Adoption of Outcome-based Contracts for Facility Management Services by Town Councils

56 Mr Raj Joshua Thomas asked the Minister for National Development (a) how many Town Councils have adopted outcome-based contracts for facility management services; and (b) whether the Ministry has any plans to encourage more Town Councils to adopt such contracts.

Mr Desmond Lee: Town Councils are autonomous legal entities formed under the Town Councils Act and managed by elected Members of Parliament. As such, they have the autonomy to decide on the management of their operations, including how to prescribe the requirements of contracts for the services they procure and to choose the contracting model that best meets their needs and operating circumstances.

At present, most Town Councils do not adopt outcome-based contracts for facility management (FM) services. The Government will continue to build awareness of outcome-based contracting for FM and other services amongst buyers, including Town Councils. For instance, service buyers can refer to the Building and Construction Authority's Guide on FM Procurement for more information on implementing this contracting model.