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 PROPERT
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
Project owner
retains control
over design &
construction
Contractor &
consultant team are
familiar to solve
risks
SCENARIO D : TAYLOR’S UNIVERSITY MULTI-STOREY CARPARK
16. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
MAIN ISSUE:
Refurbishment of old rice mills DURING PROPERTY BOOM
Suitability
Traditional Procurement
Construction Management
Management Contracting
Design and Build
Suitable for experienced client
Suitable for fast track project
Favored by government
SCENARIO D : TAYLOR’S UNIVERSITY MULTI-STOREY CARPARK
17. TAN KAI XUAN | TAN SHEN SIN | TEE WAN NEE | TEO CHIANG LOONG
THE END
Editor's Notes
There are a few procurement method available in the industry, as we all know establishing a procurement strategy at the outset is key to a successful outcome. There are a few criteria which are time, cost and quality that we need to consider in developing procurement strategy. In most cases, the priorities of projects will fall into the are illustrated A, B and C in the diagram where two of the 3 criteria are identified as most important to project success. It is rare for t, c and q to be equal important in a project.
So for in this scenario, it is said that 6 weeks b4 cny, fire occurs in KLIA2 has damaged the booing hall. It is one of the busiet time of the year and could suffer a huge amount of profit if they aren’t able to cater for the holiday demand. Thus, it is crucial to fix this damaged airport. The procurement method I think that is suitable for this senario is MC. Why do I think so?
So, the main issue of the scenario is that the airport is heading towards one of the busiest time of the year. It is important to fix the problem in time to make sure they can cater the holiday demand as usual without facing any loss. Thus, it is much suitable to use MC because normally it is used on project where there is shortage of time, like the scenario above. Also, It is also suitable for complex building, airport might have a lot of arched roof. The arched forms of the roof structure and building structure that incorporate light walls to channel natural daylight from the roof to the first floor, all these required specialist to fix. Moreover, Mc is sub-contacted to specialist in work packages , this ensures the quality of the service provided.
Flexible in design
- It would cost a bunch when the client decided to change the project design here and there because the jobs are being done one by one by the sub cons and furthermore, the price certainty would not be achieved until the final work packages have been let, therefore, changes can be done
Cost Saving
As there would be contractors who are competing to hand in the tenders, the client would save more cost in choosing the lowest tender but not burdening to the contractor
Quality
Quality/design risk is low as the link between client, designers and contractors are close
As the designers and contractors are being chosen by the client, unlike the MC, the client would choose the most trustable to follow up on the designs and constructions that he wants.
The client wants to convert the old rice mills into high-quality residents, therefore, the cost certainty would be higher because the cost to hire a nominated contractor to work on the specialized designs that the clients wants are much higher than to hire a normal contractor.
The construction manager manages the works, but the employer has a major role in directing the project, therefore, the quality of the building would hit the target that the developer wants
Time Saving
– because the overall project as the design and construction are overlapped
As it is on the property boom period the completion time for the property to be ready to be sold is limited as the property would be difficult to be sold off during the property slump and as we know that property boom doesn’t last long and during property boom the time taken for a property to be sold is quicker.
Time Saving
– because the overall project as the design and construction are overlapped
As it is on the property boom period the completion time for the property to be ready to be sold is limited as the property would be difficult to be sold off during the property slump and as we know that property boom doesn’t last long and during property boom the time taken for a property to be sold is quicker.
Quality
Quality/design risk is low as the link between client, designers and contractors are close
As the designers and contractors are being chosen by the client, unlike the MC, the client would choose the most trustable to follow up on the designs and constructions that he wants.
The client wants to convert the old rice mills into high-quality residents, therefore, the cost certainty would be higher because the cost to hire a nominated contractor to work on the specialized designs that the clients wants are much higher than to hire a normal contractor.
The construction manager manages the works, but the employer has a major role in directing the project, therefore, the quality of the building would hit the target that the developer wants
Cost
As there are a lot of competitive
Cost Certainty
-it allows a certain amount of control over costs. In general, lump sum contracts result in a contractor agreeing to take on the responsibility for both the design and construction of a project for an agreed price. The contractor may have their own team of designers or may engage an outside firm.
Low Risk
Low risk option for client who wish to minimise their exposure to the risk of overspend, delays or design failure.
