Vetting services costly to industry

by Paul Donovan



A senior manager of a construction company has warned that the industry could fall prey to the growing number of firms selling vetting services.

The warning follows a letter from the chief executive of Richmond-upon-Thames Council to contractor Neilcott which said that, in future, contractors and suppliers for council work will be selected from a vetted list, known as Sinclair's listing, compiled by Exor Management Services (EMS).

Jeremy Thorp, marketing manager at Neilcott said: "What is not clear is why they [Richmond] have not used Constructionline?" Constructionline is a service backed by the Department of the Environment, Transport and the Regions and provides public sector clients with lists of contractors and consultants who have been vetted for financial and technical competence.

Thorp believes Richmond's move represents two dangers, first decreasing the effectiveness of Constructionline and second of escalating costs to contractors. "This company is on over 100 approved lists and if we had to pay £350 for every listing then it would cost £50,000 each year and that cannot be right," said Thorp.

A spokeswoman for Richmond-upon-Thames Council said: "The directory was chosen because it will save officers' time and covers everything the council purchases. Council officers were asked what they required and who the suppliers were and that information was given to Exor who then provided a tailored service."

EMS emphasises that it is not in competition and offers a distinctly different service to that of Constructionline. "Constructionline applies to the construction industry with the people who apply only being vetted once. Our system does not just apply to the construction sector but to every single supplier to local authorities," said Paul Carter, marketing manager of EMS.

EMS claims to operate a daily working list that involves firms being vetted against financial, credit and health and safety criteria. The list is aimed exclusively at local authorities. EMS has been in existence for two years and includes Forest Heath Council in Surrey and Richmond-upon-Thames among its clients. "We are talking to another 50 councils and a team from Camden Council are coming to look at our procedures," said Carter.

The initial application fee to be placed on the Sinclair Listing is £58.75 with a further annual fee of £260 for limited companies. There is then an additional charge of £10 for every category that a company is listed under.

Constructionline is free to clients whereas contractors and consultants are charged an annual fee which starts at £70 for small firms.

The council was unwilling to comment as to whether it would receive a lower quality list if construction companies refused to register with EMS because they had already paid to join Constructionline.