The Improvement On Government Procurement Construction Essay

The recent purchase of Brompton bikes by the National Parks Board have made authorities procurance processes taken into the limelight. NParks blessing to purchase of 26 bikes for a sum of S $ 57,200 has raised the superciliums from members of the populace over the high monetary value. National Development MinisterA Khaw Boon Wan have subsequently called for internal reappraisal over the dealing.

The probe has revealed that the notice of stamp was drawn up during Chinese New Year period with merely 3 on the job yearss for Bicycle Company to react to the stamp and most companies were non informed of such stamp. This resulted merely one company to react to the stamp.

This incident has reviewed the defects of procurance in both authorities and building industry. Procurement has come under tight examination and it has to be improved. Minister Tharman had later spoken on parliament to turn to the betterment of procurance.

Improvement on authorities procurance

During the parliament address, Minister Tharman said the individual bidder in procurance has accounted for approximately 2 % of the entire value of contracts that are being awarded every twelvemonth. He added that his ministry will be bettering the regulations on individual bidder and that the blessing processs will be tightened to guarantee citations are unbroken unfastened long plenty and to promote possible providers to take portion. ( Channel NewsAsia, 2012 )

Harmonizing to Mr Tharman, the betterments on the procurance policies are as followed:

Single commands

If a individual command has been received, officer is required to measure if the command received is a sensible 1. In such state of affairss, officer is to include an extra justification of the rationality of the command to the authorization, by turn toing the issues below:

Whether there had been attempts to guarantee adequateness of competition for the procurance ;

Whether the specifications had been excessively narrow so as to impede competition ;

Whether the individual command is competitory or brooding of just market value ;

Whether the award of the individual command would be consistent with procurement rules of unfastened and just competition, transparence and value for money, every bit good as public outlook of prudence and answerability in outgo ;

If the governments find that the individual command is non sensible, the stamp will non be awarded to the company and new stamp or citation shall be called.

Addition in Quotation Opening Period

The minimal citation gap period for provider to subject their commands for citations ( eg. authorities contracts of between $ 3000 and $ 70000 in value ) will be extended from 4 to 7 working yearss. By increasing the citation opening period will promote competition by giving possible providers more clip to react. Where there are exigencies which require a shorter opening period, the blessing of at least a Director ( or equivalent ) must be sought. ( MOF, 2012 )

Mr Khaw Boon Wan subsequently added in Parliament on 10 September 2012 that sections can besides remember the citations with a longer opening period if they feel it would assist to procure more competitory commands. ( Today, 2012 )

Encouraging Competition

In order to cut down the likeliness of individual command, Mr Tharman urge officer to maintain up good pattern such as alarming providers of citation or stamp chances through GeBIZ. This will promote competition of commands and is particularly of import when the procurance is for less common merchandises like the Brampton bike.

Fair Competition and Efficiency

Mr Tharman said that officer must continue just competition and increase the efficiency in public sector. Hence, to avoid any perceptual experience of prejudice, officers should be aware to keep a flat playing field. It is of import that the stamp or citation notice are to published openly in GeBIZ and officers must non unwrap information merely to selected providers such that it gives them an unjust advantage over other providers.

Exerting Prudence in Procurement

In sketching the betterment, Mr Tharman besides emphasized that Singapore ‘s system of public sector procurance is “ on the whole, in good working order ” . ( Channel NewsAsia, 2012 ) . He said that the oversight in procurance were non due to the deficiency of regulations, alternatively, they were caused by officers neglecting to follow the regulations. Therefore, the betterment for this will be exerting prudence in procurance. This means that officer must guarantee that all procurances are carried out in a mode that is consistent with the procurance rules, every bit good as financial prudence and answerability. Military officers are to be aware that procurances do non come across as extravagant. It means that when managing procurance, officer is to take into history prudence in the usage of public monies, in add-on to operational demands, before giving blessing to the procurance.

Declaration of Conflict of InterestA

Last, in order to protect the unity of the procurance procedure, a answer to a populace at passs times website, the manager of Minister of Finance Miss Lim Bee Khim stated that officers involved in any phase of the procurance procedure should declare any struggle of involvement and if necessary, to retreat from the procurance procedure and be replaced by another officer.

Using the construct to building industry

Base on the above, we are besides able to better procurance in building industry by utilizing the authorities procurance policies as a guideline for building procurance.

One such concept we can use to the building industry is just competition and efficiency. Therefore, when naming for a stamp, bidder/tenderer should have the same information, this includes responses to inquiries. Same like the authorities policy, the process must be just ; there must be a just competition. Example of the information to be given to the tenderers consists of the followers:

aˆ? Basis of competition

aˆ? Criteria to be used in the rating of ability

aˆ? Priority order to be given to these standards

aˆ? In the instance of competition on ability and monetary value and combined taging agreements, an indicant should be provided of the minimal weighting for ability

Another construct we could follow in the building industry is increase in citation gap period, if possible. The tendering period in building industries normally varies from 4 hebdomads to 8 hebdomads depending on the complexness of the project/tender. However, if the project/tender is excessively complex to let bidders to tender on clip, the client should besides follow the authorities thoughts of increasing the stamp gap period so that they will be able to procure wider pick of stamp during tendering procedure.

In the event if where there is merely individual command during building tendering, client should besides measure whether the command received is sensible, non merely in footings of the monetary value, but besides in footings of the ability. This is because tendering on the footing of monetary value alone may be hazardous ; hence client should besides measure the ability of the contractor before award the stamp to the contractor.


The purchase of Brompton bikes by the NParks has reviewed the defects of procurance in Singapore and procurance is presently under tight examination. In this assignment, we has discussed the several betterment on authorities procedure and how we can follow the to the building industry in order to accomplish betterment in the building industry.

B. Control on wastages and lost of resources in the building industry and recycling of used stuffs are cardinal concerns in Singapore. Explain with back uping newspaper studies.

Singapore is a little and developed state whereby human work force is the lone natural resource that we have. Other natural resources such as steels, forests and sums have to beginning and import from neighbouring states like Malaysia, Indonesia and Cambodia. The monetary value of these natural resources is non inexpensive due to high demands in the market, therefore it is of import to command the sum of wastage produced, prevent for any doomed of resources and recycling of used stuffs in the building industry.

These issues have hence become Singapore ‘s cardinal concern. It will non merely incur loss to the building companies ; it will besides make waste jobs to Singapore which will do an impact to the environment if the issues are non addressed.

At the current phase of development in Singapore, whereby the building industry which include edifice substructures, route buildings and cares requires big measure of resources, the demand to command on the sum of wastages, lost of resources and look for alternate beginning become an of import issue to turn to.

Below are some ways that we can improvize to better control on wastages and lost of resources in the building industry:

Create an stock list list

A simple stock list list can be created to maintain path of the sum of building stuffs delivered to site, sum of building stuffs used for fiction plants. This inventory list can supply the site direction a better control of the building stuffs being used on site. A site forces can be assigned to take charge of the stock pickings and issue of building stuffs.

Deploy stuff waste bins

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Fiq 1: Material Waste Bins ( EDCMag )

Material waste bins should be deployed around the site which includes wood waste, metal waste and chemical waste. These material wastes that are collected can be sorted out and deposed at designated bins for recycling intents. On regular footing, recycling companies will roll up the waste stuffs from the stuff waste bins from building sites to treat the stuffs and treat them into functional stuffs to be used once more.


Uneducated workers may non understand the importance behind control and cut downing the sum of wastages to the building stuff. Therefore, site forces should brief the workers and oversee the work procedure such as fiction of steel plants in order to cut down the sum of stuffs being over-used or wasted. This can besides cut down the doomed of resources issue.

Designated storage country for building stuffs

Storage of natural stuffs delivered to building site should be stored at designated country. Such pattern can cut down the rate of resource being lost. Site forces can be assigned to account for these stuffs at the storage country.

Recycling of Used Materials

Most of the otiose stuffs from building sites can be converted to recycled stuffs to be used once more. For illustration, steel waste can be melted down to organize steel home bases and wood wastes can be processed and converted into edifice stuffs and furniture.

One other manner of recycling of used stuffs will be sums. Most of the Ready-Mixed Concrete companies in Singapore have been utilizing recycled sums from unwanted or fresh concrete into their production. Unwanted of fresh concrete are treated by concrete declaimer that washed off cementitous substance from the concrete. The sum will so be separated into all right and harsh sums. These sums can so be re-using for production of concrete.


Coarse Aggregate Discharge Gutter

All right Aggregate Discharge Gutter

Figure 2: A Concrete Reclaimer

CIMG3753 Figure 3: Concrete truck discharge concrete Figure 4: recycled sum from reclaimerCIMG3744m

Concrete utilizing recycled sums can be used in production of eco-concrete such as non supporting walls, little drains, route curbs, pathwaies, non-suspended slabs, thin concrete etc.

Newspaper Article 1

Extracted from

Based on the above newspaper article, every twelvemonth about 1.25 billion metric tons of solid waste is created and this figure may duplicate up by 2025 as stated by World Banks. In order to cut down the sum of solid waste create in Singapore, Samwoh had set up concrete recycling works to change over stuff from old edifice and recycling it into functional surface for route, aircraft, and haven paving.

From this article, Samwoh has brightly converted unwanted building waste into functional building stuffs by recycling. This manner can mostly cut down the sum of solid waste contributed every twelvemonth and besides salvage money from purchasing new stuffs which can be dearly-won depend on the market demand.

Construction sites in Singapore should make their portion in constructing a more sustainable environment by cut downing the sum of natural resources to be used in building. As such, recycled stuff can be considered to be used to replace the usage of natural resource, so as to decrease the impact to the environment.

c. Enclose a simple sample of Conditions of Contract on any building undertaking and summarise in 1 page the cardinal issues you learn.

We hereby attached the status of contract provided from Housing Development Board ( HDB ) to CPG Laboratories Ptd Ltd for Instrumentation and Monitoring Works at Bukit Panjang Neighbourhood 5 Contract 15. Conditionss of contract are footings and conditions that set the rights and duties of the catching parties, when the contract is awarded or entered into. These include ‘general conditions ‘ which are common to all types of the contracts, and ‘special conditions ‘ which are unusual to a specific contract such as, contract alteration conditions, payment conditions, monetary value fluctuation clauses, punishments, etc.

As the Sub-contract plant was awarded in Lump Sum, it intentionally stated the Scope of Works to be carried out by the Sub-Contractor. We observed that there is a statement stating that “ work may be extended or reduced ” , “ specified measures in the signifier of Tender are merely probationary measures ” , which are to forestall the client, HDB from farther fluctuation claims from their contractor, CPG. HDB would be entitled to bespeak add-on measures if necessary with the same payment rate.

Under “ Delivery ” subdivision, we can see that “ the contractor shall at its ain costs and expense provide and provide all labor, stuffs, equipments, conveyances, insurances ” , etc. These are the benefit for the client, to avoid any difference from their contractor.

Under “ Payment ” subdivision, clause 5.2 provinces that within 30 yearss from the day of the month of bill submitted by contractor demand to in valid format, will be specified by the Authority and Authority shall do payment to the contractor the sum set out in the bill for such portion of the work completed. This is a smart statement which benefits HDB authorization to acquire adequate clip to fix for payment without worrying for the fixed day of the month deadline. They merely need to number one month from the day of the month contractor submitted the bill. If contractor delays the bill, they will be detaining their payment excessively by themselves.

Under “ Suspension or Termination ” subdivision, the Authority is entitled to give 30 yearss anterior notice and end the contract if the contractor has breached any of the clause demoing at 8.2. Client has an advantage due to these clause, in instance of something happened to the contractor, client can instantly publish 30 yearss notice and at the same clip, client can look for another contractor to transport on with the current work without set uping the work advancement which would salvage money and clip for the client.

Under “ Liquidated Damages ” subdivision, HDB had mentioned CPG needs to pay for LD which is 10 % of the outstanding instrumentality work if they could non complete instrumentality work within contract period. This will drive the contractor to run into their agendas in order to avoid paying LD from their net incomes. Another subdivision “ EOT for completion ” provinces that contractor will merely be permitted to use EOT if the hold was caused by client, HDB or the chief contractor, who is straight under contract with HDB. If the hold was caused by CPG, they will be charged LD.

The Conditions of Contract are to protect the involvement of both Main Contractor and the Sub-Contractor. The occupation to be completed within/before the Practical Completion Date and the sub-contractors will be paid monthly, concluding histories and keeping monies return to them, wholly as mentioned and stated in the Security of Payment Act. ( SOP ) . It is a win-win state of affairs if the contractor could run into all the agendas without detaining.