The Business Times

How Singapore can lead the world in building better buildings

The industry needs to manage projects better, take advantage of technology and encourage the development of the 'soft skills' - leadership and team management skills.

Published Thu, Jul 8, 2021 · 05:50 AM

DESPITE recent headwinds from the shortage of workers, the construction industry in Singapore is cautiously optimistic. This is due to a large backlog of projects which were put on hold due to Covid-19, and slightly more certainty on the direction the world is heading towards.

The Singapore government has also committed to ambitious infrastructure spending in the years to come. It already plans to issue S$90 billion in new bonds to fund projects with large upfront costs, including new Mass Rapid Transit lines, pumping stations and tidal walls to protect against rising sea levels.

But the delivery of these projects is beset with numerous challenges. For example, 85 per cent of Build-To-Order projects in Singapore - a major public housing programme - are now six to nine months behind schedule, affecting 43,000 households.

Having been immersed in construction for over 30 years and working on multi-billion dollar projects like Marina Bay Sands in my adopted home of Singapore for over 20 years, I can truly say that I have seen more change in the world of construction in just the last few years than any time in my career.

The pandemic has shown us that project execution and delivery needs to withstand the turbulence of the times we live in. The role of project management has become even more critical today.

We are seeing more interest in and awareness of project management training from the construction industry in Singapore, in a time when effective project managers are needed more than ever to not just manage the safe movement of manpower, but also the movement of material and machinery on site and across borders when supply lines are disrupted.

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Here are three approaches we can take to ensure greater success in the future:

EFFECTIVE PROJECT MANAGEMENT

The plain reality is that many projects fail to effectively implement on their vision. According to our "Pulse of the Profession" research report, construction organisations continue to waste far too much money due to poor project performance - an average of US$127 million for every billion spent. About half of construction projects also finish late - another area in need of drastic improvement.

Think of the sheer waste these figures suggest - not only in dollar signs, but in value squandered.

Our view is that the development of project skills across the industry requires far greater attention and coordination from organisational leaders. Capable and experienced project managers play an invaluable role in helping teams to break up projects into manageable portions and navigate changes as they emerge.

Another key challenge the industry faces is a lack of consistency around the world in respect to processes and systems. This is an especially acute challenge for junior project professionals learning on the job in an increasingly global economy. Project managers might execute a job in Manila and then move onto another engagement in, say, Hong Kong, where practices may be completely different.

While some challenges may be inevitable in respect to cost, schedule and scope, there is clearly a pronounced need for construction professionals to be speaking the same language, following a similar set of standards of processes and systems - similar to how we are trying to create a common language using the Project Management Body of Knowledge (PMBOK) for the project management profession itself over the past 50 years.

As economies build a bridge from the pandemic era to a "new normal" and dirt starts "flying" anew on construction sites, we should focus on integrating greater agility and project discipline into the next wave of construction projects.

EMBRACE TECHNOLOGY

Construction has lagged behind other sectors in the past in leveraging emerging technologies. But that is changing; McKinsey has estimated that construction and engineering firms have doubled their investments in technology over the past decade to reach US$18 billion, including greater use of technologies like 3D printing, robotics and modularisation to boost productivity and shorten project timelines.

As the world grows increasingly digitised, project management skills will expand into overseeing these technologies effectively for construction. Augmented reality capabilities and Building Information Modelling (BIM), which gives construction professionals advanced insight into designing buildings and infrastructure, will be highly useful.

The Building and Construction Authority of Singapore has already made the submission of BIM for certain projects mandatory since 2012. By digitally representing all aspects of a given structure, organisations can cut down on waste and delays by identifying potential challenges before execution in the field.

However, technologies like BIM should not be used in isolation. One way to maximise it is to connect it to Artificial Intelligence to make sense of the data collected. Some 95 per cent of all data currently captured in the construction and engineering industry goes unused. Imagine the improvements in productivity and efficiency if the data can be used to improve processes and not just digitised for the sake of it.

The pandemic has also brought about ways of working that are more efficient, cost-effective and hence, likely to stay. For example, an enhanced focus on worker safety could bring substantial change to current job sites and help accelerate the industry's move to modularisation, prefabrication and off-site construction methods, which Singapore has been moving towards for a long time, especially for public housing projects.

But nothing breeds creativity like constraints; it is why we see construction projects using drones to inspect sites from a safe distance and even leveraging augmented reality technology for training. These can come in handy especially when safety will still be of concern for years to come following this pandemic, like the need for social distancing.

In fact, in future, more projects will be awarded based on how innovative they are in approaching new public-health requirements and how efficient they are with their construction methodologies.

INVEST IN POWER SKILLS

While some worry that efficiencies created by our emerging technologies will displace workers through automation, the outcome I expect is that humans will simply need to shift and evolve their skill sets.

Companies are increasingly seeking talent that bring attributes beyond the traditional technical skills expected on construction projects. Indeed, project talent today are called on to wear more hats than ever, and get accustomed to multi-faceted job expectations.

Technical skills will always be instrumental, but they increasingly must be complemented by capabilities focused on working with people and leading teams.

Rather than calling them "soft skills", they should be considered as Power Skills, given how essential they are, particularly with more professionals working in dispersed virtual environments and across generational divides. These include attributes like creativity and collaborative leadership - the type of capabilities that won't be assumed by even today's sophisticated machines anytime soon.

Especially when engaged on complex projects that require the input of a variety of stakeholders, it's essential that professionals can leverage these capabilities, including empathy for the voice of the customer and applying an innovative mindset.

Communication is and always has been a critical Power Skill in particular. It is critically important to be able to communicate well with all parties. You can have all the knowledge in the world but if you cannot get your message across, it will have limited impact.

The future will no doubt present challenges, including some we may not anticipate like future pandemics or climate shocks. But I strongly believe in the potential of this industry and for Singapore to continue innovating and finding the silver lining in any challenge.

  • The writer is managing director for the Asia-Pacific and head of global construction at Project Management Institute.

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