07 Sharing Singapore Exp[1]

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Development of Design & Build (D&B) Projects in SingaporeDevelopment of Design & Build (D&B) Projects in Singapore

BackgroundBackground

Various Form of D&B PracticesVarious Form of D&B Practices

D&B Standard Conditions of ContractD&B Standard Conditions of Contract

D&B TrendD&B Trend

D&B Practices by Public AgencyD&B Practices by Public Agency

Feedback by Contractor on D&B ProjectFeedback by Contractor on D&B Project

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Construction 21 (C21) ReportConstruction 21 (C21) Report

D&B promotes the Strategic Thrust 4 D&B promotes the Strategic Thrust 4 –– An Integrated Approach to An Integrated Approach toConstruction under the Construction 21 report.Construction under the Construction 21 report.

D&B offers many advantages such as single point of responsibility inD&B offers many advantages such as single point of responsibility interms of client-builder relationship, early integration of M&E service,terms of client-builder relationship, early integration of M&E service,efficient design, shorter project duration, better quality & lower overallefficient design, shorter project duration, better quality & lower overallproject costs.project costs.

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Construction 21 (C21) ReportConstruction 21 (C21) Report

QuoteQuote

““ Promoting D&BPromoting D&B

BCA has made attempts to promote D&B. There have been great achievements in D&B in the public Sector, notably inBCA has made attempts to promote D&B. There have been great achievements in D&B in the public Sector, notably inHDB projects, where D&B projects make up 20% of HDBHDB projects, where D&B projects make up 20% of HDB’’s projects. The Land and Estates Organization (LEO) hass projects. The Land and Estates Organization (LEO) hasalso indicated that it was prepared to place the majority of its projects under D&B construction. However, there is aalso indicated that it was prepared to place the majority of its projects under D&B construction. However, there is aneed to extend D&B to the private sector, which currently has a low level of D&B (only 8% of the projects). The C21need to extend D&B to the private sector, which currently has a low level of D&B (only 8% of the projects). The C21Committee recommends that BCA continue to promote D&B to private sector developersCommittee recommends that BCA continue to promote D&B to private sector developers..

Case 1: Centennial TowerCase 1: Centennial TowerMilleniaMillenia Tower (42 floors) and Centennial Tower (37 floors) were both constructed by Tower (42 floors) and Centennial Tower (37 floors) were both constructed by DragagesDragages Et Et TravauxTravaux Publics Publics(Singapore) Pte. Both buildings were built 2 years apart, and have a floor area of about 2,000m2 each. (Singapore) Pte. Both buildings were built 2 years apart, and have a floor area of about 2,000m2 each. MilleniaMilleniaTower was initially designed by the ownerTower was initially designed by the owner’’s team but modified by the contractor, whereas Centennial Tower was as team but modified by the contractor, whereas Centennial Tower was aD&B project (by the private sector). D&B project (by the private sector). MilleniaMillenia Tower was built in 32 months with 6 days per floor for the structure, Tower was built in 32 months with 6 days per floor for the structure,whereas Centennial was built in only 23 months with 4 days per floor for the structure, 30% faster.whereas Centennial was built in only 23 months with 4 days per floor for the structure, 30% faster.

Case 2: A comparison of D&B Levels with Other CountriesCase 2: A comparison of D&B Levels with Other CountriesIn Japan, D&B usage is prevalent in the private sector, but not for the public sector. Total, D&B projects in JapanIn Japan, D&B usage is prevalent in the private sector, but not for the public sector. Total, D&B projects in Japantoday stands at 50% mainly for the private sector. For the case of Australia, D&B, otherwise known as Design-and-today stands at 50% mainly for the private sector. For the case of Australia, D&B, otherwise known as Design-and-Construct, stands at more than 60% for both private and public sectors in 1997. For Singapore, the D&B level in 1998Construct, stands at more than 60% for both private and public sectors in 1997. For Singapore, the D&B level in 1998is 13.7%. This is driven largely by the public sector is 13.7%. This is driven largely by the public sector –– approximately 75% of D&B projects are public sector projects. approximately 75% of D&B projects are public sector projects.””

UnquoteUnquote

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BCA had successfully promoted D&B to private sector. As at the yearBCA had successfully promoted D&B to private sector. As at the year2004, the percentage of D&B building project in the private sector had2004, the percentage of D&B building project in the private sector hadincreased to 35.8%.increased to 35.8%.

The D&B building project in public sector has decreased due to theThe D&B building project in public sector has decreased due to theshrinkage of projects in the public sector.shrinkage of projects in the public sector.

3 common forms :3 common forms :a) Traditional Design & Builda) Traditional Design & Buildb) Develop & Constructb) Develop & Constructc) Consultant Novation.c) Consultant Novation.

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Various Form of D&B PracticesVarious Form of D&B Practices

Traditional Design & BuildTraditional Design & Build

Owner & in-house or ext consultants plans & develop projectOwner & in-house or ext consultants plans & develop projectrequirements, design brief such as design requirements,requirements, design brief such as design requirements,specifications & evaluation criteriaspecifications & evaluation criteria

Owner will invite contractors for pre-qualification & pre-qualifyOwner will invite contractors for pre-qualification & pre-qualifycontractorscontractors

Contractors will submit proposed outline design & price duringContractors will submit proposed outline design & price duringtendertender

Successful contractor will develop design & apply for all necessarySuccessful contractor will develop design & apply for all necessarypermits/approvals & complete with construction workspermits/approvals & complete with construction works

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Various Form of D&B Practices (ContVarious Form of D&B Practices (Cont’’d)d)

Develop & Construct (or Design Development & Construction)Develop & Construct (or Design Development & Construction)

Owner & in-house or ext consultants plans & develop projectOwner & in-house or ext consultants plans & develop projectrequirements, concept design, design brief such as the concept &requirements, concept design, design brief such as the concept &schematic design, specifications & evaluation criteriaschematic design, specifications & evaluation criteria


Contractors will submit development of design and price duringContractors will submit development of design and price duringtendertender

Successful contractor will develop design & apply for all necessarySuccessful contractor will develop design & apply for all necessarypermits/approvals and complete with construction workspermits/approvals and complete with construction works

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Various Form of D&B Practices (ContVarious Form of D&B Practices (Cont’’d)d)

Consultant Novation method:Consultant Novation method:

Owner & in-house or ext consultants plans & develop projectOwner & in-house or ext consultants plans & develop projectrequirements, prepare design brief such as the design requirements,requirements, prepare design brief such as the design requirements,specifications & evaluation criteriaspecifications & evaluation criteria


Contractors will submit proposed outline design & price duringContractors will submit proposed outline design & price duringtendertender

OwnerOwner’’s consultant will be novated to successful contractors consultant will be novated to successful contractor

Successful contractor will develop design & apply for all necessarySuccessful contractor will develop design & apply for all necessarypermits/approvals & complete with construction workspermits/approvals & complete with construction works

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Development of Design & Development of Design & BuildBuild (D&B) Projects in Singapore (D&B) Projects in Singapore

D&B Standard Conditions of ContractD&B Standard Conditions of Contract

Before year 2001, no standard form available.Before year 2001, no standard form available.

Private Sector - Contract adopted varies from project to project.Private Sector - Contract adopted varies from project to project. - - Common form used :Common form used :

a) FIDIC (Orange Book) a) FIDIC (Orange Book) b) English JCT 81 D&B contract forms. b) English JCT 81 D&B contract forms.

Public Sector - Public Sector - ““Public Sector Standard Conditions of Contract forPublic Sector Standard Conditions of Contract for Construction Works Construction Works””

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D&B Standard Conditions of Contract (ContD&B Standard Conditions of Contract (Cont’’d)d)

From year 2001:From year 2001:

A) Public SectorA) Public Sector ““Public Sector Standard Conditions of Contract for Design and BuildPublic Sector Standard Conditions of Contract for Design and Build

(2001), 1(2001), 1stst ed. ed.”” in May 2001 by Building and Construction Authority in May 2001 by Building and Construction Authority

Latest edition, Latest edition, ieie. 3. 3rdrd edition was published in Mar 2005 edition was published in Mar 2005

B) Private SectorB) Private Sector ““REDAS Design and Build Conditions of ContractREDAS Design and Build Conditions of Contract”” in August 2001 by in August 2001 by

Real Estate DevelopersReal Estate Developers’’ Association of Singapore Association of Singapore

Other Related D&B DevelopmentOther Related D&B Development

The Singapore Contractors Association Ltd published: The Singapore Contractors Association Ltd published: Standard Agreement for Appointment of Consultants in year 1999.Standard Agreement for Appointment of Consultants in year 1999. Latest edition, Latest edition, ieie. 2. 2ndnd ed was published in year 2004 ed was published in year 2004

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Development of Design & Build (D&B)Development of Design & Build (D&B)Projects in SingaporeProjects in Singapore

5.1 Design & Build Trend5.1 Design & Build TrendVolume of D&B Projects Awarded in Singapore (excluding Engineering Procurement & Construction (EPC) Projects)Volume of D&B Projects Awarded in Singapore (excluding Engineering Procurement & Construction (EPC) Projects)

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5.4 Design & Build Trend5.4 Design & Build TrendPercentage of D&B Projects Awarded in Singapore (excluding Engineering Procurement & Construction (EPC) Projects)Percentage of D&B Projects Awarded in Singapore (excluding Engineering Procurement & Construction (EPC) Projects)

The percentage figures are computed using the volume of D&B projects awarded and the total volume of projectsawarded.

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D&B Practices by Public AgencyD&B Practices by Public Agency

Housing & Development Board (HDB) Housing & Development Board (HDB) –– Public Housing Public Housing

A.1A.1 IntroductionIntroduction•• D&B scheme for public housing launched in 1991D&B scheme for public housing launched in 1991•• Objective : To have a wider choice and more varied design atObjective : To have a wider choice and more varied design at

affordable price affordable price•• Tender Document:Tender Document:

–– Design Brief:Design Brief:oo scope of worksscope of worksoo planning & design parameters - plot ratio, permissible planning & design parameters - plot ratio, permissible

building ht, etc. building ht, etc.oo Technical requirements - Min HDB std, use of precast panel,Technical requirements - Min HDB std, use of precast panel,

–– Cost limit in terms of S$/m2Cost limit in terms of S$/m2

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D&B Practices by Public Agency (ContD&B Practices by Public Agency (Cont’’d)d)

Housing & Development Board (HDB) Housing & Development Board (HDB) –– Public Housing Public Housing

A.2A.2 PhasesPhasesI. Prequalification:I. Prequalification:

–– Construction companyConstruction companyoo registered with BCA (BCA-CRS system)registered with BCA (BCA-CRS system)oo gdgd track record in high rise bldg construction track record in high rise bldg construction

–– ConsultantsConsultantsoo registered architects & Professional Engineersregistered architects & Professional Engineersoo experience in designing & supervising high rise residential / commercialexperience in designing & supervising high rise residential / commercial

projectsprojects

–– 5 or 6 teams selected thru balloting from among pool of pre-qualified5 or 6 teams selected thru balloting from among pool of pre-qualifiedteams are invited to tenderteams are invited to tender

II. Tendering Period is about five months II. Tendering Period is about five months

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Housing & Development Board (HDB) Housing & Development Board (HDB) –– Public Housing (Cont Public Housing (Cont’’d)d)

A.2A.2 Phases (ContPhases (Cont’’d)d)III. Tender Evaluation- 3 stages:III. Tender Evaluation- 3 stages:

1) Evaluation of compliance with HDB1) Evaluation of compliance with HDB’’s specifications specification2) Selection of good design proposals2) Selection of good design proposals3) Financial Evaluation of Shortlisted Design Proposals3) Financial Evaluation of Shortlisted Design Proposals

IV. Tender Award IV. Tender Award –– HDB enter direct contract with: HDB enter direct contract with:oo successful contractorsuccessful contractoroo successful Architect & Engineer separately to assist SO (HDBsuccessful Architect & Engineer separately to assist SO (HDB’’ss

appointed Project Manager) in supervising of the work & to performappointed Project Manager) in supervising of the work & to performthe role of Qualified person under the Building Control Actthe role of Qualified person under the Building Control Act

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Housing & Development Board (HDB) Housing & Development Board (HDB) –– Public Housing (Cont Public Housing (Cont’’d)d)

A.3A.3 FindingsFindings Feedback by main contractor (Contract sum approx S$76Feedback by main contractor (Contract sum approx S$76

million):million):oo Problem:Problem:

Cost limit given is equivalent to the minimum std of HDBCost limit given is equivalent to the minimum std of HDB’’s in-houses in-housedesign. Contractor not able to provide more innovative or creativedesign. Contractor not able to provide more innovative or creativedesign due to the cost constraint. Mostly follow HDBdesign due to the cost constraint. Mostly follow HDB’’s design.s design.

HDB has not been using the D&B method of procurement sinceHDB has not been using the D&B method of procurement sincethe year 2000.the year 2000.oo Reason:Reason:

not much of varied design being achievednot much of varied design being achieved.. non-profitable to contractor & no tender cost reimbursement for unsuccessfulnon-profitable to contractor & no tender cost reimbursement for unsuccessful

tenderer, hencetenderer, hence response to tender is poorresponse to tender is poor

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Defence Science & Technology Agency (DSTA)Defence Science & Technology Agency (DSTA)

B.1 B.1 IntroductionIntroduction

Adopted the D&B approach in 1995Adopted the D&B approach in 1995

11stst D&B contract was awarded in 1996 D&B contract was awarded in 1996

Contract value ranging from $15 millions to S$250 millions was subsequentlyContract value ranging from $15 millions to S$250 millions was subsequentlyawardedawarded

B.2B.2 Findings Findings

Unit rate lower than conventional Design-bid-Build.Unit rate lower than conventional Design-bid-Build. Reason: Consultants & Contractors plan together & implement cost effective solution Reason: Consultants & Contractors plan together & implement cost effective solution from the tender stage from the tender stage

BuildableBuildable Score has also increased with the D&B approach. Score has also increased with the D&B approach.

Variation works & expenditure of contingency sum is kept to minimumVariation works & expenditure of contingency sum is kept to minimum

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Feedback by Contractors on D& B for Public & Private Sector Projects:Feedback by Contractors on D& B for Public & Private Sector Projects:

A.1A.1 Examples of some of the projects being awarded:Examples of some of the projects being awarded: StregisStregis Hotel & Residential, S$296m, Nov 04 Hotel & Residential, S$296m, Nov 04 –– July 07 July 07 Marina Boulevard , S$116m, Jan 02 Marina Boulevard , S$116m, Jan 02 –– Jan 04 Jan 04 Golden Villa at AMK, S$31.88m, Apr 01 Golden Villa at AMK, S$31.88m, Apr 01 –– July 04 July 04 West Wood Secondary School, S$15.9m, Jun 99 West Wood Secondary School, S$15.9m, Jun 99 –– Dec 2000 Dec 2000 Orchard Park Secondary School, S$23.57m, Jan 98 Orchard Park Secondary School, S$23.57m, Jan 98 –– July 99 July 99

A.2A.2 D&B form used in the above projects: Consultant Novation methodD&B form used in the above projects: Consultant Novation method

A.3A.3 Benefits:Benefits: Time saving because same group of consultants worked on the preliminaryTime saving because same group of consultants worked on the preliminary

concept & hence able to develop the design fast.concept & hence able to develop the design fast. Preempt certain cost whether is within or outside the budget, hence have a betterPreempt certain cost whether is within or outside the budget, hence have a better

feel of the costingfeel of the costing

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Feedback by Contractors on D& B for Public & Private Sector ProjectsFeedback by Contractors on D& B for Public & Private Sector Projects(Cont(Cont’’d):d):

A.4 Downside:A.4 Downside:

Dispute between consultants and contractors on their contracts condition in termDispute between consultants and contractors on their contracts condition in termof scope of work, fee, schedule of payment as the owner has earlier already madeof scope of work, fee, schedule of payment as the owner has earlier already madesome agreement with the consultantssome agreement with the consultants

Design brief and employerDesign brief and employer’’s requirement have to be clear especially the definitions requirement have to be clear especially the definitionof GFA, sellable area as it is a common dispute. This will affect the contract sumof GFA, sellable area as it is a common dispute. This will affect the contract sumand the fee of the consultantand the fee of the consultant

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B.1B.1 How contractors would like clientsHow contractors would like clients’’ requirements to be specified: requirements to be specified:

ClientClient’’s requirements requirement specific and avoid ambiguityspecific and avoid ambiguity not too detailed and restrictivenot too detailed and restrictive Eg. live load for intended usage, min concrete grades, Eg. live load for intended usage, min concrete grades, buildablebuildable score, etc but not score, etc but not

the restriction of structure systemthe restriction of structure system

SpecificationSpecification Material & workmanship spec of all commonly used construction materials &Material & workmanship spec of all commonly used construction materials &

methods must be givenmethods must be given For more specialize tender proposal, tenderer must be requested to submit spec ofFor more specialize tender proposal, tenderer must be requested to submit spec of

the adopted material or system for proper evaluationthe adopted material or system for proper evaluation More detailed spec such as country of origin or shortlisted brand for items withMore detailed spec such as country of origin or shortlisted brand for items with

large variation in prices (eg. curtain wall, a/c system) should be givenlarge variation in prices (eg. curtain wall, a/c system) should be given

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B.1B.1 How contractors would like clientsHow contractors would like clients’’ requirements to be specified requirements to be specified (Cont(Cont’’d):d):

Variant of D&B - Develop and ConstructVariant of D&B - Develop and Construct Too restrictive to tap the full benefit of D&B.Too restrictive to tap the full benefit of D&B. Eg. column positions are almost fixed. Any change may require major revision orEg. column positions are almost fixed. Any change may require major revision or

cause non-compliance such as reducing carpark lots. Fixed column position maycause non-compliance such as reducing carpark lots. Fixed column position mayeliminate certain types of structural system such as precast being adoptedeliminate certain types of structural system such as precast being adopted

Tender QueriesTender Queries Good channel for clarification of ambiguity and conflict of clientGood channel for clarification of ambiguity and conflict of client’’s requirements requirement If effectively carried out, contractorIf effectively carried out, contractor’’s tender risk will reduce, tender price lowereds tender risk will reduce, tender price lowered

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B.1B.1 How contractors would like clientsHow contractors would like clients’’ requirements to be specified requirements to be specified (Cont(Cont’’d):d):

Clear Assessment CriteriaClear Assessment Criteria C&S and M&E assessment criteria is not so complicatedC&S and M&E assessment criteria is not so complicated Architectural aspect such as aesthetics is subjectiveArchitectural aspect such as aesthetics is subjective Assessment of efficiency in floor layout & masterplanning can be accuratelyAssessment of efficiency in floor layout & masterplanning can be accurately

determineddetermined Helpful if the assessment system be made transparent at the onset of the tenderHelpful if the assessment system be made transparent at the onset of the tender

Cost of TenderingCost of Tendering D&B tenders are costly affair for contractorsD&B tenders are costly affair for contractors Client to ensure cost of tender is minimizeClient to ensure cost of tender is minimize Eg. 2 stage tendering schemes adopted by DSTAEg. 2 stage tendering schemes adopted by DSTA Such measures help in reducing costs to the industry as a whole and will attractSuch measures help in reducing costs to the industry as a whole and will attract

high quality D&B proposalshigh quality D&B proposals

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END OF PRSENTATIONEND OF PRSENTATION

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07 Sharing Singapore Exp[1]