This article provides information about 3rd party shop inspection, which is done by third party inspection agencies.

This article is a supplementary article for the shop inspection article. We recommend that you first read the shop inspection article, and then come here for supplementary information:

Engineering companies and End-user companies have two options when they order for manufacturing of equipment. They can send their own inspector or hire a third party inspection agency.

When they send their own inspector, this is called second party inspection. The first party would be manufacturer, and the buyer or purchaser is the second party. In this case, there is no third party inspection.

But if the purchaser has opened a Letter of Credit with its bank and mandated for inspection, then the third party inspection must be utilized.

Assigning a second party inspector instead of a third party inspector has many disadvantages, as the second party inspector never can be independent and impartial, especially when the second party is an engineering company in which the quality control department works under the management of the procurement department.

The procurement department makes all effort to deliver the commodities from the vendor’s shop to the site, and many times the quality is ignored just so the equipment will arrive at the site on time.

The best practice is to hire a third party inspector, and the second party only to expedite the job.

Shop Inspection and Test Plan

Shop inspection and test plan refer to the equipment that is under construction in the vendor shop. It is also called vendor inspection and test plan. For more information, review the Inspection and Test Plan article.