CONSTRUCTION OF ROADS, DRAINS, SEWERS, SERVICES TUNNELS AND SOIL IMPROVEMENT WORKS AT BANYAN

DRIVE PHASE 2 AND CONSTRUCTION OF OUTFALL STRUCTURE AT BANYAN VIEW, JURONG ISLAND PQM/ 1

PRICE-QUALITY METHOD

Evaluation Using the Price-Quality Method (PQM)

1. The tender shall be evaluated using the Price-Quality Method (PQM). Tender Price and
Quality Criteria are assigned weightings and translated into quantitative scores which are then totaled
up to give a Combined Score during tender evaluation.

2. The Combined Score of 100% shall be made up of Tender Price and the Quality Criteria in
the following weighting.

 Tender Price - 80%

 Quality Criteria - 20%

3. Tenderer to note that they are required to submit the necessary substantial information for the
following items, together with their tender submissions upon closing of tender for evaluation of the
Quality Criteria by the Corporation. Tenderers are required to submit two (2) hard copies.

The information is to be compiled and submitted under each respective Appendices Heading
as shown in the table in item 5.

4. Evaluation of ‘Financial Health of The Company’ shall be as follows:

i) The financial health of tenderers is one of the Critical Criteria. The Corporation will
examine the financial statements of the tenderers to check whether the tenderers have (a)
any negative net tangible asset, and (b) any adverse opinion from auditors on the ability of the
tenderers to continue as going concerns. Any tenderer who demonstrates either (a) and/or
(b) shall be deemed to have unacceptable financial health and failed to meet this Critical
Criterion, and hence his tender shall be precluded from further evaluation.

ii) In addition, the financial health of tenderers is included as one of the Quality
attributes under the Price-Quality Method of tender evaluation. In this regard, the financial
health evaluation will be based on (a) borrowing capacity and (b) liquidity and leverage
position of the tenderers. A standard score of 50% will be given to tenderers who pass the
financial analysis and a zero score will be given to tenderer who fail the financial analysis.

iii) It shall be mandatory for tenderers to submit the following documents together with
their tender proposals on or before at the time of tender closing:

(a) Full set of the latest audited financial statements (Appendix 2a);
(b) Interim unaudited financial statements and company declaration letter
(required only if the audited statements are more than 6 months) (Appendix
2b);
(c) Confirmation from bank(s) showing the tenderer's credit facilities (if any) and
the amount utilized to-date (if any) (Appendix 2c); and
(d) List of current contracts showing the contract value for each contract and the
value of the outstanding work to be completed (Appendix 2d).

iv) The Corporation may require tenderers to submit additional information such as
debtors ageing schedule, guarantee and/or backing from the tenderers' parent or related
companies on a case-to-case basis.
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PRICE-QUALITY METHOD – CONT’D

v) If any tenderer fails to submit the mandatory documents as required under sub-para
(iii) above, the Corporation shall not be bound to require the tenderer to submit the missing
document and shall also reserve the sole discretion to preclude his tender from further
evaluation or to assign zero Quality score or to take whatever actions as the Corporation
deems fit. However, the Corporation may but shall also not be obliged to take into
consideration any reasons that may be provided by the tenderer for his failure to submit the
required documents, provided that the reasons given are considered valid and acceptable to
the Tender Evaluation Committee (TEC).

The Quality Criteria

5. The Quality Criteria of the tenderer shall be evaluated through the point-based system,
according to the following schedule (100 points):

Quality (Non-Price) Quality Source of

No Benchmark Method
Attributes Points Information
1 TRACK RECORD 35

1a Relevant track records or 20 points – 5 or more 20 BCA C41 Report,

specific competencies within
past five (5) years (from
either public or private
projects) for
Completed Civil
Engineering projects under
Main Contract of value
S$5,000,000 and above
only
relevant projects within past Tenderer to submit
3 years. i.) Letter(s) Of
Award; and
16 points – 4 relevant ii) Completion
projects within past 3 years. Certificate(s)
that met the criteria.
12 points – 3 relevant
projects within past 3 years. (To be submitted
as Appendix 1a)
8 points – 2 relevant
projects within past 3 years.

4 points – 1 relevant
projects within past 3 years.

0 point – No relevant
projects within past 3 years.
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DRIVE PHASE 2 AND CONSTRUCTION OF OUTFALL STRUCTURE AT BANYAN VIEW, JURONG ISLAND
PRICE-QUALITY METHOD – CONT’D
No Quality (Non-Price) Attributes
1b Number of projects in Item 1(a)
above which were completed
ahead of schedule or on time
AND have obtained
performance evaluation of
“Good” or above as shown in
Building and Construction
Authority’s (BCA) records (C41
Report) or its equivalent or
testimonials from owners or
consultants of the projects
1c Past experience with
Corporation, based on
performance of past 5 years
completed projects with the
Corporation
2 FINANCIAL HEALTH
2a Financial Health of Company
PQM/ 3
Quality Source of
Benchmark Method
Points Information
.2 point for each relevant 10 BCA C41 Report,
project with “Good” or Tenderer to submit
equivalent rating. i.) Extension Letter;
and
0 point for each relevant ii.) Testimonial(s)
project with “Satisfactory” from The Owner(s) or
or equivalent rating Consultant(s) of the
projects in Item 1a (if
any).
(To be submitted as
Appendix 1b)
5 points – 5 or more 5 BCA C41 Report,
Corporation projects. Tenderer to submit
i.) Letter Of Award(s);
and
4 points – 4 Corporation
projects. ii.) Completion
Certificate(s);
3 points – 3 Corporation from the Corporation
projects. of their past projects
(if any).
2 points – 2 Corporation
projects. (To be submitted as
Appendix 1c)
1 point – 1 Corporation
project.
0 point – No Corporation
project.
20
Tenderer to submit information according to requirements as
stated in Item 4 – Evaluation of Financial Health.
(To be submitted as Appendix 2a, 2b, 2c and 2d)
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PRICE-QUALITY METHOD – CONT’D

Quality Source of
No Quality (Non-Price) Attributes Benchmark Method
Points Information
3 SAFETY PERFORMANCE 20

3a Safety Performance Demerit Full point if no demerit 10 BCA C41 Report,

Points based on current MOM
Demerit Points System
point imposed by MOM. Tenderer to submit
details of the demerit
point(s), if any.
Deduct 1 point for every
MOM demerit point.
(To be submitted as
Appendix 3a)
Nil point if MOM has
issued warning letter.

3b Annual safety awards by MOM,
etc over the last five (5) years.
2 points for each Gold 5 Tenderer to submit
award. Certificate(s) of
Safety Award or any
other document, if
1.5 point for each Silver any
award.

(To be submitted as
1 point for each Bronze Appendix 3b)
award.

0.5 point for other

awards,

To a maximum of 5 points
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Quality Source of
No Quality (Non-Price) Attributes Benchmark Method
Points Information
3c Tenderer’s safety proposal for 5 points for Excellent” 5 Tenderer to submit
this project. rating. i.) Company Safety
Plan;
Evaluation to include: 4 points for “Good” rating. ii.) Project Risk
a.) Company Standard Assessment; and
Safety Plan / 3 points for “Satisfactory” iii.) Site Emergency
Procedure; rating. Plan / Emergency
• Company safety Response Plan
policy / duties and
responsibilities of 2 points for
“Unsatisfactory” rating. (To be submitted as
key personnel Appendix 3c)
• Safe work practice /
permit to work / rule 0 point for nil submission.
and regulations
• Safety promotion /
training
• Safety inspection
• Accident / near miss
reporting,
investigation,
improvement,
monitoring and
analysis
• Procedure and
guidelines for risk
assessment /
occupational health
and safety / COSHH
• Maintenance regime
• ISO Accreditation

b.) Project Specific Risk

Assessments; and
• Relevance / project
specific risk
identification
• Appropriateness of
the mitigating
measures

c.) Site Safety

Organization Chart /
Emergency Response
Plan
• Clear with key safety
personnel identified
• The emergency
response plan is
appropriate
CONSTRUCTION OF ROADS, DRAINS, SEWERS, SERVICES TUNNELS AND SOIL IMPROVEMENT WORKS AT BANYAN
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PRICE-QUALITY METHOD – CONT’D

Quality Source of
No Quality (Non-Price) Attributes Benchmark Method
Points Information
4 PROJECT SPECIFIC 20
PROPOSAL

4a Technical proposal, based on 10 points for “Excellent” 10 Tenderer to submit

Tenderer’s proposal on method rating. i.) Method statement /
of construction for this project methods of working
a.) Method Statement / 7.5 points for “Good”
Method of Workings rating. (To be submitted as
• Traffic diversion plan Appendix 4a)
• Construction of 5 points for “Satisfactory”
services tunnels and rating.
the associated
instrumentation plan
0 point for nil submission.
• Construction of
outfall structure, the
termporary retaining
structure and the
associated
instrumentation plan
• Soil improvement /
vibrofloatation works
• Protection to existing
services and
adjacent structures
during soil
improvement /
vibroflotation / deep
excavation works,
including temporary
supports to exposed
services and the
associated
instrumentation plan
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Quality Source of
No Quality (Non-Price) Attributes Benchmark Method
Points Information
4b Technical proposal, based on 5 points for “Excellent” 5 Tenderer to submit
Tenderer’s proposal on rating. i.) Program; and
program of work / sequence /
method of construction for this ii.) Write Up on the
project 3.5 points for “Good” Sequencing of the
rating. Workings.
b.) Program / Sequence of
Working
• Completion of work 2 points for “Satisfactory” (To be submitted as
within the specified rating. Appendix 4b)
period and sectional
completion period 0 point for nil submission.
• Logic and
sequencing of
activities
• Critical path /
phasing / sectional
completion / key
activities identified
.
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Quality Source of
No Quality (Non-Price) Attributes Benchmark Method
Points Information
4c Technical resources, based on 5 points for “Excellent” 5 Tenderer to submit 8
the tenderer’s proposed rating. i.) Project
management and technical Organization Chart;
staff to be deployed for this
project 3.5 points for “Good” ii.) CVs / track
rating. records; and
a.) Project Organization
iii.) List of Manpower /
Chart;
2 points for “Satisfactory” Machinery / Plant.
• Clear with key rating.
project personnel
identified (To be submitted as
0 point for nil submission. Appendix 4c)
• The proposed site
organization
structure and size is
appropriate to the
project

b.) CVs of key project

personnel and the
quality/experience in
relation to the Works
• PM
• QS
• Site Engineer
• WSH / ECO officer
• QP / PE

c.) List of Manpower/

Machinery / Equipment
to be mobilized
• Relevance / Project
Specific
• Detail
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PRICE-QUALITY METHOD – CONT’D

Quality Source of
No Quality (Non-Price) Attributes Benchmark Method
Points Information
5 OTHERS 5

5a Adjudication / Litigation Cases Full points if no 5 Legal search,

(Based on the number of
determined cases against the
firm within the last five (5)
years)
adjudication / litigation Tenderer to submit
cases and cases pending i.) Declaration Form;
decision. and
ii.) Details of
Deduct 20% off the full Adjudication /
points for every Litigation (if any)
adjudication / litigation
case
(To be submitted as
Appendix 5)

The Quality Score

6. Provided that the particular attribute under project performance does not have any minimum
qualifying requirement stipulated, the average quality score of the other conforming tenderers for that
attribute shall be adopted for the new or foreign contractor or existing contractors without past project
performance records. Tenderers that do not meet any minimum requirements stipulated will not be
considered for further evaluation.

For other non project performance attributes such as relevant/specific track records or
competencies and project specific proposals that enhance the Tenderer’s suitability for the job,
tenderers will attain the score for the particular attribute based on the merit of their own submissions.

7. The Weighted Quality Score, Q (wt) will be computed using the following formula:

Q (wt) = Tenderer’s Total Quality Points x Quality

Highest Total Quality Points Weighting

The TEC will compute the Quality Points of each attribute to derive the Total Quality Points for
every bidder. The firm with the highest Total Quality Points will be given maximum Weighted
Quality Score. The Weighted Quality Score of other bidders will be calculated proportionally to
the Highest Total Quality Points.

Note:
The minimum qualifying Total Quality Points for this particular tender is 50. Firms with Total
Quality Points lower than 50 will be ‘disqualified’ and not have their Weighted Quality Score
/ Price Score / Combined Scores computed.
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PRICE-QUALITY METHOD – CONT’D

The Price Score

8. The lowest tender price in the selected shortlist, if any, will be given the maximum price score.
The price scores of the other tenderer’s price will be inversely proportional to the lowest tender price.
The Tender Price of a tender will be translated into Weighted Price Score, P (wt) using the following
formula:

P (wt) = (Lowest Tender Price1 / Tenderer’s Price) x Price Weighting

The Combined Score

9. The Combined Score of a tender will be the sum of its Weighted Quality Score, Q (wt) and
Weighted Price Score, P (wt) :

Combined Score = Q (wt) + P (wt)

Tender Submissions

10. Tender proposals (2 hardcopies minimum) will be submitted according to the one-envelope
system. The firms will be asked to submit the price and quality bids together. These will be opened
at the same time.

The price and quality scores will be computed and the firm with the highest combined score
will be recommended for the award of the contract.

1
The Lowest Tender Price amongst the tenderers that comply with the other critical criteria, including meeting
the “Passing Mark”, if applicable.