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Lowest bid, contractor goes bust


Duckduck
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http://www.straitstimes.com/news/opinion/eye-singapore/story/infrastructure-projects-lowest-bid-highest-risk-20150129#xtor=CS1-10

 

"Lowest bid, contractor goes bust, delay in road or rail project - the Government should investigate if these are linked, in the light of the latest stalled project in Braddell"

 

"Take the case of Hexagroup. According to the Accounting and Corporate Regulatory Authority, the company had total assets of $1.26 million and total liabilities of $946,725 as of 2007 (its last declaration to Acra). Hence its net worth at the time could be interpreted to be around $300,000 - or just 1 per cent of the value of its stalled Braddell Road project.

It is possible that Hexagroup's financials had improved dramatically by the time it secured the project in 2012, but the LTA refused to shed more light on how the seemingly modest company could have clinched such a sizeable project.

"We have nothing more to add beyond what we have already shared with you," a spokesman said in response to a request by The Straits Times for an interview regarding the case.

In fact, the firm was authorised by the Building and Construction Authority to bid for projects of up to $40 million in value."

 

potential LTA saga? hehehe

 

the recent thread abt road digging problems? same problem of awarding work to cheapest contractor then they dont do good job then keep digging n digging but never gets fixed?

Edited by Duckduck
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What's wrong? If dealing with a $2 company is not an issues, this company should not raise a concern.. maybe it's after the bidding that causes it to fall....hehehe...

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Another zhu ying tai and liang san poh story? LTA was under the impression that the bidder was financially bigger company?

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Another zhu ying tai and liang san poh story? LTA was under the impression that the bidder was financially bigger company?

Well if they can allow a $2 company to handle town council business, they WILL allow any damm company for any tender.

 

So, is there really some checks and balances of auditing vendors????!!

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Govt shd reconsider to award business to the 3rd lowest bidder instead of the lowest.

Govt shd also have their own cost calculations to gauge who are underbidding the project.

Edited by Tigerwoods
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Another zhu ying tai and liang san poh story? LTA was under the impression that the bidder was financially bigger company?

tried googling this Hexagroup...not much info....except their website has more listings for other contractors. Found a jobs ad though....person to contact is a Director- Lim Hong Leong.post-60339-0-03571100-1422671950_thumb.jpg Edited by Eviilusion
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It seems like after the yingyang case(ica granting pr to him), columbarium case with hdb, our gahmet get under the wrong impression easily. They play the liang sang poh role readily.

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It seems like after the yingyang case(ica granting pr to him), columbarium case with hdb, our gahmet get under the wrong impression easily. They play the liang sang poh role readily.

What do you expect when they only read statistics crunch numbers?
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They will need to look at the model and modify..... At the moment, to answer to auditor, they likely need to get the lowest quote.... But certain thing, u pay peanut, u don't even get monkey... Just their dropping.....

 

They need to get the ops people involve and view at it case by case..... If the ops know that the lowest bidder got a long list of problems, the mgt cannot die die go for lowest quote just for audit sake..... The farking auditor only look at numbers..... But in reality, numbers alone don't tell the whole story....

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They have sh1t for brains. What do they know?

 

 

 

Ohhhhhh nooooo. They know a lot MORE than we thought (or think) they know. They most smartest.

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In this danmmed industry where lowest bidder for contracts usually gets the job and highest bidder always gets the job for building land.

 

The job of these so called gahment seems too easy and complacant.

 

And the loopholes where companies can just go bust and directors are almost certain to go scott free and wont go bankrupt.

 

And we have damn pussies comprain why debt collectors r allowed to go to foodcourt to harass storeowners for their monies.

In this danmmed industry where lowest bidder for contracts usually gets the job and highest bidder always gets the job for building land.

 

The job of these so called gahment seems too easy and complacant.

 

And the loopholes where companies can just go bust and directors are almost certain to go scott free and wont go bankrupt.

 

And we have damn pussies comprain why debt collectors r allowed to go to foodcourt to harass storeowners for their monies.

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In this danmmed industry where lowest bidder for contracts usually gets the job and highest bidder always gets the job for building land.

 

The job of these so called gahment seems too easy and complacant.

 

And the loopholes where companies can just go bust and directors are almost certain to go scott free and wont go bankrupt.

 

And we have damn pussies comprain why debt collectors r allowed to go to foodcourt to harass storeowners for their monies.

 

Why should directors - who have carried out their fiduciary responsibilities dutifully - be held liable if a company goes bust due to reasons beyond their control (economy, competition, lack of jobs)?

 

Many contractors, because of varied reasons such as competition and clients squeezing margins, struggle to stay afloat by bidding below cost. They have workers to pay, equipment to maintain and loans to service.

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