Dr Amy Khor, Mayor, South West District Community Development Council and Chairperson, SISV

Members of SISV,

Ladies and Gentlemen

Good Evening,

INTRODUCTION

I would like to thank Dr Amy Khor for inviting me here for this special event. I am very pleased to join you in celebrating SISV’s achievements in the past year.

RAISING PROFESSIONALISM IN THE CONSTRUCTION INDUSTRY

2 Let me start by sharing with you MND’s vision for the construction industry. We hope to develop a professional, productive and progressive construction industry, comparable to the best in the world, with quality products and services as its hallmark. To realize this vision, MND and BCA intend to take a more proactive approach to help the industry enhance its level of professionalism.

3 But the Government cannot embark on this mission alone. All stakeholders in the industry, including professional groupings like SISV, must play their part. SISV is unique in that your Institute comprises members in the land surveying field, quantity surveying and construction management field, and property management, agency, valuation and property consultancy field. Your membership therefore encompasses the whole range of expertise, covering the development of a site to the construction and completion of the building, the subsequent management and maintenance of the property, and the eventual re-development of the site.

4 SISV, as an industry association, can provide valuable feedback to the government on key policy proposals and reviews that seek to upgrade the industry and improve its overall operating environment. SISV can also play an important role by raising the level of professionalism amongst your members.

BUILDING MAINTENANCE AND STRATA MANAGEMENT ACT (BMSMA)

5 First, let me talk about SISV’s contribution to government policy reviews and implementation.

6 I am glad to note that SISV had participated in several recent policy and legislative reviews. SISV provided valuable inputs for the Security of Payment Act and the Building Maintenance and Strata Management (BMSM) Act. In particular, the BMSM Act was the result of extensive consultation with various stakeholders, culminating in a Select Committee review. SISV was one of the parties, which made useful representations to the Select Committee.

7 The BMSM Act is a highly technical piece of legislation. Many homeowners are laypersons and may find the Act difficult to understand. For this reason, BCA has published a guide to help explain the Act in simple layperson’s terms. This guide was jointly developed by BCA and industry stakeholders, including SISV.

8 However, we should not stop here. Managing agents who manage estates are often the first persons that management corporations (MCs) or homeowners approach and consult with whenever they have difficulty on matters relating to the management of their estates. Hence, managing agents need to have a good understanding of the BMSM Act, in order to provide appropriate professional advice. They must be able to keep abreast of the latest developments in strata management law.

GOVERNMENT’S LEAD IN ENHANCING THE CONSTRUCTION PROCUREMENT SYSTEM

9 In the area of construction procurement, the Government has just announced the development of a Price-Quality Method (PQM) for the procurement of construction services in the public sector. This was done in conjunction with the safety review conducted by the Joint MND-MOM Review Committee on Construction Safety.

10 Besides sending a strong signal that the Government places emphasis on construction safety, PQM will formalise and make transparent the public sector’s use of both price and quality attributes to evaluate construction contracts. It will require that safety considerations be included, and make up at least 10% of the quality criteria.

11 The PQM will be adopted as the preferred procurement method for public sector construction contracts, and public agencies will have the flexibility to choose a price:quality ratio within the range of 80:20 to 60:40, pick the relevant quality attributes and decide on their relative weightages. The quality attributes will comprise:

a. Past and/or ongoing projects’ performances (e.g. timeliness of project completion and quality of work);
b. Relevant track record;
c. Project-specific requirements.

12 BCA will continue to work closely with the industry to finalise details of the framework. SISV, through its quantity surveying division, plays an important role in the procurement aspect of construction contracts. I have no doubt that SISV, as an active member of the Construction Industry Joint Committee or CIJC, will continue to provide valuable inputs on this framework.

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PROFESSIONALISM OF MANAGING AGENTS

13 Next, let me talk about the professionalism of SISV members. I will begin with the Managing Agents.

14 SISV is actively involved in the area of professional property management. Given that Management Corporations (MCs) are made up of voluntary council members, managing agents play an important role in helping the MCs ensure that their estates are managed professionally. With the rapid growth of strata-titled developments such as condominiums, it is important that managing agents meet minimum professional standards, so as to ensure the quality and retention of capital values of these developments.

15 To raise the professionalism of managing agents, SISV, together with the Association of Property and Facility Managers (APFM), has set up the SISV-APFM Accreditation Scheme for Managing Agents in Dec 2003. BCA has given its full support to the scheme. I am happy to note that leading firms such as Colliers International, CB Richard Ellis, Jones Lang Lasalle, Chesterton International and Knight Frank, are among those who have joined the accreditation scheme. This will encourage other members to come forward to be accredited, making the scheme even more attractive to potential users. The success of the scheme is also in line with the Government’s encouragement for the industry to play a greater role in promoting professionalism and in self-regulation.

PROFESSIONALISM OF VALUERS

16 SISV can also play a contributory role by maintaining standards and encouraging professionalism in the practice of valuations. This is a crucial role, as many parties depend on the valuers' assessment of the fair market value. Take property valuations for example. Buyers and sellers use valuations to gauge the property value and as a reference point for them to try to agree on a mutually acceptable price. Banks depend on valuations to determine the housing loan to be granted to the buyer. Accurate valuations underpin a stable property market and the housing loan market.

17 When carrying out a valuation, a valuer must go through the necessary due diligence - review the subject property carefully and study the market comparables in an independent and objective manner.

18 If anomalous valuations that are beyond the acceptable level of variation arise, it may confuse buyers and sellers, expose the banks to additional risks, and could even undermine the property market. I therefore urge all your members to continue to uphold their high standards of professionalism in the practice of valuations.

SISV’S EFFORTS IN REGIONAL AND INTERNATIONAL FORA

19 Finally, I am also happy to note that SISV is also making efforts to participate in regional and international organisations. This will undoubtedly help you to raise your professional image, make a name for yourselves and make Singapore proud. I would like to take this opportunity to congratulate the SISV on the successful election of your President in charge of the Valuation and General Practice Division as the Chairman of the World Association of Valuation Organisations (WAVO). I also understand that the SISV will be holding the First WAVO World Valuation Congress in Singapore. In addition, it will also be holding the Pacific Association of Quantity Surveyors (PAQS) Conference, as well as the Asean Valuers Association Conference in Singapore in 2006. SISV’s approach to look beyond our shores augers well for the industry and will expose our firms to best practices in the world.

CONCLUSION

20 Together with SISV and other stakeholders, MND and BCA will continue to work towards enhancing the professionalism and competitiveness of our construction and real estate industry. I wish SISV success in promoting the interests of the profession and in improving the standard of professional conduct of its members. On this note, I wish all of you an enjoyable evening.

21 Thank you.

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