Articles

19 December 2023

Calling for a more accountable approach to construction as the only way forward.

The construction industry is a critical component of the economy in the Asia Pacific or APAC region, including Singapore, providing jobs and opportunities for many people. However, growth in the industry also brings increased risks for delays, cost overruns, and construction-related claims. Therefore, it is essential to adopt a more responsible approach to building for the future.

In recent years, innovative construction consulting and project management have been instrumental in solving some of the most pressing issues in the APAC region. According to a recent report by the World Bank, the region is expected to see an increase in infrastructure investment of up to $5.36 trillion by 2025. Therefore, sustainable building practices, technology in construction, and improved project management are necessary to ensure that this investment is used effectively and efficiently.

One of the main concerns in the construction industry is its impact on the environment. Building materials, transportation of goods, and construction waste all contribute to carbon emissions, which in turn contribute to climate change. The industry needs to reduce its carbon footprint which is currently at 39% of global carbon emissions, by using sustainable materials, minimising waste, and utilising renewable energy sources whenever possible.

Singapore is a highly regulated country where construction projects must adhere to strict regulations and standards to support climate target to achieve net zero emissions by 2050.

Claims and Expert services help ensure that construction projects comply with these standards and regulations, thereby mitigating the risk. Combining innovative construction consulting and expert claims services is essential for resolving disputes that may arise during construction projects.

Using claims and expert services early on in a construction project can help to identify potential issues and disputes before they escalate, leading to a reduction in disputes, delays and cost overruns. On average, construction projects have a 12% likelihood of experiencing a major dispute, a 35% likelihood of experiencing a major delay, and a 30% likelihood of experiencing a major cost overrun. In contrast, projects that use collaborative contracting and claims and expert services early on have a much lower likelihood of experiencing these issues, with some studies suggesting reductions of up to 90%.

In conclusion, a combination of these expertise play a critical role in the construction sector of Singapore by ensuring compliance with regulations, mitigating risk, resolving disputes before escalated to formal litigation, and improving the quality of construction projects. By providing expert advice and guidance throughout the construction process, an accountable approach to construction can help ensure that projects are completed to a high standard, reducing the impact on the environment and mitigating risk, truly building for the future.

Contributed by:

Anand Anthony - Director, Claims & Expert Services, Drees & Sommer