Reforms to Promote Non-Price Factors in Public Works Procurement in Singapore

This article examines the shortcomings that have arisen over the years in Singapore's open and competitive procurement system for public works. The shortcomings are due to the central priority frequently given to bid prices at the expense of key non-price factors, namely work quality, contractor reliability, work safety, and environmental sustainability. In the light of these shortcomings, the article considers the reforms which have been implemented by the Singapore government to ensure such non-price factors are given greater priority and become decisive criteria in both the award of public works contracts and in the evaluation of contractor performance. The article further discusses the reasons for the government's commitment to promote non-price factors in public works, highlighting Singapore's global standing, national aspirations, competitiveness, and changing public expectations. To guide the analysis, the article draws on market failure theory as applied to the procurement market, which avers that open and competitive systems of procurement may mal-function by failing to deliver value for money as a result of compromising work quality and contractor reliability, and by thwarting the achievement of social objectives such as work safety and environmental sustainability.