the industry norm.

Why You Should Be Adopting The Common Assessment Standard

The follow-up question is less about if you must adopt the Common Assessment Standard and more about if you should. There is a vast range of benefits of compliance with the Common Assessment Standard, but ultimately to get ahead, this is something you’re going to want to be doing for your business. Growing numbers of contractors are taking steps to get accredited, and so to stay competitive, we recommend you do the same. Being ahead of the curve and getting accredited sooner rather than later will give you the edge on competitors that are not as responsive.

Since the Common Assessment is still reasonably new in the industry, it is also an excellent opportunity for contractors to benefit from the positive PR that being accredited will bring. Promoting your business as compliant will help generate new work opportunities and demonstrate your commitment to risk management to potential clients.

Related Reading: Why Is The Common Assessment Standard Important In Construction?

Achieving the Common Assessment Standard will benefit contractors in getting new business, but the thorough nature of the framework is also reassuring for those who adopt it. Taking a close look at your business practices to ensure compliance is an excellent way to confirm that risks are kept to a minimum. The Common Assessment Standard covers 13 areas of risk. These are: 

• Identity
• Finance
• Corporate and Professional Standing
• Health and Safety
• Environment
• Quality Assurance
• Equality
• Corporate Social Responsibility (CSR)
• Information Security and GDPR
• Building Information Modelling
• Anti-Bribery and Corruption
• Modern Slavery.

For contractors, this means demonstrating that every step is being taken to ensure risks are reduced or eliminated in the above areas. During the process of gaining accreditation, suppliers will be able to identify any potential risks and address them swiftly. It’s essentially a full audit of your business in areas not necessarily covered by other health and safety directives. This comprehensive list will help combat a greater number of potential hazards.

Is The Common Assessment Standard a Requirement For Construction Companies?

On the other side of the process, there are also questions around whether construction companies must specify the Common Assessment Standard in their PQQ process. As with the Common Assessment Standard from a supplier point of view, it isn’t currently mandatory for construction companies to dictate that their contractors must be accredited. While not a requirement for construction companies, it is extremely advantageous.

That this is the industry-agreed standard gives an indication that it’s something construction companies should strive to achieve. The Construction Leadership Council (CLC) is also adopting the Common Assessment Standard for government procurement and is endorsing the standard for the Construction Playbook.

When questioning whether the Common Assessment Standard is worth it, construction companies should consider the consequences of non-compliance. Companies won’t benefit from the thorough assessment of contractor’s risk management. As the industry sees a shift towards this more comprehensive risk management framework, companies that haven’t made the upgrade may get left behind. There’s also the argument that it opens up construction companies to suppliers that they know won’t be conducting as thorough an assessment of their business practices, leaving them more vulnerable to risk.

As it becomes the norm across the industry, companies choosing not to adopt the Common Assessment Standard will be in the minority. As a standard proposed and endorsed by leading industry bodies, it is in a company’s best interest to get on board. It will help clients to remain competitive with businesses already operating with the standard in place. Companies that already mandate the Common Assessment Standard include:

• Balfour Beatty
• Costain
• Derwent London
• HS2
• Kier
• Mace
• Multiplex
• Sir Robert McAlpine
• Sisk
• Skanska.

Several assessment bodies are qualified to carry out the Comment Assessment Standard, so contractors can choose which one they use to gain accreditation. This flexibility enables the industry to have “one standard, many providers”, which will help ensure this is rolled out across the sector and not just in the pool of contractors from one service provider.

Follow CHAS Insights to get more information and insights on the Common Assessment Standard. For more information on whether you need the Common Assessment Standard and how it can benefit your business, check out our Common Assessment Standard guidance. Sign up and become a CHAS Elite member to demonstrate compliance with SSIP, PAS 91 and Common Assessment Standard guidelines.