Building Green Without Breaking the Bank

Affordable Strategies for Contractors to Meet New Sustainability Regulations

Oct 07, 2024

“The greatest threat to our planet is the belief that someone else will save it." — Robert Swan

Sustainability is no longer just a buzzword in the construction industry—it’s becoming a baseline requirement. In Singapore, the new sustainability regulations set to take effect in 2024 are making it mandatory for contractors bidding on large government projects to prove their environmental credentials. And while going green sounds like it might drain your budget, the truth is, with the right strategy, you can meet these regulations without burning a hole in your wallet.

If you’re thinking, “Great, but where do I even start?”—don’t worry. We've spoken to industry experts, including Andy Lu, CEO from Wee Hur Construction, also a SCAL Council member, and Justin Chew, Senior Manager, Enterprise Sustainability/Corporate QAQC, from Kimly Construction to bring you practical tips that won’t break the bank. So buckle up, and let’s look at how you can turn sustainability into a competitive advantage.

Text within this block will maintain its original spacing when published

but first… we’d really appreciate if you’d share The Contractor with your colleagues. our editor has promised he’ll tell fewer of his terrible jokes around the office if you do. Please save us.

And…

#1 Use Budget-Friendly Sustainable Materials

One of the first places to cut costs without sacrificing sustainability is in the materials you use. In the past, opting for eco-friendly materials might have felt like a splurge, but today, prices have come down, and many sustainable options are quickly becoming industry norms.

“We started by using energy-efficient equipment in our site offices—things like LED lights, FSC-certified paper, and even more energy-efficient fridges and printers,” explained Justin Chew. “These are small changes, but when applied across an entire project, they can add up in savings and sustainability points.”

On the construction site itself, the Kimly project team focuses on recycling and minimizing waste. Cutting down on material use, as well as leftover materials being reused in the site wherever possible. Not only does this reduce the carbon footprint of the project, but it also helps keep material costs under control.

So, instead of spending big on the latest shiny green tech, look at where you can make sustainable swaps in your current processes. Chances are, you’re already using some of these materials—just not with the sustainability box checked!

#2 Energy Efficiency on a Budget

It’s one thing to use eco-friendly materials, but it’s another to tackle energy consumption head-on. The good news? Going energy-efficient doesn’t always mean going expensive.

One standout strategy is switching from diesel-powered machinery to battery energy storage systems (BESS). Andy Lu shared that his team at Wee Hur Construction has similar adopted energy-efficient equipment measures, such as cutting their carbon output by up to 90% through BESS. While upfront costs can seem high, Andy explained that as more companies embrace this technology, prices will continue to drop.

Justin echoed this sentiment, highlighting how Kimly Construction replaced traditional diesel generators with BESS, resulting in cost savings, reduced noise pollution, and lowered carbon emissions. “We’ve seen big reductions in our carbon footprint without massive costs”.

However, if you’re not ready to make that leap, there are smaller, more manageable steps. Upgrading to LED lighting on-site, using energy-efficient tools, or even just optimising energy use in site offices can lead to significant savings in both costs and emissions. It’s about finding the solutions that work for your specific project and budget.

#3 Tapping into Government Incentives

We get it—sustainability often feels expensive, especially when you’re working on tight budgets. But don’t forget that there’s money on the table in the form of government grants and incentives.

In Singapore, the expanded Energy Efficiency Grant (EEG) is a lifeline for contractors looking to adopt sustainable practices without heavy upfront costs. Companies can receive up to 70% support for qualifying energy-efficient equipment. Kimly Construction has started to study tapping into these grants to offset costs and Wee Hur Construction plans to do the same with future sustainability initiatives.

Additionally, there are incentives like the Productivity Solutions Grant (PSG), which helps businesses fund digitalisation and energy-efficient technology upgrades. These grants are a practical way to reduce the financial burden while moving towards greener practices.

Need some guidance on how to apply? It’s simpler than you think. Most of these grants are aimed at making it easy for small and medium-sized businesses to participate in Singapore’s push for sustainability. And with the financial support available, you’ll find that the cost of going green is a lot more manageable.

Check out last months post

# 4. Learn from Industry Leaders: Collaboration is Key

One of the best ways to avoid expensive mistakes is to learn from companies that have already walked the sustainability path. Andy Lu emphasized the importance of collaboration and shared knowledge in making sustainability affordable.

“The industry is evolving fast, and you don’t want to be left behind. But the good news is that as more companies adopt these practices, it becomes easier and cheaper for everyone to comply. Knowledge-sharing and industry collaboration can accelerate sustainability without a huge cost.” - Andy Lu, CEO of Wee Hur Construction.

Lu believes that collaboration across the construction industry is essential, not only to meet sustainability requirements but also to reduce costs. Partnering with suppliers, subcontractors, and industry bodies like SCAL allows companies to share resources, experiences, and insights, making it easier to adopt sustainable practices without excessive financial strain.

By working together, the construction industry can turn sustainability into a shared journey, making it more accessible and less daunting for contractors of all sizes.

Case Study: Kimly’s Cost-Effective Green Strategy

Let’s talk specifics. Kimly Construction recently implemented Battery Energy Storage Systems (BESS) on their projects, replacing diesel generators. This switch not only slashed their carbon emissions but also brought down costs associated with fuel and maintenance. On top of that, the system eliminated noise and air pollution on-site, leading to smoother operations.

Kimly didn’t have to make huge investments to meet the new sustainability regulations. By using BESS and combining it with other affordable sustainable practices—like energy-efficient site offices and recycling of materials—they managed to meet project requirements while staying within budget.

The lesson here is simple: you don’t need to go all out on expensive green tech to meet the new regulations. Practical, small steps can help you hit those sustainability targets without breaking the bank.

Advertisment

Maximise Your Resource Efficiency With Our New ISO Services: SC2 Pte Ltd

We are excited to launch our new ISO 50001 and ISO 46001 certification services—your pathway to enhanced energy and water management!

ISO 50001: Energy Management
Our comprehensive energy management service enables you to systematically improve energy performance, leading to reduced consumption and significant cost savings. Our expert audits ensure compliance, and enhanced operational efficiency for your business.

ISO 46001: Water Efficiency Management
Our new water efficiency management service is here to help you optimise water usage and minimise waste, resulting in lower utility bills. SC2 offers hands-on support, guiding you through every step of implementation to help you achieve your sustainability goals effectively.

Find Out More

Wrap Up: Don’t Let Sustainability Drain Your Budget

Meeting Singapore’s new sustainability regulations doesn’t have to mean sacrificing your profits. With a mix of affordable materials, energy-efficient practices, and government support, even small steps can add up to big wins.

As Justin puts it, “It’s great to be an early mover, but for smaller contractors, it’s better to learn from those who have already paved the way. Start small, scale up when you’re ready, share the journey with others”.

So, before you start stressing about the costs of going green, remember that there are plenty of resources, grants, and collaborative opportunities available. Sustainability might just be your ticket to winning more tenders—and keeping your wallet happy.