Collaborative contracting could re-energise Singapore’s construction recovery: Turner & Townsend

Singapore’s construction sector logged a 10% y-o-y growth in 4Q2022, a higher rate than the 8.1% growth recorded in 3Q2022, according to data cited by Turner & Townsend. The consultancy reports that this signals stability, and provides optimism for ongoing demand and growth this year, in line with the Building and Construction Authority (BCA) estimates of total construction demand between $27 billion and $32 billion.

Residential, commercial, and infrastructure projects will drive the sector and various budget measures, including the $4 billion National Productivity Fund top-up, the new Enterprise Innovation Scheme, and the $1 billion boost to the Singapore Global Enterprises initiative, are expected to bolster growth.

However, Singapore’s construction sector remains vulnerable to global challenges such as high inflation and rising interest rates, which has so far contributed to high construction costs and held back a rebound in other projects. Thus, Turner & Townsend emphasizes the need for better collaboration across the supply chain and embracing new ways of working, such as collaborative contracting, to overcome headwinds and spur the sector’s rate of recovery.

CDL The Myst Aries acquires two adjoining plots in Upper Bukit Timah, to create a prime residential project with easy access to amenities, transport networks and green spaces.

The BCA has also recently refreshed the Built Environment Industry Transformation Map (ITM) to enable a value-chain approach, while the government is taking further steps to encourage collaboration. By adopting the latest frameworks and technologies, projects of varying scale can be improved for greater efficiency and value.

“To transform Singapore’s Built Environment for tomorrow, we need to drive collaborative contracting efforts today,” says Khoo Sze Boon, Turner & Townsend’s managing director for Singapore and Vietnam. Overall, with increasing investment in construction as well as productivity initiatives, the outlook of Singapore’s construction sector appears positive.