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Capability Development: Construction Engineering Capability Development

What Is It?

The Construction Engineering Capability Development Programme (CED Programme in short) aims to nurture progressive general builders* to undertake complex construction projects to build up their construction engineering capability.

* A general builder is a main contractor who undertakes civil or building construction projects and is registered with BCA as a licensed General Builder.

For Whom?

The Programme is for general builders who are looking to develop their construction engineering capabilities by taking on complex construction projects locally on their own (i.e., the projects are not part of a joint-venture).

Examples of complex construction projects include the construction of underground expressways, underground MRT stations, underground tunnels, super high-rise residential buildings with basements, buildings with deep basements in built-up area, buildings adjacent to existing MRT lines, complex structural steel buildings and water treatment plants.

General builders who would not be considered include:

  • Established companies with strong construction engineering capabilities. This is because they do not require further assistance to build up such capabilities.

  • Companies whose parent-holding companies have strong construction engineering capabilities. This is because they can obtain assistance from their parent-holding companies to build up their capabilities.

How Much?

General builders who have been accepted successfully into the Programme are called CED Builders. The various incentive schemes below are available to CED Builders, subject to terms and conditions:

Manpower Development

Incentive 1: Postgraduate Scholarship Incentive

  • Allows CED Builders to send their employees to pursue postgraduate studies in complex construction disciplines,
  • Funds 60% of qualifying expenses (such as tuition fees and allowance), capped at S$60,000 for overseas scholarship and S$30,000 for local scholarship.

Incentive 2: Overseas Industry Immersion Incentive

  • Allows CED Builders to send their employees for specialized overseas project immersions and acquire new skills / expertise,
  • Funds 50% of qualifying expenses (such as participants gross salary and return airfare), capped at $25,000 per overseas industry immersion.

Engineering Capability Development

Incentive 3: Professional Engineer (PE) Incentive

  • Provides funds for CED Builders to engage experienced Professional Engineers (PE) for their expertise in complex construction projects,
  • Funds qualifying expenses* over three years, capped at $120,000 per Professional Engineer**, viz.:
    • 1st year – Funds 50% of qualifying expenses,
    • 2nd year – Funds 30% of qualifying expenses,
    • 3rd year – Funds 20% of qualifying expenses.

* such as the Professional Engineers gross salary and training
** Each CED Builder is allowed to tap on this incentive scheme for up to two Professional Engineers subject to conditions.

Incentive 4: Project Opportunity Enhancement Incentive

  • Provides funds for CED Builders to pursue opportunities in local complex construction projects to be undertaken on their own,
  • Funds 50% of qualifying expenses (such as professional services, equipment and materials), capped at $150,000 per project application.

Incentive 5: Specialist Consultant Incentive

  • Provides funds for CED Builders to appoint specialist consultants for advice and expertise for local complex construction projects that they have secured on their own,
  • Funds 50% of qualifying expenses (such as professional consultancy services and other related costs), capped at $350,000 per project application.

Construction Financing

Incentive 6: Additional Construction Performance Bond (PB) Incentive

  • Provides funds for CED Builders to procure additional performance bonds when embarking on local complex construction projects that they have secured on their own,
  • Funds 50% of qualifying expenses*, capped at $1.35 million per project application (of complex project).

* Such as procurement-related costs covering issuance premiums charged by banks to secure performance bonds.

Incentive 7: CED Productivity Improvement Projects (PIP) Incentive

  • Provides funds for CED Builders to co-fund construction plant and equipment required for complex construction projects that they have secured on their own,
  • Funds 50% of qualifying expenses, capped at $100,000 per firm and or $500,000 for joint application with other companies.

BCA reserves the right to amend any part of the CED Programme and the incentive schemes without prior notice.

Criteria for selection

The criteria for selection are:

  1. Organisation and Leadership (such as senior management, succession plan and organisation culture),
  2. Resources (such as financial health, DP credit rating, manpower and human resource practices, plants and equipment),
  3. Processes (such as engineering capabilities, technology adoption, site management, measurement and verification, performance and innovation),
  4. Other performance factors (such as awards and Ministry of Manpower safety records).

Process of selection

Self-Assessment Phase

General builders should assess their eligibility for the Programme based on the qualification criteria. They can consult the BCA Construction Engineering Capability Development Department if they need any clarification.

Request for Proposal Phase

A Request for Proposal (RFP) exercise will be open through BCA’s website for interested general builders to apply. [Note: Request for proposal is now open from 15th Nov 2011 to 30th Mar 2012]

Each interested builder is to submit an application comprising a written proposal called the CED Journey which explains:

  1. The value which the builder wants to create in their firm and how they will go about doing so;
  2. The business strategies and work methods that will be put in place for the next five to ten years that will strengthen its capabilities, such that it could qualify for complex projects, participate in tender exercises and secure complex projects, all on its own;
  3. How it can work with BCA to build up its capability, with BCA monitoring its progress through measurement and verifications initiatives and suitable intermediate journey milestones.

Evaluation Phase

Upon receiving an application, BCA will verify and assess the proposals and relevant documents. BCA may conduct site visits to the general builders premises / project sites and interview the builders management and staff to appraise management systems, practices, organisational culture and performance, etc

General builders who are shortlisted will be required to present their plans to BCA Selection Panel. The Panel may conduct site visits to these general builders premises to survey the construction operations and quality of the ongoing projects. During the Panels visit, general builders must provide all necessary facilities for the members to carry out their assessment.

Following the presentation and visits, the Panel will assess and general builders will be notified if they have been selected.

Programme Implementation

The general builder selected for the CED Programme will have to develop a comprehensive capability development plan, based on its CED Journey. Also, the capability development plan must be drawn up in consultation with BCAs CED Department before it can be endorsed by BCA for implementation.

In the plan, there must be a proposed set of measures for BCA to monitor the progress of the CED Builder’s capability development. The progress should be tracked by carrying out a Measurement & Verification process on five performance indicators:

  1. Increase in participation in pre-qualification (Pre-Q) / tender exercises (including Design & Build tenders) of complex projects on its own,
  2. Increase in securing complex construction projects on its own,
  3. Improve its Value-Add Productivity by at least 30% in 5 years,
  4. Build up the capabilities of in-house construction engineering team,
  5. Adopt good practices (management and work method) and construction technology in all projects.

 

How do I make a claim?

In principle, all funds will be disbursed on a reimbursement basis.

 

Frequently Asked Questions

1. Would my company be eligible to apply if we do not wish to undertake complex construction projects?

General builders with no intention of undertaking local complex construction projects would not be considered.

2. Is my company eligible if we are already undertaking complex construction projects?

Eligibility is subject to certain conditions. Interested general builders are encouraged to do a self-assessment first (as stated in the Process of selection) and then arrange for a consultation session with BCA.

3. Is the Programme open for application at any time?

The Programme will only be open for application when BCA announces the opening of the “Request for Proposal” exercise. The announcement will be made periodically on the BCA website. General builders who are interested are advised to submit their application as early as possible.

4. What are the supporting documents required for application?

The supporting documents for the application include the general builder’s written proposal (CED Journey), latest audited accounts and track records.

General builders are advised to contact BCA’s CED Department [c/o: Mr Simon Koo (Tel: 6325 2104 or e-mail: simon_koo@bca.gov.sg)] for a preliminary discussion before they make an application.

5. How can I find out about the outcome of my application?

A notice of acknowledgement will be sent to the applicant via e-mail when the application has been received. The applicant will also be notified via e-mail of the outcome within four months after the closing of the Request for Proposal exercise.

 

For more information, please contact:

Mr. Simon Koo
Tel: 6325 2104
E-mail: simon_koo@bca.gov.sg