3. What is Building Information Modeling (BIM)?
→ Is an intelligent model-based process software
→ helping the AEC professionals work more efficiently in design, build and
operate buildings and infrastructure
→ create digital 3D models that include data associated with physical and
functional characteristics ; provides realistic visualisation to everyone
→ when an element in a model is changed, every view is updated with the new
change appearing in section, elevation views
→ The hassle for the process of designing a building - minimized ; can be done
with just any BIM softwares rather than using separate sets of drawings
→ Able to share with other parties in a construction project.
→ Sole purpose of improving time, cost and quality.
→ Glodon & CostX - adopt by most construction firm
4. Competitive advantages of using BIM technology
Building Information Modeling (BIM) can contribute various benefits to the
competitive advantage of a company:
1) BIM improves productivity- more can be done with less time enabling
the organization to handle more projects.
2) BIM opens new opportunities- A well-defined BIM business strategy can
open up niche opportunities for current and future clients.
3) BIM shortens the design phase of construction- hence it increase client
satisfaction and productivity.
4) BIM improves services to client- is an effective way to develop a more
valuable relationship with clients who don't understand your design
intent fully.
5) BIM builds a better workforce- BIM integration attracts the best talent.
Using BIM means your current and future staff will have new and more
modern ways to work and collaborate.
6. ● Established in 1998
● It has over 160 administrative
staff, quantity surveyors,
partners and associates.
● Construction Cost Management
and Quantity Surveying
● Based in Kuala Lumpur
● BIM Management
7. TCCM’S MAIN COMPETITORS
JUBM Perunding NFL Sdn. Bhd
Staff Resources 180 staff 190 staff
Size of Firm Large Large
Establishment 1976 1972
Core Services Construction Cost Management
& Quantity Surveying
Quantity Surveying
Branches/ Offices Kuala Lumpur, Penang,
Johor Bahru, Kuching, and
Kota Kinabalu
Kuala Lumpur, Johor Bahru,
8. How the Size of Firms affect the Competitive Advantage and
Competitive Strategies
Size of firms Total Workforce Percentage (%) of firms
Small ≤ 10 40.4
Medium 11-30 50.0
Large >30 9.6
Total 100.0
Table 1 Percentages of QS firms in Malaysia according to size of firm
● Based on Table 1 there are only less than 10% of large firms in Malaysia.
● QS firms that dominants the construction industry are from medium sized
company.
● TCCM is a large size firm, therefore we can conclude that the amount of
competitors among larger firms are lesser than smaller firms.
● Some researchers stressed that the size of a firm attributes to the choice of
strategy used on the positioning of the firm in the in industry. In TCCM’s case,
TCCM is a large size firm which is suitable for the differentiation strategy and
growth strategy.
9. SWOT Analysis
Strength
● Technology up to date
● Skillful workers
● Professional workers in various fields
● Experienced mega projects
● Work Efficiency in projects
Weakness
● Limited time to carry out measurement
● Low brand awareness
● Low experience
Opportunities
● Expand business strategy
● Worldwide branding
● Open business branches
● Expand use of technology
Threats
● Establishment of competitor
● Competitors knowledge
● Customer expectation
10. Porter's Five Forces Analysis
Threat of new entrant (Low) Threat of substitute (Low)
● Capital
● New entrant requirements
● Distribution channel
● BIM technology
● Use of technology
Bargaining power of buyers (High) Bargaining power of suppliers (High)
● Difference between competitors
● Client's knowledge
● Quantity surveyor limitation
● Switching cost
Competitive rivalry (High)
● Similar nature of work
● Low differentiation
● Commitment to industry
11. Competitive Advantage
● Making sure the satisfaction of client
● Differentiation strategy which promotes creativity in offering services i.e., diversification. For a firm, diversification includes
applied services, new knowledge, new technology application, marketing, innovation and much more.
● The cost leadership strategy focuses on the reduction of cost in productivity or administration to offer a lower price to
customers.In QS firms, this strategy refers to how the firm can offer their services at lower fees than others through the ability to
control the cost of the firm's administration while increasing productivity.
● Growth strategy is the expansion of business. By branching out, either locally or internationally, they would have a wider market
and more opportunities that could lead to a strengthened position in the industry
12. COMPETITIVE STRATEGIES FOR TCCM.
Differentiation Strategy
Elements of Differentiation Strategy
Marketing Strategies ● Build relationship with existing clients
● Attracting new clients
● Providing broader range of services to
clients
Reputation Strategies ● Best known on honesty and responsibility
● Widely known on delivering high quality of
services
Branding Strategies ● Improve quality of services offered
● Establish good image and reputation in the
minds of clients
Relationship Strategies ● Identify clients’ requirements and maintain
good relationship with them
● Offering additional services to clients
Innovation Strategies ● Development of in-house software
● Implementation of new knowledge
13. COMPETITIVE STRATEGIES FOR TCCM.
Growth Strategy
Elements of Growth Strategy
Internationalization Strategies ● Venture in internationalization
● Joint venture with a firm in a foreign
country
Expanding Firm/ Services Strategies ● Expand firm by increasing number of
staffs to develop scope of services
● Expand scope of services to cater to
foreign market demand
● Set up more branch offices
● Joint venture with a firm in Malaysia
Diversification Strategies ● Other consulting services
● Entry into new types of construction
projects
● Engaging in new business (real estate,
oil and gas and others)
15. Definition of PPP and PFI
Public Private Partnership (PPP)
A joint venture effort between government and private sector for completing
any project and it is usually very useful for handling large public projects.
Several types of PPP contract:
1. Build-Operate-Transfer (BOT)
Private entities finance, design, construct, operate and maintain the
project before transferring back to the government after the end of
concession period.
2. Build-Own-Operate-Transfer (BOOT)
The private companies are allowed to collect fees from end users for a
certain period as agreed in the contract to pay back investments made.
Once ended, it is transferred back to the public authorities.
16. 3. Build-Own-Operate (BOO)
Similar to BOOT. the only difference is that the private sector will be able
to retain their ownerships for long period.
4. Lease Purchase
Applied when the local government may not be in a position to finance for
the projects due to limited funding. The facilities completed are then
leased out to the government for a specified period as agreed in the
contract. Once the contract ends, the ownership will shift to the local
government.
Private Finance Initiative (PFI)
Alternative to the conventional procurement of public service infrastructure. It
is a method where private sector provides funds for the projects.
Definition of PPP and PFI
17. Benefits of PPP/PFI towards Malaysia
1. Better certainty in quality
➔ Innovative and improved designs are usually proposed by the private
entities for the projects = higher quality standards
➔ Performances evaluated through KPI to avoid poor or non-conforming
quality.
➔ Any shortcomings or dissatisfaction by the public sector, the contractors
would have to rectify in order to get paid for the services.
2. Better certainty in timing
➔ Private entities are paid on performances basis = faster completion and
less delays
3. Efficiency
➔ Private entities involved are experienced and have more expertise in the
work for the completion of project = smooth and efficient progress.
18. 4. Reallocation of funds
➔ Government will be able to allocate their funds for other important
socioeconomic areas.
5. Value for money
➔ Private entities responsible for design construction, and maintenance in
the long run = good whole-life cycle costing.
6. Risk distribution
➔ Appropriate allocation of risks according to their own capabilities in
managing and coping with the matters.
7. Long-term relationship
➔ Contract spans between 20-30 years = help to to grow by sharing
knowledge in their line of work.
Benefits of PPP/PFI towards Malaysia
19. 1. Costly
➔ Due to the risks accepted by the private entities, they might expect to be
compensated.
➔ Cost of services provided vary according to profit margin, scope and
complexity of projects.
2. Operational concerns
➔ Lower than expected usage could result in decrease of available revenue.
(eg tolls)
3. Financing risks
➔ EPF used for funding PPP/PFI projects, government is more at risks.
4. Tendering process
➔ Projects tend to go through direct negotiations instead of open tendering.
Disadvantages of PPP/PFI towards Malaysia
20. Precautionary steps before awarding PPP/PFI projects
● Establish objectives and methods of PPP implementation
○ Prepare a schedule which clarifies the public sector expectations
○ Create long term shared vision
● Provide clear guidelines and procedures
○ Sufficient details from initial to post completion stage
● Identify Key Performance Indicator (KPI)
○ Performance measurement tool
○ Ensure services/facilities provided is in accordance to the standard required
● Amount of profit allowed for private sector
○ Needs of public provided at the best cost
21. Precautionary steps before awarding PPP/PFI projects
● Establish clear contract terms
○ Ensure no misinterpretation of contract clauses
○ Risk allocation, risk sharing and risk transfer
● Examine financial capability of private sector
○ Private sector is required to submit proposal of their financial plans to reflect
its financial stability and capability to undertake the project
● Evaluate technical feasibility
○ Technical solutions should be feasible and consistent with cost allocated
○ Improve the value of facility and prolong its operation period
○ Consider quality of work plan and competencies of staff
