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E I N E M A N N
International Journal of Project Management Vol. 13, No. 1, pp. 51-58, 1995
Copyright © 1995 Elsevier Science Ltd
Printed in Great Britain. All rights reserved
0263-7863/95510.00 + .00
E C Lim
School of Civil & Structural Engineering, Nanyang Technological University, Nanyang Avenue, Singapore
2263
Jahidul Alum
Centre for Advanced Construction Studies, Nanyang Technological University, Singapore
The construction industry in Singapore is greatly concerned about its low level of productivity.
A survey of top civil-engineering and building contractors was conducted in late 1992 to identify
the perceptions of top management in relation to construction productivity. The paper describes
one part of the survey that related to productivity issues encountered by contractors at
construction sites. Respondents were asked to rank a list of 17 problems that could affect
construction productivity. The three items of greatest concern were identified as (a) difficulty
in the recruitment of supervisors, (b) difficulty in the recruitment of workers, and (c) a high
rate of labour turnover. The problems encountered least often included stop-work orders issued
because of infringement of government regulations, and work stoppage resulting from disputes
with owners/consultants. All the 67 survey returns from contractors are discussed with
relevance to existing conditions in Singapore.
The construction industry in Singapore currently con- housing schemes, roads, flyovers, and the port expansion
tributes 6% of the country's gross domestic product (GDP) programme;
and it employs 7.5% of the total workforce. The industry • the rush by some developers to bring their commercial
has exhibited strong growth in the last few years. The GDP projects on-stream to forestall an impending glut in the
growth rate in the construction sector increased from 1.5 % commercial property market.
in 1989 to 21% in 1991. The 1991 figure was three times
the national average GDP growth rate of 6.7% for that The above factors make accurate projections difficult. It
year. The construction contracts awarded in 1991 had a is even more of a challenge to gauge the industry
value of S$7900M, and, in the same year, Singapore demand and to ensure that there are sufficient professionals
construction firms secured S$950M worth of contracts and workers.
overseas. In spite of the impressive performance of Singapore's
The GDP growth rate of the construction industry, the construction industry over the past few years, the construc-
value of the annual contracts awarded, and the construction tion sector is perceived as a low-productivity sector,
workforce employed, for the years 1988-91, are shown in because of its low technology image and its employment of
Table 1. a large number of mainly unskilled foreign workers. The
The boom in construction work over the last few years economic indicator used to measure construction produc-
is the result of a number of factors: tivity is the value added per worker. Using this indicator,
the Construction Industry Development Board, Singapore,
• an unexpectedly high demand for private residential stated in a construction productivity taskforce report' that
properties, which has led to more projects being construction productivity had increased at an average rate
launched; of 3.1% over the 10-year period 1982-91, which is below
• an increase in public-sector projects, such as public- the 4.2% rate for the whole Singapore economy.
51
Construction productivity: issues encountered by contractors in Singapore: E C Lim and J Alum
Reference 2 further added that, while construction em- enjoying a construction boom. With regard to the high rate
ployers reported shortages of labour and difficulty in of absenteeism, most of the workers who do not turn up for
recruitment, trained civil engineers, civil construction work are reported to be on medical leave or just taking the
engineers and other construction personnel could be found day off. The issue of communications problems with
in all types of job outside the construction industry, such as foreign workers has indeed taken its toll on labour
in banking, finance and sales. productivity. As mentioned above, the industry's high
Apart from the difficulties of recruiting supervisors and dependence on foreign workers is due to the fact that many
workers (ranked first and second in the survey, Singaporeans shy away from the construction sector. The
respectively), the other three important factors were the biggest block of foreign workers are Malaysians, who
high rate of labour turnover, absenteeism, and communica- constitute 34 % of the total number of construction workers,
tions problems with foreign workers. At the end of 1991, followed by Thais (25%), Bangladeshis (10%), Indians, Sri
the total Singapore construction workforce was about Lankans, Myanmarese, and those from North Asian
120 000, of which over 80 000 were foreign workers. countries such as South Korea, China and Taiwan. From
Regarding the high rate of labour turnover, the local the list of nationalities of those working on Singapore
workers have no difficulty in moving from one job to construction sites, it can be seen that different languages are
another as they are not bound by any regulations relating spoken, and it is obvious that there will be communications
to changes of employment. Foreign workers are employed problems. Although English is used among the pro-
on a 2-year work permit, but, unfortunately, a large fessionals and subprofessionals, other languages are also
percentage leave their jobs to return home before the expiry used on site, mainly Mandarin, Malay and Thai.
of their contracts. This trend is being repeated with workers The issue of communications problems is most prevalent
from Malaysia and Thailand, as these two countries are among general workers, of whom 88% are foreigners, as
Table 3 Deployment of foreign workers by trade • disruption of power/water supplies (importance index:
0.45);
Trade Workers, %
• delays in materials deliveries to site (importance index:
Structural trades 71 0.42);
Finishing trades 56 • work stoppages because of insolvency of subcontrac-
Building services 43 tors/suppliers (importance index: 0.34);
Plant and equipment operation 46
General workers 88 • stop-work orders because of site accidents (importance
Others 57 index: 0.34);
• stop-work orders because of infringement of govern-
[Source: 1992 Annual Report Construction IndustryDevelopmentBoard,
Singapore. ] ment regulations (importance index: 0.29);
• work stoppages because of work being rejected by
consultants (importance index: 0.32);
shown in Table 3. • work stoppages because of disputes with owners/con-
The other two items in the manpower category are
sultants (importance index: 0.28).
• alcoholism and similar problems among the workforce,
There are occasional materials shortages problems (impor-
• labour disruptions.
tance index: 0.47), such as shortages of materials (e.g.
These two items are ranked ninth and eleventh, respec- cement, bricks, steel reinforcement), which can be of
tively. Alcoholism and similar problems are not of any concern as they may cause work disruption on site. As for
significant concern on construction sites. Such problems do the disruption of power/water supplies (importance index:
occur from time to time, but the site management staff keep 0.45), the problems are more often than not caused by the
such issues under control. Problems such as labour contractors themselves, for example when underground
disruptions rarely occur in Singapore. When they occur, power cables are struck by excavators, and water pipes are
labour disruptions relate to manpower shortages and acute burst during excavation work. Another cause of power
levels of job hopping, rather than to strikes called by trade disruption is the damage of supply lines during the
unions. The survey results relating to manpower issues are relocation process. Often, drawings are not available for
given in Figure 1. services laid several decades ago, and this often makes
identification and relocation work difficult.
Management issues With regard to work stoppages due to delays in materials
Most of the eight management problems identified by the deliveries to sites (importance index: 0.42), these problems
authors are of little concern to the respondents. Indeed, all have to be resolved between the suppliers and the
have importance indices of below 0.5: main/subcontractors. In urban Singapore, timely delivery
of materials is important because of a shortage of storage
• materials shortages (importance index: 0.47); space at construction sites. When materials are delivered
Overall
ranking*
27%
Difficulty in recruitment (1) . ~[tl] 36%
of supervisors ~ ~ i . ~ 33~
21%
Difficulty in recruitment (2) . . . . 32%
of workers ~ ~ ' : . ~ 30%
11%
High rate of labour turnover (3) l.[I]llll 37°/*
2%
too early, this often results in double handling, while delays construction projects makes it extremely difficult to define
in deliveries also have an adverse effect on productivity. with precision all the needs of the project during the initial
There appears to be little concern about possible work design stage, particularly where it is intended that the work
stoppages due to the insolvency of subcontractors/ should start as quickly as possible. For this reason, there
suppliers. The great majority of respondents also rarely are provisions in contracts to allow for the design to be
experienced stop-work orders being handed down by the changed, and there is thus an avenue for the contractor to
Factory Inspectorate of the Ministry of Labour because of make claims when necessary. The results of the survey
accidents on site. Stop-work orders are normally issued in relating to management issues are given in Figure 2.
the case of accidents on construction sites that result in
death. However, it is mandatory for the following types of Environmental issues
accident to be reported to the Chief Inspector of Factories: Two final issues are inclement weather and health (e.g.
• accidents resulting in the death of a person; mosquito breeding on site). Inclement weather cannot be
• accidents disabling a worker for more than three days; controlled, but contractors can overcome the problems by
• accidents which cause an injured worker to be hospital- prefabricating some of the works (e.g. precasting) in
ised for at least 24 h. factories so that the work will not be affected by poor
weather. The respondents ranked inclement weather sixth.
Serious site accidents seldom occur, but those that have Health issues were ranked seventh. Problems such as
occurred usually relate to the collapse of falsework or mosquito breeding could be due to poor housekeeping on
caveins during excavation work. The enforcement of the site, or to ponding of water at adjacent vacant plots. In the
Factories Act and the promotion of safe work practices by latter case, the blame does not lie with the contractor.
the Department of Industrial Safety of the Ministry of
Labour have greatly reduced the number of construction-
site accidents. As for stop-work orders being issued by Comments by respondents
government departments for infringements of other
regulations, the great majority of respondents have never Respondents were also invited to identify other factors that,
encountered such problems. in their opinion, impeded construction productivity. The
The other two issues relate to work being rejected by items listed by some of the respondents were as follows:
consultants and disputes with owners/consultants. To • late decisions and changes by owners/consultants;
understand these issues, it is necessary to understand the • poor coordination between various project consultants
nature of the construction contracts used in Singapore. The (e.g. architects, structural engineers, mechanical and
owner (commonly known as the developer or employer) electrical engineers, interior designers, landscape
engages a consultant, who is normally the architect for consultants);
building works and the engineer for civil-engineering • the unwillingness of site staff representing owners to
works, to design and inspect the construction of the project. inspect works after normal office hours, and on Sundays
Under a separate contract, the owner engages a contractor and public holidays;
to execute the works. This 'traditional' contract structure is • unreasonable insistence on compliance to specifications
still the most popular and most widely used type of contract without due regard for practicality/site conditions (e.g.
today. The other contract type often used in specialised insistence on zero tolerance, 100% inspection);
civil-engineering works is the 'design-and-build' approach,
• the unrealistic deadlines for project completion set by
in which the design function is included among the some owners;
responsibilities of the contractor.
• late certification of progress payments by consultants;
The respondents to the survey generally referred to the • some designs not being buildable and hence not
traditional contract structure in which the owner's enhancing productivity.
representative (the superintending officer for building
works or the resident engineer for civil/structural Contractors sometimes encounter late decisions and
engineering works) is entrusted with certain powers and changes made by either the owner or the consultants. These
functions and the discretion to execute the works. Although can cause delays and impede productivity, and both parties
contractors do complain of the high-handed behaviour of have to compromise to enable the project to progress
some owners' representatives, by and large, misunder- smoothly. On average, civil-engineering and building
standings are resolved before they become major issues. As projects take 2 - 4 years to complete, and hence it would be
a result, the respondents to the survey rarely encountered unreasonable to expect there to be no changes during that
stoppages because of the rejection of work by consultants. period of time. Occasional late decisions and changes can
The survey respondents also did not report work be accommodated by contractors, but frequent late
stoppages due to disputes with owners/consultants. This decisions and changes must be resisted by contractors, who
was a healthy sign. Claims by contractors are checked by should, quite rightly, be entitled to claims in these
the consultants (normally the quantity surveyor) before they circumstances.
are recommended to the owners for payment. Of course, The question of poor coordination between various
there have been reported cases of arbitration due to project consultants was raised by some contractors, whose
disputes, but these issues rarely blow up into litigation works progress had obviously been affected. Most projects
cases. Indeed, one of the reasons for the claims is that extra in Singapore are executed according to the terms of the
work is done by contractors because of variations in design. traditional construction contracts in which the owner
Obviously, the design of a project may vary during the engages a team of consultants to design the works, and then
course of its construction. There are several reasons for awards the contract to a construction company. The main
this, but one important one is that the complexity of most consultants are the architect, the civil and structural
Overall
ranking*
40 %
Material shortage (8)
11"/* 43%
27%
Disruption of power/water
supply
(10) ~ 66%
32%
Delays in material delivery to site (12)
25% 43%
17%
Work stoppage due to insolvency (13)
of subcontractors/suppliers 45%
6%
Stop-work order due to (13) 59%
accidents on site 35%
6%
Work stoppage due to (15) IIIIIIIIlllIHIlIHIIIIIIIIIIIIIIIIItlIIIIIIII]IIIIIIItlIlIIIIIIIIIIII
- - . -, ~ - 36% , ' : , - 55%
rejection of work by consultants
3%
W o r k - s t o p p a g e due to (17) 31%
disputes with owners/ 63%
consultants
engineer, the mechanical and electrical engineer and the personnel not only depend on the size of the project, but
quantity surveyor. Each firm of consultants works on also on the funds allocated by the owner for such
several projects simultaneously, and, during boom periods, expenditure.
firms are overstretched, and often do not find sufficient time Contractors also complained of unreasonable insistence
to meet and regularly coordinate the design. by the consultants' site staff on total compliance with
Contractors also remarked that consultants' site staff are specifications without due regard to site conditions. Such
unwilling to work after normal office hours and on Sundays difficulties can be resolved on an individual site basis, as the
and public holidays. A consultant's site staff comprise the situation varies from project to project. Consultants who
resident engineer and the clerk of works. Under Singa- write contract specifications must be aware of prevailing
pore's Building Control Regulations 1989, a resident en- conditions in Singapore, and, when they obtain speci-
gineer must be appointed for any building works for which fications written for the industrialised countries, they must
the project cost exceeds S$10M, while a clerk of works modify them to suit local conditions. For example,
must be appointed for projects with a cost of less than technical specifications for the use of concrete must con-
S$10M. The resident engineer must possess such form to Singapore's hot humid climate, and specifications
qualifications as will entitle him/her to be registered as a on concreting in the temperate zones must be modified
professional engineer under Singapore's Professional when they are used for projects in Singapore.
Engineers Act. Clerks of works must have relevant As for unrealistic deadlines set for project completion by
qualifications and at least one year's practical experience in some owners, the onus must be on the contractors, as they
full-time site supervision. are the ones that are tendering for the project and they risk
Depending on the setup and size of a consultant's site paying liquidated damages for late completion. Again,
staff, a duty roster can be set up whereby the clerks of there is no overall solution to such problems, and they must
works are rostered to perform overtime work and are given be examined case by case. In traditional construction-only
time off in lieu. However, on small projects where there is contracts, the consultants establish the overall work
a manpower constraint, it would be unreasonable to expect programme and advise the client on the project duration.
a single clerk of works to work late into the night and also Contractors then tender according to the project duration
on Sundays and public holidays. As the clerks of works are worked out by the consultants, and they are not expected to
normally paid by the owners, the exact numbers of such recommend longer construction periods, although some
contractors suggest alternative designs to shorten the the current manpower shortage in Singapore at all levels,
construction period and reduce project cost. As consultants and with job seekers avoiding the construction sector,
are not involved in the construction work, they may not be positive measures are needed to rectify the present
in the best position to advise the owners on project situation. Contractors must face up to competition for
duration. If projects were tendered on a 'design-and-build' manpower from other more aggressive and attractive
basis, the contractor would be in a very good position to sectors. The difficulty in recruitment may be due to
advise the owners as to the most appropriate contract outdated strategies used by employers. For example, very
period. Unfortunately, only a few 'design-and-build' few contractors recruit engineering trainees before they
contracts are awarded in Singapore each year. graduate from the universities and polytechnics, as is
The question of late certification of progress payments practised by large corporations in other sectors of industry.
by consultants was also raised by some respondents. A The answer to the manpower problems encountered by the
quantity surveyor, acting for the owner, checks the monthly construction industry in Singapore lies in better trained and
progress claims made by the contractor. The quantity skilled manpower, more attractive employment incentives,
surveyor normally visits the site to ascertain the amount of improved management techniques, and increased use of
work done to date as well as the quantities of materials plant and equipment.
stored on site. Obviously there are occasions when there is Singapore can ill afford to employ increasing numbers of
disagreement between the contractor's site agent and the unskilled foreign workers. Some ways of keeping up with
quantity surveyor as to the amount to be certified for the pace of construction, but at the same time controlling
payment by the owner. the flow of foreign workers, are
Finally, a few respondents claimed that some designs
are not buildable and hence do not enhance site produc- • studying the long-term scope and viability of the
tivity. Buildability has been defined by the UK Con- automation and semiautomation of the construction
struction Industry Research and Information Association 3 process;
as 'the extent to which the design of a building facilitates • starting a major standardisation effort to apply
ease of construction, subject to the overall requirements prefabrication to replace labour-intensive activities;
for the completed building'. Reference 3 stresses two • recruiting and training a younger generation of skilled
points: local workers;
• continuously upgrading the management and technical
• good buildability leads to major cost benefits for clients, skills of supervisory staff.
designers and builders;
• the achievement of good buildability depends upon both In recruiting and training a younger generation of skilled
designers and builders being able to see the whole con- local workers, the aim must be to develop a core of
struction process through each others' eyes. skilled workers. Even if the level of mechanisation and
prefabrication is increased, a productive industry still needs
The 'buildability' culture must be brought into a project a core of skilled workers in relevant trades.
right from the start, i.e. during the conceptual planning
stage. Decisions made during the conceptual planning stage
have the greatest influence on project costs. The items that Conclusions
influence project costs, in descending order of importance, Low productivity in construction is attributed to varying
are factors. In the context of this survey, a shortage of suitably
• conceptual planning; trained skilled workers and supervisors, a large unskilled
• design; foreign workforce, and a weakening local workforce base
• procurement; will lead to more inefficient manpower deployment. The
• construction; productivity issue and related problems faced by Singapore
• startup (i.e. commissioning). contractors will need to be considered and viewed from
various angles. Suitable policies should be adopted to
It is evident from the above arguments that the contractor address the main contributing factors. If construction
should be brought into the project as early as possible so activities continue to increase, the need to employ more
that its opinions can be taken into consideration by the foreign construction workers will also increase, at least
consultants during the planning and design stages. until such time as improved management, the use of
Unfortunately, in the case of traditional construction automated construction processes, and labour substitution
contracts, the contractor does not enter the project arena methods gain a strong foothold in the industry.
until the design stage, at the earliest. Often, the contractor
is not a member of the project team until the designs are
substantially complete, by which time the designers will be References
reluctant to entertain alternative designs submitted by the l 'Raising Singapore's construction productivity' CIDB Construction
contractor. Productivity TaskJbrce Report Construction Industry Development
Board. Singapore (1992)
2 Construction Manpower Update 1991 Construction Industry
Recommendations Development Board. Singapore (1992)
3 Buildabili~': An Assessment Construction Industry Research and
The results of the survey indicate that the most important Information Association. UK (1983) (CIRIA Special Publication
issues are the recruitment of supervisors and workers. With 26)