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MARA University of Technology

Department of Quantity Surveying


Faculty of Architecture Planning and Surveying
REPORT A: Pre-Contract

PREPARED BY

: Khairul Hafizwan Bin Jabar

MATRIX NO.

: 2008727213

TABLE OF CONTENT

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

Acknowledgement

Page

Introduction

Page

1.
2.
3.
4.
5.
6.
7.
8.

Page
Page
Page
Page
Page
Page
Page

6
7
8
9
26
29
33

Project Title
Location
Background
Consultants and their Roles
Pre-Contract Stage
Pre-Contract Cost Estimates
Preparation of Tender Documents
Tender Report
8.1.
Type of Tender
8.2.
Number of Tenderer
8.3.
Tender Analysis
9. Type of Contract
10. Main Problem Encountered
11. Students Analysis

Page

41
Page
Page
Page
Page
Page
Page

42
45
46
47
48
49

References

Page

50

Appendices

Page

51

ACKNOWLEDGEMENT
Assalamualaikum,

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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,
Id 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

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
3

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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:

PRELIMINARY
PRELIMINARY
ESTIMATE
ESTIMATE

FEASIBILITY
STUDY
FEASIBILITY STUDY

COST STUDY
PRE-CONTRACT
PRE-CONTRACT
STAGE
STAGE
FINAL
APPROXIMATE AND
APPROXIMATE
AND
COST
COST PLANNING
PLANNING

PRICING THE LIST


OF MATERIAL

COST ESTIMATE

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
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 clients need.

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.
Id 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.

1. PROJECT TITTLE:

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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. LOCATION
6

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.

3. BACKGROUND
7

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

4. THE ROLES OF DESIGN TEAM IN PRE-CONTRACT


8

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

Principal Consultant:
9

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

Town Planner
10

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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 MILES JALAN CHERAS
56100 KUALA LUMPUR

Environmental Consultant
11

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

Recirculating Aquaculture Systems Specialist


12

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

AKVA GROUP MALAYSIA SDN. BHD


SUITE 2004, CROWNE PLAZA MUTIARA KL
JALAN SULTAN ISMAIL
50250 KUALA LUMPUR

13

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract
AAJ
ASSOCIATES
(QS)
RMS
ASSOCIATES
(C&S)
PERUNDING
TIMUR (M&E)

ECERDC
(client)

KLCC
PROJEKS (PM)

ZAKIAH
ARCHITECT
(architect)

METROPOLIS
PLANNING (TP)
SYARIKAT
MAHYUDIN &
SIEW (LS)
DR. NIK &
ASSOCIATES
(EC)
AKVA GROUP
(RAS
Specialist)

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.

14

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.

15

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

16

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.
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.
17

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.

18

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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


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:
19

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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


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:

20

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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
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
21

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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
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

22

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

They are also responsible to make boundary line adjustments, produce topographic
maps, retrace property lines and prepare subdivision maps.

i) Environmental Consultant
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.

23

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

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.
24

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

5. PRE CONTRACT STAGE CHART


CLIENT

PROJECT MANAGER
& APPOINTED
CONSULTANTS
LETTER OF
ACCEPTANCE

25

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

PREPARATION OF TENDER
DOCUMENT
PREPARERATION OF
TENDER REPORT

Detail Pre-Contract Stage


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

26

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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 Architects, preliminary design
by Engineers, 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
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.

27

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.
People directly involve in this stage is Architects, Quantity Surveyor, Engineers and
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.
People directly involve in this stage is Architects, Quantity Surveyor, Engineers and
R.A.S Specialists.
Tender Action Stage
To obtain an acceptable tender.
Preparation of estimates and tender.
People directly involve in this stage is Architects, Quantity Surveyor, Engineers and
R.A.S Specialists.

6. PRE-CONTRACT COST ESTIMATE


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 governments project.

28

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

Cost in a project
preparation of preproceeds

by

only will be known after

PRELIMINARIES
ESTIMATE

this context, QS will

contract cost estimate


Quantity Surveyor. In
prepared cost estimate

in two (2) stages.

BUDGET

1. Preliminary
2. Pre-Tender

Approximate Estimate
Cost Estimate

COST STUDIES

PRELIMINARY

APPROXIMATE

ESTIMATE

FINAL ESTIMATE COST PLAN

Preliminary
based

on

design

agreed
stage

and

and

drawing

to

make

with

early

cost estimate prepared


plan

included

BILL OF QUANTITIES

with

assumptions in early
after

drawings
and

Reasons

this

PRICING OF BILL OF QUANTITIES

plan

from

engineer received.
preliminary

estimate

it

simple

planning

preliminary
architect

which

cost

prepared.

As

whether

value

TENDER REPORT

to

provision

enough.

If

amount

more

the
than

checking
money
preliminary
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.

29

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.

Specifications 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.
30

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.
31

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying
iv)

REPORT A: PreContract

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:
32

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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 clients 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 clients 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.
33

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

Drawings sent to the quantity


surveyor by architect and engineer

Quantity Surveyor prepare


Preliminary Estimate

If client agree with the Preliminary


Cost Estimate, continue the process
of tendering

Quantity Surveyor taking off and get


the quantity and edit entry into CATO

Double check by Quantity Surveyor

34

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

Head of technical apartment will


recheck and approved proper BQ

Bill of Quantities then compiled to be


tender document

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.

35

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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 contractors side.
36

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

Well thought-out the entire clients desire and also the policy of government, local
authority and the projects owner. It should have an approval from them before the
project start.
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 its 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.

37

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.
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 its 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 contractors desire and in this part the
contractor are given the permission to price all the subjects that are stated.
38

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.

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
39

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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 projects 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
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, employees registration form, bank
guarantee form for earnest money and performance bond, schedule of contractors
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. QSs 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.

40

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

41

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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

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.
42

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.
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.
43

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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
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:-

44

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

Tender No.

1/24

REPORT A: PreContract
Amount(RM)

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
45

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.

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.
46

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.
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 didnt give their cooperation and didnt communicate with
architect.
47

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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.

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.

48

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

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 clients needs.
This will affect cost effectiveness to meet the client requirement.
A Quantity Surveyor must ensure that all the clients 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)
49

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

2. PERKHIDMATAN

PROFESSIONAL

REPORT A: PreContract

JURUUKUR

BAHAN

PERINGKAT-

KONTRAK, Syed Abdul Syed Mustapa dan Busral Karim Md. Yusob,
UPENA,2007

50

MARA University of Technology


Department of Quantity Surveying
Faculty of Architecture Planning and Surveying

REPORT A: PreContract

APPENDICES

51