The Bonus Scheme for Construction Quality (BSCQ) promotes better workmanship in the built environment sector.
Based on BCA's Construction Quality Assessment System (CONQUAS®) score, contractors will be given an incentive by the government to offset their construction costs if their quality of workmanship exceeds a stipulated standard for the relevant building category. However, they will be penalised with default points if their quality of workmanship is poor. Merit points gained can be used to offset default points.
For joint ventures, the merit and default points will be the same for each partner.
Who does it apply to
The scheme applies to:
- Both local and foreign contractors
- All CW01 contracts for new public sector building projects valued above S$5 million*
- Public sector 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.
Incentives / Disincentives
| Incentive |
Threshold |
Details |
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Bonus and Discount
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3 points above and 3 points below the previous 24-month average CONQUAS® score for the relevant building category
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- 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.
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| Disincentive |
Threshold |
Details |
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Price-Loading
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When a contractor accumulates default points in the latest 5 contracts
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- A price-loading of 0.2% for each 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 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.
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Downgrading in Financial Grade of Registration
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When a contractor accumulates more than 5 default points in the latest 5 contracts
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- The contractor will be downgraded by one grade for up to a period of 12 months.
- Upon downgrade, all merit and default points accorded to the contractor will be set to zero.
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Debarment
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When a contractor accumulates 10 or more default points in the latest 5 contracts
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- The debarment is based on the BCA current contractor’s registry system.
- Upon debarment, all merit and default points accorded to the contractor will be set to zero.
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