BACHELOR OF QUANTITY SURVEYING (HONS)

PROFESSIONAL PRACTICE 1
TUTORIAL 2
PROCUREMENT METHODS

LAI EUGENE LAI EUGENE

LAU WAN YEE 0328947
LIM XIAO SHI 0324410
LIM YIN RU LIM YIN RU
SCENARIO A – Fire Damaged Airport

Six weeks before Chinese New Year, a fire occurs in the booking hall at KLIA2.

The airport authority is heading towards one of the busiest times of the year and

could suffer a loss of profit, somewhere in the order of RM 500,000 per day if facilities

are not able to cater for the holiday demand.

(Anticipated contract value: RM 20 million)

MANAGEMENT CONTRACTING
SHORTAGE OF TIME DUE TO CHINESE NEW YEAR
IS COMING SOON, BUSIEST TIME OF THE YEAR
REASONS

TIME
• Shortage of time, cannot meet the holiday demand
profit loss will occur.
• Management contractor commence work before
overall design is completed, shorter development
time.
QUALITY
• Specialist for each subcontractor (airport building
structure different)

FLEXIBILITY
• Greater owner flexibility.
 MANAGEMENT CONTRACTING

SHORT PERIOD OF HIGH QUALITY OF GREATER

CONSTRUCTION PROJECT RELIABILITY
SCENARIO B – Refurbishment of old rice
mill in the midst of property boom

In the midst of a property boom, a developer purchases an old rice

mill and wishes to refurbish the building, converting it into high-

quality residential accommodation.

(Anticipated contracted value: RM 400 million)
CLIENT’S NEED

TIME

 Period of property boom might be short

 Suffer if releasing property when market is not happening

DESIGN

 Demand high quality building

MANAGEMENT CONTRACTING

DEVELOPER

CONSULTANT
TEAM

MANAGEMENT
CONTRACTOR

WORK
PACKAGES
CONTRACTORS
 ADVANTAGES

Early start on site A client can Buildability Design flexibility

leading to early emphasise quality

completion

Work packages by Improve constructability Allows the client to

An overlapping of design specialist through management change the design

and construction contractor’s input into during construction

design
 RISK

? ?
?
Teamwork of client, Cost uncertainty

management contractor &

consultant team

The final price will not be known

There must be trust and good until the final account of the last

teamwork for management trade contract

contracting procurement to be

successful
SCENARIO C – State Government Community
Project

The Selangor State Government is to develop a new community

facility to provide locally available social care.

(Anticipated contract value: RM 250 million)

Factors that need to be considered

Time
• Time is not the most concern factor in public project
• Exp: Completion deadline is unlikely to be a primary requirement.
• Main objective is towards public accountability

Quality Level
• Community project for social care is more emphasize on
quality
• Funded by government
• Functionality quality of the completed project is important
to the government
Factors that need to be considered

Cost certainty
• Cost is an important aspect for government project
• Minimum risk should be prioritised by getting a certainty in price
• Ensure client can control their financial budget (RM 250 million)

Public accountability (Transparency)

• With a government funded body there is inevitably more
concern about accountability
• For promoting integrity and preventing corruption in public
procurement.
 High quality of project,
Reasonably amount of cost certainty, and
Satisfactory public accountability

Traditional Procurement Method

Traditional Procurement Method

 Produce the highest quality of work

Quality Level  Each process of construction is undertaken by different
parties having varied expertise

 Design will be completed during tender stage

Cost certainty  High level of price certainty will be established except
for the fluctuations in the cost of labour and materials

 Allows certainty in cost and time before commitment to

Public build
accountability  So, there will be a clear accountability and cost
(Transparency) monitoring at all stages
Traditional Procurement Method

Another advantages:

• Controllable variation
• Can obtain the best price through competitive tendering
• Procedures well known

Negative aspects:

• Slow process from inception to start on site

• Lack of involvement of contractor in design process
SCENARIO D – Multi-storey Car Park

Taylor’s University is considering to build a multi-storey car park

building in the vicinity of the campus to overcome the serious

shortage of car park spaces. (Anticipated contract value: 50

million)
 Key Points

Taylor’s University is considering to build a multi-storey car park

building in the vicinity of the campus to overcome the serious

shortage of car park spaces. (Anticipated contract value: 50

million)

Tender Period Duration of Project Parties Involved Building Design

 Design & Build

DEVELOPER

1. Develop &
Construct CLIENT’S
2. Package Deal CONSULTANT TEAM

DESIGN &
BUILD
CONTRACTO
R

SUPPLIERS SUB- D&B CONSULTANT TEAM

CONTRACTORS
 Advantages

Accountabilit Fewer Reduced Cost certainty Buildability

y disputes & project Lump sum Contractor’s
Contractor more duration arrangement input in
in-charge is effective Construction (Guaranteed constructability
responsible. management commences Maximum and flexibility in
Intercommunic shortly after Price). identifying
a-tion between award. optimum
design and Overlap in construction
construction design and methodology.
team. construction
phase.
 Final Justification

Taylor’s University is considering to build a multi-storey car park

building in the vicinity of the campus to overcome the serious

shortage of car park spaces. (Anticipated contract value: 50

million)
TENDER PERIOD DURATION OF PROJECT PARTIES INVOLVED BUILDING DESIGN

1. Quicker compared to traditional routes.

2. Contractor in-charge handles project. Hence, Taylor’s Management is
not required to supervise every stage.
3. Simple modular design. IBS can be used to speed up project.
4. D&B Contractor would be more knowledgeable in IBS design.
5. Simple requirements of a carpark allows well-defined project
requirements.
THANK YOU !