Chairman of BCA,
Ladies and Gentlemen,
Good evening,

Make Quality the Hallmark of the Industry

The buzzword for tonight has to be “quality”. The desire of all stakeholders in the construction industry must be to deliver quality and safe buildings and infrastructure. The construction industry has to make “quality” its hallmark and competitive advantage, and quality services and products synonymous with its high standing and credibility.

Quality and Safety are Inter-twined

2 By definition, “quality” encompasses safety. The two are inter-twined. A quality project is designed with safety in mind and is safe for users when completed. By striving to deliver quality outputs, we will have to give due regard to safety at every stage of the construction process.

3 The Committee of Inquiry into the Nicoll Highway collapse has released its report. The Government has accepted its findings and recommendations. The observation that the incident could have been avoided must serve as a wake up call for the industry. It is a most regrettable episode, but regretting only means that it is already too late.

4 It drives home the point that safety cannot be left to chance, that complacency has no place in any construction project, and that utmost attention must be paid to enhancing the professionalism of the industry. By nature of the work, any construction incident can potentially cause considerable loss of lives and damage to properties. All industry players must learn from this unfortunate episode, and adopt the attitude that “every accident is one too many”. Only when such an attitude permeates throughout the industry, from the regulator, from the top man in the construction firm, to the designer, engineer, down to the last worker, can we then build up a strong safety culture.

5 As I had announced during the press conference two days ago, we will strengthen the regulatory framework and systems to enhance construction safety. This includes regulating temporary earth-retaining structure works for deep excavations and stipulating the composition and experience of supervision teams in the Building Control Act, formalizing the Price-Quality Method for public sector tender evaluation, and BCA taking direct charge in regulating building control functions.

6 As with any major review, there will be transitional adjustments to be made and additional short-term costs incurred in implementing the changes. BCA had consulted the industry widely on the proposed measures. There was general agreement that these measures would help to enhance safety standards and that the cost increase would not be significant. In fact, the cost increase would be minimal for firms already engaged in best practices on safety. Marginal performers will be more affected, and rightly so.

7 But I also want to make the important point that the cost of not taking active measures to uplift our safety standards is potentially much higher. Any major incident could result in the loss of lives and damage to properties, lead to higher project costs due to reworking and delays, and sour the credibility and confidence of the firms involved. For the industry as a whole, investments in safety would help to improve its professional image and brand name. In other words, zero-defects and safety would lead to cost-effectiveness over the longer term. So, a safe construction industry is also a competitive construction industry.

Quality and Safety are the Outcomes, Professionalism is the means

8 But what the Government can achieve by putting these measures in place is simply to provide the basic framework and environment for the delivery of quality and safe projects. This alone will not be enough for us to realize the aim of making quality, and with it safety, the hallmark of the industry. Underpinning all efforts and initiatives to uplift quality and safety standards must be a highly professional industry.

9 We need to do more to raise the level of professionalism of the industry. The industry is facing several challenges, including an increasingly competitive environment. Resorting to “dumping” to remain in business is not the solution, as this would have serious ramifications on quality and safety. The best way to beat the competition really is for our construction firms to raise their professionalism to deliver higher quality outputs.

10 The Government will also take a more proactive approach to help uplift professionalism in the industry. We will seek to produce more professional firms, and a more professional workforce.

Licensing of Contractors

11 One key measure is to license contractors. We intend to put in place a mandatory licensing scheme to set minimum standards of professionalism for contractors and specialist contractors.

12 To be licensed, firms must be financially sound and have good safety records. They must also appoint key personnel with suitable qualifications and experience to be responsible for managing the firm and supervising the execution of construction works. Licensing will differentiate the more professional and competent firms from the weaker ones. It will also spur firms to upgrade themselves, and as a result of that, raise the overall competency base of the industry. BCA will further consult the industry on the details of the licensing scheme.

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Tightening of BCA’s Contractors Registration System

13 To send a stronger signal on the need to emphasize professionalism and competency, the Government also intends to tighten the registration criteria for the Contractors Registration System.

BCA is currently working out details which may require contractors who want to undertake public sector works to satisfy certain conditions, such as:
a. Having contractor license as a pre-requisite.
b. Having higher paid-up capital and net-worth for contractors in the top grades.
c. Having in place an Occupational Health & Safety Management Systems (OHSMS).

Professional Workforce Anchored by a Core Group of Locals

14 The industry’s heavy reliance on foreign labour is another structural problem that needs to be addressed. The transient nature of foreign labour makes it difficult for the workforce to retain core skills and valuable experience. This in turn will affect the quality of construction works. Easy access to cheap foreign labour also reduces the incentive for contractors to adopt innovative building methods to raise productivity.

15 The experiences of other countries show that a core of skilled and experienced local workers in key trades is critical in providing the leadership and continuity that allow the industry to make sustained progress in quality, productivity and safety levels. Likewise, our construction industry must do more to develop a core group of skilled local tradesmen to form the anchor of a professional and progressive workforce.

16 BCA is currently exploring the feasibility of introducing a worker registration scheme. The aim is to build and maintain a core of foremen and tradesmen in key trades that have high impact on quality, safety and productivity. This will bring about the depository of critical skills and experience, and raise the productivity and professional image of the industry.

Export of Construction Services

17 The best gauge of how professional we are, and how good our services and products are, is to put ourselves to the test by competing in overseas markets.
By doing so, our firms will naturally also be motivated to upgrade their standards. I urge our firms to seriously take on the challenge of venturing overseas, to exploit the tremendous opportunities offered by the global marketplace.

18 Last year, our local contractors won about S$2.5 billion worth of overseas contracts, the highest in ten years and about S$1 billion more than in 2003. Our contractors clinched contracts in 35 countries, covering markets as far away as Venezuela and Sudan.

19 In particular, exports to India increased ten-fold from 2003 to reach about S$700 million, accounting for nearly 30% of total construction export value in 2004. Exports to China also surged by more than 80% to S$476 million in 2004. The demand for quality housing and infrastructure projects in India and China is expected to continue to grow. The Middle East is another region of great promise, with developments sprouting at a rapid pace.

20 BCA will intensify its efforts to facilitate the export of construction services. Local firms should consider forming consortia to compete more effectively in overseas markets.

Congratulate winners of the BCA Awards; Call on Industry to Leverage on BCA Quality Schemes

21 Lastly, let me congratulate all the winners of this year’s BCA Quality Awards. I understand from BCA that competition for the awards has intensified over the years. This is a good sign. As we embark on the journey to make quality the hallmark of the construction industry, the BCA quality awards will take on more significance.

22 BCA’s quality schemes such as CONQUAS and Quality Mark have, over the years, become more established and well recognized. I strongly encourage those in the industry who want to be known as quality players to leverage on these schemes and awards.

23 I would also like to commend the winners of the inaugural Green Mark Award. They have demonstrated that the construction industry can be innovative and capable of designing and constructing buildings that are environment-friendly.

Conclusion

24 Ladies and gentlemen, the construction industry faces major challenges at this time. Let us transform the challenges it faces into opportunities for action. It must make quality its competitive edge. As quality and safety are closely inter-twined, a high emphasis on quality will also bring high safety standards. To be capable of delivering high quality services and products, the industry must rebuild itself on the bedrock of professionalism. You are all professionals. Live up to your noble calling.

25 I wish all of you a most pleasant evening. Thank you.

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