Construction Productivity in Singapore. Changing the Way We Build Opening Address 22 May 2017

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1 Construction Productivity in Singapore allow SPF and SCDF to notify BCA of incidents through the EMED incident mobile App during testing period Changing the Way We Build Opening Address 22 May 2017 Dr. John Keung CEO, Building and Construction Authority 1

2 Singapore, an Island City State Land Area 720 km 2 Population 5.6 million GDP per Capita S$73,000

3 Built Environment (BE) Sector and Nation Building Marina Bay area (Financial District) 1950s 1970s 2000s and beyond Public Housing

4 Built Environment (BE) Sector and Nation Building Seaport 1950s 1970s 2000s and beyond Changi Airport

5 Pre-2010: State of Construction Industry Foreign workers growth in tandem with construction output as sector is labour intensive Foreign Rank & File Workers vs Construction Output Workforce Strength Inexperienced Workforce > 360,000 workers^ Approx. 70% are foreign ^ as of % 87% Aus, UK & US 49% 51% Singapore 4 years < 4 years Source : Restructuring the Singapore Built Environment to Achieve Higher Productivity, Boston Consulting Group

6 Pre-2010: State of Construction Industry Value Added Productivity Growth for Construction Industries D Design (Hardcopy) Stagnant Singapore Stagnating Value Added Productivity Low site productivity of m 2 per manday (as of 2009) Infancy in Digital Engineering Application

7 National Construction Productivity (US$) Pre-2010: State of Construction Industry Raising Productivity while Keeping Construction Cost Competitive 60,000 50,000 National Construction Productivity vs Unit Construction Cost in Major Cities Japan 40,000 Australia (Various major cities) USA UK 30,000 20,000 Korea Singapore Hong Kong 10,000 Malaysia Thailand Philippines ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Unit Construction Cost in Major Cities (US$/m2) Source : National construction productivity were derived by MTI for the Economics Strategies Committee report. Unit Construction Costs in major cities were published by Landon & Seah Singapore Pte Ltd in their Construction Cost Handbook

8 What Defines the Productivity Problem? Dominance of Low Cost and Low Skilled Workers Low Construction Wages Cost ($) $$$ Productive Technology (High Cost) High Substitution Cost $ Manual Labour (Low Cost) Average Weekly Wages (USD) Source : Boston Consulting Group s Average Weekly Wages chart cited in its 2014 Benchmarking report on Restructuring the Singapore Built Environment to Achieve Higher Productivity; )

9 What Defines the Productivity Problem? Silo Mentality in Construction Value Chain Limited flow or exchange of information along value chain Unproductive and costly reworks, inefficient building maintenance

10 1 How Did We Address the Productivity Problem? Raise Manpower Cost to Drive Technology Substitution Quota control Man-Year Entitlement (MYE) Quota + Price mechanism Foreign Worker Levy CONSTRUCTION WORKS CONTRACT $100m MYE MYE MYE MYE MYE MYE MYE MYE MYE Man-year allocated to Main Contractors based on their project contract value $230 $180 Jul- 11 $350 $250 Jul- 12 $450 $550 $600 $700 $300 $300 $300 $300 Jul- 13 Jul- 14 R1 (Higher Skilled) Jul- 15 Jul- 16 Note: Currency in SGD

11 Progressive Enhancements 2 How Did We Address the Productivity Problem? Set Minimum Standard through the Buildability Framework Upstream Design Stage Minimum Buildable Design Score ( Apply to Architects Engineers ) Downstream Construction Stage Minimum Constructability Score (Apply to Builders) Buildability The extent to which a building design facilitates ease of construction Constructability The extent to which labour-efficient technologies and methods are adopted downstream during construction

12 How Did We Address the Productivity Problem? 3 Incentivise Private Sector to be 1 st Movers Capability Building Workforce Training and Upgrading (WTU) Fund Funding support of training courses related to productivity improvement Enhanced BCA-Industry Built Environment Scholarship / Sponsorship Build up PMET manpower capabilities by attracting new entrants into the industry S$800 million Construction Productivity and Capability Fund (CPCF) Building Information Modelling (BIM) Fund Enhance BIM integration and collaboration through funding support Integration of Value Chain Technology Adoption Mechanisation Credit (MechC) Scheme Encourage builders to mechanise manual works and reduce labour reliance by con-funding equipment purchase and lease Productivity Improvement Projects (PIP) Encourage technology adoption and process re-engineering through project co-funding

13 4 How Did We Address the Productivity Problem? Drive BIM Adoption through Regulation to Level Up Industry 2010 Voluntary BIM submission 2013 Mandatory BIM submission for new building projects > 20,000 m and beyond Mandatory BIM submission for new building projects > 5,000 m 2

14 5 How Did We Address the Productivity Problem? Driving Productivity through Public Sector Procurement To achieve 25% to 30% productivity improvement from 2010 levels for all new projects Making productivity improvement as KPI Identify pilot projects Adopt game-changing technologies *The agencies above constitute >70% of total public sector building and civil engineering works

15 5 How Did We Address the Productivity Problem? Driving Productivity through Public Sector Procurement Quality Price / Fee Productivity Tender Quality Fee Method (QFM) (procurement of consultancy services) Increment in Productivity weightage: Price Quality Method (PQM) (procurement of construction services) Increment in Productivity weightage: 9% - 12% 20% 3% - 6% 10%

16 Associate Level Professional Level How Did We Address the Productivity Problem? 6 Nurture a Pipeline of Building Professionals Executive Programmes Academic Programmes Specialist Cert. Programmes Executive Development Programme Postgraduate Degree Specialist Certificates Stanford-BCA Advanced Management Program: VDC Leadership Enhancing Construction Productivity & Management (Kyoto University) Seminars Workshop on Game-Changing Technologies (Build Smart Conference) BCA-IFMA FM Conference Master in International Construction Management with major in Construction Productivity (University of Florida, USA) Degree Bachelor of Construction Management (Building) (University of Newcastle, Australia) PBU, MET & PPVC courses VDC courses / workshops Prefabricating our Future (PBU) Workshop Certification Course in BIM Management BIM Modelling courses BIM Planning Specialist Diploma S. Diploma & Advanced Cert. in Construction Productivity S. Diploma in DfMA S. Diploma in BIM; S. Diploma in VDC S. Diploma in Lean Construction Diploma Diploma in Construction IT

17 6 How Did We Address the Productivity Problem? Nurture a Pipeline of Building Professionals Build Capabilities Scholarships & Sponsorships at All Levels >2,500 students benefitted

18 m 2 per manday Encouraging Progress Made Productivity Target: Annual average of 2-3% productivity improvement by Year-on-Year Improvement in Site Productivity (building works) % % % % % % 2.0% 10% cumulative improvement since Site productivity is defined as the floor area completed per manday

19 Encouraging Progress Made Improved Workforce Profile % Higher Skilled R1 Workers 40% % Higher Skilled R1 Workers 20% 2% Ratio of Higher Skilled R1 Workers in the Industry

20 No. of Firms % 36% 14% Encouraging Progress Made Increased Adoption of BIM across Construction Value Chain Types of BIM Adoption in Singapore 17% 25% 58% 15% 50% 35% 14% 33% 53% Larger Larger Consultants Smaller Smaller Consultants Larger Larger Contractors Smaller Smaller Contractors Consultants Consultants Contractors Contractors Adopted Collaborative BIM & VDC Adopted Basic BIM Have not adopted BIM Note: Basic BIM refers to BIM adoption at the firm level; Collaborative BIM refers to BIM adoption beyond firm level Note: Classification of firm sizes are done according to Singapore s public sector procurement framework and BCA s Contractors Registry System (CRS)

21 Sustain the Momentum

22 Riding the Challenges to Transform the Sector Changing the Way We Build Design for Manufacturing (off-site and automation) and Assembly (on-site) Moving work offsite will improve productivity in 3 ways Controlled offsite environment Scope for automation of offsite work Scope for offshoring of offsite work

23 Riding the Challenges to Transform the Sector Benefits of DfMA For the industry For the public Greater automation in factory Less dust To achieve the target Faster of construction 40% adoption rate for DfMA technologies by 2020 Less noise Conducive Working Environment Fewer delivery trips Less workers on site High quality Moving towards a more productive construction sector, while reducing disamenities to the public

24 Structural Riding the Challenges to Transform the Sector Continuum of Prefabrication and DfMA Components: Incremental Improvement Prefab Components Integrated Assemblies: Game-Changing Improvement Advanced Prefab Systems Integrated Sub-assemblies Fully Integrated Assemblies Precast Structural Steel / Advanced Precast / Hybrid Mass Engineered Timber (MET) / Hybrid PPVC 40% 10% 20% 35% Manpower Savings [Project Level] MEP Architectural On-site Dry Applied Finishes Dryrun Engineered timber floor Flexible Water Pipe/ Sprinkler Dropper 30% Prefinished Surfaces Prefab Ceiling Module/ Prefab Plant Prefab Plant PBUs Prefab MEP Deck Prefab Module with Platform/ Catwalk PPVC 45% 60% Manpower Savings [Trade Level] PPVC 70%

25 Riding the Challenges to Transform the Sector Adoption of Steel PPVC at Crowne Plaza Changi Airport Hotel

26 Riding the Challenges to Transform the Sector Adoption of Steel PPVC at Crowne Plaza Changi Airport Hotel

27 Riding the Challenges to Transform the Sector Adoption of Steel PPVC at Crowne Plaza Changi Airport Hotel Offsite Fabrication & Fitting out Onsite Assembly

28 Riding the Challenges to Transform the Sector Use of Structural Steel Continuum of Prefabrication (Steel) Components Advanced Prefab Systems Fully Integrated Components Prefabricated steel cages Up to 40% manpower savings at trade level Structural steel/ hybrid construction Up to 20% manpower savings at project level Steel PPVC Up to 40% manpower savings at project level

29 Riding the Challenges to Transform the Sector Enable More Extensive Use of Structural Steel Performance based approach to Omit Fire Protection Works for Secondary Beams using New Design Guide for Fire Safety Design Omit fire protection on secondary beams without jeopardising building safety 30% to 40% reduction in fire protection works SCDF issued circular allowing the use of the design guide in Aug 2016

30 On-going Initiatives Past Initiatives Riding the Challenges to Transform the Sector Capability Building on Use of Steel BC1 Allow use of alternative structural steel other than EN steel BC4 Allow use of high grade structural steel for concrete filled tubular structures Manufacturer Accreditation Scheme to ensure Quality of PPVC production BC1 Design Guide BC4 Design Guide Manufacturer Accreditation Scheme SS560 Develop new product specification for high grade 600 rebar for industry adoption New guidebook for buildable steel connections BC4 v2.0 to include encased composite columns using high grade materials High grade 600 rebar BC4 v2.0 Guidebook for buildable steel connection

31 Concluding Remarks A Robust DfMA Ecosystem is the KEY! Creating sufficient lead demand quickly is critical for sustainable DfMA adoption CREATE SUSTAINED DEMAND BUILD SUPPLY CAPACITY & CAPABILITIES (e.g. developers, consultants, contractors, suppliers, logistics) RESOLVE REGULATORY HURDLES Creating Economies of Scale & Competition Lower Cost for DfMA Technology Adoption

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