The document recommends using the traditional procurement method for the extension of the Kuala Lumpur Twin Towers project. This method meets the client's requirements of having full control of the design process and minimizing cost variations. It involves appointing consultants early for design work before tendering construction. The two-stage selective tendering process further ensures a transparent contractor selection and quality assurance. A lump sum contract using the PAM 2006 form with liquidated damages for delays also addresses the priorities of quality, safety and timely completion.

1. EXTENSION OF
KUALA LUMPUR
TWIN TOWER

2. PROCUREMENT

3. PROCUREMENT METHOD
Client’s requirements:
● Have full control of the design and able to introduce
changes from beginning till the completion
● Not interested in the daily dealing with too many
parties except the few key members of the project
● Complete project on time
● Minimum variation to the contract price during the
construction

4. RECOMMENDATION:
TRADITIONAL
PROCUREMENT
METHOD

5. TRADITIONAL PROCUREMENT METHOD
How does it work?
● Design phase to Construction phase
● Consultant teams are appointed at the
early stage to carry out the design process.
● Work will then tender out to the suitable
contractor only after design process is
completed.
● Client can involved in the design stage to
ensure it is within their requirements.

6. TRADITIONAL PROCUREMENT METHOD

7. TRADITIONAL PROCUREMENT METHOD
● TIME
1. Priority of this project fall into
quality and cost due to time is not
constraints.
2. Provides medium time risk to the
client because it requires longer
time frame for the Pre and Post
Tender Stage.
Duration of the project is 5
years
WHY THIS METHOD?
Time given is sufficient for
this Kuala Lumpur Twin
Tower Mega project

8. TRADITIONAL PROCUREMENT METHOD
1. Client can be involved in the design
process with the consultant team to
ensure that it is within the their
requirement.
2. Client able to make decision,
changes and provide instruction
during the designing stage with the
consultant team
Have full control of the design and able
to introduce changes from beginning till
the completion
WHY THIS METHOD?
Kuala Lumpur Twin Tower is a tourist area and
the landmark of Malaysia, quality of the work
must be taken into consideration.
● QUALITY

9. TRADITIONAL PROCUREMENT METHOD
Construction cost given is RM 1.2 billion.
1. This method is the most suitable as it provide lower cost risk to the
client due to the use of lump sum contract.
2. Any overcharging fees will be bear by contractor.
3. The amount is agreed between the parties in the contract before the
construction start.
4. Having a completed design of the project before tendering process
can provide the client certainty of the construction cost and the
design quality.
● COST
Minimum variation to the contract price during the construction

10. TRADITIONAL PROCUREMENT METHOD
1. The client only have to communicate with the consultant team
and only have contractual relationship with the main contractor
and consultants.
2. This form of procurement is also suitable for both experience
and inexperienced client because client can get advice from the
consultant team regarding to the project.
3. Subcontractors are dealt directly by the main contractor.
The client is not interest to deal with too many parties except the
few key members of the project.

11. CONCLUSION
TRADITIONAL METHOD
- Longer time frame but ensures better quality and cost delivered
- Does not need to deal with multiple parties but only key players
- Price certainty of construction cost unlike other methods
- For experience and inexperience clients unlike other methods

12. TENDER METHOD

13. TENDER METHOD
Client’s requirements:
● Reasonably transparent
selection process
● Eliminate potentially
non-performing contractor

14. RECOMMENDATION:
TWO STAGE
SELECTIVE TENDERING

15. SELECTIVE TENDERING
Tender Procedure
Pre-qualification Stage
1. Advertisement in newspaper
to invite interested tenderers
to submit their company
profiles for evaluation in the
Pre-qualification Form
2. A list of pre-qualified
contractors will then be
included in the final tender list
and invited to collect the
tender documents.

16. SELECTIVE TENDERING
Tender Procedure
Pre-qualification Stage
1. Advertisement in newspaper
to invite interested tenderers
to submit their company
profiles for evaluation in the
Pre-qualification Form
2. A list of pre-qualified
contractors will then be
included in the final tender list
and invited to collect the
tender documents.
Eliminate potentially
non-performing
contractors.
Reasonably transparent
selection process

17. SELECTIVE TENDERING
Tender Procedure
3. The list of pre-qualified contractors will
proceed on to the tendering process.
4. Evaluation process of tender
submissions from the list of pre-qualified
contractors takes place.
5. The most competent and suitable
contractor will be selected.
Quality
Assured

18. SELECTIVE TENDERING
Tender Procedure
6. The selected contractor will proceed on to the
negotiation process.
7. The price negotiation would take place until an
agreement is reached and both parties are satisfied,
leading them to enter into contract for construction
works to commence.

19. SELECTIVE TENDERING
(TWO STAGE)
Reasonably transparent selection process
Eliminate potentially non-performing contractor
Quality Assurance

20. CONTRACTUAL
ARRANGEMENT

21. CONTRACTUAL ARRANGEMENT
WHAT IS LUMP SUM CONTRACT ?
“Lump sum” price for all the work agreed before the work begin whereby
contractor is required to submit a total and global price.
Contractor is responsible for executing the complete contract work for a stated
total sum of money.
TYPE OF CONTRACT
LUMP SUM CONTRACT

22. CONTRACTUAL ARRANGEMENT
WHY LUMP SUM CONTRACT ?
Based on client’s condition and consideration :
1) Unfamiliar with construction industry
2) Not interested on dealing with too many parties
3) Minimum variation
TYPE OF CONTRACT
LUMP SUM CONTRACT

23. CONTRACTUAL ARRANGEMENT
PAM CONTRACT 2006 (WITH QUANTITIES)
WHY PAM CONTRACT 2006 ?
- private sector project
- traditional procurement method
FORM OF CONTRACT

24. CONTRACTUAL ARRANGEMENT
● TIME
● QUALITY
● HEALTH AND SAFETY
EMPLOYER’S CONSIDERATION AND REQUIREMENT

25. CONTRACTUAL ARRANGEMENT
● TIME
1. Clause 21.1
Possession of the site for execution of the works on the Date of Commencement
2. Article 7
Completion Date
3. Clause 22.1
Certificate of Non-Completion
4. Clause 22.2
Pay for the agreed Liquidated Damages (RM 250,000.00 a day)
5. Clause 15.2
Written notice for practically completed.
EMPLOYER’S CONSIDERATION AND REQUIREMENT

26. CONTRACTUAL ARRANGEMENT
● QUALITY
Clauses 6.0
Material, Goods and Workmanship To Conform to Description, Testing And
Inspection supports the requirement of good workmanship
Clauses 6.3
Inspection and testing
Clauses 6.5
Work not in accordance with the contract
Clauses 6.8
Warranties in respect of materials and goods
EMPLOYER’S CONSIDERATION AND REQUIREMENT

27. CONTRACTUAL ARRANGEMENT
● HEALTH AND SAFETY
A) GENERAL ITEMS IN PRELIMINARIES
B) EMPLOYEE’S SOCIAL SECURITY ACT 1969
C) WORKMEN’S COMPENSATION ACT 1952
D) PAM CONTRACT 2006 (WITH QUANTITIES)
E) OCCUPATIONAL SAFETY AND HEALTH 1994 ( OSHA 1994)
EMPLOYER’S CONSIDERATION AND REQUIREMENT

28. CONCLUSION

29. THANK YOU!
KENNETH TAN SIN KWANG 0322482
CHAN YI FUNG 0323057
LEE FONG YEN 0321976
LEE LIN HUI 0322797
LEONG LI JING 0323628
LEONG MIN HUI 0327596
ADELE LU KHAI SYN 0323151
LEW QUO MING 0322884
WONG JIA JING 0327221
YEAP PHAY SHIAN 0322243
YEE JYH LIN 0322408

30. THANK YOU!
KENNETH TAN SIN KWANG 0322482
CHAN YI FUNG 0323057
LEE FONG YEN 0321976
LEE LIN HUI 0322797
LEONG LI JING 0323628
LEONG MIN HUI 0327596
ADELE LU KHAI SYN 0323151
LEW QUO MING 0322884
WONG JIA JING 0327221
YEAP PHAY SHIAN 0322243
YEE JYH LIN 0322408