CHAPTER THREE BUSINESS STRATEGIES & OPPORTUNITIES

THE RELATION BETWEEN BUSINESS AND INDUSTRY

LEARNING OUTCOMES

At the end of the course, the students should be able to:a. b. c. d.

understand understand understand understand

the the the the

stakeholder involve in construction industry contracting methods role and responsibilities of government bodies risk management

DEFINITIONS & SCOPE

DEFINITIONS

BUSINESS A commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities.
INDUSTRY The business or the activities of production works as a whole.

SCOPE

CONSTRUCTION/ENGINEERING INDUSTRY BUSINESS RELATED TO CONSTRUCTION/ENGINEERING INDUSTRY

STAKEHOLDERS
DEVELOPER PROJECT MANAGERS ARCHITECT

GOVERNMENT BODIES

C&S

FINANCER

CONSCTRUCTION INDUSTRY

QS

MANUFACTURER

M&E

SUPPLIER

PURCHASER/ CONSUMER PUBLIC CONTRACTOR

CONTRACTING METHODS
DESIGN/BID/BUILD DESIGN/BUILD
CLIENT/ OWNER

CLIENT/ OWNER

PMC

PMC

DESIGN & BUILD CONTRACTOR

CONSULTANTS

CONSULTANTS PLANNER/ARCH/ ENGINEERS/QS

CONTRACTORS BUILDING WORKS/ M&E/ SPECIALIST

SUBCONTRACTOR

SUBSUBCONTRACTOR CONTRACTOR

CONTRACTING METHODS
CONSTRUCTION MANAGEMENT

CLIENT/ OWNER

CONSULTANTS

CONSTRUCTION MANAGER

CONTRACTOR

CONTRACTOR CONTRACTOR

ROLE AND RESPONSIBILITIES

GOVERNMENT BODIES/AUTHORITIES

PLANNING BUDGETARY AND TECHNICAL PLANNING OF PUBLIC FACILITIES. (ROADS/ HIGHWAYS/ PUBLIC BUILDINGS/ PORTS) DESIGN DESIGN OF PUBLIC FACILITIES. COORDINATE CONSULTANTS/ CONTRACTORS/ OTHER GOV. BODIES SUPERVISION QA/QC DURING CONSTRUCTION STAGE AND HANDOVER TO CLIENT CONTROL ENSURE CONFORMANCE WITH TOWN PLANNING & TECHNICAL REQUIREMENTS MAINTENANCE OF PUBLIC FACILITIES

ROLE AND RESPONSIBILITIES

CLIENT/OWNER

PLANNING INFRA WORKS/ FEASIBILITY STUDIES/ BUDGETARY/ PROCUREMENT COORDINATION CONSULTANTS/ CONTRACTORS/ AUTHORITIES SUPERVISION CONSTRUCTION STAGE/ SAFETY

MAINTENANCE PROPERTIES/PUBLIC AREAS

ROLE AND RESPONSIBILITIES

CONSULTANTS

PLANNING FEASIBILITY/ INFRA WORKS/ SURVEY/ SOIL INVESTIGATION DESIGN FOUNDATION/SUPER STRUCTURE/INFRA TENDERING PREPARE SPECS/ EVALUATION

COORDINATION CLIENT/ ARCHITECT/ CONTRACTORS/ AUTHORITIES

SUPERVISION DRAWINGS INTERPRETATION/QUALITY CONTROL/SAFETY

CERTIFICATION COMPLETED WORKS (PAYMENT/CFO)

* CONSULTING ENGINEERS CARRY PROFESSIONAL LIABILITY !

ROLE AND RESPONSIBILITIES

CONTRACTORS

PLANNING TENDERING/ BUDGETARY/ WORK SCHEDULE/ PROCUREMENT/ INTERPRETE DRAWINGS COORDINATE- CLIENT/ CONSULTANTS/ SUB-CONTRACTOR/ SUPPLIER COST CONTROL ENSURE WORK DONE WITHIN BUDGET. SUPERVISION QA/QC, SITE MANAGEMENT/ SAFETY

HAND-OVER TESTING AND COMMISIONING & HANDING OVER TO CLIENT.

MAINTENANCE DEFECTS LIABILITY PERIOD

ROLE AND RESPONSIBILITIES

SUPPLIER

SALES & MARKETING SALES ENGINEER ACCOUNT MANAGEMENT

MANUFACTURER

PLANNING PRODUCTION/ COST DESIGN- SPECIFIC PRODUCTS

SUPERVISION - (QA/QC)/ SAFETY

BUSINESS VEHICLES
The Companies Act 1965 (Generally three types of companies): Limited by shares, where the personal liability of members is limited to the par value of their shares, or ;

Limited by guarantee, where the members guarantee to meet liability up to nominated amount if the company is wound up:
Unlimited companies, where there is no limit to the members liability.

Limited by shares. Such limited companies may be either public (Berhad or Bhd.) or private (Sendirian Berhad or Sdn Bhd.) The most common company structure;

Sole Proprietorships And Partnerships

(Must be registered with the Registrar of Business under the Registration of Business Ordinance 1965) Moonlighting

ROLE AND RESPONSIBILITIES

OF BUSINESS OWNERS/ DIRECTORS

Act in good faith undivided loyalty, avoid conflict of interest (no personal gains) Act honestly to partner(s) Exercise powers for a proper purpose Retain discretion (good judgments) Not to misuse info/ position Exercise care and diligent Responsible for registers Accounts/ Taxes Responsible for profit Maintain professionalism

RISKS MANAGEMENT

EXPERIENCE Go Through the Mill CONTACTS The business belongs to the company, but the contact is personal THE TEAM 11 players make a football team/ Work with the devils you know PLAN Fail to plan and plan to fail TIMING Study economic cycle CAPITAL Start-up/ Working Capital

CLOSING QUOTES
GREAT MEN ARE ORDINARY PEOPLE WHO ROSE TO THE CHALLENGE IN EXTRAORDINARY CIRCUMTANCES GREAT ENGINEERS ARE ORDINARY PEOPLE WHO ROSE TO THE CHALLENGE IN DELIVERING THEIR DUTIES WITH FULL PROFESSIONALISM

GREAT BUSINESSMEN ARE THOSE WHO MAKE TONNES OF MONEY, ENGINEERS ARE NOT CUT TO BE GREAT BUSINESSMEN.