Professional Practice

SCHOOL OF ARCHITECTURE • BUILDING • DESIGN
BACHELOR OF QUANTITY SURVEYING (HONOURS)
PROFESSIONAL PRACTICE 1
MARCH 2016 SEMESTER
Name Student ID
Yong Seen Yee 0315883
Shane Sim Ee Han 0321288

TABLE OF CONTENT
Description Page
1. Procurement 1
1.1. Traditional Procurement 1
1.1.1.Advantages of Traditional Procurement 1
1.1.2.Disadvantages of Traditional Procurement 2
1.2. Design And Build Procurement 4
1.2.1.Advantages of DesignAnd Build Procurement 4
1.2.2.Disadvantages of Design And Build Procurement 6
1.3. Recommendation 8
2. Tendering 10
2.1. Open tendering 11
2.1.1.Advantages of OpenTendering 12
2.1.2.Disadvantages of Open Tendering 12
2.2. Selective Tendering 14
2.2.1.Advantages of Selective Tendering 15
2.2.2.Disadvantages of Selective Tendering 15
2.3. Negotiated Tendering 17
2.3.1.Advantages of Negotiated Tendering 17
2.3.2.Disadvantages of Negotiated Tendering 18
2.4. Recommendation 19
3. Schedule of Project 20
4. References 21

Page | 1
1. Procurement
1.1.Traditional procurement
In the traditional procurement method, the design work is normally separate from
construction. Therefore, the client will appointed the consultants to prepare a
complete set of design and cost control before it is put out to tender whereas the
contractor is appointed for building the works. The contractor is usually appointed
through a competitive tendering. This responsibility extends to all workmanship and
materials, and includes all work by subcontractors and suppliers. Furthermore, the
client will go into contract with the consultant and contractor separately.
1.1.1. Advantages
(a) Familiarity among contractors and consultants
The roles and responsibilities of contractors and consultants are well understood
and clear between each other as this traditional procurement method is normally
considered as a standard method that is widely used in Malaysia.
(b) Quality of work
In this procurement method, the client has a direct influence and responsibility for
the design team. Therefore, the client can determine and control at each level of
the design and even the outcome of the final design. Therefore, the better control
over the quality of design can produce a high level of the functionality of the
project.
(c) Usually cheaper
This method of procurement allows careful planning of the overall design and
performance of the project, and also allows the employer’s involvement in the
project is more than other method of procurement. Therefore, the client has to
build himself in taking risk since he is the one who is responsible for decision and
control on design of the project. Besides, the contractor takes single-point
responsibility for construction under a lump sum contract, but the design risk is
still remains with the client. Thus, there will be relatively cheaper in cost.

Page | 2
(d) Flexibility of change
In this procurement, it can easily accommodate and arrange any changes to the
contract as required by the client.
(e) Independent design and cost advice to employer from consultants
The client has an independent professional in the role of contract administrator
monitoring the overall project. Besides, the client’s interest and requirement is
protected by the consultants who act as an advisors and independent certifiers in
the contract. Furthermore, the direct workmanship between the client and
employer can also allow the consultant to direct advice on the reasonable design
and cost for the employer.
1.1.2. Disadvantages
(a) Creates the “Then & Us “attitude
The separation between design and construction process and responsibility
would often lead to disputes. For example, the contractor may blame the design
team for their design defects, whereas the design team may blame the contractor
for defects in materials and workmanship. They may continually blame each
other because there is no single point of responsibility in this procurement.
(b) Long duration
The project need take long time to complete due to selection of consultant
engineer and it can also be a timely process to produce the full contract
documentation. Besides, the design would have been ‘finalised’ before
construction contract is let which mean that the construction cannot be
commenced prior to the completion of the design. Therefore, the overall project
duration may be longer than other procurement methods. Furthermore, if the
client wishes to make any amendment for later design, it will be more difficult and
time consume.

Page | 3
(c) Contractor is not involved in designing
Client cannot tender for main contractor until the final design has been finalized.
As a contract is not appointed at the early stage of the project commence, the
contractor is unable to input his deign and idea into the project which will
sometime bring benefits and more functionality to the project. Besides, this will
also result in more time consume before the construction work can commence.
(d) Slow line of communication
In traditional procurement, the client has to handle with both parties, which are
design consultant and main contractor. This is because the design consultant is
responsible for design while main contractor is responsible for construction.
Therefore, if there have any problems occur, the contractor has to report to client,
and then the client will pass these messages to consultant and vice versa. Thus,
this will decrease the overall project efficiency.
(e) Decreases in design quality and standard
In traditional procurement, the contactor may wish to win the job. Therefore, they
will normally price the work which is less expensively rather than design quality
and standard which properly reflects the work to be carried out. Thus, this can
produces a claims culture if the submitted price was too low because of market
force.

Page | 4
1.2.Design and build procurement
Design and build procurement method is where a design consultant will be appointed
by the client to prepare a design concept and specification which is known as
employer’s requirement. The employer’s requirement is including the specification for
the building, the scope of services required from the contractor and an allocation of
risk for unknown items. After that, a contractor is appointed by the client to manage
both the design and construction of the project based on the “Employer’s
requirement”. Then, the contractor has to submit a set of Contractor’s Proposals
which is including the contractor's suggested approach for designing and
constructing the building, along with their price. In design and build procurement, it is
likely that the contractor may not have the design expertise in-house to do this.
Therefore, the contractor may have a contractual link with his own consultants to
complete the design or take over the client’s consultant through a process called
novation.
1.2.1. Advantages
(a) Single point of responsibility
In design and build procurement, the client has to deal with and enter into
contract with only one contractor who is responsible for both the design and the
construction. Therefore, it will reduce the need to commit resources and time to
enter into separate construction and design agreement.
(b) Time saving
In design and build procurement, the speed of delivery from concept to
completed building will be faster as the level of design control is given to
contractor. Therefore, the contractor can commence the work on site at an early
stage of the project even though the design haven’t fully completed. Thus, this
procurement can be reducing the overall project delivery time.
(c) Price certainty
Price certainty is generally obtained before construction commences as client’s
requirements are specified and does not continually change. The contractor who
has more experience and expertise is able to provide a design that allows him to

Page | 5
buy elements which allow him to obtain the best price offers. Therefore, this
procurement can be more cost effective and more cost certainty.
(d) Faster line of communication
In design and build procurement, the client is only liaise with one party, which is
main contractor. This is because the main contractor is responsible for both
design and construction. Therefore, it is an easy and faster way for client to
communicate with contractor if the client wishes to amend the brief or get more
information about the progression of the project.
(e) Product fit for purpose
In this procurement, the client can achieve what he wants to get based on the
employer’s requirement as the contractor will accurately specify the client's
requirements. For example, what the finished building is to be like, what the
building is to function and code of design. Besides, it is potential for better design
and construction because the architecture and engineering (A/E) is working for
the contractor. Furthermore, the final project costs are well defined earlier in the
project process and the amount is usually less than when using other types of
procurement systems.
(f) Novation of design
In this procurement, the contractor will wish to enter a contractual link with the
client's own designers which can provide an advisory on the preparation of
“Employer’s requirement”. This process is normally called novation. Furthermore,
this process comes a lot of benefits which including; the designers that the client
keep repeating hired will be more familiar with the client’s requirement and the
client will also be happy with the quality of their project.

Page | 6
1.2.2. Disadvantages
(a) Higher contract price
The client has to pay higher fees to the contractor if they ask the contractor to
build themselves into high risk and sole responsibility for the entire project.
(b) Client’s involvement
In this procurement, the design of the project is solely obligated by the contractor
which means that the client has less involvement, control and influence over the
design matters. Thus, the client can only review his desired project design
through the design brief and design requirement.
(c) Inflexibility to change
In this procurement, once the contractor’s proposal have been agreed and
submitted, it is very hard and difficult for client to make any amendment on his
requirements. Besides, the design of the project may be compromised if the
employer’s requirement is not firm and clear. Thus, the client needs to pay extra
amount of fees to obtain the design that he desired to.
(d) Conflict
If the client’s requirements and the contract’s proposal which have been
submitted is not match with each other, there may be some conflicts happen
between each party. Therefore, both documents have to check clearly before
submitted and the client have to submit a firm set of requirement that he desires
to obtain during the final design stage in order to obviate the conflicts happen.
(e) Quality of project
In design and built procurement, the contactor has the incentive to complete the
projects in short period and they normally influence by the cost of the materials
which is less expensively rather than by design standards. Therefore, this can be
reducing the overall material quality of the project.

Page | 7
(f) Additional fees
In this procurement, the client is required to pay more additional fees if they need
to get more advices and information on the design of the project after the building
contract has been awarded. Besides, the variation of the post contract will be
charged more expensive as it is very difficult to monitor the addition charged
where normally the works are priced based on the basis of a specification.

Page | 8
1.3.Recommendation
As Innovative Cost Consultant Sdn. Bhd. Director, I would like to recommend that
the proposed project to build a branch campus in Kota Kinabalu, Sabah should use
the design and build method.
Based on the Taylor’s University plan, they required the branch campus to be
operational in mid-2019. Therefore, timely delivery of the facility on time is the main
priority to concern. By using design and build method, it allows a fully integrated
team which are design and construction team to work together at the beginning
stage of the project. This overlapping design and construction process allows
programmes to be more easily met and the speed of construction is also often
quicker. Thus, it is possible to complete the campus on time without delay. While in
the traditional method, it will extend the duration of the project as it is timely process
to finalize the design and documentation before construction contract is awarded
which mean that the construction cannot be commenced prior to the completion of
the design.
Regarding to the cost, they are also required the campus to be complete within the
fixed budget. Based on design and build method, the initial price may be higher as
the client will ask the contractor to build themselves into high risk and sole
responsibility for the whole project and the variation of the post-contract will be
charged more expensively. However, there is a single point of responsibility between
design team and construction team. Therefore, within a reasonable degree of
accuracy, there is less possibility of claims being made by the contractor in respect
of the relationship between the design function and the construction function.
Besides, the experience contractor can also use his expertise in providing a design
that allows him to buy goods and services which allows him to obtain the best buying
margins. Therefore, it will be more cost effective. One of the ways to ensure the
building is delivered for the best value for money and is finished with a satisfactory
level of quality is design and constructs the project based on “employer’s
requirement”. This can ensure that a contract runs smoothly, economically,
expeditiously, minimal the project change and increase performance.

Page | 9
Nowadays, building defect is one of the major components of building problems that
significantly needed attention. When a building fails to function, it will bring harm to
occupant. Therefore, we must immediately seek for the solution. The most important
point in constructing a campus is to ensure that the building is firm enough and
sustainability. Besides, we must also ensure that the building have the least
construction defects like cracking and settlement. In design and build method, the
design is more likely to constructability which in practical terms is concerned with
reducing project uncertainty and risk through increasing efficiency in the design and
construction processes due to contractor’s input into the design in the early stage of
the project commencement. Besides, the contractor can also take over from the
client previous contract for design work, complete the design and construct the work.
This process is normally called novation. Besides, this process brings a lot of
benefits which the designers will be more familiar with the client’s requirement and
the client will also be happy with the quality of their project.

Page | 10
2. Tendering
According to Finch (2011), tendering is the process where contractors are invited to
bid for a construction project. Tendering involves an employer/client who they intend
to build a building or infrastructure, they offer contractors who are referred as
tenderers to submit their proposal or bid. Tenderers win the bid by lowest but
reasonable price and hence their offer is being accepted by employer.
Tendering can be further broken down into three types which are open, selective and
direct negotiation. Each method of tendering has their own advantages and
disadvantages.
Tendering
document
preparation
Tender invitation
Tender closing
Tender review,
evaluation and
recommendation
Awards
tender

Page | 11
2.1.Open tender
According to Lynch (2016), open tendering is a public competitive bidding to acquire
goods, services and infrastructure works at the interest of the public. Hence, any
interested contractors have opportunity to submit tender for the bidding process.
Open tendering is employed by both government and private sector.
Employers who intend to build building or infrastructure announce tender invitation to
the public through local newspapers, websites or governed development boards to
attract attention.
Contractors who wish to tender will have to approach the consultants to purchase
tender documents. Tender documents are available to purchase starting the date
advertised until a week before the closing of tender. After the closing date of tender,
contractors have to submit their tender documents and a tender deposit is required
to show interest in participation. However, deposit is refundable to contractors who
lost the bid.
Upon closing of tender, consultants will review all tenders and evaluate validity of
tenders to ensure that the price is lowest and reasonable. For some big projects,
contractor profiles are also taken into consideration such as contractor’s experience
and company background.
After evaluation, a report has to be submitted to client to review. Therefore, client will
decide to award the project to contractor at the advisory of the consultants. Hence,
client reserves the rights not to award the project to the lowest bid.

Page | 12
2.1.1. Advantages of open tender
(a) Ideal price
As open tendering is a public tendering process, it attracts many participation of
contractors. Hence, the competition is high as every bidders attempt to lower
their price to earn a job opportunity. As number of bidders increase, the
competition gets greater, the lower the price of project. Therefore, it benefits the
clients in such a way that clients are able to award the project at an ideal price.
(b) Various options
Open tendering also allows various options as there are many tenderers
participate in the bidding; consultant and client have many choices of tenderers to
award the job. Moreover, they are also able to evaluate the benchmark of the
price by comparing all the tenders.
(c) More job opportunities
Open tendering offers more job opportunities because open tendering offers
chances to public, hence any new organisations can start off and enter the
industry. As new organisation enters the industry, they creates job opportunities
due to the needs of manpower.
2.1.2. Disadvantage of open tender
(a) Capability of contractor
Capability of contractor can cause a major drawback to the client and also the
project. As open tendering is a fair bidding process where any contractors are
allowed to participate, client might not understand the profile and background of
the contractor who gets the job. Hence, the capability is an unknown in which if
the contractor does not have the capabilities such as insufficient funds or
manpower, it affects the project in many aspects.
(b) Quality of work
As open tendering is a very competitive tendering method, contractor who got the
job by lowest bid might not produce quality works because they might cut corners
in order to increase profit margin. Client might also face risks such as non-

Page | 13
compliance of specifications or delays due to rectification works on poor quality
works.
(c) Time consuming process
Open tendering is also a time consuming process due to many tender documents
to reviewing works by consultants to evaluate tenders and advise client on the
best tender to be awarded. Moreover, consultants may have to invite contractors
for an interview session to review contractor background and company profile.
Hence, the process takes a long time before a project is awarded.

Page | 14
2.2.Selective tender
Selective tendering is a closed tendering process. It is a process where tender is not
announced to public and only selected contractors are invited to submit their tender.
According to The Constructors (2016), these contractors will be given a list of
information required for qualifying evaluations.
Selective tendering consists of single stage and two stages selective tendering.
Single stage selective tendering is where selected contractors receive tender
invitation from consultants and they are to accept the invitation by submitting their
bids or reject the invitation to tender. Generally, the lowest bid gets the job.
Two stages selective tendering differs from single stage as it undergoes a
prequalification stage where selected contractors are to submit their personal and
company profiles for evaluation by consultants. The criteria considered are such as
contractor experience, project references, financial capabilities, staffs profile and etc.
After evaluation, if the contractors achieve the requirements set by consultants, they
will be included in the final tender list. Generally, these contractors are experienced
contractors, good reputation in terms of producing quality works, financially strong,
good management skills so and so for.

Page | 15
2.2.1. Advantage of selective tender
(a) Quality of work
By selective tendering method, consultants are able to choose contractors who
are good in producing quality works. Good quality of work consists of aspects
such as no cutting corners, compliances to specifications and able to producing
good finishing without delay of time.
(b) Time saving
Selective tendering saves time because consultants require less time in
reviewing tenders due to less amount of tenderers. Moreover, consultants also
save time in interviewing contractors as compared to open tendering. In fact,
there are no interviews required because contractors who submitted tenders are
contractors who had passed the prequalification stage.
(c) Less conflicts
Selective tendering reduces conflicts due to less competition during the tendering
stage. Apart from that, it also reduces conflicts when it comes to recommending
selection of contractors to the client. In an open tender, consultants may have to
give explanations if the lowest bid is not selected. However, selective tendering is
much simpler since bidders are chosen as equally good contractors, price
determines the winner of the bid. Hence, it is less complicated and therefore
reduces conflicts.
2.2.2. Disadvantage of selective tendering
(a) Favouritism
In selective tendering, there are chances where favouritism might happen
because both client and consultants might have relationship with the selected
contractors of the list. In some cases, there are possibilities of collusion that
consultants have mutually beneficial relationship with contractors. Hence, it is
unfair to other equally potential selected contractors and might a threat to client.

Page | 16
(b) High cost
Since selective tendering is a private tendering process where there is less
numbers of contractors comparing to open tendering, therefore the competition is
lesser. Client has less bargaining power because client has limited choices of
contractors. Hence, the project cost might be higher comparing to open tender
where client has more bargaining power due to greater competition.
(c) Less job opportunities
Unlike open tendering, all contractors are allowed to opt for job opportunities,
selective tendering sets boundaries to job opportunities because only
experienced contractors are given chances. Hence, new firms cannot enter the
market. Meanwhile, lesser experience contractors may not be able to gain more
experience and therefore the numbers of good contractors may decrease
exponentially.

Page | 17
2.3.Negotiated tendering
Negotiated tendering is where client approaches a known supplier or contractor to
negotiate a price before awarding the job. The supplier or contractor can be by
recommendation, past projects or specialist.
For big scale of projects, negotiated tendering is not widely used. It is used within a
project for jobs that requires specialist such as lift systems or some other advanced
technology mechanical systems. For instance, train stations also require specialist in
which the construction project applies negotiated tendering.
Besides, negotiated tendering is also applied when the project is urgent and cannot
be delayed. For example, building houses for disaster refugees, reconstruct roads
after an earthquake and etc. are works that requires immediate commencement.
Client will approach suppliers or contractors with bill of quantities and pricing will be
filled in by contractors or suppliers as negotiation goes along.
2.3.1. Advantages of negotiated tendering
(a) Quality of work
Since it is negotiated between client and contractor, it is more likely that client
selects contractors with good qualities and high working ethnics. Hence, quality
of work is assured. Moreover, it also assures safety when it comes to
infrastructure works. This is because infrastructures concern of lives, it is very
important that quality of work is not compromised. Therefore, negotiated
tendering is applied especially to works that require specialist or good contractors.
(b) Trustable
As client looks for the ideal contractor to accept the job, it is also more trustable
in aspects such as experience and skills especially to works that requires
specialist. It also ease supervision works during construction because a good
contractor is a contractor who has good working ethnics in which they will
complete the project without cutting corners. Hence, client will be more satisfied
with the quality of work.

Page | 18
2.3.2. Disadvantages of negotiated tendering
(a) High cost
It is undeniable that the price of tender will be relatively higher as compared to
open and selective tendering because there is no competition of price. This is
because client has no bargaining power while contractor is on the upper hand
due to no competitors. Moreover, contractor might gain more bargaining power
when it comes to specialized works.
(b) High risk
In any unforeseeable circumstances that occurs in which the contractor fails to
deliver the project, it would be a huge lost to the client in terms of resources and
time. Moreover, it is also risky to allocate all jobs under a contractor because if he
fails, the entire project fails. In short, it is not advisable to put all eggs in one
basket.

Page | 19
2.4.Recommendation
As the director of Innovative Cost Consultant Sdn Bhd, I would recommend my client
to implement open tendering method. This is because there are few important
factors that have to be put as first priority.
First element to be considered is cost. The cost to build a campus a high because a
campus has to cater many students and many safety features have to be built such
as fire protection system and features such as vertical transportation and other
infrastructures. Hence, it is more advisable to apply open tendering method to
increase the competition in order to lower the cost of construction. Moreover, it also
allows more options of contractors to be chosen.
Secondly, familiarity is also one of the factors that suits this project. This is because
open tendering is commonly used around Malaysia and hence contractors are more
familiar with the standard methods of tendering. As for the client, familiarity has to be
taken into consideration because client might not know much good contractors in
Sabah, therefore open tendering is better than selective or negotiated tendering
methods.
Besides, as open tendering allows many tenderers to participate, it also leads to
discovery or import of new technologies which might shorten the construction time.
Since campus is a relatively big project, Industrialized Building System (IBS) may be
imported and implemented. Hence, it lowers the cost of construction and time in
which it allows campus to be done and commences operation on time.
In conclusion, I would recommend Taylor’s University to implement open tendering in
order to save cost, familiarity and to allow more contractors to enter the market with
new and advanced technology.

Page | 20
3. Schedule of Project

Page | 21
4. References
Field/Seymour/Parkes/Solicitors (n.d.). Articles/Construction Procurement. (Website)
Retrieved from http://www.fsp-law.com/articles/construction-procurement
Griffith, A. and Sidwell, A.C. (1995). Constructability in building and engineering projects.
Macmillan, London.
RICS (2013). The design and build approach. (Website) Retrieved from
https://consultations.rics.org/consult.ti/comparative.construction/viewCompoundDoc?docid=
2424148&partid=2425108
RICS (2013). The traditional approach. (Website) Retrieved from
https://consultations.rics.org/consult.ti/comparative.construction/viewCompoundDoc?docid=
2424148&partid=2425044
Thomson Reuters (n.d.). A vote for traditional procurement at the right time and in the right
place. (Website) Retrieved from http://constructionblog.practicallaw.com/a-vote-for-
traditional-procurement-at-the-right-time-and-in-the-right-place/
UKessays (n.d.). What is the procurement method construction essay. (Website) Retrieved
from https://www.ukessays.com/essays/construction/what-is-the-procurement-method-
construction-essay.php
Finch. R, 2011. Tendering for construction projects. (Website) Retrieved from
https://www.thenbs.com/knowledge/tendering-for-construction-projects
UKessays, 2015. Advantages Of Open Tendering Construction Essay. (Website) Retrieved
from https://www.ukessays.com/essays/construction/advantages-of-open-tendering-
construction-essay.php
Buildupforthebusiness, 2013. The Disadvantages of Open Tendering. (Website) Retrieved
from https://buildupforthebusiness.wordpress.com/2013/08/16/the-disadvantages-of-open-
tendering/
theconstructor.org, 2016. TENDERING METHODS IN CONSTRUCTION. (Website)
Retrieved from http://theconstructor.org/construction/types-of-tendering-methods-in-
construction/6372/

Page | 22
International parking institute (August,2006). The pros and cons of design-build. (Website)
Retrieved from http://www.carlwalker.com/wp-content/uploads/2012/09/Pros-Cons-of-
Design-Build.pdf
CRC Construction Innovation (June,2008). Building procurement method. (Website)
Retrieved from http://www.construction-
innovation.info/images/pdfs/Research_library/ResearchLibraryC/2006-034-
C/reports/Report_-_Building_Procurement_Methods.pdf
MinterEllison (December,2011). Procurement models: improving on the traditional methods.
(Website) Retrieved from http://www.minterellison.com/Pub/NL/201112_CLAa/
Faithful Gould (19 August,2013). Design and build procurement: Cutting through the
misconceptions. (Website) Retrieved from https://www.fgould.com/middle-
east/articles/design-and-build-procurement/
TenderPoint, 2014. 3 Methods of Tendering available to Contractors. (Website) Retrieved
from http://tenderpoint.co.za/blog/3-methods-of-tendering-available-to-contractors/
Ice (12 January,2016). Employer’s requirements for building design and construction.
(Website) Retrieved from
http://www.designingbuildings.co.uk/wiki/Employer's_requirements_for_building_design_and
_construction
Ice (23 March,2016). Design and build procurement route. (Website) Retrieved from
http://www.designingbuildings.co.uk/wiki/Design_and_build_procurement_route

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