Preparing for strong growth
Raising productivity is a key focus for the construction industry this year. Government policies and nationwide initiatives underscore an urgent need to digitalise processes and streamline workflows, reducing reliance on skilled and manual labour
The steady demand in both private and public sector projects, combined with a robust pipeline, underscores the critical need to enhance productivity and optimise processes across the supply chain. The significant loss of skilled construction workers exiting Singapore due to the COVID-19 pandemic has further aggravated the existing skilled labour shortage.
Recognising the importance of equitable risk-sharing, a few major programmes have begun integrating payment mechanisms to facilitate cash flow and adopting provisions for material cost fluctuations. Furthermore, there is a growing emphasis on incentivising positive project outcomes, closely aligned with agreed key performance indicators.
Moreover, early contractor involvement has been identified as a crucial factor in driving project success, particularly during the planning and design stages. This approach is particularly beneficial in large-scale and complex programmes, where the contractor’s input can significantly enhance design and logistical planning. Typically, this involvement is structured through an Early Contractor Involvement (ECI) framework during the tender phase, while the Pre-Construction Service Agreement (PCSA) model, which has seen widespread adoption in the UK, may also be considered as an option to foster collaboration during the design phase.
The implementation of the NEC4 contract for construction and engineering projects in Singapore marks a significant milestone in promoting collaborative contracting. Public sector developers, such as Housing and Development Board (HDB), JTC Corporation (JTC), and Land Transport Authority (LTA), are set to pilot the NEC4 contract in upcoming projects. From our experience in supporting clients through similar transitions globally, we emphasise the importance of a structured adoption plan that includes internal stakeholder engagement and robust approach to onboarding contractors in the market. Leveraging our UK and Hong Kong expertise, we offer tailored support and advisory for early adopters of the NEC4 contract and clients exploring this option.
“Construction demand is expected to surpass last year's levels amid adjustments in manpower regulations and rising costs. Looking ahead, it is essential for the Built Environment to embrace and build capabilities in collaborative contracting and improve productivity to address rising construction costs.
This aligns with the BCA's launch of NEC4 contract and enables us at Turner & Townsend to leverage our pioneering involvement in driving collaborative contracting within Singapore’s construction sector positions us to support clients effectively.
Clients can leverage our global expertise, such as the healthcare service delivery model used for major health programmes in the UK, and our capabilities in collaborative contracting to drive efficiencies and increased value across projects that will transform Singapore’s built environment for the better.”
