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Types of Residential Buildings
Flat
Single
Storey
Terrace
2-3 Storey
Terrace
Single
Storey Semi
Detached
Low Cost
FlatLow Cost
House
Cluster
Detached
Town
House
Service
Apartment
Condominiums
/Apartment
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Commercial Building Sector
Can be privately funded e.g.shopping mall, office complex
Owner negotiate the price.
Government funded e.g.
Hospital, University Campuses
Price based on lowest bid or
design and built.
Large in nature, required
expertise.
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Industrial Sector
Most of these projects are
privately funded.
Quality and time are the critical
aspects in construction and
designing of this type of
projects.
Timely and smooth executionof a project is the main concern
in this industry.
Large/complex in nature,
required many expertise.
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Civil & Highway Sector
Driven by social/public benefits.Most of these projects are public funded.
The client are government agencies.
Quality and time are the critical aspects in
construction and designing of this type of
projects.
Principally, designers of these
projects are civil engineers. Builder
are normally the lowest bidcontractors. However, for some
projects, client will shortlist few
contractors based on their previous
project experience, expertise and
management and financial
capabilities to complete the project.
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Town
Planner
Owner
ContractorEngineers
Architect
Sub-
Contractor
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Clients Duties
To frequently consult the
consultant and contractorTo find a suitable designengineer for the project
To give approval if any changesare made to the design or
specification of the project
To state the specificationof the project To always monitor the progress and
state their level of satisfaction on work
done by the contractor
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Professional Players - Characteristics
Extensive period of training of an intellectual manner, in
technical/systematic/humanistic way
Knowledge and skills vital to the well-being of the larger society
Monopoly or near monopoly on provision of professional services
Degree of autonomy in the work place,
choice/judgment/creativity/skills/judgment - sophisticated work not
entirely routine
Regulated by ethical standards. Public good as indicated by a code of
ethics. Acting in ethical/responsible ways as individuals andinstitutions.
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Architect
To Produce designs by
referring to clients
requirementsTo produce constructionplan/drawing
To plan and overview
tenders
To monitor work
progress
Timely, to monitor the design to fulfill
the regulations requirements
building codes, zoning laws, fire
regulations, and other ordinances,
such as easy access by physically
challenged individuals
To apply certificate
of fitness from the
authority
To provide pre-design
services conducting
feasibility, selecting a
site, or specifying the
requirements the
design must meet
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Civil
Engineer
Supervise
infrastructure works
according to
specifications
Obtain permission for
machine works, during
work and guarding work
for contractors
Prepare civil and structural
construction drawing
Precede structural
works according to
specifications of the
structural drawings
Explain the flow of workbetween subcontractor and
main contractor
Supervise earthwork
according to
specifications
Detail report of work
progress, supervise
concrete work and
do the test report
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M & E
Engineer
Detail record of work
progress and new
construction work
progress
Prepare mechanical and
electrical construction
drawing
Explain the mechanical
and electrical problems
Supervise mechanical
and electrical works and
ensure it follows the
design specification
Get the solution on electricalproblems such as lack of power
supply
Explain flow of work
between subcontractor
and main contractor
Discuss with main contractor
and subcontractor about
costing building system e.g.
elevators, escalator, electrical
system, cooling system
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Builders construct a project according to theapproved drawings drawn by architect & engineer
SurveyorsLand SurveyorSite surveying
Site boundary
Quantity SurveyorFinancial Management
Bill of Quantities
Obtaining Tenders
Contract Administration
Account preparation
Cost monitoring
ConstructorsResponsible for
construction activities
e.g. construction,
extension, installation,
repair, maintenance,
renovation, demolition
Register with CIDB (Act
Part VI)
A person who undertake
to carry out & complete
any construction works
Manage the project &
subcontracts
Keep on schedule
Control costs
Coordinate project team
members
Specialty
Contractors
Largest portion of
construction industry
Skilled construction
workers (act 520)
Have their own specialty
Hired and work directly
for main contractor
Can be award contract
directly from client
Nominated subcontractor
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Specialty Contractors
Metal
Worker
Carpenter
Bricklayer/
Mason
Plasterer
Drain
Layer
Welder
Licensed
Electrician
Tiler
Plumber
Joiner
Painter
Concretor
Constructor
plant
operator
Bar-bender
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Other ParticipantsThere are two other bodies/agencies that play an important role in
construction project.
Town Planner responsibility
Organised, control and plan for land
development and land acquisition includingbuildings within an area
Work, help and encourage the collection,
maintenance and publishing of statistics,
bulletin and monograph, related with town
and suburb planning & methodology
Carry out other task given by Pihak
Berkuasa NegeriorJawatankuasa
Perancang Negeri
Local Authorities
Bodies who represent the interests
of public safety
To ensure that the design of project
comply with the required standardsand guidelines
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List of Local Authority Involved in Construction Industry
No Local Authority Main Role
(i) BOMBA Fire hydrant approval
(ii) IWK Sewerage approval
(iii) DOE EIA, EMP
(iv) PWD Pilling, earthwork approval, TIA
(v) DID Drainage System, ESCP
(vi) Municipal Council Earthwork approval, Building
(vii) Pejabat Tanah Land acquisition
(viii) JBA Water reticulation
(ix) TNB Electrical approval
(x) TM Cable approval
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Flow of Technical Information
DEVELOPER/
OWNERCONSULTANTS CONTRACTOR
ARCHITECT
CIVIL &
STRUCTURAL
ENGINEER
MECHANICAL
ENGINEER
ELECTRICAL ENG
QUANTITY
SURVEYOR
BUILDING CODE &
SPECIFICATION
Needs
Solutions
Design
Drawings
Construct
Zoning Permit
Design &
Drawings
Inspection
Bills of
Quantity
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Types of Drawings
TENDER DRAWINGS
CONTRACT DRAWINGS
CONSTRUCTION
DRAWINGS
AS-BUILT DRAWINGS
Set of engineering drawings which
together with the other tender
documents, bills of quantities,specification, etc., will describe the
scheme to the contractor so that he can
workout the price to construct .
Are for working or building
purposes and must, therefore,
represent the engineers lastthough of construction.
A legally binding contract after
appointment of contractor. The
contracts drawings can be the
same as tender drawings. If
alternative proposals have been
accepted, new additional drawings
will have to be prepared.
A set of completion drawings.
Any changes from construction
drawings will be recorded in as-
built drawings and these
represent actual constructiondetails.
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Specification
Classes of specifications
i. Construction Specification
ii. Military or Federal Specification
iii. Engineering or Equipment Specification
Contract & Specifications
i) The connections between a contract and its engineering specifications arein the areas of meeting requirements for durability, safety and necessaryinformation, use of codes and standards and expert assistance.
ii) The connections between engineering and administrative specifications arein the areas of paperwork directly related to the building (that is, concerningdesign, testing, procedure, records, instructions and manuals).
iii) The connections between contracts and administrative specifications are inthe areas of contractual provisions related to management of the project and
terms of payment.
C i b C & S ifi i
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Connection between Contract & Specifications
Contracts
Engineering
Specification
Contractual Provisions
Related to Building
Design
Paperwork Directly
Related to the Building
Administrative
Contractual Provisions
Related to Management
of the Project
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Levels of Specifications in Construction Project
INDUSTRY & GOVERNMENT
Facility Requirements
CONTRACTORS
Construction Tooling Specifications
Assembly Specifications
Material Specifications
ARCHITECT/ENGINEER
Construction Specifications
Equipment Specification
Material Specifications
BUILDING MATERIALS SUPPLIERS
Process Specifications
Cleaning Specifications
Material Specifications
Packaging Specifications
PART MANUFACTURERS
Process Specifications
Cleaning Specifications
Material Specifications
Packaging Specifications
Examination & Shop Test Specifications
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Bills of Quantities
Nature of Bills
Comprise a list of items of work which are briefly described
Provide a measure of the extent of work and allows the work to be pricedThe work included in the item is defined in detail by the rules in the Method of Measurement
Item description is therefore brief to allow the relevant rules of the method to be identified
The measurement may be a single item or number, dimension (linear meter, square meter, cubic
meter), time (hours, weeks) or weight
Method of Measurement
BQ required to be prepared using rules in a specified Method of Measurement Standard Methods of
Measurement are now commonly available and used
The Method of Measurement will divide the work into categories for building industry, the division is
usually based on different trades
Practice in the Building Industry
The item description simply identifies the extent of the work priced, but the detailed requirements areto be found in the Specification and Drawings
In Contract Document the specification of the works is included in the Bills of Quantities in the form of
lengthy preambles
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Functions of BQ
BQ to serve a
number of
functions
An estimate measure of the
work for the tendered price, to
be used to achieve a revised
contract price once the actual
quantities of work carried out
are measured. It is the
remeasured form of contract.
A basis to measure the
value of work
completed for interim
payments.
A breakdown of the
tendered price, with no
contractual status, but
providing information for
the selection from
tenderers.
A schedule of rates (SOR)
as the contract basis for
valuing variations in the
work
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Standard Forms
The standard Forms of contract normally used for civil engineering adopt the bills of
quantities for re-measurement. In the building industry, the price is normally a lump
sum and the bills are intended to be simply a guide to allow the price to be
determined. All forms use the rates and prices in the bills as a schedule of rates for
valuation of variations. In Contract Document, Bills of Quantity consists of :
Preamble to Bill of Quantities
Bill 1: Preliminary
Bill 2: Civil & External Works
Bill 3: Building Works
Bill 4: Mechanical & Electrical Works
Bill 5: Prime Cost and Provisional Sum
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Contract Overview
In construction, contract consists of written agreements signed by the contracting
parties (mainly an owner and a contractor) which bind them, and it defines
relationships and obligations. If any one party fails to fulfill their part of the
agreement, then the other party can seek compensation.
A contract must involve a consideration or payment. A consideration is defined as an
act, or promise by one party with another that constitutes the price for which they
buy the promise of the other. Consideration is governed by three main elements:
Valuable consideration The act, forbearance or promise must have some economic
value. Good consideration (such as moral duty) is not sufficient to render a promise
enforceable.
Sufficient consideration Consideration must be sufficient but need not be
adequate. This means that there must be some economic value, but it need not be
realistic.
Movement of consideration Consideration must move from the promise. For
example, if X promises to give Y RM10000 in return for Y placing a contract with Z, Z
cannot enforce Ys promise, as Z has supplied no consideration for it.
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Contract Overview (cont.)
A contract should fulfill three functions,
a) Normal performance A contract should define what is expected from each
party and how their performance may be allowed to vary under certain
circumstances within contract.
a) Sharing of risk As we have seen, contracts involve risk. The seller, especially, is
exposed to considerable risk. A contract should define how risk is to be shared
between parties.
a) Coping with problems We hope that our contracts will work perfectly, but they
often involve problems. The contract should define how the more predictableproblems are to be dealt with.
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Contract Overview (cont.)
For a contract to be valid,
There must be an intention to create legal relationships
The contract must be legal
It must not be contrary to public interest
It may be written or verbal
It may be signed or sealed
The parties must have the capacity to contract
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Types of ConstructionContract
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Types of Construction Contract
Lump Sum
Concession
Design &
BuiltCost Plus
Unit PriceConstruction
Contract
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Lump Sum Contracts
Suitable if the scope and schedule of the project are sufficiently defined to allow
the consulting engineer to estimate project costs e.g. building type projects.
Required detailed planning and design prepared complete plans and specification
for tender documents. Clearly define scope of work desired, the specification and
level of quality desired.
Need to appoint architect & consultants to prepare the drawing and specifications.
After plans have been finalized and approved by the client, then the tender will be
opened for bidding.
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Lump Sum Contracts (cont.)
Lump sum contract can be implemented in three different ways,
i. Lump Sum through Drawings This contract is normally for the project that requires
early completion. The drawings provided is not very detail for contractors to get an
accurate measurement for cost estimating. Thus, contractors are liable to a greater
risk.
ii. Lump Sum through Drawings and Bill of Quantity (BQ) - This contract is typically for
projects valued more than RM1 million. Contractors are able to estimate the project
cost accurately with the help of BQ provided together with the drawings. This
contract also facilitates the client in making progress payment and can clearly justify
any variation order or additional order placed by them.
iii. Lump Sum through Drawings and Price Rate Schedule This contract is normally for
projects which do not have enough time for document preparation. Price of the
project is quoted by the contractor. Sometimes, this contract is used for maintenancejobs of buildings. It can be categorized into two types of contract or Firm Price
Contract.
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Lump Sum Contracts (cont.)
Selection of contractor will be made by the owner.
A specific Lump Sum price is determined through competitive bidding by two ormore contractors.
The contractor with the lowest bid price would normally be awarded the contract.
If the lowest bid proposal received is within the construction budget then theLump Sum contract can begin.
However, if the lowest bid proposal is over the budget, then it may be necessary toconduct Value Engineering process calling the selected bidder and consultants to ameeting Tender Evaluation Meeting the price will be adjusted & recalculated until
the project cost within the budget.
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Unit Price Contracts
Unit price contracts are used for work where it is impossible to calculate the exact quantity ofmaterials that will be required. This kind of contract is based on estimated quantities of itemsincluded in the project and their unit prices. The final price of the project is dependent on thequantities needed to carry out the project.
For example, the consultant estimated that 1 million cubic meters of earth needs to be moved.However, both owner and contractor know that after the earthwork has been completed, the earththat has been moved will not exactly be 1 million cubic meters as estimated by consultant. The exactquantity will vary upon completion.
The owner needs to tell the contractor the estimated quantity before the work starts and paythem the exact measured quantity after the work is completed.
Generally, this is contract is suitable for construction and supplier projects where different types ofitems, but not their quantity, can be accurately identified in the contract documents.
Heavy or highway works are the best projects to use this kind of contract.
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Cost Plus Contracts
Used in situations that make it difficult or impossible for either owner or contractor
to predict their costs during the negotiation, tender and award process. Technically, it is
favored where the scope of the work is indeterminate or highly uncertain and kinds of
labor, material and equipment needed are also uncertain
The most common form of cost plus contract is Cost Plus a Fixed Fee and Cost Plus a
Percentage. However, between the common two forms, most owners prefer to choose
Cost Plus Fixed Fee because it limits the profit amount for the contractor, thereby
removing any incentive for the contractor to produce poor quality work
Cost Plus a Percentage contracts are suitable for a very difficult situation such as
when the time to complete the work is uncertain, but some incentive to maintain
productivity are needed. Under this arrangement complete records of all time and
materials spent by contractor on the work must be maintained for future reference.
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Cost Plus Contracts (cont.)
The Cost Plus Contract may be specified as,
Cost + Fixed Percentage Contract
Cost + Fixed Fee Contract
Cost + Fixed Fee with Guaranteed Maximum Price Contract Compensation is
based on a fixed sum of money. The total project cost will not exceed an agreedupper limit.
Cost + Fixed Fee with Bonus Contract Compensation is based on a fixed sumof money. A bonus is given if the project finish below budget, ahead of schedule,etc.
Cost + Fixed Fee with Guaranteed Maximum Price and Bonus Contract Compensation is based on a fixed sum of money. The total project cost will notexceed an agreed upper limit and a bonus is given if the project is finished below
budget, ahead of schedule etc.
Cost + Fixed Fee with Agreement for Sharing Any Cost Savings Contract Compensation is based on a fixed sum of money. Any cost savings are shared withthe buyer and the contractor.
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Design and Build Contracts
In the design and build contracts a contractor is responsible for both the design and
construction of the project. This is the latest method being used in construction project.
It is also the fastest method for designing and building a project.
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Design and Build Contracts
Design & Build
Contracts
Advantages Disadvantages
Single point responsibility
easier to manage
Client/Design and Build Contractor are
in direct contract
Clients financial commitment
known from the outset
Greater integration between design and
construction and improved build ability
The Design and Build Contractor has more
control over the project delivery process
Reduce variance
Competition remains
There is little scope for the client to
make changes without substantial
costs to the client
The clients agent has to
ensure the specification is met
Performance standards are left
to the contractor
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Concession Contracts
The definition of the concession contract:
A project based on the granting of a concession by a Principal, usually by a
government to the Promoter, sometimes known as the Concessionaire, who
is responsible for the construction, financing , operation and maintenance ofa facility over the period of the concession before finally transferring the
facility at no cost to the Principal, a fully operational facility. During
concession period the promoter owns and operates the facility and collects
revenues in order to repay the financing and investment costs, maintain and
operate the facility and make a margin of profit.
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Concession Contracts
Concession
Contracts
BTO build,
transfer, operate
DBOT design, built,
operate, transfer
BOL build, operate,
lease
BOO build,
own, operate
FBOOT finance, build,
own, operate, transfer
BOT build,
operate, transfer
BOT build, operate,
transfer
BRT built,
rent, transfer
BOOST built, own,
operate, subsidies,
transfer
BOD build,
operate, deliver
DBOM design, build,operate, maintain
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Concession Contracts
Supply
Contract
Promoter
Operators
Users
Investors
Lender
Suppliers
Loan
Agreement
Shareholder
Agreement
Operation
Contract
Off-take
Contract
Concession
Agreement
Construction
Contract
Principal
Constructors
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Summary of Contract Types
No Contract Application Advantage Disadvantage1 Lump Sum Most widely used. Suitable for
project that have sufficient
information on scope and
schedule.
Fair and secure to all
parties
Consume a lot of time
during the design and
pricing stage.
2 Unit Price For a project that is impossible to
calculate the exact quantity of
materials or works.
Flexible contractual
arrangement.
Project may go over
budget after job
completed.
3 Cost Plus Used in situations that make it
difficult or impossible for either
the owner or contractor to predict
their costs during the negotiation,
tender and award process.
Contractors may gain
more profits because it
does not provide cost
control
High risk because a lot of
variable are uncertain.
4 Design & Build The fastest method for designing
and building a project
Faster and single point
responsibility easier
to manage by owner.
Performance standards
are left to the contractor.
5 Concession For a project based on the
granting of a concession by a
Principal to Promoter, who is
responsible for most of the work.
Single point
responsible. Facilitate
government in building
and maintaining
facilities.
Complicated, time
consuming and
expensive.