This paper describes a collaborative project conducted by the three principal universities in Dublin to implement and evaluate a competence assessment tool for use by nursing students and their assessors while on clinical placements. In the greater Dublin area, students from three universities are required to share clinical placement sites in specialist practice areas. Accordingly, a liaison group was established among the three universities, in order to develop a common competence-based assessment tool and related protocols for its use. The newly developed competence assessment tool was implemented in 2004, and in 2006, an evaluation of its use was conducted by means of a survey among a non-probability sample of students and their preceptors. Results from the survey data indicate generally positive attitudes to the structure of the tool and positive experiences of its operation in practice. However, respondents indicated dissatisfaction with the amount of time spent completing the assessment tool and the amount of preparation needed to carry out the assessment process. Recommendations for practice include the need to consider placement length in the design process and the need to focus on user preparation. This study also points to the benefits of inter-institutional collaboration in competence assessment and the possible implications for future work in this area.