What is PQQ In Construction?

What is a PQQ (pre-qualification questionnaire) in construction? We understand that not everyone will know about PQQs, but we believe it’s vital to understand what a PQQ is and why it’s important. Let’s learn more about PQQs and how they benefit the construction industry.

What is Procurement?

Before highlighting the importance of a PQQ in construction, let’s explain what procurement is. Procurement is the process of obtaining a product or service.

Construction companies utilise procurement to help complete projects both on time and safely. Typically, the process of procurement in construction involves:

• Identification
• Selecting potential vendors
• Negotiating
• Awarding contracts

The procurement process is a key part of a company’s strategy, regardless of whether they’re working in construction. From engineers and architects to suppliers, there are numerous professionals involved in construction projects.

With a great procurement process, all parties can work together following health and safety regulations while aiming to complete projects in a cost-effective and timely manner.

What is a PQQ?

Used in procurement, PQQ is key in helping assess the suitability of potential contractors and suppliers. A PQQ is a pre-qualification questionnaire and is used in the assessment of suppliers and contractors on whether or not a buyer should proceed with their services.

The initial stage of the tender process often begins with a PQQ, which comes before someone is invited to tender. The overall PQQ process removes any suppliers who prove to be unsuitable for the tendering process.

A PQQ is a useful and effective tool, commonly used in public sector procurement. Suppliers will answer a list of questions based on the requirements of a company. Although the PQQ document involves financial questions, it also focuses on:

• Company information
• What they do
• How they’ve worked on similar contracts
• Insurances
• Health and safety policies

In order to be successful participants in the selection process, suppliers are highly encouraged to demonstrate a firm commitment to fulfilling all established criteria to the best of their ability. By doing so, suppliers can significantly increase their chances of being selected and moving forward in the process.

The Importance of a PQQ

PQQs hold great importance in helping companies determine who meets the set requirements of a specific role. Questions within a PQQ vary – including different topics.

The questions allow suppliers to demonstrate their industry experience, expertise, and credentials – but what makes PQQs so important?

Risk Management

More and more subcontractors are under pressure, and many are going into administration.

For buyers, this highlights the need to check who they’re working with. Having this assurance is an absolute must – at Compliance Chain, we can give you this assurance.

We have an API with Creditsafe, so you can see in real time what a subcontractor’s account looks like. We can give you peace of mind when selecting your subcontractors.

If you’re a supplier, you can sign up to Compliance Chain to demonstrate your compliance and prove you are adhering to premier industry standards. 

Ultimately, having an effective risk management strategy in place can give you a higher chance of being shortlisted. You will gain a competitive edge over your competitors, who have less effective risk management plans in place.

Quality Control

A PQQ helps to ensure suppliers are worthy of bidding on contracts. Suppliers must meet certain criteria – this helps massively reduce the chance of an unqualified company even being able to bid on a contract or work. 

A PQQ assesses the overall capability of a supplier with questions regarding experience, past projects and certifications.

Transparency & Accountability

A PQQ is completely transparent, outlining clear criteria for both potential contractors and suppliers. Such transparency ensures that any applicants are 100% aware of any set requirements, as well as how they’ll be valued.

By using a PQQ, all applicants will be answering standardised questions – not only is this a fair way to choose contractors and suppliers, but it also reduces the chance of issues occurring later down the line once the questions have been answered.

A PQQ often asks questions regarding the financial stability of applicants and wants to see compliance records, holding applicants accountable for past business decisions.

Compliance

You’ll need to ensure that all compliance and certification documents are on hand and up-to-date while completing a PQQ. This can be a time-consuming process. For a chance of success, contractors and suppliers will need proof of compliance.

It’s important, especially for those working in construction, to follow such compliance and ensure that everyone involved in current or upcoming projects is practicing health and safety, along with other regulations.

PQQs require proof of compliance from potential contractors and suppliers. Whether it be certifications (such as ISO 45001), financials and other accreditations, a PQQ ensures contractors and suppliers meet necessary standards.

Get in Touch With Compliance Chain Today

At Compliance Chain, you can pre-qualify for opportunities and have all of your accreditations and certifications in one place. With us, suppliers can become SSIP accredited. We will give a thorough review of your health and safety policies and procedures.

We understand the difficulties that come with finding trustworthy and compliant suppliers, which is why we’re here to help.

If you require any additional information on finding new compliant suppliers, or if you’re a supplier and want to demonstrate your compliance to premier industry standards, please contact a member of our team today or download our brochure.