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Disqualification framework and revised demerit points system for construction sector

From 1 October 2022, MOM will introduce a new harmonised disqualification criteria and enhancements to the demerit point system (DPS).

Disqualification framework

MOM will introduce a new harmonised set of disqualification criteria across all public sector construction tenders. Contractors with poor WSH performance will be temporarily disqualified from participating in the tenders.

How it works

Main contractors and first-level subcontractors will be temporarily disqualified from public sector construction tenders for 3 months following:

  • Entry into MOM’s Business Under Surveillance programme (BUS) which occurs when systemic workplace breaches are uncovered.
    OR
  • Accumulation of 25 demerit points (DPs) or more under MOM’s DPS.

Demerit point system

An enhanced demerit point system will also be introduced, where the threshold for issuing demerit points will be lowered. This means that more demerit points will be issued for WSHA breaches and errant companies with consistently poor WSH performance will reach the penalty thresholds more quickly. After which, they will be debarred from hiring foreign employees for up to 2 years.

Accumulation of points under enhanced DPS

Severity Type of incidents DPs When
Potential harm Composition fine 1 Date of fine
Partial Stop Work Order (SWO) 5 Date of SWO issued
Full Stop Work Order (SWO) 10
Harm Prosecution for Dangerous Occurrences or accidents that led to major injuries or death of one person 25 Date of MOM’s decision to prosecute
Severe harm Prosecution for accidents that led to death of more than one person 50

Debarment from hiring of foreign employees

No. of DPs accumulated within an 18 month period Duration of debarment from hiring of foreign employees
1 to 24 Nil
25 to 49 3 months
50 to 74 6 months
75 to 99 1 year
100 to 124 2 years
125 and above 2 years - renewal not allowed