Chapter 1

CC202CC202CONTRACT CONTRACT

PROCEDUREPROCEDURE

CC202CC202CONTRACT CONTRACT

PROCEDUREPROCEDURE

CHAPTER 1CHAPTER 1

THE CONSTRUCTION INDUSTRY IN GENERALTHE CONSTRUCTION INDUSTRY IN GENERAL

CONSTRUCTION INDUSTRY IN GENERAL

Generally :

Construction industry is one of the important element to stabilize our country. It’s also act as business course that involving building works, civil works, mechanics, water, electricity, quary, development of land & forest and many more. The main objective is to get investment/investment profits to the nearest maximum. To ensure construction projects run smoothly, a well-organised management including tender/contract document preparations should be done from early stages to the end.

Definition :

Industry that involving construction of civil & building works

Types of works in construction industry :


Civil work(basic/common work)

* Roads* Jetty&bridge

* Tunnel* Sewerage

Civil work(heavy/complex work)

* Oil rig* riverdam* airport•Highway

•Railway station

Buiding

•Houses•Offices

•Hotel&resort•Hopital

•School/learning institute•mosque


The relationship between the construction industry and the economic growth

•construction industry is considered as the boost to the development of other industries..•E.g: -tourism.. (elaborate) -development of technology to expand the construction industry.. (elaborate) - development of infrastructure facilities (elaborate) - etc.

PROBLEM FACED BY MALAYSIAN CONSTRUCTION INDUSTRY

There are lots of problems that the Malaysian construction industry faces. Effects to the productivity of construction industry. caused by manpower, quality of productivity and time.

Lack of Manpower

Workers from others country like Indonesia, Bangladesh and Myanmar. Have a contracts.Have less local workers.The workers work at construction industry does not have any experience.

Quality of Productivity

Lack of trained manpower. Many of contractors in Malaysia do not have many skills in engineering construction. Do not follow the schedule. Do not have a good management

Do Not Finish the Project on Time

Do not follow the timetable.

Causes by a weather.

Problem with contract workers

Activities involved in construction

1)Feasibility study: before the engineer/architect can commence the client/authority of the organization concerned, he must defined the objective of the project and also submitted a detailed project brief.

2) Design : to plan more detailed work to get permission from the authorities and to determine the cost (approximate cost) & provide all the information needed.

3) Tender level : to appoint the civil engineer contractor to do the construction work for a certain project.

Activities involved in construction…cont..

4) Contract : to get the tender from the contractor for the project offer & make a contract agreement.

5) Construction : to build civil engineering works based on the design & specification with controlling the time, cost & quality of the project.

6) Completion phase :to make sure that the project are completed in time & followed the drawing & specification in the contract document with suitable cost & produce a good quality of works.

7) Maintenance: provide operation order & the guidelines.

Designer member :

1. Project Developer/owner* Intent to build a construction project* appoint consultants & contractor

2. Architect* prepare early&detailed dwgs based on owner/project developer budget* give advice & suggestion(s) to owner/project developer


3. Engineer (civil/structure/electrical/machinery)*same roles as architect which is based on their own expertise

4. Quantity surveyor* act as cost adviser(although detailed dwgs not prepared yet)* estimate cost(roughly) for owner/project developer reference* cost planner to analysed each element in construction/building works and made comparison of total cost* preparing tender documents

Builders team member :1. Contractor * build&complete construction works based on contract

document* responsible for works done at site* completed construction/building project on time & in great shape based on

contract document* observed local authorities regulations* prepare insurance’s policy for works & workers

2. Architect* observed project’s during construction* act as a leader among consultant* always interacts/communicate with contractor


Builder member :

3. Engineer (civil/structure/electrical/machinery)

* observed project’s during construction * main adviser based on their own expertise at site

4. Quantity surveyor

* analysed wprks at site for interim payment * Estimate VO (variation order)

* preparing final account* make sure contractor repair/rebuild damages completed project during defects liability period



Contractor firm organization generally

top

middle

lower

management

observation / technical

workers

based on contractor

firm power & policy

Manager/ owner

Administration Technical

General Financial Purchase Project


Size or types of contractor firm’s organization whether big, medium or small usually based on firm or projects that will be held but basically organised as

state above

The importance of Contractor Firm Organization Chart

• Construction projects run smoothly• Everybody know their roles & duties• To ensure a well-organised firm/money well

spend• Save on expenditure


HEAD SYSTEM

Head system play large role in construction industry. Party involved named head contractor.

This system streamline to specialization some nature of the work. Each contractor that want are registered with Pusat Khidmat Kontraktor (PKK) must be state the heads that want to registered according to respective expertise.

Head contractor have a close relationship with contractor but the employee not the contractor employee. Only head contractor which have contract with contractor will complete works given.

Head contractor work based on profit. The basic/manual equipment is under head contractor provision and maintenance. Contractor only providing equipment or heavy machinery only.


HEAD SYSTEM ADVANTAGES

Contractor broke away from responsibility to manage and control the construction worker.

It more flexible (employee can change to another workplace) Work can be finished faster.

HEAD SYSTEM DISADVANTAGES

Employee surveillance (contractor no authority to oversee directly the head contractor employee)

Work quality Building material wastage.


TYPES OF HEAD

1) Head I : Civil Engineering Works2) Head II : Building Works3) Head III : Mechanical, Sanitary and Water

Engineering Works4) Head IV : Other Specialist Civil Engineering Works5) Head V : Quarrying Metal and Earth Supply,

Cartage and Transport6) Head VI : Forest and Land Development7) Head VII : Electric Works8) Head VIII : Telecommunication Works


CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB)

• To promote and stimulate the development, improvement and expansion of the construction industry;

• To advise and make recommendations to the Federal Government and the State Governments on matters affecting or connected with the construction industry;

• To promote, stimulate and undertake research into any matter related to the construction industry;

• To provide consultancy and advisory services with respect to the construction industry;

• To promote quality assurance in the construction industry;

Official website : http://www.cidb.gov.my/v6/


CIDB REGISTRATION

PUSAT KHIDMAT KONTRAKTOR (PKK) @ CONTRACTOR SERVICE CENTRE

PKK FUNCTIONS

i. Registration center for all contractors working on federal or state level.ii. Giving recognition to qualified.Bumiputera contractorsiii. As a referers to contractoriv. To provide advice and assistance to Bumiputera contractors.


Official website : http://pkk.kkr.gov.my/home

REGISTRATION PROCEDURE(CONTRACTOR)@PKK

registered (business) Pejabat Pendaftaran Perniagaan

minimum capital

technical qualification (certificate / diploma / degree)

work experience or employment record company

credit facilities, supply of materials and machinery

letter of support from supervisors and project from the main contractor

equipment and machinery

technical staff and management.

Applicants who have the conditions (qualified) may apply and be interviewed on the PKK.REGISTRATION PROCEDURE-CIVIL/BUILDING WORKS

REGISTRATION PROCEDURE-ELECTRICAL WORKS

TECHNICAL QUALIFICATION-HEAD/SUB-HEAD

End of Chapter 1……..

Chapter 1

Business

Transcript of Chapter 1