Tan Chee Kiat Deputy Director Construction Productivity Centre

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Spray Painting Machine in place of Roller & Brush. MECH C. Conventional Construction .... Examples of supportable projects. PIP ... Pre-consultation with BCA.
Tan Chee Kiat

Tan Chee Kiat Deputy Director Construction Productivity Centre We shape p a safe,, high g q quality, y, sustainable and friendly y built environment.

CONSTRUCTION PRODUCTIVITY  CONSTRUCTION  PRODUCTIVITY &  & CAPABILITY FUND (CPCF) CAPABILITY FUND (CPCF)

WORKFORCE DEVELOPMENT Workforce  Training &  U Upgrading di Enhanced BCA‐Industry BCA‐Industry  Built  Environment  Scholarship 

TECHNOLOGY ADOPTION Mechanisation  Credit (Mech C) Productivity  Improvement  Projects (PIP) Projects (PIP) Building  Information  M d lli (BIM) Modelling (BIM)  Fund

CAPABILITY DEVELOPMENT

Construction  Engineering  g g Capability  Development

Mechanisation Credit MECH C

Mechanisation Credit

MECH C

What is it ?

Provide assistance for companies to reduce cost  f incurred in technology adoption such as purchase or  l leasing of equipment. f

The equipment must achieve 20% improvement in the specific process

Mechanisation Credit Purchase

Leasing

MECH C

For equipment cost < For equipment cost  For equipment cost >  $100,000 (20% co‐funding)

$20,000

$100,000

For leasing cost   $30 000 $30,000 (20% co‐funding)

$6,000

$30,000

Up to $250,000 per firm per tranche 

MECH C Skid Steer Loader

Screed Leveler

Concrete Placing Boom Spider Lift

Boom m Lift

Personnel Lift

Telescopic Handler

Scissor Lift

MECH C

Case Study 1

Scissors Lift in place of External Scaffoldings

Conventional Construction

EXTERNAL SCAFFOLDING

Technology Adoption

SCISSORS LIFT

MECH C

Case Study 2

Spray Painting Machine in place of Roller & Brush

Conventional Construction

Technology Adoption

MANUAL PAINTING

SPRAY PAINTING

MECH C

Case Study 3

Telescopic Handler in place of Manual Labour

Conventional Construction

MANUAL LABOUR

Technology Adoption

TELESCOPIC HANDLER

MECH C

Case Study 4

Concrete Rotary Distributor in place of Crane & B k t Bucket

C Conventional ti lC Construction t ti

CRANE & BUCKET

T h l Technology Ad Adoption ti

CONCRETE ROTARY DISTRIBUTOR

Mechanisation Credit Operational Mechanism p

Criteria:

The equipment mustt achieve hi 20% improvement in the specific process

Builder submits application to BCA BCA to issue letter of support when the application pp meets the criteria Builder to state savings g in man-day y for the construction project and provide proof of payment within a year BCA to disburse grant upon approval End

MECH C

Productivity Improvement Projects (PIP)

Productivity Improvement Projects (PIP)

PIP

Objective: Encourage process improvement through - technologies adoption; or - simplification of work procedures to achieve higher site productivity by at least 20%

Drywall (for residential  project only)

Examples of PIP projects Fabric ductwork

Climbing scaffold

System Formwork

Productivity Improvement Projects (PIP)

PIP

Eligibility

Funding cap

Previous

Enhanced

Firm - Builders

$100k per application

Main con/ subcon

Main con/ subcon

Firm - Prefabricators

$500k per application generally

Prefabricator

Prefabricator

Main con / subcon together with another firm

All firms (e.g. contractors, developers developers, consultants, suppliers)

Public sector agencies with other firms

Public sector agencies with other firms

PIP level

Group – At least 2 unrelated companies

Industry – To be led by Public Agency with att least l t 2 unrelated l t d companies

$500k per application

$1 million per application (for private sector companies)

Productivity Improvement Projects ((PIP))

PIP

Major allowable costs include:  Major allowable costs include: a.  Manpower a. Manpower‐Related Related Costs Costs • Salary of project members  •Airfare (economy) &Cost  of Living Allowance • Training Costs b.  Equipment & Materials • Equipment • Materials/Consumables • Software

c.  Professional Services • Consultancy • Subcontracting d. Intellectual Property Rights • Licensing/Royalties • Technology Acquisition

Productivity Improvement Projects (PIP) List of companies awarded  f d d PIP grant

PIP

Each received on average $230,000

1) Balanced Engineering & Construction Pte Ltd 2) Besco Building Supplies (S.E.A.) Pte Ltd 2) Besco Building Supplies (S E A ) Pte Ltd 3) CMC Construction Pte Ltd 4) Environ Construction Pte Ltd 5) L.S. Construction Pte Ltd 6) Peck Brothers Construction Pte Ltd 7) S 7) Samwoh h Construction Pte Ltd C i P Ld 8) SH Design & Build Pte Ltd > 20 other firms are  9) Singa Development Pte Ltd 9) Singa Development Pte Ltd currently preparing  10) Tiong Seng Contractors (Pte) Ltd their applications to  11) Uniseal Waterproofing Pte Ltd BCA

Productivity Improvement Projects - Examples of supportable projects

Re‐engineer  work processes Traditional Timber Formwork

PIP

System Formwork

Productivity Improvement Projects - Examples of supportable projects

Re‐engineer  work processes Traditional Scaffold

PIP

External climbing  working platform

Productivity Improvement Projects - Examples of supportable projects

Re‐engineer  work processes

Normal Concrete

Self Compacting  Concrete

PIP

Productivity Improvement Projects - Examples of supportable projects

Re‐engineer  work processes

PIP

Precast Basement Wall

Productivity Improvement Projects - Examples of supportable projects 1

PIP

2 Back ac o of pa panel e Toilet wall

Completed 3

Integrated  y Restroom System

4

Productivity Improvement Projects - Examples of supportable projects

Re‐engineer  work processes Traditional bathroom construction on site: Labour intensive Coordination of > 15 different trades

Prefab Bathroom

PIP

Productivity Improvement Projects - Examples of supportable projects

Re‐engineer  work processes Brickwall

Drywall

PIP

Productivity Improvement Projects - Examples of supportable projects

PIP

Re‐engineer Re engineer  work processes

Floor Tile

Laying of tiles  without screed /  / plaster

Concrete Slab

No screed on floor ‐ to  immediately receive  tile/stone finish using thin  bed adhesive

Use of adhesive No  plaster on walls – to  immediately receive tile/  stone/ wallpaper/ paint 

Productivity Improvement Projects - Examples of supportable projects

Re‐engineer  work processes

Pre‐fabricated duct

PIP

Use of Prefab, pre‐insulated  air‐con ducts & Fabric ducts

Fabric ductwork http://www.youtube.com/user/TheLGMGro up#p/a/u/1/lXpmupAy9P8 (for more info)

Productivity Improvement Projects - Examples of supportable projects Re engineer  Re‐engineer work processes

PIP

Use of flexible pipes

Flexible piping for plumbing p g

Flexible water  pipe i

Productivity Improvement Projects - Examples of supportable projects Re engineer  Re‐engineer work processes

PIP

Using BIM & Total Station  to do setting up/ as‐built

g Software Design

Total Station

Productivity Improvement Projects (PIP)

Application and  Application and Project  Implementation Implementation  process Criteria: 20% productivity improvement in the specific process in terms of: p

PIP

P Pre-consultation lt ti with ith BCA Firm submits application to BCA Firm to present to Evaluation Panel BCA to send letter of offer if supported

a)m, m2,m3 or ton per manhour b)Shorter duration using same Firm to submit progress reports & claims b)Shorter duration using same  number of workers Firm to submit final report & claim End

Building Information Modelling (BIM) Fund

Building Information Modelling (BIM) Fund

What is it ?

Provide funding assistance for companies who would like to adopt BIM software into their work processes to improve productivity.

Building Information Modelling (BIM) Fund Enhanced Funding cap Funding cap Per individual firm (for training, software  purchase)

$20,000

Per project (shared among project team  members)

$210,000 cap of $35,000 $ per discipline*

Maximum no. of applications per firm 

3 per firm cap of $105,000 per firm

7 contractors have applied for the scheme.

Productivity and Innovation Credit (PIC)

Productivity and Innovation Credit

Example:

$100 Expenditure

$400

$68

Tax Savings Tax Deduction 400% deduction on $100 = $400 Credit Tax savings = 17% x $400 = $68

S Supportable t bl automation t ti equipment/ i t/ system: t a. Concreting pump b. RideRide-on concrete trowel c Auto c. Auto--climb scaffold system d. CNC machinery e. Computer Computer--aided design/ drafting software

Pls refer to www.iras.gov.sg for more information

Example of Tapping on both MechC and PIC Credit ABC Builder have decided to purchase a new concrete pump to improve it’s site  productivity. Assuming the concrete pump cost S$180,000.00, below an illustration  on how ABC builder tapped on the MechC scheme and PIC credit to enjoy the  government incentives.  Purchase Price  S tf M hC S h (20%) Support from MechC Scheme (20%) Balance 

S$180,000.00 ( ) (S$ 36,000.00) (S$ 36 000 00) (a)  S$144,000.00

Tax deduction 

400% deduction on S$144,000.00  S$576,000.00) Tax Saving = 17% x S$576,000      (b)   (S$  97,920.00) _____________________________________________________________________

Total Incentives  (a) + (b)

Actual Expenditure  S$180,000.00 – S$133,920.00 = 

S$ 133,920.00

S$46,080.00 S Saved d 74.4% 74 4%

Tan Chee Kiat Deputy Director Construction Productivity Centre Tel: 6325 5056 Email: l h k @b

We shape a safe, high quality, sustainable and friendly built environment.