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KSH Holdings clinches S$126.8m deal to build condo at Sentosa Cove

Construction and property developer KSH Holdings has secured a S$126.8 million contract to build a condominium development at Singapore’s Sentosa Cove.

The contract is the first of its kind to be awarded by Lippo Marina Collection for the construction of a luxury housing development at the site.

This will be the group’s fifth high-end luxury residential property project at Sentosa cove. The deal will bring KSH holdings order book to S$770 million.

In the last four months, project contracts for the developer have added up to some S$354.4 million, in comparison to a total of S$510 million for 2007.

Work on the site is to begin this month and the project is expected to be completed by December 2010. - CNA /ls

Source : Channel NewsAsia - 17 Apr 2008

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Recycling in construction sites

MATTHEW PHAN looks at what the building industry is doing to conserve water, energy and other resources

The property market may have slowed, but the construction industry is still going at breakneck pace, with several national projects and plenty of private sector developments in the pipeline.

This is good for the economy, but perhaps less so for the environment - construction uses a lot of resources, such as concrete, steel, energy and water. How can builders mitigate this?

Water

Let’s start with water. Builders typically buy Newater from PUB, and the cost can run to several hundred thousand dollars per project, according to Pek Lian Guan, director at Tiong Seng Contractors.

This is ‘not high as a proportion of the total building cost’ but is ’still a fair amount in absolute numbers’, says Mr Pek.

Tiong Seng experimented with on-site water treatment and recycling in 2005 while working on City Developments’ Parc Emily condominium.

It ended up saving 21 swimming pools of water, says Mr Pek. This is about half of what it would have used otherwise, according to the PUB, which handed Tiong Seng one of its inaugural Watermark awards last year.

At sites, Tiong Seng sets up a temporary drainage system to collect used water and rainwater, channelling the flows to a holding area, where the water is treated using a portable membrane-based plant.

Clean or treated water is used for plastering, or recycled for washing. Rainwater is also treated before being discharged.

Tiong Seng spent $120,000 on the Cleansea plant, supplied by waste-water treatment specialist Hydroxyl, and another $80,000 for on-site piping and collection systems.

Hydroxyl’s plants are used in industrial facilities, but ‘I met them and asked whether they could be used for construction sites’, says Mr Pek. ‘They custom-made a prototype for us to do an on-site trial run.’

Housed in a 3m by 3m container, the plant is easily transported by crane from site to site, Mr Pek says. But the on-site piping may not be re-usable as it gets damaged during the two-year construction process.

Tiong Seng also implements ‘earth control measures’, such as covering exposed soil with protective sheets to protect it from erosion, which is a common problem at construction sites, says Mr Pek.

Typically, erosion can lead to muddy, silty run-off with Total Suspended Solids (TSS) levels in excess of 200, compared with less than 50 for clear drinking water, he explains.

In comparison, water from the Cleansea plant achieves TSS levels of under 10. Ironically, Tiong Seng has to train its workers not to drink the plant’s output, as the water is clear but may still contain biological contaminants.

Water conservation is another major area.

The level of use depends on the type and stage of construction, but there are typically two aspects of water use on a site, according to Simon Lee, executive director of The Singapore Contractors Association.

First, water is used in the wet works, or the concreting, plastering, testing for waterproofing and piping system, and while laying foundations. Second, water is used for site housekeeping, cleaning and washing, and at ancillary facilities like offices, living quarters or cookhouses.

On the whole, contractors manage resources by controlling their use, minimising waste and recycling where possible, says Mr Lee.

For example, it is normal practice to re-cycle water for the washing bay. Recycling makes ‘economic sense’ and ‘has always been practised by the prudent contractors’, though their input is ‘mainly in the construction processes and temporary works’, he says.

Prefabrication

In fact, sustainable construction starts at the design stage when the architects are thinking about what materials to use and how to put them together.

By using pre-fabricated components, or drywalls made partially of recycled material, builders can save water, energy and other resources.

Pre-casting, or offsite fabrication, means that not just beams and walls, but entire rooms, can be built in a factory, then transported to the construction site, where cranes fit them into buildings like Lego blocks.

‘Pre-fab takes place under controlled conditions, which minimises waste and ensures quality,’ says Vivien Heng, director at RSP Architects Planners & Engineers. ‘There is no need to worry about assembly on site. It saves time and manpower, and the site is safer, neater and less noisy because there are fewer things happening’, she says.

On the Tribeca project for City Developments, RSP is working with the contractor to use only pre-fabricated bathroom units (PBUs). ‘A PBU comes to the site like a box - everything is sealed. You just need to connect the pipes’, says Ms Heng.

Such units can also be designed using drywalls.

Made of gypsum, drywalls are used to finish the interior construction of walls or ceilings. They require no wet plaster, and can take just one or two days to install, compared to a week for masonry.

Although they weigh more than 85 per cent less than brick walls, drywalls can be insulated to achieve the same level of noise protection, according to the Building and Construction Authority (BCA).

Steel

As for structural frames, BCA has been encouraging builders to replace concrete with steel.

The latter requires no sand and has a very high strength-to-weight ratio, which allows for more flexible designs.

When connected by fasterners, steel frames are stronger than traditional systems, which allows savings on foundations and the crane capacity needed on site, according to BCA.

Steel frames are also easier and quicker to set up - which saves time on the construction site - and are fully recyclable.

Environmentalists may counter, of course, that steel manufacture is extremely carbon intensive. According to the Green Building Handbook: A Guide to Building Products and their Impact on the Environment, published in 2000, about three tonnes of carbon dioxide are emitted per tonne of steel if made from iron ore, and 1.6 tonnes of carbon dioxide if the steel is recycled.

Still, as most buildings in Singapore are high-rise, concrete or steel are pretty much the only two viable options, says RSP’s Ms Heng.

Recycled concrete

Sustainable construction also involves recycling materials - and a lot of what is demolished is reusable.

Virtually all the metal content, for example, from the structural steel to the metal doors of electrical rooms, is recyclable, according to Tang Kok Thye of ADDP Architects.

The other parts - crushed concrete, bricks, metal, ceramic tiles, wood and plastics - are termed Construction and Demolition (C&D) waste.

This is typically used for building temporary roads at construction sites or to lay the sub-base course - the deepest of four layers - of a road.

But local studies show that C&D waste can be processed into recycled concrete aggregate (RCA) and substituted for natural granite, according to an article by Ho Nyok Yong and Kelvin Lee of Samwoh Corp.

Writing in the first issue of BCA’s Sustainable Architecture newsletter, out this year, they also describe how to recycle asphalt pavements and incinerator ash.

By using RCA in place of natural granite when building roads, or in non-structural pre-cast concrete components like road kerbs and drains, contractors can save about 30 per cent, they say.

Overall, though, sustainability begins and ends with environmental consciousness and a sense of responsibility to use limited resources wisely, says RSP’s Ms Heng.

She describes how the contractor on the Tribeca project - which is located near the Grand Copthorne Waterfront Hotel - picked up some discarded carpets and used them as noise insulation for his power generators. “It’s an innovative, zero- cost solution stemming from awareness and a recycling mindset,” she says.

Source : Business Times - 15 Apr 2008

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Construction cools unexpectedly on higher costs

GROWTH in the booming construction industry slowed unexpectedly in the first quarter, after racing along at a frenetic pace for much of last year.

The sector, tipped as one of the economy’s key growth drivers this year, grew by just 14.6 per cent in the first two months, down from more than 20 per cent for most of last year.

Economists were surprised by what they said amounted to a contraction in the industry, but they remained confident that growth was still healthy and in line with their forecasts for the year, which ranged from 10 per cent to 25 per cent.

Most suggested that profits in the construction sector could have been hit by higher raw material and labour costs. Construction costs have risen 40 per cent in the past two years and are expected to jump by another 15 per cent to 20 per cent this year.

United Overseas Bank economist Ho Woei Chen also said that after several successive quarters of strong growth, a slowdown in one quarter ‘is to be expected’.

She and other experts, however, are still positive over the sector because of major projects in the pipeline, such as the Sports Hub in Kallang, as well as the integrated resorts.

CIMB-GK economist Song Seng Wun expects the first-quarter figure released by the Government yesterday to be revised up when fuller data comes out next month.

He noted that the estimates covered only January and February, which included a break for the Chinese New Year holiday.

With last month included, the growth figure should go up, he said, adding that better performances should also come in for the later quarters this year.

‘The intention is to get everyone up and running as quickly as possible in an environment where cost continues to be an issue, so we should see accelerated activity in the sector as developers try to finish projects,’ said Mr Song.

Construction firms also expressed surprise at the figures.

‘Everyone’s still very busy, so right now, we should be at the peak for the sector,’ said Mr Goh Yeow Lian, the executive chairman and managing director of building contractor Wee Hur.

Source : Straits Times - 11 Apr 2008

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KSH wins $53m KepLand deal

CONSTRUCTION and property group KSH Holdings has secured a contract worth about $53 million from a Keppel Land subsidiary.

The contract from Keppel Land Realty is for the construction of Madison Residences, an 18-storey luxury condominium development at Bukit Timah Road.

Construction work is scheduled to begin in June and expected to be completed within 130 weeks.

Choo Chee Onn, executive chairman and managing director of KSH Holdings, said: ‘Including this contract, our total contract value secured within the first three months of this year has exceeded $277 million, more than half of the $510 million we had achieved for 2007.’

Existing orders now stand at more than $658 million, with the unfulfilled contract value for all existing contracts on hand expected to cover up till the third quarter of the financial year ending March 31, 2011.

Mr Choo added that KSH would continue to expand its clientele base to include more blue-chip property developers.

Besides the Madison Residences deal, the group’s current residential contracts include three at Sentosa Cove. These include the $121 million The Coast contract and the $65 million Turquoise contract, both from Ho Bee Group.

The third, Seascape At Sentosa Cove, was awarded by Seaview (Sentosa), a co-owned company of Ho Bee and IOI Group.

Other residential projects on hand include a $53 million high-end condominium residential project at Orange Grove Road, also from Ho Bee, and a $32 million contract for the construction of landed housing at Old Holland Road from developer Brisbane Development.

Source : Business Times - 3 Apr 2008

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Order book swells for KSH and Lian Beng

KSH bags $121m Sentosa condo job; Lian Beng nets two deals worth $90m.

RIDING the continuing boom, two construction firms announced big contracts yesterday.

KSH Holdings said it has won a contract worth more than $121 million for the construction of a luxury condominium, Seascape at Sentosa Cove, which is jointly owned by Ho Bee Investment and IOI Land.

And Lian Beng Group said it has been awarded two contracts worth $90.2 million in total - one from Voda Land for the construction of a condominium, Amber Residences, and the other for an industrial building at Paya Lebar iPark, awarded by Scorpio East Properties .

KSH said the Sentosa contract brings its construction order book to more than $614 million. Work on the 151-unit Seascape is scheduled to start next month and is expected to be completed in 28 months.

‘This is our fourth high-end residential project at Sentosa Cove since The Berth By The Cove and The Berthside, which were awarded in June 2004 and completed in October 2006, and the fifth for us here including One°15 Marina Club,’ said KSH executive chairman and managing director Choo Chee Onn.

KSH’s order book has grown more than 162 per cent in less than 16 months, Mr Choo said.

Lian Beng said its two contracts bring its order book to about $700 million.

The Amber Residences contract is worth $73.5 million while the design-and-build contract for the building at Paya Lebar iPark is worth $16.7 million. Work on Amber Residences is expected to start in May 2008 and will be completed over 30 months, while the other contract is expected to be completed by early 2009.

Both companies are gunning for more contracts. ‘The demand for construction services is still very strong, and there are many more projects out there for tender,’ said Lian Beng’s managing director Ong Pang Aik.

Analysts agree, saying that even as the property market takes a breather, the construction sector continues to recover, driven by a new phase of nationwide projects.

‘We are still sanguine about the sector’s prospects, given the development plans in place for the island, and the visibility it offers against the backdrop of uncertainty tainting the global economy,’ Phillip Securities analyst Stella Tan said in a recent note.

KSH shares gained 1.5 cents to close at 41.5 cents yesterday, while Lian Beng’s stock rose half a cent to close at 40.5 cents.

Source : Business Times - 13 Mar 2008

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