{"id":121599,"date":"2021-08-23T02:19:52","date_gmt":"2021-08-22T19:19:52","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/town-council-upgrading-projects-scaled-down-or-delayed-due-to-hike-in-construction-costs\/"},"modified":"2021-08-23T11:14:18","modified_gmt":"2021-08-23T04:14:18","slug":"town-council-upgrading-projects-scaled-down-or-delayed-due-to-hike-in-construction-costs","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/town-council-upgrading-projects-scaled-down-or-delayed-due-to-hike-in-construction-costs\/","title":{"rendered":"Town council upgrading projects scaled down or delayed due to hike in construction costs"},"content":{"rendered":"


\nTown council upgrading projects scaled down or delayed due to hike in construction costsConstruction and renovation costs have increased by 20 to 50%, resulting in town council upgrading projects being scaled down or completion timelines being\u00a0delayed by several months.
\nWith construction and renovation costs up by 20% to 50% due to the manpower crunch facing the construction industry, Members of Parliament (MPs) revealed that upgrading projects at their ward have been scaled down or delayed.
\nBukit Panjang Single Member Constituency (SMC) MP Liang Eng Hwa said some of the upgrading projects at his ward have been delayed by \u201ca few months\u201d as construction costs for such projects rose by 10% to 35%, reported TODAY.
\nHowever, he noted that the delay for essential projects, like barrier-free access for wheelchair users, cannot be too prolonged.
\n\u201cSome (projects) we still have to carry out, even though the cost is higher,\u201d he said as quoted by TODAY.
\nIn July, MacPherson SMC MP Tin Pei Ling raised the issue of increasing construction and renovation costs in Parliament, asking how the pandemic impacted construction costs within the city-state.
\nShe also asked how the hike affected public estate construction and upgrading projects.
\nMinister of State for National Development Tan Kiat How explained that the increase in construction costs was due to higher foreign manpower costs as border restrictions limited the inflow of foreign workers into Singapore.
\nHe also attributed the increase in construction cost to reduced productivity due to the implementation of safe management measures at work sites as well as to the higher cost of construction materials.
\nNonetheless, Tan assured that the hike in estate upgrading work costs will not be passed down to homeowners.
\nFor neighbourhood renewal programmes (NRPs), he said that town councils were encouraged to \u201cwork within budget and reduce upgrading items if necessary\u201d.
\nMP Tin shared that for her ward\u2019s NRP, the lowest bid by a construction company for the project came in higher than they had expected.
\n\u201cIf we were to still keep to the budget, we would have to eliminate some of the items planned under the NRP,\u201d she said, noting that the project\u2019s scope may be slashed by a third.
\n\u201cThe NRP was really meant to either address some of our residents\u2019 requests over the years or to make sure that the environment is better for residents of all ages\u2026 it will be painful if we have to strike off too many items,\u201d she added as quoted by TODAY.
\nOver at Radin Mas SMC, the construction costs for projects there also increased by 30%, said MP Melvin Yong.
\nHe revealed that the upgrade of the ABC Brickworks Hawker Centre has been delayed by a month, and he had appealed to the Building and Construction Authority as well as the Ministry of Trade and Industry to resume construction work at the site.
\nThe NRP at Bukit Merah View was also delayed by about eight months, according to Tanjong Pagar GRC Joan Pereira.
\nEast Coast GRC MP Jessica Tan said the progress of the Home Improvement Programme (HIP) at her Changi-Simei ward was delayed \u201cby several months\u201d due to the implementation of safe management measures.
\nThe HIP aims to improve the internal living environment of HDB homeowners by addressing some common maintenance issues facing older flats, such as spalling concrete.
\nMeanwhile, some MPs decided to postpone the projects at their wards in hopes that construction costs will decline over the coming months as the COVID-19 situation stabilises.
\nTampines GRC MP Desmond Choo said upgrading works at Tampines Round Market and Food Centre as well as at his ward\u2019s Community Club were pushed \u201cfurther down the pipeline\u201d as he believes the hike in construction costs will be short term.
\n\u201cIt is a block of 12 to 15 months whereby production of (construction) materials slowed down, so it\u2019s much better to avoid this period of time,\u201d he said as quoted by TODAY.
\n\u201cOnce we have reached a much higher level of vaccination, this will give construction companies more stability, and we can see if we can bring forward some projects.\u201d
\nMP Tin also hopes costs will drop once the COVID-19 situation stabilises.
\n\u201c(The increase in construction cost) is caused by macro factors that are beyond everyone, we understand that fully, so we will just hold back the project for now, see whether things stabilise,\u201d she said.
\n\u201cIf we proceed now, there are too many items that we have to take out (so) we\u2019re postponing for a bit and see whether the cost will come down or not.\u201d
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nCheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email:\u00a0cheryl@propertyguru.com.sg.\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Town council upgrading projects scaled down or delayed due to hike in construction costs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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