Tan Chee Kiat
Tan Chee KiatTan Chee KiatDeputy DirectorDeputy Director
Construction Productivity CentreConstruction Productivity CentreWe shape a safe, high quality, sustainable and friendly built environment.p , g q y, y
CONSTRUCTION CONSTRUCTION PRODUCTIVITY PRODUCTIVITY & & CAPABILITY FUND (CPCF)CAPABILITY FUND (CPCF)
WORKFORCE WORKFORCE DEVELOPMENTDEVELOPMENT
CAPABILITY CAPABILITY DEVELOPMENTDEVELOPMENT
TECHNOLOGY TECHNOLOGY ADOPTIONADOPTION
Workforce Training & U di
Construction Engineering
Mechanisation Credit (Mech C)
Upgrading
EnhancedBCA‐Industry
g gCapability
DevelopmentProductivity Improvement Projects (PIP)BCA‐Industry
Built Environment Scholarship
Projects (PIP)
Building Information
M d lli (BIM)Modelling (BIM) Fund
MechanisationMechanisation CreditCredit
MECH C
Mechanisation Credit MECH CMechanisation Credit MECH C
What is it ?
fProvide assistance for companies to reduce cost incurred in technology adoption such as purchase or l fleasing of equipment.
The equipment must achieve 20% improvement in the specific process
Mechanisation Credit MECH C
For equipment cost < For equipment cost >
Mechanisation Credit MECH C
Purchase
For equipment cost < $100,000
(50% co‐funding)
For equipment cost > $100,000
(20% co‐funding)
Purchase$20,000 $100,000
For leasing cost < $30 000
For leasing cost > $30 000
Leasing$30,000
(50% co‐funding)$30,000
(20% co‐funding)
$6,000 $30,000$6,000 $30,000
Up to $250,000 per firm per tranche
MECH C
Skid Steer Loader
Screed Leveler
Concrete Placing Boom
Spider LiftPersonnel Lift
m Lift
Telescopic Handler
Boom
Scissor Lift
Case Study 1
Scissors Lift in place of External ScaffoldingsMECH C
Conventional Construction Technology Adoption
EXTERNAL SCAFFOLDING SCISSORS LIFT
Case Study 2
Spray Painting Machine in place of Roller & BrushMECH C
Conventional Construction Technology Adoption
MANUAL PAINTINGMANUAL PAINTING SPRAY PAINTINGSPRAY PAINTING
Case Study 3
Telescopic Handler in place of Manual LabourMECH C
Conventional Construction Technology Adoption
TELESCOPIC HANDLERTELESCOPIC HANDLERMANUAL LABOURMANUAL LABOUR
Case Study 4
Concrete Rotary Distributor in place of Crane & B k t
MECH C
T h l Ad tiC ti l C t ti
Bucket
Technology AdoptionConventional Construction
CONCRETE ROTARY CONCRETE ROTARY DISTRIBUTORDISTRIBUTORCRANE & BUCKETCRANE & BUCKET
Mechanisation CreditOperational Mechanism
Mechanisation Creditp
Criteria: The equipment
t hi
Builder submits application to BCA
must achieve 20% improvement
BCA to issue letter of support when the application meets the criteriaimprovement
in the specific process Builder to state savings in man-day
pp
g yfor the construction project and
provide proof of payment within a year
BCA to disburse grant upon approval
End MECH C
Productivity Improvement Productivity Improvement Projects (PIP)Projects (PIP)
Productivity Improvement Projects (PIP)PIP
Objective:
Encourage process improvement through- technologies adoption; or - simplification of work procedures
Drywall(for residential project only)- simplification of work procedures
to achieve higher site productivity by at least 20%
Examples of PIP projects
Fabric ductwork
projects
System FormworkClimbing scaffold
Productivity Improvement Projects (PIP)PIP
PIP level Funding cap
EligibilityPrevious Enhanced
Firm - Builders $100k per application
Main con/ subcon
Main con/ subcon
$500kFirm - Prefabricators
$500k per application generally
Prefabricator Prefabricator
Group – At least 2 $500k per Main con / subcon together
All firms (e.g. contractors, developersunrelated companies application subcon together
with another firmdevelopers, consultants, suppliers)
Industry – To be led by Public Agency with t l t 2 l t d
$1 million per application (for private
Public sector agencies with
Public sector agencies withat least 2 unrelated
companies(for private
sector companies)
agencies with other firms
agencies with other firms
Productivity Improvement Projects (PIP) PIP
Major allowable costs include:
( )
Major allowable costs include:
a. Manpower‐Related Costs c. Professional Servicesa. Manpower Related Costs• Salary of project members •Airfare (economy) &Cost
• Consultancy• Subcontracting
of Living Allowance• Training Costs d. Intellectual Property Rights
• Licensing/Royaltiesb. Equipment & Materials
• Equipment
• Licensing/Royalties• Technology Acquisition
Equipment•Materials/Consumables• Software
Productivity Improvement Projects (PIP)PIP
f d dList of companies awarded PIP grant
Each receivedon average $230,000
1) Balanced Engineering & Construction Pte Ltd2) Besco Building Supplies (S E A ) Pte Ltd2) Besco Building Supplies (S.E.A.) Pte Ltd3) CMC Construction Pte Ltd4) Environ Construction Pte Ltd5) L.S. Construction Pte Ltd6) Peck Brothers Construction Pte Ltd7) S h C i P L d7) Samwoh Construction Pte Ltd8) SH Design & Build Pte Ltd9) Singa Development Pte Ltd > 20 other firms are 9) Singa Development Pte Ltd10) Tiong Seng Contractors (Pte) Ltd11) Uniseal Waterproofing Pte Ltd
currently preparing their applications to
BCABCA
Productivity Improvement Projects- Examples of supportable projects PIP
System FormworkRe‐engineer
work processes
Traditional Timber Formwork
PIPProductivity Improvement Projects- Examples of supportable projects
External climbing working platform
Re‐engineer work processes
Traditional Scaffold
PIPProductivity Improvement Projects- Examples of supportable projects
Self Compacting Concrete
Re‐engineer work processes
Normal ConcreteNormal Concrete
PIPProductivity Improvement Projects- Examples of supportable projects
Precast Basement WallRe‐engineer
work processes
PIPProductivity Improvement Projects- Examples of supportable projects
1Back of panel
2
Toilet wallac o pa e
3
Completed
34
Integrated Restroom Systemy
PIPProductivity Improvement Projects- Examples of supportable projects
Prefab BathroomRe‐engineer work processes
Traditional bathroom construction on site: Labour intensive
Coordination of > 15 different trades
PIPProductivity Improvement Projects- Examples of supportable projects
DrywallRe‐engineer
work processes
Brickwall
PIPProductivity Improvement Projects- Examples of supportable projects
Re‐engineerRe engineer work processes
Floor Tile
Laying of tiles without screed /
Use of adhesive
No screed on floor ‐ to
ConcreteSlab
No plaster on walls – to
/plaster
immediately receive tile/stone finish using thin bed adhesive
immediately receive tile/ stone/ wallpaper/ paint
PIPProductivity Improvement Projects- Examples of supportable projects
Use of Prefab, pre‐insulated air‐con ducts & Fabric ducts
Re‐engineer work processes
Pre‐fabricated duct Fabric ductworkhttp://www.youtube.com/user/TheLGMGroup#p/a/u/1/lXpmupAy9P8 (for more info)
PIPProductivity Improvement Projects- Examples of supportable projects
Re‐engineer
Use of flexible pipesRe engineer
work processes
Flexible piping for plumbing
Flexible water i
p g
pipe
PIPProductivity Improvement Projects- Examples of supportable projects
Re‐engineerUsing BIM & Total Station to do setting up/ as‐built
Re engineer work processes
Design Softwareg
Total Station
Productivity Improvement Projects (PIP) PIP
Application and P lt ti ith BCAApplication and Project Implementation Firm submits application
Pre-consultation with BCA
Implementation processCriteria:
Firm submits applicationto BCA
Firm to present to Evaluation PanelCriteria: 20% productivity improvement in the specific process in terms of: BCA to send letter of
Firm to present to Evaluation Panel
p
a)m, m2,m3 or ton per manhourb)Shorter duration using same Firm to submit progress reports & claims
offer if supported
b)Shorter duration using same number of workers
Firm to submit final report & claim
End
Building Information Building Information ModellingModelling(BIM) Fund(BIM) Fund
Building Information Modelling (BIM) Fund
What is it ?
Provide funding assistance for companies who would like to adopt BIM software into their workwould like to adopt BIM software into their work processes to improve productivity.
Building Information Modelling (BIM) Fund
Enhanced
Funding capFunding 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 firmcap of $105,000 per firm
7 contractors have applied for the scheme.
Productivity and InnovationProductivity and Innovation Credit (PIC)
Productivity and Innovation CreditProductivity and Innovation Credit
$100 $400 $68Example:
Expenditure Tax Deduction Tax SavingsExpenditure Tax Deduction400% deduction on $100 = $400 CreditTax savings = 17% x $400 = $68
Tax Savings
S t bl t ti i t/ tS t bl t ti i t/ tSupportable automation equipment/ system:Supportable automation equipment/ system:a.a. Concreting pumpConcreting pumpb.b. RideRide--on concrete trowelon concrete trowelcc AutoAuto climb scaffold systemclimb scaffold system
Pls refer to www.iras.gov.sgfor more information
c.c. AutoAuto--climb scaffold systemclimb scaffold systemd.d. CNC machineryCNC machinerye.e. ComputerComputer--aided design/ drafting softwareaided design/ drafting software
Example of Tapping on both MechC and PIC CreditExample of Tapping on both MechC and PIC CreditABC Builder have decided to purchase a new concrete pump to improve it’s site 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 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 on how ABC builder tapped on the MechC scheme and PIC credit to enjoy the government incentives. government incentives.
Purchase Price Purchase Price S$180,000.00S$180,000.00S t f M hC S h (20%)S t f M hC S h (20%) ( )( ) (S$ 36 000 00)(S$ 36 000 00)Support from MechC Scheme (20%)Support from MechC Scheme (20%) (a) (a) (S$ 36,000.00)(S$ 36,000.00)
Balance Balance S$144,000.00S$144,000.00
Tax deduction Tax deduction 400% deduction on S$144,000.00 400% deduction on S$144,000.00 S$576,000.00)S$576,000.00)Tax Saving = 17% x S$576,000 Tax Saving = 17% x S$576,000 (b) (S$ 97,920.00)(b) (S$ 97,920.00)
__________________________________________________________________________________________________________________________________________
Total Incentives (a) + (b)Total Incentives (a) + (b) S$ 133,920.00S$ 133,920.00
Actual Expenditure Actual Expenditure S$180,000.00 – S$133,920.00 = S$46,080.00S$46,080.00S d 74 4%S d 74 4%Saved 74.4%Saved 74.4%
Tan Chee KiatDeputy DirectorDeputy Director
Construction Productivity CentreTel: 6325 5056
l h k @bEmail: <[email protected]>
We shape a safe, high quality, sustainable and friendly built environment.