Oral Answer by Ministry of National Development on construction of green buildings

Jan 10, 2018

Ms Sun Xueling: To ask the Minister for National Development what are the processes in place to ensure that

(a) design and consultancy fees for building iconic “green” and “sustainable” buildings are fair and appropriate;

(b) proper cost and benefit analyses are conducted before going ahead with the construction of such buildings;

(c) the tender evaluation body of such contracts is well-versed in the subject and has a sense of the fair costs of design and construction; and

(d) the tender evaluation body for such bids does not rely solely on an assessment based on relative bids.

Answer:

In all green building projects, government agencies will first assess their efficiency requirements, bearing in mind the overall costs and benefits.  Thereafter, they will award the project to a proposal that achieves the desired efficiency outcomes at an optimal cost. There are systems, processes, and controls in place to achieve this. While consultancy and construction fees are driven by market forces, the public procurement frameworks ensure that agencies pay fair and competitive prices.  

In addition, the Centre for Public Project Management (CP2M) compiles norms for construction costs and consultancy fees for agencies’ reference to aid in budgeting for projects.  CP2M also works with agencies to review the design of major infrastructure projects to ensure cost effectiveness and value for money.

Based on a study conducted by BCA, buildings that meet the Green Mark Platinum standard cost up to 5% more compared to buildings that do not meet the required energy efficiency outcomes. However, the additional costs are more than offset by the savings from reduced energy and water consumption.  The payback period can range from three to six years, which is well within the typical useful life of the building asset. So from a cost-benefit perspective, there are good reasons to continue our push for Green Mark buildings, including Green Mark public sector buildings.

But beyond cost-benefit perspectives, there are also other reasons why we need to push for green buildings. Last September, BCA and NUS, for example, released the result of a joint research study which suggested that Green Mark buildings provide a healthier indoor environment for their occupants. Occupants were also generally more satisfied with their indoor environment, and were less likely to experience symptoms of sick building syndrome.

Sir, ultimately, the public sector must walk the talk and continue to take the lead, demonstrating our commitment to urban environmental sustainability. So, the initiative known as the Public Sector Taking the Lead in Environmental Sustainability (or PSTLES) was launched in 2016 to improve energy and water efficiency of our public sector buildings. And today, we reaffirm that commitment.