High fee for BRT tender document ensures only serious parties apply, says IRDA

The Bus Rapid Transit is designed to allow greater mobility in and around Johor Bahru through dedicated bus lanes. (IRDA pic)

PETALING JAYA: The Iskandar Regional Development Authority (IRDA) has defended its decision to charge bidders a non-refundable RM15,000 fee for its transportation project in Johor Bahru, saying it is to ensure that only serious parties apply for the job.

This comes after a company interested in the Bus Rapid Transit (BRT) project criticised IRDA for charging unreasonable fees, as well as for not refunding the money to unsuccessful bidders.

IRDA said the price included costs for preliminary design and studies, technical requirements for consultancy works and a contractual agreement to ensure the document is fit for tender.

“The tender is for the lead consultant with multi-disciplines under their supervision whereas the normal fee of RM2,000 is often for a single discipline,” IRDA told FMT.

“This is also a measure to ensure that only highly capable and serious consultants take part in the tender process and are awarded the contract in order to execute a project of high expectations and standards.”

The BRT project also involves the construction of a special bus lane and the appointment of a lead consultant to carry out supervisory works.

A consultant company had earlier criticised IRDA for imposing more than ten times the normal fee charged to bidders.

“In the construction industry practice, it is normal for consultants to be charged a nominal fee for tender documents and for contractors, the tender participation fee will be refunded to unsuccessful bidders,” it said, adding that a tender document is usually priced between RM1,000 and RM2,000.

“Even in cases where the tender document costs more than RM5,000, the money will usually be refunded to the losing bidder.” - FMT