Tighter Building Controls, Heavier Penalties

Sep 21, 2007

New rules passed include making licensing a must for contractors

A COMPREHENSIVE set of changes to building controls, passed in Parliament yesterday, aims to keep the construction industry on its toes.

This comes three years after the Nicoll Highway collapse exposed systemic flaws.

Builders will now be required to get themselves licensed, while underground work will be subject to tighter controls. Heavier penalties will also be imposed on those who flout the rules.

Outlining the changes yesterday, Minister of State for National Development Grace Fu stressed the need to raise standards at a time when the building industry faces a hike in construction demand.

The industry has an estimated $19billion to $22 billion of work this year compared to about $16.1 billion last year.

The changes have drawn mixed reactions from the industry, which acknowledged the need for greater professionalism and safety standards, but also questioned the heavier penalties.

There were also concerns that over-regulation might stifle the growth of certain firms.

Those who flout the rules would generally face stiffer penalties.

Someone who carries out building work without a permit, for example, would face a maximum penalty of a $200,000 fine and/or two years' jail, as opposed to half of each before.

This drew fire from Ms Lee Bee Wah (Ang Mo Kio GRC) yesterday, who felt the jail sentence should be scrapped altogether as the tighter rules would raise standards. Having jail sentences would deter newcomers from joining the industry, she said.

Ms Fu argued, however, that the penalties would serve to weed out bad hats. Similar legislation exists in Hong Kong, California and New York City, she pointed out.

Meanwhile, the licensing requirements for building contractors are expected to kick in by July next year.

Currently, only contractors working on government projects need to register with the Building and Construction Authority (BCA).

Under the new regime, builders will be issued licences based on their track record, financial health, as well as the qualifications and experience of key personnel.

Sole proprietorships, partnerships and limited liability partnerships, however, would be limited to jobs of up to $3 million.

Based on the BCA's records, more than 90per cent of its existing 2,500 general builders could qualify under the licensing scheme.

Temporary earth-retaining structures used during excavations will also need to be designed and reviewed by qualified experts, while specialists in geotechnical work will need to be involved for major underground building work.

The changes are expected to raise construction costs by just 0.06 to 0.1 per cent, estimated the BCA.

In Parliament yesterday, Ms Lee asked for the $3 million project value cap on smaller contractors to be raised, as many projects such as bungalows or upgrading work cost more than that these days.

When contacted, the president of the Singapore Contractors Association, Mr Desmond Hill, expressed similar concerns, adding that the cap may stifle the growth of these small firms.

But Ms Fu said the cap was reasonable, as it was adjusted to fit the capability of firms in that category. Raising the cap may make it harder for the builders to be licensed.

But Ms Fu agreed with a suggestion by Dr Muhammad Faishal Ibrahim (Marine Parade GRC) yesterday for the Government to work to improve the image of builders to attract more talent into this field.

Key features of changes to the Building Control Act

# General builders will need to be licensed. This is likely to be mandatory from July next year. Sole proprietorships, partnerships and limited liability partnerships, however, will be limited to jobs of up to $3 million.

# Specialist contractors, including those doing piling, earth-retaining work and structural steelwork, will also need to be licensed.

# A set minimum number of registered tradesmen must be deployed for large projects.

# Temporary earth-retaining structures used during excavations will be subject to the same checks as permanent structures.

# Site supervisors will have to be accredited and undergo continuous vocational training.

# Specialists in geotechnical work need to be involved for major underground building work.