Too much trust is folly in an imperfect world.” “Trust but verify.” “In our mothers we trust” but for everyone else, there is RSGC’s Tender Policy. In last month’s Captain’s Corner, I shared why our Investment Guidelines are a critical safeguard for the Club’s not inconsiderable liquid assets. This month, we turn to something equally important; our Tender Policy. When properly implemented, it is the Club’s primary defence against misjudgment, unfairness, or opacity in procurement decisions. It ensures that spending, especially on largescale projects (and we have a myriad of these coming down the pipeline) and services is done transparently, fairly, and with accountability, delivering value-for-money while supporting the Club’s long-term goals.
The policy applies to all procurements exceeding RM150,000 or with durations longer than one year. It outlines specific procedures for different procurement types: open tenders, closed tenders, direct procurement, quotations, and emergency purchases. For larger contracts exceeding RM250,000, open tender is the default and must be advertised publicly unless the Tender Board (TB) grants a specific exemption, which must be documented and reported to The Committee (TC).
So, what are the built-in safeguards? First, transparency. All procurement activities must be properly recorded, with documents maintained for internal audit. For example, the evaluation of tenders is not an informal chat, it’s a structured process involving written scoring, signatures, and audit trails.
Second, fairness. All bidders are treated equally. Evaluation criteria are developed in advance and applied uniformly, whether we’re sourcing for golf course works, gym equipment, or contract services.
Third, accountability. Evaluation is performed by the Management Tender Committee, comprising senior management and relevant specialists. Their recommendation must pass through the relevant subcommittee, then the TB, and finally be approved by TC.
Fourth, conflict of interest safeguards. Staff involved in tenders must declare any personal connections to bidders. Awarding contracts to family or friends without proper procedure is explicitly prohibited. Confidentiality is also strictly required during evaluation.
Fifth, value-for-money. The policy emphasizes life-cycle costing, factoring in not just price, but longterm utility, quality, maintenance, and sustainability. In line with corporate best practices, ESG considerations are also woven into evaluations.
But what about flexibility? Realworld operations don’t always conform to textbook scenarios. The policy allows for exceptions such as emergency procurements when immediate action is necessary to avoid significant harm or disruption. In such cases, the General Manager can authorise swift action, with a report to TC to follow.
There is also room for direct procurement, but only in narrow, well-justified situations such as when a product is only available from one source or when compatibility with existing systems is crucial.
One notable exception is for the engagement of professional or legal services. These may bypass the tender process but only if all ten members of TC unanimously approve the exemption. That’s a high governance hurdle. TC is made up of a diverse group of professionals with varied backgrounds and strong opinions. Reaching unanimous agreement is intentionally difficult, ensuring that any exception to the rules is supported by thorough scrutiny and consensus.
In short, the Tender Policy is not about bureaucracy for its own sake. It is a framework to protect the Club’s resources, ensure fairness, and build member confidence. Trust remains vital but when it comes to large-scale decisions involving Club funds, it is best paired with structure, documentation, and a healthy dose of scrutiny and perhaps, suspicion.
Raymond Yeoh
Captain
