Professional Documents
Culture Documents
Sr Nur Aziz Abu Bakar, CQS Datuk Sr Charlie Chia Lui Meng, CQS
Disruptive Technologies – A Threat or The Legacy - Construction
Opportunity for Quantity Surveying Commercial Management
Practices and QS
P. 17 P. 20
EMBRACE CHANGE
FOR SURVIVAL
PLAIN AND CONTRACTOR’S INNOVATION
SMART CONTRACTS REPORT CARD (CRC) IN QS
P.22 P.24 P.27
QSLINK
EDITORIAL COMMITTEE
19TH SESSION (2019-2021)
PATRON
EMERITUS ASSOCIATE
PROFESSOR PROFESSOR Sr
Sr NORIDAH Sr OMAR Dr. SARAJUL
QSLINK
SHAFFII, CQS MUNIR, FIKRI
CQS MOHAMED,
CQS
SECTION EDITOR
SECTION EDITOR DATUK SECTION
SR CHARLIE
EDITOR
CHIA LUI MENG, CQS
Sr NAZIR Sr Dr. KHAIRIL Sr MASNIZAN
MUHAMAD HIZAR MD CHE MAT,
NOR, PQS KHUZAIMAH, PQS
CQS
SECTION EDITOR
SECTION EDITOR
Sr SITI Sr Dr.
MAZZUANA NORAZIAN
SHAMSUDDIN, MOHAMAD
PQS YUSUWAN,
PQS
BQSM BQSM
SECRETARIAT SECRETARIAT
BQSM
SECRETARIAT BQSM
SECRETARIAT
NUR
MAWARDDAH AZIDEE AZMAN
YAHYA
ARTICLES AND OPINION CAN BE FORWARDED TO:
Content
Editor’s Note 2
Message From President 3
Congratulatory Notes And Acknowledgement 5
Announcement & Recognition 8
BQSM Activities 14
(January - October 2019)
Featured Interview 1 17
Sr Nur Aziz Abu Bakar, CQS
Disruptive Technologies – A Threat or
Opportunity For
Quantity Surveying Practices
Featured Interview 2 20
Datuk Sr Charlie Chia Lui Meng, CQS
The Legacy – Construction Commercial
Management And QS
Featured Article 1 22
Plain And Smart Contracts
Featured Article 2 24
Contractor’s Report Card (CRC)
Featured Article 3 27
Innovation In QS
Lessons Learnt 29
Adapted from CIDB Construction Law Report
Claim For Payment For Work Done
PAQS 2019 Kuching 32
Book Review 34
BQSM invites all readers to contribute articles or express their opinion for publication in future issues.
However, BQSM reserves the right to edit materials for clarification purposes and has absolute
discretion not to publish any deemed unfit.
MESSAGE QSLINK ISSUE 2019
EDITOR’S
NOTE
Emeritus Professor
Sr Omar
Munir, CQS
Assalamualaikum wrm wbth and Salam in a globalised construction industry, PAQS held in Kuching Sarawak which
Sejahtera Sr Nur Aziz Abu Bakar examined the managed to gather more than 550
disruptive technologies and its relation delegates from 14 countries across
Our theme for this issue is Embrace to QS practices. the globe.
Change for Survival. Change is
inevitable, but quantity surveyors It is also high time for quantity We would like to extend our sincere
must try to embrace these persistent surveyors to explore into different gratitude and appreciation for all of the
ups and downs and learn to thrive on parts of the cost management hard work and dedication provided by
this era of disruption in which powerful processes especially in venturing into BQSM Board members (2017/2019).
global forces are changing how we property and oil and gas industries as We are very pleased to welcome newly
live and work. With the advent of the highlighted by Datuk Sr Charlie Chia appointed BQSM Board Members
Fourth Industrial Revolution (4IR), in his recent interview. In addition, (2019/2021). We anticipate that
quantity surveyors increasingly need to Associate Professor Sr Dr. Noushad your skills and experience would
embrace technological advancement Ali Naseem Ameer Ali in his article be an asset to our Board and for the
so that we remain competitive and asserts that smart and plain contracts betterment of the QS profession. We
thrive in the international arena. It is adopting modern methods such as sincerely trust that you will have as
imperative to embrace digitisation artificial intelligence will improve much pleasure reading this edition of
and technological disruptions to construction contracts administration QSLINK Bulletin as much as we have
transition from being a labour-driven and minimise formal disputes and enjoyed compiling this for you, our
industry to one that is more efficient increasing higher productivity. dear BQSM members and readers.
and data-driven.
This issue is filled in with great photos Happy Reading!
In our cover features, given the rapid of BQSM activities such as CPD
pace of change in technology and seminars, workshops and technical
the fierce competitive environment visits. The most memorable event was
2
QSLINK ISSUE 2019 MESSAGE
MESSAGE FROM
PRESIDENT
Adjunct Professor
Dato’ Sr
Aziz Abdullah
CQS
Assalamualaikum wrm wbth and Salam Mesra
As has been the case in recent years, the advent of the Industrial
Revolution 4.0, which emphasise technological and innovative
aspects of reducing the dependence on manpower, is having
an impact on all sectors in this country, and the construction
industry is no exception. The Industrial Revolution 4.0, which
generally involves various new technologies such as automation,
big data, simulations, systems integration, the Internet of Things
(IoT), robotic applications and so on, appears to be capable of
accelerating the development of the modern world. Indeed, the
advent of the Industrial Revolution 4.0 presents a new challenge
for all sectors to work together to make changes so as to remain
competitive. Looking at the tide of change in the modern world
at present, a career as a Quantity Surveyor is also seen as
being in line with this digital transformation. To cope with the
current trend of modernization, Quantity Surveyors need to
equip themselves with knowledge and skills so as to adapt
their career to rapidly emerging technologies.
3
MESSAGE QSLINK ISSUE 2019
4
QSLINK ISSUE 2019 CONGRATULATORY NOTES & ACKNOWLEDGEMENT
SPECIAL
ACKNOWLEDGEMENT
We would like to extend our sincere gratitude and appreciation for all of the
hard work, dedication and leadership provided by the Board of Quantity
Surveyors Malaysia (BQSM) committee members Session 2017-2019.
“Management Is
Doing Things Right.
Leadership Is Doing
The Right Things”
Peter Drucker
5
CONGRATULATORY NOTES & ACKNOWLEDGEMENT QSLINK ISSUE 2019
Congratulations!
Adjunct Professor
Dato’ Sr
Aziz Abdullah,
CQS
for the appointment as
President
Board Of
Quantity
Surveyors
Malaysia
For the term 2019-2021
6
QSLINK ISSUE 2019 CONGRATULATORY NOTES & ACKNOWLEDGEMENT
Congratulations to
THE NEWLY APPOINTED
BOARD MEMBERS OF BQSM (2019-2021)
7
ANNOUNCEMENT & RECOGNITION QSLINK ISSUE 2019
STATISTICS OF
REGISTRATION
Registration From Year 2016-2018 Y2018
Y2016 Y2017
2287
1946 2135
Note :
Consultant Quantity Surveyors, Professional Quantity Surveyors and Quantity Surveying Technologist were
introduced since 2017 due to the implementation of QS Act 487 (Amendment) 2015.
10(38%)
1435(85%)
13(50%)
8
QSLINK ISSUE 2019 ANNOUNCEMENT & RECOGNITION
NEWLY REGISTERED
CONSULTING QUANTITY SURVEYING PRACTICES
(CQSP)
9
QSLINK ISSUE 2019 ANNOUNCEMENT & RECOGNITION
NEWLY REGISTERED
PROFESSIONAL QUANTITY SURVEYORS
(PQS)
41. SITI FADZILAH ZAINUDIN 40. MOHAMED ABD NAIM MOHAMED NAWI
45. SYED RIDZUAN SYED RAINUDDIN 44. PUTERI NUR FARAH NAADIA MOHD FAUZI
11
ANNOUNCEMENT & RECOGNITION QSLINK ISSUE 2019
TAYLOR’S UNIVERSITY
6. 20.1.2016 – 19.1.2021
BACHELOR IN QUANTITY SURVEYING (HONS)
UCSI UNIVERSITY
8. 28.2.2018 – 27.2.2021
BACHELOR OF QUANTITY SURVEYING (HONS)
SEGi UNIVERSITY
13. 5.9.2018 – 4.9.2020
B.SC. (HONS) QUANTITY SURVEYING
12
QSLINK ISSUE 2019 ANNOUNCEMENT & RECOGNITION
UNIVERSITI MALAYA
20. 1.1.2015 – 31.12.2019
BSc (HONS) IN QUANTITY SURVEYING
UNIVERSITY OF PORTSMOUTH
2. 3.5.2015 – 2.5.2020
BSc (HONS) QUANTITY SURVEYING
UNIVERSITY OF READING
3. 3.5.2015 – 2.5.2020
BSc (HONS) QUANTITY SURVEYING
NORTHUMBRIA UNIVERSITY
7. 26.10.2016 – 25.10.2019
BACHELOR OF SCIENCE (HONS) QUANTITY SURVEYING
13
BQSM ACTIVITIES (JAN-OCT 2019) QSLINK ISSUE 2019
BQSM
JAN ACTIVITIES
CPD : YOUR 50 CONSTRUCTION
CONTRACT FAQ
16 January 2019 | Premiera Hotel,
MAR
Kuala Lumpur CPD : BENGKEL PENILAIAN DAN
PENILAIAN TUNTUTAN KONTRAK
(WORKSHOP & ISSUES IN
CONTRACTUAL CLAIMS
6 – 7 March 2019 | Premiera Hotel, Kuala Lumpur
APR
CPD : PRACTICAL AND LEGAL
ISSUES PERTAINING TO PAYMENT IN
CONTRUCTION PAYMENT
(PWD 203 & 203A)
19 – 20 March 2019 | Riverside Hotel,
CPD : BEST PRACTICE FOR Kuching, Sarawak
S.O AND P.D IN CONTRACT
ADMINISTRATION
22 – 23 April 2019 | The Klagan Hotel,
Kota Kinabalu, Sabah
JUN
JUL MAJLIS PENYAMPAIAN
SIJIL PROFESSIONAL LJBM
TAHUN 2018/2019
24 Jun 2019 | Premiera Hotel Kuala Lumpur
TIER-II EXAMINATION BRIEFING JULY
SESSION 2019
1 July 2019 | Ministry of Works, Kuala Lumpur
ACCREDITATION VISIT TO
INFRASTRUCTURE UNIVERSITY
KUALA LUMPUR
16 – 17 July 2019 | Infrastructure University
Kuala Lumpur (IUKL)
CPD : KNOW YOUR TERM OF
CONTRACT – PAYMENT, EXTENSION
OF TIME, VARIATION AND
TERMINATION
17 – 18 July 2019 | Premiera Hotel,
Kuala Lumpur
PREPARATION OF THE CRITICAL
ANALYSIS REPORT WORKSHOP 2019
27 July 2019 | RISM Building
TIER-II EXAMINATION CQS JULY
SESSION 2019
29 July 2019,Ministry of Works, Kuala Lumpur
ACCREDITATION VISIT TO
NOTTINGHAM TRENT UNIVERSITY,
UNITED KINGDOM
30 – 31 July 2019, Nottingham Trent University
(NTU), United Kingdom
14
QSLINK ISSUE 2019 BQSM ACTIVITIES (JAN-OCT 2019)
BQSM
ACTIVITIES
AUG
CPD : LEGAL ISSUES IN
ADJUDICATION
6 – 7 August 2019, Premiera Hotel,
Kuala Lumpur
ICT STRATEGIC PLAN BRIEFING
14 August 2019, KKR2 TOWER
ANNUAL DIALOGUE SESSION 2019
SEP
25 August 2019, Dewan Tunku Abdul
Rahman (DeTAR), UNIMAS
ACCREDITATION VISIT
TO UNIVERSITI TEKNOLOGI MARA
(UiTM) SHAH ALAM
12 – 13 September 2019, UiTM Shah Alam
ACCREDITATION VISIT TO UNIVERSITI
SAINS MALAYSIA
19 - 20 September 2019,
Universiti Sains Malaysia
CPD : ISU-ISU PRAKTIKAL &
PERUNDANGAN BERKENAAN BAYARAN
DALAM KONTRAK BINAAN (CIPAA)
24 – 25 September 2019, Grand Continental
Hotel, Kuala Terengganu, Terengganu
OCT
CPD : ARBITRATION ISSUES
IN MALAYSIA CONSTRUCTION
INDUSTRY
14 October 2019, Premiera Hotel,
Kuala Lumpur
BENGKEL PANEL PENILAI
AKREDITASI PROGRAM IJAZAH &
DIPLOMA UKUR BAHAN / SIRI 2
15 October 2019
PROGRAMME FOR QS
REGISTRATION SCHEME
(PQRS 5.0)
22 October 2019, Universiti Malaya
15
ACHIEV EM EN T
LEMBAGA JURUUKUR
BAHAN MALAYSIA
BOARD OF QUANTITY
SURVEYORS MALAYSIA
Has Been Certified
ISO 9001:2015
By
QSLINK ISSUE 2019 INTERVIEW
FEATURED INTERVIEW 1
Distruptive Technologies - A Threat or
Opportunity for Quantity Surveying Practices
Sr Nur Aziz Abu Bakar,
CQS
Sr Nur Aziz Abu Bakar (CQS, FRISM, MRICS) started
his career with JUBM Sdn Bhd in 1988 as a Project
Executive and was appointed as the Director of JUBM
in 2001. JUBM and its sister company Arcadis often
injects electronic measurement approach and BIM
integration into their work to achieve project efficiency.
QSLINK content editor, Sr Masnizan JUBM has always been in the forefront software that enhance speed and
Che Mat and Sr Nazir Muhamad Nor when it comes to adopting new accuracy in QS works. Since then,
had the privilege of interviewing technologies. Since the 1990s, we have been exploring with different
Sr Nur Aziz, Mr Sean Chong Kong when most of the QS firms were still types of software.
Yoong and Mr George Wong Hong doing their works traditionally, JUBM
Chong of JUBM/ Arcadis IT team. and its associate companies has When BIM was introduced, we decided
JUBM/Arcadis is now working on developed and maintained a suit of to move into a paradigm shift from
enhancing productivity in design in-house innovative software, tailored our traditional practice to disruptive
and construction, researched on specifically for quantity surveying task. technology. We started BIM on a few
Computational BIM, virtual reality and Our “DalasNet” provided a secure projects. Adopting change is always a
other productivity enhancement topics. intranet workspace for communication challenge, we however has managed
and knowledge management. to pull it through. It was indeed a
1. How should a QS The “AtlesPro” and “L10Pro” are learning curve for everyone.
Consulting Practice respectively BQ and e-tendering
17
INTERVIEW QSLINK ISSUE 2019
18
QSLINK ISSUE 2019 INTERVIEW
19
INTERVIEW QSLINK ISSUE 2019
FEATURED INTERVIEW 2
The Legacy - Construction Commercial
Management And QS
Datuk Sr
Charlie Chia Lui Meng,
CQS
Datuk Sr Charlie Chia Lui Meng, CQS is highly
experienced in Property Management and Quantity
Surveying and often introduces commercial
management approaches into his work to achieve
to project profitability. He has a CLP and is
knowledgeable in construction claim and disputes.
QSLINK Managing Editor, Associate my LLB Honours degree from the management services throughout the
Professor Sr Dr Sarajul Fikri Mohamed University of London in 1994. I was project life cycle. My ultimate aim was to
had the privileged of interviewing obtained my CLP in 1995 and was provide a comprehensive QS services
him. Datuk Sr Charlie is now working admitted into the Malaysia Bar in 2017. especially contract management and
on improving construction contract cost control division. Currently QS
management new project development 2. Your company is practices in real estate development
with UMLand. Datuk Sr Charlie Chia considered one of are dealing with procurement works,
shares his perspective on Commercial the pioneers Master calls for tender, selection of contractor,
Management Construction: Challenges planning for contract suppliers for
Developer in Malaysia;
and Opportunities major materials such as sanitary
can you share with us fittings, steel reinforcement, ready
1. Could you please on how you embark mixed concrete etc.
briefly explain about into housing project
yourself? development? 3. What do you think is
the greatest challenge
I graduated with Bachelor of After almost 18 years working as faced by Malaysian
Quantity Surveying from UTM. I then quantity surveyor in the public housing developers
started my professional career as sector and 2 years as a construction
contractor, I am determined to change
through Government
an quantity surveyor at JKR and
worked for 18 years in several key my career to real estate development. policies changes?
QS sectors. Later, I joined UMLand In the early days, the majority of
real estate developers in Malaysia One of the challenges that influence
as General Manager, involved in
had no set up for contract and cost the growth of housing development
mixed development such as housing,
management in their organisation. firms is the governance and policies
commercial and infrastructure. In 2008,
I joined a Vietnamese Developer and
After 20 years in QS practices
was directly involved in overseeing
for public sector and contracting
construction projects in Vietnam. In
company, I have decided to venture
2012, I was appointed Group CEO
into property development industry.
of UMLand and retired in 2016. I
A lot of real estate developers do
remain as a non Executive Director in
not have a proper QS division to
a number of UMLand companies. On
provide cost management and contract
professional development, I received
20
QSLINK ISSUE 2019 INTERVIEW
21
FEATURED ARTICLE QSLINK ISSUE 2019
CONTRACTS
700 cases were filed with the Asian
International Arbitration Centre (then
known as the Kuala Lumpur Regional
ADAPTED FROM CIDB MAGAZINE Centre for Arbitration), with the value
of claims totally RM1.38 billion. Most
CONSTRUCTION BEYOND 2020 : ICW 2019 can be traced to poorly drafted
HIGHLIGHTS contracts, resulting in disagreements
over financing and costs, delayed
Associate Professor payments, quality issues, delays and
Sr Dr Noushad Ali Naseem Bin Ameer Ali, CQS disruptions, and other contractual and
Massey University, New Zealand ex-contractual contentions.
M
ALAYSIA’s construction industry growth may have slowed from
6.7% in 2017 and 4.9% forecasted for 2019 but it is still a vital “LARGE NUMBER OF
pillar of the economy with a significant role in driving the nation CONSTRUCTION CONTRACTS
towards developed status. From the basic skills used during its WRITTEN IN TRADITIONAL
infancy in the 1950s to the latest technologies revolutionising the business of LANGUAGE OR LEGALESE LINKING
building, the industry has evolved tremendously.
MULTIPLE PARTIES. THE CONTENTS
Today’s technologies cover augmented reality, robotics, drones, real-time OF THE AGREEMENT ARE OFTEN
collaboration software, green and sustainable practices, mobile and IoT adoption, LITTLE UNDERSTOOD BY THE
modular construction, smart buildings, and if research progress rapidly enough, SIGNATORIES TO THE CONTRACT.”
in the not too distant future - smart contracts using blockchain technology.
The speed of construction, better quality, cost efficiency and sustainability – DR NOUSHAD ALI NASEEM
have been vastly improved through systems like the Industrialised Building
Systems (IBS) and Building Information Modelling (BIM).
Despite the advances, the industry is still fraught with problems, including Associate Professor Sr Dr
questionable project awards, poor workmanship, unsafe work environments, Noushad Ali Naseem Bin Ameer
and manpower shortages. Ali, a multidisciplinary construction
professional with over 30 years of
industry and academic experience,
DESIGN AND BUILD
suggested how practices could be
CLIENT improved as the industry progressed
towards adopting modern methods
DESIGN AND BUILD such as artificial intelligence to
CONTRACTOR administer construction contracts.
22
QSLINK ISSUE 2019 FEATURED ARTICLE
a common sense approach - which unfortunately is not very common. A plain services or goods have been delivered
language contract is one which the parties to the contract and those who have instantaneously. This can prevent
an interest in it can understand the contents easily, ideally on first reading – fraud, undue delays, or interference
and possibly upon re-reading.” It should be fundamental right of everyone to at any level.
only sign a contract only after he/she fully understands the contents.
He explained the concept of smart
“And as construction contracts are typically based on standard published forms contracts,” Imagine a client has
of contracts, they should not require the services of lawyers to understand entered into a contract with the main
the voluminous documents - either before signing or during implementation contractor who in turn has multiple
of the project,” he explained. contracts with other subcontractors
for a project. The quantity surveyor,
Dr Naseem’s view is that contract administrators - as with architects, engineers, architect, engineer, contractor, and
and quantity surveyors - should not need lawyers’ services when they prepare subcontractors might then do a joint
valuation for progress payment on site
TRADITIONAL PROCUREMENT using a digital device like an iPad.
QUANTITY
ARCHITECT ENGINEERS SURVEYOR
“A SIGNIFICANT AND CONSTANT
CLIENT ISSUE FACING BUILDERS AND
OTHER STAKEHOLDERS ALIKE IS
MAIN CONTRACT DISPUTES.”
CONTRACTOR
DOMESTIC DOMESTIC SUB- NOMINATED SUB- NOMINATED “Upon agreement and authorisation
SUPPLIERS CONTRACTORS CONTRACTORS SUPPLIERS by the relevant parties, payments
may then be transferred online, the
THE TRADITIONAL PROCUREMENT ROUTE – timing of which could range from
CONTRACTS AND PAYMENT FLOWS being instantaneous to all parties to
a date in the future say in 30 days,
if so agreed by the parties in the
typical tender and contract documents and when administering the contract contract. Banks would also be keen
throughout the construction stage. to use this technology because it is
more efficient, safe, and effective.”
Can contracts like construction contracts be written in modern plain language
without losing legal intent? Dr Naseem said the technology would
keep all transactions transparent,
He said his research on construction contracts showed that this is clearly
adding that there will be zero payment
possible. He backed his claim, quoting learned authorities like Emeritus
delays or defaults if transactions
Professor Peter Butt from Sydney Law School, Associate Professor Rachelle
are instantaneous or paid within the
Lintao from the Santo Tomas University in the Philippines, Professor Joseph
contractually agreed time frames.
Kimble from the USA, Mark Adler and Martin Cutts from the UK, and the findings
Such efficiency would result in
of several other researchers.
minimal formal disputes and higher
He said plain language contracts could be drafted more clearly and effectively productivity, leaving the parties to
using two examples that have been accredited as a “Clear English Standard” concentrate on the quality and timing
document by the Plain Language Commission, UK. aspects of their work. This would help
construction projects to be completed
One is the Standard Terms of Construction Contracts for Renovation and Small on time and to the contractually agreed
Projects (STCC-RSP 2015) published by the CIDB Malaysia, in collaboration quality.
with various professional and trade organisations in Malaysia. The other is a
contract for Quantity Surveying Professional Consultancy Services (NZIQS- “Technology would keep all
CQSCS) published by the New Zealand Institute of Quantity Surveyors. transactions transparent adding
that there will be zero payment
Dr Naseem is also involved in the research of smart contracts that may be delays or defaults if transactions are
administered by machines with little or no human intervention. Smart contracts instantaneously or paid within the
have embedded codes to enable the instantaneous exchange of money after contractually agreed time frames”
23
FEATURED ARTICLE QSLINK ISSUE 2019
FEATURED ARTICLE 2:
THE CONTRACTORS REPORT
CARD: A STEP TO RELIABLE
DECISION MAKING
Sr Ida Zuraida Mohd Yusoff, CQS
Construction Industry Development Board (CIDB) Malaysia
In line with the Construction Industry CIMS, housing the core database of
Transformation Programme initiative the Construction Industry has enabled
for Ease of Doing Business, CIDB has the creation of a comprehensive
embarked on a Strategic Enterprise information tool on contractors
Resource Planning (ERP) project known as the Contractors Report
since the year 2017. The result is Card (CRC). The CRC consists of
the establishment of its first ERP company profile, list and status of
known as the Centralised Information licensing registrations, SCORE ratings,
Management System (CIMS), certifications and awards, information
integrating eight core processes with on contractor’s personnel including
fifteen external systems to promote the list of training and competencies
a seamless business process for acquired. The CRC also consists of
the industry’s convenience. The current and past project information
objective : to facilitate the Ease of as well as the regulatory compliance
Doing Business for stakeholders information (legal and enforcement).
through the concept of Connected
Government and seamless business The CRC is meant to gauge the
process integration. construction companies’ dynamics,
providing a fair and justified information
24
QSLINK ISSUE 2019 FEATURED ARTICLE
“Synergy is better
a good-practice environment within
the Construction Industry through the
than my way or
sharing of transparent and factual
information that would serve as a
way”
establish a more effective governance
of the industry’s conduct, encourage
positive competition, enabling the
selection of credible contractors for
projects thus increasing the success Stephen Covey
of projects delivery rate. The CRC
is expected to be fully accessible in
January 2020.
25
QSLINK ISSUE 2019 FEATURED ARTICLE
FEATURED ARTICLE 3:
INNOVATION IN QS
“AUTOMATION AND ARTIFICIAL
INTELLIGENCE TECHNOLOGIES
IN QUANTITY SURVEYING
PRACTICES”
Associate Prof. Sr Dr. Sarajul Fikri Mohamed, CQS
Universiti Teknologi Malaysia (UTM), Johor Malaysia
INTRODUCTION
Quantity Surveyor (QS) work in a
diverse range of market conditions – in
terms of companies as well as project
types. Some major companies may
have well-established processes and
knowledge of the construction industry
and of their project’s requirements,
while others may only have limited
experience. Hence, quantity surveyors
will need to change and adapt their
approaches according to the needs of
the industry and the market. As such, Figure 1 : Benefits of Automation Implementation in Construction
the flexibility and ability of quantity
surveying professionals to evolve with
of technology adoption due to the are supported by several programmes
changing market demands are keys to
Third Wave of Internet Revolution. It and initiatives in order to achieve the
the survival and continuing relevance
represents a new era of information and CITP agenda. Steering towards a high-
of the profession. While Artificial
communication technology in which income nation, it is imperative for our
Intelligence (AI) and machine learning
successful organisations will focus construction players to be on par with
can greatly increase efficiency, even to
on tackling Third Wave verticals or the technological advancements and
the point of replacing many functions
build ‘Deep Tech’ businesses through new talents in the global construction
within the quantity surveying domain,
technological break-throughs like arena.
nothing replaces the human insight
automation and artificial intelligence
and intuitive problem solving abilities. Trends of artificial
technologies as shown in Figure 1.
Nevertheless, the QS profession
intelligence and
is desired to be different to what
In line with this, the ultimate goal of CITP automation technologies
it was even thirty years ago. The
is to transform the construction industry in construction industry
by 2020 to create highly competent
construction industry is changing It is imperative to embrace digitisation
and competitive players for both the
the shape in terms of investment and technological disruptions to
local and international construction
adoption and technology adoption. achieve the transition from being a
industry. Quantity surveyors must
Privatization over the past thirty years labour-driven industry to one that
have complete confidence and the
revealed that the share of the public is more efficient and data-driven.
necessary professional acumen to
sector’s construction segment has Industry 4.0 has enabled the quantity
handle increasingly complex and
been considerably reduced. Coupled surveying profession to enhance the
challenging global construction
with this, have been strategic changes quality of the services to their clients.
projects. The CITP strategic thrusts
27
FEATURED ARTICLE QSLINK ISSUE 2019
Conclusion
The recent advances in artificial
intelligences and automation have
touched virtually every aspect of
construction process including quantity
surveying practices. Integrating
automation technologies to specifically
address real-time construction cost
management will improve construction
cost performance and drastically
remove unnecessary bottlenecks faced
by project participants especially
quantity surveyors and project design
team.
“Through BIM,
quantity surveyors
are able to automate
measurement,
speed up the
traditional estimating
process and update
design changes
simultaneously”
28
QSLINK ISSUE 2019 LESSONS LEARNT
29
LESSONS LEARNT QSLINK ISSUE 2019
1. The SCJ’s decision to dismiss the Plaintiff’s claim for the sum of RM968,846.00 and award instead a nominal
sum of RM70,000.00 was a Serious misdirection in law and in fact which required appellate intervention to set
right.
2. The existence of a contract was actually not in issue; certainly not in the Defence filed. The Defendant’s pleaded
case was that the Plaintiff did not do the work as instructed; and that it was not obliged to pay because the work
had not been approved by the local authorities; and that the work order could not be relied on as the Plaintiff
was proposing changes to it; and that it was not signed. All these were far removed from saying there was no
contract between the parties in the first place. Since the pleaded case did not devolve any issue on the question
of the existence of a valid contract, but really whether the Defendant had a right to terminate where the Plaintiff
was said to have not carried out work according to the work order; or that the work had to be approved by the
local authorities, the SCJ had asked the wrong question.
3. The SCJ was in fact presented with ample evidence on the existence of contract. There was the quotation which
itemised the details of work for the project and to which the Plaintiff had pegged its price; emails exchanged
between the parties on the work order to be issued where the parties were merely deciding whose name to
designate for the contract; and the Defendant’s unequivocal instructions to the Plaintiff to carry out preliminary
works. A valid contract was established.
4. The claim for preliminary works was not a claim for out-of-pocket expenses. It was a claim for work or services
rendered at the preliminary stage; hence, what was termed as “preliminary work” or “preliminaries”. The details
of such work were set out in the work order and comprised general matters, materials and samples, pricing,
temporary works, contract administration, statutory requirements, particulars of contract conditions, commission
and completion; contingencies. The Plaintiff’s claim was for a liquidated sum by measurement to the type and
progress of the works required at that particular stage of the works.
5. As the parties had agreed on how the contract price was to be paid, and since for “Preliminaries”, there was
plenty of evidence proving that the Plaintiff had carried out works to the value of RM637,500.00, the claim must
be allowed. The details of the Plaintiff’s work were properly before the Court and there was not much in challenge
or serious challenge by the Defendant. Consequently, the Plaintiff’s claim for RM637,500.00 should have been
allowed.
Commentary by:
Datuk Sr Chia Lui Meng, CQS, FRISM, MRICS
LLB (Hons), CLP
Director, UM Land Group of Company
Introduction
This case highlights the formation of contracts and the basis for the contract. In this instance, the Contract
Document was a “Works Order” issued by the Main Contractor (Defendant) to the Subcontractor (Plaintiff).
The basis for the Works Order was the Quotation submitted by the Subcontractor which listed down the
items and quantities. Amongst them is the Preliminaries Items which were priced by the Plaintiff.
In contract administration, the Subcontractor’s Quotation was considered as an Offer and the Main
Contractor’s “Works Order” was the Acceptance. The question in relation to the validity of an existing
Contract and the Subcontractor’s and Main Contractor’s intention to bind each other in a Contract was
not disputed by their subsequent conduct. The Main Contractor subsequently issued work instruction
order for the mock up unit and the Preliminaries Items and the completion of the scope of work by the
Subcontractor was sufficient to establish a legal relationship and a proper contract.
30
QSLINK ISSUE 2019 LESSONS LEARNT
Upon completion of the mock up unit and the Preliminaries Items, these works could be measured in
a bill of quantities or lump sum by using the rates in the established “Work Order” when certifying the
payment made.
The claim for work done by the Subcontractor are not special damages nor are they to be measured
on “Quantum Meruit” basis as these completed works are regarded as “Works Done” and to be paid
according to the rates and quantities measured. The Subcontractor’s claims which were in this format
were sufficient for the evaluation for of payments.
The termination without notice and without justification or any default by the Subcontractor was considered
invalid. The Main Contractor had pleaded that there was no Contract upon the non-signing of the first
Works Order and the non finalization of the negotiation. However, the Main Contractor’s conduct in
terminating the Subcontractor’s employment is deemed to have bound the Main Contractor into a
contractual relationship.
Had the Contract not subsisted as pleaded, the fact that the subsequent issuance of an instruction to
the Subcontractor to carry out the preliminary works in view of the urgency of the project, was evidence
enough to create another legal relationship and thus a binding contract.
Care should be taken to ensure that if the “Works Order” is varied or changed, proper Architect’s
Instructions or new “Works Order” is obtained to validate the changes.
Preliminaries Items are not “out of pocket expenses” but form part of the scope of works in the contract.
Upon completion of works, the stipulated evaluation of the quantities shall be made for the certification
of payment.
Authorities approvals are always the Employer or Main Contractor’s responsibilities to obtain and if
Authorities requires further amendments, these should be in the form of an Architect’s Instruction to vary
the works done and a Variation Order to follow with a price adjustment if necessary.
If an Architect’s Instructions is not forthcoming, then the Subcontractor can send a letter to the Architect
to confirm in writing the variations ordered, and which can be used to later support a construction claim.
31
QS HIGHLIGHTS QSLINK ISSUE 2019
PAQS 2019
KUCHING
SARAWAK
Congress Days
During the Plenary Session 1 and before the official
Opening, Yang Berhormat Tuan Baru Bian, The Honourable
Minister of Works Malaysia presented the keynote address
at the congress, which was officiated by Chief Minister
Datuk Patinggi Abang Johari Tun Openg. He pointed out
that construction industry players need to have the foresight
to adopt new technologies, methodologies and ways of
thinking in order to continue to thrive in this brave new
world. He said that “The future of construction promises
to be challenging yet holds many exciting opportunities.
In fact, the future is already here and I urge all of us here
to embrace the emerging technologies in order to fully
benefit from it.”
33
BOOK REVIEW QSLINK ISSUE 2019
Synopsis:
Synopsis:
In the big data era, successful cloud system, web services and data centres must be
designed to store, process, learn and analyse big data to discover new knowledge or
make critical decision. This book consists of eight chapters presented in a logic flow of
three technical parts which include: big data, clouds and Internet of Things, Machine
learning and deep learning algorithms and Big data analytics for health care and
cognitive learning. This book blends big data theories with emerging technologies
on smart clouds and exploring distributed datacentres with new applications. For
example emotion-detection robotics, virtual reality, augmented reality and cognitive
services can be implemented in QS practices for cost planning and monitoring.
Synopsis:
This book provides an excellent overview of the engineering aspects of block chains.
It covers the current options for platform, the application areas in which they may be
used and design software to utilize block chain technology. Although block chains did
not spring fully realized and built on prior work, the introduction of Bitcoin in 2009 can
be considered the birth of block chain. In addition technologies that are disruptive
to the consumer are actually quite rare. Smart phones and the World Wide Web are
now of the most recent ones. In the QS context, we should look for opportunities bot
to deepen our understanding about block chains and to apply them in QS practices
where they provide the correct set of functionalities that we need for cost and contract
management processes and problem.
34
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