Ministry of National Dev Repair and maintenance

As our HDB estates and flats get older, they will need to be repaired, maintained and replaced.

We need to create a new way of handling the work at low cost.

The current practice of tendering is wasteful and costly. It may end up with high cost and shoddy work in many cases.

What is the alternative.

We can form a state owned company to carry out the work on a cost plus model. It is like in the old days where the HDB was able to build the flats at low cost through planning and economy of scale.

This company can order the required materials in bulk at low cost. They can also train local workers to do the work and provide continuity of employment at fair wages.

Owners who have special requirements can engage private contractors. Those who are happy with basic work done at low cost can engage this company that operates on a cost plus model.

There is a need to ensure that this company operates efficiently and do not work in a corrupt manner. This can be controlled through proper supervision. This company will operate through several operating divisions. The performance of the divisions can be compared and identify inefficiency.

The operating principle is to produce an acceptable quality of work at a low cost. It is not to generate the most profit to provide bonuses to managers or owners.

I believe that such a model can work. We can give it a try. But we have to put in the time and effort to make sure that it is properly managed.

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