Consultancy tenders to emphasise quality over price: Lawrence Wong

SINGAPORE — To build a strong core of Singapore-based firms delivering quality projects, the Government will look into placing greater emphasis on quality, instead of only price, for consultancy services tenders, said National Development Minister Lawrence Wong yesterday.

Poor performers will be put on the back-burner, with limited opportunities to take part in tenders. However, the changes will not be implemented “so quickly”, as government agencies with procurement practices need more time, said Mr Wong, who was speaking at the inaugural joint conference by the Board of Architects Singapore and the Association of Consulting Engineers Singapore.

The Minister said: “We want to have more balanced quality and fee competition, and provide greater rewards for firms that deliver high-quality work.”

Current ideas include evaluating bids for consultancy services based on adequacy and quality, and placing weightage on the Consultants’ Performance Appraisal System score introduced by the Building and Construction Authority. The Government could also do more to share with the industry the pipeline of projects over the next few years, so that companies can prepare ahead for bidding, he said.

In his address, Mr Wong urged the industry to take steps to restructure and strengthen, working together in a more integrated manner. Urging architects and engineers to coordinate their work, he warned against working in silos.

“What we used to know as our traditional roles and responsibilities have evolved. We cannot just design and build a building; we also have to think about how the building can be built in a more productive way, how it can be better maintained, or how it can help reduce our carbon footprint,” said Mr Wong.

To spur collaboration within the industry, the Government would encourage more contractor involvement in the early stages of a project. Some public agencies pre-qualify contractors, and bring them in ahead of issuing the tender. This gives engineers and contractors a chance to offer feedback ahead of the actual construction work, he noted.

More collaborative contracting models will also be promoted, he added. In the United States, for instance, the various stakeholders — the owner, architect, engineer and contractors — conceptualise the project from the start, and reduce errors and wastage.

Mr Wong also assured the industry that despite challenging times, the Government would work together with them to overcome these challenges. Demand for such capabilities is still present, with many countries in the region rapidly building new infrastructure, he noted.

Engineering and construction firm Greatearth chief executive Chang Chew Kient felt that a collaborative approach would encourage service providers to move away from offering low prices to providing better value.

“This would translate to superior quality standards, faster completion and adoption of new technology and innovative methodologies,” said Mr Chang.

Agreeing, Mr Edward Wee, managing director of Wee Chwee Huat Scaffolding and Construction, said that considering quality in awarding tenders would ensure fair competition, with less undercutting in the industry.