We are a main contractor in construction projects for private and public sector customers in Singapore
and for private sector customers in Malaysia.
Our construction business in Singapore is carried on by our wholly-owned subsidiary, KSHEC. KSHEC is
involved in general construction and is currently registered with the BCA with a BCA grading of A1 under
the category CW01 for general building. Such A1 grading is currently the highest grade for contractors’
registration in such category and enables KSHEC to tender for public sector construction projects of
unlimited project value.
Our construction business in Malaysia is carried on by our wholly-owned Malaysian subsidiary, Techpath.
Techpath is currently registered with the CIDB with a G7 grading under the categories of general building
and maintenance and general civil engineering, which allows it to tender for projects of unlimited project
value.
Our clients typically include property developers, land owners and governmental bodies.
The following events in chronological order represent a typical construction cycle -
Sourcing for business opportunities
We would typically source for business opportunities by leveraging on the wide network of
business contacts that our Executive Directors have developed over the past 30 years in the
industry. Members of our staff are also encouraged to actively promote the services of our Group.
Construction projects and business opportunities may be sourced through the following means -
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i. |
public tenders based on advertisements in the mass media such as publications, newspapers and internet notices; |
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ii. |
private tenders based on invitations to tender; or |
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iii. |
recommendations or referrals from clients and consultants from existing and past projects. |
Based on our construction projects secured in the past three financial years, 20% were secured
through public tenders, 55% were secured through private tenders and the remaining 25% were
from recommendations or referrals from clients and consultants from existing and past projects.
Contract review, evaluation, tender preparation and submission of tenders
In preparing for a tender, we would first evaluate our current project commitments and available
resources. Once a decision has been made to proceed with the tender submission, we would
typically undertake the following steps -
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i. |
review the relevant tender documents, drawings and specifications and consider the
complexity of the project; |
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ii. |
clarify ambiguities by submitting queries to the consultant; |
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iii. |
request for quotations from sub-contractors that we would work with based on the required scope of works; |
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iv. |
quantity survey and cost estimation; |
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v. |
finalise tender price; |
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vi. |
if applicable, enter into pre-tender memorandum of understanding with sub-contractors in order to lock in prices and terms; and |
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vii. |
submit documents required in the tender which may include sketches, drawings and
programmes. |
The entire process for the above would typically take between one to three months.
Award of contracts
If our submitted tender price is amongst the lowest, we may then be required to attend tender
interviews to clarify issues such as pricing and materials offered, and to respond to any other
queries relating to the tender, such as methods of construction. There may be negotiations to
finalise the terms of the contract before the contract is awarded. Notification of a successful tender
would typically take place within three to six months after the close of the tender.
Assembling of project team
Once we are awarded the contract, we would assemble the project team. The composition of the
project team depends largely on the size, complexity and requirements of the awarded project. The
project team normally comprises a project director, a project manager, project engineers, site
foremen, co-ordinators, a site secretary and safety personnel. The project team may have more
members if the project size is larger and more complex and this would typically be factored in
during the tender submission stage.
The project team’s responsibilities include, inter alia, planning and monitoring the progress of the
project, co-ordinating with various sub-contractors, supervising the works and ensuring that the
works are carried out in accordance with the drawings and specifications. Contract administration,
quality control and safety matters are also part of the project team’s responsibilities.
Formulation of project execution plan
The project team is responsible for the formulation of the project execution plan. The project
execution plan would specify the functions and responsibilities of all parties involved (including the
sub-contractors to be appointed by us), construction schedules, plant and equipment utilisation
requirements, manpower projection plan, approvals from authorities to be obtained, specific
technical and quality requirements imposed by clients, schedules for the mobilisation of resources
for the construction site and the financial budget of the project. With proper planning, we aim to
complete and deliver projects with high standards of quality within the budgeted cost and timing. In
the past three financial years, we have been able to complete all of our construction projects
without any substantial delay or material cost overruns.
Appointment of sub-contractors and suppliers
Typically, most general building contractors would tender for the full contract and sub-contract
specific parts of the project to other sub-contractors and specialists. KSHEC would normally carry
out the works through sub-contractors. We maintain a list of sub-contractors and suppliers so that
we would have a ready pool of sub-contractors and suppliers who would meet the requisite
performance and quality standards. We review this list through periodic assessment and additions
are made when new suppliers and sub-contractors are found to be suitable upon evaluation. Subcontractors
and suppliers are selected based on, among other things, our past working experience
with them, their competitiveness in terms of their pricing and their past performance.
Construction process management
The construction processes and activities undertaken by our Group can be grouped into the
following components: foundation works, structural works, architectural works, external works,
mechanical and electrical works and landscaping.
In-house process control activities are also carried out by the project team throughout the
construction process to ensure optimum results. In-house process control activities include
planning, supervising, inspecting, directing, recording and reporting as appropriate. All outsourced
activities and works are subject to process control activities. In order to establish that the requisite
criteria and standards are met, as part of our in-house process control, the sub-contractors will be
required to provide a mock-up or trade demonstration of their work standards for our clients’
approval.
We are sometimes also awarded design and build contracts and for such projects, the project
manager would establish a project quality plan, which would include the planning, co-ordination
and control of the performance of the relevant professionals involved. The performances of the
professionals are regulated by various governing authorities and professional codes of conduct.
Completion and handover
The criteria and standards for acceptance of a project are established based on the technical
specifications of the project during the stage of formulation of the project execution plan. During
the construction process, we may also seek clarifications from the client as to the accepted
specifications or standards.
Upon satisfactory completion of all in-house process controls by the project team and inspection
by the client, the completed project will be officially handed over to the client.
Maintenance after handover
Construction contracts would typically include a defects liability period during which we will be
responsible for making good any defects found in the completed building. During the defects
liability period, our clients will continue to retain the performance bond that was provided to them
at the commencement of the construction project. For our private sector construction projects, our
clients will additionally retain a retention sum during the defects liability period.
