The government has promised to allocate millions of dollars to help construction firms adopt new building technologies to make them more efficient and competitive, reported The Straits Times.
This is because using technologies such as prefabricated construction and virtual building design is costly, especially for smaller companies.
Last week, Second Minister for National Development Desmond Lee emphasised that they want all construction firms regardless of their size to join in the government’s technological push.
As such, the Building and Construction Authority (BCA) has established a S$800 million productivity and capability fund for this purpose, with 90 percent of its beneficiaries being small and medium-sized enterprises.
To help offset some of the expenses in making use of virtual design and construction methods, companies can also apply for a separate BCA fund, from which each applicant can get up to S$30,000.
According to Lee, this would benefit about 8,000 small and medium-sized contractors, which have usually adopted a wait-and-see approach to major technological changes.
Besides letting these firms stay relevant in this changing time, these new construction techniques would enhance their productivity and reduce their costs in the long run.
This is particularly important as construction companies have been slashing their fees to secure a dwindling number of work contracts amidst a weak property market. In fact, the BCA tender price index declined in Q1 2017 to its lowest level since 2007.
This article was edited by Denise Djong.
