AIS Resources

construction-cost-review-4Q2023

Construction Cost Review 4Q2023

On 15 February 2024, the Ministry of Trade and Industry (MTI) announced that Singapore’s economy grew by 2.2% on a year-on-year basis in 4Q2023 and expanded by 1.1% in 2023. The GDP growth is forecasted to be between 1.0% and 3.0% in 2024. An analysis of recent Asia Infrastructure Solutions’ tender data showed that tender prices for 2023 have increased 1.5% year-on-year (i.e. 4th Quarter 2022 versus 4th Quarter 2023). Looking ahead, while the construction sector is likely to remain stable in 2024, it will face the same cost pressures as in 2023 due to persistent inflation and high interest rates.
Truss-out-Scaffold

We Need Industry Breakthrough of Truss-out Scaffold and Critical Temporary Work System

The recent fatal accident involving a scaffolding collapse has highlighted the need to reevaluate the use of truss-out scaffold systems. Truss-out Scaffold (TOS) has been a popular choice in the construction industry due to its adaptability, cost-effectiveness, and quick installation for maintenance tasks. However, safety concerns have prompted regulatory bodies to establish stricter guidelines.
Collaborative-Contracting

Collaborative Contracting – A Paradigm Mindset Shift?

The term collaborative contracting has more recently entered the plethora of new phrases in the vocabulary of the built environment and is becoming a buzzword garnering more importance than ever in our sector. Can collaboration build and foster successful contracting relationships and a meeting of minds? Is a collaborative contract required to ensure that parties do get on amicably when what really matters is people management and a dovetailing of aspirations, attitudes and conduct?
construction-cost-review

Construction Cost Review 3Q2023

On 22 November 2023, the Ministry of Trade and Industry (MTI) announced that Singapore’s economy grew by 1.1% on a year-on-year basis in 3Q2023. The GDP growth forecast for Singapore is projected to come in at around 1.0% in 2023 and between 1.0% and 3.0% in 2024. Looking ahead, the construction industry is likely to face persistent challenges in the months ahead, as the projected global growth slows due to ongoing geopolitical tensions, persistently high inflation, and elevated interest rates.

Construction Cost Review 2Q2023

Tender prices for 2Q2023 have continued to be stable compared to 1Q2023. Despite the downward trend observed for some key material prices, labour costs remain high. Hence, tender prices for 2Q2023 have been maintained at a level similar to those of 1Q2023, attributed by the prevailing market uncertainty.

SO, DO WE NEED TO COLLABORATE?

Commentary Note on Collaborative Contracting
This commentary note examines the key core drivers and impetus for collaboration and also discusses the critical success factors, potential benefits and challenges, and the possible approaches and some watchpoints flowing from collaboration principles in standard contract forms and bespoke agreements.
Construction Cost Review

Construction Cost Review 1Q2023

Tender prices in 1Q2023 have shown an increase compared to 4Q2022. The upward trend is primarily driven by the increase in material prices and labour costs. Looking ahead, key construction material prices are expected to remain stable, while labour costs are anticipated to continue increasing. The projected price movement for the next twelve months is estimated to range from +3% to +6%, depending on prevailing market sentiment and any potential adverse ramifications of current economic instability.