Professional Documents
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Chapter 1 Introduction PDF
Chapter 1 Introduction PDF
Construction
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The end products are site-specific and for each product the
processes involve elaborate commissioning, design,
management and assembly of resources – human, finance
and materials – over a period of time.
Construction
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Construction
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Category of
Construction
CIVIL
BUILDING
ENGINEERING
CONSTRUCTION
CONSTRUCTION
Industrial Dam
Agricultural Port
Community Airport
Residential Highway
Educational Sub-marine pipeline
Recreational
& medical social.
Introduction to Construction Industry
The Environment
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A manufacturing process?
Introduction to Construction Industry
The Characteristics
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The Characteristics
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The Characteristics
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The Characteristics
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The Characteristics
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The Characteristics
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The Characteristics
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The Characteristics
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Risks
Construction work involves risks, the level of risk is considered much
higher than in other types of economic activities.
A construction entrepreneur moves from one location to another, organise
the logistics required to complete each project, and follows a bespoke
design for each project.
Most contracts are awarded through some forms of competitive tenders
– contractors have to estimate the cost based on assumptions about
many factors including weather, site conditions, availability and
productivity of labours, availability and timely supplies of materials and
plant, time constraint, interest rates, political and social scenarios, etc.
Introduction to Construction Industry
The Characteristics
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UNIQUE
TIME CONSUMING
FRAGMENTED INDUSTRY
RELYING TO OTHER
INDUSTRIES CHARACTERISTCS JOB OPPORTUNITIES
OF
CONSTRUCTION
LACK OF INDUSTRY
COORPERATION RISKY INVESTMENT
SEPARATED PROCESSES
VAST WORK LOAD
COMPLEX
ORGANISATIONS
Project Mgmt, Construction Mgmt & Contract Mgmt
Project Management
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Construction Management
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Contract Management
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Construction Stakeholders
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Public Private
Sector Sector
Architect
OWNER /
DEVELOPER
Planner
APPROVING Quantity
State CONSULTANTS
AUTHORITIES Surveyor
FINANCIER
Landscape Interior
Local
Architect Designer
Finance
Bank Land
Company
Surveyor
Other
Credit Leasing
Nominated MATERIAL & BUILDERS / Specialist
Corporation Company
Supplier EQUIPMENT SUPPLIER CONTRACTOR
Importer
MANPOWER
Distributer
Employer
Also called the client/ purchaser/ authority
Normally the person or party who wishes to have
development project constructed on a piece of land
The employer is the most important party to a contract as
he is in reality the paymaster who initiates and ultimately
uses the tangible fruits of the contract.
The employer may be a public entity (government bodies)
or private entity (developers/ owners/ investors).
He will appoints consultants, employs contractors and supply
the necessary fund to implement the project
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Parties involved in construction project & contract mgmt
Contractor
The contractor is the person or legal entity (partnership or
company) who under the contract is actually entrusted to
carry out construction works.
He is variously labeled as the contractor, the builder, the
installer, the erector, etc. depending on the nature of the
contract involved.
Construction development can only remain at blue-print and
drawing board stage without contractor and builders to
actually translate the project into reality.
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Parties involved in construction project & contract mgmt
Contractor
Owing to the complexities of the nature of the contracts
entered into between the employer and the contractor, the
contractor may be further described as a:
main or general contractor; or
turnkey contractor; or
design and build/design and construct contractor; or
management contractor; or
construction management contractor
Sub-Contractor
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Parties involved in construction project & contract mgmt
Sub-Contractor
nominated sub-contractors; or
selected sub-contractors; or
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Parties involved in construction project & contract mgmt
Sub-Contractor
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Parties involved in construction project & contract mgmt
Supplier
A person or firm undertaking the supply of goods or
materials to a contract. The supplier‟s contract is with the
main contractor
In essence, a supplier is a sub-contractor concerned solely
with supplying goods or materials as compared to
undertaking services or labour.
As for sub-contractors, a supplier may be a domestic/
nominated/ designated/ selected/ specified supplier.
In practice, the common types of suppliers encountered are
of the domestic, nominated or designated types.
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Parties involved in construction project & contract mgmt
Professionals
The professionals are not parties to the various contracts
employed between employer and main contractor, main
contractor and subcontractor, and sub-contractor and his
sub-contractors/suppliers.
The professionals may have his own services agreement
whereby he may contract to undertake either all or some of
the following work depending on his term of employment:
design work; supervision work; contract administration;
auditing or independent checking of turnkey/design &
build contractor‟s work; project management; facilities
management.
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Parties involved in construction project & contract mgmt
Professionals
Owing to the peculiarities of Malaysian law, in most
instances only the qualified person is entrusted with the
design and supervision of the works undertaken.
The definition of the qualified person encompasses mainly
architects and engineers.
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Parties involved in construction project & contract mgmt
Architect
In most building projects, i.e. of the traditional general
contracting type, the professional team during the design and
construction stage is normally led by the architect.
Person who practises the profession of architecture and usually
submits the application on behalf of the owner to obtained
development order and designs and submit building plans for
approval.
Building By-Laws defines architect as “any person who is
registered as an architect under any law relating to the
registration of architects and who under that law is allowed to
practice or carry on business as an architect”.
The Architects Act 1967 restricts the usage of the word to a
person registered as such by the Board of Architects, Malaysia
for the practice of architecture. 31
Parties involved in construction project & contract mgmt
Engineers
Person who practises the profession of either civil, structural,
mechanical or electrical engineering and usually designs
and submits plans for approval by the approving
authorities.
In projects, i.e. of essentially engineering or infrastructure
origin, the engineers are expressly stipulated in the contract
as the principal designers and contract administrators.
In this country, the law restricts the label engineer to “any
person who is registered as a Professional Engineer under
any law relating to the registration of engineers and who
under the law is allowed to practice or carry on the business
of a Professional Engineer.
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Parties involved in construction project & contract mgmt
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Parties involved in construction project & contract mgmt
Other professionals
Land Surveyor – person who carries out boundary and
contour surveys and other surveys on land, submits survey
plans for amalgamation and sub-division of land, applies on
behalf of owner for qualified titles and final titles from the
land office.
Town Planner - person who practises the profession of town
and country planning covering land use, zoning, density, the
type, mode and form of development, traffic pattern, infra-
structural requirements, impact of development with other
developments in the vicinity etc.
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Parties involved in construction project & contract mgmt
Other professionals
Interior Designer - person who practises the profession of
interior designing involving furnishing and finishing work
usually for prestigious buildings
Landscape Architect - person who practises the profession
of landscaping architecture involving beautification of the
project internally and or externally by using plants of all
kinds, rocks etc.
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Parties involved in construction project & contract mgmt
Other specialists
Project Management Consultant
Person/group of persons practising the profession of
project management function.
The works involved ranges from feasibility report,
financial projection, design of management system,
evaluation designs prepared by consultants, co-
ordinating work of consultants etc.
These include traffic consultants, acoustical engineers,
information technology (IT) consultants and interior
decoration (ID) consultants.
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Parties involved in construction project & contract mgmt
Authorities/Regulators
Federal and State Authorities
Usually interested in matters regarding land, town and
country planning, drainage and irrigation, supply of
public utilities, fire requirements etc.
Local Authorities
Normally the building authorities and is therefore
entrusted with the power to approve layout plans,
building plans and services plans etc.
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Parties involved in construction project & contract mgmt
Other stakeholders
Finance
Invariably the owner requires to borrow funds from
banks and other financial institutions to finance or
provide adequate funding to their project
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Parties involved in construction project & contract mgmt
Manpower
Craftsmen
Represent the skilled workers of the industry especially in new
construction method it is necessary for them to appreciate not
only the how but also the why the work they do.
Semi-Skilled Worker
Those who possess skill of one or more construction trades but
have not attained the requisite level of skilfulness to be paid
as skilled workers.
Unskilled Worker
Those who do not possess skill in any building trades but are
working on construction sites performing such basic functions as
carrying materials etc.
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Parties involved in construction project & contract mgmt
Manpower
Technicians
Persons who qualified by specialised technical education and
training to work under the general directions of technologists.
Technologists
Person who have a qualification and experience required for
corporate membership of professional institutions.
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Parties involved in construction project & contract mgmt
Different Perspectives
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Parties involved in construction project & contract mgmt
Different Perspectives
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Parties involved in construction project & contract mgmt
Different Perspectives
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Parties involved in construction project & contract mgmt
Different Perspectives
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Stages and processes of construction project
Stages of a project
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Stages and processes of
construction project
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Stages and processes of construction project
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Stages and processes of construction project
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Stages and processes of construction project
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Stages and processes of construction project
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Stages and processes of
construction project
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Stages and processes of
construction project
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Stages and processes of construction project