Project Management Group Assignment Final Report

SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
BACHELOR OF QUANTITY SURVEYING (HONOURS)
PROJECT MANAGEMENT (MGT 60704)
GROUP ASSIGNMENT
GROUP MEMBERS:
NO. NAME STUDENT ID
1 Chan Yi Fung 0323057
2 Darren Tan Quan Wen 0322662
3 Ee Hui Teng 0322548
4 Leong Li Jing 0323628
5 Loh Mun Tong 0323680
6 Pui Chun Shian 0323470
7 Soo Yon Li 0322821
8 Wong Jia Jing 0327221
9 Yeong Poh Ling 0323590
SEMESTER: SEMESTER 6 (MARCH 2019)
LECTURER: MR. LEONG BOON TIK
SUBMISSION DATE: 12th JUNE 2019

TABLE OF CONTENT
1.0 Project Background (Ee Hui Teng)
1.1 About Taylor’s 1
1.2 Proposed Project 2
1.3 Project Benefit 3
1.4 Company Profile 6
2.0 Project Propose Design (Loh Mun Tong)
2.1 Carpark 7
2.2 Retails 9
2.3 Supermarket 10
3.0 Project Time Management (Chan Yi Fung & Loh Mun Tong)
3.1 Introduction 11
3.2 Work Breakdown Structure (WBS) 12
3.3 Critical Path Method (CPM) 14
3.3.1 Simplified Critical Path of Proposed Project 17
4.0 Project Cost Estimation (Wong Jia Jing & Chan Yi Fung)
4.1 Introduction 19
4.2 Data used for project cost estimate 20
4.2.1 Construction Cost
4.2.2 Development Cost
4.3 Gross Development Cost 21
4.4 Operation and Maintenance Cost 22

4.4.1 Operation and Maintenance Cost due to Inflation Rate
4.5 Potential Profit 23
4.5.1 Estimated income 24
4.5.2 Total Estimated Income due to Inflation Rate 24
4.5.3 Net Profit Value 25
4.6 Net Profit over 20 years duration 25
4.7 Payback Period 26
5.0 Project Quality Management (Pui Chun Shian & Yeong Poh Ling)
5.1 Introduction 27
5.2 Recommendations 27
5.2.1 QLASSIC 28
5.2.2 Project Quality Planning 30
5.2.3 Video Documentations 32
6.0 Project Risk Management (Darren Tan & Soo Yon Li)
6.1 Introduction to Risk 33
6.2 Identification of Risks 34
6.2.1 External Risks 34
6.2.1.1 Political 34
6.2.1.2 Economic 35
6.2.1.3 Social 36
6.2.1.4 Technological 37
6.2.1.5 Environmental 37
6.2.1.6 Legal 39
6.2.2 Internal Risks 39
6.2.2.1 Pre-Construction 40
6.2.2.2 Construction 41
6.2.2.3 Post-Construction 42

6.3 Analysis of Risk 43
6.3.1 Qualitative Analysis 43
6.3.2 Quantitative Analysis 44
6.3.3 Risk Matrix 44
6.4 Responding to Risks 45
6.4.1 General Approaches for risk response 49
6.5 Monitoring Risks 50
7.0 Project Procurement Management (Leong Li Jing)
7.1 Introduction 51
7.2 Project Procurement Management Process 51
7.3 Procurement Method 56
7.4 Tendering Method 57
8.0 Project Summary 59
9.0 Reference 60

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1.0 Project Background
1.1 About Taylor’s
Taylor’s University was first founded in 1969 as a college in Subang Jaya, Selangor,
Malaysia. It was later awarded the status of university college in 2006 and university in 2010.
Taylor’s University is located at No. 1 Jalan Taylor’s, 47500 Subang Jaya, Selangor Darul Ehsan,
Malaysia. Taylor’s University Lakeside campus was constructed in 2007 and completed in 2010
to accommodate its increasing number of students. The entire campus is 27 acres big. It consists
of a total of 5 education blocks and 1 commercial block. A 5.5 acres man-made lake is situated
right in the center of the campus surrounded by its buildings. The current campus is well equipped
with various facilities such as:
1. Academic Facilities
- Lecture Theatres
- Library
- Anatomy Laboratory
- Design Studios
- Experimental Theatre
- Audio Recording Studio
- Audio Editing Laboratory
- Restaurants
- Wine Lab
- Engineering Laboratory
- Computer Labs
- Moot Court
2. Services Facilities
- Career Services Centre
- Counselling and Psychological Services Centre
- The Grand Hall
- Sick Bay

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- Sports and Recreation Centre
- Student Life Centre
- Uni-Gym
3. Accommodation
- U-Residence
1.2 Proposed Project
Taylor’s University is situated at No. 1, Jalan Taylors, 47500 Subang Jaya, Selangor. The
proposed site is located in Taylor’s University right beside the commercial block as shown above.
The site has a total area of 1,181.45m2 (12,716.99sqft) and a perimeter of 141.50m (464.22ft).

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1.3 Project Benefits
The proposed site is located strategically at a well-developed area where there are various
types of existing amenities nearby such as:
1. Sunway Pyramid
2.Sunway Medical Centre

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3.Sunway Lagoon
4.Sunway Geo

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5.PJS 7
Other than that, the population of Subang Jaya had been increasing gradually since 2014
according to United Nation Statistic Data. According to statistics, the population of Subang Jaya
had increased from 189,535 in 2014 to 205,000 in 2017. Furthermore, there are several residential
area close to the proposed site namely U-Residence, PJS 7, DK Senza and D’Latour. Therefore,
there is an increasing demand for commercial developments in the area.
Moreover, there is also an increasing number of students in Taylor’s University especially
after the merge of Taylor’s College and University. This causes the current parking facilities
available insufficient to cater for the ever expanding population in the campus. Hence, there is an
effective demand for parking spaces in the proposed area.

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1.4Company Profile
TK Builders was first founded in 1980s as a contractor firm in Kuala Lumpur, Malaysia.
Throughout the years, it had become one of the most well-known company specialised in
delivering turnkey projects in Malaysia. TK Builders are passionate about construction and strive
to build for a better future.
TK Builders was involved in a great variety of projects such as residential, commercial,
industrial, infrastructure and mixed developments. It is well-rounded with different expertise for
construction of various developments to provide the optimal service to the client. It ensures that
its clients are confident and has full trust in it to deliver the development.

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2.0 Project Proposed Design
Figure 2.1: Elevation View of Building Design Concept
Figure 2.1 shows the elevation view of the proposed design building. The proposed
building is allocated next to Syopz mall which is convenient for Taylor’s student to reach the shops,
carpark and campus within walking distance. The building consists of supermarket, retails and
carpark.
2.1 Carpark
Figure 2.2: Elevation View of Concept Carpark
The carpark is 5 storeys high where it includes 3 floors of half-sized carpark and 2 floors
of full-sized carpark. The proposed carpark can accommodate 105 cars in total.

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Figures 2.3: Concept Plan View of Full-Sized Carpark
The approximate plan area of full-sized carpark is 1180 m². Each floor of full-sized carpark
can accommodate 30 cars; thus, 2 floors of full-sized carpark can contain 60 cars in total.
Figure 2.4: Concept Plan View of Half-Sized Carpark
The approximate plan area of half-sized carpark is 590 m². Each floor of half-sized carpark
can accommodate 15 cars; thus, 3 floors of half-sized carpark can contain 45 cars in total.

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2.2 Retails
Figure 2.5: Concept Plan View of Retails
The approximate plan area of retail for each floor is 590 m². There are two types of shops
namely type A and type B. The average size of type A shop is 50 m² while the average size of
type B is 100 m². Each floor can accommodate an approximate of 5 shops in total including
circulation area such as staircase and toilet.

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2.3 Supermarket
Figure 2.6: Jaya Grocer Supermarket
Supermarket is located at the ground floor of the proposed building. Supermarket offer
Taylor’s students a one-stop shopping experience. The idea of supermarket is to provide the
consumers with quality household food products and goods for their everyday needs such as
appliances and groceries under one roof. The proposed supermarket includes the “Grocerant”
experience, a concept of blending restaurant experience with the grocery experience. The
consumers can enjoy dining at the store and getting their groceries at the same time. An example
of the supermarket include Jaya Grocer.

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3.0 Project Time Management
3.1 Introduction
According to Project Management Body of Knowledge (PMBOK), project time
management is defined as the processes needed to organize a timely completion of the project. The
process of project time management involves define activities, sequence activities, estimate
activity resources and activity durations, develop schedule and control schedule.
Define activities is undertaken to identify the specific actions to be carried out to generate
the project deliverables. On the other hand, sequence activities are undertaken to determine the
document the relationships among the project activities. The types and quantities of material,
people, equipment, and supplies needed to perform each activity is estimated under the process of
estimate activity resources. In addition, the approximate numbers of work periods required to
complete individual activities with the estimated resources are evaluated under the process of
estimate activity durations.
The project schedule is developed by analyzing the activity sequences, durations, resource
requirements and schedule constraints. The process of monitoring the status of the project to update
project progress and managing changes to the schedule baseline is undertaken to control schedule.
In this project, the project deliverables and the project work are subdivided through the
creation of Work Breakdown Structure which organizes and defines the total scope of the project.
In addition, a simple critical path of the proposed project is developed to estimate the minimum
project duration on the logical network paths within the schedule model.

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3.2 Work Breakdown Structure (WBS)
Work breakdown structure is a deliverable-oriented hierarchical decomposition of the work
to be executed by the team. This way of describing the work able to help the team achieve better
understanding in what work is needed to be done in order to meet the goals of the project. The
element which consist in the work breakdown structure must consistent with cost and human
resource, the integration between schedule, cost, and responsibilities can be achieved.
Work breakdown structure is the process of subdividing project into smaller and more
manageable components. Simply put the work breakdown structure technique divides projects into
smaller more manageable chunks that can be more easily estimated and controlled. It gives a black
and white version of the work effort needed and almost as important if the work is not in the work
breakdown structure it is not a part of the project. The work should be decomposed until it is clear
to teams performing the work. This provides a clear line of sight between the work and the goals
for the project.
The work breakdown structure technique can be defined as the necessary to decide what
all should and should not be covered with in the project. When complete, the work breakdown
structure lowest level components called "work packages" can be delegated to teams for further
development and estimating and a work breakdown structure dictionary can be developed. In this
way, project responsibilities can easily be distributed and committed to. This information can then
be placed into a scheduling tool. In addition, the work packages can be used to create a project
baseline that assures all the work can be evaluated for completeness.
The steps of decomposition of the total project work into work packages

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3.3 Critical Path Method (CPM)
The critical path method (CPM) measures the theoretical early start and finish dates for all
activities in the project by performing a forward and backward pass analysis through the schedule
network. The resulting early and late start as well as finish state the time periods for the activity
scheduling, activity durations and other known constraints.
The critical path method is commonly adopted in the construction industry for better
scheduling, monitoring and controlling the project by grouping all the inter-related activities which
must be completed before the completion of the project to provide a disciplined basis for planning,
a clearer picture of the scope of a project and to prevent the omission of activities that naturally
belong to the project.
The application of critical path method requires to construct a model of the project which
includes the following:
● A list of all needed activities to be carried out to complete the project or also known as the
Work Breakdown Structure
● The time taken for each activity for completion
● The reliance between the activities
Figure 3.1: Key Steps in Critical Path Method

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Figure 3.1 shows the key steps to be taken in critical path method. The first step is to
identify the main deliverables of a project by using the work breakdown structure. The activities
can be further break down into smaller chunks of work.
The second step is to determine the reliance of each activity. Some activities will depend
on the completion of others where it involves considering which task should be taken in prior to
the others. Hence, listing the immediate predecessors of each activity helps to identify the correct
order of the activities.
After identifying the activities and their dependencies, the sequence of the activities can be
express through the means of logic diagram or commonly referred as “Activity-on-Node” (AON)
diagrams. In a logic diagram, “nodes” represent each activity with arrows indicating the
relationships between these activities. The relationship schedule is known as the “Finish-to-Start”
relationship where the preceding activity must be completed before the succeeding activity can
start.
Once the activities are arranged in logical order and relationships are set, the estimated
project duration can be determined through the forward pass and backward pass technique by using
the activity node format.
Forward pass is a technique to move forward through the logic diagram to determine the
project duration and critical path of the project. In forward pass, the Early Start and Early Finish
values for each activity along with the overall Project Duration are calculated. In contrast,
backward pass calculates the Late Start and Late Finish values of the project. Early Start (ES)
depicts the earliest start of an activity while Late Start (LS) is the latest date that the activity can
be completed without causing delay to the project completion date.

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Figure 3.2: Activity Node Format
Early Start (ES) is plotted on the first left corner box at the top and Early Finish (EF) is
plotted on top right corner box while Late Start (LS) is plotted on the left bottom corner box and
Late Finish (LF) is on the right corner box at the bottom. The activity duration is started under the
activity description at the middle.
The string of critical activities will be identified after the values are calculated. The
continuous string of critical activities is known as the Critical Path. The summation of the critical
activity duration is equivalent to the overall project duration.

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3.3.1 Simplified Critical Path of Proposed Project
Table 3.1: Summary of Project Activities, Predecessor and Duration
Figure 3.3: Activity-On-Node (AON) Diagram
Table 3.1 shows the identified summary of project activities followed by predecessor and
the duration to carry out the activities. An activity-on-node diagram is developed as shown in
figure 3.3.
Figure 3.4: Activity Node Format used for Proposed Project

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Figure 3.5: Simplified Critical Path of Proposed Project
A simplified critical path of the proposed project is created as depicted in figure 3.5 in the
form of activity node format as shown in figure 3.4.
According to figure 3.5, the simplified critical path of the proposed project is A -> B -> C
-> D -> G -> H -> I -> J and the critical duration is 890 days (2.4 years).

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4.0 Project Cost Estimation
4.1 Introduction
As define by Project Management Body of Knowledge (PMBOK), cost estimation is the
iterative process of developing an approximation of the monetary resources needed to complete
project activities. Project cost estimating plays significant role by acting as a primary element in
a project which might affect the project design, planning, monetary cost control and monitoring.
An initial cost estimate can determine whether an organization greenlights a project, and if the
project moves forward, the estimate can be a factor in defining the project’s scope.
The cost that is associated with this proposed project include both the initial capital cost
and the subsequent operation and maintenance cost. It is client’s desire to achieve the lowest
possible net project cost, which mean to say the investment cost and how to recover such cost.
In order to produce an accurate cost estimation for this propose project, construction cost
handbook, which is the ARCARDIS Handbook 2019 has been used to obtained the relevant cost
data which are up to date. The relevant construction cost fit for this proposed project includes
the elevated carpark and shopping centres. Development cost which comprises of administration
fees, professional fees, legal fees, planning fees and contingencies are based on percentage of
the total construction cost.

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4.2 Data used for project cost estimation
i. Shopping Centres RM 3,507.50/m2
ii. Elevated Carpark (less than 4 levels) RM 1,180.00
i. Administration Fees : 2% of construction cost
ii. Professional Fees : 10% of construction cost
iii. Legal Fees : 2% of construction cost
iv. Planning Fees : 2% of construction cost
v. Contingencies : 5% of construction cost

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4.3 Gross Development Cost
Building Part Build-up Area (m2) Rate (RM/m2) Construction Cost
Carpark 2360 3,507.50 8,277,700.00
Hypermarket and
Shop-lots
4130 1,180.00 4,873,400.00
Total Construction Cost 13,151,100.00
Table 4.1 Construction Cost
Percentage
Allowance (%)
Construction Cost
(RM)
Development Cost
(RM)
Administration Fees 2%
13,151,100.00
263,022.00
Professional Fees 10% 1,315,110.00
Legal Fees 2% 263,022.00
Planning Fees 2% 263,022.00
Contingency 5% 657,555.00
Total Development Cost 2,761,731.00
Table 4.2 Development Cost
Gross Development Cost (GDC) = Construction Cost + Development Cost
= RM 13,151,100.00 + RM 2,761,731.00
= RM 15,912,831.00

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4.4 Operation Cost and Maintenance Cost
The client is required to rent the land for RM 15,000.00 per month for a period of 20 years
and would complete the whole development of this propose project under the client’s expenses, it
is assume that the client should bear the whole operation and maintenance cost for 20 years without
any contribution by Taylor’s University. Besides, inflation rate were also needed to be taken into
consideration. It is assume that the monthly expenses should be subjected to a 5% increase every
6 years.
Element Cost (RM/month) Annual Operation Cost (RM)
Land Rental 15,000.00 180,000.00
Maintenance Cost 20,000.00 240,000.00
Electricity and Water Expenses 50,000.00 600,000.00
Total Annual Operation Cost 1,020,000.00
Table 4.3 Operation and Maintenance Cost
4.4.1 Total Operation Cost and Maintenance Cost due to Inflation Rate
Inflation Rate (%) Annual Cost (RM)
Total Operation Cost
(RM)
Year 1-2
Planning and
Construction stage
12,000.00 24,000.00
Year 3-8 1st
maintenance cost 1,020,000.00 6,120,000.00
Year 9-14 5% 1,071,000.00 6,426,000.00
Year 15-20 5% 1,124,550.00 6,747,300.00
Total Operation Cost 19,317,300.00
Table 4.4 Total Operation and Maintenance Cost subjected to inflation rate
Total Estimated Project Cost = Gross Development Cost + Operation and Maintenance Cost
= RM 15,912,831.00 + RM 19,317,300.00
= RM 35,230,131.00

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4.5 Potential Profit
The source of potential profit for this propose development over the period of 20 years
comes mainly from the rental of hypermarket at Ground Level and shop-lots at Level 1 and Level
2. Besides, potential profit also includes parking fares which consist of reserve parking at Level 1
and Level 2, season parking at Level 3 and Level 4 as well as visitor parking at Level 5 with
different rates respectively. Rental rate of hypermarket and shop-lots as well as parking fare are
shown in the Table 4.5 and Table 4.6 respectively
Size (sqf) Rental (RM/sqf)
Hypermarket (Ground Level) 12701.52 10.00
Shop-lots (Level 1)
Type A
Type B
1076.40
538.20
9.00
11.00
Shop-lots (Level 2)
Type A
Type B
1076.40
538.20
10.00
12.00
Table 4.5 Rental rate
Type of Parking No. of Parking Lots Fare (RM/month) Fare (RM/entry)
Reserve Parking 30 220.00 -
Season Parking 45 120.00 -
Visitor Parking 30 - 5.00
Table 4.6 Parking fare

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4.5.1 Estimates Income
Base on the rental rates and parking fare as shown in Table 4.1 and Table 4.2, estimated
monthly income, annual income and total income of the propose development for duration of 20
years were calculated as shown in Table 4.7 and Table 4.8.
Monthly Income
(RM/month)
Annual Income (RM/year)
Hypermarket 127,015.20 1,524,182.40
Shop-lots 86,112.00 1,033,344.00
Parking 12,300.00 147,600.00
Total Annual Income 2,705,126.40
Table 4.7 Estimated Annual Income
4.5.2 Total Estimated Income due to Inflation Rate
Inflation Rate (%)
Annual income
(RM)
Total Income (RM)
Year 1-2 Planning and Construction stage
Year 3-8 - 2,705,126.40 16,230,758.40
Year 9-14 5% 2,840,382.72 17,042,296.32
Year 15-20 5% 2,982,401.86 17,894,411.14
Total Income 51,167,465.86
Table 4.8 Total Estimated Total Income due to inflation rate

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4.5.3 Net Present Value
Net Present Value for this propose development is RM 4,154,696.32 as shown in Table 4.5
below. The reason why NPV was calculated is to determine whether this propose project will
benefit the client. By having a positive NPV at a PV factor of 5%, it shows that this propose project
is acceptable and can be proceed.
Table 4.9 Net Present Value
4.6 Net Profit over 20 years period
Based on the Gross Development Cost, Operation and Maintenance Cost and Estimated Income
calculated in the previous section,
Net Profit = Total Income – (Gross Development Cost + Operation & Maintenance Cost)
= RM 51,167,465.86 – (RM 13,151,100.00 + RM 10,856,039.57)
= RM 15,937,334.86

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4.7 Payback Period
Gross Development Cost RM 15,912,831.00
Average Annual Cash Flow RM 1,592,508.29
Payback Period 10 Years
The estimated payback period for this proposed development would be 10 years.

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5.0 Project Quality Management
5.1 Introduction
Project Quality Management is an important aspect that is essential to be undertaken for a
project to achieve the clients and users’ needs, desires and expectations. It is important for the
project team to develop a good relationship with the clients and stakeholders, especially those of
higher investment in order to understand their definition of quality. As a commercial building that
comprises of parking lots, supermarkets and shop lots, a considerable amount of attention on
construction quality has to be given to fulfill the standard of building quality, performance,
durability and reliability which can be accomplished with a properly-planned project quality
management. Quality has to be perceived equality in relation to scope, schedule and budget. A
product of high quality needs efficient quality management techniques and should not only satisfy
consumers’ needs but exceeds them. Having higher quality needs to be focused on rather than
emphasizing on quantity to ensure the survivability of the development. Hence, this section
highlights on the types of quality management used throughout the project cycle.
5.2 Recommendations
For this project, there are a few project quality management techniques that are
recommended to achieve the high quality of building works as well as achieving clients and users
satisfaction level in terms of their needs, desires and expectations.

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5.2.1 QLASSIC
QLASSIC, also known as Quality Assessment System in Construction, was introduced by
Construction Industry Board Development (CIDB) Malaysia on 2007. Singapore has a similar
system which is called Construction Quality Assessment System (CONQUAS) and because of its
successful and effective implementation, CIDB developed their own CONQUAS with several
changes and hence the name QLASSIC. QLASSIC is one of the recognized tools to ensure where
it lay out the requirements for various construction elements in building such as architectural,
mechanical, electrical and external works. The quality of workmanship and finishes will be
accessed in accordance to the specification of Construction Industry Standard (CIS) where points
will be allocated to those that complies to the standards. These points were then totaled up to
obtained the QLASSIC Score (%) where it is advisable to a building project to score 70% and
above. However, the assessment excludes works such as piling, foundation and substructure works,
which are heavily equipment-based and called under separate contracts or subcontracts.
The objective of QLASSIC was designed and established to enable the following objectives:
a) to benchmark the level of quality of the construction industry in Malaysia
b) to have a standard quality assessment system for quality of workmanship of building projects
c) to assess quality of workmanship of a building project based on CIS 7 standard
d) to evaluate the performance of contractors based on quality of workmanship
e) to compile data for statistical analysis
The adoption of QLASSIC, where the minimum requirement of building construction
project has to achieve a score of 70%, has to be incorporated in the tender documents and contract
documents before the project is awarded to a tenderer. With that, it ensures the awarded contractor
to conduct the work in accordance to the requirements. The contractor’s company details and any
other relevant details must be provided together to assure that the contractor is competent enough
to provide the quality standard. Apart from that, the contractor will also have to ensure that the

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work carried out are in terms of the quality standard set out since an assessment will be conducted
on the first inspection of work. By providing a benchmark for quality of work, the contractor will
also construct the building in accordance to the criteria laid out for each building element within
the scoring system. For example, tiling works will be accessed by an accessor on site based on
visual appearances.
When implementing QLASSIC, the building is accessed mainly on the standards of
workmanships that can be accomplished with site inspection and field testing. The score will be
calculated on the construction works that are inspected for the first time where the contractor’s
modification after the assessment will not be rescored. The purpose of this practice is to encourage
contractors to “Do things right the first time and every time”. Throughout the construction stage,
the assessment of site inspection is conducted for the structural and M&E works and after building
completion, the assessment is carried for architectural, M&E fittings and external works. As for
the field testing assessment, materials and functional performance of selected building services
and installations are tested on to help determine if the quality of building workmanship is in
accordance to the standard as well as for the users’ comfort and safety. In addition to that, field
testing is also used to help ascertain defects which may only be detected after a period of time.
QLASSIC’s implementation in the building construction project reduces the quality risk
for the client where the contractor instead would be the one bearing the risk as well as protecting
the client’s interest. The QLASSIC assessor is an independent individual third party who have no
personal interest or relation to the project. CIDB are responsible for coordinating and certifying
the QLASSIC assessors who have the most updated relevant information on a regular basis to
provide a flexible and practical incorporation of the assessment. This secures an unbiased and
accurate results of the assessment of project which will be proper and ethical to both parties.

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Figure 5.1: Allocation of weightage for components of building construction works according to building
category
5.2.2 Project Quality Planning
Quality planning can be defined as the quality standards are relevant to the project and
determining how to satisfy them. It involves developing a quality plan and a quality checklist that
will be used during the project implementation phase. This checklist will ensure the project team
and other actors are delivering the project outputs according to the quality requirements. Once the
project has defined the quality standards and quality characteristics, it will create a project quality
plan that describes all the quality definitions and standards relevant to the project.
To comply with the rules and provisions are very complicated and comprehensive task
where it is essential to determine all quality requirements including the detailed and straight
forward terms of necessary measures to achieve those said requirements. The quality expectations,
assign roles and responsibilities to management structures, project policy and standard, compliance
criteria, the participation in the quality control process and identify a set of procedures and metrics
to be used to determine performance quality levels can be defined as quality planning. In other
words, the Quality Assurance Plan will be applied if authorized by the projects Consortium. The

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project partners have the duty to prepare and produce overall project management and quality
control.
The quality planning also describes the conditions that the services and materials must
possess in order to satisfy the needs and expectations within the scope of the project. It describes
the situations or conditions that make an output fall below quality standards. This information is
used to gain a common understanding among the project team to help them identify what is above
and what is below a quality standard. The quality planning also includes the procedure to ensure
that the quality standards are being followed by all project staff. The quality planning also includes
the steps required to monitor and control quality and the approval process to make changes to the
quality standards and the quality plan.
Templates will be made for documenting the contemporary records of the project in the
way of good bookkeeping which is project documentation. The purpose of reporting and
monitoring the projects are for documentation used. For instance, permits, delivery order, company
financial status of contractors, organizational structure, previous project records, site diary and
notice and testing report. Referring to the minor detail of the project, the quality can be insured.
Clients can be protected when there is a dispute that happens in the contract period because the
documentation can be as a proof of work done and products delivered.
Furthermore, flowcharting techniques in quality management generally include the cause
and effect diagram and process of flow charts. Flowcharting can help in anticipating probable
quality problems and thus helps to develop approaches for dealing with clients. It may affect the
next work of different areas in the project. For instance, the process flow chart would be the critical
path method. It determines what is the most essential item in the whole process of the project
therefore it will highlight the item that might cause a delay and deterioration of quality.

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In addition, test plan shall include in the quality planning due to the test results can be
determined the quality of work that is necessary requirements of the project. Load testing, impact
testing, exposure site testing, strength testing, weatherability, durability and testing of settlement
are the test results. The test results that submitted is for analyzing and confirming the work is
completed in accordance to the specification.
5.2.3 Video Documentation
A quality video documentation is needed to record the construction process. It can be used
on the site that important and complex areas. By placing the recording tools on the certain area
around the site, it enables monitoring and recording the process of construction. It can also provide
a wide angle view for monitoring. Once the works have been executed, the video recording will
commence and the footage captured will be saved in a storage device. To control and maintain the
work quality in accordance to the quality and specification, it will be inspected by a specialized
employee weekly.
Furthermore, third party will be hired which is a neutral and independent experienced
professional on analyzing the video footage. A fair and clear checking are the responsibilities of
third party. In order to eliminate potential deceit of contractors or clerk of work, the whole
construction process is documented and analysed which is different from the traditional assessment
which focus only on the end product. Therefore, the quality of work can be controlled and achieved
a better quality of workmanship.

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6.0 Project Risk Management
6.1 Introduction
Construction risk management is a significant aspect of development planning.
Understanding the risk is extremely important as to prevent any cost overrun or other issues that
could arise. This requires a consistent structuring of the enterprise and continuous risk
management when carrying out construction projects. Risk management helps to mitigate most of
the risk but not completely eradicate all possible risk in the construction project. Through this
method, risk can be identified throughout the construction process from pre-construction to post
construction stage. With this method, client can observe the overall performance of the project,
ensuring that the risk can be used to create opportunities. There are 5 steps in preparing a risk
management process.
Figure 6.1: Risk Management Process

34
6.2 Identification of Risks
The first step is to identify all the potential risks that could arise on the construction project.
There should be a carefully review on the bidding documents, plans, and specifications for the
project. For the purpose of this study, we will be considering external risk and internal risk.
6.2.1 External Risks
For the identification of external risks, we will be adopting a method called PESTEL
analysis. PESTEL analysis is a abbreviated form for Political, Economic, Social, Technological,
Environmental, and Legal.
6.2.1.1 Political
Political Risks comes from the change on government regulation that could have a direct
or indirect effect on the construction industry. This risk is extraordinarily obvious in the present
condition because of the adjustment in government. New government policies are expected to take
effect.
One of the most recent change is the removal of Goods & Services Tax (GST) and replaced
by Sales & Service Tax (SST). One of the benefits that came from this policy is that construction
material will be exempted from the taxes, according to our current Minister of Finance, Lim Guan
Eng. Based on this, many construction project will kick start as construction will have a significant
reduce in construction cost. Therefore, it helps to boost the economic activity of the country.
However, one of the significant change is that the government are reviewing all the
government construction projects. This may cause a standstill in government affiliated projects, in

35
which causes conflict and dispute. Based on the finances of the contracting companies, they may
face cash flow issue if the review is not done properly. In which will cause loss of profit and
additional cost. However, this might not affect our development tremendously, as the cost of our
building isn’t significantly high to require a major review from the government.
6.2.1.2 Economic
Economical risk is the economic background of the country. Based on the status of the
economic it could affect directly to the cost of the construction projects. The factors that greatly
affects the cost of construction project is the currency of the exchange rate and income of consumer.
As mentioned earlier, the exchange rate is one of the factor that greatly affects the whole
construction due to importing building materials from different parts of the country. We shall take
America as an example for the imported goods. The figure below shows the fluctuation of currency
rate from 1 Dollar (USD) to Malaysian Ringgit (MYR). Looking at a year view, we can see that
there is a difference in the rate. Based on the graph, it shows that May 2018, 1 USD equals to 3.99
MYR, whereas May 2019 1 USD equals to 4.19. This shows that a higher cost is required to obtain
the desired building material to be constructed.
Figure 6.2: Fluctuation of currency rate of USD to MYR in 1 year period.

36
Furthermore, the current economic growth will impact the income of the consumer. The
development we are building is a multi-storey carpark with retail shop, thus the demand on our
services are heavily dependent on the income of our consumer. The average monthly salaries and
wages received by paid employees in Malaysia increased 8.1% to RM2,880 in 2017 from RM2,657
in 2016, according to the Department of Statistics Malaysia (DOSM). Meanwhile, median monthly
salaries rose 7.7% per annum to RM2,160 in 2017 from RM2,000 in 2016.
Figure 6.3: Average salary of Malaysian in 2017
6.2.1.3 Social
Social factors are also known as socio-cultural factors, and include demographics, cultural
trends, population size and so on. The social is one of the main risk that need to take consideration
into our projects to identity if the public are willing to spend on our facilities.
Taylor's University is a for-profit private higher education institution located in the
suburban setting of the medium-sized city of Subang Jaya with a population range of 500,000-
1,000,000 inhabitants. Taylor's University has an enrolment range from 15,000-19,999 of students.
Based on this amount more that 50% of the student drives to campus every day. However, there
aren’t many proper parking space provided by Taylor’s. In which students are force to park at
places that has terrible road condition and no proper coverage from weather. This cause lots of

37
frustration among students. As cars are subject to more maintenance, due to the potholes and
bumpy roads.
However, since our building is saturated next to the commercial block (Spoz) where there
are plenty of shop available to student. This will lead to competition between our building, since
the shops are closer to the classroom, in which students require longer time to walk to our facilities.
This may lead to lower demand for the retail in our building.
Despite that, this may be considered an opportunity as our development is mostly focus on
the carpark space that will be provided to students. As for shops, students might take an extra step
to try our new restaurant and places to hangout.
6.2.1.4 Technological
As years goes by and technology advances. More and more construction technologies are
being implemented into the construction industry. Industrialized Building System (IBS) is the most
common modern technology applied in construction industry now to improve in terms of quality,
cost and time. While it may provide speed in project, but the uncertainty in cost due to inexperience
and uncommon usage will lead to a serious risk.
6.2.1.5 Environmental
Environment risk is basically the surrounding environment factors which will affect the
constructions progress. It is a must to identify the possible environment risk to ensure a smooth
constructions projects.

38
The access into Taylor’s will cause a huge problem during construction period. The
diversion of temporary traffic planning must be managed carefully. This is because, the road to
Taylor’s narrow and there is one entrance and one, there is also a traffic problem after 5pm as
majority of the student are heading back after class in which will affect the construction site. Thus,
the planning of traffic must be very wise to not affect the daily traffic status especially the student
as they will need to attend classes and exam. This would be a risk to affect the construction
project’s progression.
Moreover, careful foundation needed to be chosen for the use of development, as any form
of vibration should be minimized to avoid disturbance to the student and damages to neighboring
property.
Pollution is one of the possible environment risk that will cause work to stop. This is
because the development is next to restaurant that students will have their meal. As our projects is
facing the famous lakeside in Taylor’s, so the pollution such as water pollution must be handled
carefully and avoided.
Lastly, the weather in Subang Jaya is very important which it will affect the progress of
the construction. The weather forecast historical data collected from a year showed in the figure
below stated that there will be higher chance of cloudy sky starting from March to December. Thus,
the raining weather might be one of the environment risk affect the construction progress. Due to
the raining season, it will affect transportation during construction period and accidents are prone
to happen. So, careful management is needed.

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Figure 6.4: Annual Weather report in Subang Jaya 2018
6.2.1.6 Legal
Legal risks stem from a change in legislation that may affect the construction process. One
example of such issue is a change in Local Authority requirements or statutory requirements such
as UBBL. However, these changes are very rare, and since this project has gained all required
approvals, it is safe to proceed without employing huge extent of risk mitigation in this area.
6.2.2 Internal Risk
Internal risk is the risk that is under the control of the Project Manager. These can give
uncertainty then affect the project. This type of risk is identified throughout the whole construction
process, from Pre-construction Stage, Construction Stage to Post-construction Stage. In this case,

40
we are about to construct a mixed development which consists of hypermarket, shoplots with car
park.
6.2.2.1 Pre-Construction Stage
Severe mistakes made at this stage could affect the quality outcome of the project. There
will definitely be errors made in this stage, so risk management during this stage must be carried
out to avoid more issues. At pre-construction stage, there are 2 essential risks that will highly affect
the whole project if not properly resolved. The 2 risks are technical risk and financial risk.
1. Technical Risk
Technical risks will affect the product output of the project. It creates a barrier from
building the most ideal product that suits the customers. This can also include the management of
the materials, insufficient details of the site investigation, poor detailed design, and absence of cost
overrun analysis. These risks usually happened during the pre-construction stage and give a huge
impact to the project if risks are inadequately managed. Therefore, it is important that we have a
suitable car park design as well as for the hypermarket location
2. Financial Risk
Financial background is one of the most crucial element to the employer, without a positive
financial cash flow, the employer might have a chance to face bankruptcy; if this risk is done
adequately, the employers would be more than happy to continue this project because of the high
profit margin. Not only that, there will be also risks might be incurred due to the inflation, local
taxes, and fluctuation of foreign exchange. Well, as for Malaysia, the taxes will be according to
the Authority, and this must be taken into account before starting the project. In our project, car
park is one element that does not require lots of refurbishments, it is able reduce the financial risk.

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6.2.2.2 Construction Stage
The construction stage could be the stage where the highest risk incurred throughout the
construction project. At this stage, there are plenty of risks to bear with, which is managerial risks,
logistical risks, environmental risks, safety risk and organizational risk.
1. Managerial Risk
During the construction stage, it is very common that the plants and labours are at their
lowest productivity. These are all related to the management of resources. The management of
plants and labour shall be ensured before the construction starts. The person in charge of the
management of plants and labours must plan ahead that there is sufficient amount of skilled staff
and plants to avoid disastrous losses and expenses.
2. Logistical Risk
The best logistics management is to make sure that the delivering materials into the
construction site and workers are able perform without incurring any delays important can enhance
efficiency and productivity, having a positive overall impact on cost and time. Not to forget that a
good logistics management will always deliver materials to site on time.
3. Environmental Risk
The Malaysia’s construction industry professionals should be grateful that there is no
natural disaster ever happened in Malaysia. However, they should be aware of the climate changes
after the mid-year. Foreigners working in this country should always be alert that this country is
humid and hot throughout the year. Therefore, it is important for foreign professionals who work
in this country to manage according to the climates.

42
4. Safety Risk
Every construction players knows that the industry can be lethal to work in, because of the
heavy machineries and working at heights conditions. The inadequate workers should be
eliminated from the construction site to avoid fatalities. Accidents are difficult to be avoided,
therefore it is best to have well-trained workers to work in the hazardous site.
5. Organizational Risk
The most important requirement in an organization is communication. A well-
communicated organization can improve the efficiency of the work. For instance, if the contractor
told the consultants to help to rent a specific plant to the site during a site meeting, and the
consultants didn’t communicate who should be renting, ending up renting 2 same plants. The
employer will then incur losses due to poor communication in the team.
6.2.2.3 Post-Construction Stage
The post construction stage consists of the closure of the final account, contract
administration process and completing the defective works. It is usually a closeout process, and
ready for vacant possessions. The employers usually have enough the capital for lifelong cost for
the building and also facing some of the risk in this stage.
1. Operation risk
In this case, if the project in the proposal mentioned was built, it might not meet the
expectations. The cost of the mixed development might be higher by a certain amount of %, which
is the most unsatisfying outcome for the employer. As for the car park suggested, we might incur
losses as we did not conduct a survey on the employees as well as the students perception on the
extra paid car parks. The highest risk to build this development is the hypermarket. If Jaya Grocer

43
or any other hypermarket company does not want to build a branch in our development, we will
incur the highest loss as the hypermarket could be our highest passive income.
2. Maintenance risk
Maintenance cost can be ridiculously spiking if not managed properly. Our car parks must
be well maintained because of the location suggested. It is not enclosed and locates beside near to
the LDP highway. Therefore, there will be much more dust as compared to the closed parking in
the area but the ventilation will be better. Furthermore, the hypermarket must be well taken care
for its ventilation, as mentioned it is located near the LDP highway therefore, if the ventilation is
not working, it might cause a bad impression to the customers.
6.3 Analysis of Risk
Risk analysis is one of the most significant procedure when it comes to construction
projects. It is a proven way of accessing and identify the negative impact to the organization. By
that, the organization is able to eliminate risk and making positive impact decision to the project.
Risk analysis can be conducted into 2 different ways -- Qualitative and Quantitative Risk Analysis.
6.3.1 Qualitative Risk Analysis
The main purpose of Qualitative Risk Analysis is to identify the risk that may occur. This
gives and alert to the employees to be aware of the possible effect. Qualitative analysis is able to
show the risk faced in the identifying risk process without any mathematical analysis. It does not
identify the probability and likelihood either. Instead, the risk analysis data is collected through
judgment of experts. In this, we assess individual perception of risks by allocate a numeric ranking
of probability and impact. Qualitative Risk Analysis is a widely used process in almost all the
projects.

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6.3.2 Quantitative Risk Analysis
The purpose of Quantitative Risk Analysis is similar to the Qualitative Risk Analysis. It is
to eliminate possible negatively effect by calculation. Quantitative Risk Analysis uses a method
which is by calculating the probability distributions to show the risks probability proportion to the
outcome. It uses the project model (e.g., Schedule, cost estimate), mathematical and simulation
tools to calculate the probability and impact. It predicts likely project impacts in relation to cost or
time based on combined effects of risks. It also estimates the likelihood of meeting targets and
communicates contingency needed to achieve the desired level of comfort. We don’t use this
process in simple and moderately complex projects. We may not find its use in software projects.
6.3.3 Risk Matrix
Risk Matrix is one of the method used internally in the construction industry. It is a safety
tool for risk evaluation. This method is used by categorizing “probability” and “severity” to
measure whether the risk is serious and can bring huge effect to the organization. It is classified
into 3 major groups which is Acceptable Risk (Green), Low Risk (Yellow) and Unacceptable Risk
(Red).
Figure 6.5: Method to conduct risk analysis

45
The figure 6.5 shows the method to conduct risk analysis. The rows show the level of
probability by numeric, which is 1 to 5, where 1 shows the least probability and 5 shows the highest
probability and the columns show the level of severity, which is A to E, where A shows the least
severe and E shows the most severe.
6.4 Responding to Risks
After completing the risk matrix, it is essential to analyse and identify the level of impact
of risks. The following table will prove which component has the acceptable risk, less risk and
unacceptable risk.
Type of Risk Probability Severity Score Recommendation
Political Risk
Changes in policy 2 B 2B Keeping track of the government
update to identify if the change is
severe or it could benefit the
industry.
Reviewing Projects 3 A 3A
Economic
Exchange rate 4 C 4C Careful evaluation is needed to look
into the economic risk to properly
identify the treats.
Consumer Income 2 D 2D
Social
Demand 4 A 4A There will be a high demand in
parking spot as the university does
not provide proper parking space
Competitors 3 D 3D

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for students. Therefore, not much
emphasis should be placed on this
aspect. However, proper marketing
strategy should be used to overcome
the competition issue. As it may be
a problem.
Technological
Implementation of IBS 1 C 1C Further decision will be needed to
make as the overall construction
cost does not match the CIDB
requirement for adoption of IBS.
Environmental
Traffic 5 D 5D Proper pre-planning must be done
to avoid the traffic issue. As for
pollution and weather isn't a serious
issue in the area but careful
observation is needed
Foundation 3 C 3C
Pollution 2 A 2A
Weather 4 A 4A
Legal
Change in Local
Authority Approval
1 C 1C This isn’t a serious issue but a
proper meeting should be organize
to avoid any miscommunication.
Change in Building
Standards
1 C 1C
Pre-Construction
Stage

47
1. Technical Risk
• Changes in
design
• Addition of
column
• Plaster
availability
2. Financial Risk
• High taxes
• High inflation
rates
• Employer’s cash
flow
4
2
1
3
3
3
D
E
A
C
D
D
4D
2E
1A
3C
3D
3D
Consultants should recommend
proper design to the client to avoid
amending drawing.
Financial advisors shall be
appointed to assist the employer in
deciding regarding the cash flow as
well as the market trend.
Construction Stage
1. Managerial Risk
• Insufficient
adequate
workers
• Less
productivity
plants
2. Logistical Risk
• Fuel supplier
availability
2
4
1
1
B
B
A
B
2B
4B
1A
1B
Consultants should recommend
proper design to the client to avoid
amending drawing.
Financial advisors shall be
appointed to assist the employer in
deciding regarding the cash flow as
well as the market trend.

48
• Rare spare parts
supplier
3. Environmental
Risk
• Heavy
downpour
weather
• Hot and humid
weather
• Earthquake
4. Safety Risk
• Untrained
workers
• Inadequate
professionals
• Irresponsible
workers
5. Organizational
Risk
• Poor
communication
risk
• Terrible
behavior
employees
4
5
1
3
2
3
3
2
E
D
E
C
B
D
D
C
4E
5D
1E
3C
2B
3D
3D
2C
Might consider about the period of
construction. Earthquake is nearly
impossible in Malaysia. But be
aware of the weather in Malaysia.
The company should always hire
skilled and responsible workers to
avoid high risk of accidents in the
construction site.
A proper meeting should be
organize to avoid any
miscommunication.

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Post-Construction
Stage
1. Operation Risk
• Unable to rent
out units
2. Maintenance
Risk
• Poor ventilation
system
maintenance
• Poor appearance
4
4
5
C
B
A
4C
4B
5A
Marketing team shall implement
more resources into advertising and
promoting.
Hiring professional car park
builders as well as maintenance
professionals.
6.4.1 General Approaches of Risk Response
To proceed with building of this project, there will be solutions to the risks. There are a
total of 4 solutions to resolve risk, which is to avoid, to transfer to mitigate and to accept.
To avoid risk is to eliminate all possible effect after proceeding with the specific actions.
It also means to reduce the risk probability to zero. And this usually is an amendments in the
project plan. For example, using load bearing wall as the internal wall might cause difficulty to
refurbish, therefore, using non-load bearing wall is more appropriate.
Transferring risk is meant by shifting risk from one to another to avoid disastrous losses.
A good example of transferring risk is buying insurance for the project. Whatever disasters

50
happened and destroy the building, the financial company will incur the losses instead of the
employer.
Mitigating risk is one of the most important action to the industry. It is by reducing the risk
on behalf of the person involved of incurring losses. It also sounds like having a backup plan. To
seamlessly complete the project, the employer must always have a second option in mind to avoid
time wasting.
Lastly is to accept the risk. By accepting the risk, it means that the employers have to come
up with a solution on the problems facing ahead. For instance, Malaysia’s weather can be
ridiculous at times. A heavy downpour can happen right after a sunny day, therefore the employer
must accept that and come up with a second plan if it starts to rain heavily to reduce losses.
6.5 Risk Monitoring
Risk monitoring strategy is by gathering all information of risk either by automated or
manual, analyzing the risk and making the best decision to proceed with the work. The word
monitoring also means to always check on the presence of consequences of the risk. Then having
a record of the risk management also helps in future developing projects.

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7.0 Project Procurement Management
7.1 Introduction
A formal process to obtain goods and services is known as procurement. Project
procurement management aims to establish relationships between organization’s purchasing
department and external suppliers to order, receive, review and approve all the procurement items
necessary for project execution. The process aims to ensure timely delivery of the purchased items
which are selected and acquired according to the specifications and requirements. Managing
project procurements and acquisitions requires the project manager to efficiently collaborate with
the purchasing department.
In procurement management, the project manager’s roles and responsibilities are: -
• Able to create, read, understand and manage contracts
• Ensure scope of works and project requirements are included in the contract
• Involves in contract negotiation to maintain relationship with the contract parties
including contractor, subcontractor, designer, vendor, etc.
• Protect the integrity of the contract
• Works with procurement manager to manage changes to the contract
• Works with procurement department throughout the procurement process
• Ensure all work such as reporting, inspections and legal deliverables are met
7.2 Project Procurement Management Process
The figure 7.1 shows an overview of the project procurement management processes which
include plan procurements, conduct procurements, administer procurements, and close
procurements. This project proposal will be focused more on plan procurements stage as it is the
initial step of the whole process.

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Figure 7.1: Overview of the project procurement management processes
As referred to Project Management Body of Knowledge (PMBOK), plan procurements is
the process of documenting project purchasing decisions, specifying the approach, and identifying
potential sellers. With the inputs and usage of tools and techniques, the procurement manager or
project manager should carry out the following tasks: -

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• Facilitate to create a Procurement Management Plan
The procurement management plan describes how the procurement processes will
be managed from developing procurement documents through contract closure.
The figure below illustrates the procurement management plan in details where the
subsidiary components are proposed in the previous section of this project proposal.
Figure 7.2: Input and output of the project procurement management processes

54
• Create Procurement Statement of Work (SOW)
The statement of work for each procurement is developed from the project scope
baseline and defines only the project scope that is to be included within the contract.
Information included in a SOW can include scope of work, location of work, period
of performance, deliverables schedule, applicable standards, acceptance criteria,
special requirements and etc.
• Determine type of contract
The risk shared between the buyer (client) and seller (contractor) is determined by
the contract type and specific contract terms and conditions. The decision of
contract type that the buyer and seller will be entered into for this project will be
established in future. The contract types available in use are listed as below: -
● Firm Fixed Price Contracts (FFP)
● Fixed Price Incentive Fee Contracts (FPIF)
● Fixed Price with Economic Price Adjustment Contracts (FP-EPA)
● Cost Plus Fixed Fee Contracts (CPFF)
● Cost Plus Incentive Fee Contracts (CPIF)
● Cost Plus Award Fee Contracts (CPAF)
● Time and Material Contracts (T&M)
• Determine procurement document
Procurement documents are used to solicit proposals from prospective sellers.
Include request for information (RFI), invitation for bid (IFB), requests for
quotation (RFQ), requests for proposal (RFP) and etc. Project manager’s role is to
ensure that the documents accurately describe the work to be completed by the
vendor, the evaluation techniques to be used to select the vendor and the methods
by which the contracted deliverables will be evaluated.

55
• Source Selection Criteria
Selection criteria are often included as a part of the procurement documents. The
criteria are developed and used to rate and score the seller proposal as assessment
in terms of the followings: -
● Purchase price
● Life cycle cost
● Technical capability
● Risk
● Management approach
● Technical approach
● Warranty
● Financial capacity
● Production capacity and interest
● Business size and type
● Past performance

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7.3 Procurement Method
Traditional procurement method as known as design/bid/build type contracting system is
recommended in this project. This is the most commonly used method in Malaysia especially in
procuring building work. The procedures are well known and familiar to the professionals in the
construction field. The contractual relationship and coordination are illustrated in the figure 5.3.
Figure 7.3: contractual relationship and coordination
Traditional method benefits client in a way where they can control the quality of the work
and it protects their interest as the majority of works are designed by consultants who work directly
for the client. However, traditional method is not the fastest method, the project duration will be
longer compared to other procurement method. Therefore, the overall project planning from
commencement to completion is important. Although the duration will be longer but there is a
certainty on the time on the construction period before construction commences. Traditional
method provide certainty in construction cost and easier budgetary control due to design
completion at tendering stage. Therefore, traditional method provide medium time risk but low
cost and quality risk.

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7.4 Tendering Method
As for tendering method, the recommended tender method for this project is selective
tendering where only certain tenderers are invited to tender. The potential tenderers are selected
based on their integrity and ability before they are invited to tender. The consultants would have a
list of prospective tenderers which are selected by their track records and their suitability for the
nature and size of the project.
In the initial stage of selective tendering, there is a selection process of tenderers which is
known as pre-qualification stage. The interested tenderers will be required to send their company’s
profile to the consultant together with tender documents for assessment purposes. Only contractor
with experience in mix development project will be invited into the tender bidding. In this project,
there are a few contractors recommended by TK Builders and consultants. The criteria of selecting
potential contractor as following: -
• Financial capacity
• Organizational capacity
• Resource availability
• Technical capacity
• Relevant experience
A list of pre-qualified tenderers will then be included in the final tender list and invited to
collect the tender documents. The aim of pre-qualification stage is to eliminate potentially non-
performing tenderer, thereby reducing the risk of selecting inexperienced and unknown tenderers.
The selection of a well performing and experienced tenderer is crucial to ensure that the extension
can take place successfully and it meets all of the client’s requirements.
The list of pre-qualified tenderers will proceed on to the tendering process. After the
evaluation process of tender submissions, the most competent and suitable tenderer will be selected

58
to carry out the works for the project. The selection of tenderer to be awarded will not only based
on the lowest tender price but also the project quality and performance offered by the tenderer in
order to achieve balance in time, cost and quality. The selected tenderer will proceed on to the
negotiation process. The negotiation would take place until an agreement is reached and both
parties are satisfied, leading them to enter into a contract for construction works to commence.

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8.0 Project Summary
In a nutshell, the proposed project is a mix-development which comprises of 5 floors with
1 floors of hypermarket, 2 floors for shop-lots, 1 floor for reserved parking, 1 floor for season
parking and 1 floor for visitor parking. The purpose of this building is to provide more varieties of
restaurant, car park and ease of grocery shopping as there are few residential condominium nearby.
However, before beginning this proposed project, analyzing and identifying the strategies to
manage this project are important. This is to understand the construction project’s life cycle as it
consider various steps and precautions throughout the project. There are three stages in a project
life cycle, namely Pre-construction stage, construction stage and post-construction stage. Each
stage must be analysis to ensure a smooth construction.
After various considerations on the costing, timing, project quality and risk management.
We are able to identity the key elements to avoid and opportunity for the proposed project.
Although there might be some challenges along the way, such as students might not be interested
to pay a high amount for the parking space and the competition of shop might be high. Despite
that, the proposed development project will provide a strong competitive advantage, where there
is a hypermarket near various residential building. Allowing students, restaurant and even working
staff to have a convenient to purchase groceries without traveling far. This also provides more job
opportunities as newly shops require staffs and manpower to operate their business.
Lastly, looking at the estimation part, it proves to be a profitable development in the long
run of 20 years. The profit generated from this project is estimated to be RM 15,937,334.86, after
all proper deduction on maintenance, etc. Even after 20 years, this building will continue to strive
and provide quality facilities to student and added benefit to students that are studying in Taylor’s
University.

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9.0 References
Procurement Management Overview. (n.d.). Retrieved from
https://www.greycampus.com/opencampus/project-management-professional/procurement-
management-chapter-overview
Project Procurement Management: 5 Steps of the Process. (n.d.). Retrieved from
https://mymanagementguide.com/project-procurement-management/
Symes, S. (2019, February 11). The Importance of Project Procurement. Retrieved from
https://bizfluent.com/info-8599737-importance-project-procurement.html
What is Critical Path? (n.d.). Retrieved from
https://2020projectmanagement.com/resources/project-planning/what-is-the-critical-path
Stephanie, R. (2018, January 3). Understanding Critical Path in Project Management. Retrieved
from https://www.projectmanager.com/blog/understanding-critical-path-project-management
Fondahl, J. W. (1962). A non-computer approach to the critical path method for the construction
industry. Retrieved from https://trid.trb.org/view/99661
The Ultimate Guide to the Critical Path Method (n.d.). Retrieved from
https://www.smartsheet.com/critical-path-method
Project Management Knowledge (n.d.). Retrieved from https://project-management-
knowledge.com/definitions/f/forward-pass/

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