Public tenders in the little red dot
With a dearth of private construction projects in Singapore, public infrastructural projects help to prop up many businesses in the industry.
Singapore’s construction industry has been in a rut over the past year.
Since before 2017, the sector experienced a dip in private projects in the pipeline. To counter this fall in demand, the Singapore government estimated a $28–35 billion support package of public projects for 2017. While this effort has somewhat helped to buffer the industry from total collapse, big and small construction companies alike are bearing the brunt of the slowdown.
This negative outlook is further worsened by recurring issues in the industry such as payment delinquency.
Here at TREX Publications, we believe that the key to riding out this rough phase is to have access to the right knowledge, which we hope to provide to our readers in the industry!
Public projects — keeping businesses afloat
For many businesses, these public projects provide a reliable source of income.
This dependency on public projects has also shaped industry perspectives on technology adoption. In recent months, more businesses are paying attention to the Singapore government’s push for particular forms of technology, such as Design for Manufacture and Assembly (DFMA), or Building Information Modelling, and more.
Having said that, public construction is not the panacea for Singapore’s construction industry. We can observe a gradual dip in the number of public projects over the course of 2017, especially in the last quarter.
While the government has not provided any news on public project demand come 2018, the last quarter of 2017 could indeed be especially rough for the entire industry.
Projects are categorised according to its respective tender valuations, as contractors of varying sizes are entitled to bid for particular tender valuation brackets.
Project tenders worth up to $13 million
*Definitions of terms used are at the bottom of this article
Project tenders worth from $13m — $40m
Project tenders worth more than $40 million
Definitions (based on the Building & Construction Authority)
- Residential (e.g. Public housing upgrading)
- Education (e.g Retrofitting of teaching facilities, upgrading of schools)
- Other Buildings (e.g. Construction and retrofitting of government offices, commercial, industrial & institutional buildings, upgrading of community clubs, substations, bus depots, multi-storey carparks, etc.)
- Road & Bridge (e.g. Pedestrian walkways & overhead bridges, road construction, repairs & widening, road-related facilities, improvement of surface carparks, etc.)
- Sewerage & Drainage (e.g. Drainage improvement, construction of drains & sewers)
- Rail and Related (e.g. Improvement works to MRT stations)
- M&E — Rails and Roads (e.g. M&E for MRT)
- Other Civil Engineering (e.g Earthworks, infrastructure works, park development, utilities, etc.)
Understanding future demand can help guide your company’s direction. We hope that this information can help influence your company’s future strategic direction.