Adjusting Method to Score Quality Attributes in Government Infrastructure Tenders So As Not to Disadvantage Local Construction Companies

Mr Don Wee asked the Minister for National Development whether the BCA, in determining the quality attributes scoring for public sector project tenders, such as the proposed coastal development tender, can consider revising the requirement for foreign projects in its scoring method since local construction companies which have fewer foreign projects will be placed at default disadvantage when competing against foreign companies in bids for tender.

Government procurement is governed by the principles of: (a) transparency; (b) open and fair competition; and (c) value for money. Contracts are awarded to tenderers who are best able to meet the tender requirements and who offer the best value. This is regardless of whether the firm is local or foreign.

For construction tenders with project value of $3 million and above, Government agencies are required to use the Price Quality Method (PQM) to evaluate their tenders. Under the PQM, there is no scoring criterion that requires firms to have completed foreign projects. Firms are scored on their track record of having completed relevant projects – whether local and/or overseas.

While the PQM sets out the standard parameters for the evaluation of public sector construction tenders, Government agencies have the discretion to set additional tender requirements or evaluation criteria to cater to the specific nature of their projects. If the Member has queries or concerns pertaining to a particular project, he may wish to provide the Building and Construction Authority (BCA) with details of the tender so that BCA can follow up.