Channel NewsAsia
Updated: 11/16/2012 08:30 | By Channel NewsAsia

MOT looks at quality, not lowest cost in deciding tenders for projects

MOT looks at quality, not lowest cost in deciding tenders for projects


MOT looks at quality, not lowest cost in deciding tenders for projects

SINGAPORE: Associate Professor Muhammad Faishal Ibrahim, who is Parliamentary Secretary for Transport, said the ministry also considers quality, not just the lowest cost, when selecting a tender.

Associate Professor Faishal was responding to a question on whether the Transport Ministry makes a calculation of how much a project costs before calling for tenders for infrastructure projects.

MP for Holland—Bukit Timah GRC, Christopher de Souza, said this would avoid pressuring subcontractors’ fees, especially if a project could not be realistically done at a lower figure.

Associate Professor Faishal said: "Even before we call for tender, we make sure we assess the project accurately, and we go stages by stages. And wherever possible, we meet the tenderers to discuss on the cost estimates per se.

"We do not necessarily look at the lowest tenderer, we also look at quality. We’ll also look at how realistically the project can be implemented or completed.

"In fact, prior to looking at all the cost estimates, we work very closely with the market, the industry to ensure that our cost estimates are accurately provided."

— CNA/lp

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