IQUAS

Information on Construction Quality

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BONUS SCHEME FOR CONSTRUCTION QUALITY (BSCQ)

The Bonus Scheme for Construction Quality (BSCQ) is set up to promote the upgrading of workmanship in the construction industry. Contractors will be paid a bonus by the government if their quality of workmanship exceed a stipulated standard for the relevant building category. However, they will be penalised if their quality workmanship is poor.

The measure of building quality shall be based on BCA's Construction Quality Assessment System (CONQUAS â) score. The Scheme, which is applicable to both local and foreign contractors, will apply to tender called with effect from 1 June 1998. It is applicable for all CW01 contracts for new public sector building projects valued above $5 million* . Also applicable for public projects with a combination of new building works and other works such as upgrading, alteration and additions etc. The BSCQ shall apply once it is specified in the tender document regardless of the outcome of the tender prices.

* -- The scheme shall apply to the effective contract sum in respect of new building works. For new building works, the effective contract sum shall be the contract sum stated in the Letter of Award. For projects which include a combination of new building works and other demolition, upgrading, addition and alteration, renovation and conservation works, the effective contract sum shall be the proportion of the total contract sum estimated by the procurement agencies to be due to new building works, including design, piling, foundation and M&E works, if these are undertaken by the same main contractor. In such cases, the effective contract sum shall be set at the tender stage of the project as a percentage of the contract sum. The BSCQ shall only be applied if the effective contract sum is above S$5 million.


Under the scheme, merit or default point will be given to the contractor for the completed project based on the CONQUAS âscore.

For Joint Venture, the merit and default points will be the same for each partner. The merit points gained can be used to offset default points.


Bonus and Discount

The bonus and discount will be applied above and below a pre-set threshold band based on the CONQUAS â score. The bonus/discount threshold scores will be set at three points above and three points below the previous 24-month average CONQUAS â score for the relevant building category. A bonus/discount of 0.2% of the effective contract sum will be applied for each point scored above/below the applicable threshold score. The bonus/discount will be subjected to maximum of 3% of the effective contract sum or S$2 million, whichever is lower.

The bonus and discount element will be stated in the Invitation to Tender, so that all prospective contractors tender on the same basis, taking into account the bonus and discount premiums when submitting tender proposals.


Disincentives

a. Price-Loading

When a contractor has accumulated CONQUAS â default points in the latest five (5) contracts, a price-loading of 0.2% for each CONQUAS â default point, subject to a maximum of S$2 million, will be applied against any tender proposal by the contractor in the evaluation of tender.

BCA will circulate a price-loading list to agencies on the first working day of each month. It will indicate the net CONQUAS â default points accumulated for the latest 5 contracts completed by each contractor. The list will be valid for every tender where the closing date of the tender falls within that month.

The procurement agencies will evaluate the applicable tender based on the price-loading list. They will recommend the award of contract to the lowest effective tender. For Joint Venture, the price-loading factor used shall be the highest among partners.

b. Downgrading in Financial Grade of Registration

If the contractor accumulates more than 5 CONQUAS â default points in the latest five (5) contracts, it will be downgraded by one grade for up to a period of 12 months. Upon downgraded, all merit and default points accorded to the contractor will be set to zero.



Debarment

The existing debarment guideline will still continue to apply. Debarment will be recommended if the contractor accumulates 10 or more default points in the latest five (5) contracts. The debarment is based on the BCA current contractor’s registry system. Upon debarred, all merit and default points accorded to the contractor will be set to zero.

   
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