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Professional Practice I (GROUP 7)

QSB60604

Tan Vin Nie Tham Kai Loon


Tang Zhi Qian Tio Chong Zhi
Teo Chun Chen Vivian Chin Kha Yee
Teoh Zi Wei Vivian Tay Huey Shuen
Tey Cheng Fern Yeoh Sin Yuen
Management Contracting

Introduction
Procurement Procurement Process
method Reason of choosing
Developer Consultant

Management Contractor

Work Package Contractor


Managing Contracting
Split of Works

Project Definition To subcontractor


(Packaging Contractor) Construction
Supervise and coordinate

Budget
Contractor selected
Design
(With employees Advise on buildability ,cost
agreement) and packaging
1. Full control of design -
MC allows client to have
full control of design.

Requirements 2. Imposed Liquidated


Damages of RM
by client 250,000.00 a day. -Time
saving - as construction
can begin before design
has been finalized.
1. Client only has to deal

Requirements with key members of


project as MC handles
by client the work packages.
2 Stage Selective Tendering Method
Tendering Why Selective Tendering Method?

Method Tendering Procedure


1. Reasonably transparent

To avoid dispute and favouritism


Reasons to Choose
2 Stage Selective 2. Huge and complicated project.
Tendering Method
Assign an experienced team to
handle the project
Faster compared to other
3.
tendering method

Reasons to Choose Only pre-qualified contractors


are invited.
2 Stage Selective
Tendering Method 4. Guarantee performance of
contractor
Good criteria can give clients
the confidence in you
Tender Procedure of
2 Stage Selective Tendering Method

Collection of
Preparation of Tender
Tender Document
Tender Document Evaluation
and Submission

Invitation to Tender Closing and Tender Award


Tenderers Tender Opening
Type of
Contract
Able to make
changes at
any phase

Project Minimum
completed variation to
on time Contract
Price

Clients Requirements
Cost-Plus Contract
No profit and overhead for contractor during construction period
Reimbursed by an agreed fee from client ( % on total construction cost or
monthly fee)
Owner pay without markups and plus a set fee for contractors profit
Compensation also included for late completion
E.g. Liquidated Damages
Cost-Plus Contract
Advantages of this contract:
Maximum flexibility provided
Financial control on client
GMP (Guarantee Maximum Price) Add-On
A total fixed price provided
Sharing of cost saving
Changes can be accommodated easily
Why not using other contractual alternatives?
Lump Sum Contract
Difficult to changes the quantity
Takes longest period to complete overall construction
Cover unforeseen circumstances by raising the price

Unit Price Contract / Re-measurement Contract


Not oftenly used for whole Mega Project
Not known at outset since bills of quantities at tender time are only estimates
Big variation when underestimate or overestimate quantities in tender time
Form of contract
A contract that stated all the
agreements and rules that are
What is form of non-negotiable and standardized

contract? To safeguard an effective,


efficient and non-debatable
contract authority
FIDIC, PWD203A, PAM...
Requirement by Good quality of work

Clause 6.0 Material Goods and


Clients Workmanship to Conform to
Description, Testing & Inspection

Clauses 6.1
Health & Safety requirements are

Requirement by captured in contract

Clause 18.0 Injury To Person Or Loss


Clients ANd/Or Damage Of Property And
Indemnity To Employer

Clause 18.1-18.4
Project complete on time and
Requirement by imposed Liquidated Damages of RM
250,000.00 a day.
Clients Clause 22.0 Damages For
Non-Completion

Clause 22.1-22.2
Q&A
Thank you!