You are here
Some S$28-35b of construction contracts expected in 2017: BCA
THE Building and Construction Authority (BCA) on Friday forecast that the total value of construction contracts to be awarded this year will reach between S$28 billion and S$35 billion, higher than the preliminary estimate of S$26.1 billion for last year.
The projected stronger construction demand is due to an anticipated increase in public sector construction demand from about S$15.8 billion last year to between S$20 billion and S$24 billion this year.
The public sector is expected to contribute about 70 per cent of the total construction demand, boosted by an increase in demand for most building types and civil engineering works, it said.
"In view of the current slowdown in the property market and continued economic uncertainties, the private sector construction demand is likely to remain subdued and is projected to stay between S$8 billion and S$11 billion this year," it added.
It also updated that the total construction demand in 2016 ended up slightly lower than forecasted, mainly due to the rescheduling of a few major public sector projects to 2017, as longer preparation times were needed to implement these large-scale projects.
BCA had earlier projected S$27 billion to S$34 billion worth of construction contracts to be awarded in 2016.
"Despite the slight shortfall from the forecast, total public sector construction demand last year was higher than the S$13.3 billion in 2015, supported by the strong demand for civil engineering projects," it said.