BCA Off-site Levy Scheme: Building a Smarter, More Transparent Construction Industry

The construction industry in Singapore is poised for a transformative shift with the introduction of the Off-site Levy Scheme (OLS) on 1st January 2024 by the Building and Construction Authority (BCA). This scheme seeks to address the Built Environment sector’s transformation, by incentivizing the adoption of Design for Manufacturing and Assembly (DfMA) practices. Let's delve into the challenges faced without a robust worker management system and how the OLS offers a solution.

Challenges of a Manual Worker Management System

Historically, construction firms have grappled with numerous challenges stemming from inadequate worker management systems. These challenges include:

• Inefficient Resource Allocation: Without proper tracking mechanisms, firms struggle to allocate resources effectively, leading to delays and cost overruns.
• Limited Transparency: Traditional methods of tracking worker movements lack transparency, making it difficult for employers to monitor compliance with safety regulations and project schedules.
• Safety Concerns: Inadequate monitoring increases the risk of on-site accidents, jeopardising the safety of workers and the overall project timeline.

Benefits of the Off-site Levy Scheme

Addressing these challenges head-on, the OLS incentivises firms to adopt DfMA practices and off-site construction, effectively mitigating inefficiencies and safety concerns while driving productivity and innovation.

• Lowering Work Permit (WP) Levies for Off-site Workers: One of the key features of the OLS is the reduction in WP levies for Work Permit Holders (WPHs) engaged in off-site construction. This incentivizes firms to shift a portion of their construction activities to off-site facilities, where processes are streamlined, and risks are minimised.

• Boosting Productivity and Efficiency: DfMA streamlines construction processes, reduces on-site labour, and minimises onsite risks, ultimately leading to faster project completion and cost savings.
• Enhancing Worker Safety: With more work happening in controlled off-site environments, the scheme promotes a safer work environment for construction workers.

Requirements of the Off-site Levy Scheme

To enhance transparency and worker management, a crucial requirement of the OLS is the implementation of a worker management system with:

• Uneditable location records: This ensures accurate tracking of worker movements and prevents data tampering.

The Hubble Platform enhances oversight measures by assessing historical attendance data, facial mismatch, workers outside geofenced areas, adjusted attendance time to validate employees' adherence to schedules.

• Real-time location tracking: This empowers employers to monitor worker safety and adherence to regulations.

Map view: The Hubble Platform strengthens accountability with real-time location tracking to ensure workers are within geofenced areas. Zoom in to view the precise location of your workers.

Efficiently filter and search workers according to their details like company and trade.

Floorplan view: Optimise your worker allocation and planning between different floors with your own floorplan.

Contact us today to find out how Hubble can fulfil the above requirements for your organisation.

Additional requirements of the OLS include full-time workers dedicating a minimum of 35 hours per week or 80% of their working hours to activities within automated DfMA facilities. It's essential to bear in mind that the appointment term for the scheme spans 3 years. 

Furthermore, firms looking to capitalise on the reduced WP levies offered by the scheme must also satisfy specific accreditation criteria, including:

• Precaster Accreditation Scheme (PAS) PC1A
• Manufacturer Accreditation Scheme (MAS) (Prefab MEP) Tier 2
• Structural Steel Fabricators’ Accreditation Scheme S1

They must also use the Human Capital Diagnostic Tool (HCDT) to showcase their HR capabilities, indicating efforts in localisation such as hiring locals and enhancing HR planning. 

Conclusion

In conclusion, the OLS heralds a new era of efficiency and transparency in Singapore's construction industry. By offsetting costs through lowered WP levies while simultaneously encouraging the adoption of innovative practices like DfMA, the OLS empowers firms to thrive in a competitive landscape. By embracing the OLS, construction companies can build smarter, safer, and more sustainable projects, paving the way for a brighter future in the built environment sector.