1. Professional
Practice I
Yong Qing Yi 0325303
Wong Qin Kai 0320024
Ng Huoy Miin 0319097
Nadhirah Mohd Zain 0321366
Yam Hui Shan 0316058
Wah Yun Chen 0319115
2. Introduction
- Development of RM600 million in
the centre of Golden Triangle, KL.
- Full control of design and changes
during whole process of project.
- Time length of project : 20 months.
- Flexible budget and only deal with
the key members.
- Construction starts before
completion of design.
- Able to eliminate contractors who
are not performing well.
3. Procurement
Management Contract
- Largely conditioned by the
complexity of the project
- Appoint consultant team to prepare
project drawings
- Appoint management contractor in
the early stage to participate in
planning and construction of the
project
- Can advise the design team on the
buildability of the design, tender
action, construction programmes and
delivery of goods and materials
4. Procurement
Management Contract
- MC prepares the programme, decides
on the contents of each package to be
sub-contracted, organises and manages
the construction of all works
5. - Suitable for the
construction of
large complex
project
- without
considering the
cost control
- High degree of
flexibility on
design matters
as designs can be
adjusted.
- Time saving
- Deal with only
few parties
Why Management Contract ?
6. Why not others ?
Traditional
➔ Longer project duration
➔ Cannot input into design and
planning of project
➔ Taking risk associated with
fixed price
Design and Build
➔ Clients meet difficulties preparing
sufficiently comprehensive brief
➔ Difficulties to compare bids.
➔ Restricts the clients to make
changes to the design
➔ Changes of project scope can be
expensive
➔ Employer get less control of the
aspect of the project
Contract Management
➔ Client has more direct trades
contractors need to deal with
➔ Developer has a contractual
relationship with the works
package contractors
8. - Time saving
- Cost saving
- Chances of default minimized
Why Selective Tender ?
9. Contract Arrangement
“ Contractor is paid for all
construction related expenses as
previously agreed and the plus
refer to the profit allowed to be
earned by the contractor.“Cost plus
10. Why Cost Plus Contract ?
- Not enough data
to perform a detail
estimate of the
work
- Contractor selected based
on their qualification
instead of lower bidder
- The design is
not complete
11. Cost Plus The contractor bills the client
for direct costs, plus a fixed fee
for overhead and profit.
Cost plus fixed fee
12. Why Cost Plus Fixed Fee ?
- Work can be
done faster
and on
budget
- Focus on
quality instead
of cost
- Good
reputation
MC will be
appointed
- Only pay for
work complete,
with open books,
at known rate
- Construction
start before
completion
of design
- Fee is fixed
regardless of
price fluctuation
13. - Standard Contract use in
Malaysia
- Pertubuhan Arkitek Malaysia
(PAM)
- Public Work Department
(PWD)
- International Federation of
Consulting Engineers (FIDIC)
Form of Contract
14. Modified form of contract based on PAM
Contract 2006
- Management Constructor will
take over architect’s role in
managing and supervising the
building contract.
- Architect and other
consultant team involved in
pre tender stage only.
- Client deal with one party
only.
Form of Contract
15. Why PAM Contract 2006 ?
Managing cost
- Clause 11 & 30
Managing time (Date
of commencement &
completion date)
- Clause 21
Managing quality
- Clause 6
Managing time
(Extension of time)
- Clause 23
