ISO Certification Cost Breakdown: Consultancy vs Audit vs Certification Fees
Achieving ISO-certification allows companies to prove their effectiveness in matters of quality, security environmental stewardship, information managing, and other management system issues. However, one of the most frequently asked questions among companies is “What is the cost of ISO certification?” The cost of ISO accreditation depends on many factors, including the type of ISO standard to be used, the size of the business, the number of employees, the location, the number of products/services, the complexity of processes, and the name of the certification body to be applied. It is essential to state that ISO does not issue certificates or conduct audits. The procedures of certification are performed by independent certification agencies.
One can name three costs that constitute the overall cost of ISO accreditation: consultancy, audit, and certification costs. Understanding what lies behind these costs will help companies prepare the budget properly.
What is included in the cost of ISO certification?
There is no universal fixed price of ISO certification. A small office with several employees pays less than a big corporation operating in many locations.
Usually, the main expenses consist of:
– ISO consulting or implementation
– Gap analysis
– Documentation and system development
– Internal audit
– Certification audit
– Certification and registration fees
– Surveillance audits
– Employee training
– Travel and further audit costs where applicable
The actual cost could be evaluated according to the requirements of the organization instead of picking the certification provider based only on the lowest quote.
1. Cost of ISO consulting and implementation
ISO consulting refers to professional assistance in creating and implementing a management system based on ISO standards.The ISO consultant promotes the understanding of the requirements, helps in conducting the gap analysis, developing the processes and the documentation needed, defining the risks and the opportunities, training the staff members, performing internal audits and preparing the organization for the certification audit. As an illustration, a company that wants to get the ISO 9001 certificate will have to implement several processes related to objectives for the quality, customer’s requirements, document control, corrective actions, internal audit and continuous improvement.Although the engagement of an expert advisor is not necessary, ISO asserts that companies can successfully implement the ISO 9001 standard without any assistance. Nevertheless, an increasing number of organizations are choosing the help of consultants in order to simplify the process of implementation.
The cost of consulting services varies depending on:
Type of organization
Number of employees
Number of locations
Presence of an operational management system
Specific standard required
Complexity of the project
Length of the project
Level of consultant involvement
A company that has been operating for some time will need less support in comparison with organizations with no management system in place.
ISO Audit cost
An important part of any certification budget is the cost of an ISO audit.Certification is carried out by an independent body to prove that an organization’s management system complies with ISO standards. ISO provided the following definition of certification: “An independent written assurance that a product, service, or system meets specified requirements.”
There are usually two stages of an audit:
1) stage 1 audit – to see whether the management system is ready for the certification;
2) stage 2 audit – to see if the organization has implemented the management system.
The costs for audit services depend
Before selecting a certification cost, companies must examine the checklist provided. Certain quotations will only include the charges incurred from an initial certification audit while others may cover registration, certificate issuance, expenses incurred for travel, and such other charges.
Moreover, it is compulsory to check the competence and accreditation of the certification body. According to the recommendations provided by ISO, organizations may evaluate the certification agencies along with identity verification of the concerned agency by looking at the applicable requirements for conformity assessment.
In short, there are several factors which determine the cost of ISO certification.
The size of the organization is one of the main factors affecting the cost of ISO certification. A larger organization requires, in general, more time for auditing and more resources for implementation purposes than a smaller company.
The number of employees is another important factor determining the cost of ISO certification.
The number of locations is also an important factor in determining the cost of ISO certification. An organization that has several branches, offices, factories, and locations needs more time for the implementation of ISO certification.
ISO standard has its importance too. Different ISO standards have different requirements and for this reason the cost.
Always keep in mind that acquiring an ISO certification does not suffice. A good management system should mean improvements in some business processes and bring value through time. ISO believes that management-system standards are beneficial even when an organization doesn’t decide to receive certification.
Final Thoughts
The total cost of obtaining a certificate is the sum of different expenditures and not one fixed expense. Consultancy helps with implementation, audits perform conformity checks, and certification fees include the certification process.
Before getting a quote for obtaining an ISO certificate, understand your company size, quantity of employees, locations, type of activities, desired ISO standard, and certification scope. This enables different certification providers and consultants give a more precise quote.
Now, whether you are looking to get the ISO 9001, ISO 14001, ISO 45001 or ISO 27001 certification, the best way is to review and compare the cost of consultancy, audit, and certification separately.
FAQs
1. What is the average ISO certification cost?
There is no universal ISO certification price. The total cost depends on the ISO standard, company size, number of employees, locations, certification scope, existing management system, consultancy requirements, and certification body. A customized quotation is therefore more reliable than a general fixed price.
2. Is ISO consultancy mandatory for certification?
No. ISO does not require organizations to hire an external consultant for standards such as ISO 9001. However, many businesses use consultants for gap analysis, implementation, documentation, training, and internal audit preparation.
