HDB Main Contractors Levied with Liquidated Damages

Mdm Speaker, over the past two years, HDB has granted 36 projects some form of time extension. The reasons for such time extensions include changes in design beyond contractors' control, or exceptionally inclement weather. Of these, liquidated damages were levied on six contractors for delays in seven projects, due to various reasons, such as poor project planning, coordination and execution.

HDB has a robust system in place to ensure quality, safety and workmanship at all stages in the construction of HDB flats. For example, before construction, HDB sets the required quality standard based on construction of sample units. During construction, HDB conducts audits to ensure that the work is carried out according to the design specifications and up to standard.

In addition, HDB adopts the Construction Quality Assessment System (CONQUAS) as an independent benchmark of construction quality. Over the years, HDB's CONQUAS scores have been rising, reflecting the higher quality of flats built.

HDB will continue to maintain quality, safety and workmanship in the construction of HDB flats. At the same time, we continue to encourage our contractors to adopt greater mechanisation and more productive methods of construction to reduce their reliance on foreign workers.

I thank the Minister of State for his answer. I just want to ask this: in terms of the shortage of manpower in the construction industry today, how does HDB manage that? Knowing that the industry is a bit short on workers, at the same time, does the Ministry still bring Liquidated Damages (LD) on them in view that they do have issues with manpower shortages? How does HDB help some of these construction companies get their manpower resource?

Mdm Speaker, Singapore is experiencing a tight labour market across all economic sectors, as we are all well aware. For the build environment sector, this applies both to the private as well as the public sector projects. Because the tightening of foreign

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worker numbers is one of the measures to incentivise contractors to increase productivity, it is normal that they have been affected as well.

What we have done to help contractors is to help them defray the cost of mechanisation uptake, and to raise their workers' skill levels. This is so that they can meet the challenges ahead of them. We do this through the Construction Productivity and Capability Fund. In addition, HDB has introduced various initiatives such as the use of pre-cast technology, system form-work and mechanisation of the work process onsite, as well as the piloting of the dry wall system and so on.

To cushion the impact and to drive up productivity in the HDB sector, if they still need more workers, beyond these measures, then they can apply for more workers beyond the Man-Year Entitlement quota through the Man-Year Entitlement Waiver tier. But, of course, that would incur higher levies.

Madam, just to rephrase my question: having spoken to some of these contractors – we have LUP in my estate, for example, and they have also seen delays. One of the common feedback was that they cannot get foreign workers. Will HDB help these companies get the workers they require in order to finish these existing projects which are caught in between?

Well, I have just said earlier in response to the Member's question that HDB proactively helps these contractors by driving up productivity, by introducing in their projects productivity-enhancing methodologies. That is the first approach. The second approach is to allow them to mechanise, raise productivity and skills through the provision of a fund. If they do need more workers, then, they are certainly entitled to apply for more workers. It is not that HDB prevents them from doing so. But in so doing, there is the incurring of additional levies. I hope that addresses the Member's question as to whether HDB contractors, when they face difficulties in getting workers, are they able to apply. The answer is yes.