Pre-Contract

MARA University of TechnologyDepartment of Quantity Surveying

Faculty of Architecture Planning and Surveying

PREPARED BY : Khairul Hafizwan Bin Jabar

MATRIX NO. : 2008727213

REPORT A: Pre-Contract

MARA University of TechnologyDepartment of Quantity SurveyingFaculty of Architecture Planning and Surveying REPORT A: Pre-Contract

TABLE OF CONTENT

Acknowledgement Page 3

Introduction Page 4

1. Project Title Page 62. Location Page 73. Background Page 84. Consultants and their Roles Page 95. Pre-Contract Stage Page 266. Pre-Contract Cost Estimates Page 297. Preparation of Tender Documents Page 338. Tender Report Page 41

8.1. Type of Tender Page 428.2. Number of Tenderer Page 458.3. Tender Analysis Page 46

9. Type of Contract Page 4710. Main Problem Encountered Page 4811. Student’s Analysis Page 49

References Page 50

Appendices Page 51

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ACKNOWLEDGEMENT

Assalamualaikum,

Thousand thanks would not enough to show my appreciation to thus who helping me out

to complete this report. Thus, I would like to show my appreciation with praise to the almighty

god Allah S.W.T.

Alhamdulillah,

I’d finish this report to meet the dateline as to complete my practical training. Million of

thanks to the AAJ SDN. BHD. and Sr. Arrifin Bin Omar as a director who give me opportunity to

doing my practical training.

Million of thanks to all my senior workmates especially En.Khalil Harun who guide and

giving me advise about pre-contract that will not only applicable for this report but will usable

also in industry.

Not least, my lecturer En. Muhamad who giving advice and check my poor paper work

and willing to comment even I barely miss the dateline.

THANK YOU

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INTRODUCTION

In the fields of architecture and civil engineering, construction is a process that consists

of the building or assembling of infrastructure. Far from being a single activity, large scale

construction is a feat of human multitasking. Normally, the job is managed by a project

manager, and supervised by a construction manager, design engineer, construction engineer,

or project architect. There is two stages in the construction which is pre-contract and post-

contract.

Pre-Contract stage is the stage that consist the Inception Stage until the Tender Action

Stage. In every stage, the Quantity Surveyors will play their important roles to make sure that

the entire requirement needed in preparing the tender document has been done. The stages

that involved in the pre-contract stage are:

Hereby this report will explain the stage of Pre-Contract. One of the projects from

Quantity Surveying Firm AAJ ASSOCIATES SDN. BHD. has been choose as the case study

and will be discuss in detail explanation. The Pre-Contract stages are the first stage in the

project construction, which it client will appoint Design Team which stands such as Architect,

Quantity Surveyor, Engineer (Civil Structure and Mechanical Electrical), Land Surveyor, Interior

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PRE-CONTRACT STAGE

PRELIMINARY ESTIMATE

FEASIBILITY STUDY

COST STUDY

FINAL APPROXIMATE AND

COST PLANNING

PRICING THE LIST OF MATERIAL

COST ESTIMATE


Designer, Landscape Architect and etc. This team normally takes Architect as a leader but in

this project client has appointed a project manager to lead this team and this process purpose to

make sure the planning more successful to get the best design that follow which client’s need.

This report will tell us the various actions that the consultant especially what us, as QS

Consultants have to do and we will have to respond with others in the Design Team in the pre

contract stage. It is our responsibility to make sure that the project will be hand over to the right

and qualified contractor as to meet the QS principle which is “value for money”. Then, the

contractor will carry out the job that has been awarded to them with responsibility. The roles of

Quantity Surveyor are very important in pre-contract stage because the professional services

offered, cover all the aspects under the contract management scope and the preparation of

project cost estimate.

I’d choose the below project because I involve in the bill of quantities preparation and

tendering process until contractor was appointed on my practical training, thus it will allow me to

put more of my understanding into the explanation. On the time this report are write, the

construction upon started.

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1. PROJECT TITTLE:

THE PROPOSED OF CONSTRUCTION & COMPLETION OF PACKAGE 1 FOR THE

MARINE FISH HATCHERY CENTRE IN MERCHONG PEKAN, PAHANG DARUL MAKMUR

(ECERDC/AG/T11-015)

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2. LOCATION

This project planned to be proposed at the downstream of Sg. Merchong as it is a

strategic place for fish and shrimp rearing. It also has tourism value to attract tourist as add on

for Pekan, Pahang to be an economic center.

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3. BACKGROUND

Type of Tender:

Tender open for bumiputra contractors with the following qualifications:

REGISTERED WITH THE CENTRAL CONTRACTOR SERVICES(PKK): Class A, HEAD III

REGISTERED WITH THE CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB).

EXPERIENCE AND HAS BEEN WORK PREPARING FOR THE EQUIVALENT VALUE OF

AT LEAST ONE OF RM5.0 MILLION CONTRACT WITHIN 5 YEARS PRIOR.

Contract type: Conventional on list of quantity (BQ)

client budget: RM 30,000,000.00

Department estimate: RM 29,306,827.39

contract sum: RM 30,105,889.17

duration of contract: 60MONTHS

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4. THE ROLES OF DESIGN TEAM IN PRE-CONTRACT

List of parties involved

Project client:

EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL (ECERDC)

LEVEL 69, TOWER 2,

PETRONAS TWIN TOWERS

KUALA LUMPUR CITY CENTRE

50088 KUALA LUMPUR

Project Manager:

KLCC PROJECT SDN. BHD.

LEVEL 36, TOWER 2

PETRONAS TWIN TOWERS

KUALA LUMPUR CITY CENTRE,

50088, KUALA LUMPUR

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Principal Consultant:

NORZAKIAH ARCHITECT

A12B-2 JALAN SELAMAN 1/1

DATARAN PALMA, 68000 AMPANG

SELANGOR DARUL EHSAN

Sub Consultant:

Civil & Structural Engineer

RMS & ASSOCIATES CONSULTS

NO 88A JALAN BADMINTON 13/29

SEKSYEN 13

40100 SHAH ALAM

SELANGOR

Mechanical & Electrical Engineer

PERUNDING TIMUR SDN BHD

8-A PERSIARAN ZAABA

TAMAN TUN DR. ISMAIL

60000 KUALA LUMPUR

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Town Planner

METROPOLIS PLANNING

NO. 8 JALAN TANJONG DAHAN 30/17

KOTA KEMUNING

SEKSYEN 30

40460 SHAH ALAM

Land Surveyor

SYARIKAT MAHYUDIN & SIEW SDN. BHD.

NO 79-1 JALAN 1/91

TAMAN SHAMELIN PERKASA

3 ½ MILES JALAN CHERAS

56100 KUALA LUMPUR

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Environmental Consultant

DR. NIK & ASSOCIATES SDN BHD

NO 22 & 24 JALAN 1/27F

SECTION 5 PUSAT BANDAR WANGSA MAJU

53300 KUALA LUMPUR

Quantity Surveyor

AAJ ASSOCIATES SDN. BHD.

NO. 2B (TKT 2), JALAN TENGKU AMPUAN ZABEDAH A 9/A

SEKSYEN 9

40100 SHAH ALAM

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Recirculating Aquaculture Systems Specialist

AKVA GROUP MALAYSIA SDN. BHD

SUITE 2004, CROWNE PLAZA MUTIARA KL

JALAN SULTAN ISMAIL

50250 KUALA LUMPUR

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Figure 1:Above show the hierachy in this project

Consultants are responsible to the Project Control Group to provide specialist expertise and

advice in management, planning, design and construction.

In most projects the Principal Consultant will be the architect. The Principal Consultant is

responsible for leadership of the consultant team. For this project, a Project Manager which is

KLCC PROJEKS responsible for leadership of the consortia of consultants and sub-consultants.

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ECERDC (client) KLCC PROJEKS (PM)

ZAKIAH ARCHITECT (architect)

AAJ ASSOCIATES (QS)

RMS ASSOCIATES (C&S)

PERUNDING TIMUR (M&E)

METROPOLIS PLANNING (TP)

SYARIKAT MAHYUDIN &

SIEW (LS)

DR. NIK & ASSOCIATES (EC)

AKVA GROUP (RAS Specialist)


a) Client

Projects exist along with client demand. Client is divided into two which is the government

sector and private sector. Government sector is the client in the most construction project,

especially for the infrastructure which is to provide facilities and amenities. While the Private

sectors demand project which profitable such as construction of shopping complex, housing

area and etc. Client is the natural or legal person, for whom a structure is constructed, or

alternatively the person or organization that took the initiative of the construction.

For this hatchery project the client is Government Link Company which was given the

opportunity to carry the EAST COAST ECONOMIC REGION PLAN which covers the states of

Kelantan, Terengganu, Pahang and the district of Mersing in Johor with the objective of

narrowing the development disparities among states.

As client, they have their own roles which include:

They should discuss with consultant upon planning.

Next, Client will have to appoint consultants to help them to execute their project

based on their requirement.

They also appoint the Contractor which is achieving to price the tender appropriate

with their financial and other factors.

They must prepare the appropriate budget to spend on the project.

They have to pay the contractor based on the contract binding that they have meet

the agreement and they will approve the payment that is made by the quantity

surveyor by the valuation on the site.

In this case KLCC PROJEKS appointed to represent ECERDC as project manager,

all project affair will be issue by KLCC PROJEKS.

KLCC PROJEKS and ECERDC is the two separated unit but they actually are the same

company.

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b) Project Manager

The Project Manager is the team leader and is usually a separate appointment for

projects sensitive or complex projects. Appointment of a KLCC PROJEKS prefer by ACERDC

since all the project of ACERDC subbed to KLCC PROJEKS. They is expected to manage and

coordinate all aspects of the project during planning, design, documentation, construction,

equipping and commissioning stages.

The role of Project Manager in this purpose project can be described by the following:

Establish procedures and reporting requirements for liaison with client and consultant

team

If required assist in the selection of site, procurement model and client representation.

Assist in the selection and engagement of the consultant team

Manage and co-ordinate all consultants

Develop and manage the approved program and budget

Review and where appropriate, amend the project brief

Provide regular reports to and make recommendations to the design team

Prepare, manage, co-ordinate and ensure contract documents

Tender, evaluate and recommend construction works

Ensure appropriate quality assurance process including meeting sustainability and risk

management objectives

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c) Architect

For this project Zakiah Architect has been appointed as principal consultant, they has

complete one project for hatchery, thus they have experience in preparation of drawing.

Unfortunately the architect who involved with the project has resign thus they come with barely

from scratch.

Architect is normally wholly and entirely responsible to help client in this case KLCC

PROJEKS to set an approval of their plans from government and public. Architect is the most

important because they will explain to the client, necessity for the project. Then it will be given to

Quantity Surveyor for accordance estimate for that project.

The role of Architect in this purpose project can be described by the following:

As an adviser to the KLCC PROJEKS in the determination of design of the building,

material, specification and work method.

To get all the approval from local authorities and others body for the planning and

building approval.

Architect is a person that will provide all the architectural drawings based on the client

requirement.

To provide all the preliminary plan and sketches drawing that follow the client

requirement and pass to quantity surveyor to prepare a preliminary cost estimate.

Supervise all the work on site to make sure that contractor built as per drawing and

specification.

To endorse all the work at site done by contractor and provide the progress report for

client and quantity surveyor information.

To issue the architect instruction when he thinks it needed. Architect instruction issued

when changes or obstacles in construction work.

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To endorse the progress payment which provided by Quantity Surveyor for progress

claims by contractor.

To consider whether the building or structural fully completed and can issue the

certificate of practical completion and certificate of fitness or not.

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d) Quantity Surveyor

AAJ ASSOCIATES has been appointed as QS Consultant due to related experience on

hatchery construction. This project handled by Mr.Khalil Harun. The role of the Quantity

Surveyor in this purpose project can be described by the following:

To advise and give briefly explanation to client about the proposed project.

The Quantity Surveyor will explain to the client about the cost of the project.

To provide preliminary estimate and cost planning based on sketches of architectural

drawing.

This estimate can help the client to budget the cost implication for the proposed

project.

To give advice to client about the costs implicate on the design.

The Quantity Surveyor will assist him to select the material for the proposed

project.

To give advice to the client about tendering process and contract.

The client will know about the tendering process and the procedure of a contract.

To provide the tender document.

The tender document will assist the client to select the contractor with QS and

architect advice.

To evaluate the tender received and provide the tender report.

The Quantity Surveyor will advise the client which contractor is suitable to do the

project.

e) Civil and Structural Engineer

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RMS ASSOCIATES has been appointed as C&S engineer, they have a great background

in construction of factory but this is the first time they involved in construction of hatchery.

The role of the Civil and Structural Engineers in this purpose project can be described by

the following:

To advise client and architect in structural works.

To site and soil investigation before the designing process. It is for to determine the soil

condition and the workforce that can accepted by soil.

To design the structural for the building based on specification and architectural drawing.

The architectural and structural drawing must be no discrepancy thus a two ways

communication between this two parties needed.

To provide the plan and detail drawing for the structural items like foundation, column,

beam, slab and others.

To provide the drawing and preliminary estimate for the infrastructure works like road,

drainage system, sewerage system, water reticulation and others.

To supervise and evaluate the civil and structural works on site to make sure the

contractor follows the material and building specification.

To issue an engineer instruction if there any changes in works for the civil and structural

works.

f) Mechanical and Electrical Engineer

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Perunding Timur has been appointed as M&E Engineer consultant to advice on M&E scope

of work. The role of the Mechanical and Electrical Engineers in this purpose project can be

described by the following:

To design for electrical and mechanical wiring and fitting for the building based on client

requirement and their expertise.

To provide plan and detail drawing for the mechanical and electrical fittings that has

been choose.

To advise architect and client in mechanical and electrical works

To provide the design and specification for the electrical and mechanical works as air

conditioner, lift system, fire protection, communication system, water pump and others.

To issued an engineer instruction if there any changes if he thinks so and should be

done.

To provide preliminary estimate for the electrical and mechanical in assist client and

quantity surveyor to determine the budget.

To check and test all the mechanical and electrical equipments all in good condition and

safe to used. It also must be follow the specification stated.

g) Town Planner

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Metropolis Planning has appointed as town planner in this project. Their roles are necessity

since the area of the construction is on the seaside. Thus, proper planning needed for this

project. Furthermore, this project is one from ECER program means the area will be develop

phase by phase.

The role of the Town Planner in this purpose project can be described by the following:

Manage transport growth and provide incentives for people to make greater use of public

transport.

Redesign street layouts to improve public safety, control traffic and reduce crime

develop.

Manage parkland, woodland and waterways in a sustainable way.

Conserve historical buildings, archaeological sites and areas of local or national

importance.

Work with local people and businesses through community organizations and public

meetings to listen to ideas and concerns about planning proposals.

h) Land Surveyor

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SYARIKAT MAHYUDIN & SIEW has been appointed as land surveyor. Land surveying is

crucial to determined to exact area of construction and the condition of site.

The role of the Land Surveyor in this purpose project can be described by the following:

Land surveyors have to determine the location of boundaries of the land surveyed

Providing Proposed Plot Plans, Boundary Surveys, Building Location Surveys,

Foundation Location Surveys, Utility and Pipeline Surveys, Environmental Impact

Statements

They are also responsible to make boundary line adjustments, produce topographic

maps, retrace property lines and prepare subdivision maps.

i) Environmental Consultant

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DR. NIK & ASSOCIATES has been appointed as Environmental Consultant. They were

responsible with environment issue since the environments are importance since this project I

proposed near the sea and many environment factors must be taking into account.

The role of the Environmental Consultant in this purpose project can be described by the

following:

Environmental regulatory permitting and compliance.

Preparation of reports and materials to support licensing and environmental permitting

activities.

Project planning and scheduling to optimize productivity.

Assessment of environmental impacts of a proposed project.

Surveys of ecologically sensitive areas including threatened/endangered species habitat,

native and exotic plants, stream crossings and wetlands.

Development of construction field techniques in environmentally sensitive areas.

Provide environmental construction procedures training to all construction personnel.

Locate optimum access roads, staging, and fueling locations to minimize environmental

impact.

j) R.A.S Specialist

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AKVA GROUP has been appointed as Recirculation Aquaculture Systems Consultant,

AKVA GROUP is supplier and Aqua System based company. The role of the R.A.S Specialist in

this purpose project can be described by the following:

Provide and planning piping requirement for the system.

Assist architect to provide details drawing on the system.

Advice client about the system to meet client requirement

Provide specification to meet with client requirement

Provide supply rate to QS.

5. PRE CONTRACT STAGE CHART

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Detail Pre-Contract Stage

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PROJECT MANAGER & APPOINTED CONSULTANTS

PREPARATION OF TENDER DOCUMENT

PREPARERATION OF TENDER REPORT

LETTER OF ACCEPTANCE

CLIENT


Inception Stage

To prepare general outline of requirements and plan future action.

Set up client organization for briefing. Consider requirement and appoint architect.

People directly involve in this stage is all clients interest and Architect.

Feasibility Stage

To provide the Client with all appraisal and recommendation in order that he may

determine the form in which the project is to proceed, ensuring that is feasible,

functionally, technically and financially.

Carry out studies of client requirements, site conditions, planning, design and cost.

People directly involve in this stage is Clients representatives, architects, Engineers and

Quantity Surveyor according to nature of project.

Outline Proposal Stage

To determine general approach to layout, design and construction in order to obtain

authorization approval of the client on the on the outline proposal and accompanying

report.

Develop the brief further with carry out studies on user requirements, technical

problems, planning design and costs, as necessary to reach decisions.

People directly involve in this stage is all Clients interest, Architects, Engineers, Quantity

Surveyor, Specialists, All statutory and other approving authorities.

Scheme Design Stage

To complete the brief and decide on particular proposals including planning

arrangements, appearance, constructional method, outline specifications with costs and

to obtain all approvals.

Final development of the brief, full design of the project by Architect’s, preliminary design

by Engineer’s, Preparation of cost plan and full explanation report. Submission of

proposals for all approvals.

People directly involve in this stage is all Clients interest, Architects, Engineers, Quantity

Surveyor, Specialists, All statutory and other approving authorities.

Detail Design Stage

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To obtain final decisions on every matter related to design, specification, construction

and cost.

Full design of every part and component of the building with collaboration of all

concerned. Complete cost checking of designs.

People directly involve in this stage is Architects, Quantity Surveyor, Engineers and

R.A.S Specialists.

Production Information Stage

To prepare production information and make final detailed decisions to carry out work.

Preparation of final production information, i.e. drawings, schedules and specifications.


R.A.S Specialists.

Bills of Quantities Stage

To prepare and complete all information and arrangement for obtaining tender

Preparation of bills of quantities and tender document.


R.A.S Specialists.

Tender Action Stage

To obtain an acceptable tender.

Preparation of estimates and tender.


R.A.S Specialists.

6. PRE-CONTRACT COST ESTIMATE

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PRELIMINARIESESTIMATE

BUDGET

COST STUDIES

FINAL ESTIMATE COST PLAN

BILL OF QUANTITIES

PRICING OF BILL OF QUANTITIES

TENDER REPORT

Generally Pre-Contract Cost Estimate is an estimate for construction value in a project.

In this stage role of QS begin from Preliminaries Cost Estimate until Tender Report done to

appoint the best Contractor in this government’s project.

This Chart below shown the stages that must be precede before Contractor appoints.

Cost in a project only will be known after

preparation of pre- contract cost estimate

proceeds by Quantity Surveyor. In this context,

QS will prepared cost estimate in two (2) stages.

1. Preliminary Approximate Estimate

2. Pre-Tender Cost Estimate

PRELIMINARY APPROXIMATE

ESTIMATE

Preliminary cost estimate prepared based

on design and plan which it agreed and

included with simple drawing to make

assumptions in early stage with early planning

after preliminary drawing’s plan from

architect and engineer received.

Reasons this preliminary cost estimate

prepared.

As a value to checking whether provision

money enough. If the preliminary

amount more than provision money,

the design must be change to reduce

cost or additional money will apply.

Client known that how the provision money will use and distribute into the project.

This will make for design team easy to choose the suitable specifications of material

depend the provision money prepared of client.

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Apart of that this preliminary cost also to know reasonable cost as overall this project

and show the explanation to the client about overall cost in this project. In process of

preparation the preliminary cost estimate have many methods which can be used.

STEPS OF PREPARATION OF PRELIMINARY APPROXIMATE ESTIMATE

This measurement based on the Gross Floor Area. Window, door and sanitary Fittings

measure in number as EXTRA OVER. Half of items take as Lump sump for example plumbing,

Cold Water Supply and Waste Pipe as so on.

Price rate based on current price rate or market price and add with extra for items which

it cannot identify by measurement, for example price labour rate, machinery and cost of

management with profit.

Preliminaries are measured in extra percentages (%) in total overall cost estimate of the

project. For this project the percentages for preliminaries is 5 %.

Data Requirements

For this method, data which needs to be use is as below:

i. Sketch Plan or Preliminary Working Drawing

ii. Specification’s Note if not prepared assumptions must be prepared.

iii. Current Price Rate or market Price which normally takes it from already priced material

list or some analyzed reasonable price rate.

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Type of estimate methods in a project depends to:

i. Information or data that found in progress in prepared for this cost estimate.

ii. Depend on QS experiences in prepared the preliminaries cost estimate.

iii. Cost Data that found.

For this project method which choose is APPROXIMATE ESTIMATE

APPROXIMATE ESTIMATE

This method normally used to prepare the preliminary cost estimate. The method is the

easy than others because it based on ordinary procedures in prepared it and price list took.

The approximate quantities method was chosen because the estimate prepared be

accurate. It is also an alternative or a short-cut in preparing and to price the list of the quantities.

As a credit to those alternatives, this method is using the gross quantity and need more

assumptions to get the quantities. However this method also needs the gross. So, in order to

get gross layout, QS need a drawing and specification made by the architect and also QS as

consultant must know current rate recently.

The advantages of this method of preparing the preliminaries estimate are as shown

below: -

i) Each change in the design and the specification can be made to coordinate the

estimate.

ii) In preparing the preliminaries estimate, all estimates are dividing into all

elements or items and this can help the architect to design the building.

iii) This is the best method in preparing the preliminaries estimate if all the important

information is obtained especially drawing.

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iv) Knowledge and explored in knowing current rate and all the information needed.

The way in preparing this approximate quantity method is as follows: -

i) The bill of quantities is prepared the same way as the usual bill of quantities was

prepared. But in the approximate quantities method, the brief way is practice.

ii) Usually, this brief way contains all the measurement of the composite item that is

using one dimension set for couple of item. Price for this composite item is made

based on the current price and the allotment has to be made for all the items that

been measured.

iii) The measurement is made by disregard all the small items, laps and deduction

only be made to the big void only.

Sketch drawing, specification and current price for the quantities is important data to be

used in this method.

7. PREPARATION OF TENDER DOCUMENT

INTRODUCTION

Tender's document which is done it a document by generally containing data regarding

project those implemented. Document tender consist of several main parts that need leak by

the contractor as information to enter tender. It is important as parts of current reference

contract perform and its content is differ and depending to nature of the contract, method

tendering, project requirements and others. This document tender will lay better to choose

tendered and suitably to carry out construction project.

In this project, the drawing and specifications will become references to all party. When

the construction becomes any discrepancy or problems, we should contract document which

contain bill of quantities. Usually they will be remeasurement upon variance of work or any

quantities that been argue.

The complete tender document must be following the basic requirement below:

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All the provision of the Tender Document must be approved by the client first. It must

consist with the latest basic and fulfill the latest policies from the government and client.

Every request which has been stated must reasonable and credible.

The Tender Document must state that every client’s desire and there must be no

discrepancies.

The Tender Document which has been prepared must be fair to both sides which are the

client and other parties.

The provision in the Tender Document must be a basic to a contract which can be done

by a certain contractor.

The tender was prepared using Bill of Quantities (With Quantities). Taking off should be

done referring to drawing that are provided by architect and engineer. All information would

be important to tender or contractor to ensure them enable it make operational plan,

estimating cost work and assess the risk.

THE PURPOSE OF PREPARATION OF TENDER DOCUMENT

The main purpose of preparation of tender document is as the basic to provide contract

document after accepted offer by contractor. By such, document tender need to be prepared

completely. Any mistake and contradiction will arise problem to client especially involve

client financial allocation. To make sure a tender document filled complete, document tender

must be:

All the consultants will translate and represent the entire client’s desire in form of print

drawing (writing) so that it is easy for the other party which makes the offer to

understand.

All current requirements and rule proposed by the government or involved local council

must be obeyed that the document tender stated valid legal point of view.

Explain all directive and rules that need complied by the party contractor in conducting

construction work stated.

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Become reference to contractor and explain all directive and development institution that

need complied by contractor.

As a document starting to open tender before contract document is issue.

FLOW CHART OF PREPARATION OF TENDER DOCUMENT

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Drawings sent to the quantity surveyor by architect and engineer

If client agree with the Preliminary Cost Estimate, continue the process

of tendering

Quantity Surveyor prepare Preliminary Estimate

Quantity Surveyor taking off and get the quantity and edit entry into CATO

Double check by Quantity Surveyor


USES OF TENDER DOCUMENT

Contract Document will be prepare after process of Tender Document is done. As a

result, a contract between client and the contractor in any construction project will succeed.

The Factors of Tender Document is been prepared are as shown below: -

To be price by contractor and make their offer.

As a reference by the contractor or the client about the issue in the construction stage or

management process so there will be no discrepancy between the contractor and the

client.

To give a proper specification of work to be understand by contractor

Once agreed, tender document will be the contract document.

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Bill of Quantities then compiled to be tender document

Head of technical apartment will recheck and approved proper BQ


THE CHARACTERISTIC OF TENDER DOCUMENT

To prepare a good tender document a Quantity Surveyor must consider a few of

characteristic. A good tender must be fulfill all condition in prepare it. This important

document must complete all the detail to explain about all aspect about the project.

A Good tender document must fulfill all characteristics below: -

Must be reasonable, which means that it can be carry out by the contractor. It was

irrational for the contractor to be asked to do something, which is not possible to be

done, either technically or economically.

All the work that need to be carried out must be fulfill all t he desire of the owner in all the

matter such as design, construction and also the specification.

Must be fair between for all parties that involved. Which it means all the risks are not

only on the contractor’s side.

Well thought-out the entire client’s desire and also the policy of government, local

authority and the project’s owner. It should have an approval from them before the

project start.

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Explanations about the works must be clear stated.

Easy to understand by the parties that been involved

No difference between all the sections in the tender document.

CONTENT OF TENDER DOCUMENT

INSTRUCTIONS TO TENDERERS

This section stated at the first part of document because it’s content is important to

explain the instructions which must be follow and carry out by tenderers when enter

it.

All the tenderers must follow the instruction in this part to avoid from making

mistakes which it will affect the submitted tender document from tenderers will be

rejected.

For example the instruction in this part which it the tenderers must follow are using

the black ink during pricing the tender and complete the form, describe the place,

time and table tender document.

CONDITIONS OF TENDERING

This part need tenderers follow the conditions of tender in a project and tie the

tenderer which chosen and if any breach happen this conditions will be the

reference.

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Tenderers will signature this part with the witness and confirmatory chop from their

company.

Apart of that the content also tie with the tender validity period..

FORM OF TENDER

This part must be clearly to be understood and fill by tender.

Tenderer will state the price at this form.

This form must be fill by tenderer if tenderer agree with it’s content.if this form not fill

by tenderer as a result that tenderer will FAIL.

In this form the contractor have to stated the amount that they been offer for the

project in Ringgit Malaysia and also the construction period that they need.

The contractor also will fill in their name, their company name and all the company

detail. After all been completed, they will sign the form to show that all the

information that been given was true.

The signature of the contractor will brought them tied to the contract with entire offer,

such as the amount of contract and contract period.

PRELIMINARIES

Stated as Section “A”, Preliminaries act as a part in the tender document which

explain about all subjects that are not to be measure and stated in the bills of

quantity but this subject are very important in the construction to make sure that the

construction will perfectly done.

All these subjects are incriminating cost to the contractor. Preliminaries explained all

about the temporary works, and also the entire contractor’s desire and in this part the

contractor are given the permission to price all the subjects that are stated.

If the contractor chosen not to priced anything in this part, it will be defined that it was

priced in any part in the tender document. As example, there are shop drawings,

overtime payments, site office, clauses, maintainance, water and lighting, insurance

etc are stated in this preliminaries part.

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SPECIFICATION

This item can be defined as a detail works that agreed and needs to be carried out

by contractor during the construction stage without breach it. It also contains all the

details which were not to be stated in the drawing and also in the bills of quantity. For

example there are the detail of the material especially about the quality, types of the

material, method of work and also the quality of the work that needed in this project.

This like a guideline to explain in more detail to the contractor, easier to do price their

work before tender and their work after tender.

BILL OF QUANTITIES

A Bills of Quantities is a comprehensive document which it prepared by QS.

Quantities and material that measured followed the SMM2 which it agreed from all

consultants. Detail about all the matters in the project especially the materials, works

complete with their quantities and compile in the tender document by its elements.

Contractor will be easy during process to pricing all the elements.

All the materials, specifications and also the works in a few of description according

to the work on how the project to be construct, starting from the works below lowest

floor finish until the top of the building roof. The contractor only has to fill in their rate

in the provided space and grouped it all in summary section and tender form will be

proceeding.

DRAWING

The most important document in contract is drawing especially for the contract which

it based on the drawing and specification. For this project, to get more description

and project’s requirement, drawing will be referred because other matters have been

included in the bill of quantities. All the different kind of drawing for the project such

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as key-plan; floor plan, section and also the elevation for the building illustrate by an

architect and structural drawing from the engineer are compiled within the tender

document.

OTHERS/APPENDICES

Apart of that other part which compile in Tender Document are Preambles to all

trades in section C, general summary of all sections in external works, provisional

sums, schedule of finishes, schedule of sanitary appliances, schedule of day work

rates, schedule of plant and machinery, employee’s registration form, bank

guarantee form for earnest money and performance bond, schedule of contractor’s

organization and registration and others which it relevant. A good Tender Document

is complete with all section that explained before. If one parts a missing that Tender

Document a not complete and not in good condition for Tendering Process.

8. TENDER REPORT

Tender Report is an analysis report that been prepared by the QS about the tender

which submitted by the tenderers. This report prepared to give suggestion to the client about

the best contractor for the project through by evaluates the submitted tender document in

various aspects especially in perfectly complete by the tenderer.

The tender report been prepared after the date of tender is expired or been closed. The

process to choose the best contractor will more easily for the client. Contractor that is

qualified the best among the qualified can execute the construction for the project in such

perfect way. QS’s opinion or suggestion about the best contractor is important with choosing

the best tenderer to be appointed for the project. All the suggestion must be based on all

requirements of factors that have to consider such as the tender price, experience of the

tenderers, current work performance and etc.

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8.1 TYPE OF TENDER

The purpose of a tendering process is to obtain for the client an acceptable

tender (price, completion time and experience) from contractors who would be appreciate

for a proposed project. This tender is basis for a contract between client and contractor.

Factors to be considered when deciding on the method:-

i. The building type and size

ii. Nature and complexity of the project

iii. Likely method of construction, example traditional or innovative technology

iv. Extent of the completion of design documentation

v. Time required to complete the project

vi. Financial resources of the client, a firm price tender or reimbursement

The Quantity Surveyor must determine the suitable types of the tender that would be

used in the construction based on the above factors. There are several types of tender are

usually used, which are:

i. Open tendering

ii. Selective tendering

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iii. Negotiation tendering

iv. Serial tendering

v. Fast-tracking

Type of tender use for this project is open tendering. If the tenderer want to enter this

tender, they must pay Cash deposit / Postal Order / Money Order / Bank Draft on name of

Chairman of ECERDC as Tender Document fee payment.

Open Tender

Any contractor, who meets the specified requirements to carry out a proposed

construction projects, may submit a tender for the work.

The tenders can be invited through the advertisements in the technical, trade, and or

general press.

Advertising will give outline details of the work, its scale, programmed, the form of

contract and other relevant matters.

Commonly used by governments agencies to ensure the accountability of public funds.

The Advantages of the Open Tender

It allows any interested contractor to tender .It therefore gives the opportunity for an

unknown contractor to complete for the work.

Allowing the tender list to be made without bias. This is the aspect that attracts local

authorities who because of public accountability, wish to show demonstrate that they

obtain the best bargain possible for public money and have shown no favoritism in

selecting contractors.

Attracts a large number of tender and the bids are expected to be more competitive.

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This method allows a new contractor the chances of tendering for work.

The Disadvantages of the Open Tender

Lowest possible price will be obtained, although the experience and the financial

standing of such contractor are suspected.

Problems in selecting the best tender from a wide range of tenders.

A higher cost of administration of tenders, duplicating or prepare the tender document.

EVALUATION METHODOLOGY

1) There are three stages in tender evaluation report which is:

I. Short listed tenderers

II. Second stage evaluation

III. Third stage evaluation.

2) The short listed tenderers are prepared based on their pricing offer, beginning from the

tenderer who offer in reasonable prices to the department estimate. Only short listed

tenderer will be evaluate in the first stage of evaluation.

3) The first stage in evaluation tender is the process to examine and analyze the document

which is necessary attach by the tenderers in the tender document. The failure tenderers

will not be evaluating in the next stage.

4) The second stage is detail analyzing of the tenderers who has pass the first stage in

evaluation tender. This analysis will cover all the matter above:

a) Tender price

b) The tenderers experience

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c) The numbers of technical staffs

d) The others factors that can support the tender offer.

8.2 NUMBERS OF TENDERERS

32 tender has been bought and 25 tender has been return to be evaluate. 10 tenderers then

short-listed to be evaluated. In 10 tenderers only 3 has been choosed to be suggested to client

after tough consideration by QS.

The ten tenderers price listed as below:-

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Tender

No. Amount(RM)

1/24 33,219,291.32

4/25 25,200,200.00

9/25 27,818,000.00

10/25 33,603,378.11

11/25 34,951,000.00

16/33 33,129,434.91

17/33 30,105,889.17

20/33 31,412,011.17

21/33 31,500,000.00

24/33 28,090,000.00


8.3 TENDER ANALYSIS

The Quantity Surveyors analyzed ten tender from the first stage result to obtain the most

reliable tender with reasonable price to be suggested to client.

There is three tenderers offer the nearest price with department estimate and have

submitted good and completed tender thus they were suggested to client to be consider along

with others ten short listed as to give client clear view why we suggest them. At last AHMAD

ZAKI SDN. BHD has been chosen by client to perform this project. The agreed contract sum is

RM 30,105,889.17.

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9. TYPE OF CONTRACT

Contract Document is defined as an agreement bonded between the Client and the

Contractor in order to perform the project construction. It is an agreement that have been

signed by both parties.

In preparing the Contract Document, it must be fair for both parties where the client will

get the physical value from his payment and the contractor shall be paid for his work done.

It is important in choosing the right type of contract and the appropriate contract form to

obtain effective effect.

Nowadays, project in private sectors mostly used the PAM Contract Form with

Quantities or Without Quantities. This kind of contracts is managed by the Malaysian

Architect Organization (PAM - Pertubuhan Arkitek Malaysia). Meanwhile, for the

Government or Private Sectors, the form used is PWD 203A whereas the quantities are part

of the contracts and PWD 203 Form for the contract without quantities.

For the proposed project the type of contract which is used is Tradisional Method based

on Bill of Quantities.

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Contract based on Bill of Quantities is the best contract in the construction indsutry.

Which mean the bill of quantities is rocognize as a part of te contract. All the quantities is

more accurate and all the changes of quantities cannot be done unless there are an agreed

from Suppretending Officer.

Architect will prepare the drawing and Quantity Surveyor will prepare the Bill of

Quantities for tender document before inviting the tenderer.

After that, the Contractor will bid their price to all work that included in the tender

document. The amount of contract is a sum from element price which obtained from every

collection page and carried to sum the element,

10. MAIN PROBLEMS

In this project, problem start with architect, where they provide inexperience architect

which many differentiation detected on the drawing and many query list submitted. This also

due to R.A.S specialist who didn’t give their cooperation and didn’t communicate with

architect.

Engineer also having difficulties to provide civil and structure drawing many change was

made until 1 week before due date of client time given to QS.

1) Problem That Faced By The Party Quantity Surveyor

a) Problem at the level Preliminary estimate

Price fluctuation building material influence estimate preliminary because preliminary

estimate make with take into account building cost rate today. Architect often change the

design, this resulted Quantity Surveyor forced contact Architect and Engineer to obtain

complete drawing.

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b) Problem at the level preparation Document Tender

Quantity Surveyor to faced problem late receiving drawing from the Architect and

Engineer, so by this problem the preparation of tender document was delay.

Factors of delay of drawing are because engineer and architect drawing was not tally. Thus

modification to modification was made.

c) Problem at the level Tender Report

Problem that often occurs at stage is tendered not delivery complete information

considered for consultant to preparing assessment. For example as background business,

finance and experience company.

Arithmetic error always been made, this will cause difficulty on the Quantity Surveyor to

preparing assessment to find eligible contractor manage the project.

11. STUDENT ANALYSIS

After much reading and in-depth coverage in completing this report, I come to

understand that the Pre contract stage is considered the most vital stage in the construction

of a project. Most of the consultant's involvement revolves within this stage.

Among the analysis that can be made during the pre contract stages are:

Communication between parties is essence to make sure this stage going smoothly

It is vital that the preliminary estimate submitted by the quantity surveyor to the client

is as accurate as possible and is reliable. This can evade further costing problems

which most projects face.

Tender document must be carefully done to make sure that no errors such as paging

and spelling errors. A minor mistake will defect the contract will be not liable.

The type of tender and contract that is chosen must be suitable to the client’s needs.

This will affect cost effectiveness to meet the client requirement.

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A Quantity Surveyor must ensure that all the client’s needs are fulfill in the tender

document. The contractor will follow the tender document to satisfy the client. That is

why it is important that the tender document is done with perfection and precision.

During the process of tendering, the chosen tenderer must be as qualified in their

workmanship and punctual in completing the project.

Upon preparing this Pre-Contract report, the benefit I gain was:

Understand task Quantity Surveyor practicality and know more role played by

Quantity Surveyor in the project pre contract.

Understand the scope of work of every parties in Pre-contract stage.

Understand the procedure in preparation tender document.

REFERENCES

1. Contract Document of: THE PROPOSED OF CONSTRUCTION &

COMPLETION OF PACKAGE 1 FOR THE MARINE FISH HATCHERY CENTRE

IN MERCHONG PEKAN, PAHANG DARUL MAKMUR (ECERDC/AG/T11-015)

2. PERKHIDMATAN PROFESSIONAL JURUUKUR BAHAN PERINGKAT-

KONTRAK, Syed Abdul Syed Mustapa dan Busral Karim Md. Yusob,

UPENA,2007

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APPENDICES

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Pre-Contract

Documents

people directly

pahang darul

syarikat mahyudin

quantity surveying

preliminary

current price

entire clients

provide preliminary