In the following paragraphs I would like to explain the true meaning of third party inspection (TPI), the significance of independence or autonomy, and I will provide some details about the additional kinds of inspection organizations.
So, what exactly are TPI agencies and what type of services do they offer?
According to the quality standards provided in the ISO 17020, there are three types of inspection bodies. The third party inspection is the first and it is solely responsible for inspections services. Unlike the other accreditation types, TPIs cannot participate in other activities such as installation, supply, procurement, fabrication, and design.
This quality standard also requires all parties to have access to the third party inspection organizations and their services. This requirement is what makes the presence of TPI organizations so important to the functionality of businesses that are involved in purchasing, selling, etc.
This means that a third party inspection institute delivers their services to buyers, custom authorities, engineering companies, and sellers, along with every other company that has to follow safety or quality rules and policies.
Principles of confidentiality, impartiality, integrity, and independence have a substantial role within the operation of a TPI organization.
It is necessary for the TPI organization to carry out their procedures in a style that is unbiased.
Due to these requirements, when a contract is awarded by a buyer or seller to the third party inspection agency, the inspection must be done independently.
In cases where an argument occurs between the seller and buyer, then neither party should anticipate that the TPI organization will provide a judgment according to their motives.
Sometimes, purchasers and vendors have made the case that their status as the customer should compel the contracted inspector to provide services with their interests in mind.
But, due to the TPI standard that requires autonomy or independence, this notion is false. If adopted, this approach would clearly harm the integrity of the TPI organization. Consequently, no company would trust the inspection services given.
The second types of the inspection bodies are not independent companies. They are small departments in the big companies. The company's main activities are: procurement, design and construction. The inspection departments within these companies only provide services to their own companies. When a company purchases an equipment or material, then this inspection department will do required inspection activities regarding this purchase. For instance, an inspection department of an oil refinery or a quality control department of an engineering company is categorized on this group.
The third one is an inspection unit in a large scale firm that provides inspection services to its own firm purchase orders as well as provides similar services to the other firms. The example can be an EPC contractor quality control department which provides inspection services to other EPC contractors.
However, it happens very infrequently, the inspection bodies either are in the first category or in second one. We do not have lots of inspection bodies in the third type.
Another common question relating to the third party inspection is: Why is it considered third party and who are the first and second parties?
Well, the seller, vendor, or manufacturer is considered the first party. Then the buyer, engineering company, or end user is designated as the second party.
The third party will provide their inspection services independent of either party.
Meaning that the first and second parties will likely carry out inspections of their own, but the third party is brought along to remove what is known as a conflict of interest.
Be aware that anyone working for an engineering company, vendor, or seller can't officially be called an inspector. They are just quality control employee.
The official title of inspector can only belong to individuals who work for an accredited third party inspection organization or those that are employed by an owner. These people are deemed as owner inspectors.
So, what exactly are TPI agencies and what type of services do they offer?
According to the quality standards provided in the ISO 17020, there are three types of inspection bodies. The third party inspection is the first and it is solely responsible for inspections services. Unlike the other accreditation types, TPIs cannot participate in other activities such as installation, supply, procurement, fabrication, and design.
This quality standard also requires all parties to have access to the third party inspection organizations and their services. This requirement is what makes the presence of TPI organizations so important to the functionality of businesses that are involved in purchasing, selling, etc.
This means that a third party inspection institute delivers their services to buyers, custom authorities, engineering companies, and sellers, along with every other company that has to follow safety or quality rules and policies.
Principles of confidentiality, impartiality, integrity, and independence have a substantial role within the operation of a TPI organization.
It is necessary for the TPI organization to carry out their procedures in a style that is unbiased.
Due to these requirements, when a contract is awarded by a buyer or seller to the third party inspection agency, the inspection must be done independently.
In cases where an argument occurs between the seller and buyer, then neither party should anticipate that the TPI organization will provide a judgment according to their motives.
Sometimes, purchasers and vendors have made the case that their status as the customer should compel the contracted inspector to provide services with their interests in mind.
But, due to the TPI standard that requires autonomy or independence, this notion is false. If adopted, this approach would clearly harm the integrity of the TPI organization. Consequently, no company would trust the inspection services given.
The second types of the inspection bodies are not independent companies. They are small departments in the big companies. The company's main activities are: procurement, design and construction. The inspection departments within these companies only provide services to their own companies. When a company purchases an equipment or material, then this inspection department will do required inspection activities regarding this purchase. For instance, an inspection department of an oil refinery or a quality control department of an engineering company is categorized on this group.
The third one is an inspection unit in a large scale firm that provides inspection services to its own firm purchase orders as well as provides similar services to the other firms. The example can be an EPC contractor quality control department which provides inspection services to other EPC contractors.
However, it happens very infrequently, the inspection bodies either are in the first category or in second one. We do not have lots of inspection bodies in the third type.
Another common question relating to the third party inspection is: Why is it considered third party and who are the first and second parties?
Well, the seller, vendor, or manufacturer is considered the first party. Then the buyer, engineering company, or end user is designated as the second party.
The third party will provide their inspection services independent of either party.
Meaning that the first and second parties will likely carry out inspections of their own, but the third party is brought along to remove what is known as a conflict of interest.
Be aware that anyone working for an engineering company, vendor, or seller can't officially be called an inspector. They are just quality control employee.
The official title of inspector can only belong to individuals who work for an accredited third party inspection organization or those that are employed by an owner. These people are deemed as owner inspectors.
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