WOL N7C34 PQMCriteria Building EPVaboveBCAB2 1Apr13

Apr 2013 BLDG(Residential) PQM above B2 of 13

PART A : BUILDING WORKS AT WOODLANDS NEIGHBOURHOOD 7 CONTRACT 34 (TOTAL : 194 DWELLING UNITS)

PART B : CONTINGENCY WORKS For Tenderer’s information, HDB’s tender cost estimate for this tender is $29,600,000.00. (Note : excluding Part B : Contingency Works)

EVALUATION USING PRICE QUALITY METHOD

[For Building (Residential) project of EPV above BCA B2] The Tender Proposal shall be evaluated using the Price-Quality Method (PQM). Price and Quality Attributes are assigned weightages and translated into quantitative scores which are then totalled up to give a Combined Score during tender evaluation. The Price and Quality Attributes shall make up 80% and 20% of the Combined Score respectively (i.e. Price:Quality Ratio = 80:20). The HDB shall evaluate the Tender Proposal based on the following criteria: 1.0 Critical Criteria

Non-compliance with any of the following critical criteria will preclude the Tender Proposal from further evaluation by the HDB: 1.1 Registration with Government Registration Authority

The Tenderer shall be registered with Building and Construction Authority under the supply category/head of CW01 and financial category of B1 and above.

1.2 Restriction and Debarment

The Tenderer shall not be debarred on or after the closing date of tender by the Standing Committee on Debarment, c/o Ministry of Finance from participating in public-sector projects. The Tenderer shall not be restricted as at closing date of tender, by HDB from tendering HDB projects.

1.3 Full compliance with components of the Invitation to Tender

The Tender Proposal shall comply fully with the Instructions to Tenderers, the Form of Tender and the Conditions of Contract. The Tenderer shall not change the text of the components of the Invitation to Tender, including but not limited to the Instructions to Tenderers, the Form of Tender and the Conditions of Contract.


1.0 Critical Criteria (Cont’d) 1.4 MYE Freeze under MOM’s Safety Demerit Scheme

The Tenderer shall not be under a MYE freeze (any occurrence) imposed by MOM under Safety Demerit Scheme.

1.5 Control Measures under Tender Opportunities System

The Tenderer shall not reach/exceed control measures under the HDB Tender Opportunities System as at tender closing date.

1.6 Judicial Management or Scheme of Arrangement or Winding up

The Tenderer shall not be under any petition for Judicial Management or petition for Winding Up. The Tenderer shall not be under an Originating Summons for a Notice of Meeting to consider Scheme of Arrangement. The Tenderer shall not be under a Judicial Management Order or a Scheme of Arrangement or a Winding Up Order.

1.7 Negative Net Worth

The Tenderer shall not have negative net worth in the latest audited accounts.

1.8 Credit Rating of DP8(1) or DP8(2)

The Tenderer shall not be credit rated as DP8(1) or DP8(2) as at date of tender closing. This credit rating is to be referenced to the credit rating1 reflected in the BCA's record. 1 Tenderer can check with BCA to know their credit rating.

2.0 Other Criteria 2.1 Price Differential Cap The Tender Price shall not exceed the Lowest Tender Price2 of Complying

Tender3 by more than 5% in dollar terms or $2 Million, whichever is the lower.

2 in exceptional cases where very low tender price is due to pricing mistake, HDB reserves

the right to ignore that price as reference. 3 tender that complies with the Critical Criteria Tenderers whose Tender Price fail the Price Differential Cap will not be

evaluated further.


2.0 Other Criteria (cont’d) 2.2 Quality Attributes

HDB takes into account the following Quality Attributes and the respective Quality Weightage:

Quality Attributes (where BSCQ is applicable) Quality Attribute % breakdown

Average Performance Score 50%

CONQUAS 10%

Safety Score 20%

Financial Health (Credit Rating) 15%

Shortening of Construction Period 5%

Total 100%


2.0 Other Criteria (cont’d) 2.3 Average Performance Score

(50% of Quality Score where BSCQ is applicable)

(a) HDB Contractor Performance Assessment Score

The scoring is based on Average Performance Score (APS) of HDB’s current projects of specified workhead for this tender (i.e. CW01 or CW02).

Contractor’s APS Quality Points =>80 10 =>75 and <80 9 =>70 and <75 8 =>65 and <70 7 >60 and <65 4 =<60 0

(b) If (a) is not available, then BCA’s records will be used to score

performance.

Project performance from the same workhead as project under tender and completed within last 3 years from date of tender close will be used. Simple average of the Quality Points will be used if there is more than one project. For example, if the tenderer has one ranking of “Very Good” and one ranking of “Satisfactory”, the average of the Quality Points is (9 + 7) / 2 = 8.

Performance in BCA’s

Records Quality Points

Excellent 10 Very Good 9

Good 8 Satisfactory 7

Poor 0

(c) If (a) and (b) are not available, the simple average of all the other complying tenderers' Quality Points for performance will be used.


2.0 Other Criteria (cont’d) 2.4 CONQUAS

(10% of Quality Score where BSCQ is applicable) For the purpose of CONQUAS attribute evaluation, the Benchmark

CONQUAS Score (BCS) is 85.70

CONQUAS Certificates issued within last 3 years* for public housing project

Quality Points for Contract Sum

<$50M =>$50M and <$100M =>$100M

For each project with CONQUAS Score equal to

or above the BCS 2 3 4

* from Tender Closing Date against the Dates of Issue of respective projects’ CONQUAS certificates

Where a tenderer has more than one qualifying CONQUAS Certificate, the Quality Points for this attribute shall be aggregated, subject to maximum of 10 points.

For tenderers who have CONQUAS Certificates for public housing projects

issued by BCA in the past 3 years* but with none of them attaining CONQUAS score equal to or above the BCS, their Quality Point score will be zero (0).

Newly registered contractor or existing contractor without any CONQUAS

Certificate in public housing projects in past 3 years will be (for tender evaluation purpose) accorded CONQUAS Quality Points, based on the average of all the other eligible tenderers’ CONQUAS Quality Points [including those who scored zero (0)].

Tenderers are to submit copies of relevant CONQUAS Certificates. If a

Tenderer fails to submit such certificates, it may be deemed that they do not intend to claim Quality Points for CONQUAS and HDB reserves the right not to award Quality Points.

Tenderers who have no CONQUAS Certificates in public housing projects in the past 3 years should declare so in their tender submission.


2.0 Other Criteria (cont’d) 2.5 Safety Score (20% of Quality Score) (a) Weightage of HDB Safety Appraisal System and Ministry of

Manpower's (MOM) System The Safety Score shall comprise 60% of Quality points from HDB

Safety Appraisal System, 30% of the Quality Points from the MOM Safety Demerit Points List and 10% of the Quality Points from HDB Construction Safety Awards.

(b) HDB Safety Appraisal System (60% of Safety Score or 12% of Quality

Score) Quality Points for HDB Safety Appraisal System will be awarded based

on the following table:

HDB Safety Demerit Points Quality Points 0 10 1 to 19 8 20 to 39 6 40 to 59 4 60 to 79 2 =>80 0

The point score will be referenced to the HDB’s List of Contractors with

Demerit Points as at the date and time of tender close. This is regardless of whether the tenderer's HDB Safety Demerit points has increased or decreased after tender closing date.

Contractors who do not have any HDB safety record

Contractors who have never done any HDB project before or who have become dormant, will not have any recent HDB safety record4. In such cases, instead of HDB:MOM ratio of 60%:30%, it shall be HDB:MOM ratio of 0%:90%). 4 HDB will distinguish these cases from contractors who have current HDB projects

but whose safety performance is so good that they have no demerit points at all, i.e. a clean record across all their HDB projects.


2.0 Other Criteria (cont’d) 2.5 Safety Score (20% of Quality Score) (cont’d) (c) MOM Safety Demerit Points List (30% of Safety Score or 6% of Quality

Score) Under the revised MOM Safety Demerit system, MOM monitors main

contractors in stages. Quality Points for MOM Safety Demerit Points List will be awarded

based on the following table which represent the 1st stage of the MOM Safety Demerit Point monitoring.

The 1st stage table is for contractors who have not yet received the

MOM Warning Letter for Safety infringements.

1st stage MOM Demerit Points

1st stage MOM Demerit Points MOM Demerit Points

(before Warning Letter) Quality Points

0 10 1 to 2 8 3 to 5 6 6 to 8 4 9 to 11 2 =>12 0

The quality point score will be referenced to the MOM’s most recent List of Construction Companies with Demerit Points that is published in the MOM website, as at the date and time of tender close. This is regardless of whether the tenderer's MOM Safety Demerit points have increased or decreased after the tender closing date, except if the increase (subsequent to tender close and before award) is so serious that it triggers MYE Freeze by MOM (any occurrence) of the tenderer, then the Critical Criteria regarding MYE Freeze will come into effect and the tenderer will not be further evaluated.


2.0 Other Criteria (cont’d) 2.5 Safety Score (20% of Quality Score) (cont’d) (d) HDB Construction Safety Awards (10% of Safety Score or 2% of

Quality Score)

Quality Points will be given for each Main Award and/or Merit Award earned by the tenderer within 1 year prior to (and including) the date of tender close. This will be referenced to the date indicated in the HDB Construction Safety Award Certificate. The Quality Points are aggregated and capped at a maximum of 10 Quality Points.

HDB Construction Safety Award achieved within 1 year from tender close

Quality Points

Each Main Award 5 Each Merit Award 3

Where a tenderer wins HDB Construction Safety Awards for two consecutive years (e.g. the awards are spaced less than 12 months apart), it may be possible for both to fall within the one-year eligibility period. However the total Quality Points will be capped at the maximum of 10 points. Tenderers who have no HDB Construction Safety Awards within the one-year eligibility period will score zero Quality Points for this sub-attribute.


2.0 Other Criteria (cont’d) 2.6 Financial Health (15% of Quality Score)

Credit rating shall be used to score this attribute. The tenderer’s credit rating shall be referenced to the credit rating reflected in the BCA's C41 record as at date of tender close.

DP Rating Quality Points

1 to 3(2) 10

4(1) to 5(3) 8

6(1) to 6(3) 7

7(1) to 7(3) 3

2.7 Shortening of Construction Period (5% of Quality Score)

Tenderers may propose shortening of construction period. Quality Points will be given for proposed shortening of construction period based on the following table:

Proposed Average No. of Months Shortened per

Residential Block Phase * Points

(Scale of 0-10)

≥ 5 10

≥ 4 to < 5 8

≥ 3 to < 4 6

≥ 2 to < 3 4

≥ 1 to < 2 2

< 1 0

*Proposed shortening of construction period, if any, shall be submitted as an ALTERNATIVE OFFER. Tenderer shall indicate the number of months shortened for the respective residential block phases. A simple average of the number of months shortened for the residential blocks will be computed for use in the scoring of Quality Points. (Please see worked example)


2.0 Other Criteria (cont’d)

2.7 Shortening of Construction Period (5% of Quality Score) (Cont’d)

Worked Example (Project with a total of 5 residential blocks, excluding other phases eg. MSCP, driveways, sewers, site works, etc)

Residential Block A - Proposed shortening by 1 month Residential Block B - Proposed shortening by 0 month. No shortening. Residential Block C - Proposed shortening by 2 months Residential Block D - Proposed shortening by 4 months Residential Block E - Proposed shortening by 4 months

Average number of months shortened = 1+0+2+4+4 for residential blocks 5

= 2.2 months

Number of Quality points to be awarded is 4, based on table below.

Average No. of Months Shortened per

Residential Block Phase

Points (Scale of 0-10)

≥ 5 10

≥ 4 to < 5 8

≥ 3 to < 4 6

≥ 2 to < 3 4

≥ 1 to < 2 2

< 1 0

Tenderer who does not clearly indicate the number of months shortened for the respective residential block phases will have their alternative offer rejected. Tenderer proposing shortening of construction period must also submit construction programme and method to substantiate how the proposed shorten construction period can be achieved. Tenderer who fails to submit the construction programme and method to substantiate how the proposed shorten construction period can be achieved will have their alternative offer rejected. HDB reserves the right to reject proposals that HDB deemed to be unrealistic and unachievable.

Tenderers proposing shortening of construction period shall not be credit rated as DP8(1), DP8(2), DP7(1), DP7(2), or DP7(3) as at date of tender closing. Tenderers who are credit rated as DP8(1), DP8(2), DP7(1), DP7(2), or DP7(3) as at date of tender closing shall have their proposals on shortening of construction period rejected.


3.0 Computation of Scores

3.1 Quality Score Calculation Complying tenderer with the highest Quality Score will be given the

Maximum Quality Score of 20 points, basing on the Price Quality Ratio of 80:20. The Weighted Quality Scores of the other Tenderers will be directly proportional to the highest Quality Score.

The Weighted Quality Score of the Tenderer will be computed using the

following formula: Weighted Quality Score, Q(wt) = (Quality Score of respective tenderer / Highest Quality Score) x 20


3.0 Computation of Scores (cont’d) 3.2 Price Score Calculation The Price Score shall be computed in the following sequence. Firstly, where

price loading is applicable under BSCQ, Tender Price of affected tenderer/s (i.e. Total Lump Sum) is loaded according to their respective Total Price Loading Factor (if any). Secondly, the Provisional Sum (if any) is excluded from the evaluation. Thirdly, the result is then used to compute Price Score.

For the Price Score, complying tenderer with the lowest Tender Price# will be

given the Maximum Price Score of 80 points basing on the Price Quality Ratio of 80:20. The Price Scores of the other Tenderers, based on their respective Prices will be inversely proportional to the lowest Tender Price#.

The Weighted Price Score of the Tenderer will be computed using the

following formula: Weighted Price Score, P(wt) = (Lowest Tender Price# / Tender Price#) x 80

# after Price Loading (if any) and then deducting Provisional Sum (if any) 3.3 Combined Score The Combined Score of a Tenderer will be the sum of his Weighted Quality

Score and Weighted Price Score: Combined Score = P(wt) + Q(wt) The Tenderer who has the highest PQM Combined Score, will usually be

awarded the Tender. 4.0 Invitation of Tender with Tender Options

Where Tender Options are specified by HDB, HDB has the discretion to select the Offer/Tender Option. HDB will usually award to the Tender Offer which has the highest PQM Combined Score, within the selected Offer/Tender Option.

5.0 Alternative Tender Proposal

Any alternative Tender Proposal, by any of the Tenderers, will be treated as a separate Tender Proposal and be assessed accordingly, provided alternatives are allowed and they meet the technical requirements.


6.0 Joint Venture (JV) Quality Scores of each individual Tenderer in a JV (regardless of equity

participation of the parties of JV) will be given equal weightage. For example, if there are 2 parties in a JV, then each will contribute half of the Quality Scores.

7.0 Tie-Breaker In the event of a tie in the Combined Score, the tie-breaker shall be based

on:

(a) 1st level: Price The tenderer with lower price will be awarded the contract.

(b) 2nd level:

If both tenderers have same Combined Score and also bid the same price, the award will go to the tenderer with higher score for:

(Average Performance Score + CONQUAS + Safety Score)

8.0 Documents to be submitted with Tender via GeBIZ

Tenderers shall submit the following supporting documents together with their Tender Proposals via GeBIZ :

(a) Copies of relevant CONQUAS Certificates of Public Housing projects

that they have completed, where the date of CONQUAS Certificate is not more than 3 years before tender closing date. (This is required where BSCQ is applicable)

(b) Construction programme and method to substantiate how the proposed

shorten construction period can be achieved. (This is required only if Tenderer submits alternative offer on shortening of construction period)

WOL N7C34 PQMCriteria Building EPVaboveBCAB2 1Apr13

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