Popularity of Pre-fabricated Construction in Building Industry

Mr Alex Yam asked the Minister for National Development (a) what has been the overall take-up rate for prefabricated construction in the building industry for (i) the public sector and (ii) the private sector; (b) what have been the key benefits of the Prefabricated Prefinished Volumetric Construction (PPVC) method; and (c) how will the Ministry be helping the industry to transit into prefabrication over the next few years.

In prefabricated construction, onsite construction activities are shifted to factories offsite. Components that are prefabricated in the factory are then transported to work sites for installation. This approach is called Design for Manufacturing and Assembly (DfMA). Prefabrication technologies from the DfMA spectrum include structural steel, prefabricated bathroom units, mass engineered timber, and prefabricated prefinished volumetric construction (PPVC).

The overall take-up rate for prefabricated construction has been increasing. In the last three years, from 2013 to 2015, for example, the prefabrication level for public sector projects, in terms of constructed floor area, has increased from 30% to almost 50%. In tandem, the prefabrication level for private sector projects doubled from around 10% to around 20%.

This is a positive development because DfMA technologies result in significant manpower savings, shorter construction time, improved workmanship, and reduced disamenity to residents. One recent example is the Crowne Plaza Hotel Expansion project at Changi Airport. By using PPVC, the project achieved 40% onsite manpower savings and a three-month reduction in construction time.

However, we recognise that using new technologies comes with a steep learning curve and a cost premium. So, under the Construction Productivity Roadmap, we have taken a multi-pronged approach to build up the DfMA ecosystem and help the industry with this transition.

First, we are generating lead demand for these technologies through incorporating these building methods in public sector projects and stipulating certain productivity requirements in Government land sales (GLS). For example, at selected GLS sites, we have required at least 65% of the applicable floor area to be constructed using PPVC.

Second, we are building up our supply capacity by increasing our local production capability and bringing in qualified overseas suppliers.

Third, we are easing regulatory hurdles to facilitate the adoption of innovative and productive technologies.

Finally, through the Construction Productivity and Capability Fund (CPCF), we will continue to incentivise the adoption of DfMA technologies and encourage industry practitioners to build up their manpower capabilities.

Taken together, these measures should drive down the cost premium by achieving greater economies of scale while reducing impediments to DfMA adoption. Ultimately, we hope to see the industry embrace more prefabrication in the future.