Singapore Move to Counter Bid Price Wars

Greater Weighting for Quality

About two decades ago when I was working for Microsoft Magazine, a cover story I wrote was on the use of technology in construction. An architect I spoke to for the piece then had a telling comment: “This is an industry where human lives are involved. The focus, therefore, will have to be on ensuring safety and quality, using proven methodologies.”

Not surprisingly, technology adoption in the sector was not as pervasive as it was in other verticals. Now, though, the challenge is not technology, but price wars.

In a significant development yesterday, Singapore announced that weighting for the quality component of a tender would go up from 30% to up to 60% for government projects.

That is a welcome move as price wars are bound to have a detrimental effect on projects – be it in construction or other business areas. 

The private sector, across all verticals, can take a cue from it and focus more on quality and less on price in their own interest. While upfront costs may be more, the return on investment (RoI) for them can more than make up for it.

G Joslin Vethakumar


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Filed under Bid Strategies, Price Wars

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