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Organization : Building and Construction Authority
Service Name : MechC Mechanisation Credit Online Scheme
Country: Singapore

Website :

MechC Scheme :

1. How will this incentive scheme benefit my company?:
This scheme will help builders, including both main contractors and sub-contractors, to defray the cost of adopting technologies that improve productivity in construction projects.

Related : BCA CoreTrade Online Registration System Singapore :

2. What are some of the equipment that can be supported?:
Equipment that can directly improve productivity in the construction work such as vibratory screed leveller, power float machine, concrete pump, spray paint equipment, boom lift, scissor lift etc will be favourably considered.

Equipment which is not used directly to carry out the construction work such as power generator, passenger hoist, lighting tower, noise meter, security system, thermal fogger machine, water pump, weighbridge, computer hardware and software etc will not be supported under the Mechanisation Credit (MechC) scheme. Other equipment that is already commonly used in construction such as lorry cranes and piling equipment used for foundation works will not be supported as well.

3. Is the Mechanisation Credit (MechC) scheme limited to equipment used at construction sites?:
Generally, equipment which increases productivity in construction work at project sites will be considered for funding support. Equipment used in prefabrication yards by steel fabricators and precast manufacturers to increase productivity in such offsite facilities may also be considered for funding support.

4. Can a company submit multiple applications?:
Yes. A company can submit multiple applications until the funding cap has been reached.

5. When did the 2nd Tranche of CPCF commence and how long is the fund expected to last?:
The 2nd tranche of CPCF commenced on 1st June 2015 with S$450 million set aside for the next three years to help firms improve productivity.

6. Is there any holding period for the equipment purchased with funding support under the Mechanisation Credit (MechC) scheme?:
The holding period shall be one year from the end of Qualifying Period for cash payment or one year added on from the end of hire-purchase period.

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7. Is there a deadline for equipment to be purchased or leased?:
Application must be submitted on or before making the equipment purchase or lease. Equipment must be purchased/ leased within a year from the date of application.

8. What is the evaluation criterion?:
The applications will be evaluated based on the potential productivity improvement that the equipment could bring about. The relevant construction work/trade should yield a man-power savings or a productivity improvement by at least 20% for the Standard MechC Scheme or 30% for the Enhanced MechC Scheme (please take note of the additional qualifying criteria under the Enhanced MechC Scheme as listed under the MechC Guidelines).

9. Is purchasing an excavator applicable for funding support under the Mechanisation Credit (MechC) scheme?:
No, the MechC scheme will not support equipment that is commonly used in the construction industry (please refer to the List of Supportable Equipment for more details).

10. Can I purchase/lease equipment from my subsidiary company?:
No funding support shall be provided for firms which purchased/leased equipment from related companies.

11. What is the funding amount for equipment purchase and leasing?:
Depending on the productivity improvement, the funding support is as shown below:
MechC funding table with Standard and Enhanced Scheme Standard MechC Scheme Enhanced MechC Scheme*

For Purchase of Equipment:
Equipment cost < $100,000, grant up to 50% or capped at $20,000.
Equipment cost < $125,000, grant up to 70% or capped at $25,000.
Equipment cost > $100,000, grant up to 20% or capped at $100,000.
Equipment cost >$125,000, grant up to 20% or capped at $100,000.

For Leasing of Equipment:
For leasing cost <$30,000, grant up to 50% or capped at $6,000.
For leasing cost <$30,000, grant up to 70% or capped at $6,000.
For leasing cost > $30,000, grant up to 20% or capped at $30,000.
For leasing cost > $30,000, grant up to 20% or capped at $30,000.

12. Is there any limit on the funding for each company?:
From 1 June 2015, each firm has a new funding cap of $250,000, of which $200,000 is for the purchase of equipment and $50,000 is for the lease of equipment.

However, a firm can earn additional credit under the MechC Referral Programme* to raise the per-firm funding cap. The Referral Programme allows firm to increase their per-firm funding cap by referring builders who are new to the MechC Scheme. Each referee firm can only be referred once by any referrer.

$20,000 increased per-firm funding cap for every successful referral case (for purchase of equipment and up to 20% may be used for leasing).

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