In this article we will explain the definition of third party inspection (TPI), the importance of independence, and provide brief information on the other types of inspection organizations.
So, what exactly are TPI agencies and what type of services do they offer?
Based on the quality criteria presented in the ISO 17020, you will find three types of inspection organizations. The first is third party inspection and it's exclusively accountable for providing inspection services. Unlike the other types, TPI organizations are not able to be involved in procurement, fabrication, supply, design, and installation.
This quality standard makes it necessary for all parties to possess access to the third party inspection agencies and their services. This demand is what makes the existence of the third party inspection agencies so important on the buying and selling contracts and orders.
This means that a third party inspection organization offers their services to custom authorities, sellers, buyers, engineering firms, and any other businesses that are involved in the exchange of goods or services that must adhere to quality or safety codes and regulations.
Issues of independence, impartiality, integrity, and confidentiality have a major part in the performance of a third party inspection agency.
It is necessary for the TPI organization to carry out their procedures in a style that is unbiased.
On account of these conditions, when a contract is ordered by a seller or buyer, their commodity shall be inspected on an independent basis.
If a dispute arises among the buyer and seller, then neither party should expect the TPI organization to make a judgment based on their individual interests.
In some cases, buyers and sellers have made the argument that their position as the client should force the contracted inspector to act under their authority and interest.
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 engineering companies have a department that is called quality control department. This department provides quality control services to the purchase order that issued by procurement section. This type of organization is the second type of inspection organization by definition of ISO 17020 standard.
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?
Those regarded as the first party are the manufacturer, seller, or vendor. The end user, buyer, or engineering company is referred to as the second party.
The third party will provide their inspection services independent of either party.
This means that the first and second parties will also perform inspections, but the third party is called in to eliminate a conflict of interest.
It should be noted that any person employed by a seller, vendor, or engineering company cannot officially be considered an inspector. They are only quality control personnel.
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?
Based on the quality criteria presented in the ISO 17020, you will find three types of inspection organizations. The first is third party inspection and it's exclusively accountable for providing inspection services. Unlike the other types, TPI organizations are not able to be involved in procurement, fabrication, supply, design, and installation.
This quality standard makes it necessary for all parties to possess access to the third party inspection agencies and their services. This demand is what makes the existence of the third party inspection agencies so important on the buying and selling contracts and orders.
This means that a third party inspection organization offers their services to custom authorities, sellers, buyers, engineering firms, and any other businesses that are involved in the exchange of goods or services that must adhere to quality or safety codes and regulations.
Issues of independence, impartiality, integrity, and confidentiality have a major part in the performance of a third party inspection agency.
It is necessary for the TPI organization to carry out their procedures in a style that is unbiased.
On account of these conditions, when a contract is ordered by a seller or buyer, their commodity shall be inspected on an independent basis.
If a dispute arises among the buyer and seller, then neither party should expect the TPI organization to make a judgment based on their individual interests.
In some cases, buyers and sellers have made the argument that their position as the client should force the contracted inspector to act under their authority and interest.
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 engineering companies have a department that is called quality control department. This department provides quality control services to the purchase order that issued by procurement section. This type of organization is the second type of inspection organization by definition of ISO 17020 standard.
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?
Those regarded as the first party are the manufacturer, seller, or vendor. The end user, buyer, or engineering company is referred to as the second party.
The third party will provide their inspection services independent of either party.
This means that the first and second parties will also perform inspections, but the third party is called in to eliminate a conflict of interest.
It should be noted that any person employed by a seller, vendor, or engineering company cannot officially be considered an inspector. They are only quality control personnel.
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.
About the Author:
Bob Rasooli is the writer and webmaster of Inspection 4 Industry. He has more than 15 years experience in TPI Inspections, shop inspections and goods inspections, read more about this subject in his website.
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