EXTENSION OF KUALA LUMPUR TWIN TOWER

PROCUREMENT

PROCUREMENT METHOD

Client’s 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 METHODHow 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

● TIME

1. Priority of this project fall into quality and cost due to time is not constraints.

2. Provides medium time risk to the client because it requires longer time frame for the Pre and Post Tender Stage.

Duration of the project is 5 years

WHY THIS METHOD?

Time given is sufficient for this Kuala Lumpur Twin Tower Mega project

TRADITIONAL PROCUREMENT METHOD

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

WHY THIS METHOD?Kuala Lumpur Twin Tower is a tourist area and the landmark of Malaysia, quality of the work must be taken into consideration.

● QUALITY

TRADITIONAL PROCUREMENT METHODConstruction 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.

● COST

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.

CONCLUSIONTRADITIONAL 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

Client’s requirements:

● Reasonably transparent selection process

● Eliminate potentially non-performing contractor

RECOMMENDATION:

TWO STAGE SELECTIVE TENDERING

SELECTIVE TENDERINGTender 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 TENDERINGTender 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.

Eliminate potentially non-performing contractors.

Reasonably transparent selection process

SELECTIVE TENDERINGTender 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

contractors takes place.

5. The most competent and suitable

contractor will be selected.

Quality Assured

SELECTIVE TENDERINGTender 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

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.

TYPE OF CONTRACTLUMP SUM CONTRACT

CONTRACTUAL ARRANGEMENT

WHY LUMP SUM CONTRACT ?Based on client’s condition and consideration :

1) Unfamiliar with construction industry

2) Not interested on dealing with too many parties

3) Minimum variation

TYPE OF CONTRACTLUMP SUM CONTRACT

CONTRACTUAL ARRANGEMENT

PAM CONTRACT 2006 (WITH QUANTITIES)

WHY PAM CONTRACT 2006 ?- private sector project - traditional procurement method

FORM OF CONTRACT

CONTRACTUAL ARRANGEMENT

● TIME

● QUALITY

● HEALTH AND SAFETY

EMPLOYER’S CONSIDERATION AND REQUIREMENT

CONTRACTUAL ARRANGEMENT

● TIME1. Clause 21.1

Possession of the site for execution of the works on the Date of Commencement2. 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.

EMPLOYER’S CONSIDERATION AND REQUIREMENT

CONTRACTUAL ARRANGEMENT

● QUALITY

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

EMPLOYER’S CONSIDERATION AND REQUIREMENT

CONTRACTUAL ARRANGEMENT

● HEALTH AND SAFETY

A) GENERAL ITEMS IN PRELIMINARIES

B) EMPLOYEE’S SOCIAL SECURITY ACT 1969

C) WORKMEN’S COMPENSATION ACT 1952

D) PAM CONTRACT 2006 (WITH QUANTITIES)

E) OCCUPATIONAL SAFETY AND HEALTH 1994 ( OSHA 1994)

EMPLOYER’S CONSIDERATION AND REQUIREMENT

CONCLUSION

THANK YOU!

KENNETH TAN SIN KWANG 0322482CHAN YI FUNG 0323057LEE FONG YEN 0321976LEE LIN HUI 0322797LEONG LI JING 0323628LEONG MIN HUI 0327596

ADELE LU KHAI SYN 0323151LEW QUO MING 0322884WONG JIA JING 0327221YEAP PHAY SHIAN 0322243YEE JYH LIN 0322408

THANK YOU!

KENNETH TAN SIN KWANG 0322482CHAN YI FUNG 0323057LEE FONG YEN 0321976LEE LIN HUI 0322797LEONG LI JING 0323628LEONG MIN HUI 0327596

ADELE LU KHAI SYN 0323151LEW QUO MING 0322884WONG JIA JING 0327221YEAP PHAY SHIAN 0322243YEE JYH LIN 0322408