HDB to tender shop locations through price-quality method

Quality of tender will be prioritised over price offerings.

Minister for national development Lawrence Wong said that HDB will start tendering shops through the price-quality method.

“Under this approach, the evaluation will not just be based on price but also the quality of the proposal, and that includes the affordability of the food options,” Wong said in a Facebook post.

As an example, FoodTastic coffee shop, tucked in the HDB building in Choa Chu Kang Avenue 1, won the tender to operate in the place even if their rental bid 40% lower than the highest.

“They were awarded the tender because of their affordably-priced food options and the use of technology to boost productivity,” he added. Under the PQM, quality score accounts for 50% of the evaluation, and operators with affordable food options will score higher.

In a parliamentary reply, Wong added that there are presently close to 750 HDB-built coffee shops, of which 70 were completed in the last five years. A further 31 are in the pipeline and will be completed in the next five years.

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