Frequently asked questions
- Why is the ISC making this change to the IS Rating fee model?
- What is changing?
- When does the new IS Rating fee model come into effect?
- How does this affect those Rating Agreements in negotiation?
- Does the change affect IS v1.2 and ISv2.1 ratings?
- Who did we engage on the changes?
- Does this affect current Rating Agreements?
- Who will be impacted by these changes?
- How does the fee increase impact the ROI study results the ISC is often quoting?
- When transitioning from Design to As Built under an existing agreement, how will my fees change?
The ISC want to deliver on our purpose and be a sustainable long-term partner. To do this we need all our relationships to be financially healthy and more accurately reflect the costs of IS certification. Design and As-Built Ratings comprise the highest volume of our Ratings portfolio of work so the main changes relate to this tool.
The changes to our fee model have been deeply considered and take into account market requirements, business challenges and member feedback.
These changes underpin good governance, well-supported rating partnerships, future process efficiencies and reporting capabilities as well as the continued investment in our standards to drive best practice.
There is a price increase plus support fees will now be charged annually on actual project duration, rather than as a lump sum payment based on an assumed project duration.
The changes are applicable only to new IS Design and As Built Ratings (ISv1.2 and IS v2.1) executed after 30 June 2023
The new D&AB fee model comes into effect for all IS Design and As Built Ratings (ISv1.2 and IS v2.1) rating agreements that are executed after 30 June 2023.
There is also a price increase for IS Operations from 1 July 2023. Support fees for Ops are already charged annually.
We will be working directly with those parties who have draft Agreements in negotiation to determine an appropriate outcome. For the ISC, the preferred approach is to adopt the new fee model from 1 July 2023 as this enables our long-term financial sustainability.
Yes – The new fee model comes into effect for all IS Design and As Built Rating Agreements (ISv1.2 and IS v2.1) that are executed after 30 June 2023.
We have engaged with decision makers within proponents that contractually require IS Ratings for sustainability performance assurance. Leading up to 1 July 2023, we are connecting with our wider member base to inform them of the changes.
These changes are not retrospective on executed Rating Agreements. For those agreements which are nearing renewal or extension, we will engage directly in line with the terms of the contract.
Any new ratings partnerships which contract after 1 July 2023.
These fees increases do not have a material impact on the total ROI. Rating fees remain around 0.15% of the capital value of the average projects/assets we support.
The ROI for ISv2.1 will be undertaken when there is a statistically valid sample size of certified projects and data to complete the cost-benefit analysis.
These changes are not retrospective on executed Rating Agreements. For those agreements which are nearing renewal or extension, we will engage directly in line with the terms of the contract.