Question 1 – Contractual Arrangements

With reference to the three case situations provided under Appendix A, answer the following questions:

(a) Recommend to the client a suitable type of contractual arrangement for the project in each of the cases, describe its procedures and justify your choice of selection.

(b) Outline the advantages and disadvantages of using your proposed choice in Case 1 only.

Question 2 – Tendering Procedures, Prequalification of Contractor, Tender Evaluation and Award

With reference to the project only in Case, 1 provided under Appendix A, answer the following questions:

(a) Recommend a suitable tendering method for the project, justify your choice of selection, and describe its procedures.

(b) Examine the advantages and disadvantages of your recommended tendering system for the project.

(c) The current guidelines of the Price Quality Method (PQM) will be adopted for evaluating the tenders received for the project. Advise the following:

• Your recommended weighting used for the evaluation of price, productivity
  and quality;
• How the quality attributes and the quality score are determined;
• The two-envelope system of tender submission;
• The information that the client must clearly make known to bidders during the tender stage;
• Identification of the classification of work heads and tendering limits under the Contractors Registration System (CRS).

Question 3 – Public-Private Partnership

In view of the value of the infrastructure project in Case 2, the client has been encouraged to adopt the Public-Private Partnership (PPP). Despite the benefits and encouragement, the client decides to shelve this type of contractual arrangement.

(a) Describe FIVE (5) potential risks or challenges faced by the stakeholders in the implementation of the PPP approach for this project.

(b) In spite of the challenges, explain FIVE (5) reasons why the Government continues to promote the use of PPP for infrastructure development.

Appendix A

Case 1 – LTA Contract for 2 MRT stations and a viaduct

The Land Transport Authority (LTA) is calling for tender for the award of a contract to design and construct two Mass Rapid Transit (MRT) stations and a viaduct for a new and elevated MRT line that will serve the western part of Singapore. The estimated contract value is S$275 million. Tenders for this contract will only be considered from a pre-qualification of tenderers who have suitably extensive experience in such works in a major metro project.

Due to the heavy schedule and the project complexity, LTA intends to keep contractual links as simple as possible and leave the project co-ordination to the contractor. The project also requires patented construction and design, and other forms of specialisation.

Case 2 – 6-storey building for the autonomous university

A public and autonomous university is calling for tender for the award of a contract for the erection of a block of a 6-storey building for its design school. The 23-month contract is estimated to be over $100 million. The new building will house teaching and research facilities and serves as a living laboratory
to promote research collaboration in sustainable building design.

The building will feature a range of green building designs, such as harnessing solar energy, hybrid cooling approach, natural ventilation and lighting. With a gross floor area of 8,514 square metres, it will house a mix of research laboratories, test-bedding facade, design studios, as well as teaching and common learning spaces. The university has awarded separate contracts to consultancy firms to provide architectural, structural and M&E design consultancy services to support this project.

Case 3 – Ministry of Foreign Affairs (contract for cleaning, building engineering systems maintenance)

The Ministry of Foreign Affairs (MOF) is calling for tenders for the award of a contract for the provision of cleaning, building engineering systems maintenance and other related services. The contract period is two years with an option to renew for an additional year. The estimated contract value is $11.4 million.