VARIABILITY IN HDB SHOP LEASE TENDER BIDS

Abstract

The Housing Development Board (HDB) in its leasing of its commercial facilities, adopts an open competitive tendering system which has been in use by the board for the past thirty years. However like other industry, the HDB shop lease tender system is not perfect. The presence of inefficiencies has resulted in modifications being made to the system. Despite changes made, the core structure of the board's tendering system is still based on an open competitive concept. Recently, there has been a growing concern by retailers on the excessively high tender bids, and high bid variability in the HDB shop lease tenders. This study aims to determine the efficiency of the system by measuring the degree of variability in the tender bids. It also seeks to determine factors that may contribute to the bid variability. The analyses showed that the level of bid variability is comparatively high, and also established that project size and accessibility to Mass Rapid Transit amongst others, are the most influential factors on bid variability.