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QUANTITY

SURVEYOR ACT 1967


& QUANTITY
SURVEYOR RULES
2004
YAP ZHI XIN 0314542
YO KAI SEN 0310563

LEGAL CAPACITIES
&
LIABILITIES OF
PARTIES

The Employer/
Client

The Employer / Client


They may be Private, Individual, Partnership, Limited liability company
(Sendirian Berhad), The government / any other incorporated or
unincorporated body
In Join Venture arrangement, acting as the partners or share holders.
The contractor need to be careful on the status of employer as the
contractor has no security in the works if the land is owned by third party.
The formed of company are called as Special Purpose Vehicle (SPV).
-The contractor no security in respect of a claim or the final
account.
Recent Trend, employer assign its interest in the project during the course
of the work, sometimes to more than once. Contractor will have to live with
the consequence of such arrangement.

Contractors /
Sub-Contractors

Contractors/Sub-Cotractors
In traditional contracting system, main contractors are
contracts with the employer while the professional service
who named in main contract are not parties to the contract
but in separate contract of service.
Subsidiary of contractor company who have been awarded the
project may be required to submit a parent company
guarentee.
A contractor limited liability company has no benefit for the
employer to go against the claim that lead to winding-up the
contractor company, even though the shareholders and
director may have personal assets.

The Professional Team

The professional team


Under the contract, Architect or Engineers are given certain
powers and duties which must be carried out as the
construction works proceeds.
The potential liabilities of the professional team members
incurred in relation to construction projects can be covered by
professional indemnity insurance.
Quantity Surveyors (QS) are sometimes known as Claims
consultants or Construction cost consultants as they provide
cost and procurement advice.

The Quantity Surveyors


In building project, cost is important. (site preparation cost,
construction, labor and etc.) The quantity surveyor is trained to
evaluate costs and advise on alternative proposals.
Advises the client on appropriate contract arrangement as well as legal
contract and conditions under which the building will be constructed.
Take a leading managerial role throughout the development of a
project.
Example: able to assess the implications of changes in design, site condition and
working arrangements and give the client accurate budget and time estimates.

May work in variety of areas such as government sectors, private


practice, construction companies, property developers, and etc.

Professional Services
Services provided by professional quantity surveyors:
Preparation of preliminary cost estimates and cost plans of the development project.
Advise on cost estimates in relation to design development of a project.
Advise on procurement, tendering and contractual procedures and arrangement.
Preparation of B.Q or specification document for tendering purposes.
Organize the calling of tenders.
Evaluation of tenders received in the form of tender reports.
Preparation and execution of the formal contract.
Interim valuation of works in progress on site for purposes of interim payments.
Preparation of financial statement of regular intervals during the construction period.
Settlement of the final accounts of the project.

Supplementary Services
Supplementary services provided by quantity surveyor:
Preparation of feasibility studies of a project.
Projection of estimated project or development expenditure and anticipated income cash flows.
Evaluation of contractors registered for prequalification
Comparative cost studies on the economics of the project during design stage.
Project management of construction project.
Life-cycle costing and studies on economics of alternative design.
Pricing of B.Q or negotiating and agreeing schedule of rates.
Valuation or auditing of contractual claims for arbitrations litigation cases.
Valuation or auditing of insurance claims for fire damages buildings.
Auditing of contracts and their related budgets and expenditure.
Application of the full scope of quantity surveying services in Turnkey or Privatisation
Contracts.

Quantity Surveyors
act 1967

Quantity Surveyors act 1967


An Act provide for establishment of the Board of Quantity Surveyors (QS).
The functions of the Board shall be:
Keep and maintain a Register of QS
Approve or reject application for registration or approval to practise as consulting QS
To order the issuance of a written warning or reprimand, the imposition of a fine, suspension, cancellation, removal
or reinstatement of any registered QS
Fees to be charged time to time by registered QS for professional advice or service rendered.
To determine disputes relating to professional conduct.
To act as a stake holder in a contract for QS services.
To determine and regulate the professional conduct.
To hold professional development programs for registered QS
To accredit qualifications and to conduct examination for admission to the profession
To appoint members of board to sit on any board, committee or body formed for purposes relating to the profession.
To provide scholarships and other facilities for the promotion of learning in connection with QS.
To authorise any person to investigate the commission of any offence under this Act

Clause 7 of the QS Act 1967


Clause 7 provides that only registered quantity surveyor with
the BOQS:
Can practise or carry on business or take up employment as QS under
name, style or title containing the words such as Quantity surveyor,
Building Economist, and others.
Use or display any sign, board, card or others to implying that he is
registered QS.
Entitled to recover in any Court fee, charge or other form of
consideration for any professional advice or services.
Identify or describe himself as Registered QS.

Clause 7A of the QS Act


Clause 7A provides for that the Board shall grant its approval
for a firm or a body corporate to practise as consulting QS in
the case of:
Sole proprietorship (registered QS)
Partnership, all the partners are registered QS
Body corporate, has a board of directors comprising persons who are
registered QS, share held by the members of the board of directors.
The minimum paid-up capital which shall be an amount prescibed by
Board.

Rules requires that registered QS shall have a minimum of 5


years of experience

Question
1. If the Employer company (limited liability company) had
gone to winding-up and left nothing, does the contractor has
benefit to go against his claim to the employer for his work
done?

Quantity Surveyors (Amendment)


Rules 2004
In exercise of the powers under Section
26 of the Quantity Surveyors Act 1967
(Act 487)
These rules come into operation on the
31st December 2004

Quantity Surveyors (Amendment)


Rules 2004 (Contd)
Clause 24 (1) The practical experience that a
registered graduate QS is required to apply for
registration as a registered QS as follows:
A) min period of 2 years after registration with the Board as a
registered graduate QS in any departments, authorities,
institutions, firms or bodies corporate approved by the Board.
B) min period of 2 years after registration with the Board as a
registered graduate QS in any firm, body corporate or
organisation having either a partner, director, principal or a
supervisor who is a registered QS.
C) obtain the written approval of the Board to have external
supervisor, who shall be a registered QS to supervise his
practical experience in respect of performing quantity surveying
services to the satisfaction of the external supervisor for min
period of 3 years after registration with the Board as a registered
QS.

Quantity Surveyors (Amendment)


Rules 2004 (Contd)
Clause 24 (3) In order that a registered graduate QS may be
entitled to apply for registration as a registered QS, he shall pass
the Test of Professional Competence or other tests or professional
assessment as conducted or sanctioned by the Board.

Question
What do they normally test in the Test of Professional
Competence (TPC)?
-The minimum period of two years professional experience mentioned above shall include
professional experience in specified and approved areas of work under the supervision of a
registered Quantity Surveyor; and
- Submission of practical tasks as directed by the Joint Test of Professional Competence Panel;
and
- A written test related to the professional experience that he has obtained and the Code of
professional conduct; and
- A professional interview conducted by at least two examiners appointed by the Joint Test of
Professional Competence Panel from time to time;
- Any other form of test or assessment of professional competence as the Joint Test of
Professional Competence Panel may decide from time to time. or

Quantity Surveyors (Amendment)


Rules 2004 (Contd)
Part IV CODE OF PROFESSIONAL CONDUCT
Clause 26
(1) uphold the dignity, standing & reputation of the QS profession.
(1A) exercise the standard of reasonable care, skill and diligence
normally expected & accepted by QS profession
(2) shall not conduct himself in such a manner/commit any act
which in the opinion of the Board is undesirable or disgraceful
(3) shall not conduct himself in such a manner or commit any act
will put the Board in disrepute/by his conduct/act question/injure the
integrity/reputation of the Board.
(4) shall exercise his duties observe and guided by the provisions of
the Code Of Professional Conduct

Clause 26A: carrying out his responsibility to his


employer, client or the QS profession shall have full regard
to the public interest

Quantity Surveyors (Amendment)


Rules 2004 (Contd)
Clause 27
(1) discharge duties to employer/client with complete honesty
(2) SHALL NOT accept remuneration for services rendered
(3) SHALL NOT offer or accept commission (illicit commission)
(4) practicing as a CQS shall not be a director or substantial shareholder or
agent
(5) SHALL NOT deals on behalf of his employer/client whilst practising as
CQS, at the same time without disclosing the fact in writing to his client.

Quantity Surveyors (Amendment)


Rules 2004 (Contd)
Clause 32 construe & administer with fairness the provisions of a
contract for the performance of work, all questions arising from
the contract he shall act in an impartial manner.
Clause 43 The Board shall issue permits to practise a firm/body
corporate whose application for approval to practise as CQS has
been approved by the Board under section 7A(12) of the Act.

GUIDELINES ON THE
APPOINTMENT &
TERMINATION OF
SERVICES OF CONSULTING
QUANTITY SRVEYORS

A. Appointment of Consulting
Quantity Surveyors (CQS)
Clause 28 provides the following
obligations for the CQS:
(1) Before accepting any appointment, RQS
shall notify his client in writing of the
prevailing terms and conditions in the MOA
between Client & CQS For Professional Quantity
Surveying Services as issued by the Board.
(2) Within 30 days of the receipt of the written
confirmation of the appointment of the RQS as
CQS, RQS shall notify the Board of such
appointment by submitting to the Board a copy
of letter of appointment/MOA duly signed
between him and his client

A. Appointment of Consulting
Quantity Surveyors (CQS)(Contd)
RQS is advised to follow the following steps before embarking on the
project:
(i) inform Client of the existence of the Boards MOA which includes the AOA, General
Conditions of Engagement & the Schedule of Fees.
(ii) agree with the Client on the scope of the QS services, whether full or partial,
which will decide the Schedule of Fees for the project. However, the MOA shall be the
basis of working out the amendments to suit the scope of the services by the QS
(iii) obtain a Letter of Appointment prior to the execution of the MOA.
(iv) submit to the Board the particulars on the project.
(v) amendment made to the MOA either as a deletion, addition and revision to the
clauses, must be initiated by both parties.
(iv) The MOA must be signed by both parties and stamped; the Original copy kept by
the Client & a stamped copy retained by the CQS.

B. Termination Of Appointment of
Consulting QS
BQSMs standard MOA makes
provision for the termination of the
CQS by the Client & vice-versa.
If the termination is in accordance
with the provisions of the Agreement,
the CQS will have to follow the
procedures contained in the
document.
If the CQS wish to appeal/challenge
the validity of the termination, action
must be initiated early.

C. Supplanting, Intervention & Taking


Over The Work of Another CQS
Clause 34 A RQS practising as a CQS SHALL NOT directly or indirectly
(a) Supplant/Attempt to supplant another RQS practising as CQS who has already
been appointed by an employer or client & whose appointment has not been
terminated/discharged
(aa) secure an appointment by undercutting or reduction of fees
(b) intervene or attempt to intervene in QS work to his knowledge has already
been entrusted to another RQS practising as CQS
(c) take over the work of another RQS practising CQS acting for the same
employer/client on the same project, unless he has
i) obtained the consent of that other RQS
Ii) been formally notified by the employer/client that the engagement of that other RQS
has been terminated or discharged in accordance with the provisions of any contract
entered into between that other RQS & the employer/client

C. Supplanting, Intervention & Taking


Over The Work of Another CQS
(Contd)
Whenever RQS is approached to provide QS services for an ongoing project, RQS must obtain a confirmation in writing from the
Client whether there is any other RQS on the same project, before
he commences his services.
If there is a RQS on the same project, the 2nd RQS may only take
over the same project from the 1st RQS provided:
i) 1st QS has given consent in writing to the 2nd QS
ii)the client has confirmed in writing that termination on the appointment of
the 1st QS in accordance with the provisions of the contract entered between
the same client & the termination is not disputed by the 1 st QS.
Iii) A Letter of Release has been issued by the 1st QS to the Client with no
conditions attached & permission granted for 2 nd QS to take over the project.

D. Issuance of A letter of Release


A Letter of Release shall be issued by the 1st QS within 14 days
from the date of request by the Client.
If there are reasons for not issuing the Letter of Release, the 1st
QS must state the reasons in the letter of reply to the Client.

E. Outstanding Fees Due To The 1 st


QS And Board As A Stakeholder
The QS Act 1967 has been amended to include
new provisions which include the following
clauses:
Clause 4 (ea) to act as a stakeholder in a contract for
CQS services, where deemed necessary by the Board

1st QS claim outstanding fees due to him, he


shall:
Present his claim to the client for professional services
rendered up to termination of appointment within
30days of a request to issue a Letter of Release.
Issue a Letter of Release upon settlement of his
outstanding amount by the Client.

E. Outstanding Fees Due To The 1 st QS


And Board As A Stakeholder (Contd)
The fees claims have been disputed by the Client & remained unsolved after
14 days from the date of submission of Accounts to the Client, the matter
maybe refer to the Board by the Client/CQS to initiate in writing as per the
following procedures:
i) The client/CQS may submit a request to the Board to act as a stakeholder by filling-up the
prescribed Form SH, which is available at the Board.
ii)The Board shall make a fair & reasonable assessment of the amount of money to be
deposited with the Board as the Stakeholder, reflecting the quantum in dispute & inform the
client/CQS accordingly with a copy to the 1st QS or client respectively.
iii) The client shall deposit the assessed sum with the Board.
iv) The Board shall instruct the 1st Qs to issue a Letter of Release to the client so that 2nd QS
can be appointed accordingly
v) The Board shall hold the deposited money until the dispute is settled through mediation,
arbitration or any other means of dispute resolution. On being informed of the settlement ,
the Board shall release the settlement sum.

Quantity Surveyors (Amendment)


Act 2015
Act A1481
comes into operation on the date to be
appointed by the Minister by
notification in the Gazette and the
Minister may appoint different dates for
the coming into operation of different
provisions of this act
Date of Publication in Gazette: 24
February 2014

Quantity Surveyors (Amendment)


Act 2015 (Contd)
Two Tier Registration
Abolishing the citizenship requirements this
enable foreign QS to register with the Board.
Omission of temporary registered QS
New category of QS Technologist
Shareholdings can be hold by non QS
Introduction of Disciplinary Committee
Introduction of Dispute Resolution Panel
New savings and transitional provisions

THE END