Professional Practice I Assignment Slides
- 1. EXTENSION OF KUALA LUMPUR TWIN TOWER
- 2. PROCUREMENT
- 3. PROCUREMENT METHOD Client’s requirements: ● Have full control of the design and able to introduce changes from beginning till the completion ● Not interested in the daily dealing with too many parties except the few key members of the project ● Complete project on time ● Minimum variation to the contract price during the construction
- 5. TRADITIONAL PROCUREMENT METHOD How does it work? ● Design phase to Construction phase ● Consultant teams are appointed at the early stage to carry out the design process. ● Work will then tender out to the suitable contractor only after design process is completed. ● Client can involved in the design stage to ensure it is within their requirements.
- 7. TRADITIONAL PROCUREMENT METHOD ● TIME 1. Priority of this project fall into quality and cost due to time is not constraints. 2. Provides medium time risk to the client because it requires longer time frame for the Pre and Post Tender Stage. Duration of the project is 5 years WHY THIS METHOD? Time given is sufficient for this Kuala Lumpur Twin Tower Mega project
- 8. TRADITIONAL PROCUREMENT METHOD 1. Client can be involved in the design process with the consultant team to ensure that it is within the their requirement. 2. Client able to make decision, changes and provide instruction during the designing stage with the consultant team Have full control of the design and able to introduce changes from beginning till the completion WHY THIS METHOD? Kuala Lumpur Twin Tower is a tourist area and the landmark of Malaysia, quality of the work must be taken into consideration. ● QUALITY
- 9. TRADITIONAL PROCUREMENT METHOD Construction cost given is RM 1.2 billion. 1. This method is the most suitable as it provide lower cost risk to the client due to the use of lump sum contract. 2. Any overcharging fees will be bear by contractor. 3. The amount is agreed between the parties in the contract before the construction start. 4. Having a completed design of the project before tendering process can provide the client certainty of the construction cost and the design quality. ● COST Minimum variation to the contract price during the construction
- 10. TRADITIONAL PROCUREMENT METHOD 1. The client only have to communicate with the consultant team and only have contractual relationship with the main contractor and consultants. 2. This form of procurement is also suitable for both experience and inexperienced client because client can get advice from the consultant team regarding to the project. 3. Subcontractors are dealt directly by the main contractor. The client is not interest to deal with too many parties except the few key members of the project.
- 11. CONCLUSION TRADITIONAL METHOD - Longer time frame but ensures better quality and cost delivered - Does not need to deal with multiple parties but only key players - Price certainty of construction cost unlike other methods - For experience and inexperience clients unlike other methods
- 12. TENDER METHOD
- 13. TENDER METHOD Client’s requirements: ● Reasonably transparent selection process ● Eliminate potentially non-performing contractor
- 15. SELECTIVE TENDERING Tender Procedure Pre-qualification Stage 1. Advertisement in newspaper to invite interested tenderers to submit their company profiles for evaluation in the Pre-qualification Form 2. A list of pre-qualified contractors will then be included in the final tender list and invited to collect the tender documents.
- 16. SELECTIVE TENDERING Tender Procedure Pre-qualification Stage 1. Advertisement in newspaper to invite interested tenderers to submit their company profiles for evaluation in the Pre-qualification Form 2. A list of pre-qualified contractors will then be included in the final tender list and invited to collect the tender documents. Eliminate potentially non-performing contractors. Reasonably transparent selection process
- 17. SELECTIVE TENDERING Tender Procedure 3. The list of pre-qualified contractors will proceed on to the tendering process. 4. Evaluation process of tender submissions from the list of pre-qualified contractors takes place. 5. The most competent and suitable contractor will be selected. Quality Assured
- 18. SELECTIVE TENDERING Tender Procedure 6. The selected contractor will proceed on to the negotiation process. 7. The price negotiation would take place until an agreement is reached and both parties are satisfied, leading them to enter into contract for construction works to commence.
- 19. SELECTIVE TENDERING (TWO STAGE) Reasonably transparent selection process Eliminate potentially non-performing contractor Quality Assurance
- 21. CONTRACTUAL ARRANGEMENT WHAT IS LUMP SUM CONTRACT ? “Lump sum” price for all the work agreed before the work begin whereby contractor is required to submit a total and global price. Contractor is responsible for executing the complete contract work for a stated total sum of money. TYPE OF CONTRACT LUMP SUM CONTRACT
- 22. CONTRACTUAL ARRANGEMENT WHY LUMP SUM CONTRACT ? Based on client’s condition and consideration : 1) Unfamiliar with construction industry 2) Not interested on dealing with too many parties 3) Minimum variation TYPE OF CONTRACT LUMP SUM CONTRACT
- 23. CONTRACTUAL ARRANGEMENT PAM CONTRACT 2006 (WITH QUANTITIES) WHY PAM CONTRACT 2006 ? - private sector project - traditional procurement method FORM OF CONTRACT
- 24. CONTRACTUAL ARRANGEMENT ● TIME ● QUALITY ● HEALTH AND SAFETY EMPLOYER’S CONSIDERATION AND REQUIREMENT
- 25. CONTRACTUAL ARRANGEMENT ● TIME 1. Clause 21.1 Possession of the site for execution of the works on the Date of Commencement 2. Article 7 Completion Date 3. Clause 22.1 Certificate of Non-Completion 4. Clause 22.2 Pay for the agreed Liquidated Damages (RM 250,000.00 a day) 5. Clause 15.2 Written notice for practically completed. EMPLOYER’S CONSIDERATION AND REQUIREMENT
- 26. CONTRACTUAL ARRANGEMENT ● QUALITY Clauses 6.0 Material, Goods and Workmanship To Conform to Description, Testing And Inspection supports the requirement of good workmanship Clauses 6.3 Inspection and testing Clauses 6.5 Work not in accordance with the contract Clauses 6.8 Warranties in respect of materials and goods EMPLOYER’S CONSIDERATION AND REQUIREMENT
- 27. CONTRACTUAL ARRANGEMENT ● HEALTH AND SAFETY A) GENERAL ITEMS IN PRELIMINARIES B) EMPLOYEE’S SOCIAL SECURITY ACT 1969 C) WORKMEN’S COMPENSATION ACT 1952 D) PAM CONTRACT 2006 (WITH QUANTITIES) E) OCCUPATIONAL SAFETY AND HEALTH 1994 ( OSHA 1994) EMPLOYER’S CONSIDERATION AND REQUIREMENT
- 28. CONCLUSION
- 29. THANK YOU! KENNETH TAN SIN KWANG 0322482 CHAN YI FUNG 0323057 LEE FONG YEN 0321976 LEE LIN HUI 0322797 LEONG LI JING 0323628 LEONG MIN HUI 0327596 ADELE LU KHAI SYN 0323151 LEW QUO MING 0322884 WONG JIA JING 0327221 YEAP PHAY SHIAN 0322243 YEE JYH LIN 0322408
- 30. THANK YOU! KENNETH TAN SIN KWANG 0322482 CHAN YI FUNG 0323057 LEE FONG YEN 0321976 LEE LIN HUI 0322797 LEONG LI JING 0323628 LEONG MIN HUI 0327596 ADELE LU KHAI SYN 0323151 LEW QUO MING 0322884 WONG JIA JING 0327221 YEAP PHAY SHIAN 0322243 YEE JYH LIN 0322408