New CRS Requirements: Paid-Up Capital and Project Track Record – Are You Ready?

From 1 June 2025, the Building and Construction Authority (BCA) will implement enhanced requirements under the Contractors Registration System (CRS). This marks a significant shift for contractors, especially those employing S Pass and Work Permit holders in the construction sector.

Two of the most critical updates relate to minimum paid-up capital 和 project track record. Contractors who are not prepared risk delays in licensing and difficulties hiring foreign workers.

1. What Is the Contractors Registration System (CRS)?

The CRS is a national registry that qualifies contractors for both public and private sector construction projects. Traditionally, it has been used to assess a firm’s ability to tender for government projects. With the new framework, it is becoming the primary licensing gateway for all contractors who employ foreign construction workers.

2. New Minimum Paid-Up Capital Requirement

Under the updated CRS rules:

Contractors must have at least S$50,000 in paid-up capital to qualify.
This ensures firms demonstrate financial strength and accountability before being granted approval.

Why it matters: Contractors who previously operated on thin capitalisation will need to recapitalize their business or risk being locked out of the workforce supply chain.

3. New Project Track Record Requirement

Another key change is the introduction of a project track record threshold:

Firms must show at least S$300,000 worth of completed projects over the past three years.
Projects must be verifiable and properly documented.

Why it matters: This raises the barrier to entry, ensuring that only contractors with proven operational experience can access the registry. Start-ups and small firms may need to partner with established contractors to meet this requirement.

4. Who Will Be Affected?

Existing contractors who already hire foreign workers must ensure compliance by June 2025.
New contractors looking to enter the industry must meet the capital and track record standards from the outset.
SMEs in construction will face the biggest challenge, as many may fall short on capitalisation or documented projects.

5. Steps to Prepare Now

To avoid disruptions, contractors should:

Review company financials – ensure your paid-up capital meets the minimum S$50,000.
Compile project records – maintain contracts, invoices, and completion certificates to substantiate your S$300,000 project track record.
Plan ahead for renewal – applications and renewals will likely see processing delays closer to June 2025.
Consider restructuring – SMEs may explore joint ventures or business consolidation to meet requirements.

Final Thoughts

The new CRS requirements mark a major step in raising standards across Singapore’s construction industry. While the S$50,000 paid-up capital 和 S$300,000 project track record thresholds may seem daunting, they ultimately ensure that contractors have the financial and operational capacity to deliver safe, high-quality projects.

Contractors who prepare early will not only avoid compliance risks but also gain a stronger footing in the industry’s new licensing landscape.

Need clarity on how the new CRS rules affect your business?
Speak to the team at USAFE for expert guidance on BCA licensing, compliance, and strategic planning for your construction firm.

Disclaimer: This article is for informational purposes only and does not constitute any professional advice. Feel free to contact us to consult with our professional advisors team for personalized advice and guidance.

Sources: https://www1.bca.gov.sg/procurement/pre-tender-stage/contractors-registration-system-crs