EXTENSION OF

KUALA LUMPUR
TWIN TOWER
PROCUREMENT
PROCUREMENT METHOD

Clients requirements:

Have full control of the design and able to introduce

changes from beginning till the completion

Not interested in the daily dealing with too many

parties except the few key members of the project

Complete project on time

Minimum variation to the contract price during the

construction
RECOMMENDATION:
TRADITIONAL
PROCUREMENT
METHOD
TRADITIONAL PROCUREMENT METHOD
How does it work?
Design phase to Construction phase

Consultant teams are appointed at the

early stage to carry out the design process.

Work will then tender out to the suitable

contractor only after design process is
completed.

Client can involved in the design stage to

ensure it is within their requirements.
TRADITIONAL PROCUREMENT METHOD
TRADITIONAL PROCUREMENT METHOD
WHY THIS METHOD?

TIME

1. Priority of this project fall into

quality and cost due to time is not
constraints. Duration of the project is 5
years
2. Provides medium time risk to the
client because it requires longer
time frame for the Pre and Post
Tender Stage.
Time given is sufficient for
this Kuala Lumpur Twin
Tower Mega project
TRADITIONAL PROCUREMENT METHOD
WHY THIS METHOD?

QUALITY Kuala Lumpur Twin Tower is a tourist area and

the landmark of Malaysia, quality of the work
must be taken into consideration.

1. Client can be involved in the design

process with the consultant team to
ensure that it is within the their
requirement.

2. Client able to make decision,

changes and provide instruction
during the designing stage with the
consultant team

Have full control of the design and able

to introduce changes from beginning till
the completion
TRADITIONAL PROCUREMENT METHOD
COST Construction cost given is RM 1.2 billion.

1. This method is the most suitable as it provide lower cost risk to the
client due to the use of lump sum contract.

2. Any overcharging fees will be bear by contractor.

3. The amount is agreed between the parties in the contract before the
construction start.

4. Having a completed design of the project before tendering process

can provide the client certainty of the construction cost and the
design quality.

Minimum variation to the contract price during the construction

TRADITIONAL PROCUREMENT METHOD
1. The client only have to communicate with the consultant team
and only have contractual relationship with the main contractor
and consultants.

2. This form of procurement is also suitable for both experience

and inexperienced client because client can get advice from the
consultant team regarding to the project.

3. Subcontractors are dealt directly by the main contractor.

The client is not interest to deal with too many parties except the
few key members of the project.
CONCLUSION
TRADITIONAL METHOD

- Longer time frame but ensures better quality and cost delivered

- Does not need to deal with multiple parties but only key players

- Price certainty of construction cost unlike other methods

- For experience and inexperience clients unlike other methods

TENDER METHOD
TENDER METHOD

Clients requirements:

Reasonably transparent
selection process

Eliminate potentially
non-performing contractor
 RECOMMENDATION:

TWO STAGE
SELECTIVE TENDERING
SELECTIVE TENDERING
Tender Procedure

Pre-qualification Stage

1. Advertisement in newspaper
to invite interested tenderers
to submit their company
profiles for evaluation in the
Pre-qualification Form

2. A list of pre-qualified
contractors will then be
included in the final tender list
and invited to collect the
tender documents.
SELECTIVE TENDERING
Tender Procedure

Pre-qualification Stage

1. Advertisement in newspaper
to invite interested tenderers Reasonably transparent
to submit their company selection process
profiles for evaluation in the
Pre-qualification Form

2. A list of pre-qualified Eliminate potentially

contractors will then be non-performing
included in the final tender list contractors.
and invited to collect the
tender documents.
SELECTIVE TENDERING
Tender Procedure

3. The list of pre-qualified contractors will

proceed on to the tendering process.

4. Evaluation process of tender

submissions from the list of pre-qualified Quality
Assured
contractors takes place.

5. The most competent and suitable

contractor will be selected.
SELECTIVE TENDERING
Tender Procedure

6. The selected contractor will proceed on to the

negotiation process.

7. The price negotiation would take place until an

agreement is reached and both parties are satisfied,
leading them to enter into contract for construction
works to commence.
SELECTIVE TENDERING
(TWO STAGE)

Reasonably transparent selection process

Eliminate potentially non-performing contractor

Quality Assurance
CONTRACTUAL
ARRANGEMENT
CONTRACTUAL ARRANGEMENT
TYPE OF CONTRACT
LUMP SUM CONTRACT

WHAT IS LUMP SUM CONTRACT ?

Lump sum price for all the work agreed before the work begin whereby
contractor is required to submit a total and global price.

Contractor is responsible for executing the complete contract work for a stated
total sum of money.
CONTRACTUAL ARRANGEMENT
TYPE OF CONTRACT
LUMP SUM CONTRACT

WHY LUMP SUM CONTRACT ?

Based on clients condition and consideration :
1) Unfamiliar with construction industry

2) Not interested on dealing with too many parties

3) Minimum variation
CONTRACTUAL ARRANGEMENT

FORM OF CONTRACT

PAM CONTRACT 2006 (WITH QUANTITIES)

WHY PAM CONTRACT 2006 ?

- private sector project
- traditional procurement method
CONTRACTUAL ARRANGEMENT

EMPLOYERS CONSIDERATION AND REQUIREMENT

TIME

QUALITY

HEALTH AND SAFETY

CONTRACTUAL ARRANGEMENT

EMPLOYERS CONSIDERATION AND REQUIREMENT

TIME
1. Clause 21.1
Possession of the site for execution of the works on the Date of Commencement
2. Article 7
Completion Date
3. Clause 22.1
Certificate of Non-Completion
4. Clause 22.2
Pay for the agreed Liquidated Damages (RM 250,000.00 a day)
5. Clause 15.2
Written notice for practically completed.
CONTRACTUAL ARRANGEMENT

EMPLOYERS CONSIDERATION AND REQUIREMENT

QUALITY

Clauses 6.0
Material, Goods and Workmanship To Conform to Description, Testing And
Inspection supports the requirement of good workmanship
Clauses 6.3
Inspection and testing
Clauses 6.5
Work not in accordance with the contract
Clauses 6.8
Warranties in respect of materials and goods
CONTRACTUAL ARRANGEMENT

EMPLOYERS CONSIDERATION AND REQUIREMENT

HEALTH AND SAFETY

A) GENERAL ITEMS IN PRELIMINARIES

B) EMPLOYEES SOCIAL SECURITY ACT 1969

C) WORKMENS COMPENSATION ACT 1952

D) PAM CONTRACT 2006 (WITH QUANTITIES)

E) OCCUPATIONAL SAFETY AND HEALTH 1994 ( OSHA 1994)

CONCLUSION
 THANK YOU!

KENNETH TAN SIN KWANG 0322482 ADELE LU KHAI SYN 0323151

CHAN YI FUNG 0323057 LEW QUO MING 0322884
LEE FONG YEN 0321976 WONG JIA JING 0327221
LEE LIN HUI 0322797 YEAP PHAY SHIAN 0322243
LEONG LI JING 0323628 YEE JYH LIN 0322408
LEONG MIN HUI 0327596
 THANK YOU!

KENNETH TAN SIN KWANG 0322482 ADELE LU KHAI SYN 0323151

CHAN YI FUNG 0323057 LEW QUO MING 0322884
LEE FONG YEN 0321976 WONG JIA JING 0327221
LEE LIN HUI 0322797 YEAP PHAY SHIAN 0322243
LEONG LI JING 0323628 YEE JYH LIN 0322408
LEONG MIN HUI 0327596