Opening Address 22 May 2017 - SEAISIseaisi.org/seaisi2017/file/file/full-paper/Opening Address (Dr...

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Dr. John KeungCEO, Building and Construction Authority

1

Construction Productivity in Singapore –Changing the Way We Build

22 May 2017Opening Address

Singapore, an Island City State

Land Area – 720 km2

Population – 5.6 million

GDP per Capita – S$73,000

Built Environment (BE) Sector and Nation Building

1950s 1970s 2000sand beyond

Marina Bay area (Financial District)

Public Housing

Built Environment (BE) Sector and Nation Building

1950s 1970s 2000sand beyond

Seaport

Changi Airport

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

Aus, UK & US Singapore

< 4 years

≥ 4 years

87%

13%

51%49%

^ as of 2009

Source : Restructuring the Singapore Built Environment to Achieve Higher Productivity, Boston Consulting Group


2D Design (Hardcopy)

70

80

90

100

110

120

1994 1996 1998 2000 2002 2004 2006 2008

Value Added Productivity Growthfor Construction Industries

Singapore

Stagnant

Stagnating Value AddedProductivity

Low site productivity of0.380 m2 per manday(as of 2009)

Infancy in Digital Engineering Application


0

10,000

20,000

30,000

40,000

50,000

60,000

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

Na

tio

na

l C

on

str

uc

tio

n P

rod

uc

tivit

y (

US

$)

Unit Construction Cost in Major Cities (US$/m2)

National Construction Productivity vs Unit Construction Cost in Major Cities

Australia

(Various major cities)

Singapore

Japan

Philippines

Malaysia

Thailand

Korea Hong Kong

USA

UK

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 2007-09.

Raising Productivity while Keeping Construction Cost Competitive

What Defines the Productivity Problem?

Dominance of Low Cost and Low Skilled Workers

Low Construction Wages

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; )

Productive Technology (High Cost)

Manual Labour (Low Cost)

Cost ($)

High Substitution Cost

$$$

$

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

Foreign Worker Levy

MYEMYE

MYEMYE

MYEMYE

MYEMYEMYE

CONSTRUCTIONWORKS

CONTRACT

$100m

Man-year allocated to Main Contractors based on their

project contract value

$180$250 $300 $300 $300 $300

$230

$350

$450$550 $600

$700

Jul-11

Jul-12

Jul-13

Jul-14

Jul-15

Jul-16

R1 (Higher Skilled)

Quota control Price mechanism+Man-Year Entitlement

(MYE) Quota

Note: Currency in SGD

How Did We Address the Productivity Problem?

Raise Manpower Cost to Drive Technology Substitution1

MinimumBuildable Design Score

Apply toArchitectsEngineers( )

MinimumConstructability Score

(Apply to Builders)

Downstream – Construction StageUpstream – Design Stage

Pro

gre

ssiv

e

Enh

ance

me

nts

2011 2013 2014 2015

BuildabilityThe extent to which a building design facilitates ease of construction

ConstructabilityThe extent to which labour-efficient technologies and methods are adopted downstream during construction


Set Minimum Standard through the Buildability Framework2

ConstructionProductivity

and CapabilityFund (CPCF)

Workforce Training andUpgrading (WTU) Fund

Funding support of training courses related to productivity

improvement

Enhanced BCA-IndustryBuilt Environment

Scholarship / Sponsorship

Build up PMET manpower capabilities by attracting new

entrants into the industry Building InformationModelling (BIM) Fund

Enhance BIM integration and collaboration through funding

support

ProductivityImprovementProjects (PIP)

Encourage technology adoption and process re-engineering through project co-funding

Mechanisation Credit(MechC) Scheme

Encourage builders to mechanisemanual works and reduce labour

reliance by con-funding equipment purchase and lease

Capability Building

Integration of Value Chain

Technology AdoptionS$800 million


Incentivise Private Sector to be 1st Movers3

Voluntary BIM submission

Mandatory BIM submission for new building projects> 20,000 m2

Mandatory BIM submission for new building projects> 5,000 m2

2010

2013

2015 andbeyond


Drive BIM Adoption through Regulation to Level Up Industry4

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


Driving Productivity through Public Sector Procurement5


Driving Productivity through Public Sector Procurement5

Quality Price / Fee Productivity

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%

Tender

Executive Programmes Academic Programmes Specialist Cert. Programmes

Pro

fess

ion

al L

eve

lA

sso

ciat

e Le

vel

Executive Development Programme Postgraduate Degree Specialist Certificates

DegreeSeminars

Specialist Diploma

Diploma

Stanford-BCA Advanced Management Program: VDC LeadershipEnhancing Construction Productivity & Management (Kyoto University)

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)

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

S. Diploma & Advanced Cert. in Construction ProductivityS. Diploma in DfMA

S. Diploma in BIM; S. Diploma in VDC

S. Diploma in Lean Construction

Diploma in Construction IT


Nurture a Pipeline of Building Professionals6

>2,500 students

benefitted

Build Capabilities – Scholarships & Sponsorships at All Levels


Nurture a Pipeline of Building Professionals6

Site productivity is defined as the floor area completed per manday

0.380 0.3810.384

0.389

0.395

0.403

0.411

0.419

0.375

0.380

0.385

0.390

0.395

0.400

0.405

0.410

0.415

0.420

2009 2010 2011 2012 2013 2014 2015 2016

m2

pe

r m

and

ay

1.5%

0.8%0.3%

1.3%

2.0%

Year-on-Year Improvement in Site Productivity (building works)

2.0%

2.0%

10% cumulative

improvement since 2010

Encouraging Progress Made

Productivity Target: Annual average of 2-3% productivity improvement by 2020

2011 2014 2016

2011

2% Higher Skilled R1 Workers

2016

40% Higher SkilledR1 Workers

Ratio of Higher Skilled R1 Workers in the Industry

2%

20%

40%


Improved Workforce Profile

0

50

100

150

200

250

300

Larger Consultants Smaller Consultants Larger Contractors Smaller Contractors

14%

36%

50%

58%

25%

17%

15%

50%

35%14%

33%

53%

LargerConsultants

SmallerConsultants

LargerContractors

SmallerContractors

Adopted Collaborative BIM & VDCAdoptedBasic BIM

Have notadopted BIM

Types of BIM Adoption in Singapore

No

. of

Firm

s

Note: Classification of firm sizes are done according to Singapore’s public sector procurement framework and BCA’s Contractors Registry System (CRS)

Note: Basic BIM refers to BIM adoption at the firm level; Collaborative BIM refers to BIM adoption beyond firm level


Increased Adoption of BIM across Construction Value Chain

Sustain the Momentum

Riding the Challenges to Transform the Sector

Moving work offsite will improve productivity in 3 ways

• Controlled offsite environment• Scope for automation of offsite work• Scope for offshoring of offsite work

Designfor Manufacturing(off-site and automation)

and Assembly(on-site)

Changing the Way We Build


Benefits of DfMA

High quality

Faster construction

For the industry For the public

Less workers on site

Greater automation in factory

Less dust

Less noise

Fewer delivery trips

Moving towards a more productive construction sector, while reducing disamenities to the public

Conducive Working Environment

To achieve the target of 40% adoption rate for DfMAtechnologies by 2020

Prefab Components

Str

uctu

ral

ME

PA

rch

itec

tura

l

Structural Steel / Advanced Precast / Hybrid

PBUs

Advanced Prefab Systems Integrated Sub-assemblies Fully Integrated Assemblies

PPVC

PPVC

Mass Engineered Timber (MET) / Hybrid

Precast PPVC

Dryrun Engineered timber floor

On-site Dry Applied Finishes

Prefab MEP Deck

Prefab Module with Platform/ Catwalk

Manpower Savings [Project Level]35%

40%

20%10%

70%

Manpower Savings [Trade Level]45% 60%

Prefab Plant

Prefab Ceiling Module/ Prefab Plant

Prefinished Surfaces

Flexible Water Pipe/ Sprinkler Dropper

Components:

Incremental Improvement

Integrated Assemblies:

Game-Changing Improvement

30%


Continuum of Prefabrication and DfMA

Adoption of Steel PPVC atCrowne Plaza Changi Airport Hotel


Onsite AssemblyOffsite Fabrication &

Fitting out

Adoption of Steel PPVC atCrowne Plaza Changi Airport Hotel


Components

Fully Integrated Components

Steel PPVC

Up to 40% manpower savings at

project level

Advanced Prefab Systems

Structural steel/ hybrid construction

Up to 20% manpower savings at

project level

Continuum of Prefabrication (Steel)

Prefabricated steel cages

Up to 40%manpower savings at

trade level


Use of Structural Steel

SCDF issued circular allowing the use of the design guide in Aug 2016

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


Enable More Extensive Use of Structural 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

Pas

t In

itia

tive

s

• 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

On

-go

ing

Init

iati

ves

High grade 600 rebar

BC4 v2.0

BC1 Design Guide

BC4 Design Guide

Manufacturer Accreditation Scheme

Guidebook for buildable steel connection


Capability Building on Use of Steel

CREATE

SUSTAINED DEMAND

BUILD SUPPLY

CAPACITY &

CAPABILITIES(e.g. developers, consultants,

contractors, suppliers, logistics)

Lower Cost for DfMA Technology Adoption

Creating

Economies

of Scale &

Competition

Creating sufficient lead

demand quickly is critical for

sustainable DfMA adoption

RESOLVE REGULATORY

HURDLES

A Robust DfMA Ecosystem is the KEY!

Concluding Remarks

Opening Address 22 May 2017 - SEAISIseaisi.org/seaisi2017/file/file/full-paper/Opening Address (Dr...

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Transcript of Opening Address 22 May 2017 - SEAISIseaisi.org/seaisi2017/file/file/full-paper/Opening Address (Dr...