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 !
