KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF BUILT ENVIRONMENT

ACADEMIC YEAR 2022/2023

SEPTEMBER/OCTOBER EXAMINATION

MVBE6013 BUILT ASSET PROCUREMENT AND CONTRACTUAL ARRANGEMENT

MONDAY, 26 SEPTEMBER 2022 TIME: 9.00 AM – 11.00 AM (2 HOURS)

MASTER OF SCIENCE IN CONSTRUCTION CONTRACT MANAGEMENT

MASTER OF SCIENCE IN CONSTRUCTION PROJECT MANAGEMENT

Instructions to Candidates:

Section A: Answer all questions.

Section B: Answer only one question

All questions carry equal marks.

This question paper consists of 5 questions on 3 printed pages.

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MVBE6013 BUILT ASSET PROCUREMENT AND CONTRACTUAL ARRANGEMENT

SECTION A: Answer all questions

Question 1

a) “Company A is involved in manufacturing at a single location with a single product, and

Company B is a construction company with several projects. There are similarities and there
are also primary differences between both companies.”

Briefly explain about the statement above and provide examples where possible. (16 marks)

b) Identify THREE (3) difference characteristic between a public and a private client. (9 marks)
[Total: 25 marks]

Question 2

Covid-19 has affected the communities globally and the construction industry especially in Malaysia is
suffering from the effects of operations being shut down during the Movement Control Order. As
Covid-19 has becoming an endemic, the construction industry is confronted with many issues
complying with the new Standard Operating Procedures. What are relevant salient points that are
observed being incorporated by industry players in their services? Elaborate with examples among the
new normal that are currently being practiced in the construction industry that correspond to this
endemic situation. [Total: 25 marks]

Question 3

a) The agreement between Client and Contractor can be arranged at an early stage of the design
process using either Management Contracting or Construction Management procurement
methods. Define the major differences in the performance of both methods. (5 marks)

b) The board of directors of a public listed company has decided to appoint Global Setia Sdn. Bhd.
as the Management Contractor so that their experience can be used to have early completion
for the construction of their corporate office building.

Outline the key features of this procurement method and describe the scope of services that
Global Setia Sdn. Bhd. should cover in the pre-contract and post contract stage. (20 marks)
[Total: 25 marks]

This question paper consists of 5 questions on 3 printed pages.

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MVBE6013 BUILT ASSET PROCUREMENT AND CONTRACTUAL ARRANGEMENT

SECTION B: Answer only one question

Question 4

The Malaysia Government has recognized the need to expand and modernise the country’s
infrastructure. However tight fiscal conditions are preventing them from developing infrastructure at
anything like the level needed, and especially in post Covid-19 economies that are lagging behind.

The suggestion to affiliate with the private sectors was instrumented which could also encourage the
economic situation in the country. Sustaining that performance, however, will depend on the private
sector taking on a much bigger role than it has been playing so far in building and upgrading the
country’s infrastructure.

A public-private partnership (PPP), in principle, represents the strategic synergy between the public and
private sectors that cuts across the entire spectrum of industries and supply-chains. Cooperation and
collaboration between the two are meant to be a win-win situation. The Government is supposed to be
prudent in saving public fund and private expertise involvement can ensure effectiveness in the delivery
system.

As Head of Department, you need to prepare your briefing report to your Managing Director to support
the alliance and to include answers to these arising issues:

a) How is PPP different from privatization? (10 marks)

b) What are the limitations of PPP? (5 marks)

c) What are the consequences of PPP? (10 marks)

[Total: 25 marks]

Question 5

a) As Head of Procurement Department of a prominent property developer, you are instructed by

the management to arrange a proper tendering method in selecting the right Contractor for the
proposed 4-storey shop office building at Puteri Central, Bandar Puteri Puchong.

Bearing in mind that your management is particular on the principles of competitiveness,

transparency and accountability, identify a suitable tendering method in selecting the right
Contractor to construct the project until completion. (16 marks)

b) Contractor prequalification is an information gathering and assessment process. The potential

contractors on projects are audited to assess their prequalification standing before bids are
accepted. Only those contractors that are prequalified will be invited to submit a bid. Describe
the criteria for prequalifying the contractors. (9 marks)
[Total: 25 marks]

This question paper consists of 5 questions on 3 printed pages.