Built environment sector anticipating greater digitalisation and collaboration
Singapore
TO ENABLE the built environment sector to transform as a whole, not only does digitalisation need to take place, but changes in the way that players collaborate and how contracts are tendered should also happen, said industry experts.
In his Budget speech on Tuesday, Deputy Prime Minister and Finance Minister Heng Swee Keat announced that the government will be launching the Growth and Transformation Scheme (GTS), starting with the built environment sector.
The GTS for the sector will "require developers to work closely with their consultants, contractors and suppliers to level up as an ecosystem or value chain," said Mr Heng.
This comes amid Singapore's next phase of industry transformation, where focus will be placed on transforming "entire value chains".
Players in the chain will work together to integrate and digitalise processes, and upskill their workers.
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John Butler, regional director of Asia-Pacific at Linesight, said he expects the transformation to support the introduction of technology into the industry, "specifically the digitalisation and automation of construction techniques to include the use of technology on sites, the pre-fabrication and modularisation of construction methodologies''.
Meanwhile, Allan Tan, managing director of United Tec Construction, said he hopes the government can encourage companies along the value chain to form more partnerships.
For instance, instead of having firms call for tenders, clients can collaborate with main contractors directly (and likewise main contractors with subcontractors) to negotiate the terms of a project deal.
Not only would this improve efficiency, he said, but it would also provide further impetus for companies to enhance their operations.
Additionally, Julia Bensily, director of Prime Structures Engineering, said she hopes that the government can offer subsidies to local players looking to deploy technologies - especially to reduce reliance on manual labour - in projects they are awarded. This would help increase the rate of digital adoption and overcome the manpower shortage.
In his speech, Mr Heng said the government will "tilt our support" to enable the sector to transform decisively. More details will be provided by Minister for National Development Desmond Lee, at the upcoming Committee of Supply debate in Parliament.
To achieve a decisive transformation, Derek Loh, a partner at TSMP Law Corporation, said "mindsets have to change, in particular (on) how risks are shared or to be shared, as opposed to how they are avoided or circumvented".
He noted that in the current contracting structure for the built environment sector, "risks are passed from one party to the next, with each player higher in the chain seeking to pass as much risk as possible downward".
But the government could instead change the contracting regime to one that encourages partnering and alliancing, said Mr Loh.
Other initiatives he suggested include providing incentives for early completion instead of relying solely on disincentives in the form of liquidated damages.
With the sector's transformation well under way, Associate Professor Daniel Wong from the National University of Singapore, Department of Building, noted that "rapid growth and constant advancement of technology may lead to a polarisation of some groups due to their economic or social conditions".
As such, the GTS will need to identify these groups and address their training needs progressively so they do not fall between the gaps or get left behind, he added.
"These groups may require longer government support and intervention rather than speedy integration of technology. The GTS can be part of this solution rather than throwing technology at a problem."
KEY POINTS
- Government will launch the Growth and Transformation Scheme for the built environment sector first.
- The scheme will see the sector levelling up as an ecosystem.
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