Over the years, the construction sector in the GCC has transformed from being simple and small to massive and multifaceted. Rather than developing small to medium sized projects, developers are looking at multi-billion dollar projects involving complex civil works, electromechanical systems, and other vital infrastructure. The complexity involved in large projects has forced developers to rely on specialized sub-contractors. Further, as customer stake has grown significantly and capital has become scarce, customers are taking an active interest in projects leading to a rise in their expectations.
With an evolving supply chain and increasing volatility in prices of construction inputs like cement and steel, customers are putting pressure on developers to assume greater level of risk (for example, moving from cost-plus to fixed-price contracts). Also, earlier, where most projects were financed through internal cash flows or single bank loans, developers are now seeking larger and more complex financing structures | |Building A World Class Construction Industry: Motivators and Enablers | | |Mohammed Dulaimi, Florence Y.
Y. Ling and George Ofori | | |The construction industry has developed an image of being the least developed sector of the economy | | |in most countries. The industry is consistently being accused of failing its customers and providing | | |products and services that do not meet expectations. | | | | | |SINGAPORE: Singapore's construction industry is set to grow over the next two years, but the global | | |economic uncertainty ahead could cause "havoc" on financial markets and business confidence.
| | | | | |President of the Singapore Contractors Association Limited (SCAL), Ho Nyok Yong, made this point at a| | |dinner on Tuesday evening. | | | | | |Dr Ho said the construction industry's growth will be sustained by demand for public housing and | | |other major infrastructure projects. | | | | | |He pointed out that the industry is expected to pull in some S$30 billion this year alone, with | | |public sector demand accounting for more than half of it. | | | | | |But he urged members to remain "watchful", as the stumbling US economy and Europe debt issues could | | |ripple around the world.
| | | | | |He also highlighted several changes to government policies that have affected the construction | | |industry, including a 40 per cent reduction in foreign workers by 2013. | | | | | |Dr Ho added that contractors are facing problems hiring locals as Singaporeans generally shy away | | |from this industry, which is perceived to be dangerous, dirty and demanding. | | | | | |He noted that the decline in enrolment in engineering courses in tertiary institutions also further | | |limits the pool of available talents that can enter the industry.
| | | | | |To tackle these challenges, SCAL is collaborating with the Building and Construction Authority (BCA) | | |on various scholarships and study schemes. | | | | | |The industry is also looking to raise productivity. | | | | | |At the dinner, Minister of State for National Development Tan Chuan-Jin announced that BCA is | | |exploring the development of a training and certification scheme for productivity managers. | | | | | |Certified managers will lead the push for sustained productivity improvement within the construction | | |industry | | | | | | | | |filetype:pdf singapore intitle:construction industry of *changes* | | | |