This document provides details on the procurement strategy for a proposed RM 1.2 billion hotel and shopping complex development project in Kuala Lumpur. It recommends using a traditional procurement method with two-stage selective tendering. For the procurement, traditional method is suggested as it allows the client full design control and cost certainty. For tendering, two-stage selective tendering is proposed as it provides a transparent contractor selection process while ensuring only qualified contractors bid. The document also justifies the choices of lump sum contract and PAM 2006 form of contract for the arrangement.

1. Professional​ ​Practice​ ​1
(QSB60604)
Bachelor​ ​of​ ​Quantity​ ​Surveying​ ​(Honours)
School​ ​Of​ ​Architecture,​ ​Building​ ​&​ ​Design
Group​ ​Project
Name Student​ ​ID
Darren​ ​Tan​ ​Quan​ ​Wen 0322662
Ee​ ​Hui​ ​Teng 0322548
Lieu​ ​Xue​ ​Qi 0327523
Lim​ ​Hong​ ​Wei 0322741
Loh​ ​Mun​ ​Tong 0323680
Loo​ ​Siah​ ​Mong 0321995
Michelle​ ​Tung​ ​Man​ ​Kaye 0324175
Muhammad​ ​Fareez​ ​Bin​ ​Shahar​ ​Sham 0322961
Ng​ ​Sheng​ ​Zhe 0323830
Yip​ ​Xiaojung 0323852
Lecturer:​ ​Wong​ ​Chong​ ​Wei
​ ​​ ​​ ​​ ​Sr​ ​Ang​ ​Fuey​ ​Lin
Date​ ​of​ ​Submission:​ ​24th​ ​November​ ​2017

2. TABLE​ ​OF​ ​CONTENT
​ ​​NO. TOPIC PAGE
1. Introduction
1.1​ ​Purpose​ ​and​ ​Project​ ​Detail
1.2​ ​Requirements
1.3​ ​Overview
1
2. Procurement
2.1​ ​Traditional​ ​Procurement​ ​Method
2.2​ ​Advantages​ ​of​ ​Traditional​ ​Procurement​ ​Method
2.3​ ​Disadvantages​ ​of​ ​Traditional​ ​Procurement​ ​Method
2.3​ ​Timeline
2-5
3. Tendering​ ​Method
3.1​ ​​Advantages​ ​of​ ​two​ ​stage​ ​selective​ ​tendering
3.2​ ​​Disadvantages​ ​of​ ​two​ ​stage​ ​selective​ ​tendering
3.3​ ​​Justification​ ​on​ ​other​ ​methods
3.4​ ​​Tendering​ ​Procedure
6-9
4. 4.0​ ​Contract​ ​Arrangement
4.1​ ​Type​ ​of​ ​Contract
4.2​ ​Lump​ ​sum​ ​contract
4.3​ ​Why​ ​choose​ ​lump​ ​sum​ ​contract?
4.4​ ​Justification​ ​on​ ​other​ ​contract
4.6​ ​Advantages​ ​of​ ​Lump-Sum​ ​Contract
4.7​ ​Disadvantages​ ​of​ ​Lump-Sum​ ​Contract
4.8​ ​Form​ ​of​ ​Contract
4.9​ ​Why​ ​choose​ ​PAM​ ​2006​ ​(with​ ​Quantities)?
4.10​ ​Importance​ ​of​ ​Form​ ​of​ ​Contract
10-15
5. 5.0​ ​Bibliography 16
6.0 6.0​ ​References 17

3. 1.0​ ​Introduction
1.1​ ​Purpose​ ​and​ ​project​ ​detail
This proposal which contains where a client from an established public listed company, Landowner
WCW & AFL Berhad wishes to build an extension of the Kuala Lumpur Twin Tower by developing a RM
1.2 billion hotel and shopping complex in the center of the Golden Triangle, Kuala Lumpur with a
construction period of five (5) years. As a consultant, we will advise the client on the preferred
procurement route, method of tendering as well as selection of contract arrangement that serves as a
guidance for the client to obtain a comprehensive understanding on the issues and appropriate in order
to​ ​achieve​ ​the​ ​objectives​ ​setted​ ​by​ ​the​ ​client.
1.2​ ​Requirements
Requirements​ ​for​ ​the​ ​project​ ​are​ ​as​ ​follows:
● He wishes to have full control of design and able to introduce changes from beginning till the
completion​ ​of​ ​projects.
● Ensure that all quality and Health & Safety requirements are captured in the Contract and
maintain​ ​minimum​ ​variations​ ​to​ ​the​ ​Contract​ ​Price​ ​during​ ​construction.
● Complete​ ​the​ ​project​ ​on​ ​time​ ​and​ ​imposed​ ​Liquidated​ ​Damages​ ​of​ ​RM​ ​250,000.00​ ​a​ ​day.
● Only​ ​wants​ ​to​ ​deal​ ​with​ ​the​ ​few​ ​key​ ​members​ ​of​ ​the​ ​project.
● Selection​ ​process​ ​of​ ​successful​ ​contractor​ ​to​ ​be​ ​reasonably​ ​transparent.
1.3​ ​Overview
Various factors affecting the decision of implementing the best procurement strategy is proposed to the
client in the first part of this proposal. Following with the second part that covers the information of the
best tendering method selected and most importantly, the rationale of the choices. As for the last part of
the proposal includes the selection of the most suitable contract arrangement as well as
recommendation​ ​of​ ​the​ ​contract.

4. 2.0​ ​Procurement
Procurement is defined as the action of obtaining something. It includes the process of preparing and
processing a demand. In construction context, procurement process involves calling of tender and
appointment​ ​of​ ​the​ ​main​ ​contractor​ ​to​ ​execute​ ​the​ ​works.
2.1​ ​Traditional​ ​Procurement​ ​Method
For this project, we recommend Traditional Procurement Method. Traditional Procurement Method is the
most commonly used and long-established method for procuring main contractors to oversee a
construction project. By using this method, the employer appoints a group of consultants consisting of
architect, quantity surveyor and engineer to aid him in completing the design of the project. Once the
design is completed, the quantity surveyor is required to produce Bills of Quantities (BQ) according to
the drawings and call for tender which is to offer the potential main contractors to carry out the works.
Through the tender process, a main contractor is to be appointed to perform the works according to the
consultant’s design and in compliance to the contractual terms agreed between the parties. This method
is suitable for those who are unfamiliar with the industry. The diagram below shows the relationship
between​ ​all​ ​the​ ​parties​ ​involved​ ​in​ ​the​ ​project.

5. 2.2​ ​The​ ​advantages​ ​of​ ​Traditional​ ​Procurement​ ​Method​ ​are​ ​as​ ​follow​ ​:
1. Less​ ​Parties​ ​to​ ​Deal​ ​With
As shown in the diagram above, the employer holds contractual relationship with the contractor and
consultants but only require to coordinate with the consultant. This conveys that the employer only deals
with the consultants but not the contractor. If the client wishes to deliver any instructions to the
contractor, the consultants will relay the message to the contractor in accordance to any necessary
paperwork or order. This also shows the consultants act on behalf of the client which means that the
employer​ ​does​ ​not​ ​need​ ​to​ ​deal​ ​with​ ​too​ ​many​ ​parties.
2. Full​ ​Control​ ​of​ ​Design
The client holds full control over the design of the project. In Traditional Procurement method, the
architect designing the project is employed by the client in early stage of the development process. This
shows that the employer will be able to instruct the architect to design according to his instructions and
his​ ​wants.​ ​The​ ​project​ ​will​ ​not​ ​proceed​ ​until​ ​the​ ​employer​ ​is​ ​fully​ ​satisfied​ ​with​ ​the​ ​design.
3. Cost​ ​Certainty
Traditional Procurement Method provides cost certainty. The tender process will only commence after
the completion of design phase. Since the tenders are based on completed design this conveys that the
project outcome will not differ much from the drawings in tender document. This minimises the risk of
price​ ​variation​ ​which​ ​provides​ ​cost​ ​certainty.
4. Ability​ ​to​ ​Introduce​ ​Changes
According to PAM Contract 2006 (With Quantities) Clause 11.0, Employer can introduce changes to the
project from the beginning to completion of the project. Client is able to make any changes or
amendments throughout the project duration before the issuance of Certificate of Practical Completion
(CPC)​ ​by​ ​instructing​ ​the​ ​architect​ ​to​ ​issue​ ​variation​ ​order​ ​to​ ​the​ ​contractor.
5. Cheaper​ ​Tender​ ​Price
At tender stage, the contractor prices the Bills of Quantities (BQ) with a completed design and measured
quantities. This lowers the cost risk for contractor as the actual construction will not differ much from the
tender.​ ​This​ ​will​ ​subsequently​ ​result​ ​in​ ​cheaper​ ​tender​ ​price​ ​as​ ​the​ ​contractor​ ​bears​ ​lower​ ​risk.

6. 2.3​ ​The​ ​disadvantages​ ​of​ ​Traditional​ ​Procurement​ ​Method​ ​are​ ​as​ ​follows:
1. Longer​ ​Overall​ ​Development​ ​Time
This method requires the design to be completed before calling for tender and the commencement of
work. This then disable the concurrent working progress as the design and construction cannot be
overlapped​ ​which​ ​consequently​ ​require​ ​a​ ​longer​ ​time​ ​frame​ ​to​ ​complete​ ​the​ ​project.
2. Lack​ ​of​ ​Single​ ​Point​ ​of​ ​Responsibility
By using Traditional Procurement Method, there is lack of single point responsibility and control as too
many parties are involved in the project. All the parties will point finger at each other in event of any
arising​ ​issues​ ​which​ ​may​ ​result​ ​in​ ​the​ ​employer​ ​being​ ​the​ ​losing​ ​party.
3. Full​ ​Design​ ​with​ ​Minimal​ ​Variation
A fully completed design with minimal variation is impossible to be achieved as a variety of factors such
as short of time or lack of resources may cause shortcomings of the design. This results in the potential
of​ ​design​ ​variation​ ​and​ ​a​ ​revised​ ​design​ ​needs​ ​to​ ​be​ ​produced​ ​when​ ​changes​ ​arise.
Despite the disadvantages listed above, Traditional Procurement Method is the most suitable
procurement method as it satisfies the requirements stated by the employer and is suitable for our
employer​ ​which​ ​is​ ​new​ ​to​ ​the​ ​industry.
2.3​ ​Timeline

7. Upon​ ​completion​ ​time
​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​
In traditional method, it is different with the other three method where in this method, there will not have
any concurrent work going on as design and construction stage is separated where before design stage
complete, construction stage will not able to start the work. Before design stage, the developer or client
would appoint an architect to complete the design and produce specifications of the building. Client will
appoint a consultant team that comprising architect, quantity surveyor and engineers to come out with
the drawings and specifications of the building as well takes control of design and cost. The quantity
surveyor in the consultant team will come out with the bills of quantity based on the drawings that have
been provided by the architect and engineer. Upon the completion of the design, the works are let out to
tender and the contractor is thereafter appointed to carry out the Works in accordance with the
Consultant’s design. The contractor team will prepare the tender documents based on the specifications
and drawings or BQ. The contractor acted as the site manager during construction, will need to take
responsibility​ ​to​ ​all​ ​the​ ​workmanship,​ ​materials​ ​and​ ​to​ ​be​ ​in​ ​charge​ ​of​ ​the​ ​construction​ ​works.

8. 3.0​ ​Tendering​ ​Method
Tendering​ ​Method
Recommendation:​ ​Two​ ​stage​ ​Selective​ ​Tendering
It is recommended as contractors applying for the tender are given a list of information they should
supply about themselves in order to ‘pre-qualify’ during the early stage of the project. The respective
tenderers are reviewed based on several matters of consideration including the firm’s financial standing
and record, experience of building over similar contract periods, general experience and reputation of
the firm for the type of project envisaged, adequacy of the contractor’s management and adequacy of
capacity.
A list of “pre-qualified” tenderers will be finalized and invited for tender document collection. After the
tender evaluation, suitable tenderers will be selected for negotiation. The client or employer’s team will
then​ ​produce​ ​precise​ ​information​ ​or​ ​specification​ ​in​ ​conjunction​ ​with​ ​the​ ​selected​ ​tenderer.
3.1​ ​Advantages​ ​of​ ​two​ ​stage​ ​selective​ ​tendering​ ​are​ ​as​ ​follow​ ​:
During the early stage, details of the proposed project are advertised in the local or trade publications,
this allows all the contractors have the opportunity to participate in the tender. Therefore, It adopts the
key​ ​values​ ​of​ ​fairness​ ​and​ ​clarity​ ​which​ ​makes​ ​the​ ​tendering​ ​process​ ​reasonably​ ​transparent.
The prequalified tenderers is more likely to fulfill the client’s requirements, which reduces risks in the
implementation of the contract and eliminate potentially non-performing contractors as requested by the
client. After negotiation, the client is able to receive a fixed Contract Sum before commencement of
works.​ ​This​ ​allows​ ​the​ ​client​ ​to​ ​set​ ​aside​ ​a​ ​fix​ ​budget​ ​for​ ​this​ ​project.
3.2​ ​Disadvantages​ ​of​ ​two​ ​stage​ ​selective​ ​tendering​ ​are​ ​as​ ​follow​ ​:
Longer tendering time before actual tender. More time is needed to do a more thorough financial,
resource and company background to ensure that only qualified contractors are eligible to participate in
the bidding process for the project. This will cause the extra time to the whole project. Since the client is
not​ ​required​ ​the​ ​project​ ​to​ ​be​ ​done​ ​in​ ​short​ ​time,​ ​thus​ ​this​ ​will​ ​not​ ​affect​ ​to​ ​the​ ​project.

9. Generally, two stage selective tendering has a higher tender price than open tendering owing to there
being​ ​less​ ​competition​ ​and​ ​also​ ​due​ ​to​ ​the​ ​high​ ​caliber​ ​of​ ​the​ ​tenderers.
3.3​ ​Justification​ ​on​ ​other​ ​methods
a)Single​ ​stage​ ​selective​ ​tender
Transparency
A list of qualified contractors is already been selected on the basis of client’s consultant team’s
preferences​ ​where​ ​favouritism​ ​may​ ​occur.
b)​ ​Negotiated​ ​tendering
Costly
Normally one contractor is approached and it is mainly used for specialist work. The cost level of the
tenders​ ​received​ ​will​ ​be​ ​high,​ ​as​ ​there​ ​is​ ​no​ ​competition.
c)​ ​Open​ ​tender
Risky
Since open tender provides opportunity to all the contractors, this will result in a high risk in selecting
contractors​ ​who​ ​have​ ​poor​ ​workmanship​ ​or​ ​inexperience​ ​with​ ​the​ ​type​ ​of​ ​works.
3.4​ ​Tendering​ ​Procedure
a)​ ​Invitation​ ​to​ ​Tender
The tenderers are submit their firms particulars in a “Pre-qualification Form” to the consultant’s office for
the selection of tender based on several selection criteria such as financial record and standing of the
firm and their management capability. A list of “pre-qualified” tenderers will be produced and invited to
collect​ ​the​ ​tender​ ​documents​ ​from​ ​the​ ​consultant’s​ ​office.
b)​ ​Tender​ ​document​ ​collection
The “pre-qualified” contractors will then purchase and collect the tender document prepared by the
client’s consultant’s team in a stipulated date. The aim of the documents is that all tenders will be
received on the same basis so that competition is limited to price only. There is normally at least 4
working weeks for the time of tendering, however, more time may be needed depending on the size and
complexity of the project. Queries or unacceptable contract conditions should be raised at least 10 days
before​ ​tenders​ ​are​ ​due.

10. c)​ ​Tender​ ​Closing
Upon completion of filling in the rates of the project, the tenderers are required to submit their tender
document​ ​in​ ​a​ ​sealed​ ​envelope​ ​into​ ​a​ ​“tender​ ​box”​ ​located​ ​in​ ​the​ ​Consultant’s​ ​or​ ​Employer’s​ ​office.
d)Tender​ ​opening
The completed tender documents are treated as confidential. It will be opened and recorded together
only with the presence of all related consultants and Employers or representatives to eliminate any
suspicion​ ​of​ ​irregularities​ ​and​ ​tampering.
e)Tender​ ​evaluation
After tender opening, the tenderers will be examined to prevent problem arising during the contract and
in the settlement of the final account. The items that may be check includes arithmetical errors, pricing
error​ ​or​ ​patent​ ​errors​ ​and​ ​any​ ​non-compliance.
f)​ ​Tender​ ​report
After the examination, the client’s consultant’s team will prepare a Tender report to the client. The form
of​ ​report​ ​may​ ​include​ ​the​ ​following:
i) Price​ ​level​ ​of​ ​tender​ ​whether​ ​is​ ​high,​ ​low​ ​or​ ​about​ ​the​ ​level​ ​expected;
ii)​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​The​ ​quality​ ​of​ ​the​ ​pricing,​ ​indicating​ ​any​ ​detectable​ ​pricing​ ​method​ ​or​ ​policy;
iii) ​The extent of errors and inconsistencies in pricing and the action taken in regard to
them;
iv)​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​Details​ ​of​ ​any​ ​qualifications​ ​to​ ​the​ ​tender;
v) Average​ ​cost​ ​of​ ​the​ ​project;
vi)​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​​ ​R​ecommendation​ ​as​ ​to​ ​acceptance​ ​or​ ​otherwise.
g)​ ​Notifying​ ​the​ ​tenderers
A tender list will be drawn up and sent to all tenderers to notify the contractor whether his tender was
successful or not. The list contain all the tenderers’ names arranged in alphabetical and all the tender
sums​ ​in​ ​ascending​ ​order.​ ​However,​ ​the​ ​amount​ ​is​ ​not​ ​disclosed.

11. h)​ ​Tender​ ​interview​ ​(bid​ ​clarification​ ​and​ ​response)
During the interview, the shortlisted tenderers will be questioned on finer issues that might have included
in​ ​the​ ​tenderer’s​ ​proposed​ ​construction​ ​schedule​ ​and​ ​technical​ ​capabilities.
The tenderers may then be requested to submit revised tenders. The process of tender evaluation and
reporting may be repeated. A final tender report will then be submitted to the Employer with a final
recommendation​ ​for​ ​award​ ​or​ ​otherwise.
i)​ ​Tender​ ​Award
If the Employer is satisfied with the submission of tender meeting with the project’s planning and
budgeted requirements, then the Consultant will be instructed to prepare a “Letter of Award” to be issued
to the successful tenderer to be signed and duly return within a fixed time period (usually 14 days) failing
which​ ​the​ ​award​ ​will​ ​be​ ​deemed​ ​to​ ​have​ ​lapse​ ​and​ ​of​ ​no​ ​further​ ​legal​ ​effect.

12. 4.0​ ​Contract​ ​Arrangement
4.1​ ​Type​ ​of​ ​Contract
Clients​ ​requirements​ ​:​ ​​There​ ​will​ ​be​ ​minimum​ ​variations​ ​to​ ​the​ ​contract​ ​price​ ​during​ ​construction
Recommendation​ ​of​ ​contract​​ ​:​ ​Lump​ ​sum​ ​contract
4.2​ ​Lump​ ​sum​ ​contract
A lump sum contract is the traditional means of procuring construction, and still the most common form
of construction contract. Lump sum contract defines the contractor's responsibility to complete a defined
amount of work for a fixed sum according to BQ,drawing and specification. This also means that the
client agrees to pay the contractor a specified amount for the project without requiring the total cost
breakdown​ ​.
4.3​ ​Why​ ​choose​ ​lump​ ​sum​ ​contract?
In this case the client requirements for the project is a minimum variation to the contract, therefore lump
sum is a huge benefit to an owner that the contract is easy to manage. Payments to the contractor are
based on the percentage of completed work. Generally, the payment schedule is created by the
contractor​ ​and​ ​reviewed​ ​by​ ​the​ ​owner​ ​and​ ​architect​ ​during​ ​the​ ​course​ ​of​ ​construction.
4.4​ ​Justification​ ​on​ ​other​ ​contracts
Since the client requirements for the project is a minimum variation to the contract, therefore this cost
reimbursement contract does not follow the requirement because in the cost reimbursement contract the
owner must find hundreds and often thousands of claimed costs such an arrangement which can cause
dishonest​ ​contractor​ ​to​ ​defraud​ ​the​ ​owner

13. 4.5​ ​Measurement​ ​contract
For measurement contract, Measurement contracts can be made an early start on site, before the
design is complete, and they can allow changes to be made to the works relatively easily. However,
there is some chances of risk to the client as the cost of the works is not known. In effect, the client is
taking the risk for any unforeseen.This is why the real contract sum cannot be determined when the
contract is already entered into, but is calculated on completion, based on remeasurement of the actual
work​ ​carried​ ​out​ ​and​ ​the​ ​rates​ ​tendered.
4.6​ ​Advantages​ ​of​ ​Lump-Sum​ ​Contract​ ​are​ ​as​ ​follow​ ​:
● The​ ​final​ ​price​ ​i​ ​know​ ​by​ ​the​ ​owner​ ​before​ ​the​ ​work​ ​commences
● The​ ​contractor​ ​has​ ​more​ ​incentive​ ​to​ ​reduce​ ​his​ ​cost​ ​to​ ​increase​ ​the​ ​profit
● The contractor hopes to complete the job as quickly as possible, to minimize overhead to
maximize​ ​profit​ ​and​ ​to​ ​move​ ​to​ ​the​ ​next​ ​job
4.7​ ​Disadvantages​ ​of​ ​Lump-Sum​ ​Contract​ ​are​ ​as​ ​follow​ ​:
● Changes in drawings and specification can be very expensive and source of trouble. In other
words​ ​the​ ​contract​ ​has​ ​very​ ​limited​ ​flexibility​ ​for​ ​design​ ​changes.
● The​ ​contract​ ​carries​ ​much​ ​of​ ​the​ ​risks.​ ​The​ ​tendered​ ​price​ ​may​ ​include​ ​high​ ​risk​ ​contingency
● Competent​ ​contractors​ ​may​ ​decide​ ​not​ ​to​ ​bid​ ​to​ ​avoid​ ​a​ ​high​ ​risk​ ​lump​ ​sum
4.8​ ​Form​ ​of​ ​Contract
When choosing the form of contract, we are given multiple choices, all depending on the client and their
requirements. We are given the choice of several standard form of contracts like the Construction
Industry Development Board (CIDB), International Federation of Consulting Engineers (FIDIC), KLRCA’s
SFC, Public Works Department (PWD), JKR, Pertubuhan Arkitek Malaysia (PAM) and various types of
bespoke contracts. When comparing the main 3 contracts, namely PAM, PWD & FIDIC, a key difference
can​ ​be​ ​seen.​ ​In​ ​all​ ​3​ ​contracts,​ ​the​ ​roles​ ​&​ ​responsibilities​ ​of​ ​the​ ​contract​ ​administrator​ ​is​ ​different.
PAM​ ​2006​ ​–​ ​Architect​ ​to​ ​act​ ​as​ ​independent​ ​certifier​ ​(Architect’s​ ​Instruction​ ​-​ ​Clause​ ​2)
PWD 203A – States Superintending Officer’s duties- Responsible for overall supervision & directions of
work
FIDIC RED BOOK – Engineer on behalf of employer, resolves dispute under DAB (Dispute Adjudication
Board)

14. 4.9​ ​Why​ ​choose​ ​PAM​ ​2006​ ​(with​ ​Quantities)?
For standard form of contract, we would suggest the client to use PAM Contract 2006 (with Quantities)
as it is more suitable for larger scale projects, whilst the other option, without Quantities is more suitable
for smaller scale projects. PAM is by far one of the most often used standard forms of contract in the
Malaysia​ ​Building​ ​Industry.
When compared to the other options, PAM fulfill the requirements of the client. One of our client’s
requirement is that the client wants the project to complete on time. With clause 21.0, it clearly states
that the contractor shall carry their duty until or before the completion date. PAM can also help reduce
any possible risks like FIDIC’s Red Book Sub-Clause 13.8 (Adjustments for Changes in Cost) fluctuation
of cost or Sub-Clause 16.1 (Contractor’s Entitlement to Suspend Work) which may incur more cost due
to​ ​any​ ​delays.
4.10​ ​Importance​ ​of​ ​Form​ ​of​ ​Contract
The type of project, the nature of a project and financing involved will determine the use of which
Standard Form of Contract. Standard forms of contract provides basic legal frameworks which recognize
the rights, obligations and duties of the parties and highlights the ambit of the powers and duties of the
contract administrator. Besides, it leads to lesser number of disputes and misunderstandings. It is also
helps in reducing the cost linked to tendering and contract administration. Furthermore, it leads to higher
degree of certainty and fairness during tendering process. Lastly, it offers balanced and clearly defined
risks​ ​between​ ​the​ ​contracting​ ​parties.
As this is prestigious mega project which involved client from an established public listed company,
Quality, Health & Safety are some of the requirements which the client concerns the most as it can affect
the​ ​client’s​ ​company​ ​reputation​ ​if​ ​these​ ​requirements​ ​are​ ​not​ ​properly​ ​monitored.

15. ● Quality
- Clause​ ​6.1​ ​Standards​ ​of​ ​works,​ ​materials,​ ​good​ ​and​ ​workmanship
“Scenario example, Contractor completed timber flooring finishes as differ from the Contract
where​ ​the​ ​finishes​ ​stated​ ​in​ ​Contract​ ​is​ ​Carpet.”
The Architect which act as a S.O can instruct the contractor to demolish the work and rectify it without
affecting the contract sum in terms of addition or omission. The contractor is obligated to complete the
work within 28 days after defect liability period commence where the Carpet Flooring has to be changed
within the period. If fails to do so, the Employer has the right to ask other Subcontractors to rectify the
work​ ​and​ ​such​ ​cost​ ​will​ ​be​ ​compensated​ ​until​ ​clause​ ​15.3​ ​in​ ​the​ ​PAM​ ​contract​ ​2006.
● Time
- 21.1​ ​Commencement​ ​and​ ​Completion
From the PAM Contract 2006, as long the Contractor set up a solid work programme of the work and
carries it out diligently and complete on or before the Completion Date, Liquidated Damage of
RM250,000/day​ ​will​ ​not​ ​be​ ​activated.
But if the Contractor fails to complete the Works by Completion Date, a Certificate of Non-Completion
will​ ​be​ ​issued​ ​by​ ​the​ ​Architect​ ​where​ ​the​ ​Liquidated​ ​Damages​ ​will​ ​be​ ​activated​ ​as​ ​stated​ ​in​ ​clause
- 22.1​ ​Liquidated​ ​Damages​ ​and​ ​Certificate​ ​of​ ​Non-Completion.
● Health​ ​&​ ​Safety
- Occupational​ ​Safety​ ​and​ ​Health​ ​Act​ ​1994(OSHA)
Based on OSHA, if the contract sum exceeds RM20 million, a safety and health officer should be employ
by the contractor where his important duties is to advise contractors, site workers their interests of the
health and safety as well as their responsibilities which includes inspecting the workplace on which types
of​ ​machinery​ ​or​ ​equipment​ ​or​ ​process​ ​of​ ​work​ ​may​ ​potentially​ ​cause​ ​injuries​ ​or​ ​harmful​ ​to​ ​the​ ​workers.
If by any chance, accidents happen in the workplace, the safety and health officer have to submit a
report about the number and types of accidents that occurred for remedial actions for preventing future
occurrences​ ​under​ ​similar​ ​condition.

16. Health​ ​and​ ​Safety​ ​File
A Health and Safety File(HSF) is a document required by the Construction (Design and Management)
Regulations 2015 which serve as a repository of health and safety information which serves as legal
record that will be use to both clients and end users.Throughout the whole construction period, the HSF
will constantly be updated with information about any feature of the structure which will involve
significant​ ​risks​ ​to​ ​health​ ​and​ ​safety​ ​during​ ​the​ ​structure’s​ ​lifetime.
The​ ​HSF​ ​should​ ​contains​ ​these​ ​informations,
- Description​ ​of​ ​the​ ​project​ ​carried​ ​out,​ ​with​ ​the​ ​detail​ ​location​ ​of​ ​the​ ​site
- Residual hazards which remain after completion of construction and how it is dealt (e.g.
contaminated​ ​land,​ ​services​ ​that​ ​are​ ​buried)
- Key structural principles and safe working loads for floors and roofs (e.g. pre tensioned or post
tensioned​ ​members,​ ​particular​ ​floor​ ​slab​ ​that​ ​prohibit​ ​from​ ​placing​ ​heavy​ ​object)
- Hazardous​ ​material​ ​used​ ​(e.g.​ ​pesticides,​ ​special​ ​coating​ ​which​ ​are​ ​not​ ​allowed​ ​to​ ​be​ ​removed)
- Information regarding the removal or dismantling of installed plant and equipment (e.g. special
arrangement​ ​or​ ​special​ ​instruction​ ​for​ ​a​ ​particular​ ​element)
- Health​ ​and​ ​safety​ ​information​ ​about​ ​equipment​ ​provided​ ​for​ ​cleaning​ ​or​ ​maintaining​ ​the​ ​structure
- The nature, location and markings of significant services, including underground cables; gas
supply​ ​equipment;​ ​fire-fighting​ ​services​ ​etc;
- Information and as-built drawings of the building, its plant and equipment (e.g. the means of safe
access​ ​to​ ​and​ ​from​ ​service​ ​voids​ ​and​ ​fire​ ​doors).

17. HSF should not contain irrelevant information such as the construction phase, statistics on accident,
contractual​ ​documents​ ​or​ ​details​ ​that​ ​have​ ​no​ ​impact​ ​on​ ​health​ ​&​ ​safety.
Once the construction is done in accordance with the HSF, the document will be handed over to the
client and should always ensure that the Health and Safety File of the particular construction is available
for those who needs it as inspection purposes as well as for day to day operational and maintenance
manuals.
If there are any amendments on part of the structure, the HSF shall be updated based on the changes
as​ ​well.
If the client sells the property or part of the structure, the HSF or the relevant parts of the HSF on the
part​ ​of​ ​the​ ​structure​ ​should​ ​be​ ​pass​ ​to​ ​the​ ​new​ ​owner​ ​of​ ​the​ ​property.

18. 5.0​ ​Bibliography
Types Of Tenders And Tendering Process Construction Essay. (2015, March 23). Retrieved ​November 20, 2017,
from
https://www.ukessays.com/essays/construction/types-of-tenders-and-tendering-process-construction-essay.php
Hasmi, Y. (2013, October 06). Variation Works. Retrieved November 17, 2017, from
https://nymhconstruction.wordpress.com/2013/10/03/variation-works/
Health and Safety in Malaysian Construction. (2015, March 23). Retrieved November 20, 2017, from
https://www.ukessays.com/essays/construction/safety-and-health-requirements-in-malaysian-construction-essay.ph
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H. (n.d.). Health and Safety in Construction. Retrieved November 12 , 2017, from
http://www.hse.gov.uk/pubns/priced/hsg150.pdf
Zolkafli, U., Zakaria, N., Salleh, H., Ali, A., & Loh, C. (2011, December). THE COMPARATIVE STUDY
OF INTERNATIONAL STANDARD FORM OF BUILDING CONTRACT (FIDIC CONDITIONS OF
CONTRACTS FOR CONSTRUCTION - THE NEW RED BOOK 1999) AND MALAYSIAN’S STANDARD
FORM OF BUILDING CONTRACT (PWD 203A). Retrieved November 10, 2017, from
http://repository.um.edu.my/17888/1/Paper%20Dec2011%20-%20Comparative%20Study%20Forms%2
0of%20Contract.pdf
Rodriguez, J. (n.d.). Learn About Lump Sum Construction Contracts and Where Scope is Defined.
Retrieved​ ​November​ ​21,​ ​2017,​ ​from
https://www.thebalance.com/lump-sum-construction-contract-844915
Austin2011-02-18T00:00:00, S. (2011, February 17). Common mistakes in... lump sum contracts. Retrieved
November​ ​21,​ ​2017,​ ​from
https://www.building.co.uk/common-mistakes-in%E2%80%A6-lump-sum-contracts/5012862.article

19. References
Books
Ramus, J., Birchall, S., & Griffiths, P. (2006). ​Contract practice for surveyors (3rd ed., pp. 46-51).
Amsterdam:​ ​Elsevier.
Ashworth,​ ​A.​ ​(2008).​ ​​Pre-contract​ ​studies​​ ​(2nd​ ​ed.,​ ​pp.​ ​306-307).​ ​Oxford:​ ​Blackwell.
Brook, M. (2008). ​Estimating and tendering for construction work (4th ed., pp. 88-91). United
State​ ​of​ ​America:​ ​MPG​ ​Books​ ​Ltd.
Online
The importance of using standard forms of contracts in construction industry. (n.d.). Retrieved November
20, 2017, from
https://www.ukessays.com/essays/construction/the-importance-of-using-standard-forms-of-contracts-in-c
onstruction-industry.php
TYPES OF TENDERING METHODS IN CONSTRUCTION​. ​The Constructor​. Retrieved 21 November
2017,​ ​from​ ​​https://theconstructor.org/construction/types-of-tendering-methods-in-construction/6372/
A. C. (n.d.). The Health and Safety File - a key document for site safety. Retrieved November 14, 2017, from
https://app.croneri.co.uk/feature-articles/health-and-safety-file-key-document-site-safety
Agreement and Conditions Of PAM Contract 2006. (n.d.). Retrieved November 13, 2017, from
https://theveritasdesigngroup.com/global_files/pdf/PAM_Contracts.pdf
Britto, J. T. (2016, October 21). Tendering Methods & Procedures. Retrieved November 20, ​2017, from
https://www.onlinecivilforum.com/site/index.php/2016/10/21/tendering-methods-procedures/
Bunni, N. G. (2005, December). Restraints on the Execution of Works. Retrieved November 13, 2017, from
http://fidic.org/sites/default/files/37%20Restraints%20on%20the%20Execution%20of%20Works.pdf