New figures compiled by the Safety Schemes in Procurement Forum (SSIP) highlight over £50 million of savings to clients, other buyers and suppliers in 2016.
The figures show the total savings, linked to cross-recognition between health and safety supply chain assessments, reported to SSIP by individual assessment schemes. Cross recognition reduces the need for clients to re-check suppliers' details or to specify a particular assessment scheme, and for contractors to fill in numerous health and safety questionnaires.
The total savings, based on a standard SSIP calculation, also suggest that SSIP, which was set up in 2009, has delivered hundreds of millions of pounds of savings to buyers and suppliers who carry out construction, maintenance and other contractor activity.
According to Eleanor Eaton of CQMS, and Chair of SSIP:
"We have known for some time that SSIP saves the supply chain tens of millions of pounds annually. Our metrics have enabled us to home in on the extent of these savings, and we expect them to increase annually.”
According to Paul Reeve, Deputy Chairman of SSIP, and the ECA's Director of Business:
"These figures show SSIP is making a real contribution to reducing excessive health and safety pre-qualification. It's a huge burden on the supply chain, and we look forward to further action by SSIP scheme members to reduce unnecessary costs to buyers and suppliers.”
The £50 million in savings reported in 2016 went straight to company bottom lines - in construction, it would typically take £2 billion in contractor turnover to achieve the equivalent amount as profit.
Eleanor Eaton adds: "Crucially, less time wasted on unnecessary health and safety assessments also means more time for buyers and suppliers to address project-related risks, which should help to improve health and safety outcomes.”