You are on page 1of 77

MARA UNIVERSITY OF TECHNOLOGY

DEPARTMENT OF QUANTITY SURVEYING,


FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

INTRODUCTION

As a developing country, Malaysia needs to build a lot more facilities and


buildings to succeed its Vision 2020. And in that case, it means that Malaysia
needs more construction industries to be acknowledged as a developed country.
On the whole, this industry can be divided into two main categories which are
private and public construction. These types of construction are developed by
two authorities such as developer or investor, and local governments.

A contract is tied between two authorities such as client and contractor to ensure
that the construction is being well done; that is to complete the project based on
the agreed guidelines which involved their obligations, responsibility, condition
and other determining factors along the project. Similarly, a building contract is
an agreement to build, and the standard form of a building contract is a
document that has been recognized by all parties in the industry that allocates
the obligations, rights and responsibilities of the parties to the contract.

In managing a contract, a Quantity Surveyor’s contribution is to ensure the


management of the contract is followed by all parties. A constructive Quantity
Surveyor should have a lot of information regarding contracts and it would be
very helpful if the Quantity Surveyor has experience in handling a certain project.
Apart from that, a Quantity Surveyor is also responsible in the preparation of the
contract documents. This document is very essential because it includes the
agreement between the client and the contractor. Problems would appear if there
is no black and white agreement between the client and the contractor. These
would delay the project and the impact would be unfavorable. So the purpose of
a contract of a project is to avoid any hostile circumstances that would delay the
project.

1 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
1.0 PROJECT TITLE

In preparing a practical training report, I had chosen to write Pre-Contract stage


of the construction project for my Report A.

I had selected one example of private project for this report: -

“CADANGAN PEMBANGUNAN KOMPLEK TERMINAL FERI DAN JETI


PENUMPANG YANG MENGANDUNGI 2 TINGKAT BANGUNAN BERSERTA
MENARA KAWALAN DI ATAS LOT TL207536052, JALAN MERDEKA, WILAYAH
PERSEKUTUAN LABUAN”

2 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
2.0 PROJECT’S LOCATION

This project situated at lot 3517 to lot 3530 and 59 units single storey at lot 1 to

59 for phase 1c-2 at Taman Seri Raia, Kampung Kepayang Mukim Sungai Raia, Daerah

Kinta, Perak Darul Ridzuan. That area is the best location which situated in the near of

the town (Medan Gopeng). The site is near with the highway and a police station. A part

of future development will be developing in that site.

The soil condition at the site is sloping gently and easy for the construction take

part. The advantage of the site is easy excess. The location is near with the main road.

So connection to others parties which involved in this project will not cause any problem.

Occupants in this area will feel safe with the government building.

Perak is the one country in Malaysia which increase its developments so with this

project it will make Perak move to another step of its development. The plan of the site

location was prepared. (Refer the drawings A4)

3 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

4 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
3.0 PROJECT’S BACKGROUND

A proposed to build Cadangan Membina Dan Menyiapkan 14 Unit Rumah

Berkembar Satu Tingkat Di Atas Lot 3517 Hingga Lot 3530 Dan 59 Unit Rumah Teres

Satu Tingkat Di Atas Lot 1 Hingga 59 Untuk Fasa 1c-2 Di Taman Seri Raia, Kampung

Kepayang Mukim Sungai Raia, Daerah Kinta Perak Darul Ridzuan the consists of

Ground Floor and First Floor to Flat Roof. Gopeng land Sdn. Bhd. as our client has

instructed Mokhnar & Associates to prepare a tender as a Selective Tendering. Actually

the contractors who were qualified with the condition of this type of Tender will be go to

next process before letter award will be send to chosen contractor. This process called

Tender Evaluation which QS will value the submitted Tender Document from

Contractors. Those who were qualified will be listed as one of the contractors who will

handle the project construction. All the qualification process was handled by Consultants

and will be award from client (Gopeng Land Sdn. Bhd).It is to make sure that the

contractor chosen is the best contractor that qualify to do the construction work on the

agreed period that been given by the client. After all the tendering process has been

done, Gopeng Land Sdn. Bhd agreed to give this project to Creatchain (M) Sdn.Bhd. as

the main contractor for this project. Below has been stated the construction period that

had been agreed between the consultants and the client: -

i) Period to complete the project : 18 Months.

ii) Date of purchasing site : 01st Nov 2006

iii) Date of construction completed : 30th Apr 2008

iv) LAD : RM 1509.00/DAY

Gopeng Land Sdn Bhd agreed to take this value is RM 5,801,546.10

5 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

3.1 PROJECT PARTICULARS

The project shall mean


Owner
PERBADANAN LABUAN
Wisma Perbadanan Labuan,
peti surat 235,87008
Wilayah Persekutuan Labuan

Lead Consultants
Civil and Structural engineers
UNIFIED CONSULT SDN. BHD.
58A, Jalan Serkut,
Taman Cheras Utama,
Batu 3.5, Jalan Cheras,
56100 Kuala Lumpur

Architect
ATSA ARCHITECT
45A, Jalan Tun Mohd Fuad 3,
Taman Tun Dr. Ismail,
60000 Kuala Lumpur

Mechanical & Electrical Engineer


BUDIMAN ISMAIL CONSULTING ENGINEERS
42-G, 1 & 2, Jalan 4/76C,
Desa Pandan,
55100 Kuala Lumpur

6 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
3.2 OTHER INFORMATION

TYPES OF TENDER

• SELECTIVE TENDERING

INFORMATION OF ADVERTISE

• DATE OF ADVERTISED – 08TH SEPT 2006

• DATE OF CLOSED TENDER – 25TH SEPT 2006

• TENDER LIABILITY PERIOD – 26th SEPT – 27 DIS 2006

(90 DAYS)

TENDER FORM

• PAM FORM

CONTRACT VALUE

• RM 5,801,546.10

CONSULTANT’S ESTIMATE

• CONSTRUCTION’S VALUE- : RM 7,173,953.55


• CONSTRUCTION’S PERIOD : 52 WEEKS

CONTRACT NUMBER

• GL/CD/5914/06

PERFORMANCE BOND

• RM 12,000.00

7 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

3.3 SCOPE OF WORKS

Scopes of works which must be done in this project are:

i) Preliminaries

ii) Building Works

iii) Infrastructure works

iv) Mechanical and Electrical works

8 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
4.0 CONSULTANT AND THEIR ROLES

4.1 ARCHITECT
Architect is the most glamorous consultant in construction project. Architect is

the only designer that can design the type of building just like the instruction and

imagined by client into a layout of drawing to construct by builder into a reality. ZAILANI

ARCHITECT has been appointed by client to be an architect in this private building

project.

Below are the roles of an architect in Pre-Contract and Post-Contract (a bit)

stages: -

a) Deemed to be the client’s representative throughout the period of


construction and until final payment.

b) Leader amongst the consultants that been appointed in the project.


Architect is the only person who can give the order to the other
consultant.

c) The architect able to determine amounts owing to the contractor and


issues certificates for payment based on their observations.

d) Able to be an arbitrator of disputes especially on the job site.

e) Architect also prepares the preliminaries drawings based on the client’s


requirements and also prepare a detail drawing.

f) Prepare a specification work for every plan and drawing that been
prepared according to the client’s requirement which it refer to “Undang-
Undang Kecil Bangunan”.Responsible to get the approval for the plan
that been prepared from the government and the other institution.

9 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
g) Give an order to issue the letter of acceptance (LA) and sometimes also
a variation order (VO) to the contractor.

h) Client also need advise or suggestion from architect to know about the
design and shape of the building that want to build.

i) Any damages must be repair by constructor which it issued by architect


after the construction have been complete.

j) The items which it not sure or not conform to the contract documents,
architect must give the order the contractor to doing that items and
require special inspection or testing of the work.

k) An architect also required to visits the site to see the construction


progress and quality of the work. This role of an architect is to make sure
whether the works by contractor followed the contract document and
familiar with the environment to clear the works related with the role of an
architect especially to present to other parties in meeting.

Apart of that an architect which appointed have the power to review shop
drawings, to prepare change orders which it issued, to order minor changes in
the work, to conduct inspections, to determine the dates of substantial
completion and final completion, and to issue a final certificate for payment.

10 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

4.2 CIVIL AND STRUCTURAL ENGINEER

In this project, the client has been appointed PERUNDING BERSATU


CONSULTING ENGINEERS as civil engineers and PERUNDING AMARBINA
SDN.BHD as structural engineers. Civil and structural engineers are responsible
to design all the structure of the building based on the drawing or layout that
been prepared by the architect so that the stabilization, strength and also the
safety of the building are depending fully to the engineer.

Here are stated the roles of the civil and structural engineers on the Pre-Contract
stages: -

i) Make a design of structure that are suitable with the design that are
prepared by the architect to make sure that the structure can bear the
load that appointed to the building such as live load or dead load etc.

ii) Prepare a detail drawing or layout to the structure that been designed
based on the drawing that prepared by the architect.

iii) Get an approval from the government or other institution for the structure
that been designed.

iv) Make a site visit to recognize the soil condition, to make sure that the site
conditions are suitable with the building that wants to build.

v) An advisor to the client and the architect about all that need to consider in
designing the shape and structural of the building.

vi) Design an infrastructure for the building and also the road and the
drainage for the building.

vii) Give an order to the contractor if there are any changes to the structure
11 PRACTICAL TRAINING (QSD 311)
MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

4.3 MECHANICAL AND ELECTRICAL ENGINEER

Mechanical and electrical engineer is one of the consultant which


responsible in design and involved in electricity works. They are liable to design
the circulation of electricity in the building. Client had appointed PERUNDING
MAHATERA as the mechanical and electrical engineer in this project.

Here are stated the roles of mechanical and electrical engineer in the Pre-
Contract stages: -

i) Prepare preliminaries drawing and also the detail drawing of the


mechanical and electrical installation. Also to prepare a list of quantity for
the mechanical and electrical to be used in preparing the tender and
contract document.

ii) Get the approval from the government and the other institution for the
drawing and specification that been prepared.

iii) Responsible to plan and design the system of circulation electricity,


telephone, air conditioner, fire protection system, water supply, gas and
etc.

iv) Arrange and determine the number of electrical and mechanical stuff
that need to use in the building also to determine the place and the way to
fix it in a suitable manner to the building.

12 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

4.4 QUANTITY SURVEYOR

The most important role in the construction project is Quantity Surveyor

especially in process of maintaining clients economic and budget for the construction

project. MOKHNAR & ASSOCIATES had appointed as QS to handle the project which it

relate with the cost.

Here have been stated the role of quantity surveyor in the Pre-Contract stages: -

i) Make a Feasibility Studies

To determine that the project that want to construct were giving benefit to

the client or to the community or not QS must prepare the Feasibility

Studies.

ii) Prepare a Preliminaries Cost Estimate

Preliminaries cost estimate is an estimate that been made to get the

gross budget for the project. This is made after the feasibilities studies

had been made. The preliminaries estimate is made to give an

explanation to the client about the gross cost for the project. Preliminaries

are made based on the explanations about desire, materials, finishes and

specification from the client.

13 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

iii) Make a Cost Study

The Quantity Surveyor will make a cost studies after the budget are

determine plus with gathering from the other consultant and

accommodate it with the cost plan. Otherwise, the architect will arrange

the design and the specification based on the cost study that been made.

The final of the cost estimate will prepared soon after the architect

prepared the final drawing.

iv) Prepare the Document Tender

After receiving the final drawing from the architect and the engineer, the

process of taking off will be made to get the total of the quantity for the

building for preparing the Bills of Quantities (BQ). The BQ that been

prepared must been included all the elements such as preliminaries,

specifications and etc to be fill by the contractor so that there will be less

undervalued and no additional budget or re-measurement will happened

after the project has finished.

v) Tender Report

After receiving the entire tender document that been priced by the

contractor, the Quantity Surveyor will prepare a tender report after they

make an analysis, check and comparisons to the offer that been made in

the tender document and suggest only one of the contractors to be under

consideration by all parties especially client.

14 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

vi) Letter of Award

After the client has made a decision to choose the contractor that been

recommended by the Quantity Surveyor, the QS will make a letter of

acceptance to the architect to be given to the contractor. This letter of

award shows that the contractor is chosen to build the project.

15 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

5.0 PROJECT SUMMARY

INTRODUCTION

PRE-CONTRACT STAGES
There are two stages during the process of developing a construction project. It divided

into:

i) Pre-Contract stages

ii) Post-Contract stages

However my report consists on the stage of Pre-Contract. Detail explanation

about the chosen project, “Cadangan Membina Dan Menyiapkan 14 Unit Rumah

Berkembar Satu Tingkat Di Atas Lot 3517 Hingga Lot 3530 Dan 59 Unit Rumah Teres

Satu Tingkat Di Atas Lot 1 Hingga 59 Untuk Fasa 1c-2 Di Taman Seri Raia, Kampung

Kepayang Mukim Sungai Raia, Daerah Kinta Perak Darul Ridzuan” will discuss in tender

report section. The Pre-Contract stages are the first stage in the project construction,

which it client will appoint Design Team which stands such as Architect, Quantity

Surveyor, Engineer (Civil, Structure and Mechanical), Land Surveyor, Interior Designer,

Landscape Architect and etc. This team normally takes Architect as a leader and this

process purpose to make sure the planning more successful to get the best design that

follow which Client’s need. All the committees that appoint in Design Team are chosen

according to their responsibilities, attitude, and experiences in their works before.

16 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
This requirement is to make sure the project done better and problem which

come in this first stage will be overcome with consistent. This ‘Consultant Team’ is liable

to manage the entire plan from the design, costing etc. of construction project according

to the client’s desire. This report included process of preparation preliminaries estimate,

Project’s Background, Preparation of Tender Document, Tender Process and Tender

Report which done by Quantity Surveyor for make a decision to chose the best

Contractor to build this residential areas.

17 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
5.1 PRE CONTRACT STAGE CHART

GOPENG LAND &


PROPERTIES SDN
BHD CLIENT

APPOINTED CONSULTANTS

CONSULTANTS
 ZAILANI
ARCHITECT LETTER OF
 PERUNDING ACCEPTANCE
BERSATU
CONSULTING
ENGINEERS
 PERUNDING
AMARBINA
SDN.BHD.
 PERUNDING
MAHATERA
 QS MOKHNAR &
ASSOCIATES PREPARATION
OF TENDER
REPORT

PREPARATION OF TENDER
DOCUMENT

18 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
5.2 PRE-CONTRACT COST ESTIMATE

Generally Pre-Contract Cost Estimate is an estimate for construction value in a

project. In this stage role of QS begin from Preliminaries Cost Estimate until Tender

Report done to appoint the best Contractor in this project. This Chart below shown the

stages that must be precede before Contractor appoints. Cost in a project only will be

known after preparation of pre-contract

PRELIMINARIES

BUDGET

COST STUDIES

FINAL ESTIMATE COST


PLAN

BILL OF QUANTITIES

PRICING OF BILL OF
QUANTITIES

TENDER REPORT

19 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
Cost estimate proceeds by Quantity Surveyor. In this context, QS will prepared cost

estimate in two (2) stages.

1. Preliminary Approximate Estimate

2. Pre-Tender Cost Estimate

5.3 PRELIMINARY APPROXIMATE ESTIMATE

Preliminary cost estimate prepared based on design and plan which it

agreed and included with simple drawing to make assumptions in early stage with early

planning after preliminary drawing’s plan from architect and engineer received. There are

many reasons for preparing the Pre-Contract Cost Estimate such as follows:

1. Client known that how the provision money will use and distribute into the

project.

2. For client to decide to proceed on the project and be prepared on the budget

of the project.

3. Gives the client some brief explanation about the advantages and

disadvantages on the project that will be constructed.

4. By having the preliminary estimate, the other Consultant will easily decide on

the specification that should is use based on the estimate approved by the

Client.

5. Based on the preliminary estimate, the Quantity Surveyor will easily advice

the Client about the elements of the project that should be decrease or

increase so it will accurate on the Client’s budget.

20 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
5.4 STEPS OF PREPARATION OF PRELIMINARY APPROXIMATE ESTIMATE

This measurement based on the Gross Floor Area. Window, door and sanitary

Fittings measure in number as EXTRA OVER. Half of items take as Lump sump for

example plumbing, Cold Water Supply and Waste Pipe as so on.

Price rate based on current price rate or market price and add with extra for

items which it cannot identify by measurement, for example price labour rate, machinery

and cost of management with profit.

Preliminaries measure in extra percentages (%) in total overall cost estimate of

the project. For this project the percentages is 5 %.

Basis of estimating

1. Preliminaries

In this project, the preliminaries measure in extra percentages (%) in total

overall cost estimate of the project. For this project the percentages is 5 % of

the total of the cost of piling, building, internal services, external works and

provisional sums.

2. Piling

The cost for Piling Works are made based on square meter estimated cost

where this amount is seem to be reasonable as it consider the maximum penetration

depth is up to 20 meter.

21 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

3. Building

Basis for estimation of building cost is made on the taking off quantity. But for

frame and work below floor finish cost per Meter Square are use as a basis for the

estimate. Reference may be made based on previous projects with similar nature of

works and adjusted to the current rates.

4. Internal services

The cost for the mechanical & electrical works was prepared by the

mechanical & electrical consultant, in this case is PERUNDING MAHATERA

Sdn.Bhd.

5. External Works

The cost for the external works is based on the Quantity given by the Civil &

Structure Consultant, Perunding Bersatu Consultant Engineer.

6. Provisional Sums

The works that include in provisional sums are Landscaping works, cold

water service and sanitary plumbing. The cost for landscaping works are made

based on the similar previous projects and for the cold water services and sanitary

plumbing Mechanical & Electrical Consultant,Perunding Mahatera Sdn.Bhd. ,

provides the cost.

22 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

Data Requirements

For this method data which needs to use that below:

i. Sketch Plan or Preliminary Working Drawing

ii. Specification’s Note if not prepared assumptions must be prepared.

iii. Current Price Rate or market Price which normally takes it from already priced

material list or some analyzed reasonable price rate.

Below show the list of methods in define the cost estimate:

i. Approximate Quantities Method

ii. Cubic Method

iii. The Financial Method

iv. Gross Floor Area (GFA) Method

v. Storey Enclosed Method

vi. Unit Method

Type of estimate methods in a project depends to:

i. Information or data that found in progress in prepared for this cost estimate.

ii. Depend on QS experiences in prepared the preliminaries cost estimate.

iii. Cost Data that found.

For this project method which choose is APPROXIMATE ESTIMATE

23 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

5.5 APPROXIMATE ESTIMATE

This method normally used to prepare the preliminary cost estimate. The method

is the easy than others because it based on ordinary procedures in prepared it and price

list took.

The approximate quantities method was chosen because the estimate prepared be

accurate. It is also an alternative or a short-cut in preparing and to price the list of the

quantities. As a credit to those alternatives, this method is using the gross quantity and

need more assumptions to get the quantities. However this method also needs the

gross. So, in order to get gross layout, QS need a drawing and specification made by the

architect and also QS as consultant must know current rate recently.

 The advantages of this method of preparing the preliminaries estimate are as

shown below: -

i) Each change in the design and the specification can be made to

coordinate the estimate.

ii) In preparing the preliminaries estimate, all estimates are dividing into all

elements or items and this can help the architect to design the building.

iii) This is the best method in preparing the preliminaries estimate if all the

important information is obtained especially drawing.

24 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
iv) Knowledge and explored in knowing current rate and all the information

needed.

 The way in preparing this approximate quantity method is as follows: -

i) The bill of quantities is prepared the same way as the usual bill of

quantities was prepared. But in the approximate quantities method, the

brief way is practice.

ii) Usually, this brief way contains all the measurement of the composite item

that is using one dimension set for couple of item. Price for this composite

item is made based on the current price and the allotment has to be made

for all the items that been measured.

iii) The measurement is made by disregard all the small items, laps and

deduction only be made to the big void only.

 Sketch drawing specification and current price for the quantities is

important data to be used in this method.

 This Preliminary Estimated Cost for the proposed project includes for the

following: -

a) Site Preparation & Earthworks

b) Building Works

c) Mechanical & Electrical Services

d) External Works

e) Preliminaries

f) Professional Fees

25 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
 Preliminaries cost estimate for this both project construction equal RM

7,173,953.55 (Qs estimated) including piling works and external works.

26 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

5.6 TABLE OF ESTIMATED CONSTRUCTION COST

ITEM FINAL SUMMARY TOTAL COST (RM)

A PRELIMINARIES 176,600.50

B PILING WORKS

i) 59 Unit Rumah Teres Satu Tingkat 104,646.000

ii) 14 Unit Rumah berkembar 145,770.00

C BUILDING WORKS

i) 59 Unit Rumah Teres Satu Tingkat 3,476,451.25

ii) 14 Unit Rumah berkembar 1,228,907.40

D INFRASTRUCTURE WORKS

i) 59 Unit Rumah Teres Satu Tingkat 1,160,682.90

ii) 14 Unit Rumah berkembar 480,896.00

E MECHANICAL & ELECTRICAL WORKS 200,000.00

F PROVISIONAL SUM 200,000.00

TOTAL DEVELOPMENT COST 7,173,953.55

27 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
From the estimation that been prepared, the total cost does not include for the

following items:

a) Land Cost and Associated Fees

b) Contribution To Authorities

c) Financing Charges

d) Any other items not specially mentioned herewith but deemed necessary for

the completion of the development.

28 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

Cost Plan Analysis (59 single storey)

Gross Floor Area : 92.90 m2


1000 f.s

Item Description Element Cost/f.s % Of


Cost
(RM) (RM) (RM)

1 Work Below Lowest Floor Level 10,863.10 10.86 18.44

2 Frame 6,244.75 6.24 10.60

3 Roof 10,028.39 10.03 17.02

4 Internal & External Wall 4,568.81 4.57 10.22

5 Doors & Windows 4,904.98 4.90 8.32

6 Internal & External Wall Finishes 6,020.75 6.02 7.75

7 Internal & External Floor Finishes 4,776.36 4.78 8.11

8 Internal & External Ceiling Finishes 2,727.20 2.73 4.63

9 Sanitary Fitting 1,415.00 1.41 2.40

10 Plumbing 4,000.00 4.00 6.79

11 External Works 3,373.58 3.37 5.73

TOTAL : RM 58,922.90 58.92 100

29 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
Cost Plan Analysis (14 Units Double Storey)

Gross Floor Area : 116.13 m2


1250 f.s

Item Description Element Cost/f.s % Of


Cost
(RM) (RM) (RM)

1 Work Below Lowest Floor Level 15,137.25 12.11 17.24

2 Frame 5,958.95 4.77 6.79

3 Roof 12,793.00 10.23 14.57

4 Internal & External Wall 7,473.90 5.98 8.51

5 Doors & Windows 11,299.60 9.04 12.87

6 Internal & External Wall Finishes 11,821.50 9.46 13.47

7 Internal & External Floor Finishes 6,828.00 5.46 7.78

8 Internal & External Ceiling Finishes 4,515.00 3.61 5.14

9 Sanitary Fitting 1,995.60 1.60 2.27

10 Plumbing 4,800.00 3.84 5.47

11 Sundries 500.00 0.40 0.57

12 External Works 4,657.50 3.73 5.31

TOTAL : RM 87,779.60 70.22 100

30 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

6.0 PREPARATION OF TENDER DOCUMENT

6.1 INTRODUCTION

Purpose of preparing tender documents is to ensure the tender documents are

prepared in an orderly manner so as to meet the dateline set to call tender and to ensure

accuracy of contents of the tender documents. All the written instruction or printed which

record in the agreement between the two sides will used as a proof if there is a breach in

the agreement which has stated in the document tender. After all the documents have

been complete, it will be compiled to contract document. it will bring the meaning of

document that been used as a references, from the tenderer.

Quantity Surveyor will prepare The Document Tender but final cost estimate must

be completed and agreed by the client. MOKHNAR & ASSOCIATES had prepared in

complete this tender document for this project. The preparation of this tender document

is to make in detail, to estimate all the desire of the client about the building and to be

understand by the contractor. The main point is it is also been a contract of an

agreement between the client and the contractor.

The necessity and the content of the tender document are different based on the

contract types, tender method, necessity of the project and etc. It contains all the detail

description in the project.

31 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

Responsibilities

SQS - Responsible for setting out specific requirements of

each Tender and Final Vetting of tender documents

QS/AQS - Responsible for overall coordination and preparation

of tender document including issuing of Addendum

Typist/AQS - Responsible for typing Tender Document as per the

required format

32 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

6.2 USES OF TENDER DOCUMENT

i) Contract Document will be prepare after process of Tender Document done

so contract between client and the contractor in any construction project

will happen.

ii) The Factors of Tender Document is been prepared are as shown below: -

1. For price by contractor and hence makes their offer.

2. As a reference by the contractor or the client about the issue in the construction

stage or management process so there will be no discrepancy between the

contractor and the client.

3. All client’s desire describe in detail, so that the tenderer or contractor can take an

action to fulfill the client’s requirements, to construct as like as the description of

the tender.

4. As a “First Document” where after it had been signed by the parties involved

(contractor) in this project will be a partly of the Contract Document.

5. It also will be a record for the future (reference).

33 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

6.3 THE CHARACTERISTIC OF TENDER DOCUMENT

To prepare a good tender document A Quantity Surveyor must consider a

few of characteristic. A good tender must be fulfill all condition in prepare it. This

important document must complete all the detail to explain about all aspect about

the project.

A Good tender document must fulfill all characteristics of below: -

a) Must be reasonable, which means that it can be carry out by the

contractor. It was irrational for the contractor to be asked to do something,

which is not possible to be done, either technically or economically.

b) All the work that need to be carried out must be fulfill all t he desire of the

owner in all the matter such as design, construction and also the

specification.

c) Must be fair between for all parties that involved. Which it means all the

risks are not only on the contractor’s side.

d) Well thought-out the entire client’s desire and also the policy of

government, local authority and the project’s owner. It should have an

approval from them before the project start.

e) Explanations about the works must be clear stated.

f) Easy to understand by the parties that been involved

g) No difference between all the sections in the tender document.

34 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

CONTENT OF TENDER DOCUMENT

Tender document of this project consist of the following fractions:

A. Instruction to tenderer

B. Form of tender

C. Articles of Agreement and Conditions of contract

D. Specification

a. Preliminaries & Generally

b. Specification

E. Summary of Tender

F. Bill of Quantities

a. Preliminaries

I. 59 unit rumah teres satu tingkat

II. 14 unit rumah berkembar satu tingkat

b. Infrastructure Works

I. 59 unit rumah teres satu tingkat

II. 14 unit rumah berkembar satu tingkat

G. Appendices

a. List of Drawings

b. Schedule of Daywork Rate

c. Form of Bank Guarantee

35 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

INSTRUCTIONS TO TENDERERS

◊ This section stated at the first part of document because it’s content is

important to explain the instructions which must be follow and carry out by

tenderers when enter it.

◊ All the tenderers must follow the instruction in this part to avoid from

making mistakes which it will affect the submitted tender document from

tenderers will be rejected.

◊ For example the instruction in this part which it the tenderers must follow

are using the black ink during pricing the tender and complete the form,

describe the place, time and table tender document.

CONDITIONS OF TENDERING

◊ This part need tenderers follow the conditions of tender in a project and

tie the tenderer which chosen and if any breach happen this conditions

will be the reference.

◊ Tenderers will signature this part with the witness and confirmatory chop

from their company.

◊ Apart of that the content also tie with the tender validity period..

36 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

FORM OF TENDER

◊ This part must be clearly to be understood and fill by tender.

◊ Tenderer will state the price at this form.

◊ This form must be fill by tenderer if tenderer agree with its content. if this form

not fill by tenderer as a result that tenderer will FAIL.

◊ In this form the contractor have to stated the amount that they been offer for

the project in Ringgit Malaysia and also the construction period that they

need.

◊ The contractor also will fill in their name, their company name and all the

company detail. After all been completed, they will sign the form to show that

all the information that been given was true.

◊ The signature of the contractor will brought them tied to the contract with

entire offer, such as the amount of contract and contract period.

◊ There are two types of contract usually used.

1. PAM 1998

2. PWD 203 A (Rev 10/83)

37 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

PRELIMINARIES

 Stated as Section “A”, Preliminaries act as a part in the tender document

which explain about all subjects that are not to be measure and stated in the

bills of quantity but this subject are very important in the construction to make

sure that the construction will perfectly done.

 All these subjects are incriminating cost to the contractor. Preliminaries

explained all about the temporary works, and also the entire contractor’s

desire and in this part the contractor are given the permission to price all the

subjects that are stated.

 If the contractor chosen not to priced anything in this part, it will be defined

that it was priced in any part in the tender document. As example, there are

shop drawings, overtime payments, site office, clauses, maintenance, water

and lighting, insurance etc are stated in this preliminaries part.

38 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

SPECIFICATION

 This item can be defined as a detail works that agreed and needs to be

carried out by contractor during the construction stage without breach it. It

also contains all the details which were not to be stated in the drawing and

also in the bills of quantity.

 For example the detail of the material especially about the quality, types of

the material, method of work and also the quality of the work that needed in

this project. This like a guideline to explain in more detail to the contractor,

easier to do price their work before tender and their work after tender

BILL OF QUANTITIES

A Bills of Quantities is a comprehensive document which it prepared by

QS. Quantities and material that measured followed the SMM2 which it agreed

from all consultants. Detail about all the matters in the project especially the

materials, works complete with their quantities and compile in the tender

document by its elements. Contractor will be easy during process to pricing all

the elements.

All the materials, specifications and also the works in a few of description

according to the work on how the project to be construct, starting from the works

below lowest floor finish until the top of the building roof. The contractor only has

to fill in their rate in the provided space and grouped it all in summary section and

tender form will be proceeding.

39 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

DRAWING

The most important document in contract is drawing especially for the

contract which it based on the drawing and specification. For this project, to get

more description and project’s requirement, drawing will be referred because

other matters have been included in the bill of quantities. All the different kind of

drawing for the project such as key-plan; floor plan, section and also the

elevation for the building illustrate by an architect and structural drawing from the

engineer are compiled with in the tender document.

OTHERS/APPENDICES

Apart of that other part which compile in Tender Document are Preambles

to all trades in section C, general summary of all sections in external works,

provisional sums, schedule of finishes, schedule of sanitary appliances, schedule

of day work rates, schedule of plant and machinery, employee’s registration form,

bank guarantee form for earnest money and performance bond, schedule of

contractor’s organization and registration and others which it relevant. A good

Tender Document is complete with all section that explained before. If one parts

a missing that Tender Document a not complete and not in good condition for

Tendering Process.

40 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

6.5 TENDER DOCUMENT PREPARATION PROCESS

After the final cost estimate has agreed by client for the project, the

tender document has to prepare. Based on sequence those involve in tender

report’s preparing process: -

Drawing Acceptance

The first drawing that been received from architect and Engineer are

being a tender drawing. The detail about the tender drawing will be stamp and

stated for the record for the future, especially for the taking off work that been

done always be update.

Drawing Checked

All the detail about the drawing that been received from the Architect and

the Engineer will be checked from Quantity Surveyor to make sure that both

types of the drawing are no incongruity. Both types of the drawing must be relate

with the design that been agreed by the client. All the information in the drawing

will checked by QS to make sure no missing and no mistake. QS will inform

about the problem that have been detected the both parties and to confirm all

the information.

41 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

Preparation of Bill of Quantities

The important stage of Tender Document is preparation of Bill of

quantities. The steps of preparation the BQ is prepared as below stages: -

1. Taking-Off Work

Based on the “Standard Method of Measurement 2” (SMM2) taking off

process, must follow the entire requirement in the drawing which it divided into

elements and follow all the specification. The taking-off work is done based on

the method “direct billing” such as “squaring”.

2. Arrangement Process

QS will display back the entire item which it based on the correct

arrangement in the tender document after all the taking-off work being complete.

It is to make sure that the tender document is easy to understand.

42 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

3. Draft Print

The senior QS will be the checker for a draft print and make an analysis to

make sure that there is no mistakes especially analyze on the description, unit

and the quantity, but in our firm the Director will check it. Correction will be made

on the draft paper. The re-measurement must be made by the QS if there are

any elements that are not complete or incorrect so that there will be no mistake.

4. Final Print

Final print will be made after the correction process done. After final print for

the tender document done senior QS/Director will check again to make sure that

there is no mistake on the final print.

43 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

5. Final Works In Tender Document

When all the other part included in the tender document, process to compiling

by the QS will be proceed especially for Form of Tender, Preliminaries and also

the Specification and etc which means the final works in the tender document is

complete.

All parts will be compiled together and it is ready to be print depend on

number that needed by all parties. Lastly, it will be binding and they’re completely

done as a tender document.

44 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

11.4 Process of Preparing Tender Document

Instructions from Client

Drawings/Details/Schedule
s from Design Consultants

Management review

Distribution of
Drawings/Information

No
Check the
Adequacy of the
Drawings
Yes
Taking off measurements

Bulk checking Yes


-Squaring Quantities,
Errors Checking

Compilation of P.C. and


Other Bills Section Editing Provisional Sums

Typing

Yes
Proof Reading for

No

45 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

11.4 Process of Preparing Tender Document (cont’d)

Draft Tender Document

No
Checking of
Errors by S.Q.S

Yes

Tender Documents

46 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

7.0 TENDER REPORT

Tender Report is an analysis report that been prepared by the QS about the

tender which submitted by the tenderers. This report prepared to give suggestion to

the client about the best contractor for the project through by evaluates the submitted

tender document in various aspects especially in perfectly complete by the tenderer.

The tender report been prepared after the date of tender is expired or been

closed. The process to choose the best contractor will more easily for the client.

Contractor that is qualified the best among the qualified can execute the construction

for the project in such perfect way. QS’s opinion or suggestion about the best

contractor is important with choosing the best tenderer to be nominated to the

project. All the suggestion must be based on all requirements of factors that have to

consider such as the tender price, experience of the tenderers, current work

performance and etc.

Preparation of Tender Report only in the validity tender period because all the

tenderers who had submitted their tender still tied with the reward in the tender

document. If among of the contractors take back/given up their tender with such

excuse, before the validity tender period, they will lost automatically their earnest

money that been paid for the tender. Sometimes they will also incurred a discipline

action from the Gopeng Land Sdn.Bhd, as their name will be blacklisted or demolish

from list of the end user if nothing the reasonable excuse.

47 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

7.1 TYPES OF TENDER

There are many types of tender but in this Project Selected Tendering clients

agreed to use Selected Tendering. After use this type of tender entries of tenderers that

have been selected are 5 of all.

SELECTIVE TENDERING

This procedure is to select a limited number of firms and invite them to

tender. The numbers of contractors entering this type of tender are small ranging from 5

to 8 contractors. The offers are made by the firms approached, have their own purposes.

But to arrive at this point there must already have been a decision on the contract

management that will be entered into on acceptance of a tender. This type of tender

usually uses for private project and certain government project.

The criteria to be employed in drawing up a list of tenderers will depend to some

degree on the character of the project, as well on its size; the firm that can undertake a

motorway may not be geared to a patchy alterations job. Usually a deposit is required in

order to discourage frivolous applications, the deposit being returnable on the

submission of a bona fide tender. But in this case that fixed about the deposit that never

be return back. The client Gopeng Land Sdn. Bhd. has chosen the Selective Tender

Basis because already has their own sub-contractor list to construct the main building.

48 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

Advantages

a. It results in less abortive tenders and, hence, a reduction of tendering cost and

waste in the construction industry.

b. More time is allowed for project planning and design and hence the client

receives not only a good build able design but, on completion, a good product.

c. Client can ascertain his or her total financial commitment before contract and is

therefore able to plan and arrange for it.

d. Tight cost control technique can be applied (during both design and production

phases) to ensure that a client’s development budget is not exceeded.

e. Client is not responsible for contractor’s programmed of work and site operations

and therefore assumes less financial risks.

f. Contractor submits a bid with clear awareness that when successful there is

spare capacity in their establishments to accommodate the project.

Disadvantages

a) The short-list principle may exclude suitable building contractors who are capable

of providing clients with a good service

b) Contractors are excluded from design decisions, and their expertise on build able

designs, selection of suitable materials and production method is not fully

utilized.

c) Useful project time is lost in detailed planning and preparation of scheme before

invitation of tenders.

d) Contractors capitalize on variations issued by the client during production and

this leads to increased cost of production and construction disputes.

49 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

7.2 NUMBER OF TENDERS

For this project, type of tender that agreed by all parties is Selective tendering, so

the contractor or tenderer that enter the tender have been short listed to 5 numbers. The

entire selected tenders below follow the sequence of registration number that given by

Gopeng Land Sdn. Bhd. as a Client of this project. All contractors that have been selected

are “Bumiputera” status. Based on investigation on all four (4) tender sums submitted by

the various tenderer, it is observed that:-

1) Only four (4) out of five (5) invited submitted their tender sum.

2) Of the four (4) submitted, one (1) did not comply fully to the requirements

of tender exercise.

3) From the four (4) submissions, three (3) of which show arithmetical errors

but do not change the position from lowest to highest.

4) Having considered all factors, it is found that tenderer Victroplus Sdn.

Bhd. is disqualified due to non compliance of Tender requirement (NOT

Filling the Form of Tender)

5) The other three (3) tenderers complied fully to tender requirements,

namely:-

a) Creatchain (M) Sdn. Bhd. RM 5,801,554.10 72 Weeks

b) Changkat Makmur Sdn. Bhd ` RM 6,676,519.67 80 Weeks

c) Salam Fajar Sdn. Bhd. RM 6,698,292.82 72

Weeks

50 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

6) Considering the arithmetical errors in all the above three (3) their found to

be minimal, position is not affected.

7) All three (3) have the experience to construct and to complete the project

as tendered

8) However, on checking further:-

Creatchain (M) Sdn. Bhd.

a) Did not submit status of the company

b) Did not submit PKK registration

c) Currently having one (1) contract with 80% completion at Bandar

Sunway City Ipoh.

d) Based in Ipoh.

Cangkat Makmur Sdn. Bhd.

a) Based in Ipoh.

b) A Bumiputra Company

c) Authorized Capital: RM 500,000.00

d) Paid-Up Capital: RM 300,000.00

e) No PKK registration but has CIDB registration under Class G5 (Not

exceeding RM 10,000,000.00)

51 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
f) With one contract on going with 95% complete (30 units 2 storey

shops)

Salam Fajar Sdn. Bhd.

a) Based in Ipoh.

b) A Bumiputra Company

c) Authorized Capital: RM 500,000.00 and fully paid

d) PKK registration Kelas B

e) Financial statement not submitted

f) Past experience on similar works not submitted.

Based on facts presented and with the knowledge that Creatchain (M) Sdn. Bhd.

had executed to satisfactory completion on GLP contracts, complied with their Tender Sum

of RM 5,801,554.10 and with seventy two (72) weeks completion period, we are in the

opinion that this company should be considered for the works as tendered.

Should they be appointed and is unable to accept, than the second lowest (Cangkat

Makmur Sdn. Bhd.) be considered for the project.

It is to be noted that the Rate for import earth fill given by the Tenderers are for

Meter Square of earth fill. The unit should be in Meter Cube. The volume remains at

23,000.

52 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

With the change we have computed the total Tender Sum for all three (3) and as

follows:-

a. Creatchain (M) Sdn. Bhd. RM 5,990,154.10

b. Cangkat Makmur Sdn. Bhd RM 6,814,519.67

c. Salam Fajar Sdn. Bhd. RM 6,917,392.02

The above corrected Tender Sum is computed based on Rates for Meter Cube of

imported earth fill provided by the Tenderer concerned, namely :-

a. Creatchain (M) Sdn. Bhd. RM 9.00 per M.C

b. Cangkat Makmur Sdn. Bhd RM 12.00 per M.C

c. Salam Fajar Sdn. Bhd. RM 12.00 per M.C

Nothing else changed and our opinion to award the Contract to Greatchain (M) Sdn.

Bhd. Stands.

However, Gopeng Land & Properties Sdn. Bhd. as Owner of the tendered project,

has the right to accept, or choose to appoint another or even to reject all submissions

without giving any reason, is their prerogative.

53 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

7.3 TENDER ANALYSIS

In the process of suggestion the best contractor among all of tenderers,

tender analysis had been prepared by the QS. It is prepared by the QS to make a

suggestion to choose a tender that the best among all the tenderers that can

make a profit to the client with a reasonable price and the contractor that can

effort to build the project that are tender.

All analysis done based on new rules of analyzed that issued by JKR for

the medium price of tenders ( from RM 1 million to RM 5 million) which it

involved stages that below: -

a) Stage i – Preliminary Analysis

i) Perfectly of Tender

ii) Completely of main document

iii) Minimum of Financial Source

iv) Good Performances in Current Works

b) Stage ii – Capability of Tenderer

i) Tender’s Price

ii) Experiences

iii) Performances in Current Works

iv) Technical Workers

c) Deliberation of Tender Approval

54 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________
Tender that agreed to be award must be the lowest price of tender

after pass in stage ii and fulfill the criteria of analysis.

55 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

7.3 TENDER ANALYSIS (CONT’D)

At the stage 1, all the tenderer are been checked on the whether they offer the

reasonable price. It also checked based on Perfectly of Tender, Completely of main

Document, completely of Minimum Financial Sources and Performances in current

works.

Then, all selected tenderer must then be analyzed in stage II- Capability of

Tenderer. This stage based on below items before make a decision in choosing a

contractor.

I. Experiences of Work

II. Technical Workers

56 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

Summary of Tender Analysis and Consultant Approval are in the table below:-

Amount Completion

Ref Contractor (RM) Period Position

(Weeks)

2/4 Greatchain (M) Sdn. Bhd. 5,801,554.10 72 1

4/4 Cangkat Makmur Sdn. Bhd. 6,676,519.67 80 2

1/4 Salam Fajar Sdn. Bhd. 6,698,292.82 72 3

3/4 Vitroplus Sdn. Bhd. 6,713,969.90 72 4

- Consultant Quantity Surveyor 7,173,953.55 52

57
PRACTICAL TRAINING (QSD 311)
MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

The Tenderer is required to submit his tender in compliance to tender requirements and the result as follows :-

Ref Position Name Of Contractor Tender Contract Tender Tender


Form Period Summary Deposit

2/4 1 Greatchain (M) Sdn. Bhd. YES YES YES YES

4/4 2 Cangkat Makmur Sdn. Bhd. YES YES YES YES

1/4 3 Salam Fajar Sdn. Bhd. YES YES YES YES


NO
3/4 4 Vitroplus Sdn. Bhd. YES YES YES

Comparison the percentage in error:

Difference of Tender Sum from Consultant Q.S Pre-tender Estimate as followings:-


58
PRACTICAL TRAINING (QSD 311)
MOHAMAD SYAZWAN BIN OSMAN
2005184283
MARA UNIVERSITY OF TECHNOLOGY
DEPARTMENT OF QUANTITY SURVEYING,
FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING. PRE CONTRACT STAGE – REPORT A
________________________________________________________________________________

Ref Position Contractor Tender Sum Difference %

(RM) (RM)

- - Consultant Quantity Surveyor 7,173,953.55 - -

3/4 4 Vitroplus Sdn. Bhd. 6,713,969.90 (459,983.65) -6.41%

(475,660.73) -6.63%
1/4 3 Salam Fajar Sdn. Bhd. 6,698,292.82

(497,433.88) -6.93%
4/4 2 Cangkat Makmur Sdn. Bhd. 6,676,519.67

- - MEAN AVERAGE 6,472,584.12 (701,369.43) -9.78%


-
2/4 1 Greatchain (M) Sdn. Bhd. 5,801,554.10 (1,372,399.45) 19.13%

59
PRACTICAL TRAINING (QSD 311)
MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

7.5 Consultant’s Estimate

The Breakdown of Consultant’s Estimate is as follows:

BILL ELEMENT AMOUNT (RM)

1 GENERAL CONDITION AND PRELIMINARIES 176,600.00

2. PILING WORKS 250,416.00

3 BUILDING WORKS 4,705,359.65

4 INFRASTRUCTURE WORKS 1,641,578.90

5 MECHANICAL & ELECTRICAL WORKS 200,000.00

6 PROVISIONAL SUM 200,000.00

PRE TENDER ESTIMATE 7,173,953.55

60 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

7.6 General Examination

The Quantity Surveyor has conducted an examination of the Tender Document

on all Tenderers. The examination comprises of correcting arithmetical errors in

extensions, casting, etc and isolating palpable errors on pricing but the tender amount

remains unaltered. This measure is to correct mistakes for the purpose of future

variation.

From the analysis, all the five (4) Tenderers have made arithmetical errors and

one (1) tenderers very accurately. The Tender Sum from each tenderer was examined

for arithmetical error and the result as follows:-

Corrected
Ref Name of Contractor Tender Sum Error Tender Sum
(RM) (RM) (RM)
5,801,554.
2/4 Greatchain (M) Sdn. Bhd. 10 (8.00) 5,801,546.10
6,676,519.
4/4 Cangkat Makmur Sdn. Bhd. 67 (104,622.24) 6,571,897.43
6,698,292.
1/4 Salam Fajar Sdn. Bhd. 82 (55,762.61) 6,642,530.21
6,713,969.
3/4 Vitroplus Sdn. Bhd. 90 - -

*Based on investigation several arithmatical error shown by Three (3) of the Four (4)

submissions but there is no change in order of position as indicated earlier.

61 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________
The Tender Sum from each tenderer was examined for arithmetical error and the result
as follows:-

 The above check reveals that the errors found did not effect the placing of

the tenders.

 When the tender as submitted is accepted, the arithmetical errors would be

corrected as a percentage adjustment while the tender sum remains the

same.

 A detailed examination of Bills of Quantities including comparison of prices

was carried out on all the Tenders submitted.

62 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

7.7 Detail Examination of Tenders

Tenders received were checked for the following:-

1 Tender Submission

2 Arithmetical Error

3 Rates

4 Compliance to tender requirements

For the purpose of tender evaluation, all four (4) tender sums were scrutinized as

follows:-

GREATCHAIN (M) SDN.BHD.

This tenderer submitted the lowest Tender Sum amounting to RM 5,801,554.10

which is RM 1,372,399.45 (-19.13%) lower than the Consultant Quantity Surveyor's pre-

tender estimate.

However, on checking, it is found that the corrected amount is RM 5,801,546.10

indicating an arithmetical error totaling RM 8.00 only. Generally the Rates shown are

considered low with minimal profit margin as compared to current market prices.

The company has shown a past experience for construction and completion of housing

in area Ipoh.

The tenderer gives eighteen (18) months or seventy two (72) Weeks as the

construction period for this project. The tenderer complied with all the requirements of

the Tender. This contractor submitted a COMPLETE submission.

63 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

CANGKAT MAKMUR SDN. BHD.

The second lowest Tender Sum is RM 6,676,519.67 submitted by the said

tenderer which is RM 497,433.88 (-6.93%) lower than the consultant's pre-tender

estimate. However, on checking, it is found that the corrected amount is RM

6,571,897.43 indicating an arithmetical error totaling RM 104,622.24.

Generally the Rates shown are fair and reasonable indicating minimal profit

margin. The tenderer has past experience for construction and completion of housing

scheme (refer to Appendix 1) Contract period is eighty (80) weeks for the project. The

said tenderer complied to the requirements of the Tender. This contractor submitted a

COMPLETE submission.

SALAM FAJAR SDN. BHD.

The third lowest Tender Sum is RM 6,698,292.82 submitted by the said tenderer

which is RM 475,660.73 (-6.63%) lower than the consultant's pre-tender estimate.

Generally the Rates shown are also fair and reasonable indicating a minimal profit

margin. Contract period is seventy two (72) weeks for this project .The tenderer

complied with all the requirements of Tender. This contractor submitted a COMPLETE

submission.

64 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

VICTROPLUS SDN. BHD.

The highest Tender Sum of RM 6,713,969.90 which is RM 459,983.65 (-6.41%)

lower than the consultant's pre-tender estimate is submitted by the said tenderer. On

checking, no arithmetical error is found in their computations. Generally the Rates

indicated are also fair and with minimal margin of profit. They have the experience in

construction and completion of housing.

Contract period is seventy two (72) weeks for this project. However, the tenderer

did not comply with the requirements of Tender thus this contractor submitted an

INCOMPLETE submission.

All the four (4) Tenderer Sums submitted ranging from RM 5,801,554.10 to

RM 6,713,969.90 is all below the consultant's pre-tender estimate.

65 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

Summary tender analysis

Based on overall analysis of tender (stage I and II ), Tenderer with the number of

registration 5/5 Greatchain Sdn.Bhd. was selected to be a Contractor in this project and

also fulfills from below items:

a) The lowest price of Tender, reasonable and competitive with the total RM

5,801,546.10 and (-19.13%) lower than Consultant Estimate.

b) Fulfills conditions in stage I and II.

c) Financial sources for back up this project.

d) None current works problems.

From the tender report that submitted by Quantity Surveyor (MOKHNAR &

ASSOCIATES) to the client, all parties agreed to chose CreatChain (M) Sdn Bhd to be

the contractor for this government project with agreed price and others criteria that

analyzed. Chose GreatChain (M) Sdn Bhd pass in both of Analysis Stages that

evaluated by QS.

66 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

8.0 TYPE OF CONTRACT

For this project the type of contract used is Fixed Cost where it is paid as lump sum to

the contractor.

Fixed Cost

In this type of contract the contractor must state the price for whole work and the price.

This type of contract can be divided into two categories that are: -

i) Lump Sum

By using this method the contract price is paid to the contractor as lump sum. For

this type of method the Client can choose whether to use the contract for with

quantity or without quantity.

ii) Measure and value

This method uses the Schedule of Rates. Prices that submitted are as reference

and it is done by referring it to the past project. The real quantity only can be

obtained during remeasurement works.

Type of form contract that has been used in this project is PAM FORM 1998

With quantities on a fixed firm price basis. According to this contract all the saving will

be a profit for the contractor. Any addition cost of the construction can be claim as a

67 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________
Variation Order if there are any different quantities between the site and Bill of Quantities

based on tender drawings.

Form of contract will allow any mistakes in measurement quantities at the

construction stage. Advantages by using Bill of Quantities are the tenderer’s risk in

quantifying the amount of work is largely eliminated. The isolated nature of the process

results in greater accuracy.

1. All the quantities based on tender drawing that been used for the construction

2. Any variation of quantities can be identifying easily.

3. The most accurate data sources for tendering purposes, variation of order, and

preparing ATDA for the construction purposes.

4. Saves time and cost for the tenderers.

5. Promotes equitable consideration of Tenders

6. Used for contract cost management document to assist in progress payment and

contractual claims later on.

7. An essential data source for calculating cost analysis, for reconciliation with final cost

plan and for future cost planning.

68 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

9.0 MAIN PROBLEMS IN PRE CONTRACT STAGES

There are so many problems in the constructions project in Malaysia.

Most of the problem happened at the Pre Contract stages. These problems are

also different depend on the project and the types of contract that been used.

Although these problems can give impacts to the project especially in the Pre

Contract stages but its can be settle if the best solution that use to solve it.

The Problems in Pre Contract Stages

All the problems that will face especially for Quantity Surveyors in the Pre

Contract stage explained below:-

a) Incomplete Drawing

MOKHNAR & ASSOCIATES has been facing with the problem that the

drawing that been given by two parties Architect and Engineer is in-completed for

this project. So that QS must send a letter to both parties to complete the

drawing before move to the next level. After both parties submit the required

drawing the next step will be proceed by QS. This problem occur when the

sketch of drawing that did no agreed by client and need to change the design so
69 PRACTICAL TRAINING (QSD 311)
MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________
to submitted the required design Engineer and Architect need each other to get

matching design in both perspective.

So, QS will make Preliminaries estimate after the latest design submitted by

both parties. The right drawing is important especially when Bill of Quantity will

prepared by QS, to get exact quantities.

b) Changes in client’s need

Because of client need always change from time to time, not only QS face

the problems but to all the design teem. Architects have to make alteration on his

design. If the design not suit to the building requirements, engineer have to

recalculate the figures. As for QS, he has to recalculate the figures in his

estimates.

c) Changes in design

Sometimes what you see in tender drawings is not same as contract

drawings. This is because sometimes Architect or Engineer changes the design

without informing QS. In the end, they are blaming QS because he does not take

measure on it. For quantity surveyor, he has to recalculate the whole figures

70 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________
because if the drawings change at the end of tender document it will affects the

whole elements in the building.

d) Tender Report Process

To choose the best Contractor for this project is quiet difficult because QS

must analysis each documents that submitted tenderers. The short-list principle

in selective tendering may exclude suitable building contractors who are

capable of providing clients with a good service. QS must carefully choose the

best tenderer that not only offer good services but also with a reasonable

prices. If something missing in this reports such as incomplete information or

missing one part or more of tender report QS need to submitted the new tender

report before attend the meeting. Sometimes Tender Document that submitted

from tenderers incorrect details that important to QS to make analysis in Tender

Evaluation. These problems sometimes need QS to apply another date to

submit the Tender Report.

e) Incomplete specification

71 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________
The Consultants such as the Architect or the engineer did not give complete

specification for the project. For example the Architect did not give the material

and types of roof covering that the client wants.

f) Error in inserting data

It’s hard to find a tender document that is in perfect condition. Some of the

tender may have an error due to the calculations or writing while filling in during

tendering. It is a nature of human mistakes. So the way to repel it is always

make a double-check on each tender documents prepared. This is to make

sure that there is no error on the data in the documents.

g) Approval Problems

Sometimes, although the project have been completed but approval from

the other parties that include in this project such as Tenaga Nasional Berhad

(TNB) and Jabatan Bekalan Air (JBA) take long time to decide. Sometimes it

takes a year to get approval about the CF.

72 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________
All problems that happened need to give solution faster as can because

the project give no meaning after delay waiting to solve the problem. This will

effect the profit for the project especially for the contractor which it always

blamed when the problem occur. All parties need to take seriously to avoid all

mistakes.

73 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

10.0 STUDENT’S ANALYSIS

The analysis that I would like to summarize for this construction stage (pre

contract stages) is a quiet difficult stages but very important in the construction project

where all parties like consultants, client and also the contractor are contribute in this

stages and always give their own tasks. Interaction among the parties in this stage is the

answer to this project either it will success or not.

Client also has to appoint the trusted consultants together to help them in fulfill

their desire to construct required design. Each consultant must be able to do their

responsibility to fulfill client’s satisfaction with the entire job that they had done.

Consultants that been appointed must work together and done their responsibility

with commitment to fulfill client’s requirement. Consultants must use their experience to

done all the work. But the most important word that can describe as key of success in a

construction project is commitment.

A Tender document is the most important document in a construction contract

administration. Types of tender document, method of preliminaries estimate, and type of

contract which it the right choosing will give the best quality of works. Some problems in

this stages are still cannot be avoid but still can

Solve with the best reaction with the experiences from last or current project.

74 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

10.0 STUDENT’S ANALYSIS (CONT’D)

A contract document is made entirely on the tender document and the contract

administration is based on principles laid out in the contract document.

That a good tender document will ensure a smooth and uninterrupted running out of

the contract administration. On the other hand, a badly administrative and contractual

but also construction claims and even ill feeling to develop all of which contribute to an

unhealthy working atmosphere in the project

Finally, the most important thing after done this report is to know the implementation

about the pre contract stages where all the consultants need to show their commitment

to each other with cooperation to make sure all the work can be carried out perfectly and

more easily. The consultant should always bear in mind that it is the client’s prerogative

and liberty whether or not to accept the lowest or for that matter any tender that they

want to.

75 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

CONCLUSION

On preparation of this pre-contract report, there are many new things and

methods that I learned besides what I have been told in class. It is an opportunity in

process of learning and understanding about the scope and the roles of Quantity

Surveying and also avails and increases the knowledge over the pre-contract stage.

Besides, the responsibilities of Quantity surveyor are so important in preparation the

tender document and also contract document.

76 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283
PRE-CONTRACT PROJECT - REPORT (A)
PART 05
______________________________________________________________________________________

REFERENCE

Below are the references used to gather information and prepare this report: -

1) Contract document and tender document for the project entitled

2) Tender Report On The Project Entitled Cadangan Membina Dan

Menyiapkan 14 Unit Rumah Berkembar Satu Tingkat Di Atas Lot 3517

Hingga Lot 3530 Dan 59 Unit Rumah Teres Satu Tingkat Di Atas Lot 1

Hingga 59 Untuk Fasa 1c-2 Di Taman Seri Raia, Kampung Kepayang Mukim

Sungai Raia, Daerah Kinta Perak Darul Ridzuan.

3) Lecturers notes and guidance.

77 PRACTICAL TRAINING (QSD 311)


MOHAMAD SYAZWAN BIN OSMAN
2005184283