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HIGHLIGHTS

Jun 2014THE PROJECTMANAGERNewsletter of the Society of Project Managers, Singapore www.sprojm.org.sg MCI (P) 112/09/2013

SPM President Dr Ting Seng Kiong represented the society to attend the recent Asia Pacific Federation of Project Management (apfpm) meeting in Hong Kong on 26 Apr 2014.

At the meeting, three newly elected Vice Presidents, namely Mr Tikajit Rai of PMAN (Nepal), Dr Francis Chan of HKIPM (Hong Kong) and Dr Steve Milner of AIPM (Australia) were warmly welcomed in their new roles and election to the leadership team of apfpm. A new apfpm governance framework was also discussed to define the roles and responsibilities of the President and the three Vice Presidents.

It was also decided at the meeting that apfpm would be registered as an unincorporated association in Australia. As a strategic alliance, apfpm will sign an MOU with IPMA once it is registered.

The apfpm will be holding its inaugural Congress on 29 and 30 Nov 2014 in Beijing, China. The apfpm awards will be given at the Congress. For those interested, the due date for submission of the apfpm awards is 12 Sept 2014. You can contact the SPM Secretariat for application. The awards guidelines are on the apfpm website www.apfpm.org.

Key Developments in Construction Adjudication >> 2

GAPPS WS30 >> Page 10

Project & Program Management in the Space of Complexity and Uncertainty>> Page 06

Asia Pacific Federation of Project Management Meeting in Hong Kong

The Power of Early Contractor Involvement Unlike the traditional route of procurement, Early Contractor Involvement or “ECI” is a project delivery method whereby a contractor is engaged either during the earlier stages of design (i.e. concept design or schematic design stages) or during an extended period of tendering to seek the contractors’ expertise and knowledge especially in the areas of buildability, constructability, construction scheduling and planning, value management or value engineering and the latest construction technologies or methods. ECI has been advocated as a procurement process that would harness and elevate the productivity level in construction activities. It has been said that ECI promotes “partnering” in a tendering environment. >> ... continue on page 04

01THE PROJECTMANAGER

SPM President’s Message

S/N NAME COMPANYMEMBERSHIP

TYPE

1 Mr Cheah Weng Kok National University of Singapore Ordinary

2 Mr Cheong Woon Hsu, Amos Rider Levett Bucknall LLP Ordinary

3 Ms Chine Wai Ting, Jacky PM Link Pte Ltd Ordinary

4 Mr Lim Chai Boon Swans Maclaren Pte Ltd Ordinary

5 Mr Lim Kian Peng Land Transport Authority Ordinary

6 Mr Lim Yong Huat, Victor Rider Levett Bucknall LLP Ordinary

7 Mr Luen Ka Wing, Peter EC Harris Singapore Pte Ltd Associate

8 Mr Ng Kim Thong, Calson Davis Langdon KPK Associate

9 Mr Sim Cher Hai, Derrick Langdon & Seah Project Management Pte Ltd Ordinary

10 Mr Sumartono Bin Pawiro Teambuild Engineering & Construction Ordinary

11 Mr Tan Joo Tong Langdon & Seah Singapore Pte Ltd Ordinary

12 Mr Yeoh Hin Hup, Sonny SIPM Consultants Pte Ltd Ordinary

13 Mr Zhong Cong, Albert Langdon & Seah Project Management Pte Ltd Associate

The main message of the WSH BizSafe convention on 28 February 2014 was “Being Safe and Healthy”. This is so close to all of us.

This was further reinforced at the WSH Conference 2014 in 7 to 8 May.

It is important to adopt Total WSH as a holistic approach to protect the safety, health and well-being of all employees.

Companies and project managers must adopt the Vision Zero mindset to save and protect lives.

Do our part even if no one knows. Because knowing that one more person can go home safely to their loved ones because of what we have done should be reward enough.

So not just work safe, make your project safe for others to work in.

Dr Ting Seng Kiong PresidentSociety of Project Managers

New Members - a Warm Welcome!

“Being Safe and Healthy”. Do our part even if no one knows. Because knowing that one more person can go home safely to their loved ones because of what we have done should be reward enough.

The new year had started badly with the increasing spate of fatal incidents. As I read about them, I feel a certain sadness in my heart thinking of the effect on the families who must now carry on without the bread winner. It is not just the financial impact but also the emotional scars. We must all do our part to halt this ugly increasing trend.

The granite issue does not help as it places everyone on their nerves with more anxieties.

Though we can study the causes of these incidents, we only see the last straw that breaks the camel’s back. There are usually many factors that led to the last straw.

Here is where the project managers play an important role.

How well we manage and how aware we are of the project progress and constraints, all play a part in how we as project managers can minimize incidents on our projects. Every small thing counts.

02 THE PROJECTMANAGER

Professional Practice & Education CommitteeThe Professional Practice and Education (PPE) Committee creates a learning platform where SPM members can keep themselves abreast of the latest developments in the construction industry. With its members drawn from diverse backgrounds, the committee has successfully organised regular technical talks given by established professionals from the industry covering a wide range of topics, from managing complex projects, sustainability practices to legal liabilities for project managers. The latest thrust from SPM and the PPE Committee is to engage the institutions of higher learning (IHLs) in co-organising technical talks that will engage and stimulate students, particularly from the universities. Such events will provide a platform for the students to interact with practising professionals of SPM.

The committee also oversees the award of continual professional development (CPD) points for the various courses and in-house training programmes that are conducted by agencies and organizations. With the construction industry becoming more dynamic than ever, the PPE Committee strives to champion continual training and self-development for SPM members, with the aim of developing and sustaining the Project Management professionalism in Singapore.

Committee Members 1) Thomas Ho (Chairman) - 23.5 Degree G-Architects Pte Ltd

2) Frankie Fong - Dragages Singapore Pte Ltd.

3) Goh Min Seong - Ministry of Education

4) Tang Hong Leng - Langdon & Seah Pte Ltd

Purpose & Objectives1) To foster a conducive environment through seminars, talks and

informal gatherings for members to freely exchange view points and experiences to help to improve further each person’s skills of the trade.

2) To encourage members to participate in seminar and talks to benefit and learn from specially invited guest speakers and presenters and to motivate our peers.

3) To enable members to embark upon continuous professional development learning to keep up-to-date with cutting edge practices of the PM profession and for oneself to remain relevant.

4) To facilitate members in embarking on learning of allied and related knowledge and gaining CPD points in such knowledge acquisition.

5) To continuously develop and uplift the service standard of our members and remain the forefront in all we do.

6) To document the good practices and retain good related knowledge for future learning.

Programme & Activities for 20141) The PPE Committee organised the following lunch talks in 2014:

a) The Green Journey Ahead, by the President of the Singapore Green Building Council, on the influence of the green movement on our project management tasks.

b) Developments in Construction Adjudication, by the Founding President of SPM, focusing on the recent 3 key developments in construction adjudication.

2) Joint seminar with BCAA on 23 July 2014 focusing on "Productivity" for the construction industry and how project managers can facilitate the “Productivity Movement”. The target venue for the seminar is within the Singapore Sports Hub and would include a tour of the newly completed Sports Hub facilities.

3) In the pipeline is a technical talk in October – November 2014, to be co-organised with SIM University on management of concrete pre-casting processes, facilities and projects.

Education, Development & Research (EDR)The Education, Development & Research Committee works in close association with other Sub-committees of SPM, in particular – Professional Practice & Education, and International Relations in furthering the project management professionalism by bench-marking with other international project management standards and practices.

Committee Members1) Christopher Leong (Chairman) - Rider Levett Bucknall LL,

2) Yip Kim Seng – PM Consultant & Trainer,

3) Ting Seng Kiong - Singapore Institute of Technology,

4) Audrey Tee – CPG Consultants

Purpose & ObjectivesThe EDR Committee aims to:

1) Promote members’ PM skills and help keep abreast of the latest trends locally and globally;

2) Coordinate and facilitate local, regional and international R&D collaboration with industry, research and academic institutions;

3) Exchange and disseminate research findings through seminars, symposiums and publications;

4) Encourage and enhance the continuous professional development of members;

5) Establish avenues and opportunities for specific interest groups across the many specialised facets and areas of PM practice

Programme & Activities for 2014Activities for this year include the following:

1) Continuation of the BCAA-SPM Course on Project Management for Professionals in the Building and Construction Industry jointly organized with the BCA Academy – July 2014 sees the conduct of the 9th Intake of this joint program that will take place at the BCAA;

2) Ongoing collaboration with and involvement in GAPPS – attendance at WS30 (Feb/Mar 14) in Dubai is expected to be followed by WS31 (June 14) in Tokyo, and WS32 (Sep/Oct 14) in South Africa.

We welcome enquiries and proposals for collaboration from relevant institutions to advance project management knowledge and practice in these areas of education, development and research.

SPM Working Committees

We welcome SPM members to join us in our Working Committees.



The Power Of Early Contractor Involve ment

History of ECI

The early engagement of contractors especially during the pre-tendering stages was first introduced in the early 1990s. This was attributed to the persistent shortcomings posed by the traditional procurement method whereby the contractors were are engaged only after the designs have been finalized which resulted in unnecessary cost and time overruns.

The objective back then was to involve the contractors either during the pre-qualification or tendering stage and to seek their input on critical cost drivers and to understand their concerns. Additionally, it was an opportunity to get to know the construction team better as it has been said that “…there are times that a project may be straight forward but the “people” factor may complicate the project process…”. Hence, there is definitely a need for the entire project team to be of the same mind and drive to work in unison.

Over time, the above engagement evolved. Contractors were requested to respond to a document called Advance Information Package (“AIP”) that was issued to the contractors pursuant to the pre-qualification exercise. ECI has been adopted successfully in commercial projects, high-rise offices and a pre-engineered industrial and research building at Tuas. However, with the increased emphasis on buildability, constructability, environmental sustainability, safety and productivity, the adoption of ECI has become more complex although the critical success factors back then and today remain the same and are equally relevant.

ECI Process

Prior to the ECI process, a pre-qualification (PQ) exercise is recommended to select the most suitable contractors to tender for the project. The core differences between PQ and ECI can best be described in terms of the deliverables as shown in Figure 1.

The purpose of a PQ exercise is to screen the contractors’ standing in terms of finance, resources, experience, commitments and track records. On the other hand, an ECI exercise is to engage the contractors and to seek their inputs on certain project risks which as an end result could create greater certainty on the estimated cost and expected delivery of the project.

From the PQ exercise, four (4) to six (6) contractors are chosen for the ECI exercise. This is to avoid unnecessary wastage in the resources of the contractors and to avoid increased cost of tendering. As one of the prerequisites for a successful ECI implementation is the involvement of senior management (in some cases the CEO himself) from the contractors’ side as well as the employers’ side, the risk of any of the pre-qualified contractors withdrawing during the ECI stage is of minimal or no concern.

Figure 2 shows an overview of the whole ECI process, usually managed the project consultant

quantity surveyor.

The ECI process begins with the presentation by the consultants to contractors and followed with the issuance of an AIP to the participating contractors (or tenderers). Subsequently, the contractors will make their individual proposal submission with a presentation to employer and consultants.

Figure 1 The core differences between PQ and ECI process

"ECI" is a project delivery method

whereby a contractor is

engaged either during the

earlier stages of design or during an

extended period of tendering to seek the contractors'

expertise and knowledge

<< ... from page 01

Financial Strength

Current commitments Quality Assurance

Resource Capabilitiesand HQ Support

Pre-QualificationDeliverables

Track records of similarnature and value{

Early ContractorInvolvementDeliverables

Identification andovercome critical

constraints and risks

Structural SteelViability

Other Value AddedProposals

Application of BIM

ConstructionMethodology and

Innovation

Construction Programmeand Handling Over

timeframe{

The Power Of Early Contractor Involve ment

The respective presentations would contain the essential and relevant information for the other party to work on. The contents should be customized to cater for different project needs. It is also essential that sufficient information such as drawings, schematics, parameters and assumptions, BIM model (if any), etc are given to the contractors so that they can fully understand the project requirements. In some projects, even the meeting notes, plans and discussions with the authorities such as the Land Transport Authority (LTA) are included, especially for projects involving the Mass Rapid Transit (MRT) reserve lines. The more information is provided, the clearer the contractors would be and the more they would be able to contribute during the ECI process.

After inputs from the contractors are gathered, the tender documents would be issued for bidding leading to a formal tender exercise.

Timeline for ECI Implementation

There are two schools of thought on how the ECI process can be implemented. The first approach is to have a longer tender period and have the contractors work hand-in-hand with the consultants. During this period, all parties will inter-alia discuss, exchange any observations and answer any queries that may arise. This option would require the tender period to be lengthened by say 1 month to 2-3 months.

The second method involves all parties to perform the same exercise as described above but conducted during the pre-tender period instead.

This option would result in a shorter tender period with little or no tender queries expected after the tender opening stage. In our previous projects, this second option is more frequently adopted and is preferred as it provides more certainty on the tender requirements and more time in addressing all issues holistically but with the individual contractors holding their special “ace-cards” close to their chest.

Challenges and Solutions of ECI Implementation

Since ECI requires a paradigm shift in the way employers, contractors and consultants collaborate, particularly during pre-contract stages, challenges and obstacles to implementation are inevitable. The implementation of ECI at Langdon & Seah, since the early 1990s, has taught us a number of valuable lessons. Some lessons learnt are:

• Theentiredevelopmentteamincluding the top management must be of the same mind and drive. This shall lead to good attributes emanating in the entire project such as mutual trust, good faith, fairness, co-operation and transparency.

• Notalltypesofprojectsaresuitable for ECI implementation. ECI is definitely not suitable for repetitive or routine maintenance works as the value add can be insignificant. ECI is also not suitable for projects whereby the employer’s requirement or project brief is unclear. Preference for ECI from our clients in the private sector is inclined towards their more complex projects.

TenderSubmission

Figure 2 shows an overview of the whole ECI process

Project Presentation by Consultants to Contractors

Collection of AIP by Contractors

Submission of AIP by Contractors

Presentation by Contractors to Employer/Consultants

Tender Documents Issuance in Tranches

• Although ECI can be implemented on various types of procurement method, from our experience, we have observed that Develop & Construct (D&C) form of procurement seems to yield better results. This could be due to the availability of contractor’s in-house expertise in the fields of Civil & Structural and Mechanical & Electrical engineering design, where they can provide alternative solutions that are more efficient and can provide better value for money as well.

• Whilstwehavesuccessfullyimplemented ECI in the private sector projects, we envisaged a similar framework could be implemented for public sector projects. For such projects, the PQ exercise can still be an open process with a subsequent short-listing to less than five (5) contractors.

• ItisinherentthatECIispromotedalongside Building Information Modelling (BIM) as both initiatives are intended to promote collaboration amongst construction team members with similar intended benefits. This is especially so as mandatory e-submission using BIM for projects with more than 5,000m2 of floor space would be in force by 2015.

Conclusion

The objective of ECI is to allow early participation of contractors in pre-contract stages with all parties reaping the benefits. Some examples of the benefits are as follows:

• Achieve more favourable results than conventional procurement routes especially on contractors’ expertise areas

• Harnessthelatestknowledgeandtechnologies from the contractors

• Initiategreatercommitmentandsense of ownership from the contractors

• Betterawarenessandunderstandingof project risks

• Betterforecastofprojectoutcomes• Leanconstructioncostascontractors

have lower risk to buffer in their price• Jointproblemsolving,addressing

unknowns and difficult environments• Reducetheriskoflitigation• Shortentenderperiod

Seah Choo MengDirector, Langdon & SeahProject Management Pte LtdImmediate Past President, SPM

THE PROJECTMANAGER 05

1. Abstract

We, global citizens of project and program management sphere, are navigating through high tides of uncertainty and complexity in business and public sectors alike after the Lehman Brothers collapse in September 2008. In an extreme expression, the establishment in the West and Japan is losing its turf of creating some significant new value amid the current turbulence and an ongoing shift of state financial and economic powers. The textbooks are only valid where project managers are given an opportunity to perform the project management functions according to the standards. How can a project manager claim that he/she is a project manager when there are considerably reduced chances of projects and he/she is not active in the new situation?

This presentation scans how the global market has shifted over the past five years; explains emerging markets needing new project management models, including program management; identifies the gaps of required competency between the traditional and new types of project management (and program management); provides a snapshot of how project companies are reacting to the new trend; and communicates the writer’s expectations for Singapore’s project management potential.

2. Japan after the Triple Disaster in March 2011

The triple disaster in Japan, e.g. earthquake of M 9.0., devastating tsunami and the Fukushima No. 1 Nuclear Plant meltdown in March 2011, has affected Japan gravely and is forcing the country to change.

It is a long journey for Japan to move towards its national slogan, “realizing resilient homeland, society and economy”; but it has started. It calls for Japan providing a highly challenging grand program solution to an equation consisting of scientific responses to natural disasters and hazard; solving a myriad of social vulnerabilities; changing, or at least relaxing the Japanese mentality - primarily obsessed with internal views and excessively identifying with the land of their origin; and securing financing in the country with a large government deficit.

The past three years has revealed for Japan that:

• During the post-disaster period, the Government’s project management awareness was very low while the industry has demonstrated robust project management capabilities in having returned the damaged industry to the pre-disaster state or even better.

• Drastic changes have been needed for Japan. This means that in the country, contribution of projects, programs and “projectized” business (project-based work) to its GDP is now presumed to exceed 50%. Hence, organizations and citizens cannot survive without varying degree of project and program management knowledge.

• These difficulties have encouraged companies in Japan to squeeze innovation business models and concepts, having proven that hunger is a strong driver for zero-base thinking.

• Then a fair wind started blowing when Japan saw the new administration by the Liberal Democratic Party (LDP) headed by Prime Minister Shinzo Abe, in December 2012. The Abe Government has introduced the “Abenomix” in its main economic policy program which is based upon “three arrows” of fiscal stimulus, monetary easing and structural reforms pursuing as an integrated program of mix of reflation, government spending and a growth strategy designed to jolt the economy out of suspended animation that has gripped it for more than two decades (The Economist. 18 May 2013). In just one year

of Abenomix, many branches of the Japanese industry have made a miraculous recovery with some leading companies like Toyota, Hitachi will achieve record-high business performance in this fiscal year ending March of 2014.

3. Market Shift for the Project Industry

In 2004, I published a research paper on the historical development of project management models titled “Changing Landscape of Project and Program Management”. The updated version appeared in IPMA’s (International Project Management Association) annual science journal “Project Perspectives 2011” (http://ipma.ch/assets/re-perspectives_2011.pdf).

The basic concept of this study shows that project management models have gone through four generations, namely, “classical”, “modern” (GAPPS standards come under this category), “strategic” and “versatile”. And in this century, we are seeing the arrival of strategic project and program management models, which include P2M Guidebook of Japan mentioned in the original research, and now, Complex Project Management of International Center of Complex Project Management and PM-2 of Mr. Manfred Saynisch of Germany added to this strategic model.

The same research argued that new models are formed from iteration between a core, yet variable project management structure and methods, and application areas, popularization mechanisms and socio-economic drivers. I was especially interested in socio-economic drivers that prompted the creation of a new model and this view is being supported increasingly from what is happening in the world (e.g. the current infrastructure

“...project management m odels have gone through four generations, namely, “classical”, “modern” (GAPPS standa rds come under this category), “strategic” and “versatile”.”

Project and Program Management in the Space of Complexity and Uncertainty

"The triple disaster in Japan, e.g. earthquake of M 9.0.,

devastating tsunami and the Fukushima No. 1 Nuclear Plant meltdown in March 2011, has affected Japan gravely and is forcing the

country to change."


export boom by the change of the state heads of France, China, Russia and Japan in 2012, calling for a strategic program management model). Those in project management association, operation, training and consultancy business would agree, that the collapse of Lehman Brothers in September 2008 was a turning point in the global economy, and project and program management community. Soon after the LB collapse, I was travelling to Singapore for an SPM Asia Pacific regional conference, Denver for PMI World Congress North America 2008 and Rome for IPMA World Congress 2008; and I was sensing an abrupt structural change for the worse. I was prompted, as an association president, to estimate the economic chain effects, including an impact on associations. My estimate for a severe adverse impact proved correct and we have not heard about recoveries ever since.

The continuing worldwide economic recession and the EURO crisis are even worsening the situation and have unfolding unprecedented complexity in the marketplace. The typical current complexity is characterized by key words like, degree of disorder, uncertainty, non-linearity, irregularity, instability, multiplicity, scalability, recursive-ness, directional complexity and temporal complexity.

Program managers or advanced project managers are thinking about how to create an excellent program and project that would produce handsome cash flow and high added value. In doing so, they should always analyze not just the market itself, but more deeply the current eco-system surrounding the project market by way of PESTLE factors – or, political, economic, social, technological, legal and environmental factors which carry such complexity key words as listed above.

For instance, industrial observations concerning the Japanese project-related companies suggest:

• Local (in-country) agile management is not all about success.

• Global, systemic market conception capability is essential for survival for large corporations (successful case: JGC Corporation, Hitachi Ltd.).

• For large manufacturing companies continuously putting out new products via development projects,

systems engineering capability, not just product engineering ability, counts.

• Medium-size companies can continue to pursue a category leader position in the world but with more global contents (e.g. made for Japan).

In summary, I have shared my views that global competition mandates consistent delivery of innovation; and that calls for strategic project management models and the complex world demands project management models that can address complex issues by way of dynamic systems management methodologies.

I feel that innovative solutions are mostly not delivered out of deductive (analytical) management frameworks and hence we need a mechanism building model on a holistic paradigm.

4. Direction of Project Management

In view of the current global situation of the professional project management community that the global economic downturn is exerting a fierce impact on the professional project management market; while the primary project management market is shifting from the information

and communication (ICT) industry to infrastructures industry, there is an unmatched demand and supply of qualified professionals – yet we see a lack of robust professional development for this new market focus; we see a surge of program management or complex project management as an area of practice focus in Europe and Australia; and, there is a trend of bipolarization of companies deploying high-end project management models versus those carrying commoditized models, and

considering that the project management research over the past ten years (Shenhar, A.et al. 2007, etc.) has found that success of project management in a traditional way (also referred to as project efficiency) and the success of a project, especially from the aspect of future value being built out of the project, are two different stories. We need to redefine the project management.

I would advocate that Project Management is dynamic management of a project as a system of conversion of uniquely defined input resources for creating any unique, new value in a project context; hence a project is mission driven, systemic, time bound, knowledge and people integrative, and resources constrained. Here, a project can be initiated on a stand-alone basis (discrete projects) or as an integral part of a program. In the same context, Program Management, one tier higher than project management, is a mightier conversion system of interrelated projects under a holistic mission and it includes conception, formulation, design, structuring and implementation management of a program as an organizational vehicle to realize an organization’s strategy, be that of government ministry, agencies, private or public business corporations, academic/research institutes or non-profit organizations.

“...project management m odels have gone through four generations, namely, “classical”, “modern” (GAPPS standa rds come under this category), “strategic” and “versatile”.”

Project and Program Management in the Space of Complexity and UncertaintyProf. Tanaka was invited to present this paper at the BCA-SPM Seminar in October 2012. It is now updated and reproduced with Prof. Tanaka’s permission.

“Program managers or advanced project managers are thinking about how to

create an excellent program and project that would

produce handsome cash flow and high added value.”

>> ... continue on page 08


Prof. Hiroshi Tanaka is professor of strategy, project and program management at SKEMA Business School of France; three post-graduate programs with Ukrainian national technical universities and one other in Senegal; and one each graduate program in Russian and Japanese national universities. Prof. Hiroshi Tanaka is Founder and Immediate Past President of Project Management Association of Japan (PMAJ) after he served for JGC Corporation of Japan for 42 years. He is an active global project management community player and has served as key note/invited speaker at 125 PM conferences/public seminars in 28 countries and 100 in Japan; he served as Chair, Global PM Forum since 2005 to 2007. He holds PhD degree of France, three honorary advanced doctorate (Dr. Sc.) degrees of Ukraine and one honorary doctor degree of Ukraine.

Prof., Dr. Hiroshi Tanaka, Academician, Dr.Sc. (Hon.), Ph.D.

Project and Program Management in the Space of Complexity and Uncertainty (cont'd)

A program management structure is illustrated as follows:

• Mobilize the program organization

• Manage program implementation

• The Owner to identity program idea

• Develop idea into a substantial program format

• Enrich program contents

• Structure program design and define component projects

• Increased added value out of innovative program, product, utilization & knowledge

Program Service

• Monitor global trends

• Capture a trigger for program idea against organizational strategy

Non-linear changes Social complexity Global competition Emerging technology Obsolescence Relative core resource strenght

Trigger Capture

Program Implementation

Management

Program Design &

Structuring

Program Conception & Formulation

5. Opportunities for the Singapore Project Management Community

Singapore, ranked 5th in the IMD World Competitiveness Ranking 2013, and 9th with US$52,052 in the GDP per Capita Ranking (IMF World Economic Outlook Database-October 2013), is seen as a typical country founded on a knowledge economy.

Its project management models should benefit from the country’s strengths such as national credibility; a high ratio of well educated, intellectual professionals that can overcome the smallness of the country’s population size by way of leveraging abilities and talents; the hub role of the state in many respects that allows many opportunities to meet in Singapore or for Singapore; financing capacity, a key weapon for project development in the developing economy; and commitment to and demonstrated high sense of sustainability, a great key word for the future of project management.

I would expect the Singapore project management potential be stretched to planning and development of sustainability programs/projects, those of eco-smart community development, light to medium weight industrial cluster development programs in Southern Asia, Middle East and Africa and CM/PM (construction management and project management for fee) role.

These positions can further be enhanced where Singaporean entities join forces with foreign parties, such as the Japanese, with proven reputation so as to reap combined benefits of diverse expertise and to raise capabilities to produce solutions of multi values (such as meeting a set of value objectives – accentuated state development, country prestige of presenting a model of the most futuristic

eco-smart community, sustainability technology development, presenting expanded business opportunities for Singapore management consulting companies and developers, at the same time under a program.

<< ... from page 07


Lunchtime Talk The Green Journey Ahead Toward a Green and Sustainable Built Environment

by Mr. Ng Eng Kiong, President, Singapore Green Building Council

Mr. Ng Eng Kiong, President, Singapore Green Building Council (SGBC) and Managing Director, Squire Mech shared with SPM Members at the lunchtime talk on February 13, 2014 about the Green Journey adopted by Singapore. His talk covered climate change and how it impacts all of us and what BCA and SGBC have formulated for the green and sustainable built environment in Singapore.

“A change in global climate patterns apparent from the mid to late 20th century onwards, attributed largely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels”.

Mr. Ng shared that this Warmer Earth results in Green House Effect i.e. the HEAT gets trapped in the atmosphere and earth becomes Warmer. This means that at a 3oC rise in average temperature over Singapore would mean a daily maximum temperature of 34oC currently it occurs 10% of the time, will become the average daily maximum and a 25% increase in rainfall rate resulting in more flash floods. As Project Managers and leaders of the AEC industry it is important to know that the buildings are responsible for more than 40%of global energy use and a third global greenhouse gas emissions.

As Singapore is a small island city-state with no natural resources and is densely populated, it has to focus on raising energy efficiency of its built environment. It is targeting for 35% improvement in energy efficiency from 2005 levels by 2030 and 84% of buildings to be certified green by 2030 through the Green Building Development.

Mr. Ng shared that in Singapore architecture, glass facades and glass curtain walls are very popular because of transparency and design opportunities but it significantly adds to the energy use and needs to invest to achieve the thermal comfort, visual comfort (from glare), acoustic comfort (from noise transmission) and visibility (for privacy).

As project managers, we need to balance design, aesthetics expectations with the green building requirements. The audience had surely benefited from the enlightening talk and discussion.

Ban Ki-moonUnited Nations Secretary General

Lunar Chinese New Year - Lo Hei (捞起)

Sheng ah!

Fatt ah!Huat ah!

“Climate Change and Sustainable development are the

defining issues of our time”


What can a project developer or sponsor do to provide the needed support to his project manager? What is the role of project sponsors to enable successful project outcome? These issues are the focus of the GAPPS at the Working Session 30 in the development and deliberation of the Project Sponsor Standard.

Not too far away from the world tallest man-made structure, the Burj Khalifa, the group of GAPPS international Project Management practitioners and academics gathered again for another round of working session in Dubai. The 30th working session was held at the British University in Dubai (BUiD), from 27 Feb to 1 Mar 2014.

Participants came from Australia, Austria, Canada,

Singapore, South Africa, UAE,

UK and USA. We had 4 post-graduate

GAPPS Working Session 30students (working adults) joining in to learn more about our work.

In this 3-day session, we focused our effort on completing the Project Sponsor Standard to get the exposure draft out for public review. We had another team to continue the work of mapping of the GAPPS PM Standards against other existing international PM standards.

Brief work was done on project controls standard and Communication and Promotion. The latter was to improve the propagation of the GAPPS work and standards.

I represented SPM at this working session, participating in the Project Sponsor Standard. Work was intense as usual over the three full days.

The only break for us was at a board meeting to deliberate on governance and policy matters.

The Project Sponsors Standard would be a useful guide for developers of building and construction projects, including government procurement entities (GPEs) for effective project implementation and delivery.

Yip Kim Seng1st Vice-President, SPM


You can look forward to the following in the coming issues:

1. Building Information Modeling – The PM's Role

2. GAPPS Working Session 31 - update

3. Do we need accreditation of Project Managers?

Looking Forward...

from the Editorial Team...Dear Readers,We are pleased to present you a feature article on “The Power of Early Contractor Involvement (ECI)”, which is one procurement method that the Building & Construction Authority (BCA) is trying to advocate for early partnering and clarification in a tendering environment to achieve better understanding of the tender requirements and specifications leading to more accurate pricing. ECI may increasingly become an integral part of the project delivery process.

We like to thank those who have contributed interesting articles to this edition. We hope that you have an enjoyable time reading our news and feature articles.

Your views on the materials presented or any general feedback are welcome to help us improve the publication. Also, we look forward to you contributing an article to share your experience with the PM fraternity. Please send them to [email protected]

The Editorial Team

Tan Kok Siong, ChairmanYip Kim Seng, AdvisorManish BangaJason LeeShaun Yeo

Tan Kok SiongOn behalf of the Editorial Team

SPM-BCAA Seminar 2014 23 July 14

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Publisher: Society of Project Managers | Printer: Toppan Security Printing Pte. Ltd.

Key Developments in Construction Adjudication- a technical talk by Chow Kok FongThe Building and Construction Industry Security of Payment Act, or commonly referred to as SOP Act, came into force on 1 April 2005. Essentially, it entitles any person who has carried out any construction work, or supplied any goods or services, under a contract to a progress payment. It concerns the quantum of the payment and the timing of the payment. Since the enactment of the SOP Act, there have been numerous adjudication cases.

On 30 April 2014 at a luncheon at the Singapore Recreation Club, SPM had the privilege to hear from Mr Chow Kok Fong on the developments in construction adjudication. He gave a succinct update on 3 key developments – (i) Operation of Section 15(3), (ii) Repeat Claims and (iii) “Contracting Out”.

Besides enjoying a sumptuous lunch, SPM members and their friends took away some tasty and ‘easy-to-digest’ nuggets of knowledge from Mr Chow, who is also our founding President. He began with tracing the band of SOP legislations in several developed Commonwealth countries to The Latham Report (1994) stating that cash flow crunch arising from disputes hindered construction productivity. The objective (in dispute resolution) is to “reduce the amount of time, money and other resources wasted on disputes about building contracts”. Timeliness in payment for work done is as important as its accuracy in getting the quantum right. Quoting Chadwick LJ in Carillion Construction Ltd v. Devonport Royal Dockyard Ltd [2006] BLR 15 at [86], “The need to have the “right” answer has been subordinated to the need to have an answer quickly.”

(i) Operation of Section 15(3)Mr Chow shared that Section 15(3) should be strictly enforced. Citing a few cases, namely Chip Hup Hup Kee Construction Pte Ltd v Ssangyong Engineering & Construction Co Ltd [2009] SGHC 237 and W Y Steel Construction Pte Ltd v Osko Pte Ltd [2013] SGCA 32; [2013] 3 SLR 380, he stated that,

(a) The Respondent cannot state any reasons for non-payment in the adjudication response.

(b) The adjudicator cannot consider any arguments for non-payment.

(c) The Court of Appeal agreed with the decision in Chip Hup that Section 15(3) has to be applied strictly.

(d) The adjudicator still has to decide the case but his decision will be based only on the materials submitted by the claimant.

(ii) Repeat ClaimsWhen repeat claims are allowed for consideration and when they are not.

(1) A subsequent payment claim can include a sum, which has been previously claimed [i.e. a “repeat” claim], but has not been paid.

(2) Where a payment claim has been made, but has not been adjudicated upon, it still remains an “unpaid” claim and could be the subject matter of a later payment claim and adjudication. A claimant may choose not to lodge an adjudication application as he is too tied up trying to carry out his works.

(3) A payment claim that has been dismissed by an adjudicator for being served prematurely or as an untimely claim under reg 5(1) or a premature adjudication application may be the valid subject of a subsequent adjudication provided it was not adjudicated upon and dismissed on its merits.

(4) A payment claim, or any part thereof, which has been adjudicated and dismissed on its merits cannot be the subject of a subsequent payment claim or subsequent adjudication.

(iii) “Contracting Out” - Section 36The SOP Act prevents parties from “contracting out”.

This recognises that in most substantial projects (other than house construction), the developer has considerable leverage to impose harsh terms in a contract. For example, construction contracts used to provide that final accounts are to be settled only 12 months after physical completion of the works. The difficulties this posed to the contractor include,

(a) The last part of the valuation of the works are held back,

(b) The performance bond had to be extended – reduces the contractor’s bonding capacity, and

(c) The retention money is held back.

He shared examples of the effect of Section 36(1) on clauses in PSSCOC 6th Ed for Final Payment Claim and REDAS Contract 3rd Ed for Final Claim Documents.

He summed up his talk with the following:

1. Ensure that a payment response is issued to anything that looks like a payment claim.

2. Repeat Claims are only prohibited if the items contained in the claim had been previously adjudicated upon on their merits.

3. For SOP matters, it is possible that the contract terms may be void for the purpose of the Act.

For more details of Mr Chow Kok Fong’s talk, you can refer to the presentation slides which are available from the SPM website.

Written by:Yip Kim Seng

Chow Kok Fong is a Chartered Arbitrator and currently practices as a mediator, arbitrator and adjudicator. He has been appointed to arbitration tribunals under ICC Rules and Rules of the SIAC as well as Dispute Adjudication Boards. Mr Chow is on the board of the Singapore Mediation Centre and is Chairman of the Construction Adjudicators. He is author of several leading texts on construction contracts including the two-volume work Law and Practice of Construction Contracts (4th Edition 2012), Security of Payments and Construction Adjudication (2nd Edition 2013) and Construction Contracts Dictionary (2007). On 1 November 2013, he was awarded the quinquennial Singapore Academy of Law Merit Award 2013 for contributions in promoting and advancing the development of Singapore law.

Section 15(3) “The respondent shall not include in the adjudication response, and the adjudicator shall not consider, any reason for withholding any amount, including but not limited to any cross- claim, counterclaim and set-off, unless –(a) where the adjudication relates to a construction contract, the reason was included in the relevant payment response provided by the respondent to the claimant...”

Section 36(1) The provisions of this Act shall have effect notwithstanding any provision to the contrary in any contract or agreement. (2) The following provisions in any contract or agreement (whether in writing or not) shall be void:

(a) a provision under which the operation of this Act or any part thereof is, or is purported to be, excluded, modified, restricted or in any way prejudiced, or that has the effect of excluding, modifying, restricting or prejudicing the operation of this Act or any part thereof; (b) a provision that may reasonably be construed as an attempt to deter a person from taking action under this Act.

Publisher: Society of Project Managers | Printer: Toppan Security Printing Pte. Ltd.12 THE PROJECTMANAGER