Written Answer by Ministry of National Development on pre-fabricated construction in the building industry

Sep 13, 2016


Mr Alex Yam Ziming: To ask the Minister for National Development 

(a) what has been the overall take-up rate for pre-fabricated construction in the building industry for

i. the public sector and
ii. the private sector;

(b) what have been the key benefits of the Prefabricated Prefinished Volumetric Construction (PPVC) method; and

(c) how will the Ministry be helping the industry to transit into pre-fabrication over the next few years.


Answer:

In prefabricated construction, on-site construction activities are shifted to factories off-site. Components that are prefabricated in the factory are then transported to work sites for installation. This approach is called Design for Manufacturing and Assembly or DfMA. Prefabrication technologies from the DfMA spectrum include structural steel, Prefabricated Bathroom Units, Mass Engineered Timber, and Prefabricated Prefinished Volumetric Construction or PPVC.

The overall take up rate for prefabricated construction has been increasing. In the last three years (from 2013-2015) for example, the prefabrication level for public sector projects, in terms of constructed floor area, has increased from 30% to almost 50%. In tandem, the prefabrication level for private sector projects doubled from around 10% to around 20%.

This is a positive development because DfMA technologies result in significant manpower savings, shorter construction times, improved workmanship, and reduced dis-amenity to residents. One recent example is the Crowne Plaza Hotel Expansion project at Changi Airport. By using PPVC, the project achieved 40% on-site manpower savings and a three month reduction in construction time.

However, we recognise that using new technologies comes with a steep learning curve and a cost premium. So under the Construction Productivity Roadmap, we have taken a multi-pronged approach to build up the DfMA ecosystem and help industry with this transition.

First, we are generating lead demand for these technologies through incorporating these building methods in public sector projects, and stipulating certain productivity requirements in government land sales. For example, at selected GLS sites, we have required at least 65% of the applicable floor area to be constructed using PPVC.

Second, we are building up our supply capacity by increasing our local production capability and bringing in qualified overseas suppliers.

Third, we are easing regulatory hurdles to facilitate the adoption of innovative and productive technologies.

Finally, through the Construction Productivity and Capability Fund (CPCF), we will continue to incentivise the adoption of DfMA technologies and encourage industry practitioners to build up their manpower capabilities.

Taken together, these measures should drive down the cost premium by achieving greater economies of scale while reducing impediments to DfMA adoption. Ultimately, we hope to see the industry embrace more prefabrication in the future.