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Price Quality Method (PQM) Framework

The Price Quality Method (PQM) is a structured tender evaluation framework which takes into account both price and non-price attributes to evaluate construction tenders. PQM adopts a range of weightages for evaluation of attributes and formalises the assessment of non-price attributes into quantitative scores. The framework optimises value by enabling the tenderer with the highest combined PQM score (i.e. best offer) to be selected for award.

Who is it for

The PQM applies to all public sector construction tenders under the BCA Construction Workheads (CW01 & CW02) with an Estimated Procurement Value (EPV) of $3 million and above.

How it works

The PQM frameworks account for both price and non-price attributes of tender proposals to determine the best value-for-money among all submitted proposals. The Productivity component will be removed from 1 June 2022. Depending on project requirements such as complexity of the project and extent of inputs from tenderers, the evaluation of tenders can be designed based on the following range of weightages. 

Component

Old Weightages

New Weightages
(Effective from 1 Jun 2022)

Price

40%-60%*

40%-60%*

Quality

50%-30% correspondingly

60%-40% correspondingly

Productivity

10%

Removed

*For building tenders only. Civil engineering tenders adopt a 10% higher price weightage.
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Productivity indices

The productivity indices for evaluation purposes in PQM are updated on a quarterly basis, in the months of January, April, July and October. With effect from 1 June 2022, the CS Index will be moved to the Quality component. The TA(C) Index and WD(C) Index will be removed.

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