.

MEDIA RELEASE

BCA TO BOOST PRODUCTIVITY

BUILDABILITY AND CONSTRUCTABILITY REQUIREMENTS

& ENHANCED INCENTIVES

Singapore, 11 March 2013 –

construction productivity and quality

include:

a) Raising minimum buildability and constructability

new projects to accelerate the adoption of more buildable designs and

productive construction methods

b) Enhancing the Construction Productivity and Capabilit

boost incentives and support for companies

kick-start their productivity journey

Raising minimum buildability and constructability re

2. The Building and Constr

buildability and constructability score requirements for all

each in July 2013 and another

3. This is aimed at improving

chain starting from planning and

point increase in the buildability score will yield

10% to 15%.

4. With higher buildability requirements,

the construction value chain will have

and ensure that building designs are easier

means that building designs will have to

wider adoption of standard components to allow for ease of construction

example, designs involving the

more labour-intensive, would be

requirements.

PRODUCTIVITY THROUGH TIGHTER

Y AND CONSTRUCTABILITY REQUIREMENTS

INCENTIVES

– BCA introduced new measures to further spearhead

quality growth in the built environment sector

minimum buildability and constructability requirements

to accelerate the adoption of more buildable designs and

productive construction methods (refer to Annex A)

the Construction Productivity and Capability Fund (CPCF)

boost incentives and support for companies, especially the smaller firms,

start their productivity journey (refer to Annexes B and C)

minimum buildability and constructability requirements

The Building and Construction Authority (BCA) is set to raise the minimum

ility score requirements for all new projects by 3 points

and another 2 points in July 2014.

is aimed at improving productivity across the entire construction

chain starting from planning and design to construction. Based on past projects

point increase in the buildability score will yield manpower savings of approxim

With higher buildability requirements, architects and engineers upstream

will have to consider the productivity requirement

ensure that building designs are easier and more efficient to construct.

designs will have to include more productive technologies and

standard components to allow for ease of construction.

the use of brickwalls and plastering finishes which

intensive, would be strongly discouraged under the buildability

HROUGH TIGHTER

Y AND CONSTRUCTABILITY REQUIREMENTS

ew measures to further spearhead

sector. These

requirements for all

to accelerate the adoption of more buildable designs and

y Fund (CPCF) to

, especially the smaller firms, to

the minimum

by 3 points

across the entire construction value

past projects, a 5-

approximately

upstream in

requirement early

to construct. This

include more productive technologies and

. For

which are

the buildability

5. In addition, contractors downstream will have to exploit technology and

productive methods of construction, as well as improve their work processes to meet

the higher constructability requirements.

6. To set a benchmark for the rest of the industry to follow, the government will

take the lead by requiring public sector projects to adopt buildability and

constructability standards higher than the new minimum requirements.

7. Developers will also have to meet higher buildability and constructability

standards for new private developments on Government Land Sales (GLS) sites,

and productivity requirements will be introduced for existing bonus Gross Floor Area

(GFA) schemes.

8. To encourage consultants and contractors towards more buildable design and

adoption of advanced construction technologies, BCA will be introducing tendering

advantage for both consultants and contractors with good buildability and

constructability records respectively, in their tenders for public sector projects with

effect from 15 July 2013. BCA is also exploring bonus incentives for both consultants

and contractors to further encourage them to go far beyond the minimum legislated

buildability and constructability scores.

9. “Currently, most building projects are just meeting the minimum buildability

and constructability requirements. However, there are also some that have exceeded

the mandatory buildability and constructability standards by a significant margin.

While we are taking bolder steps to boost productivity in the built environment sector,

we will carefully monitor the effectiveness of such measures and ensure that they

are doable,” said CEO of BCA, Dr John Keung.

Enhancement of the Construction Productivity and Capability Fund (CPCF)

10. To further support productivity efforts and extend more help to contractors and

consultants, BCA is enhancing its incentive schemes under the Construction

Productivity and Capability Fund (CPCF). To date, about $85 million of the CPCF

has been committed, benefitting more than 2,300 individual firms, of which more

than 80% are small firms.

11. The funding level of the Mechanisation Credit (MechC) and Productivity

Improvement Project (PIP) schemes will be raised from 50% to 70% for firms which

achieve at least 30% improvement in productivity.

12. With this enhancement, contractors can now receive more funding support

when purchasing or leasing equipment like the auto-wheel washer or boom lift when

they tap the MechC scheme to improve productivity. Companies can also receive

additional reimbursements for their investments when tapping on the PIP scheme to

improve their site processes and adopt advanced construction technology.

13. Furthermore, funding caps for firm and industry-level1 applications under the

PIP scheme will be raised to encourage more firms to bring in new technologies. For

firm-level applications, the funding cap will be increased from $100,000 to $300,000

for the adoption of key productive technologies. Such technologies include the

system formwork, prefabricated bathrooms, self-compacting concrete, and precast

and steel construction. BCA will also raise the funding cap for industry-level

applications to $5 million per application for projects that are game-changing and

achieving at least 40% productivity improvement.

14. Lastly, BCA will introduce a MechC Referral Programme to encourage

contractors to help their smaller sub-contractors overcome their inertia in improving

productivity. Contractors can earn an additional $20,000 credit to increase their

funding cap as an incentive for every successful referral to the MechC scheme.

15. Dr John Keung said, “These measures will help companies in the built

environment sector make the transition, so that the sector as a whole will be

transformed into one which is highly integrated and technologically advanced, and

supported by a skilled and competent workforce.”

16. BCA will be meeting industry stakeholders over the next two months to share

these new measures and incentives, and work through the implementation details.

Issued by the Building and Construction Authority on 11 March 2013

About BCA The Building and Construction Authority (BCA) of Singapore champions the development of an excellent built environment for Singapore. BCA’s mission is to shape a safe, high quality, sustainable and friendly built environment, as these are four key elements where BCA has a significant influence. In doing so, it aims to differentiate Singapore’s built environment from those of other cities and contribute to a better quality of life for everyone in Singapore. Hence, its vision is to have "the best built environment for Singapore, our distinctive global city". Together with its education arm, the BCA Academy of the Built Environment, BCA works closely with its industry partners to develop skills and expertise that help shape the best built environment for Singapore. For more information, visit www.bca.gov.sg.

1 Industry-level projects are actively led by a public sector agency with at least two unrelated firms.

Annex A: Buildability and Constructability

Legislation on Buildability The legislation on Buildability was introduced by the Building and Construction Authority (BCA) in 2001 under the Building Control Act to promote buildable design through greater adoption of prefabricated, modular and standardised building components. Under the legislation, building designs are required to comply with a minimum buildability score. While the industry has gained more experience with buildable designs, more could be done to enhance buildability and further reduce labour usage. Good buildable designs will have to be complemented by the adoption of labour-efficient technologies and methods to improve productivity at the construction stage. To achieve this, the Buildability framework has been strengthened to require designers to deliver more buildable designs upstream, and builders to adopt more labour-saving construction methods / technologies downstream. Since July 2011, builders have to comply with a minimum constructability score which encourages the use of construction technologies, methods and processes that reduce the industry's reliance on foreign workers. About Buildability Score

The buildability score computes the extent of standardisation, simplicity and integrated elements applied to projects at the design stage. It measures the potential impact of a building’s design on labour usage. The maximum points for a building’s design is 100 points, of which 50 points are allocated to structural systems (to be revised to 45 points with effect from July 2013), 40 points to wall systems (to be revised to 45 points with effect from July 2013) and 10 points for use of other buildable features. The higher the buildability score obtained by a project, the easier it is to construct. About Constructability Score

The constructability score measures the level of adoption of labour-efficient construction methods and construction processes such as system formwork and climbable scaffolding. Higher constructability scores would translate to savings in manpower cost and shorter construction time. Higher Buildability and Constructability Requirements

To compel the industry to step up the adoption of more buildable designs and innovative technologies, BCA will be introducing the following measures to improve construction productivity:

� Raising minimum buildability and constructability requirements for new projects in July 2013 and July 2014, to speed up the adoption of more buildable

systems and more productive methods of construction. With greater use of productive technologies like prefabrication, our construction sites will also become cleaner, tidier and less noisy.

� Public sector projects taking the lead in meeting higher minimum buildability and constructability scores, to pave the way for the private sector projects to catch up.

� Requiring private residential and industrial developments for new Government Land Sales (GLS) to meet buildability and constructability standards beyond the new minimum requirements.

� Introducing productivity requirements for existing bonus GFA schemes

� Bonus scheme for consultants and contractors for projects achieving high buildability and constructability scores respectively

� Tendering advantage for consultancy firms and contractors which have achieved higher buildability and constructability scores To give recognition to consultants who can achieve higher buildability in projects,

the buildability score will be introduced as a mandatory quality attribute

accounting for 15% of the overall quality point, when evaluating tenders under

the Quality-Fee Selection Method (QFM) framework. This will take effect from 15

Jul 2013. The QFM is used to procure consultancy services for public sector’s

building and construction projects.

Furthermore, the constructability score will be introduced as a mandatory quality

attribute accounting for 15% of the overall quality point, when evaluating tenders

under the Price-Quality Method (PQM) framework. This will also take effect from

15 Jul 2013 to recognise the adoption of labour-saving construction methods

and technologies. The PQM applies to all public sector construction tenders

under the BCA Construction Workheads (CW01) and with an Estimated

Procurement Value (EPV) of $3million and above.

Annex B: Mechanisation Credit (MechC) Scheme The Mechanisation Credit (MechC) scheme provides funding to contractors (especially sub-contractors and smaller contractors) to reduce cost incurred in technology adoption, such as the purchase and leasing of equipment to improve work processes. As of end Feb 2013, 1,316 applications were supported under the MechC scheme from 463 firms, with $28 million committed. Out of these applications, 64% are from the small builders.

Enhancements to the MechC Scheme Higher funding levels The funding level of the MechC scheme will increase from 50% to 70% for construction firms which can achieve a higher productivity improvement of at least 30%. The enhancement will especially benefit smaller contractors as they can receive higher funding for the purchase or lease of smaller equipment. To qualify for the enhanced MechC scheme, firms would also have to show that they are progressively building capability in areas such as financial standing, human resource development, certifications and awards. The enhanced MechC scheme would run alongside the existing standard MechC scheme:

Standard MechC Scheme

(Existing) (firm must achieve at least 20%

productivity improvement)

Enhanced MechC Scheme *

(firm must achieve at least 30% productivity

improvement)

For Purchase of Equipment

Equipment cost < $100,000, grant up to 50% or capped at $20,000 whichever is lower.

Equipment cost < $125,000, grant up to 70% or capped at $25,000 whichever is lower.

Equipment cost > $100,000, grant up to 20% or capped at $100,000 whichever is lower.

Equipment cost > $125,000, grant up to 20% or capped at $100,000 whichever is lower.

For Leasing of Equipment

For leasing cost<$30,000, grant up to 50% or capped at $6,000 whichever is lower.

For leasing cost<$30,000, grant up to 70% or capped at $6,000 whichever is lower.

For leasing cost > $30,000, grant up to 20% or capped at $30,000 whichever is lower.

For leasing cost > $30,000, grant up to 20% or capped at $30,000 whichever is lower

Table 1: MechC funding table with existing and enhanced scheme

Types of Productive Equipment currently supported by MechC Types of Contractors

Examples of Equipment/Tools Productivity Improvement

Electrical Contractors

Aerial Work Platforms -boom lift -scissor lift

65% productivity improvement compared to metal scaffolding platform

General Builders

Spray Paint Machine

35% productivity improvement compared to roller and brush method

General Builders

Builder’s Hoist

40% productivity improvement compared to the use of a wheel barrow

General Builders

Auto-Wheel Washer

100% productivity improvement compared to manual washing

8

MechC Referral Programme The MechC Referral Programme incentivises contractors who have successfully tapped on the MechC incentive scheme to share with their smaller subcontractors the benefits of the scheme and the need to improve productivity. Through sharing and partnerships between main builders and their subcontractors, this will help the entire construction value chain achieve higher productivity.

Currently, the MechC has a funding cap of $250,000 per firm. Under the MechC Scheme Referral Programme, the builder can earn an additional $20,000 credit to increase the per-firm funding cap, as an incentive for every successful referral.

9

Annex C: Productivity Improvement Project (PIP) Scheme The Productivity Improvement Project (PIP) scheme encourages contractors and prefabricators to embark on development projects that build up their capability and improve their site processes. Projects can be worked on at an individual firm level, in groups of at least two unrelated firms or at the industry level led by a public agency with two other private firms. Under the PIP scheme, the following costs are supportable on a co-funding and reimbursement basis:

• Manpower • Equipment and materials • Professional Services / Subcontracting • Acquisition of Intellectual Property Rights

As of end Feb 2013, 218 applications have been received from more than 120 companies, with a committed funding of more than $27 million. Out of these applications, 40% are from small firms. Enhancements to the PIP Scheme The adoption of technologies such as system formwork, drywall, modular and volumetric construction, prefabricated bathrooms and the automation of precast component production would require firms to incur heavy capital investments. To jump-start the adoption of these technologies and overcome the industry’s inertia at the initial stage, BCA is enhancing the PIP scheme to provide stronger support for the wider adoption of these technologies which will bring about significant productivity gains and reduce firms’ reliance on workers. The enhanced PIP will include higher funding levels and a higher funding cap for firm level and industry level applications. To qualify for the higher funding caps, firms need to demonstrate capability development and achieve higher productivity improvement.

Category Standard PIP Enhanced PIP

Funding Level Funding Cap

Firm

• Co-fund up to 50%

• Cap at $100,000 per application

• Co-fund up to 70%

(firm must achieve at least 30% productivity improvement)

• Cap at $300,000 per application (for selective key technologies)

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Prefabricators

• Co-fund up to 50%

• Cap at $500,000 per application generally.

• Co-fund up to 70%

(firm must achieve at least 30% productivity improvement)

• Cap at $500,000 per application generally.

Group (at least two unrelated companies)

• Co-fund up to 50%

• Cap at $500,000 per application.

• Co-fund up to 70%

(firm must achieve at least 30% productivity improvement)

• Cap at $500,000 per application.

Industry (To be actively led by a Public Agency with at least two unrelated companies)

• Co-fund up to 70%

• Cap at $1 million per application

• Co-fund up to 70%.

• Cap at $5 million per application

(firm must achieve at least 40% productivity improvement)

*For firms, prefabricators and groups: To qualify for the increase in funding level from 50% to 70%, firms will have to show evidence that they are progressively building capability through areas such as financial standing, human resource development, certifications and awards. **For firms: Should they adopt key productive technologies, they qualify for an increase in funding cap from $100,000 to $300,000. Some examples of such key productive technologies include: (a) System formwork

(b) Prefab bathrooms

(c) Self-compacting concrete

(d) Precast and steel construction

Examples of technologies supported by the PIP scheme

TechnologyPrefab Bathrooms

System Formwork

Dry Wall

Precast Construction

Self-compacting Concrete

xamples of technologies supported by the PIP scheme

Technology Benefits

45% manpower savings as compared to traditional bathroom works on site

30% manpower savings as compared to timber formwork

65% manpower savings as compared to conventional brickwall construction

25% manpower savings as compared to conventional reinforced concrete

50% manpower savings as compared to the use of concrete

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45% manpower savings as traditional bathroom

30% manpower savings as timber formwork

65% manpower savings as compared to conventional brickwall construction

25% manpower savings as conventional

construction

50% manpower savings as compared to the use of normal