3333 OCW L2-Site Valuation Progress Payment

9/17/19
Assoc. Prof. Sr Dr. Mohd Saidin Misnan, CQS

UNIVERSITI TEKNOLOGI MALAYSIA
81310 UTM Johor Bahru, Johor, Malaysia
b-saidin@utm.my_SBEQ3333
Fig: Project management process
b-
saidin@utm.my_SBEQ33
b-saidin@utm.my_SBEQ3333 1
9/17/19
SITE VALUATION AND PROGRESS

PAYMENT
Site Valuation and Progress Payment:

• Preparation for Site Valuation,
• Valuation of Materials on Site,
• Site Measurement,
• Valuation of Preliminaries, and
• Preparation of Progress Payment Certificate.
b-
Definition
• Document verified by an quantity surveyor,

architect, engineer, or owner of a construction
project that the noted work has been completed
and is approved for payment by the contractor.
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9/17/19
Interim Payments
• Where a Payment Schedule is included in the Contract,

Interim Payments shall be made by the Government as
set out in the Payment Schedule in Appendix which
shall be drawn up by mutual agreement of the
Government and the Contractor having regard to the
approved programme of Works provided that upon
application by the Contractor, the P.D. reserves the
right to make payment according to the value of work
done if the Contractor has not reached the required
stage in the Schedule but has in the opinion of the P.D.
completed the said stage substantially.
b-
• Where no Payment Schedule is included in the

Contract, the Interim Payments shall be made by
the Government based on the P.D.'s monthly
valuation of the Works properly executed and of
any goods or unfixed materials delivered to or
adjacent to the Site intended for use or to be
incorporated into the Works.
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INTERIM VALUATIONS
• The main items to be considered when

valuing the works are:
– Measured work including preliminaries
– Value of variations and extras
– Value of nominated sub contractor or
supplier work
– Fluctuations where applicable
– Unfixed material on site (mos)
– Retentions sums
– Previous payment
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INTERIM VALUATIONS
• Preparations • Valuations • Progress

of Interim on Site Payment
Valuations Certificate
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Preparation for Site Valuation
Claim documents
Proof of Claims
Support documents
Submission of claims
Process of preparation for valuations of interim

payment
Contractor- Consultant QS- QS- prepare

claim check Interim
certificate
QS and S.O certified
Site valuation
Client, QS and
consulants Client- approved
Interim certificate
Client- payment
to contractor
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Valuation of Materials on Site
Types of Materials
Claim documents
Proof of Claims
Support documents
Confirmation or endorsement of
delivery
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INTERIM VALUATIONS
• Unfixed material
– Based on a list prepared by general foreman of
COW which can be checked on site.
– Material should be of the specified quality, be
insured and properly protected and not be
brought on to the site prematurely.
– Conditions to be fulfilled :
• Intended for inclusion in the works.
• Complete, satisfactory and adequately insured.
• Have been set apart, clearly and visibly and
reference to identify where they are stored,
person whose order, their destinations is works.
• If say from supplier , material shall pass
unconditionally to the C’tor.
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Site Measurement
Need and requirements
Claim documents
Process of measurement
Support documents
In presence of parties
Valuation of Preliminaries
List of preliminaries
Claim documents
Progress of Preliminaries
measurement
Support documents
Method of claim
9/17/19
INTERIM VALUATIONS
• Valuations of preliminaries
• The preliminaries cost will
– Based on the amount of be distribute based on
the contract period that three (3) stages of
has elapsed. completions:
– Based on the value of – Initial cost
work done. – Recurring cost
– Based on valuations by – Final cost
individual assessment.
b-
Preparation of Progress Payment

Certificate
Preliminaries
Total Work progress
Components of works and progress
Previous payment or progress
Others info: Advance payments, LAD,

Retention, Bond etc.
Variation order
9/17/19
CADANGAN MENAIKTARAF INFRASTRUKTUR JALAN DAN KERJA-KERJA

BERKAITAN DI KAWASAN PERINDUSTRIAN MURNI, SENAI, JOHOR
BILL NO. 1 - PRELIMINARIES Progress Payment No. 4
PAGE DESCRIPTION CONTRACT INITIAL RECURRENT COMPLETION REMARKS

REF. AMOUNT ( RM ) ( RM ) ( RM ) (RM )
B1/1/A WORKMEN 'S COMPENSATION 3,000.00 2,400.00 600.00 -
B1/1/A INSURANCE FOR PUBLIC LIABILITY 1,500.00 1,200.00 300.00 -
B1/1/A INSURANCE OF WORKS 1,500.00 1,200.00 300.00 -
B1/2/A STORAGE 8,000.00 8,000.00 - -
B1/2/B LICENCE SURVEYOR 10,000.00 8,000.00 2,000.00 -
B1/2/C PROGRESS PHOTOGRAPHS 2,000.00 - 2,000.00 -
B1/2/D WORK PROGRAMME 2,000.00 800.00 1,200.00 -
B1/2/E SIGNBOARD 2,500.00 2,000.00 - 500.00
B1/2/F HOARDING 10,000.00 8,000.00 - 2,000.00
B1/3/A SAFETY MEASURE 3,000.00 1,200.00 1,800.00 -
B1/3/B CIDB 3,500.00 3,500.00 - -
B1/3/C AS BUILT DRAWINGS FOR SERVICES 8,000.00 - - 8,000.00
B1/3/D SAFETY HELMET, BOOTS 2,000.00 - 2,000.00 -
B1/3/E COORDINATION WITH AUTHORITY - - - -
B1/3/F CLEANING AND CLEARING WORKS 3,000.00 - 600.00 2,400.00
B1/3/G DIGITAL CAMERA 2,000.00 1,600.00 400.00 -
B1/3/H TOSHIBA NOTE BOOK 10,000.00 8,000.00 2,000.00 -
TOTAL 72,000.00 45,900.00 13,200.00 12,900.00
PRELIMINARIES COST
Consultant to propose "calculation" of payment to be made for recurrent item
Collection
INITIAL COST : = 45,900.00

Less Item with underline -
45,900.00
RECCURRING COST : Value of W/done X Reccurent

Contract Sum - (PC + PS) -Preliminaries Cost
2,128,292.90 X 13,200.00 = 11,533.60

2,435,793.50
FINAL COST : = -
b- TOTAL CARRIED TO GENERAL SUMMARY : = 57,433.60
INTERIM VALUATIONS
• Based on the amount of the • Based on the value of work

contract period that has done
elapsed: – Value of work done for
– Total value of prelim vs period that particular month.
of completions. – Less ( prime cost +
– Say, RM75,000.00 / 60 week. provisional sum +
– So, RM 1,250 per week. preliminaries)
– Multiply by total cost of
preliminaries work.
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9/17/19
INTERIM VALUATIONS
• Based on valuations by individual assessment:
– Certain items may be required at the outset and can
accordingly be valued in full, such as provision of
temporary site fencing, constructions of temporary
roads, and the erection of hoarding, storage
compound etc.
– Items value in full or in part according to their
usage, such scaffolding and plant.
– Items valued in proportions to the works executed,
such as wages of general foreman, cost of
telephone call and inc.
– Items valued on completions such as cleaning and
drying out.
b-
INTERIM VALUATIONS
• Valuation of measured works:

– Items of works done individually extracted
from BQ.
– Approx. qty. may be measured for the work
as executed and priced at bill rates.
– It maybe practicable to value the work as an
estimated % of the total value of a work
section.
– Pre-determined stages of completions may
be assessed as % of the value of the total
work in the contract.
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INTERIM VALUATIONS
• Valuations of variations and extra’s

– Any direct loss & expenses occur from
Architect /S.O instructions.
– QS should assess the value of these item to
be included in interim valuations.
– The variations of omissions/addition from
original contract
– Net balance which is added to or deduct
from the valuation.
b-
INTERIM VALUATIONS
• Valuation of Nominated Sub Contractor or Supplier’s
work
– NSC submit account to QS for assessment through
Contractor
– The account shall include :
• Work executed to date,
• Original quotations,
• Extra works,
• Material on site
– The amount to be paid shall be specified in interim
valuations.
– Proof the Contractor has paid the NSC are required.
– In the event C’tor default, Arch decided for direct payment
.
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9/17/19
INTERIM VALUATIONS
• Fluctuations
– May inserted in a building /infra contract.
– Adjustment for increase or decrease in the
cost of labour/material after date of tender.
– Assessment of the value of fluctuations is
progressive and cumulative total added to
each valuations.
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INTERIM VALUATIONS
• Retention
– Retention by the employer of a proportion of
the monies due to the Contractor on an
interim certificate.
– To create an incentive for the prompt and
satisfactory performance of the works.
– To provide security for the employer against
default by the Contractor.
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9/17/19
INTERIM VALUATIONS
• Release for Retentions
– Sectional completions
• Half of retentions on value of relevant part is release
within 14 days taking possessions.
• Another half, after DLP end.
• Amount of retentions will be reduce accordingly.
• Good practice to issue interim certificate.
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INTERIM VALUATIONS
• Release for Retentions
– Final payment of a nominated sub con before practical

completions
• Where Arch/SO wish to secure payment of NSC before
main cont complete,
• He may release the retentions held against completed
sub contract work.
• NSC must satisfactorily indemnify the contractor
against latent defects.
• Gross retentions will be reduced by the amount of
retentions released.
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9/17/19
INTERIM VALUATIONS
• Release for Retentions (cont’d…)

– Practical completions
– Residue on issue of final certificate
b-
Sample of Private Project SAIDIN UKUR BAHAN SDN. BHD. (440419-K)

JURUUKUR BAHAN & PERUNDING KOS BINAAN
Engine e rs /S .O Y Architects
No. 18-03, Jln Perm as 10/7,
Bandar Baru Perm as Jaya,
81750 Johor Bahru,
Johor Darul Takzim .
Q.S. VALUATION
da te d the 1st day of December 2003 for Va lua tio n No . Five (5)
the wo rks kno wn a s Cadangan Pem bangunan Kom pleks Perdagangan
Pekan Rabu (4 Tingkat), Pencaw ang Elektrik TNB Dan Da te 7th July 2004
Tem pat Pem buangan Sam pah Di Atas Sebahagian Lot
P.T.D. 63718, Mukim Tebrau, Johor Bahru, Johor Darul Da te in S ite 30-Jun-04
Takzim .
F o r C e rtific a te no . Five (5)
indicates that(n) interim 'balance is due
Q.S.'s
fro m the e m plo ye r Sw issharta Sdn. Bhd.
No, 256, Jalan Sutera, COPY
Taman Sutera,
Johor Darul Takzim.
+Gro s s va lua tio n R M 7,708,018.07
is the c o ntra c to r System Metal Alum inium & Glass
Construction Sdn Bhd No t re te ntio n s ta te d be lo w R M 410,709.44
18 & 20, Jalan Kem pas 4, Tam an Perindustrian Tam poi
Indah, 81200 Johor Bahru. Ne t va lua tio n R M 7,297,308.63
C o ntra c t s um R M 8,214,188.85 P re vio us ly c e rtifie d R M 5,723,615.56
B a la nc e indic a te d Ringgit One Million Five Hundred Seventy Three Thousand Six Hundred 1,573,693.07
(in wo rds ) Ninety Three And Sen Seven Only
Statement of Retention
Gro s s re le nta tio n (Limit 5% #) e xc luding pa ym e nt unde r C la us e s 24 a nd 31 RM 410,709.44
P re vio us re le a s e s to no m ina te d s ub-c o ntra c to r's RM
The C o ntra c to r ha ving c o nfirm e d to the Engine e r/S .O. re c e ipt o f s a tis fa c to ry
inde m nify. F ina l pa ym e nt is to be m a de to the No m ina te d S ub-C o ntra c to rs lis te d
be lo w, the re te ntio n be ing a djus te d a c c o rdingly
S ub-c o ntra c to r RM
S ub-c o ntra c to r RM
S ub-c o ntra c to r RM RM
B a la nc e o f re te ntio n R M 410,709.44
P a rtia l re le a s e o f re te ntio n o n s e c tio na l c o m ple tio n unde r C la us e 16.1 (vi) RM
P a rtia l re le a s e o f re te ntio n o n pra c tic a l c o m ple tio n unde r C la us e 30.5 (iii) RM RM
Ne t re te ntio n a s s ho wn in va lua tio n R M 410,709.44
S igna ture Qua ntity S urve yo r

' Ins e rt the wo rd "inte rim " o r "fina l"
It is a s s um e d tha t the Engine e r/S .O. will (m a ke a ny a djus tm e nt in re s pe c t + inc luding the va lue o f wo rks by
o f wo rk wic h he c o ns ide rs im pro pe rly e xe c ute d; (b) unle s s o the rwis e a gre e d no tify no m ina te d s ub-c o ntra c to rs a s to this
no m ina te d s ub-c o ntra c to rs o f pa ym e nt due to the m ; (c ) s a tis fy him s e lf, if he wis he s va lua tio n
b-
tha t pre vio us pa ym e nt to no m ina te d s ub-c o ntra c to r ha ve be e n dis c ha rge .
# Ins e rt pe rc e nta ge o r "lim it"
9/17/19
Sample of Government Project PERAKUAN BAYARAN INTERIM NO : 3
MAJLIS PERBANDARAN KULAI (MPKu)

PERAKUAN BAYARAN INTERIM NO : 3 Amaun-amaun yang kena dibayar kepada Subkontraktor/ Pembekal Dinamakan, Penerima Hak dan Pegawai Penyelia Tapakbina
Jenis Kerja atau Jumlah Bayaran Amaun yang
PERUNTUKAN PEMBANGUNAN: MAKSUD : BUTIRAN : r Penerima Bayaran Jumlah Harga
Bulan Terdahulu diperakukan
(1) (2) (3) (4) (5) (6)
TAJUK KERJA : CADANGAN MENAIKTARAF INFRASTRUKTUR JALAN DAN KERJA-KERJA
BERKAITAN DI KAWASAN PERINDUSTRIAN MURNI, SENAI, JOHOR
A Perunding Kontraktor Utama
NAMA & ALAMAT KONTRAKTOR : TEAMCOAT METALCARE & DEVELOPMENT SDN BHD
Nama :
No. 40 Jalan Penaga 10,
Kaw. Perindustrian Kota Putri,
81750 Masai,
Johor Darul Takzim.
Bank :
NO. KONTRAK : MPKu.T/3/2007
Alamat :
JUMLAH HARGA ASAL KONTRAK : RM 2,507,793.50
JUMLAH BERSIH TAMBAHAN/POTONGAN : RM -
HARGA BARU KONTRAK : RM 2,507,793.50 No. Akaun :
A. BUTIR-BUTIR BAYARAN DAN POTONGAN Jumlah Kecil
1. TARIKH PENILAIAN : 1hb. November 2007
2. NILAI KERJA DILAKSANAKAN DAN AMAUN-AMAUN LAIN YANG KENA BAYAR * RM 1,000,000.00
3. KURANGKAN Bayaran Interim Yang Terdahulu No. 1 - 2 RM 459,438.58 B Pembekal Dinamakan
4. NILAI BERSIH KERJA SEMASA RM 540,561.42 Nama :
5. POTONGAN
a. Bayaran Balik Wang Pendahuluan
i) Amaun Terkumpul RM - Bank :
ii) Amaun Terdahulu RM - Alamat :
iii) Amaun Semasa RM -
b. Akaun Deposit Wang Jaminan Perlaksanaan (Amaun Terdahulu) RM 51,048.73
No. Akaun :
c. Gantirugi Tertentu Dan Ditetapkan @ RM…….../hari selama ………. RM -
Jumlah Kecil
d. Potongan lain jika ada RM -
Jumlah Potongan RM 51,048.73 RM 51,048.73

C Penerima Hak
BAYARAN YANG DISYORKAN RM 489,512.69
Nama : TEAMCOAT METALCARE Kontraktor RM 1,000,000.00 RM 459,438.58 RM 489,512.69
& DEVELOPMENT SDN BHD Utama
No. 40 Jalan Penaga 10,
Kaw. Perindustrian Kota Putri,
……………………………………………… ……………………………………………… ……………………………………………… 81750 Masai,
Perunding Jurutera/ Perunding Ukur Bahan Jurutera Bangunan/
Johor Darul Takzim.
Pengesyor yang bertanggungjawab Pengesyor yang bertanggungjawab Pegawai yang bertanggungjawab
Bank : Affin Bank Berhad
Tarikh : ……………………………… Tarikh : ……………………………… Tarikh : ……………………………… Alamat : Taman Permas Jaya,
Johor Bahru, Johor
B PERAKUAN BAYARAN No. Akaun : 100730006258
1. Bayaran Interim Jumlah Kecil RM 489,512.69
a) Kepada Kontraktor Utama RM 440,561.42
b) Kepada Subkontraktor/Penerima Hak RM -
(Seperti di Lampiran A)
Jumlah Bayaran Interim RM 440,561.42 RM 440,561.42 D Pegawai Penyelia Tapak
2. Kredit Akaun Deposit Wang Jaminan Perlaksanaan (10% dari Bayaran Disyorkan sehingga 5% harga kontrak) RM 48,951.27 Nama :
BAYARAN DIPERAKUKAN RM 489,512.69
(Ringgit Malaysia: Empat Ratus Lapan Puluh Sembilan Ribu Lima Ratus Dua Belas dan Sen Enam Puluh Sembilan Sahaja)
Bank :
Alamat :
Adalah disahkan bahawa semua peraturan kewangan dan kehendak di bawah Kontrak telah dipatuhi
No. Akaun :
Jumlah Kecil
…………………………………………………….
Tarikh:……………….. Setiausaha /Pegawai Yang
Diberi Kuasa Untuk Memperakukan
1 Jumlah amaun yang dibayar dibawah Perakuan ini ialah

(Untuk diisi oleh Pegawai yang menyediakan baucer). Pegawai Pengesyor
Sesalinan perakuan hendaklah dikembalikan kepada Jurukur Bahan/Wakil Pegawai Penguasa) Nota :
2 Bayaran wang pendahuluan yang telah dikeluarkan (Untuk diisi oleh Jurukur Bahan/Wakil Pegawai Penguasa)
3 Bayaran semula Wang Pendahuluan sehingga kini (2) Isikan nama subkontraktor/ penerima bayaran yang berkenaan
4 Jumlah Wang Jaminan Yang Perlu Ditahan RM 125,389.68 (3) Nyatakan jenis kerja atau bekalan atau bulan yang berkenaan bagi kategori Pegawai Penyelia. Tidak berkenaan bagi penerima hak.
b-
* Termasuk Barang Tak Pasang, Pelarasan Turun Naik Harga, Tuntutan Bayaran Tambahan yang diluluskan
(4) Isikan jumlah harga subkontraktor/ jumlah yang diserahhak. Tidak berkenaan bagi kategori pegawai penyelia.
THANK YOU
b-saidin@utm.my
b-

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3333 OCW L2-Site Valuation Progress Payment

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9/17/19

Assoc. Prof. Sr Dr. Mohd Saidin Misnan, CQS

Fig: Project management process

SITE VALUATION AND PROGRESS

Site Valuation and Progress Payment:

• Document verified by an quantity surveyor,

• Where a Payment Schedule is included in the Contract,

• Where no Payment Schedule is included in the

• The main items to be considered when

• Preparations • Valuations • Progress

Preparation for Site Valuation

Process of preparation for valuations of interim

Contractor- Consultant QS- QS- prepare

Valuation of Materials on Site

Need and requirements

Preparation of Progress Payment

Total Work progress

Components of works and progress

Previous payment or progress

Others info: Advance payments, LAD,

CADANGAN MENAIKTARAF INFRASTRUKTUR JALAN DAN KERJA-KERJA

BILL NO. 1 - PRELIMINARIES Progress Payment No. 4

PAGE DESCRIPTION CONTRACT INITIAL RECURRENT COMPLETION REMARKS

B1/1/A WORKMEN 'S COMPENSATION 3,000.00 2,400.00 600.00 -

B1/1/A INSURANCE FOR PUBLIC LIABILITY 1,500.00 1,200.00 300.00 -

B1/1/A INSURANCE OF WORKS 1,500.00 1,200.00 300.00 -

B1/2/A STORAGE 8,000.00 8,000.00 - -

B1/2/B LICENCE SURVEYOR 10,000.00 8,000.00 2,000.00 -

B1/2/C PROGRESS PHOTOGRAPHS 2,000.00 - 2,000.00 -

B1/2/D WORK PROGRAMME 2,000.00 800.00 1,200.00 -

B1/2/E SIGNBOARD 2,500.00 2,000.00 - 500.00

B1/2/F HOARDING 10,000.00 8,000.00 - 2,000.00

B1/3/A SAFETY MEASURE 3,000.00 1,200.00 1,800.00 -

B1/3/B CIDB 3,500.00 3,500.00 - -

B1/3/C AS BUILT DRAWINGS FOR SERVICES 8,000.00 - - 8,000.00

B1/3/D SAFETY HELMET, BOOTS 2,000.00 - 2,000.00 -

B1/3/E COORDINATION WITH AUTHORITY - - - -

B1/3/F CLEANING AND CLEARING WORKS 3,000.00 - 600.00 2,400.00

B1/3/G DIGITAL CAMERA 2,000.00 1,600.00 400.00 -

B1/3/H TOSHIBA NOTE BOOK 10,000.00 8,000.00 2,000.00 -

TOTAL 72,000.00 45,900.00 13,200.00 12,900.00

INITIAL COST : = 45,900.00

RECCURRING COST : Value of W/done X Reccurent

2,128,292.90 X 13,200.00 = 11,533.60

b- TOTAL CARRIED TO GENERAL SUMMARY : = 57,433.60

• Based on the amount of the • Based on the value of work

• Valuation of measured works:

• Valuations of variations and extra’s

– Final payment of a nominated sub con before practical

• Release for Retentions (cont’d…)

Sample of Private Project SAIDIN UKUR BAHAN SDN. BHD. (440419-K)

C o ntra c t s um R M 8,214,188.85 P re vio us ly c e rtifie d R M 5,723,615.56

P re vio us re le a s e s to no m ina te d s ub-c o ntra c to r's RM

P a rtia l re le a s e o f re te ntio n o n pra c tic a l c o m ple tio n unde r C la us e 30.5 (iii) RM RM

Ne t re te ntio n a s s ho wn in va lua tio n R M 410,709.44

S igna ture Qua ntity S urve yo r

Sample of Government Project PERAKUAN BAYARAN INTERIM NO : 3

MAJLIS PERBANDARAN KULAI (MPKu)

Jumlah Potongan RM 51,048.73 RM 51,048.73

BAYARAN DIPERAKUKAN RM 489,512.69

1 Jumlah amaun yang dibayar dibawah Perakuan ini ialah

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