Singapore legislation
Regulation 74
Regulation 74
Procedure for tenders
Subregulation 1
Unless waived under paragraph (17), tenders shall be invited for the execution of works or for any single item of stores or services estimated to cost more than $70,000.
Subregulation 2
[Deleted by S 179/99 wef 15/04/1999]
Subregulation 3
The invitation to tender shall be advertised in the local or international trade press, or by electronic means.
Subregulation 4
Tenders shall be called for all stores, services or works to be supplied or carried out over a period except that quotations in writing shall be invited if the value of the stores, services or works is estimated to be less than $70,000.
Subregulation 5
The advertisement required under paragraph (3) should be brief, giving the minimum information necessary for the tenderers to know what stores, services or works are required, the period of the contract and whether the issue of tender is restricted to tenderers registered with the Building and Construction Authority or the Expenditure and Procurement Policies Unit of the Ministry of Finance.
Subregulation 6
Subject to paragraph (7), the minimum period of tender notice shall not be less than —
in the case of contracts which are advertised locally — 3 weeks for conventional contracts and 8 weeks for design and build contracts; or
in the case of contracts which are advertised both locally and overseas — 12 weeks.
Subregulation 7
Notwithstanding paragraph (6), the chairman or his authorised officer may approve a shorter period of tender notice and the reasons for the shorter period shall be recorded and disclosed to the Town Council.
Subregulation 8
The chairman or his authorised officer may approve an extension of the period of tender notice if, before the close of the tender, 2 or more requests for extension are received by the Town Council.
Subregulation 9
An alternative offer may be allowed if —
it is specifically provided for in the tender documents;
the price quoted shall be as at the time of tender; and
the tenderer also submits a main offer which will be evaluated before the alternative offer.
Subregulation 10
The alternative offer submitted under paragraph (9) may be accepted only if it fulfils all functional requirements and the cost is lower than the main offer.
Subregulation 11
When it is necessary to prequalify the contractors, an open tender shall be called for prequalification exercise.
Subregulation 12
No preselection of firms shall be allowed, unless prior approval of the Town Council has been obtained on a case-by-case basis.
Subregulation 13
Tenders received shall be placed before the Town Council, the chairman, or any committee appointed by the Town Council for the purpose, who shall, except as provided under paragraph (15), accept the lowest tender meeting specifications within their respective financial authority under rule 34(1).
Subregulation 14
All tenders accepted by a committee shall be circulated to the Town Council for information.
Subregulation 15
The Town Council or the chairman, within the financial limit authorised by the Town Council, may for reasons to be disclosed with the acceptance, accept a tender which is not the lowest tender.
Subregulation 16
The circumstances and reasons for not accepting the lowest tender which meets the specifications fully or very substantially must be fully justified and shall be recorded and open to scrutiny by the auditor.
Subregulation 17
Tenders may be waived by the Town Council or the chairman as authorised within the limits of his financial authority to incur expenditure where —
the supply of goods or services is known to be only within the capacity of a sole agent or a specialist contractor;
the urgency of the requirement makes it necessary; or
it is manifestly necessary in the public interest to do so.
Subregulation 18
Waiver of tenders under paragraph (17)(b) or (c) shall only be used under very special circumstances and must be fully justified.
Subregulation 19
The submission to the Town Council or the chairman for accepting a tender which is not the lowest tender under paragraph (15) or for waiver under paragraph (17), and the circumstances and justification for accepting any such tender or granting any such waiver, shall be recorded and made available to the auditor for inspection and audit.
Subregulation 19A
No person making any submission for accepting a tender which is not the lowest tender under paragraph (15) or for waiver under paragraph (17) shall have any interest in the supplier of the stores, services or works in respect of which the acceptance of such tender or the waiver is sought.
Subregulation 20
The successful tenderer for the execution of work or the supply of goods or services shall be required to comply with such conditions as the approving authority may from time to time stipulate with regard to security deposits, bankers’ guarantees, insurance and guarantors before entering into a contract with the Town Council.
Subregulation 21
The amount of any security deposit or banker’s guarantee which the approving authority may require under paragraph (20) shall not exceed 10% of the total estimated cost of the works, goods or services sought to be procured under the tender.