NEC Contracts has unveiled a new study highlighting the paradox within Singapore’s construction sector: whilst 64% of projects are delivered on time and within budget, 61% of professionals perceive supply chains as adversarial. The research, involving over 1,000 industry professionals globally, underscores the need for improved trust and collaboration in the industry.
The report, titled *Trust, Contracts and Outcomes: A Global Study of Construction Supply Chain Relationships*, reveals that 81% of Singapore respondents believe trust is crucial for project success. However, only 34% have participated in projects using collaborative contracts, despite 75% supporting their broader adoption.
Key issues identified include uncontrolled scope changes, poor estimating, inflationary pressures, and a late payment culture, contributing to business instability and disputes. Effective communication, clear processes, and trust-based relationships are seen as vital for minimising disputes.
Renee Paik, Head of Asia Pacific at NEC Contracts, noted, “There is genuine enthusiasm for collaborative contracting, and in markets like Singapore, we are seeing strong momentum of interest translating to a growing number of pilot projects.”
The study suggests that client organisations play a pivotal role in driving the shift towards collaborative contracting.
