Quality is the new main ingredient of public building tenders

In the construction industry, many companies have bided for private condominium projects at rates that are incredibly low in order to make sure that their services will be engaged. While you may be tempted to think that this is a good thing, managing to construct a structure for less money, we should all be worried about the quality provided in these cases.


It is almost impossible to offer high-quality when you are bound to deliver a project within a very small budget. Besides the workforce, the price is usually dictated by the quality of materials a developer uses, which can’t be too great if you’re looking to have small prices and win a bid this way.

The government notices this plunge into the dark abyss of compromise of many companies in Singapore and wishes to put an end to this unwanted trend through a new public tender that will focus on quality rather than on price or anything else. This announcement was made on the 13th of June, by Lawrence Wong, the National Development Minister.


Mr. Wong also participated at the Building and Construction Authority (BCA) awards, which take place every year, at Resorts World Sentosa, where he talked about the unhealthy price situation in the industry. He stated that if the price competition does not take place in the right range of values, stirring an unhealthy trend, there will be a lot of negative consequences throughout the entire construction industry. Thus, this is a matter that should not be overlooked at all. The reality is that all contractors and consultants that promote very low prices will have to do something to cut down their costs, also cutting corners, which is the worst part of this story.


To avoid a future in which Singapore is studded by poor quality constructions, something needs to be done about it. The new public tender has the mission to correct these negative aspects and promote a healthier construction industry. If currently the quality provided by a constructor or consultant weighs approximately 30% in the tender evaluation, this limit is going to be raised very soon. Although when this will practically happen no one knows, as Mr. Wong did not mention a particular timeline for this.


He also added that rules will be stricter and the agencies will penalize any company that will not respect the set quality standards, as another measure to prevent companies from compromising quality for the sake of winning a project by providing very small prices.


For the companies that plan to adopt new technologies to increase their quality standards there is good news, as they will receive more weight from agencies.


What kinds of technologies are considered as being a good choice? Virtual design and construction and design for manufacturing and assembly are two solutions that allow companies to get things done with a smaller number of workers and without compromising quality. Also, homebuyers will soon be able to see the quality scores recorded by contractors and developers in the sales documents of a new launch property, so they can make an informed choice. This will certainly weight a lot within a company, which will have to focus more on quality if it wishes to sell a property in a short period and at a great price.



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