PF4102: Contract and Procurement Management Notes
Lecture 1
Comparison of PSSCOC, SIA and REDAS
PSSCOC SIA REDAS
Stands for Public Sector
... [Show More] Standard
Conditions of Contract
For Construction Works
Singapore Institute
of Architects
Real Estate
Developer’s
Association
Used in
common contract form to
be used for all public
sector construction
projects.
Commonly used for
private sector
projects
Remarks
Has different versions for
D&B and DBB projects.
D&B
DBB: Consultancy
Contract, Singapore
mostly uses this.
No retention sum.
Most commonly
used for D&B
contracts
Most commonly
used for Design Bid
Build contracts
Similarities Each of these comes with
different variants, such as
lump sum, BQ etc
Lecture 2: Procurement
● Criterias: Transparency, open and fair competition, value for money.
● Sourcing Contractors: Open Tender, Selective Tender, Limited Tender.
(Comparison of different types of tenders- their advantages and
disadvantages- is on page 38,39)
- Prequalification of tenders
- Contractors Registration system
● Price Quality Method (PQM) -Construction Contracts - Slide 12
- One envelope system: WHY NOT One envelope system: tenderer
submit their tender proposal in 1 envelope. Government projects have to
be of certain standards, emphasis on pricing first might compromise on
quality aspect.
- Two envelope system: quality will be separate from bidding price.
Tenderers are required to submit their tender in two envelopes.
Assessment of technical proposal first, before opening the financial
proposal. Quality needs to reach the benchmark for price envelop to be
considered. Technical proposal - comprises all the non-pricing sections
(eg quality control, site organisation, project layout plan etc) Financial
proposal → comprises the tender price plus all the pricing sections (eg
priced BQ or schedule of works) ; Technical proposal → comprises of non
pricing sections of the tender proposal (eg construction methodology,
quality control etc)
★ Assessment of Quality: Slide 14
★ Quality score computation: Slide 15, 17
★ Price Score computation: Slide 16, 17
● QFM - Quality Fee Method (Consultancy Contracts)
★ Weightage: Quality: 50-70%, productivity: 20%, Fee: 30-10%
★ Quality-based, open and transparent, resource-efficient
Competition Vs Negotiation
Factors Competition Negotiation
Definition - invite contractors to
provide the best possible
price for a defined scope
of work.
- Once all bids are
- owner negotiates a price for
services rendered with a
single contractor.
- contractors do not
compete against each other
submitted, the lowest bid
is typically chosen, winning
contractor signs a contract
to begin work.
- enables the owner to
compare prices before
work begins.
for the lowest possible price
and
- owners are not provided
comparative pricing.
Lecture 3: Project Delivery Methods
Procurement Options/ Project Delivery Methods
Procure
ment
Options
Characte
ristics
Payment Example
s
Sourcing
Contractors
Why use this method?
DesignBid-Build
Owner
engages
Consulta
nts to
design
the
project
and draft
tender
documen
ts and
also
construct
- Lump
Sum
- Bill of
Quantiti
es
HDB
Condos
Commo
n
facilities
- Open Tender
- Selective Tender
-Traditional
- used widely in SG
- Can use ECI
Design &
Build
Owner is
still
involved
in
preparati
on of
brief etc
ECI
- Lump
Sum
-CostPlus
Water
fabricati
on
plants
Selective Tender - No need to enter into
separate contracts with
Architect, Engineers and
other professionals
-Practical and buildable
design
-reduction in time
-reduction in cost
Construc
tion
Manage
ment
Construc
tion
Manager
to plan,
coordinat
e, control
a project
from
beginnin
g to
completi
on
Fixed
fee
basis
MBS Selective Tender - In large projects to
achieve specialization
Turnkey Employe
r has V
MINIMAL
input.
- Lump
Sum
(Staged
payment
s)
Speciali
zed
works
(eg:
rides in
Limited Tender - Specialist designs [Show Less]