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The literature suggests that developing countries must use foreign construction enterprises to undertake much of the building and infrastructure projects which they require for their economic development. Authors suggest that foreign firms can have various impacts, both positive and negative, on the construction industries of the host countries. This study examines the effect of the operations of foreign contractors in Singapore on their local counterparts and on the nation's construction industry. The study assesses the extent to which Singaporean construction companies have grown during the past two decades, and investigates the influence of foreign firms in this growth process. It is based on interviews of prominent construction practitioners and administrators. It was found that Singapore firms grew considerably during the period under review, and that foreign firms contributed to this growth. It is concluded that there is scope for mutually beneficial co‐operation among foreign and local contractors.

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