Selection Criteria for Main Contractors of HDB BTO Projects

Mr Mohd Fahmi Aliman asked the Minister for National Development (a) what are the selection criteria for main contractors of HDB BTO projects; (b) how does HDB ensure that the selected contractors are able to (i) deliver quality workmanship and (ii) complete the BTO projects within the stipulated timeframe; and (c) where a contractor’s services are terminated mid-project, how does HDB mitigate the delays and rectification works of the BTO projects affected.

All BTO project tenderers must be registered with the Building and Construction Authority under the required financial grade, meet the minimum credit rating and have prior experience with high-rise building projects.

To ensure that contractors do not overstretch their resources, the Housing and Development Board (HDB) manages the allocation of tender opportunities to building contractors, based on their past performance scores and non-compliance records. Contractors with better performance will be allowed to undertake more projects, subject to a yearly value cap. Conversely, contractors with less satisfactory performance will be restricted from tendering for more projects.

Contractors who do not perform well in their current projects, such as repeated slow progress of work or safety infringements, will be temporarily suspended from tendering for new HDB BTO projects until they improve. This is to enable contractors to focus their resources on improving their performance in current HDB projects.

During tender evaluation, HDB employs a Price Quality Method (PQM) to score tender bids according to price and quality attributes. This approach takes into account a contractor’s current and past project performance, safety records, financial health assessments, CONQUAS assessment and safety scores.

To ensure that selected contractors deliver quality workmanship, HDB adopts a comprehensive quality management system. This includes:

(a) requiring contractors to source all building materials and equipment from an approved list of suppliers, to ensure construction materials are of good quality;

(b) conducting consistent in-process checks and audits; and

(c) inspecting finishes and fittings for proper installation and compliance with HDB’s required standards.

HDB monitors the construction progress of all BTO projects closely. To ensure timely completion of BTO projects without compromising on project quality and safety standards, HDB works with contractors and consultants to meet critical construction milestones, including obtaining timely clearance and approvals from authorities and agencies.

In the unfortunate event where a contractor’s services are terminated mid-project, HDB leans forward to connect the replacement contractor with existing sub-contractors involved, to facilitate a smooth transition and timely progress on remaining construction work. HDB also works closely with the replacement contractor to ensure critical milestones are met to deliver the flats on time and flat buyers can move into their new homes in a timely manner.