6 key factors of consideration in

evaluating contractors

Koh De Jian
Quality Assurance
 o Occupational Health & Safety
Management System(OHSAS ISO
18000)
o Environmental Management
System(ISO 14000)
o Quality Management System(ISO
Certification awarded by BCA
9000)
1) Quality Assurance
These certifications are awarded to firms who have
a management system to control the impact of
their activities, products and services on the
Occupational Health and Safety, Environment,
Quality of end product.

Developers should feel more confident and safer to

work with firms which are awarded these
certifications as they have been certified to comply
with BCA's level of standard.
Workload on hand
2) Workload on hand
We need to take into account of how many projects
the construction firm has on hand. Are they able to
handle the workload and complete our project on
scheduled time?
Experience with
similar project
Petronas Tower Burj Khalifa Taipei
3) Experience with similar projects
We need to know if the firms have any experience
in working with similar projects. For example,
Samsung Construction and Trading, has
constructed three of the tallest buildings in the
world. So if the project is a super high rise building,
we may want to consider Samsung CT as one
more of the more potential firm.
Past Collaboration
4) Past collaboration
If we have worked successfully before in the past,
we wouldn't mind to work together again. We will
know of one another working style and trust each
other more.
Financial Stability
 o Constructed several
landmarks in Singapore eg.
MBS hotel, Marina Costa
Expressway, Singapore
Indoor Stadium
o Local undergoing projects
eg. Downtown line
o Ranked No. 1 in a field
assessment of contractors
carried out by the Singapore
o government in 2012.
Suffered a net loss of 411.4
billion(500million SGD) won in
2012
o Filed request for court
Photo taken during PM Lees lunch with CEO of Saangyong
protection in Feb 2013
o No new projects secured ever
since
 Cost
Labour Cost Material
Cost
6) Cost
Cost is a major factor of consideration as it
maximises the profit of the developer. Cost in
construction usually comprises of two cost, labor
cost and material cost. The cost difference in the
tenders differs mainly in material cost. We have to
select the one with the lowest quotation and yet
conforms the level of requirement the customer
seeks.