Question 1:

Discuss the dilemma engineers face in balancing capital expenditure versus optimum
design for efficient operations and maintenance, bearing in mind the impact of capital
expenditure on the engineer’s fees.

Answer :

Introduction:
Construction world is very competitive now a day. In order to secure a contract at a
competitive price while maintaining the profit margin, contractors have to be very
versatile in design, construction and finance. These will usually achieve by having
optimum design and increase the efficiency of operations and maintenance and
minimized the capital expenditure and shorter the construction period. However, design
calculations alone do not produce optimum design. Suitable materials, quality control and
good supervision are equally important.

Point 1:
In this kind of environment, engineers have great pressure to provide optimum design
with the pre-set cost and capital expenditure. Not only engineers in consultancy, but
engineer in operation, maintenance and planning also facing dilemma in balancing capital
expenditure versus optimum design. As an engineer by profession, optimum design can
be achieved by carefully specified the design specification, criteria and consideration to
satisfy both client and regulatory requirement. Engineers have to be alert on the material
price and standard in the market. Engineers have to have “material marketing” mindset.

Point 2:
Compare with the previous time, design method of today’s engineers have undergone a
paradigm change. Today engineers depend on computer more than their forefathers in
carrying out their daily work. With the aid of sophisticated computer software such as
Orion, Esteem, Staad etc, engineers are able to achieve optimum design by changing in
layout, general arrangement of structural member. Within a short period of time, several
design options can be proposed to the client in order to choose the most practical design
option with consideration of operations and maintenance. However, as computer aided
analysis is becoming an indispensable part of a standard engineering curriculum, this will
need to put in vast and continuing investment in purchasing and updating computer
software. Indirectly, the capital expenditure for the design office will definitely to be
increased. This will directly increase the financial burden to the engineers.

Point 3:
Globalization has shrunk the world to such an extent that markets are no longer localized.
International contractor such as Zublin, Victor Buyck, Hitachi, Daewoo, Bauer,
Marubeni, Ishi Power, ThyssenKrupp and etc. which aboard Malaysia market to compete
with local contractor on project which suppose can be done without foreign technology
such as highway, emporium, condominium and etc. These have promoted more stringent
requirement to local market among clients, contractors and authorities.
Value engineering and alternative design such as prestressing, precast, system formwork
and any other system design which is commonly adopted in foreign country is always
brought out to counter propose conventional design. These have urged the engineers
whose clients are normally local company to pick up new construction method in order to
obtain optimum design by attending seminars, exhibition, talks, forum etc. These will
increase the expenditure of the engineer. Engineers have to be innovative and creative.

Point 4:
In good engineering practice, optimum cost effective should come from material,
workmanship, labour, construction method, machinery, transportation and coordination
etc., but not scarify the design safety factor or good engineering practice. Engineers have
to ensure the safety and health for the public as well as all the construction personnel.
Engineers have to firm on their stand and convince the contractor/developer that the most
effective cost saving is by other method. In fact, a careful design will safe a lot of money
such as reduce rectification, demolish and reconstruct, shorten material lead time,
additional temporary support, propping and access, less storage space, less damage. In
order to achieve that, engineers have to spend more time to find more facts and pass
experience to explain to the client on the merits of above. Indirectly, these will eventually
increase the work load of engineers.

Point 5:
In the context of optimum design, the challenge/dilemma engineers face is not from the
client i.e. developer or contractor, but from other engineers who willing to provide
optimum which is also “daring” design at a much lower fees. This is definitely contrast
with the ethical code of an engineer. Inevitably, the knowledge that engineers posses is
wide, ranging from technical-based to management-oriented subjects. However,
reasonably, engineers’ fees are normally based on percentage and will only become a
small fraction of the overall construction cost. The client should be willing to accept the
scale of fees of the profession but not to add more financial burden to the engineers.
Besides, there should be better awareness and understanding among engineers, not to tout
for works, compete and supplant another engineer by providing optimum and also
“daring” design.

Conclusion:
Engineers not only need to be good in technical design and familiar with construction
setup and sequence, he also need to have a good marketing mindset and smooth public
relation skill in order to convince client that his design is optimum design for efficient
operations and maintenance at the lowest capital expenditure. Facing on the above
mentioned dilemma, engineers should positively scrutinize and evaluate themselves in
management system, culture and attitudes and migrate to a more modern, positive and
dynamic professional.