Challenges and The Way Ahead Dr John Keung Dean, Building and - PowerPoint PPT Presentation

Challenges and The Way Ahead Dr John Keung Dean, Building and Construction Authority Academy, Singapore

Impetus for Productivity Drive Unsustainable Workforce Growth Foreign Rank & File Workers vs Construction Output Inexperienced Workforce Workforce Strength 13% ≥ 4 years  > 300,000 workers^ < 4 years 49% 51%  Approx. 70% are foreign 87% Source : Restructuring the Singapore Built Environment to Achieve Higher Productivity, Aus, UK & US Singapore ^ as of 2012 Boston Consulting Group

Impetus for Productivity Drive Value Added Productivity Growth for Construction Industries 120 110 2D Design (Hardcopy) 100 90 Singapore 80 Stagnant 70 1994 1996 1998 2000 2002 2004 2006 2008 Stagnating Value Added Productivity Infancy in Digital Low site productivity of Engineering Application 0.380 m 2 per manday (as of 2009)

The Productivity Problem? Manual and Labour Intensive Construction Methods Conventional timber Extensive External Building a Concreting with Bucket framework Scaffold brick wall Manual Construction Involving Multiple Trades at Site to Construct a Bathroom : 13-15 Trades

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; )

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

Our Productivity Journey Key Milestones in Raising Productivity 2015 c 2nd Construction Productivity Roadmap Changing the way we build 2010 c 1st Construction Productivity Roadmap Setting the stage and closing the 1999 substitution cost gap c Construction 21 (C21) 1970s -1980s “The construction industry must transform itself into a knowledge and high-value added industry …” c C21 Report, 1999 “In the late 1970s…HDB…build over 50,000 units using prefabricated and industrialised methods of construction.” Minister Khaw Boon Wan, 2014

How Did We Address the Productivity Problem? 1 Raise Manpower Cost to Drive Technology Substitution + Quota control Price mechanism Man-Year Entitlement Foreign Worker Levy (MYE) Quota $550 $600 $650 $700 $700 CONSTRUCTION MYE MYE WORKS MYE MYE MYE $450 CONTRACT MYE MYE MYE $350 MYE $100m $230 $180 $250 $300 $300 $300 $300 $300 $300 Man-year allocated to Main R1 (Higher Skilled) Contractors based on their project contract value Jul- Jul- Jul- Jul- Jul- Jul- Jul- Jul- 16 17 18 11 12 13 14 15 Note: Currency in SGD

How Did We Address the Productivity Problem? 2 Set Minimum Standard through the Buildability Framework Upstream – Design Stage Downstream – Construction Stage Minimum Minimum Buildable Design Score Constructability Score ( ) Architects Apply to (Apply to Builders) Engineers 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 Enhancements Progressive 2011 2013 2014 2015 2017

How Did We Address the Productivity Problem? 2 Drive BIM Adoption through Regulation to Level Up Industry 2015 and beyond 2013 Mandatory BIM submission for new Mandatory BIM building projects submission for new > 5,000 m 2 2010 building projects > 20,000 m 2 Voluntary BIM submission

How Did We Address the Productivity Problem? 3 Incentivise Private Sector to be 1 st Movers  Technology Adoption  Capability Building Mechanisation Credit Workforce Training and (MechC) Scheme Upgrading (WTU) Fund Encourage mechanization and Continuous Education Training reduce labour reliance (CET) for existing workforce Construction Productivity and Capability Productivity Enhanced BCA-Industry Fund (CPCF) Innovation Built Environment Projects (PIP) Scholarship / Sponsorship Attract high quality entrants Encourage technology adoption  Integration of Value Chain and process re-engineering Building Information Modelling (BIM) Fund Enhance integration and promote collaborative BIM

How Did We Address the Productivity Problem? 3 Incentivise Private Sector to be 1 st Movers  Capability Building Workforce Training and Upgrading (WTU) Fund 1. Training and Continuous Education Training (CET) for existing workforce assessment in Construction CoreTrade Scheme Up to Productivity and Multi-Skilling Scheme 90% and Capability Selected PMET* 2. Enhanced BCA-Industry Fund (CPCF) courses related to Built Environment Scholarship / Sponsorship productivity Attract high quality entrants *Professional Managerial Executive and Technical Personnel

How Did We Address the Productivity Problem? 3 Incentivise Private Sector to be 1 st Movers Mechanisation Credit Scheme  Technology Adoption • Co-fund site mechanisation through Mechanisation Credit purchase & lease of equipment (MechC) Scheme Co-fund up to 70% of cost of • Encourage mechanization and reduce labour reliance equipment Construction • Each approved application must Productivity yield > 20% productivity and Capability improvement Fund (CPCF) Productivity Innovation Productivity Innovation Project Projects (PIP) Scheme Encourage technology adoption Co-fund up to 70% of cost of game- changing • and process re-engineering technology or process improvement Each application must yield > 20% • productivity improvement • Funding cap per application up to $10 mil*, but must yield 40% productivity improvement *Must create great impact in driving productivity gain in the industry

How Did We Address the Productivity Problem? 3 Incentivise Private Sector to be 1 st Movers • Adoption by single companies to defray the hardware, software and training costs. Architect Construction Productivity MEP Structure and Capability • Co-fund up to 70% of cost of adopting BIM into work processes. Fund (CPCF) • To enjoy up to 70% funding support, the firm must form a team of > 3 different disciplines,  Integration of Value Chain including the main contractor • Each application must achieved > Building Information 30% improvement in the project Modelling (BIM) Fund KPI* Construction Enhance integration and *Example for KPI is time taken to resolve Request for Image: Synergis Engineering promote collaborative BIM Information (RFI) between 2 parties.

How Did We Address the Productivity Problem? 3 Incentivise Private Sector to be 1 st Movers Committed $480mil out of $800mil Construction Productivity and Capability Fund (CPCF) More than 90% About 9000 small firms and firms benefitted medium enterprises

How Did We Address the Productivity Problem? 4 Driving Productivity through Public Sector Procurement

How Did We Address the Productivity Problem? 4 Driving Productivity through Public Sector Procurement Quality Price / Fee Productivity Tender Quality Fee Method (QFM) Price Quality Method (PQM) (procurement of consultancy services) (procurement of construction services) Increment in Productivity weightage: Increment in Productivity weightage: 9% - 12%  20% 3% - 6%  10%

How Did We Address the Productivity Problem? 5 Nurture a Pipeline of Building Professionals Executive Programmes Academic Programmes Specialist Cert. Programmes Specialist Certificates Postgraduate Degree Executive Development Programme Professional Level Master in International Construction Stanford-BCA Advanced Management PBU, MET & PPVC courses Program: VDC Leadership Management with major in Construction VDC courses / workshops Enhancing Construction Productivity & Productivity (University of Florida, USA) Prefabricating our Future (PBU) Workshop Management (Kyoto University) Certification Course in BIM Management Degree Seminars BIM Modelling courses Bachelor of Construction Management Workshop on Game-Changing BIM Planning (Building), Bachelor of Civil Engineering Technologies (Build Smart Conference) (University of Newcastle, Australia) BCA-IFMA FM Conference Specialist Diploma Associate Level 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

How Did We Address the Productivity Problem? 6 Attracting and Building a Core of Young Talent + Government-Industry Rebranding Roadmap Scholarships/Sponsorships

Encouraging Progress Made Productivity Target: Annual average of 2-3% productivity improvement by 2020 Year-on-Year Improvement in Site Productivity 0.419 (building works) 0.420 0.415 2.0% 0.411 0.410 m 2 per manday 0.403 2.0% 0.405 10% cumulative 0.400 2.0% 0.395 improvement 0.395 since 2010 0.389 1.5% 0.390 0.384 1.3% 0.385 0.381 0.380 0.8% 0.380 0.3% 0.375 2009 2010 2011 2012 2013 2014 2015 2016 Site productivity is defined as the floor area completed per manday

Encouraging Progress Made Improved Workforce Profile 2016 40% Higher Skilled R1 Workers 40% 20% 2011 2% Higher Skilled R1 Workers 2% 2011 2014 2016 Ratio of Higher Skilled R1 Workers in the Industry