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Paving the digital path: Unpacking the impact of Singapore’s Budget 2024 on AI integration

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Singapore is forging ahead in AI and technology development, evident from the significant investments outlined in the recent Budget 2024 announcement. In the February Singapore Budget, substantial investments were unveiled to drive AI and technology initiatives. Over the next five years, the government aims to inject more than $1 billion into advancing multi-sector AI adoption, with a focus on nurturing talent and fostering industry growth.

Recognising AI’s transformative power emphasises the significance of human skill in the digital era. Moreover, Singapore is focusing on boosting its energy transition endeavours through a $5 billion investment. This move could alleviate financial constraints on clean energy initiatives, such as renewable energy generation and related infrastructure within industries like construction.

The focus on AI and technology presents a unique opportunity for the construction industry to undergo a significant transformation, and embracing these technological advancements will be essential for staying competitive in an increasingly digital landscape. AI-driven solutions are already allowing construction firms to optimise resource allocation, mitigate risks, ease bottlenecks, increase productivity and deliver projects more efficiently, ultimately driving greater value for stakeholders at all stages of a project’s lifecycle. At PlanRadar, we expect this trend of a digital-driven built environment to accelerate significantly in the coming months.

 

Closing the digital divide: How can companies sustainably adopt AI and smart building?

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Bridging the digital divide necessitates a comprehensive strategy focusing on the accessibility and affordability of advanced digital tools. A promising approach involves offering tailored assistance and resources to smaller businesses in rural regions or developing nations, such as subsidised access to digital tools and extensive training initiatives to bolster technical skills in the workforce. By investing in educational and upskilling schemes, employees can gain the necessary technical prowess to effectively leverage smart technology.

The incorporation of AI and technology in any capacity should always enhance, not diminish, the role of human workers in the construction sector. PlanRadar understands that while machines excel at routine tasks and data handling, humans bring critical thinking, adaptability, and hands-on trade experience to the forefront. Additionally, human workers are essential for executive decision-making. Although automation and digital tools can streamline operations, it is crucial to leverage human creativity, expertise, and intuition for intricate problem-solving and decision-making processes. Through investment in training and upskilling initiatives, we can equip workers with the necessary digital literacy and technical skills to excel in an increasingly technology-driven landscape. This approach ensures that technology supplements, rather than replaces human capabilities.

By directly tackling these discrepancies, we can establish a fairer environment for digital integration within the construction sector across the ASEAN region.

 

Successfully integrating technology: Key ways to maximise industry incentives and funding

To maximise potential for government incentives and grants towards successful AI and digital technology adoption, construction companies in Singapore should consider the following strategies:

  • Stay informed: Regularly monitor updates and announcements from government agencies such as the Building and Construction Authority (BCA) and Enterprise Singapore to stay informed about available incentives and grants.
  • Alignment with government priorities: Align AI and digital technology adoption initiatives with the government’s priorities and strategic plans for the construction sector. This ensures that the company’s efforts are in line with national objectives, making it more likely to qualify for incentives and grants.
  • Participation in government programs: Actively participate in government-led programs and initiatives aimed at promoting AI and digital technology adoption in the construction industry. This could include joining pilot projects, industry collaborations, or innovation challenges organised by government agencies.
  • Collaborate with research institutions: Collaborate with research institutions, universities, or technology providers to develop innovative AI and digital solutions tailored to the needs of the construction industry. Government agencies often support collaborative research and development projects through funding and grants.
  • Invest in employee training and skills development: Invest in training and upskilling employees to ensure they have the necessary knowledge and skills to effectively implement and utilise AI and digital technologies in construction projects. Some government incentives may prioritise companies that demonstrate a commitment to workforce development.
  • Compliance and regulations: Ensure compliance with relevant regulations and standards related to AI and digital technology adoption in the construction sector. Companies that adhere to industry best practices and regulatory requirements are more likely to qualify for government incentives and grants.

By adopting these strategies, construction companies in Singapore can maximise their potential for government incentives and grants towards successful AI and digital technology adoption, thereby driving innovation and competitiveness in the industry.

 

The impact of the Singapore Budget 2024 on technology in the construction industry

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We expect that the 2024 budget will likely prioritise the role of technology in construction as part of Singapore’s broader strategy to maintain global competitiveness. With grants available to support AI technology adoption across all sectors, including construction, there is an anticipation of a concentrated effort to encourage companies to embrace digital innovation. This could involve specific initiatives aimed at fostering the use of AI, IoT, and smart technology in construction projects, along with investments in digital infrastructure and workforce development.

At PlanRadar, we foresee that construction firms stand to gain significantly from the available grants for acquiring AI technology. These funding opportunities offer companies a chance to invest in state-of-the-art AI solutions that boost productivity, enhance safety protocols, and streamline operations for construction projects of any size or complexity.

By leveraging the growing global significance and potential of AI, construction firms in Singapore can improve resource management, mitigate risks, and increase operational efficiency and profitability. We trust that these grants will inspire companies to embrace AI advancements, accelerate their digital transformation, and push for a competitive edge in a dynamic market environment.

 

Article Contributed by Vitaly Berezka 
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Vitaly Berezka is Head of Sales across Central Asia, MENA and APAC for the construction and real estate software company PlanRadar.

With an engineering degree in construction, Vitaly also holds an executive degree in business administration. His experience in the real estate development and construction industry spans more

than 15 years. Since 2013, he has held management positions in international companies that provide innovative solutions to the construction and real estate industries.

Besides lecturing on digitalisation topics at universities, he is the author of scientific publications and the co-author of three books. Vitaly is a member of International Real Estate Federation (FIABCI).

Future of Construction: Your Next Building Won’t Be Built – It Will Be Manufactured

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Imagine a 57-storey tower built in just 19 days.

That’s what China’s Broad Sustainable Building (BSB) Company just did. Constructed at a pace of three stories per day, the tower includes 800 apartments, 19 atriums, and office space for 4,000 people.

Broad Sustainable Building’s tower under construction. Image courtesy of BROAD Group.

Broad Sustainable Building’s tower under construction. Image courtesy of BROAD Group.

 

And BSB isn’t the only one with this type of ambitious plan for the future of construction. The industry is entering the age of the mass-manufactured building. Prefabrication is growing up, reaching a new level of maturity that is now going to change the industry and define new categories of building. Check the trailer-park stereotype at the door.

While the construction of BSB’s tower is staggering in its speed, the concept isn’t completely new. For the past decade, there has been a lot of talk about the inefficiencies of the building industry and the need to turn to manufacturing techniques.

It has happened in pockets, but now that surge is really taking off and going beyond the typical stuff: metal, curtain wall panels, cabinetry. There’s a huge rush to prefabrication—from whole bathrooms “plopped” into place to hospitals with entire floors built in days rather than weeks.

 

 

Given that the technique has been part of building for decades, the obvious question is: Why is prefab gaining such traction? Like most things with architecture and construction, it’s complicated.

Why Now?
Revolutionary changes don’t come along very often in the building industry, and when they do, usually a confluence of stuff pushes those changes forward. Prefabricated architecture, sometimes also called “assembled architecture,” looks to be one of those transformations. In the past decade, a few pivotal events shaped the transformation of “manufacturing buildings” from hyperbole (or desperate banality) to reality.

 

One story of Broad Sustainable Building’s tower under construction. Image courtesy of BROAD Group.

One story of Broad Sustainable Building’s tower under construction. Image courtesy of BROAD Group.

First, there’s the increasing use of digital models paired with ever-cooler fabrication methodologies. New “making” techniques such as additive manufacturing and 3D printing, more robotics both on and off the job sites, CNC-controlled technologies, and even laser scanning for field verification are major influencers. Collaborative project-delivery models such as integrated project delivery—which put information sharing at a premium – are moving toward more integration, too. Early signs suggest that robots might be as important to construction, eventually, as people.

 

And then there are economic and cultural factors that are pushing the shift to prefab. During and after the recession, construction capacity was destroyed due to job loss as millions of construction workers were out of work. In 2010, the number of people working in U.S. architectural firms plummeted. In turn, clients used the crisis to drive prices down further, taking advantage of the marketplace in crisis. Construction was buying at rock bottom, and architects were working at below-breakeven cost just to keep the lights on. Many in the construction industry retired or departed. Five years after the recession, as design and construction vitality returns, the capacity to support it no longer exists in its previous form.

 

Image 3At the same time, baby boomers are retiring left and right, as evidenced by the dwindling numbers of skilled craftspeople and experienced site superintendents. The family-owned drywall company handed down through the generations now has 21st-century kids in medical school instead. Many trade skills are disappearing, and those workers are harder and harder to come by now, meaning builders are looking for alternative methods to handwork and manual methods of assembly.

So with the combination of technology breakthroughs, economic shifts, fewer workers, and increased cost to skilled trades, the demand for prefab has never been higher—or more critical. Right now, buildings are still mostly built; in short order, they are going to be assembled.

What Will It Look Like?
To get one stereotype out of the way, prefab does not equal “generic.” Major institutional buildings are not going to be like your local big-box stores. Design will be as important—if not more so—in the age of mass customization and increasingly sophisticated consumer demand.

Image 4Take a hospital, for example, one of the more popular uses for prefab. Current designs combine both design and optimum care: wide hallways, rooms designed for natural light and effective use of space for equipment, appropriate finishes—all preassembled off-site and then snapped into place with structure and mechanical systems in one fell swoop. Once the design is finalized and the assembly facility is ready to go, the floors can be replicated as necessary.

Of course, the ER floor plan isn’t identical to the in-patient-care floors. But oft-repeated spaces and areas—and modern hospitals have lots—can be built this way, and many are today. So prefabrication won’t just save time in construction; it will also make the entire process more efficient and less reliant on increasingly scarce resources such as architects, engineers, and skilled craftspeople.

And it won’t be just prefab forever. Once prefab is even more mainstream, another disruption will come right on its heels: mass customization. When a computer is driving the making of a building part, it doesn’t care if you change that part for each customer. That means the same computer-controlled building assembler will make what you want for no additional cost.

It’s Not Perfect, but It’s Inevitable
Although prefab is gaining traction, it’s not all rosy. Last year, Brooklyn’s Pacific Park (formerly named Atlantic Yards) – at the time touted to become the world’s tallest modular-constructed building – came to an unfortunate, grinding halt. Challenges in the design and fabrication project have all sides pointing fingers and arming for lawsuits.

 

Image 5Prefab is a disruption, so it’s going to have fits and starts. It’s not always pretty –new business relationships will need to develop; contracts will evolve (never to look the same again); the nature of work will shift. How construction workers show up on a job (and where) will change. Increasingly, they might clock in at the factory and not at the build site as much anymore.

Although all of this was a unique idea 10 years ago, almost every major design school is now teaching the fundamentals of prefab. A new generation is coming into the field equipped to do this, and the wheels of manufacturing buildings will soon be humming. Those folks will catch the wave of prefabrication fully, and workers swinging hammers will give way to assemblers in the era of manufactured buildings.

This article was contributed By: Phil Bernstein, Vice President, Industry Strategy and Relations, AEC Solutions, Autodesk

 

Insuring Asean’s Building/Construction Industry the S’pore Way: The Missing Jigsaw of Professional Engineering Certification

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The structural integrity and the stability of buildings are as important as the buildings’ functionality, alongside user and occupier safety. To date, across many countries in Southeast Asia, there has been inadequate attention exercised in quality control during design and construction stages and the maintenance of buildings throughout their service life.

In this regard, Singapore’s overall construction and infrastructure sector stands out in terms of best practices and continual adherence to process improvements.

These standards are important learnings as the construction and infrastructure sector in Singapore – and the neighbouring Southeast Asian countries – continue to expand.

Many projections abound on continued strong growth of the construction and infrastructure sector despite recent economic challenges. This growth will be driven by infrastructure development in Malaysia, the need for key new public sector projects in Indonesia and the development of new facilities being carried out from ground-zero in Myanmar. All these have led analysts to forecast double digit growth a year for this sector over the next few years.

Need for More Construction Quality Standards

Alongside this rapid development, there has been growing focus on the development of construction quality standards. Some of these standards have been developed by the private sector, and in some cases, the authorities have instituted best practices. But to date, there have been a lack of uniformity in neither approach nor industry consensus across and within ASEAN.

Singapore stands out in this instance. The republic is a model example where the building/construction sector has implemented robust testing/inspection/certification procedures in design review, site supervision and mandatory checks in the post-construction period.

In the specific area of construction design in Singapore, it is now mandatory for construction projects to seek a design review of the Professional Engineer’s design by an Accredited Checker, who is one of senior standing in the circle of Professional Engineers. Without such a design review, any intended project would not be able to proceed to the next level.

This practice arose after one specific development, in particular, the collapse of Hotel New World in Singapore in March 1986. One of the key findings in the aftermath of the collapse was the discovery that the building’s structure was grossly under-designed. In that painful episode, the catastrophe could have been avoided and lives and the property could have been saved.

In 1989, authorities in Singapore instituted legislation which made it mandatory for construction projects in the republic to seek certified design reviews prior to the commencement of construction. Also arising out of the Hotel New World incident, independent construction supervision and Periodic Structural Inspections of buildings – after completion of construction – were also mandated in 1989.

These were mandated because of the findings in the Hotel New World inquiry that the construction quality of the building was very poor and there were plenty of warning signs indicating a possible collapse during the 13 years during which the building stood.

The empirical evidence of improvements in the construction industry after 1989, from our point of view, has been startling. In the 1990s, asmandatory periodic structural inspection commenced, it was not unusual to find some structural defects one in every 50 buildings inspected. Almost 25 years on, with design reviews and independent construction being mandated, we find some structural defects one in every 200 buildings.

This is an important key learning and impact in the aftermath of the Hotel New World incident, and a key takeaway for the construction industry in the region.

Design Review Certification – A Need for S’pore-type Standards in Southeast Asia

First, from our own estimate, even without a mandatory requirement for a certified design review, the cost of such a review is about 0.15% of the total construction cost of the project.

By undertaking a design review at such a fractional cost, it ensures safety and a peace of mind from the very conceptualisation of the project. By this very point, the building and construction sector in the Southeast Asian region (outside of Singapore) should strongly pursue a design review from the very conception of the project, even so when such a task in not mandatory.

By the very nature of seeking a certified opinion at the design review stage, it becomes an “insurance” for the structural integrity, building stability and user and occupier safety that is being sought after. Seen within this context, the quest for a certification becomes a small premium for which safety is far more assured.

Lack of Mandatory Testing During Construction in ASEAN

Second, having crossed the need for a professionally certified opinion at the design stage, another “insurance” policy step should be taken during the construction phase. Again, today in this region, there are no mandatory requirements for professional engineering certification during construction in most countries. However, instituting such a practice by industry would constitute best practice for the overall betterment of the sector and society.

Professional engineering testing and certification during construction is really about ensuring quality control at every step during the evolution of the building. Based our experience and estimates, the services of engaging such professionally certified engineers should amount to no more than 1% of the overall cost of a construction project. This is a small “premium” to pay for overall quality and safety.

Third, the area where certification should be sought as best practice pertains to the area of Periodic Structural Inspections (PSI). It is to be expected that building structures, over time, will have tell-tale signs or warning signs of distress – before a collapse happens. Conducting PSIs ensures early detection.

The reality is that, in most countries around the region, there is no requirement for PSIs. If structural defects go undetected, this may lead to a real risk of an eventual partial or full collapse. In this regard, there have been ample cases of building collapses around the world in the past few years, leading to a tragic loss of lives.

If certification has been conducted to the highest professional standards at the design, construction and post construction phases, then any subsequent rectification work becomes minimal. As a case in point, in a particular project undertaken by us in 1988, we encountered a situation where the structural instability of four residential blocks appeared to compromise the safety of residents.

If periodic checks had been conducted, the cost of instantaneous rectification would have been minimal. However, in the absence of these periodic assessments, the cost of repair and strengthening the constructed facility amounted to S$6 million.

To put this in a bigger context, the cost of rebuilding the 4 blocks should they have collapsed because defects were not detected early would have amounted to $60 million plus loss of lives.

The key here is really about the importance of seeking professional engineering certification, testing and inspection at the pre-, during and after construction phases. It constitutes best practice by the industry. It should be right thing to do

Today, there is understanding of the benefits but the trigger to implement certification and testing at every step is still lacking. Early detection of structural defects and carrying out remedial works will prevent excessive deterioration of structures. Early detection minimises the chances of expensive repairs and possibly even total collapse and loss of lives.

 

This article is contributed by Abhishek Murthy, General Manager of Bureau Veritas Singapo