Singapore market intelligence: Delivering efficiencies with collaborative contracting
By Khoo Sze Boon, Managing Director, Singapore and Vietnam, and Cheryl Lum, Director, Head of Data and Research.
The Singapore construction market saw green shoots at the start of 2022 with demand increasing. However, destabilised regional supply chains continue to cause widespread disruption and are inhibiting growth, leaving the construction sector with modest growth of 3.3 percent year on year.
In light of current issues, optimism about Singapore’s growth has declined slightly, with the GDP growth forecast being narrowed to around 3.5 percent in 2022 from 3-4 percent.
Construction output (certified progress payment) remained stable between quarter one and quarter three in 2022, and at a comparable level to previous quarters. An increasing number of projects that were previously backlogged or delayed are now progressing and back on track for delivery.
Adoption of collaborative contracting
Approaches to collaborative contracting focus on creating value through improved relationships over time – a model which can help re-energise and drive innovation in Singapore’s construction sector. Adopting collaborative contracting is not just a question of new contract models, but also requires a shift in mindset, behaviours and touchpoints between all parties involved.
Tender price escalation forecast
While Singapore’s recovery can be expected to remain resilient overall and outperform similar economies, uncertainties remain around further potential supply chain disruptions, even higher commodity prices, and fluctuations in exchange rates – as currently seen with the outperformance of the US Dollar against the Euro.
Construction organisations can shift the dial on adopting collaborative contracting, by instilling collaborative programme management principles that are driven from the very top.
Read the full report to learn more.