1. Professional Practice 1
QSB 60103
Group Members:
Tan Kai Xuan (0325066)
Tan Shen Sin (0324602)
Tee Wan Nee (0325074)
Teo Chiang Loong (0323762)
2. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
KEY CRITERIA IN PROCUREMENT
TIME
COST QUALITY
A C
B
3. Six weeks before Chinese New Year, a fire occurs in the booking hall at KLIA2. The airport
authority is heading towards one of the busiest times of the year and could suffer a loss of
profit, somewhere in the order of RM 500,000 per day if facilities are not able to cater for
the holiday demand.
(Anticipated contract value: RM 20 million)
TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
SCENARIO A : FIRE DAMAGED AIRPORT
PROCUREMENT METHOD :
Management
Contracting
4. MAIN ISSUE:
The airport authority is heading towards one of the busiest times of the year
TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
SCENARIO A : FIRE DAMAGED AIRPORT
Quality
(Each package
subcontracted to
specialist)
WHY Management Contracting ?
Used on projects
where there is a
shortage of time
Suitable for complex building.
(where the design is
sophisticated/innovative,
requiring components designed
by specialists).
5. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
SCENARIO A : FIRE DAMAGED AIRPORT
Suitability
Management Contracting
Traditional Procurement
Design and Build
Construction Management
Due to no time certainty
Due to time and cost certainty
Suitable for experienced clients
6. In the midst of a property boom, a developer purchases an old rice mill and wishes to refurbish
the building, converting it into high-quality residential accommodation.
(Anticipated contracted value: RM 400 Million)
TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
SCENARIO B : REFURBISHMENT OF AN OLD RICE MILL IN THE MIDST OF A PROPERTY BOOM
PROCUREMENT METHOD :
CONSTRUCTION
MANAGEMENT
7. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
SCENARIO B : REFURBISHMENT OF AN OLD RICE MILL IN THE MIDST OF A PROPERTY BOOM
MAIN ISSUE:
Refurbishment of old rice mills DURING PROPERTY BOOM
WHY Construction Management ?
Flexible in design Quality Time
8. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
SCENARIO B : REFURBISHMENT OF AN OLD RICE MILL IN THE MIDST OF A PROPERTY BOOM
MAIN ISSUE:
Refurbishment of old rice mills DURING PROPERTY BOOM
Suitability
Construction Management
Traditional Procurement
Design and Build
Management Contracting
Due to no time certainty
Due to the restrictions to change the
designs during the constructions
Due to client doesn’t choose their
own sub contractors
9. The Selangor State Government is to develop a new community facility to provide locally
available social care.
(Anticipated contract value: RM 250 million)
TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
SCENARIO C : STATE GOVERNMENT COMMUNITY PROJECT
PROCUREMENT METHOD :
DESIGN & BUILD
10. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
MAIN ISSUE:
Selangor State Government to develop a new community facility
WHY Design & Build ?
SCENARIO C : STATE GOVERNMENT COMMUNITY PROJECT
Appropriate for simple projects,
where design quality is not the main
consideration
Favoured by government for
publicly-funded projects
11. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
ADVANTAGES of Design & Build
MAIN ISSUE:
Selangor State Government to develop a new community facility
SCENARIO C : STATE GOVERNMENT COMMUNITY PROJECT
Cost Certainty
Single point
responsibility
Faster job completion
Variation of design can be
made easily
(Might affect the whole
Design-Build Contract, rather
than just design team cost.)
12. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
SCENARIO C : STATE GOVERNMENT COMMUNITY PROJECT
Suitability
Design and Build
Traditional Procurement
Management Contracting
Construction Management
Due to no time certainty
Due to individually appointed packages
to best suited sub-contractor.
Suitable for experienced clients
13. Taylor’s University is considering building a multi-story park building in the vicinity of the campus
to overcome the serious shortage of car park spaces
(Anticipated contracted value : RM 50 million)
TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
SCENARIO D : TAYLOR’S UNIVERSITY MULTI-STOREY CARPARK
PROCUREMENT METHOD :
TRADITIONAL METHOD
14. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
MAIN ISSUE:
Considering building a multi-story park building in the vicinity of the campus to
overcome the serious shortage of car park spaces.
WHY Traditional Method ?
Project owners have budget
to manage
Low Risk
(Risk of overspend, delays or
design failure are avoided.)
SCENARIO D : TAYLOR’S UNIVERSITY MULTI-STOREY CARPARK
15. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
ADVANTAGES of using Traditional Method
MAIN ISSUE:
Selangor State Government to develop a new community facility
SCENARIO C : STATE GOVERNMENT COMMUNITY PROJECT
Project owner retains
control over design &
construction
Contractor & consultant
team are familiar to
solve risks
16. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
THE END