KSH Holdings clinches S$126.8m deal to build condo at Sentosa Cove

Construction and property developer KSH Holdings has secured a S$126.8 million contract to build a condominium development at Singapore's Sentosa Cove.

The contract is the first of its kind to be awarded by Lippo Marina Collection for the construction of a luxury housing development at the site.

This will be the group's fifth high-end luxury residential property project at Sentosa cove. The deal will bring KSH holdings order book to S$770 million.

In the last four months, project contracts for the developer have added up to some S$354.4 million, in comparison to a total of S$510 million for 2007.

Work on the site is to begin this month and the project is expected to be completed by December 2010. - CNA /ls

Source : Channel NewsAsia - 17 Apr 2008

Recycling in construction sites

MATTHEW PHAN looks at what the building industry is doing to conserve water, energy and other resources

THE property market may have slowed, but the construction industry is still going at breakneck pace, with several national projects and plenty of private sector developments in the pipeline.

This is good for the economy, but perhaps less so for the environment - construction uses a lot of resources, such as concrete, steel, energy and water. How can builders mitigate this?

Water

Let's start with water. Builders typically buy Newater from PUB, and the cost can run to several hundred thousand dollars per project, according to Pek Lian Guan, director at Tiong Seng Contractors.

This is 'not high as a proportion of the total building cost' but is 'still a fair amount in absolute numbers', says Mr Pek.

Tiong Seng experimented with on-site water treatment and recycling in 2005 while working on City Developments' Parc Emily condominium.

It ended up saving 21 swimming pools of water, says Mr Pek. This is about half of what it would have used otherwise, according to the PUB, which handed Tiong Seng one of its inaugural Watermark awards last year.

At sites, Tiong Seng sets up a temporary drainage system to collect used water and rainwater, channelling the flows to a holding area, where the water is treated using a portable membrane-based plant.

Clean or treated water is used for plastering, or recycled for washing. Rainwater is also treated before being discharged.

Tiong Seng spent $120,000 on the Cleansea plant, supplied by waste-water treatment specialist Hydroxyl, and another $80,000 for on-site piping and collection systems.

Hydroxyl's plants are used in industrial facilities, but 'I met them and asked whether they could be used for construction sites', says Mr Pek. 'They custom-made a prototype for us to do an on-site trial run.'

Housed in a 3m by 3m container, the plant is easily transported by crane from site to site, Mr Pek says. But the on-site piping may not be re-usable as it gets damaged during the two-year construction process.

Tiong Seng also implements 'earth control measures', such as covering exposed soil with protective sheets to protect it from erosion, which is a common problem at construction sites, says Mr Pek.

Typically, erosion can lead to muddy, silty run-off with Total Suspended Solids (TSS) levels in excess of 200, compared with less than 50 for clear drinking water, he explains.

In comparison, water from the Cleansea plant achieves TSS levels of under 10. Ironically, Tiong Seng has to train its workers not to drink the plant's output, as the water is clear but may still contain biological contaminants.

Water conservation is another major area.

The level of use depends on the type and stage of construction, but there are typically two aspects of water use on a site, according to Simon Lee, executive director of The Singapore Contractors Association.

First, water is used in the wet works, or the concreting, plastering, testing for waterproofing and piping system, and while laying foundations. Second, water is used for site housekeeping, cleaning and washing, and at ancillary facilities like offices, living quarters or cookhouses.
On the whole, contractors manage resources by controlling their use, minimising waste and recycling where possible, says Mr Lee.

For example, it is normal practice to re-cycle water for the washing bay. Recycling makes 'economic sense' and 'has always been practised by the prudent contractors', though their input is 'mainly in the construction processes and temporary works', he says.

Prefabrication

In fact, sustainable construction starts at the design stage when the architects are thinking about what materials to use and how to put them together.

By using pre-fabricated components, or drywalls made partially of recycled material, builders can save water, energy and other resources.

Pre-casting, or offsite fabrication, means that not just beams and walls, but entire rooms, can be built in a factory, then transported to the construction site, where cranes fit them into buildings like Lego blocks.

'Pre-fab takes place under controlled conditions, which minimises waste and ensures quality,' says Vivien Heng, director at RSP Architects Planners & Engineers. 'There is no need to worry about assembly on site. It saves time and manpower, and the site is safer, neater and less noisy because there are fewer things happening', she says.

On the Tribeca project for City Developments, RSP is working with the contractor to use only pre-fabricated bathroom units (PBUs). 'A PBU comes to the site like a box - everything is sealed. You just need to connect the pipes', says Ms Heng.

Such units can also be designed using drywalls.

Made of gypsum, drywalls are used to finish the interior construction of walls or ceilings. They require no wet plaster, and can take just one or two days to install, compared to a week for masonry.

Although they weigh more than 85 per cent less than brick walls, drywalls can be insulated to achieve the same level of noise protection, according to the Building and Construction Authority (BCA).

Steel

As for structural frames, BCA has been encouraging builders to replace concrete with steel.

The latter requires no sand and has a very high strength-to-weight ratio, which allows for more flexible designs.

When connected by fasterners, steel frames are stronger than traditional systems, which allows savings on foundations and the crane capacity needed on site, according to BCA.

Steel frames are also easier and quicker to set up - which saves time on the construction site - and are fully recyclable.

Environmentalists may counter, of course, that steel manufacture is extremely carbon intensive. According to the Green Building Handbook: A Guide to Building Products and their Impact on the Environment, published in 2000, about three tonnes of carbon dioxide are emitted per tonne of steel if made from iron ore, and 1.6 tonnes of carbon dioxide if the steel is recycled.

Still, as most buildings in Singapore are high-rise, concrete or steel are pretty much the only two viable options, says RSP's Ms Heng.

Recycled concrete

Sustainable construction also involves recycling materials - and a lot of what is demolished is reusable.

Virtually all the metal content, for example, from the structural steel to the metal doors of electrical rooms, is recyclable, according to Tang Kok Thye of ADDP Architects.

The other parts - crushed concrete, bricks, metal, ceramic tiles, wood and plastics - are termed Construction and Demolition (C&D) waste.

This is typically used for building temporary roads at construction sites or to lay the sub-base course - the deepest of four layers - of a road.

But local studies show that C&D waste can be processed into recycled concrete aggregate (RCA) and substituted for natural granite, according to an article by Ho Nyok Yong and Kelvin Lee of Samwoh Corp.

Writing in the first issue of BCA's Sustainable Architecture newsletter, out this year, they also describe how to recycle asphalt pavements and incinerator ash.

By using RCA in place of natural granite when building roads, or in non-structural pre-cast concrete components like road kerbs and drains, contractors can save about 30 per cent, they say.

Overall, though, sustainability begins and ends with environmental consciousness and a sense of responsibility to use limited resources wisely, says RSP's Ms Heng.

She describes how the contractor on the Tribeca project - which is located near the Grand Copthorne Waterfront Hotel - picked up some discarded carpets and used them as noise insulation for his power generators. 'It's an innovative, zero- cost solution stemming from awareness and a recycling mindset,' she says.

Source : Business Times - 15 Apr 2008

Hard Rock Hotel contract awarded

GENTING International has awarded a $340 million contract to Singapore-listed Low Keng Huat (S) Ltd to build the Hard Rock Hotel at Resorts World at Sentosa (RWS).

The latest construction award brings the tally of construction contracts to over $1 billion.

The Hard Rock Hotel will be the first and only such hotel here. It is also one of six hotels at the $6 billion RWS development.

Expected to open in early 2010, the Hard Rock Hotel will have 360 keys (rooms), including nine suites and 351 rooms.

It will also have conference facilities, more than 20 meeting rooms and a large column-free ballroom with seating for 7,300 guests.

Michael Chin, executive vice-president of projects at RWS, said that Low Keng Huat was selected from a tender exercise which drew ’several bids’.

He added that the construction of the resort is entering a new phase in which the superstructures such as the hotels will be built.

‘Low Keng Huat’s proven track record and expertise in building construction and property development, especially in hospitality-related sectors, were the key factors in our selection,’ Mr Chin said.

One of the challenges in the construction of the Hard Rock Hotel will be the ballroom.

Low Keng Boon, managing director at Low Keng Huat, said the difficulty in constructing the ballroom lies in the fact that it is completely column-free, without the support of beams for a foundation.

With a floor area of 6,500 sq m and at a height of 11m, Mr Low explained that extremely large trusses will have to be specially manufactured to withstand the weight of the entire structure.

RWS will have some 1,800 rooms, spread across its six hotels of varying themes. Topping the list are Maxims Residences, Hotel Michael and the Hard Rock Hotel.

Source : Business Times - 9 Apr 2008

KSH wins $53m KepLand deal

CONSTRUCTION and property group KSH Holdings has secured a contract worth about $53 million from a Keppel Land subsidiary.






The contract from Keppel Land Realty is for the construction of Madison Residences, an 18-storey luxury condominium development at Bukit Timah Road.

Construction work is scheduled to begin in June and expected to be completed within 130 weeks.

Choo Chee Onn, executive chairman and managing director of KSH Holdings, said: ‘Including this contract, our total contract value secured within the first three months of this year has exceeded $277 million, more than half of the $510 million we had achieved for 2007.’

Existing orders now stand at more than $658 million, with the unfulfilled contract value for all existing contracts on hand expected to cover up till the third quarter of the financial year ending March 31, 2011.

Mr Choo added that KSH would continue to expand its clientele base to include more blue-chip property developers.

Besides the Madison Residences deal, the group’s current residential contracts include three at Sentosa Cove. These include the $121 million The Coast contract and the $65 million Turquoise contract, both from Ho Bee Group.

The third, Seascape At Sentosa Cove, was awarded by Seaview (Sentosa), a co-owned company of Ho Bee and IOI Group.

Other residential projects on hand include a $53 million high-end condominium residential project at Orange Grove Road, also from Ho Bee, and a $32 million contract for the construction of landed housing at Old Holland Road from developer Brisbane Development.

Source : Business Times - 3 Apr 2008

UE wins $85m job at Marina Bay Sands IR

UNITED Engineers Ltd (UE) said yesterday that its wholly owned unit United Engineers (Singapore) (UES) won a contract worth $85 million to provide electrical services for the hotel development at the Marina Bay Sands Integrated Resort (IR).

The contract was awarded by Ssangyong Engineering & Construction Co Ltd to engage UES as a nominated sub-contractor and came amid a slew of contracts generated by the construction of the two integrated resorts here.

Artist Impression of Marina Bay Sands Integrated Resort

Under the terms of the agreement, UES will supply, deliver, install, test and commission all electrical installation for the hotel. The work is expected to start in the second quarter this year and be completed by the fourth quarter of 2009.

The contract is expected to have a positive impact on the earnings of the group in future, UE said in a statement.

UES is an engineering company with competencies in the procurement and instrumentation of mechanical and electrical works. It has been involved in other major projects such as ION Orchard and Singapore's wastewater projects - the Changi Water Reclamation Plant and Choa Chu Kang Waterworks.

The development of the two integrated resorts here have proven to be a boon for some Singapore firms so far. Last month, another electrical engineering firm, TEE International, was awarded the contracts for North and South Podium electrical installation for the Marina Bay Sands IR for a total sum of $109.01 million.

Among the recent contracts given out, Sembawang Engineers and Constructors was also awarded a $400 million contract by Marina Bay Sands Pte Ltd to build the North Podium comprising the casino, theatres and retail arcade.

As for the other IR, Resorts World at Sentosa (RWS), communications design and production firm Kingsmen Creatives secured a $14.5 million deal last month to build props and show sets for the Universal Studios there, which is a major feature of the resort being built by RWS, a subsidiary of Genting International.

Source : Business Times - Apr 2008

Workplace fatalities drop but construction boom may see rise in accidents

The number of deaths at the workplace went down by 22 per cent in 2007, compared to the previous year.

This is according to a report released by the Workplace Safety and Health Advisory Committee.

Despite the drop, industry players caution that the boom in the construction industry may mean more workplace-related accidents.

When the crane tower collapsed at the National University of Singapore last month, three were killed and two were injured.

Investigations showed that this could have been avoided if contractors and operators had followed safety regulations.

And that's the main message from the Workplace Safety and Health Advisory Committee.

It said the number of fatalities at the workplace dropped from 45 in 2006 to 35 in 2007, in key priority areas.

But this downward trend could be reversed given the construction boom.

Heng Chiang Gnee, Deputy Chairman-designate, Workplace Safety and Health Council, said: "A key aspect is also in the area of building a culture that is very much linked to having a safety mindset. So as we move towards a situation where the culture becomes more appropriate, the safety management statistics would reflect a higher level of maturity."

And one step in that direction is reporting the accidents because this is often not done.

Mr Heng continued: "If it's done intentionally, then I think the authorities ought to address it differently. If it's done unintentionally because of ignorance and so on, then the approach would be to educate them.

"It is important for us to actually get accurate data, because it is through such accurate data, that the advisory committee can then look at what are the actions that would be needed to basically address and focus on the right area."

"The approach towards reporting - there is a certain format that they would have to adopt. Let's say defining what accidents are reportable, and what are not reportable. And I think if you were to take the safety management philosophy a bit further, companies themselves ought to actually address near-misses."

Currently, the Workplace and Health Safety Laws stipulate that employers who fail to report accidents as required by regulations could be fined up to S$5,000 for a first offence.

Repeat offenders may be fined up to S$10,000 and jailed up to six months.

Meanwhile, under the new Work Injury Compensation Act which takes effect on 1 April, another 850 thousand employees will be covered and the payouts will be higher.

Currently, the Workmen's Compensation Act only benefits manual workers who earn less than S$1,600 a month.

But with the new Work Injury Compensation Act, all workers will be covered regardless of their pay-cheques or line of work.

However, uniformed personnel and domestic workers will not be covered under the new Act.

So families of workers who died on the job will receive payouts ranging from S$47,000 to S$140,000.

That's up from S$37,000 to S$111,000 under the old Workmen's Compensation Act.

Workers who are permanently disabled will now receive between S$60,000 to S$180,000, up from S$49,000 to S$147,000.

The Work Injury Compensation Act will also cover 95 per cent of hospital charges up to a cap of S$25,000.

Employees can now also make claims for injuries sustained during work under different employers and for work done overseas. - CNA/vm

Source : Channel NewsAsia - 25 Mar 2008

Home makeovers hard hit by price hikes

Spike in building material prices, labour crunch pushing renovation costs up by 20% this year

PLANNING to renovate your home? If so, be prepared to pay 20 per cent more.

Construction costs - for both big projects and home renovations - have risen due to a rise in raw material prices and labour costs. And they are expected to increase even more this year.

ESCALATING PRICES: The cost of reinforcing steel bars has increased by about 60 per cent in the span of one year, while cement prices have gone up by 30 per cent. -- ST PHOTO: DESMOND LIM

Industry experts say overall construction costs are expected to rise by another 15 to 20 per cent this year - following a 40 per cent spike in the last two years.

A global spike in raw material prices, and a construction resources and manpower crunch here, are to blame for the relentless rise, say market players.

In particular, prices of reinforcing steel bars - used extensively in construction - have soared 64 per cent from $753 per tonne in January last year to $1,235 this January, according to data from the Building and Construction Authority (BCA).

Rising global demand for steel, fuelled by a building boom in developing countries such as China, India and Vietnam, is pushing prices up sharply.

The price of cement rose 30 per cent to $117 per tonne in the same period.

Consumers' pockets are hard hit by the price hikes. Contractors say home owners now have to fork out up to 20 per cent more for renovation works.

Renovating a 110 sq m five-room HDB flat, for example - which would have cost $80,000 at most at the start of last year - would now mean forking out $100,000, said contractor Steven Koh, 51, of Colorado Design.

But there is good news: the extra cost of building a new home is unlikely to be passed on to flat buyers.

Real Estate Developers Association of Singapore executive director Chia Hock Jin said developers cannot simply pass on the costs: 'It's the market that determines the prices.'

Given the recent cooling of the property market, price hikes for homes are also unlikely.

Local developer Frasers Centrepoint Homes said it has partly absorbed the rising costs and has also tried to mitigate them by adopting more efficient ways of building and securing raw material in bulk.

Construction costs typically make up 20 to 25 per cent of the total cost of a development, with the bulk coming from land cost, said Mr Seah Choo Meng, executive chairman of quantity surveying firm Davis Langdon & Seah Singapore.

Meanwhile, main contractors are starting to feel the pinch, with price rises eating into their profit margins. Wacon Construction & Trading, hired for a $5million spruce-up of MacRitchie Reservoir, was recently reported to have gone bust due to the hikes in raw material prices.

Mr Simon Lee, executive director of the Singapore Contractors Association Limited, said contractors had only a small margin in factoring such rises into building tenders.

One source of relief is the stabilising prices of sand, granite and concrete. BCA's latest data show prices of these materials are easing, after an artificial spike following Indonesia's abrupt ban of land sand exports last February. Still, compared to January last year, these prices have escalated and, in some cases such as sand, even doubled.

Mr Lee said there was concern that developers were slow in paying contractors, especially those affected by the sand ban, which might exacerbate contractors' cash-flow problems.

Mr Seah said he does not expect the construction crunch to abate, predicting that constructing demand will go up to $27 billion this year.

Source : Straits Times - 21 Mar 2008

Stress test for builders as steel price soars

The price of steel has almost doubled since January 2007 and this could come in the way of the construction industry's quest to reduce its dependence on concrete.

In Singapore, industry players report that the price of both steel reinforcement bars (rebars) and structural steel has gone up by around 80-100 per cent over the past 15 months. This comes on the back of higher global demand and hikes in the costs of the raw materials used to make the metal.

The development is a setback for the construction industry, which was veering towards using more steel to reduce dependence on concrete, which is more prone to supply-side shocks.

'In the last 15 months, steel prices (steel rebars and structural steel) have gone up by about 80 per cent,' said Jackson Yap, chief executive of United Engineers.

Brandon Lye, assistant vice-president for Sembawang Engineers and Constructors, similarly said that steel prices have doubled over the past 18 months.

Data provided by industry regulator Building and Construction Authority (BCA) shows that the price of 20mm-high tensile steel was $752.50 a tonne in January 2007.

But by January 2008, the price had climbed to $1,235.46 a tonne - a rise of some 64 per cent. The price continued to climb in February and March, industry players said.

On the back of this, the proportion of steel cost against total construction cost has gone up from about 10 per cent to 15 per cent over the same period, Mr Yap said.

One reason for the steel price hike is increasing global demand, said Bernard Chung, second vice-president of the Singapore Structural Steel Society.

Macquarie Research's data shows that global steel consumption rose from 1.24 billion tonnes in 2006 to 1.33 billion tonnes in 2007. Demand is expected to continue growing in 2008 - Macquarie Research forecasts global steel demand of 1.43 billion tonnes for this year.

Mr Chung said the demand is being driven by developing economies such as Brazil, Russia, India and China. He said that these four countries alone accounted for about three-quarters of demand growth between 1997 and 2006.

Similarly, Macquarie Research said that China accounted for 62 per cent of world demand growth from 2000 to 2007.

Steel prices have also been pushed up by large rises in the costs of raw materials, industry players said.

'The cost of components used to make steel - iron ore, scrap, coking coal, coke, freight and electricity - have also gone up,' Mr Chung said.

Macquarie Research said that steel mills are expected to pass through large rises in raw material costs in 2008, which could add around US$150 per tonne to steel costs. Add this to price increases brought on by surging demand, and the overall price of steel could climb even more this year, analysts said.

In Singapore, increases in the price of steel could impact the industry's move towards using more steel for building.

BCA, for example, has been encouraging more extensive use of steel for construction since Indonesia banned the export of concreting sand in January 2007. Land sand is used to make concrete.

'Rising steel prices will slow down the drive towards the use of more steel for sustainable construction,' said United Engineers' Mr Yap.

BCA, however, pointed out that the prices for both ready-mixed concrete and steel have increased by about 60 per cent, which means that the situation has not changed that much in terms of cost competitiveness.

'However, steel is more readily available from many sources as compared to sand and granite,' a BCA spokeswoman said.

And where faster 'time-to-market' is required, developers will still continue to use steel, Mr Yap said.

Source : Business Times - 24 Mar 2008

Sprucing up of reservoir park halted

NATURE lovers and fitness buffs may have to wait at least nine more months before they can enjoy some of the new visitor-friendly facilities at the MacRitchie Reservoir.

A $5 million MacRitchie spruce-up, the first phase of which was slated for completion this month, came to a stop when the contractor - Wacon Construction & Trading - went bust.

The project is the brainchild of the National Parks Board and PUB, the national water agency.

According to PUB's director of best sourcing, Mr Moh Wung Hee, construction work came to a virtual halt two months ago. Mr Moh said the PUB has since terminated its contract with the company for failing 'to make satisfactory progress on the project'.

The upgrade was part of PUB's Active, Beautiful, Clean Waters (ABC) programme to spruce up Singapore's reservoirs and rivers.

It was meant to provide MacRitchie with new features such as shower facilities, a specially designated warm-up area and a two-storey carpark that would double the number of lots.

In the meantime, PUB said it will be calling for a new tender this month to find a replacement contractor. It aims to complete construction of the carpark by the end of this year, while the other new amenities are expected to be up and running by next October.

When contacted by The Straits Times, MrOng Say Kiat, who is managing director of Wacon Construction, declined to talk about the MacRitchie project, but blamed rising operation costs as the main reason for his company's financial troubles.

He said: 'My company had to fold because of the price increase in raw materials, especially sand.'

Sighing, Mr Ong added that it was 'a heartache' to see the company that he had built collapse.

He declined to reveal how much debt his company was in, or if there were other projects that had also been put on hold.

However, The Straits Times understands that several companies have taken legal action against Wacon Construction this year for slightly over $1 million in money that they said was owed to them.

Three other companies are also taking Wacon Construction to court for alleged debts amounting to more than $83,000.

Back at MacRitchie, some regulars were disappointed when told of the delay.

Mr Bernd Nordhausen, 46, who jogs at MacRitchie regularly, said he was annoyed as the delay would mean that the problem of finding a parking lot, especially on weekends, would continue longer than expected.

'A bigger carpark is desperately needed. It has already been about 14 months since the upgrading began. That's just too excessive,' he said.

Another regular jogger, Mr Surinder Singh, 50, said of the delay: 'It has caused a lot of inconvenience because everyone was looking forward to the facilities, especially the showers. Now it's, 'Oh, suddenly stop!''

But Mr Singh conceded that unforeseen circumstances cannot be helped.

'Hopefully we can expect quick action from PUB,' he said.

Source : Straits Times - 14 Mar 2008

MacRitchie facelift stalled

The wait for shower facilities and more carpark spaces at MacRitchie Reservoir — the first phase of which was scheduled for completion the end of this month — has just gotten longer.

According to the PUB, the construction work for the $5-million makeover would be delayed for at least another nine months after the construction work on the carpark "has virtually stopped in the last two months".

Artist's impression of how the new green carpark will look when it is completed (PUB picture)

The contractor, Wacon Construction, is understood to be undergoing financial difficulties due to the rising costs of raw materials including sand. It is facing several lawsuits from creditors.

First announced in October 2006 as part of the PUB's Active, Beautiful, Clean Waters programme to spruce up Singapore's waterways, the project would equip MacRitchie with new features, including shower facilities, a designated warm-up area and a two-storey carpark that would double the number of parking lots.

PUB's director for best sourcing Moh Wung Hee said it has terminated the contract with Wacon and would be calling for a new tender by the end of the month. Mr Moh added that the PUB "aims to complete the construction of the carpark by the end of the year and the amenities centre by next October".

In 2003, the tendering system for public projects was tightened after a couple of Housing and Development Board projects — an upgrading project in Marine Terrace and the building of flats in Sengkang — were stalled.

Among the new rules introduced then was the empowerment of the Building and Construction Authority to audit the financial status of contractors more frequently, to act as an early-warning system against contractors in danger of insolvency. - TODAY/fa

Source : Today - 13 Mar 2008

Order book swells for KSH and Lian Beng

KSH bags $121m Sentosa condo job; Lian Beng nets two deals worth $90m

RIDING the continuing boom, two construction firms announced big contracts yesterday.

KSH Holdings said it has won a contract worth more than $121 million for the construction of a luxury condominium, Seascape at Sentosa Cove, which is jointly owned by Ho Bee Investment and IOI Land.

And Lian Beng Group said it has been awarded two contracts worth $90.2 million in total - one from Voda Land for the construction of a condominium, Amber Residences, and the other for an industrial building at Paya Lebar iPark, awarded by Scorpio East Properties.

KSH said the Sentosa contract brings its construction order book to more than $614 million. Work on the 151-unit Seascape is scheduled to start next month and is expected to be completed in 28 months.

'This is our fourth high-end residential project at Sentosa Cove since The Berth By The Cove and The Berthside, which were awarded in June 2004 and completed in October 2006, and the fifth for us here including One°15 Marina Club,' said KSH executive chairman and managing director Choo Chee Onn.

KSH's order book has grown more than 162 per cent in less than 16 months, Mr Choo said.

Lian Beng said its two contracts bring its order book to about $700 million.

The Amber Residences contract is worth $73.5 million while the design-and-build contract for the building at Paya Lebar iPark is worth $16.7 million. Work on Amber Residences is expected to start in May 2008 and will be completed over 30 months, while the other contract is expected to be completed by early 2009.

Both companies are gunning for more contracts. 'The demand for construction services is still very strong, and there are many more projects out there for tender,' said Lian Beng's managing director Ong Pang Aik.

Analysts agree, saying that even as the property market takes a breather, the construction sector continues to recover, driven by a new phase of nationwide projects.

'We are still sanguine about the sector's prospects, given the development plans in place for the island, and the visibility it offers against the backdrop of uncertainty tainting the global economy,' Phillip Securities analyst Stella Tan said in a recent note.

KSH shares gained 1.5 cents to close at 41.5 cents yesterday, while Lian Beng's stock rose half a cent to close at 40.5 cents.

Source : Business Times - 13 March 2008

KSH Holdings secures $121m luxury condo development contract

KSH Holdings has secured a S$121 million contract to construct luxury condominium development Seascape at Sentosa Cove.

This project puts its order book at more than S$614 million.

The contract was signed by the construction, property development and management group's subsidiary Kim Seng Heng Engineering Construction. The deal was awarded by Seaview, a company co-owned by Ho Bee Investment and IOI Land Singapore.

The project will have two blocks of 8-storey residential flats. Comprising 151 units, the condominium development comes with attached attics, a basement car park, swimming pool and communal facilities.

Construction work is scheduled to commence in April 2008 and expected to be completed within 28 months. - CNA /ls

Source : Channel NewsAsia - 12 Mar 2008

Construction firm Lian Beng wins S$90.2m worth of contracts

Singapore construction firm Lian Beng Group has won two contracts worth a total of S$90.2 million.

The first is a S$73.5 million contract to build a 21-storey freehold condominium Amber Residences along East Coast Road. The building contractor also sealed a deal worth S$16.7 million to build a 7-storey industrial building at Paya Lebar i-Park.

Work on the projects will begin in May and expected to be completed by November 2010.

Lian Beng says its total orders now stand at some S$700 million.

In January, Lian Beng partnered LaSalle Investment Management to acquire Emerald Mansion for redevelopment for S$148 million. - CNA /ls

Source : Channel NewsAsia - 12 Mar 2008

Construction sector seen to lead this year's growth

The construction industry is expected to lead Singapore's economic growth this year, according to 19 economists polled in the latest quarterly survey by the Monetary Authority of Singapore (MAS).

They projected an expansion of 15.9 per cent for the construction sector this year, up 2.4 percentage points from the forecast in the previous MAS survey in December.

Analysts Channel NewsAsia spoke to, shared their optimism.

OCBC Bank's vice-president for treasury research and strategy, Emmanuel Ng, said: "There are still certain sectors expected to exhibit resilience this year - those that are largely less exposed to external weakening. We look to construction, financial services, as well as wholesale and retail."

UOB's economist, Ho Woei Chen, said: "There's still building on the IRs (integrated resorts), Marina Bay Financial Centre, Sports Hub in Kallang. There's still a lot of road projects going on, this will keep the construction sector growing by double digits this year."

The construction sector grew 20.3 per cent last year.

In the MAS survey, economists also revised upwards their growth expectations for the financial sector, to 9.5 per cent, due to support from strong loans growth in January.

UOB's Ho Woei Chen said: "Financial sector is another bright spot, based on survey results. The sector will continue to see strong growth this year, but will be lower than 17 per cent we saw last year. There's support from loans growth, which we saw coming in quite strongly in (the) month of January."

However, analysts expect growth in the manufacturing and hotels & restaurants sectors to slow due to rising oil prices and a slowdown in the US economy.

OCBC Bank's Emmanuel Ng said: "Between the last survey in December and now, I think the situation in the US macro picture has deteriorated significantly, especially from the non-farm numbers last Friday. As a result, I think markets have revised down their expectations for US growth profile."

On inflation in Singapore, economists surveyed said they expect consumer prices to rise to a median 5 per cent this year, against last year's 2.1 per cent.

They also expect the central bank to keep to its current monetary policy of allowing the Singapore dollar to appreciate gradually.

UOB's Ho Woei Chen said: "There's some speculation of Singdollar tightening in April. We see some possibility of that, but we have to take into account growth risk, going forward. It may not be a good idea to have Singdollar strengthening too excessively given that we are seeing some slowdown in external growth... this could hurt export sector further."

The Singapore economy is expected to grow by between 4 and 6 percent this year, based on official forecasts. - CNA/ir

Source : Channel NewsAsia - 10 Mar 2008

Poh Lian wins S$202m building contract from UOL Development

Poh Lian Construction, a unit of United Fiber System, has won the building contract to redevelop a site formerly known as Green Meadows condominium along Upper Thomas Road.

The contract, awarded by UOL Development, is worth about S$202 million.

The award of the project has boosted Poh Lian’s order book to a new record of S$550 million, up 58 percent since January 31.

Poh Lian said the latest contract is expected to contribute positively to the group and is expected to have a material impact on its current year’s results.

Details of the contract are still being finalised.

Poh Lian said it will disclose the financial impact on the group’s net tangible assets and earnings per share at a later date.

Source : ChannelNewsAsia - 6 Mar 2008

Punj Lloyd Singapore unit sees orders triple

Sembawang Engineers & Constructors, a unit of India's Punj Lloyd, said yesterday its orderbook has tripled from a year ago on a construction boom in Singapore.

The strong demand helped Singapore's largest construction firm by sales raise its orderbook to $2.1 billion and boosted gross profit margins to 7-8 per cent from 1-1.5 per cent in 2006, said chief executive Alwyn Bowden.

'We're concentrating on infrastructure projects because these are bigger and more challenging, and are higher profile,' Mr Bowden told Reuters in an interview.

He said that while demand for building homes and offices is expected to slow amidst an easing property market here, the impact is 'negligible', offset by major infrastructure investments in its key target markets of Singapore, India, and the Middle East.

These projects will not be derailed by fears of a global slowdown sparked by an ongoing credit crisis, due to strong economic growth in India and a spike in oil prices that are boosting Middle East coffers, he said.

Currently Singapore makes up 80 per cent of the firm's orderbook. But the company aims to reduce that share and split its sales three ways between South- east Asia, India, and the Middle East.

'We only need to grab a relatively small share of that market, to already be headed towards the same sort of levels of revenues that we achieve here and in South-east Asia,' he said.

Shares in Punj Lloyd, India's fifth-biggest builder, slid 6 per cent yesterday to take losses for the year to 41 per cent, underperforming an 18 per cent fall since December in the broader Bombay market.

Sembawang is currently involved in a number of high-profile projects here, including casino resorts - the Marina Bay Sands and Resorts World at Sentosa - as well as a contract to build part of a new subway line. -- Reuters

Source : Business Times - 6 Mar 2008

UE’s net profit up 5-fold on revaluation gains

CONSTRUCTION and property company United Engineers (UE) said yesterday that its net profit rose five-fold to $176.2 million for 2007 - from 2006’s $34.83 million - on the back of revaluation gains.

UE saw a fair value gain of $186 million on the value of UE Square, as well as fair-value adjustments and gains from the divestment of investments.

Revenue for the year fell 12 per cent to $539.8 million, from $614.1 million the year before. The company’s engineering and construction (E&C) division - from which it made most of its revenue in 2006 and 2007 - reported a 21 per cent slide in revenue to $405.9 million in 2007.

UE said that yearly comparisons of E&C results are not meaningful as progress billings vary from project to project.

The group’s integrated facility management division, which includes property development, lifted revenue 19 per cent to $138.1 million in 2007. This was mainly due to higher rental income and occupancy in an improving economy, UE said.

Earnings per share rose to 80.4 cents, from 16.1 cents in 2006.

The company has declared a dividend of 10 cents a share for 2007, comprising a normal dividend and a special dividend of five cents each. It will also pay a dividend of 7.5 cents for each preference share.

UE, which had an order book of $1.1 billion at end-2007, said that it will continue to carry out large building and infrastructure projects in Singapore and the region in 2008.

‘Additionally, the rapidly developing economies of China, Middle East, Indonesia and Vietnam are expected to contribute to the region’s strong demand for infrastructure development,’ UE said.

UE’s shares closed 12 cents up at $3.84 yesterday.

Source : Business Times - 1 Mar 2008

More time needed to build taller flats

I REFER to the letter, ‘Speed up construction of build-to-order projects’ by Ms Chua Hwee Hoon (Feb 11).

Ms Chua booked a flat at Telok Blangah Towers under the October 2007 Build-to-Order (BTO) exercise. More time is needed to complete the construction of these blocks as they are double the height of typical blocks. This is why the estimated completion date was indicated at July 31, 2013.

But, we will try to complete the project as quickly as possible, so that buyers can take possession of their flats sooner. The estimated completion date is regularly updated on HDB’s website and Homelink hotline to help buyers plan ahead.

We have studied the feedback received from those who were unsuccessful in HDB’s sales exercises. The majority of those who were unable to select their choice units had applied for flats in the more popular mature estates, where land for building new flats is limited.

Such applicants would enjoy better chances of success if they were to cast their net wider and consider buying a flat in the newer towns like Punggol and Sengkang, where more new HDB projects are launched.

Those with urgent housing needs can also consider the resale market where there is a wide range of units offered, and eligible first-timers can enjoy a CPF Housing Grant of $30,000/$40,000.

Kee Lay Cheng (Ms) Deputy Director (Marketing & Projects) For Director (Estate Administration & Property ) Housing & Development Board.

Source : Straits Times - 21 Feb 2008

Plan to defer public works will have little impact: report

CONSTRUCTION industry experts are seeking to play down the significance of the government's moves to ease the pressure on the industry's costs.

The government is intending to defer an additional $1 billion worth of public-sector projects to help the industry - a move that follows the decision last November to postpone $2 billion worth of projects.

A report by construction cost consultancy Rider Levett Bucknall (RLB) said that the deferring of public-sector projects 'is expected to have a limited impact on relieving construction demand as it will represent around 10 per cent of annual demand'.

Latest estimates by the Building and Construction Authority value construction contracts awarded this year at up to $27billion.

RLB's latest figures for its tender price index shows that it also increased by 23 per cent as at the end of the third quarter last year. It said that rising construction costs are attributed to increased costs of foreign construction labour and professional expertise, materials and equipment costs, as well as on- and off-site overheads.

Indicative construction costs of an office building in the CBD of up to 41-55 storeys is between $353- $438.5 psf of gross floor area (GFA).

The construction costs of a luxury condominium is between $325.2 and $441.3 psf of GFA, while a five-star hotel will cost between $464.5 and $627 psf of GFA to build.

Good quality retail space costs $311-$367 psf of GFA to build.

In terms of key construction materials, concreting sand has shown the highest year-on-year increase, jumping 160.3 per cent as at November 2007. The price of granite aggregate increased by 32.1 per cent in the same period while the price of ready mix concrete increased by 71.4 per cent.

However, RLB noted that prices did generally 'moderate to a downward trend' for the second half of 2007, the period that coincides with the start of the US sub-prime loans crisis and the global credit crunch.

Indeed, RLB added: 'Whilst the Singapore construction market will be somewhat buffered in the short term by existing development commitments within the domestic market, it will be difficult to predict the impact of the global financial crisis in the medium run.'

RLB does believe that on the back of rising crude oil prices and growing building activity particularly in the Middle East, China and India, price gains are anticipated for the first half of 2008.

Citing other industry sources, RLB said that world steel demand is forecast to reach over 1.45 million tonnes in 2011, which represents an 88 per cent growth in the ten years from 2001.

'However, a slowdown in the rate of demand growth is anticipated towards the end of the current decade,' it added.

Source : Business Times - 21 Feb 2008

Hock Lian Seng wins circle line Marina Bay station contract

The civil works contract (C901) for the Circle Line Marina Bay Station has been awarded to Hock Lian Seng Infrastructure (Pte Ltd).

The S$348.4 million contract is for the construction and completion of the Circle Line Marina Bay Station and tunnels.

It includes alteration and addition works to the current North South Line (NSL) Marina Bay station, diversions of the East Coast Parkway and demolition of a vehicular underpass.

The 2.4-kilometre extension will be fully underground and is scheduled for completion by 2012.

The Marina Bay station is a new station on the Circle Line.

It will be an interchange station that will connect the Circle Line to the present North South Line. - CNA/de

Source : Channel NewsAsia - 21 Feb 2008