%20(1).png)
When “Cheap” Inspections Cost Millions: The EPC Risk No One Talks About
- Helen Williams
- 4 days ago
- 5 min read
Updated: 3 days ago
EPC projects live or die on quality, safety, and schedule. In a multivendor, multi-standard environment, inspections aren’t a box-tick—they’re your frontline defence against failure, delay, and reputational damage. Yet across the industry, a dangerous pattern is emerging: unqualified inspectors are being sent to site, and clients are billed for a day of inspection that is not actually delivered. Worse, this is often obscured in reporting—leaving EPCs and developers exposed to risks they don’t even know they’ve taken.
This is the classic false economy: pay peanuts, get monkeys. The short-term saving of a cut-price inspection can create long-term costs—in remedial work, project slippage, nonconformances, warranty disputes, and client trust.
The Illusion of Savings: Where Corners Get Cut
Why does this happen? On paper, a low rate looks attractive. In practice, providers reduce costs by:
Assigning inexperienced or nonqualified personnel to specialist scopes.
Shortening attendance—arriving late, leaving early, or not staying to witness critical hold points.
Relying on manufacturer-provided data rather than independently witnessing tests and verifications.
Producing generic, copypaste reports with minimal evidence, photos, or traceability.
For EPCs and developers, the consequence is limited visibility. You think you’re covered because a report was submitted; in reality, essential tests may never have been witnessed, and latent defects can surface downstream when they are far more expensive to fix.
What’s Really Happening on the Ground (and Why It Matters)
We’re increasingly hearing stories of:
Inspectors not remaining for the duration of pressure tests, FATs, or performance tests.
No evidence trail—no calibrated instrument IDs, no timestamped photos of test sequences, no attendance logs tied to hold points.
Personnel without the required discipline experience or certifications (e.g., a generalist tasked with a specialist metallurgy, lifting equipment, or electrical protection inspection).
Acceptance based primarily on manufacturer declarations rather than independent verification.
This isn’t just poor practice; it undermines the entire purpose of thirdparty inspection: trust, verified. If the witness isn’t there, you don’t have independent assurance—you have paperwork.
The Risk Landscape for EPCs and Developers
Cutprice, underdelivered inspections increase risk at every level:
Technical risk: Missed defects, miscalibrated equipment, nonconforming materials, incorrect documentation, or unverified test outcomes.
Schedule risk: Rework, site rejects, and late-stage NCRs that push commissioning and COD dates.
Safety risk: Unwitnessed protective devices and pressure boundaries can have life safety implications.
Compliance risk: Gaps against project specs, international codes, or client- specific standards.
Commercial risk: Warranty disputes and claims become harder if inspection evidence is weak.
Reputational risk: Stakeholders lose confidence when “assured” equipment fails in service.
What Robust Supply Chain Assurance Looks Like
Effective assurance isn’t just “turning up and ticking.” It is a system—a disciplined, endtoend approach that integrates:
Vendor Assessments & PreQualification
Verifying capability, certifications, production capacity, and QHSE maturity.
Confirming test facilities, calibration systems, and past performance in similar scopes.
Inspector Qualification & Matching
Assigning inspectors with the right discipline, credentials, and sector experience.
Verifying competence (e.g., IWE/IWT for welding; API/ASME for pressure equipment; electrical protection testing expertise).
Clear Inspection & Test Plans (ITPs) with Hold Points
Defining exactly what must be witnessed, when, and by whom.
Including acceptance criteria, instruments, and evidence artifacts.
Full-Duration Attendance & Evidence Based Reporting
Timestamped photos, video snippets (where permitted), instrument IDs, serial numbers, and data logs.
Attendance captured against scheduled hold points, not just a day-rate entry.
Expediting & Progress Verification
Independent checks on schedule adherence, material status, and workfront readiness to avoid “inspection tourism” (turning up with nothing to witness).
6. Digital Traceability & Transparency
Platforms that log who attended, for how long, what was witnessed, outcomes, NCRs, and closeout actions.
Clear client visibility so you know the inspection actually happened.
7. ESG Ethics Built In
Safe, responsible, and transparent operations aligned to modern sustainability and governance expectations.
How to Spot Under-Delivered Inspections (A Quick Checklist)
Ask your provider for:
Inspector CVs and certifications specific to your scope.
Attendance logs are aligned to ITP hold points and test timings.
Calibrated instrument IDs and calibration certificates.
Evidence packs (photos/videos with timestamps, test results, data sheets, serials).
Nonconformance and closeout records with root cause and corrective actions.
Conflicts of interest declarations and independence statements.
If any of this is “not available”, you may be paying for assurance you are not receiving.
The SQS Difference (Designed to Eliminate the Hidden Risks)
Without the hard sell, here’s what an assurance partner should offer—and what SQS delivers:
Qualified, Matched Inspectors: A global network (2,000+ inspectors across 48 countries) matched by discipline and sector expertise—so a lifting inspection isn’t done by a coatings generalist.
Full Duration Witnessing: Inspectors remain on site for the entirety of the required test windows. No “flyby” signoffs.
Independent Verification: We verify data by witnessing, not just accepting manufacturer declarations.
Evidence-Rich Reporting: Timestamped photos, instrument IDs, serials, and traceable records—so you can defend decisions months or years later.
Digital Transparency: Our bespoke SMARTER management system provides end-to-end visibility, and our AI-enabled remote inspection tools add flexibility and coverage where physical access is constrained.
Expediting + Inspection: We align inspection with readiness to reduce wasted visits and ensure critical path outcomes.
Certified Management Systems: ISO 9001 and ISO 14001 underpin consistent quality and environmental responsibility.
ESG-Driven Approach: As a B Corp, we hardwire ethics, sustainability, and long-term value into how we operate.
Result: Clarity, confidence, and compliance—every step of the way.
Integrating Assurance with Project Reality
For EPCs and developers, assurance must be practical:
Build inspector attendance into your project schedules—tie it to hold points and readiness gates.
Require pre-inspection meetings to confirm test packs, instrument calibrations, and safety documentation.
Standardise evidence requirements across vendors (photos, serials, instrument IDs, and signoffs).
Use exception reporting (NCR/CAR logs) as a proactive risk signal—not just a retrospective record.
Leverage remote inspection for low risk verifications or interim checks, but keep critical tests physically witnessed.
Audit your inspection provider—spot check CVs, attendance logs, and raw evidence. Trust is good; verification is better.
The Bottom Line: You Get What You Pay For
If your inspection provider can’t prove who attended, for how long, and exactly what was witnessed, then you haven’t bought assurance—you’ve bought paperwork.
The cheapest option often becomes the most expensive when failures surface late, warranties are challenged, and schedules slip.
In complex EPC environments, the smart investment is in qualified people, disciplined processes, and transparent proof. That’s how you protect safety, schedule, and reputation.
If you want to eliminate the risk of unqualified inspectors and underdelivered inspection days, let’s talk. We’ll benchmark your current approach, identify gaps, and implement evidence-based assurance with full transparency—on-site and remotely—so you know you’re getting exactly what you pay for.
Contact us today:
Tel: +44(0)161 419 9998
Email: admin@sqs.co.uk
