Professional practice final notes

QS DUTY & SERVICES

In the context of construction projects, the pre-contract stage refers to the period before the contract for construction is
awarded and signed. This stage involves various activities such as feasibility studies, design development, cost planning, and
tendering. The main goal of the pre-contract stage is to prepare the project for construction, and to ensure that the design,
cost, and procurement strategies are aligned with the client's objectives.

On the other hand, the post-contract stage refers to the period after the construction contract has been awarded and signed.
This stage involves the management and administration of the construction contract, including the monitoring of
construction progress, ensuring compliance with contract requirements, managing changes to the project scope, and
assessing and certifying payments to the contractor.

The main differences between the pre-contract and post-contract stages are their focus and objectives. In the pre-contract
stage, the focus is on preparing the project for construction by developing the design, determining the cost, and selecting
the contractor through a tendering process. In contrast, the post-contract stage focuses on the management and
administration of the construction contract, ensuring that the construction is completed in accordance with the agreed-upon
specifications, budget, and schedule.

Another key difference is that the pre-contract stage is typically led by the design team, including architects, engineers, and
quantity surveyors, while the post-contract stage is led by the project manager, who oversees the construction process and
ensures that the construction work is completed according to the contract requirements.

PRE- CONTRACT STAGE: (period before contract is awarded, prepare project for construction)

• Conducting feasibility studies: QSs conduct feasibility studies to determine the viability of a
construction project. This involves analyzing various factors such as location, site conditions,
planning permission requirements, and environmental impact assessments. QSs provide
advice on the feasibility of the project and the potential costs and risks involved.
• Providing cost planning and estimating services: QSs prepare cost plans and estimates to
determine the overall cost of the construction project. This involves analyzing the project's
design and specifications, preparing a bill of quantities, and pricing the various elements of
the project. QSs use their expertise and knowledge of market rates to provide clients with
accurate cost estimates.
• Preparing tender documents and contract specifications: QSs prepare tender documents and
contract specifications that describe the requirements for the project. This includes
identifying the scope of work, the terms and conditions of the contract, and the payment
terms. QSs ensure that the tender documents and contract specifications comply with the
client's requirements and the relevant laws and regulations.
• Advising clients on the most appropriate procurement method and contract type: QSs advise
clients on the most appropriate procurement method and contract type for the project. This
may include traditional procurement, design and build, management contracting, or
construction management. QSs provide guidance on the advantages and disadvantages of
each procurement method and contract type and help clients make informed decisions.
• Evaluating tenders and assisting in contractor selection: QSs evaluate tenders submitted by
contractors and assist clients in selecting the most appropriate contractor. This involves
analyzing the tender documents, assessing the contractor's technical and financial capabilities,
and negotiating with the contractor on behalf of the client. QSs help clients choose the most
suitable contractor based on factors such as price, quality, and schedule.
Pre-contract stage:

• Prepare cost estimates & cost plan

o QS prepare cost estimate of proposed project & prepare cost plan to determine
overall cost of the project
o Includes analyzing drawing and specifications, preparing BQ, pricing various element
of the project
o QS use their expertise and knowledge of market rates to provide client an accurate
estimate
• Prepare tender document and contract specifications
o prepare tender document and contract specifications that describe project
requirements
o this includes identifying scope of work, terms and condition of the contract,
payment terms
o QS ensure tender documents & contract specifications comply with client’s
requirements, and relevant laws and regulations
• Advice client on most suitable procurement route
o QS advice client on most suitable procurement routes.
o Traditional procurement, design n build, construction management, management
contracting
o QS analyze the advantages and disadvantages of each procurement route, then
advice client on suitability of each route, and help client make informed decisions
• Evaluate tender submission
o QS evaluate tenders submitted by contractors and assist client in choosing the most
suitable contractor
o This involves analysing the contractor’s financial and technical capabilities, and
negotiates with contractor on behalf of client
o QS help client to choose most suitable contractor based on factors such as price,
quality and schedule

POST-CONTRACT STAGE: (period after contract is awarded & signed, construction starts)

• Preparing and agreeing on interim valuations and final accounts:

o QSs prepare interim valuations and final accounts to determine the value of the
construction work completed.
o This involves measuring and assessing the progress of the work, verifying the
quantities of materials used, and ensuring compliance with the contract terms and
specifications.
o QSs also negotiate with contractors on behalf of the client to ensure that the final
account is settled fairly and accurately.
• Managing the project cost and ensuring that it remains within the agreed budget:
o QSs manage the project cost by monitoring and controlling project expenditures.
o This involves tracking the actual costs incurred against the budget, identifying areas
where costs can be reduced, and preparing cost reports for the client.
o QSs help clients manage their budgets effectively by providing value engineering
services and recommending cost-saving measures.
• Assessing and certifying payments due to contractors and sub-contractors:
 o QSs assess and certify payments due to contractors and sub-contractors based on the
progress of the work and compliance with the contract terms and specifications.
o This involves verifying the quantities of work completed, assessing the value of the
work completed, and certifying payment requests.
• Assisting in the resolution of disputes and claims that may arise during the construction
process:
o QSs assist in the resolution of disputes and claims that may arise during the
construction process.
o This involves analyzing the contractual obligations of the parties involved, assessing
the extent of the claim, and negotiating a settlement.
o QSs also assist clients in preparing and defending claims and managing project risks
related to claims.

Prepare interim payments and final account

• QS prepare interim payments and final account to determine value of completed works
• This is done by measuring and assessing the work progress, quantities of materials used and
ensuring compliance with contract specification
• Qs negotiaties on behalf of client with contractor to ensure final account is settled accurately

Manage project cost and ensure it is within budget

• Qs manage project cost by monitoring and controlling the project expenditure

• This includes tracking actual costs incurred, and identify where costs can be reduced
• Qs help clients manage their budget effectively by providing value engineering and
recommend cost-saving measures

Assist in dispute resolution and claims

• This involves analyzing contractual obligations of the parties involved, assessing extent of
claim and negotiating a settlement
• QS assist client in preparing and defending claims and manage project risks related to claims

Factors affecting choice of procurement routes

1. Project characteristics: such as technical complexity & its likely influence on possible cost and
time overruns
a. The complexity of the project is an important factor that should be considered when
selecting a procurement route. Complex projects may require a more collaborative
approach, with early involvement from the contractor, while less complex projects
may be suitable for more traditional procurement methods.
2. Timing: including whether or not the project is to be delivered in whole/ in a phased handover
and the impact of late handover on the client’s business
3. Quality and performance: focus on the need to ensure the building provides the required
functionality and is not over/under specified
4. Client resources: experience and knowledge of the people within the client organization who
will be interacting with the project. This includes the ability to manage the project effectively
and make informed decisions throughout its lifecycle.
 5. Risk management: risk should be distributed to those organizations who are able to manage
it best so excessive cost can be avoided. The procurement route should take into account the
level of risk and the ability of the parties involved to manage it.
6. Cost issues: the level of cost certainty required at each stage of project progression. Some
procurement methods offer greater cost certainty, while others may offer more flexibility but
less certainty.
7. The need to accommodate changes: the extent to which the client is willing to exchange cost
certainty for the ability to continue to accommodate changes in later project stages. This may
involve selecting a procurement route that allows for more flexibility and change
management.
8. Factors outside the control of project team: e.g. inflation of material prices and the availability
of skilled labour are examples of external factors that can impact the choice of procurement
route. These factors need to be monitored and considered throughout the project lifecycle.

QS professional bodies
1. Royal Institution of Charted Surveyor (RICS)
2. Board of Quantity Surveying (BQSM)
o Maintaining a Register of Quantity Surveyors: BQSM keeps and maintains a register
of quantity surveyors who are qualified and registered to practice in Malaysia.
o Approving or rejecting applications for registration: BQSM evaluates and approves or
rejects applications for registration or approval to practice under the Quantity
Surveyors Act 1967.
o Imposing disciplinary actions: BQSM has the power to order the issuance of a written
warning, the imposition of a fine, suspension, cancellation, removal or reinstatement
in accordance with Part III and IV Quantity Surveyors Act.
o Hearing and determining disputes: BQSM have the power to hear and determine
disputes relating to professional conduct or ethics of registered, registered graduate,
or temporary registered Quantity Surveyors or to appoint a committee or arbitrator
or arbitrators to hear and determine such disputes.
3. Royal Institution Of Surveyors Malaysia (RISM)
o Recognizing surveying profession: RISM aims to recognize the surveying profession as
an innovative and dynamic world-class professional surveying institution,
representing the highest standards of professionalism and ethics.
o Providing quality services: RISM strives to provide quality, value-added and
comprehensive services to its members and the public, including training and
development programs, research and development, networking opportunities, and
industry advocacy.

Contractual arrangement types

Content
Lump sum - contractor agrees to complete the
contract entire project for a fixed price
- characterized by minimal
flexibility, as changes in design or
deviation from the original plans
Adv:
to client:
- knows exactly how much
the work will cost in advance
- easier to budget and plan,
reducing their financial risk
Disadv
To client:
- Limited flexibility: Once the
contract is signed, it can be
difficult to make changes to
the scope of work,
specifications, or design
 would require a variation order
paid by the client.
- a full and complete set of
drawings and specifications are
required before the contract is
awarded
Measurement - contractor is paid based on the
contract/ re- actual quantities of work
measurement completed
contract
- work undertaken by contractor
cannot be accurately measured
before tendering
- works is tendered based on
drawings & approximate quantities
- commonly used for civil
engineering and building works,
where it may be difficult to
accurately estimate the amount of
work required
- moderate degree of flexibility, as
changes in design can be
accommodated by adjusting the
unit price
To contractor:
- if final cost is less than
agreed price, they will
benefit from the savings
To client:
- Flexibility in design change
- Time is saved in not
preparing a full bill, as
quantity are only
estimates at tender stage
- only pay for the actual
work completed, reducing
their financial risk
- Allows for a contract to be
signed and work to start on
site when the design is only
in outline form
To contractor:
- have potential for to earn
more profits, especially if
they are able to complete
the work efficiently and
economically
without incurring additional
costs.
- Higher cost: The contractor
will typically include a
premium in the lump sum
price to cover potential risks
and uncertainties, which can
result in a higher cost than
other contract types.
To contractor:
- higher degree of financial
risk, as any additional costs
beyond the agreed price are
their responsibility
- any changes required to the
original plans will be difficult
and costly to make
To client:
- client has to accept the risk
of starting work with no
accurate idea of the total cost
- have to be re-measured
completely as carried out,
which may prove more costly
than preparing a BQ in the
first instance
- There may be a greater
administrative burden on the
client, as they must keep
accurate records of the
quantities of work completed.
To contractor:
- if the actual cost of the
project is underestimated,
their profit will be reduced by
that amount
- measurement contracts can
be more prone to disputes
than lump sum contracts. This
is because there may be
disagreements between the
contractor and the client over

Cost - client reimburse the contractor
reimbursable for actual costs incurred in carrying
contract/ cost out the work, plus an additional fee
plus contract for profit
- fee is usually a percentage of the
total cost or a fixed fee.
- offers a high degree of flexibility,
as changes in design can be easily
accommodated by adjusting the
scope of work and the associated
costs
- Variants:
1. cost plus percentage fee
2. cost plus fixed fee
Target cost - client sets a target cost for the
contract project, and the contractor is
responsible for managing the
project within that cost
- If the actual cost is more/less
than the target cost, the additional
cost/savings are shared between
the client and contractor, up to a
certain point.
- This type of contract offers a
moderate degree of flexibility, as
changes in design can be
accommodated by adjusting the
scope of work and the associated
costs.
- Besides, they can work together
to manage the project within the
To client:
- provide extreme flexibility
in decision making process,
which allows high level of
client involvement
- The client has a greater
degree of control over the
project and the costs
associated with it because
they can monitor the
expenses closely.
- can start project without
finishing design
To contractor:
- they are not responsible for
any financial risk, as all costs
are reimbursed.
To client:
- offer the client a level of
cost certainty, as the final
cost of the project is known
in advance
- This can help to prevent
cost overruns and ensure
that the project is delivered
within budget.
- offers flexibility to both the
client and the contractor, as
they can work together to
manage the project within
the agreed cost, while still
achieving the desired
outcome
To contractor:
the quantity of work done or
the measurement of materials
used.
To client:
- client might need to take on
more risks and will benefit or
be impacted depending on
changes in the final cost
estimate, as they are directly
reimbursing the contractor's
expenses
- has to provide close
supervision to ensure that the
contractor is spending money
appropriately and not taking
advantage of the arrangement
To contractor:
- contractor is required to
provide detailed financial
reports to the client to
support their expenses, which
can be time-consuming and
complex, and be burdensome
for smaller contractors.
- no incentives for early finish
To client:
- risk is higher on the client’s
side as target cost contracts
can transfer risk from the
contractor to the client, as the
client is responsible for setting
the target cost and any cost
overruns.
To contractor:
- can be uncertain as the final
cost is not known until the end
of the project.
- This can make it difficult for
contractors to plan their
resources and schedule their
work.
 agreed cost, while still achieving - risk of cost overrun is
the desired outcome. shared between client and
contractor.

This can be an advantage for

contractors who may not
have the financial resources
to bear the entire risk
themselves

Procurement routes
Traditional procurement

• client hiring a separate design team and contractor to design and construct the project
• design team is responsible for preparing the design, obtaining all necessary approvals and cost
controls
• construction team is responsible for carrying out the construction works. The contractor is
responsible for the quality of workmanship, materials, and any work carried out by suppliers
and subcontractors.
• The client engages consultants to create a detailed design for the project
• In traditional procurement, a lump sum contract is typically used. This involves agreeing to a
single price for the entire project before work begins, with payments made in stages as
construction progresses.

Design and build procurement

 • client appointing a single contractor who takes charge of both designing and building the
project, giving them control over the project's timeline and overall design.
• The contractor works closely with the client to develop the project design, ensuring that it
meets the client's specifications and budget.
• One of the advantages of this contract is that construction can start soon after the contract
award, even before all the detailed design are completed. This results in fewer conflicts and
more efficient management of design-related problems because the contractor is responsible
for both the design and construction work, reducing the risk of design-construction interface
issues and reducing the overall project timeline
• Besides, this procurement method can be faster and more efficient than traditional
procurement methods.
• However, it is difficult to compare tenders from different contractors. Because each
contractor is responsible for the design as well as the construction, it can be challenging to
compare the design proposals and cost estimates from different bidders. This can lead to
difficulty in selecting the most suitable contractor for the project.

Construction Management

• client hires a construction manager to oversee the entire construction process

 • The construction manager acts as a consultant to the owner and manages the project on
behalf of the owner
• The client contracts directly with the trade contractors and suppliers, and the construction
manager provides input on the selection of these entities.
• Unlike the traditional procurement route, the construction manager is appointed before the
design is completed, and they work collaboratively with the design team to develop the
project design and manage the construction process.
• They are typically paid a fee or a percentage of the project cost.
• allows the client to have more control over the project. Because the client enters into separate
contracts with the contractors and suppliers, they have greater control over the selection of
these parties and can ensure that they are qualified and experienced.
• Because the client is responsible for managing multiple contracts, they must be prepared to
dedicate more time and resources to the project.

Management Contracting

• Client contract with a management contractor who is responsible for the overall management
of the project
• The client is responsible for providing the design and financing, while the management
contractor provides input on the construction process
• the management contractor hires and manages the trade contractors and suppliers directly,
who will carry out the construction work.
• Management contractor will not carry out construction work
• The client retains overall control of the project and makes the final decisions regarding design
and construction but relies on the management contractor to provide expert advice and for
hiring designers and subcontractors, and managing the overall construction process.
• Furthermore, this procurement route may lead to a reduction in construction cost as the
management contractor is appointed early in the project, allowing them to provide input
during the design stage which lead to improved buildability. The use of specialist
subcontractors for the construction works allows for competitive pricing and can result in cost
savings for the client.
 • cost of the works may be difficult to predict as the management contractor is only responsible
for managing the works, not carrying them out.

TENDERING PROCESS

Stage 1: PREPARATION

• project is initiated and the client establishes the scope of work, specifications, and project
requirements
• client also identifies the budget, procurement method, and tendering strategies.
• This stage involves the client, consultant, and project manager who discuss and make
decisions on the type of contractual arrangement and tendering strategies to be used.
• Three tendering strategies are available: open tendering, selective tendering, and negotiated
tendering.

Stage 2: APPROVAL TO TENDER

• tender that was prepared in Stage 1 is reviewed and approved by the client. If selective
tendering is chosen, the employer may also develop a list of potential tenderers who will be
invited to submit their bids.

Stage 3: DOCUMENTATION

• involves the preparation of tender documentation, which begins once the tender is approved.
• The parties involved include the architect, engineer, QS, client, and project manager.
• The conditions of the contract are chosen, and tender table documents are prepared.
o The purpose of the tender table documents is to make the tender documents more
manageable, ensuring that tenderers receive only relevant and essential information.
 This eases logistical burden on the employer's tendering team, especially for large and
complex projects involving extensive documentation and a number of tenderers.
• A typical tender document includes a letter of invitation, checklist for submission of tender,
instruction to tenderer, articles of agreement, conditions of contract, form of tender, tender
specifications, bills of quantities, tender drawings, sample copy of letter of acceptance,
sample copy of bank guarantee for performance bond, schedule of day work rates, and sample
copy bank guarantee for advance payment.
• The type of procurement route chosen by the client also affects the tender documentation,
with the:
o contract based on quantities used for traditional procurement
o contract based on tender and specifications used for the design and build approach.

Stage 4: INVITATION & ISSUING TENDER DOCUMENTS

• suitable tenderers are invited to submit their tender based on the employer's requirements,
as outlined in the tender document.
• The invitation is determined by:
o selection of tendering methods, including open, selective, or negotiated tendering
o project type, larger contracts often require advertising through an open tender.
• The number of firms invited will depend on the contract's size and type.
• Before issuing the invitation to tender:
o necessary tender documents must be prepared & approved,
o procedures for the various stages must be established,
o identifying funding sources.
• Tender advertisement/notice is used to describe the job being tendered and may be
distributed through various methods such as flyers, newspaper ads, internet posting, or
advertising firms.
• Contractors must meet certain conditions before they receive the tender documents from
client’s QS:
o Tenderer’s necessary registration
o Payment for documentation fees
o Fulfillment of any site visit requirements
• The tendering period:
o begins from the collection of tender documents by the tenderers to the submission
of tender documents.
o allows contractors prepare their tenders for submission

Stage 5: TENDER SUBMISSION

• This stage involves submission of tenders by invited tenderers, which includes their proposed
price for supplying the goods or services and their proposals for satisfying the client's
requirements.
• The tenders are submitted in a tender box at the client's office.
• Tender opening is an event where all the submitted tenders are opened and recorded in a
private and secure area in the client's office.
 • Prior to the tender opening, a Tender Opening Committee must be formed, and the Tender
Opening Form must be prepared and signed by all present, including committee members and
representatives of tenderers.
• In public sector, the tenders should not be opened before the prescribed day and time, and
the task is usually passed to designated officers by public authorities.
• In the private sector, the employer, architect, and QS may oversee the opening of tenders.
Tenders should be opened immediately after the deadline for receipt of tenders, and must be
opened in public, with the tenderer's names, tender prices and total amount of each tender,
any discounts, and tender security read out loudly.

Stage 6: TENDER EVALUATION

• Tender evaluation process must be done during tender validity period (min 90 days from the
date of tender closed)
• Evaluation should be conducted in a secure and confidential area, and the length of the
evaluation period can vary between one to four weeks, as long as the tender can be awarded
within the validity period.
• A Tender Evaluation Committee must be established before the start of the evaluation, and
only members of this committee should have access to the opened tenders during the
evaluation period.
• Prior to the start of evaluation, both a Tender Evaluation Criteria and a Tender Evaluation
Framework must be prepared and approved.
• The evaluation of tenders involves several activities:
o EXAMINATION OF GENERAL REQUIREMENTS
▪ tenderer comply with conditions,
▪ tenderers registered with relevant authorities, e.g. CIDB
▪ signed tender
▪ have all documents required
o EXAMINATION OF PRICED BILLS
▪ To detect any errors in computation of tender
▪ Check all details in BQ
o ADJUSTMENT OF PRICED BILLS
▪ When there are errors in contractor’s priced bills, contractor can choose to
withdraw/correct the errors
▪ The decision must be communicated to tenderers in formal invitation of
tender & form of tender
o EVALUATION OF TECHNICAL CAPABILITIES
▪ To examine tenderer’s work experiences, performance record, list of
ongoing project, machineries owned/rent
o EVALUATION OF FINANCIAL CAPABILITIES
▪ To check tenderer’s financial statement, net worth, credit services, worth of
unfinished job in hand, rolling capital

Stage 7: AWARD CONTRACT

• During the contract awarding stage, the client will review the tender report and the
recommendation made by the evaluation team.
• Typically, the evaluation team will present their findings to the clients.
• The client will then decide which contractor to appoint for the job.
 • For service and consulting contracts, a Letter of Acceptance may be used to notify successful
bidders of contract awards.
o This letter is a formal acceptance of an offer and constitutes a legal agreement or
contract.
o Its purpose is to allow the contractor to commence work before a formal contract is
issued. The contractor can pre-order material, assign resources, or obtain bonding or
proof of insurance.
• The successful bidder may also receive a formal contract that incorporates the terms
described in the tender for execution.

SITE POSSESSION

Primary objectives of administration:

1. Ensure contractor & employer fulfil obligations under contract

2. Ensure employer fulfil local authority requirements
3. Ensure employer’s position adequately protected against various claims
4. Ensure obligations of contract administrator under contract adequately fulfilled
5. Ensure works satisfactorily completed with original contract period & price

Time-related issues in contract administration:

1. Site possession
2. Practical completion
3. Sectional & partial completion
4. EOT

• Possession of the site should take place no later than two months after the contractor
has been awarded the contract.
• If the contract does not specify a commencement provision, the contractor must be
given possession in a manner that allows them to complete the work by the completion
date.
• However, there are certain provisions that allow the employer to defer the possession
date by up to six weeks if specified in the Appendix.

Client’s role in giving site possession:

• The duty of giving possession of the site to the contractor is an implied duty under the
common law, which is one of the employer's duties to cooperate with the contractor.
• This is because construction sites generally belong to employers and contractors
cannot simply enter the sites without employers’ permission.
• There are many legal implications if a contractor enters the site and carries out the
work without the employer’s permission.
 • Standard forms of construction contracts usually have an express provision requiring
the employer to give site possession to the contractor.
• If the employer fails to do so, it may result in legal implications, and the contractor may
claim for direct loss and expenses.

This duty of giving possession of site must be examined together with other term/clauses in
construction contracts:
• The contractor’s duty to carry out the work ‘regularly and diligently’
• The employer’s right to postpone the work;
• Extension of time;
• Liquidated and ascertained damages
• The contractor’s claim for direct loss and expense
The general principles of site possession outlined above pertain to the contractual obligations of
employers and contractors in relation to the possession of the construction site.

1. Date of Giving Possession

• The date for giving possession of the site is typically set by the employer in the letter of
award. If the date is not specified, the employer must provide possession within a
reasonable time to enable the contractor to complete the work on or before the
completion date. Failure to do so may result in the employer losing the right to claim
liquidated damages for late completion.
2. Failure to give possession
• Generally, it is the employer’s fundamental duty to give the contractor possession of the
site on the date specified in the contract. If the employer refuses to provide possession of
the site, it constitutes a breach of contract, and the employer may be liable to pay
damages for the breach.
3. Delay in giving possession of site
• In case of a mere delay in giving possession, the contractor not entitled to terminate the
contract. However, delay in giving possession of the site is a breach of contract that
entitles the contractor to an extension of time and direct loss and expense. The employer
may grant the contractor an extension of time, provided that the delay for giving
possession of the site is listed in the ‘relevant events’ sub-clause.
• If there is no express provision in the ‘relevant events’ clause, the employer cannot grant
an extension of time, resulting in ‘time at large,’ and the employer may not claim
liquidated damages for delay. Delay in giving possession of the site can cause various
consequences, including delayed commencement of work, increased costs, disruption of
 the contractor’s program and work schedule, and delay in the procurement of materials
and equipment.

*'Time at large' means there is no date fixed for completing the building works or time period
set out for completing the works, or such times and dates as agreed no longer apply.
EXTENSION OF TIME
• Extension of Time (EOT) is a provision in a construction contract that allows the contractor to request additional
time to complete the work beyond the originally agreed-upon completion date.
• This extension is typically granted when unforeseen circumstances arise, such as delays caused by adverse
weather conditions, changes in the scope of work, or delays caused by third parties.
• If the contractor is granted an EOT, they are relieved from any liability for liquidated damages that may have
been specified in the contract. Liquidated damages are predetermined amounts of money that the contractor
must pay to the employer for each day that the work is delayed beyond the completion date.
• If the contractor fails to complete the work within the specified time frame without a valid reason, it is considered
a breach of contract, and the employer have the right to terminate the contract.
• Standard forms of contract typically contain express clauses that entitle the employer to claim liquidated
damages in the event of delays caused by the contractor. However, if the delays are caused by events beyond
the contractor's control, such as unforeseeable events, the contractor is entitled to an EOT and/or a claim for
direct loss and expense.
• The clauses in the contract also outline the conditions and procedures for the application and grant of an EOT,
including the requirements for submitting a notice of delay and supporting documentation.

Timelines CLAUSES effecting EOT

• Duration of the construction works
• Date of commencement (giving possession of site)
• Date of completion or completion of sections
• Compliance with contract administrator’s instructions
• Contract administrator’s duty to supply information and drawings
• Notices
• Certificate of Non-Completion
• Failure to comply with timelines has the corresponding legal consequences.

Purpose of extension of time

• To enable the employer to fix a new date for completion of works under the contract
• To retain as far as practicable a time or date of completion for contractor to work towards
• To preserve the employer’s rights pertaining to the imposition of liquidated and ascertained
damages
• To give contractor reasonable relief from his strict duty to complete on time in respect of
certain designated ‘neutral’ events
Effects of the absence of the EOT provisions

• Times becomes at large due to the employer’s act of avoidance; there is no specific date for
the completion of the contract and for the contractor to work to
• The contractor’s obligation then becomes merely to complete within a ‘reasonable time’
(fulfils his obligation despite prolong delay, not acted negligently/unreasonably)
• The contractor’s liability is then only for general damages but first it must proved that the
contractor has failed to complete within reasonable time

Common relevant events

• Force majeure
• Exceptionally inclement weather
• Direction given by the S.O. consequential upon disputes with neighbouring owners
• Loss or damage to the works caused by fire. Lightning, explosion or storm
• S.O. instruction issued in respect of variation discrepancies in or between contract documents
etc.
• The contractor not having received in due time necessary instruction
• Delay in giving possession of the site
• Delay caused by local combination of workmen, strike or lockout
PRACTICE

Responsibilities of QS

Post contract stage:

• Prepare interim payments & final account

• Manage project cost and ensure it is within budget
• Assist in dispute resolution & claims that may arise during construction process

Tendering process

1. Preparation
a. Client initiates the process by stating his requirement for proposed project &
specifications & establishing scope of work
b. Client identify budget, procurement route, tendering strategies
c. This stage involves client, consultant, project manager to discuss and make decision
on procurement route & tendering strategies
d. 3 tendering strategies: open tendering, selective tendering, negotiated tendering
2. Tender approval
a. The tender prepared in previous stage is approved by client. If selective tendering is
selected, client prepare a list of potential contractors to be invited for bidding
3. Documentation
a. This stage involves preparing documentation for tendering, the process may begin
right after tender is approved
b. Conditions of contract are chosen & tender table documents are prepared & its
purpose is to ensure tenderer receives only relevant and essential documents. It also
eases the logistical burden on client’s tendering team, especially when the project size
is large and requires complex documentation
c. A typical tender document may include documents such as invitation to tender,
checklist for submission of tender documents, form of tender, tender specification,
BQ, sample copy of performance bond and more.
d. The type of tender document also depends on the chosen procurement route, for
example contract based on tender & specifications are for design and build approach,
while contract based on quantities is for traditional procurement
4. Invitation & issuing the tender document
a. Suitable tenderers are invited to tender
b. Prior to invitation to tender, it is essential to ensure the necessary tendering
documents are prepared & approved, procedures for various stages are established
and funding sources are identified
c. Tender advertisement/notice is used to describe job scope, they are distributed
through flyers, newspaper ads, internet posting, advertising firms
d. Before the tenderer receive tender documents from the client’s QS, they must meet
certain pre-conditions, for example the tenderer’s necessary registration with client’s
QS, payment for documentation fees are made, and fulfil any site visit requirements
e. The tendering period starts from collection of the tender documents to submission
date of tender document, this period allows tenderers to prepare their tender
5. Tender submission
a. Invited tenderers submit their tender, which includes proposed price for supplying
goods and services, and the proposal to satisfy client’s requirements
b. The tenders are submitted at a tender box at client’s office
c. Tender opening is an event where the submitted tender is opened and recorded at a
private and secure area in client’s office
d. Prior to the tender opening, a Tender Opening Committee must be formed, and
Tender Opening Form must be signed by all present, including all committees, and
tenderer’s representatives
e. In private sector, the tenders submitted must be opened, client, architect, QS may
oversee the process
f. Tender should be opened immediately after deadline of tender submission, must be
opened in public, with tenderer’s names, tender price, any discount, tender security
read out loudly
6. Tender evaluation
a. Evaluation must be conducted within tender validity period, normally 90 days from
date of tender closed
b. Tender Evaluation Committee is formed, and only them has access to opened tender
c. Prior to tender evaluation, Tender Evaluation Criteria & Tender Evaluation Framework
must be prepared
d. The process consists of several activities:
i. Evaluation of general requirements, where the tenders submitted are check
to ensure they meet the conditions, tenderers are checked to ensure they are
registered with relevant authorities, such as CIDB, signed tender, have all
documents required
ii. Evaluation of priced bills, where they check the details of BQ, and detect any
errors in computation of tender
iii. Evaluation of technical capabilities, where they evaluate the tenderer’s work
experience, list of ongoing project, performance record, owned/rented
machineries
iv. Evaluation of financial capabilities, where the financial statement, credit
services, rolling capital of tenderers are evaluated
7. Tender award
a. Client review the tender report and recommendations by evaluation team
b. The evaluation team present their findings to client
c. Client select the tenderer to be awarded the contract
d. A letter of acceptance is sent to the winning tenderer to notify them , which is a formal
acceptance of an offer, allows contractor to commence work before a formal contract
is issued, the contractor can pre-order materials, assign resources.
Site possession

Date of site possession

• Site possession should take place no longer than 2 months after contractor is awarded the
contract
• The date of possession is normally stated in the contract. If it is not stated, the client should
give the site possession to contractor in a way that there is a reasonable time for contractor
to complete the work before completion date. Failure to do so may cause client losing the
right to claim for liquidated damages for late completion
• The duty of giving site possession to contractor is an implied duty of employer under
common law
• Standard forms of contract usually has express provision requiring employer to give site
possession to contractor
• This is because the site belongs to employer, and the contractor do not have rights to enter
the site without permission
• There will be legal implication of contractor enter the site to carry out works without
employer’s permission

Failure to give possession

• It is a fundamental duty of the client to give site possession to contractor on date specified
in the contract.
• If client refuses to provide site possession, it is considered as a breach of contract, and the
employer is liable to pay damages for the breach
• contractor is entitled to claim for loss and expenses

Delay in giving possession

• in case of a mere delay in giving site possession, the contractor is not entitled to terminate
the contract,
• however, delay in giving site possession is a breach of contract that entitles contractor to
claim for EOT & loss and expense,
• the employer may grant contractor EOT, as long as the delay for giving site possession is
listed in the ‘relevant event’ sub-clause.
• If there is no express provision in the ‘relevant event’ clause, employer cannot grant EOT,
resulting in ‘time at large’, meaning that there is no fixed date for completion of works, and
employer cannot claim for liquidated damages for delay
• Delay in giving site possession may result in increase cost, delay commencement of work
etc., disruption in contractor’s work schedule

Extension of time (EOT)

• EOT is a provision in construction contract which allows contractor to request for additional
time to complete their works beyond the agreed completion date
 • EOT is typically granted due to unforeseen circumstances such as adverse weather
conditions, delay caused by third parties, changes in scope of works
• Contractors are relieved from their liability of liquidated damages when they are granted
EOT. Liquidated damages are predetermined amount of money that contractor must pay to
employer each day the work is delayed beyond completion date
• If contractors fails to complete work within completion date without a valid reason, this is
considered a breach of contract, employer is entitled to terminate the contract
• Standard form of contract contain express clauses that employer can claim liquidated
damages for delays caused by contractor
• If the delay occurs due to reason beyond the contractor’s control, they are entitled to claim
for EOT & loss and expenses

Procurement routes

A. Traditional procurement
1. Clients develops project brief and budget for proposed project
2. Client hires consultants & contractor separately
3. Consultant is responsible for preparing design & tender documents & administer
project on behalf of client. He advises on aspects associated with design, progress &
interim payments which must be paid by clients
4. Contractor construct works according to design for the agreed price.
5. Most of the works is subcontracted to specialist firms but the contractor remains
liable
6. Advantages: low tender preparation costs, procedures well known by industry
players, low risk on cost & design, provides cost certainty
7. Disadvantages: can only start work after design is fully completed (slow to start on
site), contractor not involved in design/planning stage, client responsible for design
risk
8. Not suitable for fast track project
B. Design & build
1. Client appointing a single contractor responsible for both design & construction, the
contractor either use in-house designers/employ consultants for design works
2. Contractor develops design according to client’s requirements
3. Tender list will probably shorter than for traditional contracts
4. Subcontractors carry out most construction work
5. Advantages:
i. total project duration reduced compared to traditional procurement
ii. Client establishes single point of contract with contractor, which eases the
communication process and helps client stay organized
iii. Low time & cost risk
iv. Suitable for fast track project
6. Disadvantages:
i. Difficult to compare between different bids as the designs are inconsistent
ii. changes during design by client can be expensive as they affects the whole
contract
iii. difficult for client to prepare adequate project brief
iv. not suitable for complex buildings
 C. Construction management
1. Client enter contract directly with contractor
2. Client enter contract independently with numerous specialist contractors, rather
than only with a main contractor. This provides client more control with the project
3. Client hires construction manager to provide advice & the CM is paid a fee or
percentage of the project cost
4. Construction manager manages the project on behalf of client
5. Only suitable for experienced clients as it requires constant involvement of client
6. Suitable for complex projects & fast track projects
7. Advantages: design & construction starts concurrently, time saving potential in
overall project duration, clarity of roles for all participants, late changes can be easily
accommodated, process shorter than traditional/design & build procurement
8. Disadvantages: client must take active role in project, requires good quality brief,
relies on good quality project team, needs effective control of time & information
D. Management contracting
1. Client hires a management contractor and consultant separately
2. MC is appointed earlier to work alongside with design team & contribute to design &
costing of the works
3. MC programmes packages & obtain tenders for the works
4. Adjustment are made to design & specification work packages later in the
programme
5. MC is paid a fee for managing the construction works
6. MC enter contract with subcontractor & specialist which carry out the construction
works
7. MC oversee the entire construction process on behalf of the client, but he does not
carry out construction work
8. Suitable for complex projects & fast track projects
9. Advantages: design & construction starts concurrently, time saving potential in
overall project duration, clarity of roles for all participants, late changes can be easily
accommodated, process shorter than traditional/design & build procurement
10. Disadvantages: client must take active role in project, requires good quality brief,
relies on good quality project team, needs effective control of time & information

Procurement routes

1. Traditional procurement
a. Client hires contractor & consultant separately
b. Client establish project requirements & budget
c. Consultant are responsible for the design, tender documents and administration
work on behalf of client
d. Contractor is responsible for carrying out the works for agreed price
e. Contractor hires specialist contractor to carry out some works, but he is still liable
under contract
f. Advantages: the tender cost is low, procedure is well known by industry players, cost
certainty
 g. Disadvantages: low flexibility, changes have to be made through variation order
which will be fully paid by client, slow to start on site, requires full and complete
design before tender stage
2. Design & build procurement
a. Client hires consultants
b. Client hire a single contractor which will be responsible for both the design &
construction works
c. Contractor develops design according to clients requirement, either use in-house
design or hire outside designers
d. Contractor hires subcontractor to carry out most works
e. Advantages: can start on site even when detailed design is not completed, single
point of contract with contractor, minimize miscommunications & help client stay
organized, suitable for fast track projects
f. Disadvantages: difficult to compare between different tenders due to inconsistency
of design, client has less control on project, not suitable for complex projects,
difficult for client to produce adequate project brief
3. Construction management
a. Client enters contract with contractor directly
b. Client enters contract with numerous specialist contractors independently. This
provides client with more control over the project
c. Construction manager is hired by client to manage the project and is paid a fee/a
percentage of the total project cost
d. Only suitable for experienced client as it requires constant involvement of client
e. CM provide advice on the design
f. Contractor carry out work according to design
g. Suitable for complex/fast track project
h. Advantages: construction can be started after design brief is produced, client has
more control on the project, process is shorter than traditional & design and build,
clarity on role of each participants, late changes can be accommodated easily
i. Disadvantages: requires good quality project brief, good quality project team, good
control on time and cost, client must take active role in project
4. Management contracting
a. Client hires consultant & management contractor separately
b. Management contractor is hired by client to manage the project and is paid a fee/a
percentage of the total project cost
c. MC enters the contract early to work alongside with design team & contribute to
design & costing of the project
d. MC program work packages & obtain tender for the works
e. MC enters contract with subcontractors/specialist workers which will carry out the
construction works
f. MC oversees the construction progress but does not carry out works himself
g. Suitable for complex/fast track project
h. Advantages: construction can be started after design brief is produced, client has
more control on the project,
i. Disadvantages: requires good quality project brief, good quality project team, good
control on time and cost
j.