Singapore construction firms brace for potential disruptions as haze risk lingers
Companies are re-sequencing their construction timelines and shifting manpower deployment
[SINGAPORE] Construction and real estate firms in Singapore are preparing for possible productivity hits and work disruptions after the city-state’s air quality deteriorated to unhealthy levels for the first time in nearly three years.
While the Pollutant Standards Index (PSI) eased to a moderate 69 by Tuesday morning after peaking at 116 on Sep 4, the risk to businesses remains present. The National Environment Agency (NEA) on Monday warned that persistent dry weather and fires in neighbouring Indonesia could cause further worsening of conditions in Singapore.
The prospect of prolonged haze is prompting the construction industry to brace for delays. Contractors are drawing up contingency plans, particularly for physically demanding outdoor work that may need to be slowed or rescheduled, according to Kenneth Siew, a committee chair at the Singapore Contractors Association Limited (SCAL).
To minimise disruptions, companies are re-sequencing their construction timelines and shifting manpower deployment, Siew told The Business Times.
Individual developers say they are prepared, though the financial toll remains muted for now.
Mainboard-listed Lum Chang Creations (LCC), which began work in July on a S$32.9 million contract for the Teck Ghee MRT station, has not yet seen a material impact on delivery timelines. Still, the company is preparing to rotate workers, reduce strenuous activities and issue N95 masks if the air quality worsens.
City Developments Limited (CDL), one of the country’s largest property developers, has activated a tiered haze management plan across its project sites matched to government air quality readings. If visibility or air quality reaches dangerous levels, site activities will be suspended or adjusted to meet safety rules, the company said.
For its completed commercial properties, the landlord is leaning on existing infrastructure upgrades to protect tenants. CDL said it has strengthened building resilience by installing high-efficiency, anti-microbial air filters and online monitoring systems to maintain indoor air quality during haze episodes.
So far, the haze has not deterred consumers either. Footfall at CDL’s residential showflats remained consistent over the past week, suggesting homebuyer appetite is overriding the poor weather. The developer noted that its viewing galleries are fully enclosed and air-conditioned, insulating prospective buyers from the conditions.
Ultimately, the extent of the impact on companies like LCC and CDL will hinge on the severity of the haze and the specific construction stages of their projects, SCAL’s Siew said.
Should the haze significantly prolong project timelines, the industry body is prepared to engage stakeholders on “appropriate contractual considerations” – a signal that contractors may need to seek extensions of time to avoid delay penalties.
