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Productivity Improvement Project (PIP)

Enhancements to the PIP Scheme - From 1 April 2013

The enhanced PIP will run alongside the current Standard PIP to include higher funding levels and a higher funding cap for firm level and industry level applications. To qualify for the higher funding caps, firms need to demonstrate capability development and achieve higher productivity improvement.

Click here to find out more.

 

What is it?

The Productivity Improvement Project Scheme primarily aims at encouraging contractors and prefabricators to embark on development projects that build up their capability and improve their site processes for achieving higher site productivity. These projects could be worked on individually or in groups.

 

Who is it for?

All stakeholders on the construction project value chain, who are registered and operating in Singapore, are eligible.

  • Contractors
  • Prefabricators
  • Others (if proposal helps to reduce site workers)

 

What is it for?

The incentive scheme helps contractors to re-engineer site processes or adopt labour-efficient construction technologies to reduce site workers or improve site productivity. The following costs are supportable on a co-funding and reimbursement basis:

  • Manpower
  • Equipment
  • Materials
  • Professional Services / Subcontracting
  • Acquisition of Intellectual Property Rights.

 

How much?

Participating firms
Funding cap
Firm
Co-fund up to 50% of development project cost but capped at $100,000 per application
Prefabricators
Co-fund up to 50% of development project cost but capped at $500,000 per application generally

Industry
(To be actively led by Public Agency with at least two unrelated companies)

Co-fund up to 70% of development project cost but capped at $1 million per application
(Funding is for private sector companies only)

Support will be given for use of key construction materials like self-compacting concrete, prefabricated bathrooms and drywall*.

* Only gypsum boards, cement boards and similar drywall systems used in residential projects are supportable.

If the material is specified in the tender documents, the grant to defray extra material cost will be given to the developer.

 

Selection criteria

Click here to download Guidelines on Productivity Improvement Project.

The applications will be evaluated based on the potential of productivity improvement on site. The project should generate savings in man-days or improvement in productivity of the specific site process by at least 20%.

 

How to apply?

To apply for a Productivity Improvement Project grant, please arrange for a preliminary discussion with the following officers:

Ms Fan Suet Lay
DID: 6325 5017
Email: bca_pip@bca.gov.sg

Or

Ms Kate Lim Mui Keng
DID: 6325 5096
Email: bca_pip@bca.gov.sg

 

How to claim?

Claim can only be made after the PIP application has been approved and on reimbursement basis. Applicants must submit the completed Productivity Improvement Project claim form with these supporting documents, where applicable:

  1. Audit statement by an independent accountant
  2. Progress report or final report
  3. Any other documents that may be needed

Note: A Progress claim may be made every six months. The final claim must be made within six months from the scheduled completion date of the project. Otherwise, the offer of the grant shall lapse automatically.

The funds will be disbursed through interbank GIRO.

 

Frequently asked questions

1. What are some examples of projects that could be considered under Productivity Improvement Projects?
Example 1 - The development and adoption of innovative precast systems that eliminate the use external scaffolding, reduce the usage of cranes and minimise damages to the precast components during installation. This project may be a collaboration among various sub-contractors and trades, such as the panel installer, precaster and the main builder.

Example 2 The use of advanced formwork or scaffold systems and re-engineer the work processes to reduce construction cycle time. The Productivity Improvement Project could be conducted to customise and resolve specific implementation issues.

2. When should we submit the PIP application?
Submission must be made before the commencement of PIP. Any cost incurred before the PIP submission would not be supportable.

3. Is there a timeframe set for the completion of project?
The applicant should indicate the estimated PIP duration for evaluation. In any case, the project duration should be kept within two years.

4. Is GST supported?
As the Government grants are not meant to offset the tax liability of companies, GST will not be supported.

5. For group level project, can I collaborate with foreign own firms?
Yes. The members in the group must be registered and operating in Singapore.

6. Can my firm / group submit multiple applications for the same construction project?
Yes, you may submit multiple applications if the PIPs are different and there are no overlapping areas.

7. Can I apply for use of system formwork for all my projects?
Yes.

8. Can I break the purchase of my table form for project A into two batches and apply for incentive under two PIPs?
No. You may apply PIP for the first batch and consider other incentive schemes for the second batch.

9. When will I know the outcome of my application?
You will be notified on the outcome of your application via post within a month if all supporting documents are in order.

10. Can I request for seed money at the beginning of my Productivity Improvement Project?
Payment for expenses incurred is based on reimbursement. No seed money will be provided at the start of your Productivity Improvement Project.

11. When can I submit my claim?
You may submit your claim every six months. All claims must be accompanied by a progress report, an Auditor Statement and other supporting documents as requested by BCA.

 

For more information, please contact:

Ms Fan Suet Lay
DID: 6325 5017
Email: bca_pip@bca.gov.sg

Or

Ms Kate Lim Mui Keng
DID: 6325 5096
Email: bca_pip@bca.gov.sg