UNIVERSITI TEKNOLOGY MARA - Department of Quantity Surveying - Industrial Training Case Study Report
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1 |P a g e UNIVERSITI TEKNOLOGY MARA DEPARTMENT OF QUANTITY SURVEYING FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING, UNIVERSITI TEKNOLOGI MARA, CAWANGAN PERAK, KAMPUS SERI ISKANDAR. INDUSTRIAL TRAINING (DQS 301) CASE STUDY REPORT
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2 |P a g e NAMENURIN FATEEHAH BINTI JUZAILI I/C NO020121-10-0672 MACTRICS NO.2020463238 CLASSAAP1145B COURSEDIPLOMA IN QUANTITY SURVEYING FACULTYFACULTY OF ARCHITECTURE, PLANNING AND SURVEYING SEMESTERSEMESTER 5 COMPANY’S NAMEAR QS CONSULT PRACTICAL TRAINING ADDRESS NO 48, JALAN PEKAKA 8/3, KOTA DAMANSARA, 47810 PETALING JAYA, SELANGOR DURATION OF TRAINING 12THOCTOBER 2022 – 6THFEBRUARY 2023 SUPERVISOR INCHARGE SHAHAZIRAH BINTI RUSLI ( Practical Supervisor) NORAIDAWATI BINTI JAFFAR (Lecturer Supervisor)
3 |P a g e ACKNOWLEDGEMENT This letter serves as an acknowledgement and expression of appreciation to the entire team for giving me the opportunity to participate in the internship project, titled Kerja-Kerja Struktur Untuk Cadangan Membina Dan Menyiapkan Masjid Al-Falah Sungai Ramal Dalam, Mukim Kajang, Daerah Hulu Langat, Selangor Darul Ehsan, which needed a great deal of effort and many hours to achieve success, repaid me in the end with the attention of our intended audience, which was the ultimate objective. Without my team support, I would never have been able to offer the company with such success by managing to amaze our client. They ensured that I was able to get the content right during a period when I suffered a severe nervous breakdown, had no ideas, my mind went blank, and I questioned whether I would be able to get the needed results at all. I would also like to thank my team leader, Mr. Abdul Razak, whose 35 years of experience in the industry demonstrate his expertise and talent. In addition, I would like to thank Miss Shahazirah for helping me through the four months of employment in this company. Besides that, big thanks to Mrs. Aida who guide me on doing this case study project, without you, I think I would not been able to finish this project and doing it correctly based on the project’s guidelines. I really am in a position to pick up a lot of new things. I am aware that I am giving it a personal touch, but if you had not had faith in me and been so persistent in pushing me, I never would have been able to win the affection of so many people, and I am overjoyed that this project was eventually successful and received approval. It is not only my achievement that has put another feather to our cap, in fact, I believe that the success of the entire team is what has contributed to that success. I give you my word that in the future I will put in a lot of effort and continue to get even better so that you can be proud of me.
4 |P a g e TABLE OF CONTENT ITEMCONTENTPAGE 1.0Introduction5 2.0Background of project7 3.0Finding 3.1.Contractual Arrangement 3.1.1Type of Procurement 3.1.2Type of Contract 3.1.3Tendering procedures 3.1.4Preparation of Tender Procurement a.Calling of Tenders b.Tender Report 3.2Contract Management 3.2.1Variation Order 3.2.2Interim Payment 3.2.3Financial Statement 3.3Data Analysis 13-14 15-16 17-18 19-23 24-25 26-29 30-32 33-35 36-45 4.0Conclusion46 5.0References47 6.0Appendices48-52
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5 |P a g e INTRODUCTION Building something, typically a substantial structure such as a building, is an example of construction, which can be defined as the process of building something. In addition to this, it plays an important role in the development of the city, neighbourhood, and other areas. In general, building works and civil engineering works are the two categories that can be differentiated from one another when referring to construction activities. A quantity surveyor, architect, engineer, and several contractors are among the people who contribute to the completion of a construction project, which is overseen by a project manager. In a point of fact, there are two stages involved in the execution of the construction project, which are referred to as the pre-contract stage and the post-contract stage respectively. During the pre- contract stage, the stage begins with the preliminary estimate and continues until it is possible to issue the Letter of Award. A quantity surveyor needs to play essential roles in each and every procedure of this stage so that all of the requirements in the process of generating a tender document may be accomplished successfully. In the meantime, the post-contract stage begins when the client takes possession of the site and continues until the final account is prepared. At this point in the process, the quantity surveyor is responsible for maintaining an up-to-date record of the variation orders and preparing the remeasurement as well as the additional payment. While for the contractual arrangement, I need to state the type of procurement, type of contract, the tendering procedures and preparation of tender document which I will explain in details below at Section A. Then, contract management at its best involves risk management and relationship management. A contract is a document that describes the connection between two parties, what they each commit to do, and who bears the risk if things do not go according to plan. Contract Management is the process of managing this connection and these risks to guarantee that both parties obtain the desired outcome. This simple notion is the basis for all otherconcepts,includingcashflow,revenue,obligationmanagement,andallothers.Contract management includes the definition of resources, relationships, and risk. Contract administration aids in determining whether the project is proceeding in accordance with the contracts pertaining to procurements, filling of claims for additional payment, correction, the extension of time, site record, supervision, valuation and payment assessments and many more. In addition, it provides the last
6 |P a g e Preliminary Estimate/BudgetSite Possession Tender Report Tender Evaluation Final Account Confidential Financial Report opportunity to detect any errors, inconsistencies, or uncertainties in the design. A proper contract administration monitors and controls project risk, ensuring that the project is performed with quality control and within the budget and timeline specified. In further, for the purposes of Section B, I will describe the data analysis performed on the four projects that are outlined in the following paragraphs. The charts below are intended to complement and clarify the information presented in this case study project report. Pre-Contract StagePost-Contract Stage Issuing Letter Award Preparation of Tender Document Determination of Contractual Arrangement Preparation of Contract Document Measurement of Variation Works/Re-measurement Tendering Procedures Site Valuation/Interim Certificate
7 |P a g e BACKGROUND OF PROJECT
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8 |P a g e Project Title -Kerja-Kerja Struktur Untuk Cadangan Membina Dan Menyiapkan Masjid Al-Falah Sungai Ramal Dalam, Mukim Kajang, Daerah Hulu Langat, Selangor Darul Ehsan Location -Jalan Masjid, Kampung Sungai Ramal Dalam, 43000 Kajang, Selangor Darul Ehsan Total Contract Sum -RM 14,083,566.81 Contract Period -71 months Date of Commencement -15 November 2016 Date of Completion -29 October 2022 Types of Contract -PWD Form 203A (Rev.10/83)
9 |P a g e PARTIES INVOLVED IN THE PROJECT The design team is another name for the consultant. From the beginning to the end of the construction project, the consultants play crucial roles in ensuring smooth operation. As the project progresses, the consultants are responsible for design and costing tasks. The consultants always guarantee that they can satisfy all of the client's requirements and requests while also making a profit ontheproject.Additionally,havingexperiencemanagingsimilarprojects,extensive knowledge of the construction sector, and a strong track record on prior projects are all requirements for a good consultant. List of Consultants Involved In The Project CLIENTMAJLIS AGAMA ISLAM SELANGOR South Tower, 2, Persiaran Masjid, Seksyen 5, 40000 Shah Alam, Selangor ARCHITECTERA REKA ARCHITECT 1-6-14 Block C, Diamond Square Jalan 1/50, off, Jln Gombak, 53300, Wilayah Persekutuan Kuala Lumpur QUANTITY SURVEYORAR QS CONSULT No 48, Jalan Pekaka 8/3, Kota Damansara, 47810 Petaling Jaya, Selangor STRUCTURAL AND CIVIL ENGINEER ARM CONSULTING ENGINEERS SDN BHD Mustaal Lodge, Lot 6043 Jalan Masjid Sg. Ramal Dalam, 43000 Kajang, Selangor MECHANICAL AND ELECTRICALMEGAJATI CONSULT SDN BHD No. 25-2-1, Jalan Meda Putra 3, Medan Putra Business Centre, Bandar Menjalara, Kepong, Wilayah Persekutuan, 52200, Federal Territory of Kuala Lumpur CONTRACTORGLORY CONSTRUCTION SDN BHD No. 10, Jalan Besar, Pasir Penambang 45000 Kuala Selangor
10 |P a g e Roles of Parties Involved In The Project a)Architect – Era Reka Architect An architect designs and draws construction plans. He may also supervise the project. The architect always conducts project consultant meetings. Era Reka Architect (ERA) was chosen to design this mosque. ERA would meet with the client which is (MAIS) to discuss goals, budgets, and project requirements before creating designs. The architect must communicate well with customers and experts. The architect must also consider Jabatan Bomba dan Penyelamat approved the materials and specifications for all architectural elements. Before construction begins, the architect may need to conduct a feasibility study on the land. When creating plans, he must observe building, fire, zoning, and city requirements. The architect must be abreast of policy, zoning, and regulation changes since these rules change frequently. In addition, the architect creates a detail drawing for the quantity surveyor to use in determining the amounts. However, the architect's drawing must match the engineer's drawing so that there are no informational disparities between them. As the project progresses, the architect must establish a positive connection with the client, engineer, quantity surveyor, contractor and others so that there are no misunderstandings or miscommunications within the consulting team. b)Quantity Surveyor – AR QS Consult The importance of quantity surveying in the building industry cannot be overstated. A quantity surveyor oversees the administration and planning of a construction project from start to finish, and is responsible for estimating the total cost of all its components and the overall project. They also create the contracts and tender documents for the building supplies that will be needed. A quantity surveyor is responsible for calculating the cost of these components and the overall cost of a project, as well as for the management and planning of a construction project
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11 |P a g e from start to finish. Additionally, they draught the required contracts and bid documentation for building materials. In addition, they supervise a construction project and ensure that everything works well. Quantity surveyors do an ongoing cost analysis of any repair work, give payments to contractors, and assign impending tasks to construction employees throughout this phase. Quantity surveyors must also arrange site visits and do research for upcoming projects. Quantity surveyors ensure that their customer's project is cost-effective and that their client is satisfied with the final output. c)Structural and Civil Engineer – ARM Consulting Engineers It is common practise for structural engineers and civil engineers to collaborate on the design and construction of infrastructures that are both effective and secure. The civil engineers are typically the ones who are in charge of the general design and coordination of the site, while the structural engineers are the ones who make sure that the load-bearing elements are suitably sized and positioned to handle the loading that is required. d)Mechanical and Electrical Engineer – Megajati Consult Megajati Consult was chosen to be the mechanical and electrical engineer for this project. A construction project requires an electrical engineer to design high voltage equipment such as wiring systems, lighting systems, and generators. One of the responsibilities of the electrical engineer in the construction industry is to survey the site and oversee the design and installation of electrical systems in accordance with applicable codes and regulations. In addition, he must conduct tests throughout the installation and upkeep of large-scale electrical systems that transmitandcreateelectricity.Mechanicalengineersalsoplaysignificantrolesinthe construction industry. He is accountable for doing site visits prior to the design phase. Then, he must design mechanical devices such as elevators, escalators, air conditioning and ventilation systems, and many more.
12 |P a g e e)Contractor – Glory Construction A building construction project is generally the responsibility of the contractor, who is accountable for its supervising, leading, planning, executing, supervising and inspecting phases. Regardless of the scale of the project, the accountability extends from the very beginning all the way until its completion. In order to fulfil their responsibilities, contractors are responsible for organising activities, overseeing workers, and ensuring that the project complies with all local norms and laws. In addition, the contractor must have a solid financial strategy. This is necessary to prevent a financial crisis during building. The contractor's financial issues could cause a delay in the construction process, which would then have an effect on the construction's performance. In addition, the contractor must maintain constant communication with professionals such as the architect and engineer to ensure the highest quality of construction.
13 |P a g e 3.1CONTRACTUAL ARRANGEMENT 3.1.1Type of Procurement In the construction sector, all project participants should be aware of the procurement method employed. Listed below are the types/methods of procurement utilised based on the project's suitability. The type of procurement that will be employed for this project in Sungai Ramal Dalam is the utilisation of traditional contracts. Building is the only responsibility that is placed on a contractor under this form of procurement, making it one of the most fundamental types of purchasing. Every aspect of the design process, as well as the administration of the contract, is handled by a consultant, engineer, or both. The fact that this method has been utilised for such a significant amount of time in the construction industry is the primary factor contributing to its success. As a result, a set of parameters that have been devised to evaluate the cost-effectiveness of this kind of procurement route have been established. The first step SECTION A
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14 |P a g e in the traditional procurement procedures is for the employer to establish a project management team for the task itself. Therefore, the only duty that will be assigned to the contractor in the traditional procurementmethodwillbetheexecutionoftheprojectaswellasthemanagementofthe subcontractors and suppliers. In the context of traditional methods of procurement in the business, we may distinguish three distinct types of contracts which is lump-sum contracts, re-measurable contracts, and cost reimbursement contracts. This project applies the re-measurable contract which required for projects where the nature of the critical work may be described in appropriate detail when they are tendered, but amount cannot be provided. For instance, construction of a new building, before the task has even begun, it is difficult to provide an accurate estimate of the amount of excavation work that will be required. After the entirety of the work has been measured, all payments to the contractors will be given based on the actual amount of work that each contractor has completed. As a consequence of this, the total cost of the project will be determined by the unit costs as well as the precise amount. The Bill of Quantities (BQ) that is provided by the client will serve as the basis for the contractor's rate proposal.
15 |P a g e 3.1.2Type of Contract Many sorts of contracts are used for the different types of contracts. The following is a list of the various sorts of contracts that are typically utilised for the projects that are being proposed. -PWD Form 203A (Rev.10/83) -PWD Form 203 (Rev. 10/83) -PAM Form With Quantities -PAM Form Without Quantities This project utilises a Measure and Value contract, which is a contract with a Bill of Quantities PWD Form 203A (Rev.10/83). After the bill of quantities has been prepared, it is then sent to the contractors to be used in pricing. For instance, Majlis Agama Islam Selangor (MAIS), the customer, chooses to select Era Reka Architect as the architect to produce plans for the project. A bill of quantities will be prepared by AR QS Consult, who have been appointed as the quantity surveyor by MAIS. This bill will be based on the architect's design and specification. After the bill of quantities has been completed, it is sent to the contractors so that they may assign prices to the bill before submitting their bids. Following that, the bid submitted by Glory Construction was chosen. Both forms of contracts include different information and are used by various parties. The contract was often used by both the governmental sector and the private sector. For the public sector, the format is PWD 203/203A form that is a contract established by the Public Work Department (JKR). This sort of contract is used by the whole public sector since it has been adapted to local circumstances and can keep up with political and industrial developments. PAM 2006 is a contract arranged by Pertubuhan Arkitek Malaysia (PAM), which is often used by the private sector for construction projects in Malaysia. PAM 2006 is the third generation of the PAM standard form and it has evolved from PAM 1696, the initial generation of the form. The second iteration of the PAM form was released in 1998 and was titled as PAM 1998. The units rates in the Bill of Quantities provide a sound basis for the
16 |P a g e valuation of the Variation Order, which is one of the advantages of a contract that is based on the Bill of Quantities. The other advantage is that both parties have a clear picture of the extent of their respective commitments when the contract is based on the Bill of Quantities. In addition to that, a comprehensive breakdown of the tender amount may be obtained at any time.
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17 |P a g e 3.1.3Tendering Procedures A procedure known as tendering is one in which the client invites contractors who are interested in carrying out the building activities to submit bids. There will be a significant amount of procedure that has to be gone through before picking the competent contractor to carry out the job. The selection of a contractor via the use of the tender process serves the objective of ensuring that a competent contractor is chosen, who will then be able to finish the project within a fair amount of time and at an affordable cost. In the sake of maintaining a comparable level of competition and maintaining transparency, every contractor will compete against one another by filling in the price and rates of the works in the tender document. As this is a project being undertaken by the government and because it has also been granted funding by the Majlis Agama Islam Selangor (MAIS), there are a number of procedures that need to be completed before selecting a contractor. According to the website for the Ministry of Finance in Malaysia, there are a few protocols that need to be adhered to. -Planning -Specification -Tender Document -Tender Advertisement -Sale of Tender Document -Tender Deposit -Closing and Opening Tender -Opening Tender Committee -Evaluation of Tender -Selection of Successful Bidder -Agency Procurement Board -Letter of Intent
18 |P a g e -Letter of Acceptance -Formal Contract For the project Kerja-Kerja Struktur Untuk Cadangan Membina Dan Menyiapkan Masjid Al- Falah Sungai Ramal Dalam, Mukim Kajang, Daerah Hulu Langat, Selangor Darul Ehsan, Majlis Agama Islam Selangor has engaged Era Reka Architect as consultant. They are obligated to design the building that the client desires in accordance with the allotted spending limit and the requirements that the client provides. Following that, the consultant will need to submit their design to the customer, and if both sides are able to come to an agreement, then the task of taking off and also preparing a bill of quantities will commence. As soon as the work is completed, Majlis Agama Islam Selangor will complete the process of preparing the tender document. The tender will then be published in newspapers or on the Majlis Agama Islam Selangor website. Following this, the tender document will be sold to interested contractors. The contractor must return the tender form prior to the closing date after filling in all pricing and providing all pertinent papers to the customer. Then, the opening tender committee will assess all of the contractor's tender papers. The committee and superintendent officer will then have a meeting to choose a competent contractor. There will be a letter of intent provided, in addition to a letter of award. In this particular instance, Glory Construction has been selected to oversee the construction project. They have indicated that they are open to being given the role of major contractor for this project. After that, the contract administrator will make arrangements for the client, the consultant, and the contractor to enter into the contractual agreement.
19 |P a g e Receiving, stamping, checking drawing Pricing 3.1.4Preparation of Tender Document a)Calling of tenders A comprehensive estimate of the total cost of the project will first be formulated by the customer before any work on the project can begin. After that, they will create two distinct kinds of documents, which are referred to as tender documents and table tender documents respectively. The only tender document that will be delivered to the tenderer, and the aim of holding table tender documents is to allow tenderers to see the necessary work instructions and specifications before submitting their bids. In order to properly construct a tender document, there are a few procedures that need to be performed. These actions are necessary to ensure that none of the requirements for the tender document are overlooked, which might lead to complications in the future. Proof-reading and checking TypingEditing Taking off Working up Printing and binding
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20 |P a g e Then, the method for calling tenders was explained to me by my supervisor who is Miss Shahazirah during an interview session at the AR QS Consult office. This tender project will be advertised in a newspaper and on the official website. The advertiser will notify the tenderer about the title of the project, the date of site visit, the opening date, the closing date and the cost of the tender document. The potential tenderers have been provided with information on the significant dates associated with the project, which is based on the information that was indicated in the advertising. If the prospective buyer of the tender document intends to buy it from the client, the tenderer is obligated to accompany them on the site visit. At the location, each and every tenderer will get instructions from the client on the construction project that the client wants to have completed. Figure (1) : Example of tender advertising
21 |P a g e Following the conclusion of the briefing, the contractor may next go to the Majlis Agama Islam Selangor in order to examine the tender table document. The contractor has the opportunity to evaluate themselves and determine whether or not they are qualified to carry out the job while they are looking through the tender table document. Those who are considering participating in the project may buy the tender document and then fill it out with all of the required information and pricing. In order to meet the deadline, the tender document must be sent to the client as soon as it is finished being prepared. The client decides on a price for the tender documents, which are then created and marketed to tenderers. When the client sells the tender document to the tenderer, they have the opportunity to make a profit. The form of tender, the instruction to tenderer, the letter of acceptance, the bill of quantities, the condition of contract and the standard specification are all required to be included in the contents of the tender document. It is important for the client to be aware of the appropriate manner of tendering for the project proposal before they begin the process of asking for bids. The primary objective of the tendering process is to conduct a one-sided evaluation of the capability and expertise of the entity that will be contracted. There are several different approaches to selecting the appropriate contractor from which the customer might choose. In Malaysia, there are a several different methods of tendering that are often utilised.
22 |P a g e Figure (2) : Method of Tendering The choice of which method of tendering to employ is crucial because, for the client, they will be making key choices on the selection of a contractor who will be responsible for carrying out construction work. The client will have an easier time selecting a contractor who has the needed requirements if the client uses the procedure of tendering. If the client does not employ the process of tendering, it will result in a huge number of tender entries, and the client will not be able to choose which contractor to pick. When a client uses the method of tendering, it may assist the client select the eligible tenderers, and only a tenderer who meets the terms and does not exceed them can join it. For this project which is Kerja-Kerja Struktur Untuk Cadangan Membina Dan Menyiapkan Masjid Al-Falah Sungai Ramal Dalam, Mukim Kajang Daerah Hulu Langat, Selangor Darul Ehsan,MajlisAgamaIslamSelangorutiliseselectivetenderingproceduretopickthe contractor. Only those suppliers who have been received an invitation to submit a tender by the client are eligible to do so under this method for obtaining tenders. Typically, clients will choose suppliers who are well-known for being qualified to fulfil the requirements of a contract. For
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23 |P a g e instance, the client will make certain that the selected suppliers have prior experience working on contracts of a comparable size and level of difficulty. The procedure of selective tendering may start after the client has decided on a list of potential suppliers to work with. The client will begin the process by inquiring of the suppliers as to whether or not they have any interest in submitting tenders for the job. The client will next ask a number of suppliers to propose their services, the selection of which will depend on the response they get at this point. Although the specific number will change from one contract to the next, in most cases there will be no more than six. If the services being purchased fall into a more specialised or complicated category, the majority of buyers will choose for this type of procurement. Especially in the case that there are just a few suppliers that are capable of completing the job. The client is able to swiftly find potential businesses that are competent of finishing the project without having to waste time browsing through suppliers that are inappropriate for the job. There are situations in which the use of selective tendering might either completely exclude smaller providers from the tender process or discourage their participation. This is due to the fact that clients are inclined to choose suppliers that have a proven track record of achievement or relevant case studies.
24 |P a g e b)Tender Report A tender report is an evaluation or analysis is made by a quantity surveyor about the tenders filed by tenderers. For this project tender report, it has been prepared by the chief of my intern’s company which is Mr. Abdul Razak in AR QS Consult. The purpose of this report was to provide recommendations to the public sector client which is the government, or the private sector employer on the preferred contractor for the project by reviewing the submitted tender papers and establishing a price for the subsequent contract. The client or employer will pick his or her preferred contractor after taking the suggestions from the tender report and advice from the consultants into account. The whole evaluation procedure and its outcomes are kept confidential. Then, it will evaluate the present works performance of the tenderer. The purpose of this study is to make certain that the tenderers do not have any projects that are more than 30 percent behind the schedule of works or the works programme. In fact, it is essential to make certain that the tenderers do not have any issues with the verification of their job status by any other clients or employers. After the preliminary and final stages of the evaluation of the tender have been completed, recommendation, the results, justification and tenderers' necessary detail information and statistics will be arranged and compiled together in a systematic way to form a tender report, which will then be submitted to the client or employer. In conclusion, the purpose of producing a tender report is to provide assistance to the client or employer during the decision-making process in order to select the contractor that is the most suitable and capable of completing the project within the specified amount of time and maintaining the quality. Below are the tender report documents for Masjid Al-Falah’s project.
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26 |P a g e 3.2CONTRACT MANAGEMENT 3.2.2 Variation Order (VO) Changes to a construction project's work scope, specifications, contract agreement or planning, are referred to as variation orders. According to the literature studies, in a tender and building contract, the word variation refers to any modifications made to the works under the supervision of an architect operating as the contract administrator on behalf of the client or employer. However, considers the variation in works as adjustments to the agreed plan and schedule. Generally, it is any modification or amendment to the contract issued to the contractor that serves as a guide for the clientorclient'srepresentative.Thisincludesmodificationstothecontract'splanning, specifications, and other papers. In the context of building, variation order is often referred to as variations. Then, every variation instruction is an official document used to amend the original contract issued to the contractor by the client or client's representative and is included into the project documentation. An increase in project variation orders may incur more time and money. When a variation order is issued, contractors are likely to demand a higher cost for the altered work, therefore impacting the client's budget. Change of work is a typical issue in Malaysian construction projects. This change in work is unavoidable in every construction project, and the issue may grow more severe when variation orders impede work progress due to the increasing construction time and costs that plague the Malaysian construction sector. For this Masjid Al-Falah project, it has 4 variation order listed. For the first variation order amount is RM69,217.80 and was signed by consultant officer and approved by the project’s contractor which is Glory Construction Works. Then, the amount for the second variation order is RM 79,141.00 which there has an addition for PVC Corner Bead. Moreover, for the third variation order, is stated that the amount is RM 85,857.00 because it has an addition on brickworks which is the wall between mosque and the houses nearby. Next, the amount for fourth variation order is RM 112,039.00 which has an addition for earthworks. These pictures below are the evidence of variation order documents.
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30 |P a g e 3.2.6Interim Payment Under the terms of a construction contract, a stage payment or instalments may be referred to as an interim payment. This kind of payment may be made to subcontractors by the primary contractor, the owner of the project, or the developer. Every construction contract has to include a payment method that specifies when payments must be made and a due date for any money that is still outstanding at the end of the project. Contracts for construction projects often control activities that are drawn out and challenging. Because of the possibility for interim payments, subcontractors may get money for their work as it is done in phases as opposed to having to wait until the task is finished to be paid for their work. The payment should be done in accordance with the particular terms and circumstances of the contract. The only time this rule should be broken is if there is a disagreement between the two parties, or if the contractor makes the error of erroneously relying on waiting for payment from the building owner or developer before submitting an application for an interim payment. Osborn’s Concise Law Dictionary defined interim payment as: “A payment on account of any damages, debt or other sum (excluding cost) which the employer may be held liable to pay to or for the benefit of the contractor. It required financing the Contractor’s operations because most construction work involves considerable sums of money and spanning a considerable length of time”
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33 |P a g e 3.2.7Financial Statement There is not a single standard type of contract that mandates the preparation of financial statements in any capacity. During the building stage of a project, however, these documents are often produced by the quantity surveyors since they are seen as an effective instrument for controlling costs. The management of costs throughout the building stage is essential for ensuring that the total cost of construction will not go over the budgeted amount and that the client's money will be spent in a responsible manner. A financial statement is a document that displays the current financial status of the contract, the pattern of expenditures during the duration of the contract, as well as an estimate of the total cost to complete the project. The client recognises the significance of the financial statement since it enables him to plan for his upcoming financial obligations and to modify his capital expenditure budget as necessary. The client is responsible for providing enough funding for the works. If there is expected to be a rise in construction costs, the client may be required to acquire funds for example, by taking out an additional loan and more or he may advise savings such as eliminating certain works in order to maintain costs within the budgeted amount. The preparation of the financial statements occurs at regular intervals, most often on a monthly basis which the frequency might vary depending on the requirements of the client as well as the level of complexity of the project. There is no standard financial statement format. Nevertheless, it should include all information that contributes to the expected contract sum, as illustrated below. The following describes the contents of a typical financial statement: a)Summary of approved variations b)Summary of proposed variations c)Summary of expenditure of provisional sums d)Summary of provisional sums to be expended e)Summary of expenditure of prime cost sum f)Summary of prime cost sums to be expended
34 |P a g e g)Summary of claims by contractor h)Summary of interim payments made to contractor and sub-contractors i)Anticipated final contract sum
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36 |P a g e 3.3DATA ANALYSIS Data analysis is the process of gathering and summarising information into useful formats such as charts, graphics, and facts. This method assists an organisation in acquiring accurate data, which can subsequently be used to aid in decision-making. By collecting and analysing data, we may anticipate future hazards and simultaneously prepare for problem-solving. For complicated building projects in the construction sector, data analysis is crucial. The building's complexity will create a large amount of data that, if correctly used, might be beneficial to many parties. Quantity surveyors may, for instance, use the data to compare building prices across areas of the nation. The quantity surveyor may then analyse and evaluate the acquired data for future project usage. The data may assist us in doing a feasibility analysis and determining if the expenditure is worthwhile. For the purpose of data analysis, I have selected four projects that are the same, all of which are mosques, from four different zones which is Selangor (central), Pulau Pinang (north), Melaka (south) and Pahang (east). All of the information that I have obtained came from my cherished fellow batchmates. SECTION B
37 |P a g e List of Project Used REGIONTITLECLIENT CENTRAL (SELANGOR) CADANGAN MEMBINA DAN MENYIAPKAN MASJID AL-FALAH SUNGAI RAMAL DALAM, MUKIM KAJANG, DAERAH HULU LANGAT,SELANGOR DARUL EHSAN JABATAN AGAMA ISLAM SELANGOR (JAIS) SOUTH (MELAKA) MEMBINA MASJID KAMPUNG BALIK BUKIT, BUKIT LINTANG, AYER MOLEK, MELAKA JABATAN KERJA RAYA MELAKA (JKR) NORTH (PULAU PINANG) MEMBINA BARU MASJID QARYAH TAMAN PELANGI, PERAI, PULAU PINANG PEJABAT PEMBANGUNAN NEGERI PULAU PINANG EAST (PAHANG) TAWARAN SEMULA CADANGAN MEMBINA MASJID BARU DI KG. FELDA BUKIT KUANTAN BESERTA KEMUDAHAN-KEMUDAHAN LAIN DI ATAS LOT 23163,23164 DAN 23157, MUKIM KUALA KUANTAN, KUANTAN, PAHANG DARUL MAKMUR PERBADANAN KEMAJUAN NEGERI PAHANG (PKNP)
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38 |P a g e SUMMARY OF CONTRACT ItemDescription SELANGORPULAU PINANGMELAKAPAHANG MASJID AL FALAHMASJID QARYAHMASJID KG. BALIK BUKITMASJID BARU KG Amount (RM)%Amount (RM)%Amount (RM)%Amount (RM) 1Preliminaries670,646.004.76252,999.002.97279,800.005.3094,200.00 2Demolition Works--20,000.000.38- 3Piling Works609,350.004.33743,896.408.73390,000.007.39- 4Building Works6,774,753.8148.105,423,807.6563.622,863,880.0054.242,125,236.80 a)WBLFF1,147,749.008.15587,511.506.89500,000.009.47436,800.10 b) Apron, Perimeter Drain and Ramps---41,822.00 c)Frame2,087,364.1114.82724,395.208.50400,000.007.58304,455.80 d)Upper Floor879,690.006.25461,345.805.41306,147.005.80- e)Floor Finishes567,057.004.03231,183.902.7186,000.001.63129,025.00 f)Ceiling Finishes428,925.003.05229,424.802.6960,000.001.1467,158.00 g)Wall Finishes321,800.002.28216,554.802.5474,000.001.40156,210.00 h)Staircase115,889.200.8238,597.000.4558,550.001.11- i)Roof376,382.502.67253,199.002.97260,000.004.92412,865.60 j)Internal Wall & Partitions148,425.001.0523,981.200.2830,578.000.5833,259.80 k)External Wall99,540.000.711,448,658.8016.9969,422.001.31130,654.50 l)External Finishes84,522.000.60923,073.0510.8380,000.001.52- m)Door131,500.000.93140,604.301.6573,995.001.4080,132.00 n)Window24,410.000.1785,094.001.0023,835.000.4530,287.00 o)Sanitary Fittings210,600.001.5060,184.300.7150,000.000.955,438.00 p)Builder's Works in Connection150,900.001.07-791,353.0014.99198,701.00 q)Sundries---98,428.00 Sub total6,774,753.8148.105,423,807.6563.622,863,880.0054.242,125,236.80 4External Works502,200.003.571,083,515.7512.71825,000.0015.63358,283.10 a)Site Works101,528.000.72119,342.851.40211,000.004.0085,675.00 b)Roadworks85,472.000.60365,338.154.29249,000.004.7265,843.10 c)Sewerage Works102,000.000.7285,791.301.0190,000.001.70136,197.50 d)Water Reticulation18,000.000.1346,539.510.5525,000.000.4725,672.50 e)Drainage113,000.000.80294,835.743.46155,000.002.9444,895.00 f)Landscape50,000.000.3680,000.000.9420,000.000.38- g)Fencing & Gate32,200.000.2391,668.201.0875,000.001.42- 502,200.003.571,083,515.7512.71825,000.0015.63358,283.10 Consultant Fee--311,373.005.90- Electrical Work2,334,679.0016.58775,272.009.09225,000.004.26282,870.00 Mechanical Work1,811,938.0012.8786,880.001.02314,947.005.9697,495.00 Provisional Sum1,380,000.009.80159,000.001.8750,000.000.95- Sub total5,526,617.0039.241,021,152.0011.98901,320.0017.07380,365.00 Total Contract Sum14,083,566.81100.008,525,370.80100.005,280,000.00100.002,958,084.90
39 |P a g e Total Cost of Project Based on the following graph, we can determine the total cost of constructing a mosque in four distinct regions, namely Selangor, Pulau Pinang, Melaka, and Pahang. On the graph shows we can determine that Selangor has the highest cost of mosque construction at RM 14,083,566.81, followed by Pulau Pinang at RM 8,525,370.80. Melaka ranks third with a cost of RM 5,280,000.00, while Pahang has the lowest cost at RM 2,958,089.90. There are a number of reasons that contribute to pricing variations in the building and construction business, and as a result, the cost of the project varies from state to state. The cost of the materials, the state of the building site, the scale and nature of the undertaking, the hourly pay rates of the workforce, and a great number of other factors all contribute to the overall disparity in cost across the four areas. Because of this feature, the costs associated with the project in the area are constantly shifting. In addition, there is a significant cost difference between the construction of the Selangor mosque and
40 |P a g e other mosques. This is due to the fact that the Selangor mosque has a very large door with wood carving on it, as well as islamic khat caligraphy features on the door, wall, and ceiling. The architect for the mosque also design an enormous majestic dome. They use high quality painting with some mural on it. In addition to that, the mosque has four minarets, although the majority of mosques only have one. Below are the photos of evidence on why Selangor mosque cost project are higher than others.
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42 |P a g e Preliminaries The total amount of preliminary expenses for constructing a mosque in Selangor was the largest in the country, coming in at RM 670,646.00. Melaka came in second place, with preliminary expenses totaling is RM 279,800.00. Pulau Pinang comes in at RM 252,999.00 for having the third highest number of preliminary expenses. While Pahang was in the lowest spot, which comes to RM 94,200.00 total. Work that must be done in advance of the actual execution of a project is known as preliminary work. This work must be prepared by the contractor before the project can be executed. The contractor is responsible for carrying out the preparatory works, which include the establishment of the site, the provision of temporary services and security, the installation of common user mechanical plants, and the execution of common user temporary works. The current state of the site is another factor that affects the overall cost of the preliminary work. The bigger the complexity and scale of the site, the greater the number of preliminaries that are required.
43 |P a g e Building Works Based on the information provided, we can determine that Selangor has the most construction work at RM 6,774,753.81. The amount of construction activity in Pulau Pinang ranked second at RM 5,423,807.65. Melaka was ranked third with a total of RM 2,863,880.00, while Pahang had the least amount of construction work at RM 2,125,236.80. Structure works refers to the sum of all elements required to create a building. It comprises of a building's substructure and superstructure. The overall quantity of building work is highly dependent on the building's scope of work, design and the size. The more the intricacy of the design, the greater the quantity of construction effort. Due to Selangor project’s cost on almost every elements on building works are in high amount, they were stated in the highest cost of building work based on the graph above. The Selangor’s project of work below lowest floor finish (WBLFF) and frame of the structure has a large gap of cost between the
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44 |P a g e others project. This occurred because the cost of material and the profit were greater in one state than in the other. Selangor mosque project are located in the center of the city while Pulau Pinang, Melaka and Pahang mosque are just located out of town. That is why their cost range are different and also because of when the mosque are built. As the fact that Pahang’s project are built on year 2016 which is the most old project between others which lead to the cheapest cost if you want to compare with other building works cost project.
45 |P a g e External Works The final graphic seen above compares external work in Selangor, Pulau Pinang, Melaka and Pahang. The largest expenditure for external work is RM 1,083,515.75 for a project built in Pulau Pinang. Melaka comes in second with a total of RM 825,000.00. Selangor has the third largest sum which is RM 502,200.00. The exterior work for Pahang is the smallest, at just RM 358,283.10. This external work includes landscaping works, drainage, pavement, fencing and gate and also among other things. Because of this is a mosque project, a large portion of the exterior works includes a road and parking lot. The larger the mosque, the more external effort is required to prepare it. The major reason of why external work’s cost project in Pulau Pinang is the highest is because they invest a lot of money on their drainage system while others project only spend less than RM 1 million. Aside from that, they also spend a high cost on their roadworks and fencing and gate. This happen because they made an extensive parking lot and a new road to the mosque.
46 |P a g e CONCLUSION We can conclude, based on this case study report which for students in consultant firm that consists information details about contractual arrangement, contract management and data analysis of my research projects are accurate. I have done a research and learn on how many type of procurement, how is the tendering procedures, variation order, interim payment, financial statement, data analysis of selected project and many more. Besides that, there will be many parties participating in the building sector. Each have their own set of responsibilities and roles. To develop a high-quality building, all parties must work together and execute to the best of their abilities. If one of the parties does not collaborate properly, it may lead to disagreements with the other parties and other issues, such as project completion being delayed. Other than that, I also have learned that for the tendering procedures has a few protocols that need to fulfil so it would be valid. Then, now I know that for the tender report needed to state the name of tenderers, the client cost estimate and also the tenderers price that they have offer. While for the variation order, I have learned that because of the construction industry's dynamic and complicated structure, it is almost impossible to finish a project without issuing a variation order. Additionally, I may deduce that the goal of providing interim payment is to allow the contractor to be paid while the job is being completed in order to avoid cash flow deficit. Next, for the data analysis, I have listed the costs for all elements such as preliminaries, piling works, building works, external works, electrical and mechanical and also the contract sum. I have also calculate the aggregate for each cost of elements and the percentage receive. I have found out that each state has different price range includes of the cost of material, labour cost and profit. It also depends on the size, design and the complexity of the project too. I have been provided opportunities to study, explore, and put into practise all I have learned at Universiti Teknologi Mara Perak (UiTM) throughout my practical period at AR QS Consult. My practical supervisor, Cik Shahazirah, has helped me by explaining concepts that I don't grasp and by offering knowledge on the subject of contract management.
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47 |P a g e REFERENCES ENGINEERS, T. O. (2020, October 30).Civil vs. structural engineers: What's the difference?Civil vs. Structural Engineers: What's the Difference? | TO Engineers. Retrieved January 24, 2023, fromhttps://www.to-engineers.com/blog/civil-vs- structural-engineers-whats-difference Sure Works. (2020).What is quantity surveying?Sureworks. Retrieved January 24, 2023, fromhttps://sureworks.info/post/what-is-quantity-surveying Stonemark. (2021, May 24).What is contract management in construction projects? - stonemark. Stonemark Construction Management. Retrieved January 24, 2023, from https://stonemarkcm.com/blog/contract-management/ Ireditor. (2018, June 20).4 major types of procurement in the construction industry. SpendEdge. Retrieved December 14, 2022, from https://www.spendedge.com/blogs/types-procurement-construction-industry Remeasurement(re measurable) contracts / unit price contracts. Quantity Surveyor Blog. (2019, September 4). Retrieved January 24, 2023, from https://quantitysurveyor.blog/2019/09/04/remeasurement-contract-unit-price/ Succeed from Hudson Outsourcing. (2022, February 16).What is selective tendering: Hudson succeed. Tender Consultants. Retrieved January 24, 2023, from https://www.tenderconsultants.co.uk/selective-tendering/ FZE, B. B. (2023, January 16).Defining and understanding a formwork system construction essay. UKEssays. Retrieved January 24, 2023, from https://us.ukessays.com/essays/construction/defining-and-understanding-a-formwork- system-construction-essay.php Wang, Z. (2019).Comparison of harmonic limits and evaluation of the International Standards. Comparison of harmonic limits and evaluation of the international standards. Retrieved January 24, 2023, fromhttps://www.matec- conferences.org/articles/matecconf/pdf/2019/26/matecconf_jcmme2018_03009.pdf Waters, J. (2022, December 9).What is an interim payment in construction and how does it work?Helix Law. Retrieved January 24, 2023, fromhttps://helix-law.co.uk/what-is- interim-payment/ Suhana. (2018).The contractor’s right actions against late or non payment by the employer. Suhana Thesis Chapter 5. Retrieved January 24, 2023, from https://bic.utm.my/files/2018/12/SUHANAS-THESIS-CHAPTER-1-5.pdf Johnson, D. (2023, January 21).What is data analysis? research, types & example. Guru99. Retrieved January 24, 2023, fromhttps://www.guru99.com/what-is-data-analysis.html
48 |P a g e SELANGOR APPENDICES 1.Central Region Contract DocumentSummary of Tender Summary of TenderSummary of Tender
49 |P a g e PULAU PINANG 2.North Region Contract DocumentSummary of Tender Summary of TenderSummary of Tender
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