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Professional practice-1
- 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.