Consider local contractors for MRT projects

[chialc88]

Consider local contractors for MRT projects - Today by Chin Kee Thou

I am disappointed to read about the 3 foreign contractors in the report "LTA awards 3 contracts worth $1.09b for work on Thomson Line"(Feb 22).

Contracts for construction of the MRT system that commenced in the 1980s were awarded justly to foreign contractors. There were joint ventures between them and local contractors, with a view to transferring technology to the latter. After three decades of such tie-ups, our local contractors should have mustered the experience to form consortiums to bid for the station and tunnel contracts.

The authorities should monitor the progress if local contractors and encourage them to bid for the jobs. LTA could also consider local contractors favourably for the work.

Love Compassion


A Life not Reflected is a Life not Worth Living.

[cfa]

The main con will out souce the works to local contractors .

[Contrarian]

The local construction companies like to hire 'cheap' labour, and does not want to shoulder the risks of mega projects. My relative in construction, he says his project manager is half the pay of the DRAGAGE and Takenaka companies.

[DP28]

One must understand the dynamics of construction sector to understand why local firms are not bidding for SMRT projects.
Local Construction yards does not have to engineering capabilities and scale to embark on such a project. Hence, project usually goes to Satokoyo (Japan), SK group (Korea) or Ssangyong which will be the main con and I concur with Cfa, then they subcon to local contractors for part of the project.
In additional, one may think SMRT project is a "pao-jia" aka Sure win. More often than not, their margin is less than 8 to 10% on the hige side, it also come with huge amount of risk such as delays compensation and fatality. This projects are often seen as national service to our construction firms.

[opmi]

The main con will out souce the works to local contractors .

Local contractor then subcon out to sub contractors. And on and on. Hahaha

[LionFlyer]

Local Construction yards does not have to engineering capabilities and scale to embark on such a project. Hence, project usually goes to Satokoyo (Japan), SK group (Korea) or Ssangyong which will be the main con and I concur with Cfa, then they subcon to local contractors for part of the project.

A question here is, whether local cons aspire to become SK or the Dragages of the world. My suspicion are that they are happy being the sub-cons as the risk is borne by the main con. Alpine Bau is a classic case. Even if you big, still can fall. (although in their case, it is in part due to acquisition and subsequent hollowing out of their capital at their parent company)

Also, acquiring niche skillsets and technology like digging subway lines don't benefit them much unless they intend to compete in the overseas market... which will mean they fight with the other big boys.

[chialc88]

Local contractors do participate in big projects in Singapore
From Helen Lim Director, Media Relations, LTA

(extracted from Today)

To date, 2 contracts have been awarded to local contractors for the Thomson line.

In recent yr, Downtown line and Tuas West Extension.

Local contractors have also secured major contracts in road construction, infrastructure maintenance and IT systems development.

Love Compassion


A Life not Reflected is a Life not Worth Living.

[piggo]

On one hand people want work of good quality (less breakdowns) while on the other the govt wants cheap/fast. Local contractors are definitely not able to achieve that...

The fatal accident in Bugis DTL is one fine example, after years of JV-ing with BS, Koh Bros did not pick up any of the better practices from their partners which would've prevented the accident.