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Chapter 1


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Chapter 1

  3. 3. CONSTRUCTION INDUSTRY IN GENERAL Generally : Construction industry is one of the important element to stabilize our country. It’s also act as business course that involving building works, civil works, mechanics, water, electricity, quary, development of land & forest and many more. The main objective is to get investment/investment profits to the nearest maximum. To ensure construction projects run smoothly, a well-organised management including tender/contract document preparations should be done from early stages to the end. Definition : Industry that involving construction of civil & building works
  4. 4. Types of works in construction industry : CONSTRUCTION INDUSTRY IN GENERAL Civil work (basic/common work) * Roads * Jetty&bridge * Tunnel * Sewerage Civil work (heavy/complex work) * Oil rig * riverdam * airport •Highway •Railway station Buiding •Houses •Offices •Hotel&resort •Hopital •School/learning institute •mosque
  5. 5. CONSTRUCTION INDUSTRY IN GENERAL The relationship between the construction industry and the economic growth •construction industry is considered as the boost to the development of other industries.. •E.g: -tourism.. (elaborate) -development of technology to expand the construction industry.. (elaborate) - development of infrastructure facilities (elaborate) - etc.
  6. 6. PROBLEM FACED BY MALAYSIAN CONSTRUCTION INDUSTRY There are lots of problems that the Malaysian construction industry faces. Effects to the productivity of construction industry. caused by manpower, quality of productivity and time.
  7. 7. Lack of Manpower Workers from others country like Indonesia, Bangladesh and Myanmar. Have a contracts. Have less local workers. The workers work at construction industry does not have any experience.
  8. 8. Quality of Productivity Lack of trained manpower. Many of contractors in Malaysia do not have many skills in engineering construction. Do not follow the schedule. Do not have a good management
  9. 9. Do Not Finish the Project on Time Do not follow the timetable. Causes by a weather. Problem with contract workers
  10. 10. Activities involved in construction 1)Feasibility study: before the engineer/architect can commence the client/authority of the organization concerned, he must defined the objective of the project and also submitted a detailed project brief. 2) Design : to plan more detailed work to get permission from the authorities and to determine the cost (approximate cost) & provide all the information needed. 3) Tender level : to appoint the civil engineer contractor to do the construction work for a certain project.
  11. 11. Activities involved in construction… cont.. 4) Contract : to get the tender from the contractor for the project offer & make a contract agreement. 5) Construction : to build civil engineering works based on the design & specification with controlling the time, cost & quality of the project. 6) Completion phase :to make sure that the project are completed in time & followed the drawing & specification in the contract document with suitable cost & produce a good quality of works. 7) Maintenance: provide operation order & the guidelines.
  12. 12. Designer member : 1. Project Developer/owner * Intent to build a construction project * appoint consultants & contractor 2. Architect * prepare early&detailed dwgs based on owner/project developer budget * give advice & suggestion(s) to owner/project developer CONSTRUCTION INDUSTRY IN GENERAL
  13. 13. 3. Engineer (civil/structure/electrical/machinery) *same roles as architect which is based on their own expertise 4. Quantity surveyor * act as cost adviser(although detailed dwgs not prepared yet) * estimate cost(roughly) for owner/project developer reference * cost planner to analysed each element in construction/building works and made comparison of total cost * preparing tender documents
  14. 14. Builders team member : 1. Contractor * build&complete construction works based on contract document * responsible for works done at site * completed construction/building project on time & in great shape based on contract document * observed local authorities regulations * prepare insurance’s policy for works & workers 2. Architect * observed project’s during construction * act as a leader among consultant * always interacts/communicate with contractor CONSTRUCTION INDUSTRY IN GENERAL
  15. 15. Builder member : 3. Engineer (civil/structure/electrical/machinery) * observed project’s during construction * main adviser based on their own expertise at site 4. Quantity surveyor * analysed wprks at site for interim payment * Estimate VO (variation order) * preparing final account * make sure contractor repair/rebuild damages completed project during defects liability period CONSTRUCTION INDUSTRY IN GENERAL
  16. 16. CONSTRUCTION INDUSTRY IN GENERAL Contractor firm organization generally top middle lower management observation / technical workers based on contractor firm power & policy
  17. 17. Manager/ owner Administration Technical General Financial Purchase Project CONSTRUCTION INDUSTRY IN GENERAL Size or types of contractor firm’s organization whether big, medium or small usually based on firm or projects that will be held but basically organised as state above
  18. 18. The importance of Contractor Firm Organization Chart • Construction projects run smoothly • Everybody know their roles & duties • To ensure a well-organised firm/money well spend • Save on expenditure CONSTRUCTION INDUSTRY IN GENERAL
  19. 19. HEAD SYSTEM  Head system play large role in construction industry. Party involved named head contractor.  This system streamline to specialization some nature of the work. Each contractor that want are registered with Pusat Khidmat Kontraktor (PKK) must be state the heads that want to registered according to respective expertise.  Head contractor have a close relationship with contractor but the employee not the contractor employee. Only head contractor which have contract with contractor will complete works given.  Head contractor work based on profit. The basic/manual equipment is under head contractor provision and maintenance. Contractor only providing equipment or heavy machinery only.  CONSTRUCTION INDUSTRY IN GENERAL
  20. 20. HEAD SYSTEM ADVANTAGES  Contractor broke away from responsibility to manage and control the construction worker.  It more flexible (employee can change to another workplace)  Work can be finished faster. HEAD SYSTEM DISADVANTAGES  Employee surveillance (contractor no authority to oversee directly the head contractor employee)  Work quality  Building material wastage. CONSTRUCTION INDUSTRY IN GENERAL
  21. 21. TYPES OF HEAD 1) Head I : Civil Engineering Works 2) Head II : Building Works 3) Head III : Mechanical, Sanitary and Water Engineering Works 4) Head IV : Other Specialist Civil Engineering Works 5) Head V : Quarrying Metal and Earth Supply, Cartage and Transport 6) Head VI : Forest and Land Development 7) Head VII : Electric Works 8) Head VIII : Telecommunication Works CONSTRUCTION INDUSTRY IN GENERAL
  22. 22. CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB) • To promote and stimulate the development, improvement and expansion of the construction industry; • To advise and make recommendations to the Federal Government and the State Governments on matters affecting or connected with the construction industry; • To promote, stimulate and undertake research into any matter related to the construction industry; • To provide consultancy and advisory services with respect to the construction industry; • To promote quality assurance in the construction industry; Official website : CONSTRUCTION INDUSTRY IN GENERAL CIDB REGISTRATION
  23. 23. PUSAT KHIDMAT KONTRAKTOR (PKK) @ CONTRACTOR SERVICE CENTRE PKK FUNCTIONS i. Registration center for all contractors working on federal or state level. ii. Giving recognition to qualified.Bumiputera contractors iii. As a referers to contractor iv. To provide advice and assistance to Bumiputera contractors. CONSTRUCTION INDUSTRY IN GENERAL Official website :
  24. 24. REGISTRATION PROCEDURE(CONTRACTOR)@PKK registered (business) Pejabat Pendaftaran Perniagaan minimum capital technical qualification (certificate / diploma / degree) work experience or employment record company credit facilities, supply of materials and machinery letter of support from supervisors and project from the main contractor equipment and machinery technical staff and management. Applicants who have the conditions (qualified) may apply and be interviewed on the PKK. REGISTRATION PROCEDURE-CIVIL/BUILDING WORKS REGISTRATION PROCEDURE-ELECTRICAL WORKS TECHNICAL QUALIFICATION-HEAD/SUB-HEAD
  25. 25. End of Chapter 1……..