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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 (i.e. quality and productivity) 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 (i.e. quality and productivity) of tender proposals to determine the best value-for-money among all submitted proposals. 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

Weightages for

Building tenders1

Weightages for

Civil Engineering tenders2

Price

40-60%

50-70%

Productivity

10%

10%

Quality

50-30%, correspondingly

40-20%, correspondingly

1 These refer to building projects classified under Contractors Registration System (CRS) Workhead CW01.
2 These refer to civil engineering projects classified under CRS Workhead CW02.


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.

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