5-Issue12April2010

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YOUR PERSONAL COPY

The newsletter is published by theBusiness Environment DevelopmentSector of CIDB Malaysia with thesole aim of disseminating strategicinformation to the whole spectrumof stakeholders in the Malaysianconstruction industry. Recipients ofthis newsletter will benefit from thebreaking news in the constructionbusiness environment, especially inthe areas of strategic constructioneconomics information includingprice trends of construction resources,tender and contract administration andmanagement, best practices, newinitiatives in construction managementand construction opportunities.

EDITORIAL LINE-UP: Sariah Noridah Siti Fatimah Pang Halimi Siti Aminah Heryanti Farris Yusri Che Saliza Nur Ima Nazir Farrah Fazini Nisrinah Enerda Shahreen Fariq Faranesha Hanishahani

ISSUE

12Apr 2010

www.cidb.gov.my

SnapshotsTOP 10

PROJECTS AWARDED JANUARY-FEBRUARY 2010 (Recorded as at 31st March 2010)

Contact Person: Nisrinah, 03-26170209 / [email protected]

*Detail information on projects awarded in the country is available in Daftar Projek Pembinaan published monthly by CIDB Malaysia

Whats New

Publisher:Business Environment Development Sector, Construction Industry Development Board, Level 10A, Grand Seasons Avenue, 72 Jalan Pahang, 53000 Kuala Lumpur, Malaysia. Tel: 603 2617 0249 Email: [email protected]

The PDF version of this newsletter is available at www.cidb.gov.my and www.1BINA.MY

92

21

16

36

19

22

40

2

33

49

24

115

13

56

538

Johor

Kedah

Kelantan

Melaka

Negeri Sembilan

Pahang

Perak

Perlis

Pulau Pinang

Sabah

Sarawak

Selangor

Terengganu

W. Persekutuan

TOTAL

Location No. of Projects Value of Projects (RM mil)

523.59

273.42

121.75

291.27

270.51

118.71

182.91

13.62

168.96

329.56

327.65

1,469.22

121.41

1,258.04

5,470.62

PROJECTS

A total of 538 projects valued at RM5.47billion were recorded from January toFebruary 2010. During this two-monthperiod, Selangor led the other stateswith RM1.5 billion worth of projects,followed closely by Wilayah Persekutuanwith RM1.3 billion and Johor withRM0.52 billion.

For the month of February 2010, thenumber and value of projects declined

by 32.9% to 216 projects and by 35.8 %to RM2.1 billion respectively, comparedwith the preceding month.

The Private Sector continued in itsstrong performance to record 152projects worth RM1.72 billion against 64 projects valued at RM0.42 billion by theGovernment Sector in February 2010.

Residential (RM1.01 billion), Non-Residential (RM0.58 billion) and InfrastructureProjects (RM0.11 billion) remained as the mainstay of the Private Sector thataccounted for nearly 80 % of the total project value. The Government Sector, on theother hand, registered infrastructure projects at RM 0.26 billion, social amenitiesprojects at RM 0.09 billion as well as Non-Residential projects at RM 0.04 billion asthe top categories.

The three biggest projects for February 2010 were the construction of residentialhouses and condominium blocks in Petaling Jaya (RM169 million) and Mont Kiara(RM165 million) respectively and the road dispersion project at MRR2 KualaLumpur (RM105 million).

Generally, positive sentiments were echoed throughout the country with mosteconomists reviewing Malaysias GDP growth at a higher rate than the initialestimation. For the second quarter of 2010, the Business Condence Index (BCI)

rose by 13.5% year-on-year, while the Consumer Sentiments Index (CSI) increasesby 4.3% year-on-year. This was followed by the announcement of the rst draft ofthe New Economic Model on 30 March 2010 by the Prime Minister that wascomplemented by the better-than-expected results of 10.1% economic growth forthe rst quarter of 2010. This in turn will push the stock market and Ringgitexchange rate up, as condence starts to build which will indirectly boost the localproperty market further.

No.of Projects

Jan 2010 Feb 2010

RM3,3

32.3

5m

RM2,1

38.2

7m

0

50

100

150

200

250

300

350 322

216

Value of Projects(RM m)

0

500

1000

1500

2000

2500

3000

3500

Value of Projects

No.of Projects

encompassing adoption of Value Management and Life Cycle Costing as relevantcost data can be provided for working out initial, running and replacement costs to beincurred in construction projects.

To full the objectives in creating the N3C as a one-stop information centre forconstruction costing, fourteen modules have been identied as relevantcost- centres:

Building Materials Price

Lab our Wage Rate

Machinery Hire Rate

Uni t Rate for Major Items

M&E Component Price

Average Percentage for Preliminar ies

Const ruction Cost Index (CCI)

Tender price Index

Materials Cost Index

L abour Out and Unit Rate

Construction Labour Cost Index

Construction Machineries Rental Cost Index

Composite Rate

Elemental Cost Analysis (ECA)

Amongst the many tasks entrusted to CIDB under the Construction IndustryDevelopment Board Act (Act 520), one is to initiate and maintain a constructionindustry information system. This task has become increasingly important inrecent years as the construction industry gained momentum in the value ofawarded construction projects at home as well as oshore. To emphasise thisimportance, the Strategic Thrust 2 of the Construction Industry Master Plan (CIMP20062015) provides recommendations for the enhancement and increase oflevel of professionalism as well as excellence in construction, and theP2P(Procurement to Pay) Strategy within the construction community.

The call for enhanced professionalism in the industry prompted CIDB to draw up aproposal for the development of an N3C initially referred to as Construction IndustryCost Information Service or CICIS. The N3C is expected to be implemented in threestages development, operationand future developmentphases.

Currently, Construction Cost Information have been compiled from studyobservations on labour, cost of building materials and cost of M&E buildingmaterials categorised as :

Labour Cost and Labour Output Information (from a participation of Sixtycontractors from grades G5, G6 and G7)

Average Price and Price Index of Building Materials (based on a continuouscompilation of published average price of building materials)

Mechanical and Electrical Building Material Price Information

The perspective on Value Management needs to go beyond the common notion thatit is nothing more than a cost-cutting tool. Value Management should be viewedfrom the angle of Life Cycle Costing, where information derived thence would helpmake informed and calculated decisions. The N3C is seen to complement the

Contact Person: Nazir Muhamad Nor, 03-26170324 / [email protected]

CIDB is focused on the formation of an N3C (National Construction Cost Centre) wit h its full implementation targeted for

2012. How relevant is an N3C in enhancing the reputation of our Malaysian Construction Industry as world class?

N3C TOWARDS AN INFO SAVVY CONSTRUCTION INDUSTRY

A full listing of projects awarded in the country is updated on amonthly basis. For more info, visit www.cidb.gov.my

CONSTRUCTION PROJECTS IN VALUEfor January 2010 as at 31 March 2010

No. Projects in Brief

1 Project Value : RM291,180,764.38Site preparation, earthworks and main drain for runway 3

at new LCC Terminal

Contractor : Gadang Engineering (M) Sdn. Bhd (Foreign)

Date of Award : 11/01/2010

Date of Completion : 18/12/2010

Location/State : Sepang Selangor

2 Project Value : RM241,298,000.00Development of Boulevard Plaza

Contractor : Bina Rezeki Sdn. Bhd.(G7)



Location/State : W.P Putrajaya

3 Project Value : RM181,818,000.00Office building and external works at Precinct 2

Contractor : Putra Perdana Construction Sdn. Bhd.(G7).



Location/State : W.P Putrajaya

4 Project Value : RM164,300,000.00 Integration Quarters at Pusat Kawalan Kusta Negara Contractor : Dinamik Maju Corporation Sdn. Bhd.(G7)



Location/State : Sungai Buloh, Selangor

5 Project Value : RM140,000,000.00Institut Aminuddin Baki (IAB) Sarawak Branch

Contractor : Gappdms Sdn. Bhd.(G7)



Location/State : Kuching, Sarawak

6 Project Value : RM96,072,125.43Kolej Tentera Udara (KTU)

Contractor : Keindah Sdn. Bhd.(G7)



Location/State : Kepala Batas, Kedah

7 Project Value : RM66,170,000.00Town houses and other related works

Contractor : Paksi Teguh Sdn. Bhd.(G7)


Date of Completion : 21/05/2010Location/State : Dengkil, Selangor

8 Project Value : RM63,558,000.00Embedded retaining structure foundation and basement

structure

Contractor : Econpile (M) Sdn. Bhd.(G7)



Location/State : Damansara, W.P Kuala Lumpur

9 Project Value : RM63,200,000.00 Mainroad from Jalan Seelong to Taman Impian Emas,

Tebrau district

Contractor : Woon Brothers Construction Sdn. Bhd.(G7)



Location/State : Johor Bahru, Johor

10 Project Value : RM57,107,760.00

98 units 2 1/2 storey terrace house and a TNB Sub-stationContractor : T.J Civil & Structural Contractor Sdn. Bhd.(G7)



Location/State : Subang Jaya, Selangor

ResidentialNon Residentital

Mix DevelopmentSocial Amenities

InfrastructureOthers

GOVERNMENT PROJECT

Va

lueofProjects(RM

mil)

Jan 10 Feb 100

50100

150

200

250

300

350

400

Jan 10 Feb 100

200400

600

800

1000

1200

1400

1600PRIVATE PROJECT

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No. Major Building Materials Unit Penisular Sabah SarawakLower Higher Average Lower Higher Average Lower Higher Average

RM RM RM RM RM RM RM RM RM1 Ordinary Portland Cement

Bag (50kg) Bag 13.67 14.67 14.21 16.30 16.50 16.37 14.30 15.80 15.20Bulk MT 266.67 285.00 276.67 - - - - - -

2 ReinforcementMild Steel Bar MT 2166.67 2316.67 2249.21 2260.00 2550.00 2385.56 2366.67 2600.00 2491.11High Tensile Bar MT 2166.67 2316.67 2272.33 2310.00 2500.00 2390.19 2303.33 2480.00 2379.63BRC m2 5.35 15.53 9.94 7.07 20.50 13.25 6.93 20.50 13.06

3 Granite Aggreggate 3/4" MT 22.33 24.33 23.67 48.67 55.00 52.11 28.00 29.00 28.674 River Sand

Normal Sand MT 7.67 21.00 12.97 30.00 35.00 33.00 28.00 30.33 29.22Fine Sand MT 10.33 24.67 17.56 31.67 35.00 33.67 30.00 30.67 30.22

5 Mining SandNormal Sand MT 9.67 19.33 14.75 - - - - - -Fine Sand MT 10.67 24.33 19.06 - - - - - -

6 Ready Mix Concrete m3 170.33 235.00 198.82 220.00 318.00 281.21 217.67 320.00 267.027 Brick

Clay Brick piece 0.27 0.34 0.31 0.32 0.34 0.33 0.32 0.32 0.32Cement Sand Brick piece 0.20 0.24 0.22 0.31 0.33 0.32 0.30 0.30 0.30

Average Prices of Major Building Materials for Semenanjung, Sabah & Sarawakfor February 2010

Contact Person: Pang Kang Wah, 03-26170306 / [email protected] mt=metric tonne m2 =meter square m3=meter cube

Zoom In: Insights and Q&A on Asset Facility Management

In Malaysia today, Asset and Facility Management (AFM) has developed into an all important p rofessional service that enables the proper administration of the upkeep of our nationalassets. In our previous issue, we have discussed the elements related to the better understanding and execution of AFM. We have outlined as to what constitutes asset life cycle,explained the terminology of Maintenance Management and Property Management, following which we have also shown how these elemental practices play a role in the upkeep ofnational assets.

In this issue, we shall go a step further into enhancing our readersknowledge on AFM. We shall enlighten you on the status of AFM under Malaysian law and regulations, its currentlevel of understanding amongst asset stakeholders as well as the future direction of and opportunities in AFM.

Q9: How does AFM contribute towards future manpower development?A:AFM is a specialised eld that requires well trained and informed personnelto operate in an ever changing environment of asset upkeep. As theunderstanding of AFM widens and more asset stakeholders adopt the

practice, so will the need to engage professional managers who can be

designated as Chief Asset Ocer or Chief Facility Ocer. It would beimperative that these Ocershave a broad knowledge of the asset/propertymarket, understand the business of the organisation and practices eectivecommunication skill. This will be a new category of professionals in the

Malaysian asset management industry from what is currently available.

Q10: What is the current level of understanding of AFM in Malaysia?A:A recent CIDB study population comprising a signicantly large percentage of

asset stakeholders including from private listed companies, local authorities, government agencies, public listed companies, GLCs, federal government, etchave indicated satisfactory levels of understanding of Asset and Facility

Management. 50% of the study population demonstrated good practices attheir workplace and, more than 50% were satised with the level of service

provided.

There is room for improvement at this juncture. It may be worth mentioning thatthose who have not adopted AFM have encountered unnecessary setbacks inconsistent breakdowns which had led to frequent downtime and escalatingoperational costs.

Q11: Is AFM governed by Malaysia n law and regulations ?A: Whilst there is no consolidated act & by-law, regulation or guideline for

AFM practices in Malaysia to date, the practices do adhere to the existingforms of published and enforceable Malaysian acts & by-law, guidelines andregulations issued by various government ministries, departments and

agencies. It is imperative for AFM policies to adhere to related best practicesin health and safety, environmental conservation and cost eciency thathave been gazetted as guidelines and regulations so as to be compliant to

globally accepted standards in asset management.

Q12: What is the prospect of the Malaysian AFM industry?A: Malaysia is one of the fastest growing economies in Asia with intensiveongoing development amidst the globalisation backdrop. With emphasisbeing placed on its infrastructure, we can expect Malaysia to create andmaintain a globalised Asset and Facility Management information bank,with updated information on market trend, current best practices andbenchmarking.

Malaysian AFM participants shall develop new trends in asset management practices with environment conservation technology that leads to anintroduction of smart buildings, computerised maintenance management

system (CMMS), geographical information system (GIS), VR maintenance a ndearly detection system amongst others. This valuable information will beexchanged globally with similar assoc iations to provide support for the entireand common need of better management of a built environment acrossinternational borders.

Contact Person: Mohammad Farris, 03-26170245 / [email protected]

MAGAZINES/JOURNAL

1. BULETIN THE INGENIEUR VOLUME 45 MARCH MAY 2010Published by Board Of Engineers Malaysia

2. CONCRETE TECHNOLOGY TODAY VOLUME 2 APRIL JUNE 2010Published by Trade Link Media Publication

3. BULETIN SENGGARA FASILITI JALANBIL 9 SUKU TAHUNAN MAC 2010

Published by Bahagian Senggara Fasiliti Jalan, Jabatan Kerja Raya Malaysia

4. ARCHITECTURE MALAYSIA (AM) JOURNAL OF THEMALAYSIAN INSTITUTE OF ARCHITECTS VOLUME 22 ISSUE 2 APRIL MAY 2010 : Building Blocks For The Future

Published by Pertubuhan Akitek Malaysia (PAM)

BOOKS

1. 5TH EDITION ENGINEERING - Fundamentals and ProblemSolving(ISBN9780073191584)

Published by Wiley-Blackwell Publication, London

2. LABOUR CONDITIONS FOR CONSTRUCTION- Building Cities,Decent Work, and The Role of Local Authorities (ISBN9781405189439)


3. STRUCTURAL ELEMENTS FOR ARCHITECTS AND BUILDERS Design of Columns, Beams, and Tension Elements in Wood, Steel, and

Reinforced Concrete (ISBN9781856177719)


4. REQUIREMENT ENGINEERING FOR COMPUTERINTERGRATED ENVIRONMENTS IN CONSTRUCTION(ISBN9781405189453)


5. QUANTITY SURVEYORS POCKET BOOK(ISBN9780750687461)Published by Wiley-Blackwell Publication, London

6. 2ND EDITION LAND DEVELOPMENT CALCULATIONS -Interactive Tools and Techniques for Site Planning, Analysis, and Design

(ISBN9780071603218)

Published by McGraw-Hill Publication, New York

7. 11TH EDITION ENVIRONMENTAL SCIENCE - A Global Concern(ISBN9780073383217)

Published by McGraw-Hill Publication, New York

CIDB LIBRARYLatest Additions

Contact Person: Yusri Parlan, 03-26170303 / [email protected]

THE MALAYSIAN CESMM

Contact Person: Farrah Fazini, 03-26170298 / [email protected]

Intensive efforts to step up usage of CESMM in the MalaysianConstruction Industry are understandably vital. This isconsidering that the mammoth value in civil engineering workprojects awarded in Malaysia had tipped an average of RM22billion over the current 5 year period, and is continuing to grow.CIDB has in-exhaustive avenues for promoting CESMM (M), thelatest being an effort through Industry Partnering activities.

The 2010 joint initiative between CIDB and Lembaga LebuhrayaMalaysia launched a series of CIDB-Lembaga LebuhrayaMalaysia Joint CESMM (M) Seminars being conducted toeducate and create awareness amongst participants. Theseminar titled The Standardising and Enhancing Bills of Quantitiesfor Civil Engineering Works using CESMM (M) were successfullyorganised for Kuala Lumpur and Penang in the first quarter ofthis year.

These one-day seminars were moderated by Pn Sariah Abd Karibfrom CIDB and En. Mohd Saleh Santhiman of LembagaLebuhraya Malaysia. Panelists presented topics ranging from anOverview of Malaysia Highway Construction Projects and itsContract Management Implementation through Highlights ofSalient Classification in the CESMM on various engineeringworks classifications.

The afternoon session discussed The Need toStandardize Bills of Quantities for Civil EngineeringWorks with Case Study on Projek LebuhrayaPenswastaan Eastern Dispersal Link (EDL) JohorBahru; ending with the topic Consulting EngineersPerspective on SMM in Civil Engineering Works.

Perhaps, the objective of the entire seminar effort washighlighted in Kuala Lumpur when, Sr Hisham Jafreyin response to a query from Puan Sharifah NorainiNoreen of Perunding DMA Sdn Bhd, stressed the four strengthsof the CESMM (M), namely (i)the distinct division/coding providesa more organized document, (ii) provide the industry with a moreaccurate cost data, (iii) easy to implement and (iv) significantcost factor. These points were aptly emphasized to drive homethe importance of the implementation of CESMM within theMalaysian Construction Industry.

The seminars were held on 31st March 2010 at the EquatorialHotel & Resort, Bangi, with 350 participants and on 27th May2010 at The Gurney Hotel & Residence, Penang with anattendance of 200 participants.

Instilling best practice in procurement, projectsmanagement and contracts administration systemswithin the Construction Industry

Highlights

5-Issue12April2010

Documents

Transcript of 5-Issue12April2010