CONTENTS

SYDNEY CONFERENCE PAPER EXAMINES SINGAPORE’S MOVE INTO OFFSITE

THE SINGAPORE GOVERNMENT’S COMMITMENT TO ACCELERATE THE OFFSITE CONSTRUCTION SECTOR IS THE SUBJECT OF A KEY PRESENTATION AT A CONSTRUCTION CONFERENCE TAKING PLACE IN SYDNEY DURING NOVEMBER.

Khoo Sze Boon, Arcadis Executive Director and Head of Cost Management & Quantity Surveying – Singapore is presenting at the ICEC-PAQS 2018 Conference from 18 – 20 November at the International Convention Centre in Sydney. His paper outlines the ramifications of the Singapore government’s moves towards greater uptake of offsite.

“The Singapore government has implemented various initiatives to facilitate the higher adoption of Design for Manufacturing and Assembly (DfMA) technologies in projects such as imposing mandatory technical requirements in land sales programs, stipulating technical guidelines on DfMA technologies, introducing key Construction Industry Transformation Map (CITM) initiatives and funding enabling stakeholders’ transformation towards the productivity targets.”

“In response to the Singapore government’s thrust for further improvement in construction productivity, adoption of innovative and productivity solutions for projects has been gaining momentum in the Singapore construction Industry.”

The adoption of pre-fabricated pre-finished volumetric construction (PPVC) in Singapore, “fully embraces off site modular manufacturing technologies and pushes for better integration between the design and construction stage.”
The conference presentation outlines a number of key considerations for PPVC projects, from the procurement, contractual and cost perspective:

The estimated cost premium of adopting PPVC is approximately 10% to 15% of the total construction cost. Key cost drivers include higher cost outlay, provision of off-site fabrication facilities, transportation, mechanisation and lifting systems.

Design decisions towards offsite factory construction must be made at the very onset of a PPVC project. Alignment of stakeholders’ mindset towards early design, early planning, early procurement is essential.

Modular in Singapore: The Brownstone development - Sembawang.
Modular in Singapore: The Brownstone development - Sembawang.
Modular in Singapore: The Brownstone development - Sembawang.
Modular in Singapore: The Brownstone development - Sembawang.

 

Adoption of Early Contractor Involvement (ECI) procurement model to facilitate high degree of integration of design and construction process at the early stage of the development project. The process requires early engagement of the contractors and PPVC specialists to work together with the consultants at the design stage, input from the contractors and PPVC specialists can then be seamlessly incorporated into the design to attain a more effective and holistic technical solution.

Most of the construction contracts are drafted with conventional practices of on-site fabrication in mind. Adaption of certain contractual and practice matters arising from the adoption of PPVC which involve offsite prefabrication (in the Singapore context this also involves overseas fabrication) will be required:

Consideration for progress payment for offsite items and/or advance payment which typically fall outside the ambit of the payment regime under the Standard Form of Building Contracts.

Authorities initiatives including amendments to the Public Sector Conditions of Contracts, legislative amendments to the Building & Construction Industry Security of Payment Act (“SOP Act”) payment to support greater adoption of prefabrication in local projects to raise productivity and/or push for internationalisation.

Safeguard measures to mitigate the risks of damage and insolvency arising from payment and ownership of off-site items.
Insurance arrangements to cover additional risks/gaps arising from PPVC methods, e.g. insurance gaps arising from territorial limit for construction/prefabrication work carried out overseas, shipment or transit of PPVC units.

“The industry is still going through the learning curve of adopting PPVC. Inevitably there are many other considerations that need to be thought through and resolved, such as alignment of the procurement and construction contract conditions with offsite manufacturing practices in mind.”■


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