1.3 BSCQ-PQM Overview - Builders

Bonus Scheme for Construction Quality (BSCQ)
(for public building projects only)
Price Quality Method (PQM)

(for public building projects only)
Purpose of BSCQ
• Upgrade the quality of workmanship in the

construction industry
• Give direct incentive to contractors for

providing good quality work
• Ensure quality works for public building

projects
2
Scope
The scheme is applicable to:
• CW01* contract for new public building works valued
above $5m
• tenders called from 1 June 1998
• apply to local and foreign contractors
• Public projects with a combination of new building works

and other works (such as upgrading, alteration and
additions, etc.)
• Government funded projects
* BCA’s Construction Work Heads for General Building works
3
Other Scopes
• No BSCQ for novated contract but should

complete the CONQUAS assessment
• Re-tender contract still can qualify for BSCQ if

able to have a complete CONQUAS score
• Contracts with mixed CE & Bldg works can still

qualify for BSCQ
4
Information on BSCQ
5
https://www1.bca.gov.sg/buildsg/quality/bonus-scheme-for-construction-quality
Effective Contract / Tender Sum
• Effective Contract Sum is the proportion of the

contract sum for the new building works for
computation of bonus/discount
• Effective Tender Sum is the proportion of the tender

sum used for cost comparison / tender evaluation
• Effective Contract/Tender Sum includes Design fees,

Piling works, Foundation and M&E works
6
Incentives
• Bonus of 0.2% of the effective contract sum for

each CONQUAS point scored above the contract
Bonus Threshold Score (BTS)
• The bonus will be subjected to maximum of 3% of

the effective contract sum or S$2 million, whichever
is lower (no GST)
• Payable not later than 30 days after the DLP
• Merit points will also be given and can be used to

offset default points under Price Loading
7
Example of Bonus Calculation
• Effective contract sum = $120 million
• Bonus Threshold Score = 88.0 pts
• Actual CONQUAS score = 89.5 pts
• Bonus = (89.5-88) x 0.2% x $120 million

= $360,000
8 8
Disincentives
• Discount - deduction from payment
• Price Loading for future tenders as long as 3 years
• Downgrading - for 1 year
• Debarment - for 1 year
Check for updates at:

https://www1.bca.gov.sg/buildsg/quality/bonus-scheme-for-
construction-quality
9
Price Loading
• Based on the Default Points cumulated
• Tender sum will be loaded for tender

evaluation (only for BSCQ projects)
• Advantage for good contractor over

bad contractor in tendering
• A price-loading of 0.2% will be imposed

for each CONQUAS default point
Check for updates at:

www1.bca.gov.sg/buildsg/quality/bonus-scheme-for-construction-
quality
10
Example Application of Price-Loading
In the above example, based on the effective tender value, Firm C will be awarded
the tender at his tendered sum of $301.3 million, even though Firm A and B has
tendered lower actual prices of $301 million and $300 million respectively.
Instruction Manuals - BONUS SCHEME FOR CONSTRUCTION QUALITY (BSCQ) (mof.gov.sg)
11
Discount
• Discount will apply - if the project CONQUAS score is < stated

Discount Threshold Score (DTS)
• A discount of 0.2% of the effective contract sum will be applied for

each point scored below the applicable DTS.
• Discount will be subjected to a maximum of 3% of the effective

contract sum or S$2 million, whichever is lower
• Good practice to monitor interim CONQUAS score especially if the

estimated discount is large
12
Downgrading and Debarment
• If the contractor accumulates > 5 CONQUAS Default points for

the latest 5 contracts, it will be downgraded by one grade for up to
12-month period under BCA’s CRS
• Upon downgrading/ debarment, all merit and default points

accorded to the contractor will be set to zero
• Debarment (from MOF) will be recommended (by BCA) if the

contractor accumulates 10 or more default points in the latest 5
contracts.
13 13
Common Pitfalls
• Neglect quality standard for small value project

- same default points regardless of contract value
• No monitoring of status of CONQUAS score
• Management and Staff not aware of the impact of low

CONQUAS score
14
Price Quality Method (PQM)
• For construction tenders invited under CW01 & CW02 workheads that
are $3 million and above
• Safety performance is a mandatory Quality criterion
• New version in line with Construction Industry Transformation Map

(ITM) is effective from 31 Jan 2018
• Details at https://www1.bca.gov.sg/procurement/tender-stage/price-
quality-method-pqm-framework
15
Application of PQM
Agencies to define
• Price Productivity and Quality Weightage

• Range from 40:10:50 to 60:10:30 (depend on complexity)
• What are the Quality attributes

• Timeliness, Quality, Past performance, Track records, Project specific proposal, etc
• Mandatory min 15% for Safety performance
• Individual weightages
• Scoring method
• Benchmark Performance Method
• Ranking Method
16
Application of CONQUAS Score in PQM
Example:
• Agency set benchmark performance level:
3 projects achieving CONQUAS score 82 points or more within the past 3 years
• Maximum score for this quality attribute is 10 points
• Firms meeting requirements get 10 points
• Firms don’t meet requirements, get lower points or no points
17
Conclusion
• Looking forward, there will be greater emphasis on Quality
• Government will reward good quality contractors through:

• PQM – higher chances for contractors with proven high CONQUAS score projects to
secure contracts
• BSCQ – monetary reward for effort on current projects
• BCA initiatives to help the industry:

• CONQUAS training for Developers/Consultants/Builders (max 6 complimentary
places for each CONQUAS project)
• Customised CONQUAS training for Main Contractors and their Sub-contractors
• Certified QM/CONQUAS Manager Course
• Recognition Schemes – Certified QM/CONQUAS Manager and Supervisor
18
Thank you
@BCASingapore

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Bonus Scheme for Construction Quality (BSCQ)

(for public building projects only)

Price Quality Method (PQM)

• Upgrade the quality of workmanship in the

• Give direct incentive to contractors for

• Ensure quality works for public building

• tenders called from 1 June 1998

• apply to local and foreign contractors

• Public projects with a combination of new building works

• Government funded projects

* BCA’s Construction Work Heads for General Building works

• No BSCQ for novated contract but should

• Re-tender contract still can qualify for BSCQ if

• Contracts with mixed CE & Bldg works can still

• Effective Contract Sum is the proportion of the

• Effective Tender Sum is the proportion of the tender

• Effective Contract/Tender Sum includes Design fees,

• Bonus of 0.2% of the effective contract sum for

• The bonus will be subjected to maximum of 3% of

• Payable not later than 30 days after the DLP

• Merit points will also be given and can be used to

• Effective contract sum = $120 million

• Bonus Threshold Score = 88.0 pts

• Actual CONQUAS score = 89.5 pts

• Bonus = (89.5-88) x 0.2% x $120 million

• Discount - deduction from payment

• Price Loading for future tenders as long as 3 years

• Downgrading - for 1 year

• Debarment - for 1 year

Check for updates at:

• Tender sum will be loaded for tender

• Advantage for good contractor over

• A price-loading of 0.2% will be imposed

Check for updates at:

• Discount will apply - if the project CONQUAS score is < stated

• A discount of 0.2% of the effective contract sum will be applied for

• Discount will be subjected to a maximum of 3% of the effective

• Good practice to monitor interim CONQUAS score especially if the

• If the contractor accumulates > 5 CONQUAS Default points for

• Upon downgrading/ debarment, all merit and default points

• Debarment (from MOF) will be recommended (by BCA) if the

• Neglect quality standard for small value project

• No monitoring of status of CONQUAS score

• Management and Staff not aware of the impact of low

• Safety performance is a mandatory Quality criterion

• New version in line with Construction Industry Transformation Map

• Price Productivity and Quality Weightage

• What are the Quality attributes

• Maximum score for this quality attribute is 10 points

• Firms meeting requirements get 10 points

• Firms don’t meet requirements, get lower points or no points

• Government will reward good quality contractors through:

• BCA initiatives to help the industry:

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