TOPIC 1

PRINCIPLES OF
MANAGEMENT
LESSON OUTCOMES (LO)
At the end of this module, students should be able to:
Understand the sequential and continuous function of
construction management.
Explain the principle requirements and processes
involved in sequential function of construction
management. 
 CONSTRUCTION
In the fields of architecture and civil engineering, construction
is a process that consists of the building or assembling of
infrastructure, which may involve some or any of the activity
as follow:-
Site Position

Site Clearing

Site Construction (Sub-Structure + Super-Structure)

Testing and Comissioning + Defect Liability Period

CCC

Hand-Over
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 MANAGEMENT
The art and science of controlling human resources,
equipment, materials, cash flow and schedule to complete a
project within a specified time and approved cost efficiently
and effectively.
Various activities involving the organization at multi-level of
the number of individuals. 
The function of getting things done through other people.

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 CONSTRUCTION
MANAGEMENT
Study and practice of the managerial and technological
aspects in construction industry. 
E.g.: construction, construction science, construction
management and construction technology. 
May also serve as a consultant, providing both design and
technical construction advice.

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FUNCTIONS OF MANAGEMENT
Sequential Function
Occur in sequence
Includes planning, organizing, staffing, directing
and controlling (POSDC)
Output or result of an activity is measured 
Necessary corrective action will be proposed 
Appears in cycle
MOSTLY OCCUR DURING CONSTRUCTION STAGE

Continuous Function
Problem analysis, decision-making
and communicating
Throughout the management processes
rather than any particular sequence
Manager must have effective communication skill
MOSTLY OCCUR DURING DESIGN STAGE 

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 SEQUENTIAL FUNCTION
MANAGEMENT

1.  Planning
2.  Organizing
INPUT 3.  Staffing OUTPUT
4.  Directing
5.  Controlling

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 SEQUENTIAL FUNCTION
MANAGEMENT

INPUT SUCCESSFUL

(Resources) = MANAGEMENT
OUTPUT =
Human, Financial, =
Time, Money and
Technological Efficiently
Quality
and Natural +
Effectively

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 PLANNING
Who conducts Planning?

Planner or Manager. 
One who directs the work of others
and who does his work by getting
other to do theirs. 
‘People at the top’.

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 PLANNING
The formulation of a course of action
(objectives) to guide a project to
completion. 
Resources planning management
including time, cost, equipment,
manpower and schedule. 
Use Master Work Programme to
breakdown the main activities (Task)
into smaller activities (Sub-Task). 

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 PLANNING
5 Steps Involved In Planning Process.

Identification of objective desired. 

Expression of the objective (time). 
Assessment of resources (available
vs. required). 
Establishment of the most
economical method (objective + time
+ resources). 
Specify the allocations of
responsibilities. 

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 ORGANIZING
The process of assigning tasks,
allocating resources and arranging
coordinated activities to implement
plans. 
Establishing the organizational
structure. 
Defining responsibilities of each
department. 
Establish relationship between
individual/department to others. 

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 STAFFING
Control selection of individuals who
have the expertise to produce the
work. 
People are the most important
resource as they provide the
knowledge to design, coordinate and
construct the project. 
Consists of assigning human
resources, work progress evaluation,
promoting and suspending human
resources. 

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 About Planning,
Organizing and Staffing
PLANNING, ORGANIZING and STAFFING are THE MOST
INTER-RELATED processes in performing planning
management.

This can be identified when preparing the Master Work

Programme either via Excel worksheet or Microsoft
Project or Primavera.  

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 DIRECTING
Process of directing, issuing
orders/instructions to the human
resource efforts with guidance of work
for project completion. 
Important skills required;
communication, motivation, decision
making, problem solving, supervision
and public relation. 
Influencing others' behaviour,
leadership and discipline. 
Steps include staffing, training,
supervising, delegating and motivating.
 
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 DIRECTING
Steps Involved In Directing Process
Staffing: seeing that a qualified person is
selected for each position.

Training: teaching individuals and groups how

to fulfill their duties and responsibilities.

Supervising: giving others day-to-day

instruction, guidance as required so that they
can fulfill their duties and responsibilities.

Delegating: assigning work, responsibility and

authority so others can make maximum
utilization of their abilities.

Motivating: encouraging others to perform by

fulfilling or appealing to their needs.   

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 CONTROLLING
Establish a system to measure, report and
forecast outcome/corrective actions in
project scope, budget, schedule.
Requires the continual reporting of
information in a timely manner to have
direct management respond.
Most difficult tasks.
Steps; determine standard and progress,
progress evaluation, establish verification
system, corrective plan.
Ensures that plans are being
implemented properly (influence
schedule, cost, quality, etc.).

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 CONTROLLING
3 steps process of measuring progress
towards an objective, evaluating what
remains to be done and taking the
necessary corrective action to achieve
or exceed the objectives as follow:-

Measuring: determining through formal

and informal reports the degree to which
progress toward objectives is being made.
Evaluating: determining cause of and
possible ways to act on significant
deviations from planned performance. 
Correcting: taking control action to
correct an unfavourable trend or to take
advantage of an unusually favourable
trend.
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 Other Related Examples
Construction of Housing Area (RM 500,000,000 in 2 years duration).

During design stage, most of the problems that are expected will be
analyzed and communicated thoroughly so that the project is able to run
smoothly. However, continuous function does not necessarily stop there. It
depends on the project progress.

Planning – Planning and preparing for architectural drawing, engineering

design, budget and assess any other related items required to complete the
project.

Organizing – Delegating tasks between personnel and department required

such as project manager, material supplier, contractor etc.
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 Other Related Examples
(Cont.)
Staffing – Recruiting and selecting the required person for the right job such
as licensed lorry driver to drive a lorry and general worker to do various
construction job including concrete casting. 

Directing – Project Manager will play the vital role here to ensure everyone
feels motivated to complete the project and accomplish their tasks
throughout the project lifecycle.

Controlling – Ensure that labours are working accordingly to their schedule

without having to extend the original plan and complete the overall project
within the limited budget and specified time. 

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SUMMARY

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ACKNOWLEDGEMENTS

Janidah Eman (UiTMPP)

Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
 REFERENCES

Chitkara, K. K. (2014). Construction Project

Management. Tata McGraw-Hill Education.

Knutson, K., Schexnayder, C. J., Fiori, C., Mayo,

R. E. (2009). Construction Management
Fundamentals (2nd ed.). McGraw-Hill

Additional Notes:
Principles of Management
Management Principles
CONTENT DEVELOPERS
 Topic 2
Introduction To The
Construction Industry
 Learning Outcomes (LO)

At the end of this module, students should be able to:

Understand the current scenario and challenges faced in
construction industry. 
Explain the types and roles of those involves directly in the
construction project. 
Construction Industry
Scenario
• As one of the largest industry in the world
a. High-rise building

Abraj Al-Bait Towers (601m)

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 Construction Industry
Scenario
• As one of the largest industry in the world
b. Infrastructure

1.   Switzerland 8.   France
2.   Singapore 9.   Austria
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Top 10 countries 3.   Hong Kong SAR 10. Denmark

with best 4.   United Arab Emirates
infrastructure 5.   Netherlands
6.   Japan
7.   Finland

© Statista "Global country ranking by quality of infrastructure 2016"

 Construction Industry
Scenario
Strong influence on the global economy because of diverse trades and
professions (mega projects)

i. Airport Projects (Selected Only)

Hong Kong International Airport / (20 billion USD) / 45,558,807 passengers 

Kansai International Airport, Japan / (20 billion USD) / 13,516,000 passengers
Denver International Airport, US / (4.8 billion USD) / 50,167,485 passengers
Kuala Lumpur International Airport, Malaysia / (3.5 billion USD) / 29,682,093
passengers
Bandung Majalengka Airport, Indonesia (15 billion USD) / under construction
for site clearance 

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 Construction Industry Scenario
• Strong influence on the global economy because of diverse trades and    
 professions (mega projects)

   ii. Building Projects (As per high-rise building)

       ‒ Petronas Tower KL, Malaysia.

   • Basement and Retaining wall 2 year completed

      ‒ 21m high retaining wall, with perimeter length of over 1,000 m.
      ‒ 40 workers on site 24 hours per day.

   • Construction 7 years
      ‒ Planning on the Petronas Towers started on 1st January 1992.
      ‒ Spires of Tower 1 and Tower 2 were completed on 1 March        
         1996.
      ‒ Officially opened by the Prime Minister of Malaysia's Tun Dr.    
         Mahathir bin Mohamad on 1st August 1999.

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 iii. Dam and hydroelectric Projects
Construction      ‒ Bakun Dam, Sarawak, Malaysia.

Industry
    ➤ Total cost for building the entire dam is                
         valued at RM5.8 billion.

Scenario     ➤ The Bakun Hydroelectric Dam is the                      

         second highest concrete faced (207m)                  
         rockfill dam in the world.
    ➤ Generate 2,400 megawatts.
    ➤ Main framework:-
       • 30% of the generated capacity consumed            
          in East Malaysia via 730 km of overhead              
          HVDC transmission lines.
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       • 70% to Peninsular Malaysia via 670 km of            

         undersea HVDC cable and 300 km of                    
         HVDC transmission line.
    ➤ Experts, engineers, specialists and                        
Strong influence on the global
         consultants worldwide are involved in this          
economy because of diverse
         mega-project.
trades and professions (mega
projects)      ➤ 3,000 workforce on site at the peak of                  
         construction activity.
 Construction Industry
Scenario
• Strong influence on the global economy because of diverse trades and  
  professions (mega projects)

iv. Other Mega Projects

Canals (Melaka River)
Tunnels (Smart Tunnel, KL) 
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Bridges (Second Penang Bridge) 

Ports (Port Klang, Selangor)
Highways (Pan Borneo, Sabah & Sarawak)
Etc.
 Construction Industry
Scenario
•  Primary activities
  i)  construction of new facilities
  ii) renovation of existing structures (e.g. building, factory, house, road, airport      
      and etc.)

Construction project exists because an owner (private or public) needs or desires

a facility or City development. E.g.:-
‒  Mid-valley, Klang
‒  Nusajaya, Johor
‒  SCORE, Sarawak
‒  Halal Hub Tanjung Manis, Sarawak

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Scenario in
Malaysia
‒ Government is the biggest key player (owner)
‒ E.g. through:-
➤ Malaysia Plan (Eleventh Malaysia Plan)
➤ Master Plan City or District

‒ Economic recession in Malaysia

1968 – 1969      1984 – 1988      2008 – 2009
1976 – 1978      1997 – 1998    
   
Affecting construction industry where many
contractors filed for bankruptcy.

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 Scenario in
Malaysia

How project can be affected;  

Ex. Bakun Dam Project
a. Economic plan
b. Economic management

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 Scenario in
Malaysia

In 2015, construction industry employed 1.3 million peoples, whereas in 2016 the contribution of GDP
from construction sector was RM 49.87 billion. (Department of Statistics, Malaysia)

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Scenario in
Malaysia

Advantages
Political Stability
Peacefulness 
Economic Prosperity 

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 Scenario in
Malaysia

Problems faced
Highly traditional and fragmentation 
Slow to embrace new technology 
Restrictive/outdated building codes 
Labour agreements and craft jurisdictional issues
Liability and legal consideration 
Lack of profit motive or other incentive

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 Scenario in
Malaysia

Challenges in the future

Produce high quality product, low maintenance and construction cost 
Utilize technology to reduce manpower 
Safety aspects 
Competition from foreigners 
Dynamic of parties involved 
Ineffective method of contractor registration, admin procedure etc. 
Financing 
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Professionals in Building
Construction
1. Owner/Client/Developer
2. Consultant
3. Contractor
4. Sub-Contractor (SC)
5. Nominated Sub-Contractor (NSC)
6. Nominated Supplier
7. Financial Institution
8. Government Agencies
9. Lawyers

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 Owner/Client/Developer 

‒  The sector that initiates the project, assume risk and  

    enjoy the profit or meets the loss.
‒  Either public (government) or private sector.

Powers to:
•  Defer giving possession of site to the contractor
•  Assign the contract
•  Appoint clerks of works 
•  Insure against property damage
•  Employ and pay other persons to do work (third          
    party)  

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 Owner/Client/Developer 
Some of the project appoint Project Manager to deal
directly with consultant or contractor to perform task
as follow:- 
Act as a leader of the planning team 
To coordinate the project with local and federal
authorities 
Responsible for calling and recommendation of
tenders 
To certify progress payment to consultant and      
contractor 
To keep a record of work progress and report to
the management other problems encountered.

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 Owner/Client/Developer 
Duties to:

Keep the Contract Documents 

Give possession of site to the contractor on the
date of possession 
Pay the contractor amount awarded by the
arbitrator  
Pay contractor amount certified within period of
honoring certificate 
Not to divulge contractors rates and prices
(confidentiality of contract documents) 

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 Consultant

The sector that plans and designs projects, prepare

tender documents, advise on the award of contracts,
supervises implementation and administers contract.
  
Examples:
•  Architect
•  Civil and Structural Engineer (C&S)
•  Mechanical and Electrical Engineer (M&E)
•  Quantity Surveyor (QS)
•  Project Management Consultant (PMC)

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 Contractor
•  Main Contractor that physically translates the            
    projects by coordinating the works of various            
    contractor through the construction works.

•  Powers to:
‒  Inspect the contract documents
‒  Assign the contract if consent is given
‒  Sub-contract any part of the works if required
‒  Serve a default notice on the owner specifying the    
    faults alleged

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 Contractor

Duties to:  

Notify in writing to Architect/Engineers to any cause

of delay.
Make specific written application to the Architect for
any instruction or drawing (RFI).
Indemnify the owner against personal injury or
death of any person and property damages.
Keep a competent person in charge of the works at
all reasonable times.
Remove from works any temporary building
equipment when instructed by SO. 

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 Sub-Contractor (SC)

•  Carry out the physical work on behalf of contractor   

    or for client as third party.
•  Involving Architect, C&S and specialist works.
‒  Architect works includes floor finish, wall finish,          
    roof covering and etc.
‒  C&S works includes concrete, steel, road,                  
    drainage, sewerage and etc.
‒  Specialist work includes kitchen, laboratory, water    
    proofing and etc.  

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Nominated Sub-Contractor
(NSC)

•  Carry out the M&E work on behalf of contractor or    

    directly for client.
‒  Lighting
‒  Fire Fighting
‒  Air Conditioner/Ventilation System
‒  Gen-Set
‒  Sanitary Plumbing
‒  etc.   

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 Nominated Supplier

•  Supply raw material or any machinery for                    

    construction
•  E.g. raw materials as follow:-
‒  Concrete
‒  M&E equipment or fittings
‒  etc.   

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 Financial Institution

The sector that provides credit and financial

facilities to various parties in the construction
industry. 
Include: banks, Finance companies, credit
corporations. 
Involving Insurance and Performance bond  

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 Government
Agencies

Local Authorities

• The sector represents the               • Departments involves are normally as

 government approving authorities            follow  (depends on official local          
 for various submission                        authority).
 documents approval as sequences          ➤ ‘Jabatan Kawalan Bangunan’
 follow:-    ➤ ‘Jabatan Perkhidmatan Perbadanan
   ➤ DO approval         dan Kesihatan’
   ➤ Building Plan approval    ➤ ‘Jabatan Perancang’
   ➤ Execute Work approval    ➤ ‘Jabatan Kejuruteraan’

   ➤ CCC approval    ➤ ‘Jabatan Landskap’

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Government Government Department

Agencies • The departments that represents the

government approving on regulations
and rules including design and system.

Departments involve as follow:- •  Earthwork

•  Road and Drainage works   ➤ Jabatan Kerja Raya (JKR)
  ➤  Jabatan Kerja Raya (JKR)   ➤ Jabatan Pengaliran dan Saliran (JPS)
  ➤  Jabatan Pengaliran dan Saliran (JPS) •  M&E and Architect works
•  Water work   ➤ Fire Department
  ➤  SPAN   ➤ Telekom Malaysia
  ➤  Syabas (Different each state)   ➤ Tenaga Nasional Berhad (TNB)

•  Sewerage work  

  ➤  SPAN
  ➤  IWK (different for East Malaysia)

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Government Government Department

Agencies • The departments that represents the

government approving on regulations
and rules including design and system.
(cont)

Other departments may involve depending on

the purpose and type of project as follow:-
➤  Jabatan Mineral dan Geologi (JMG) – IKRAM
➤  Jabatan Alam Sekitar (JAS)
➤  CIDB
➤  MIDA
➤  etc. 

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 Government
Agencies

Malaysian Construction Industry Development Board

(CIDB) 

To fulfill the needs of construction industry by giving courses

Emphasizing on quality enhancement
Helps local contractors to propel themselves to the international level
To introduce the construction industry to the advance technology 

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 Lawyers

Involve in preparation of document for construction

contract.
Some of the projects lawyers act on behalf's of the
contractor and client in arbitration case.  

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Summary
Malaysia construction industry progressive towards Vision
2020 and National Transformation 2050.
All parties need to communicate and cooperate for better
performance of construction industry.

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Acknowledgements 
Janidah Eman (UiTMPP)
Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
 Chitkara, K. K. (2014). Construction Project Management. Tata
McGraw-Hill Education.
References
Knutson, K., Schexnayder, C. J., Fiori, C., Mayo, R. E. (2009).
Construction Management Fundamentals (2nd ed.). McGraw-Hill

Levy, S. M. (2012). Project Management in Construction (6th ed.).

McGraw-Hill.

Ritz, G. J., Levy, S. M. (2013). Total Construction Project Management

(2nd ed.). McGraw-Hill Education.

Additional Notes:
 The Work of The Construction Industry 
What is the Construction Industry? An Economic Fact Book
Global country ranking by quality of infrastructure (2016)
Content Developers
TOPIC 3

INTRODUCTION TO

PROJECT
MANAGEMENT
LESSON OUTCOMES (LO)

At the end of this module, students should be able to understand and explain:
The definition and concept of project management. 
The objective of project management. 
The key indicators in defining a successful project.
DEFINITION & CONCEPT

VARIOUS PROJECT DEFINITONS

A project is a unique venture with a beginning and an end, conducted by people
to meet established goals within parameters of costs, schedule and quality.  

Buchanan & Boddy (1992) p.8 -  Take the Lead: Interpersonal Skills
for Project Managers

A project is a set of people and other resources temporarily assembled to reach a

specified objective, normally with a fixed budget and with a fixed time period.
Projects are generally associated with products or procedures that are being done
for the first time or with known procedures that are being altered.

Graham (1995) pp 1-2 - Project Management

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DEFINITION & CONCEPT

VARIOUS PROJECT DEFINITONS (CONT)

A project is an organized work towards a pre-defined goal or objective that requires

resources and effort, a unique (and therefore risky) venture having a budget and
schedule, requires a temporary organization and is not permanent in nature. 

Zulkiflee Yusof (2002) - Project Management

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DEFINITION & CONCEPT

PROJECT CHARACTERISTICS
Project is a unique undertaking 
Projects have specific objectives (or goals) to achieve
Projects require resources 
Projects have budgets 
Projects have schedules 
Projects require the effort of people and measures of quality will apply 
Projects require temporary organization 
Projects are not permanent in nature 

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 DEFINITION & CONCEPT

VARIOUS PROJECT MANAGEMENT DEFINITIONS

Project management can be defined as planning, directing, leading, coordinating

(scheduling), and controlling all resources (manpower, materials, machines, capital
and money) to meet the technical, costs and time constraint factors of the project. 
(Davis, Aquilano and Chase, 2006) - Fundamentals of Operations Management

Project management is defined as the overall planning, control and coordination of a

project from inception to completion aimed at meeting a client’s requirement.
(ensuring completion on time, within cost and to required quality standards).  

(Chartered Institute of Building (CIOB),U.K.)

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DEFINITION & CONCEPT

VARIOUS PROJECT OR CONCLUSIVELY

MANAGEMENT
Project Management is
DEFINITIONS
both an Art & Science
The art and science of controlling people,
equipment, materials, money and schedule Mastering the science of
to complete on time and within approved Project Management
cost of the operation of building planned/ provides a foundation for
the Art of Leadership. 
undertakings

(Oxford dictionary)

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DEFINITION & CONCEPT

VARIOUS PROJECT MANAGEMENT DEFINITIONS

Art encompasses:
Political and interpersonal skills 
Making creative decisions
Knowing intuitively when to delegate works
The art of leadership embodies skills that are gain through experience,
sensitivity and a thorough knowledge of the Basic Science of
Management

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 DEFINITION & CONCEPT

CONCEPT OF CONSTRUCTION PROJECT

MANAGEMENT
Below are the concepts of Construction Project Management:
There must be one person responsible for the project (PROJECT MANAGER).
There is an approved scope, budget and schedule for the project. 
There is a project organizational chart showing authority and responsibilities
for all team members. 
It must have a work breakdown structure (WBS) that divides the project into
definable and measurable units of work. 
The project tasks are organized around the work to be performed. 
The schedule and budget are linked to the scope of project. 
There should be an explicit (clear and precisely expressed) operational work
plan to guide the entire work.

Note: A concept is an abstract idea as well as a Project is a unique undertaking. 

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DEFINITION & CONCEPT

CONCEPT OF CONSTRUCTION PROJECT

MANAGEMENT (PROJECT MANAGER)

Essential skills of Project Manager 

LEADERSHIP – able to stimulate actions, progress and change.
TECHNOLOGICAL UNDERSTANDING – have accurate perception of the technical
requirements. 
EVALUATION and DECISION MAKING – ability to evaluate alternatives and make
informed decisions. 
PEOPLE MANAGEMENT – able to motivate teams and have a constant personal
drive towards achieving project goals. 
DESIGN and MAINTENANCE OF SYSTEM – able to demonstrate individual
competence and have a complete working knowledge of the internal
administration of the project. 

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DEFINITION & CONCEPT

CONCEPT OF CONSTRUCTION PROJECT

MANAGEMENT (PROJECT MANAGER)
Essential skills of Project Manager (cont)
PLANNING and CONTROL – constantly monitoring progress against plan and
taking necessary corrective actions 
FINANCIAL AWARENESS – proficient in Risk Management and have broad
financial knowledge. 
PROCUREMENT – understanding the basics of Procurement and able to develop
the Procurement strategy for the project. 
COMMUNICATION – able to express themselves in a clear and unambiguous
way in SPEAKING and WRITING. 
NEGOTIATION – able to understand the Contract and manage the Sub-
Contractors.
LEGAL AWARENESS – aware of the legal issues that could affect the project. 

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 DEFINITION & CONCEPT

CONCEPT OF PROJECT
MANAGEMENT (PROCESS INVOLVE)
A Process is:
“A Series of actions bringing about results”.

PLANNING EXECUTING
INITIATING
 PROCESSES  PROCESSES 
PROCESSES
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CONTROLLING CLOSING
PROCESSES PROCESSES
DEFINITION & CONCEPT

CONCEPT OF PROJECT
MANAGEMENT (PROCESS INVOLVE)
INITIATING PROCESS (Definition stage)

Considers the necessary processes to assure that the project will be accomplished.

Defining the goals of the project to be achieved.

Defining the outcomes or accomplishments to be expected.
Defining the project design parameters and specifications.
A poorly defined project will lead to execution problems and may require costly
rectification work.

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DEFINITION & CONCEPT

CONCEPT OF PROJECT
MANAGEMENT (PROCESS INVOLVE)

PLANNING PROCESS

The planning process aims at planning the work scheme or program to achieve
the project objectives. 
Involving defining the scope, formulation of execution strategies, sequencing of
activities and planning of resources required.

Note: all actions above are usually illustrated on the Master Work Programme.

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 DEFINITION & CONCEPT

CONCEPT OF PROJECT
MANAGEMENT (PROCESS INVOLVE)
EXECUTING and MONITORING PROCESSES
Consists of coordinating people and resources to execute the plan and involves
quality and cost control procedures, information distribution and suppliers selection. 
It is at the implementation stage that all the activities and actions take place.
Monitoring processes aim at assuring that the project objectives are achieved
through monitoring and appraisal of its progress, controlling project changes or
variations which may effect costs, quality and risks. 
The sooner the problems, delay or changes are identified, the easier it will be for
the project manager to address them, adjust its course and meet the project
goals.

Note:  Most of the executing and controlling activities will conducted as per
PQP or SOP provided by contractor with approval from consultants.
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 DEFINITION & CONCEPT

CONCEPT OF PROJECT
MANAGEMENT (PROCESS INVOLVE)
CLOSING PROCESS

➤  Completion and hand over stage

 At this stage, it is important to review the project’s performance on time, budget,
team performance, quality related problems and also to complete all the
necessary reports, audits and paper works.                                                                    
(CCC + HO + LD + DC [as-built & etc.])
It will be beneficial to use this information to learn from the project and utilize
this information to ensure continual improvement in future projects. 

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OBJECTIVES

WITH GOOD CUSTOMER RELATIONS

The objectives of
construction project
management is to
TIME COST
make sure that the
project completion on
time, within cost, RESOURCES

required quality of
standards and meets
the client’s needs and PERFORMANCE

requirements. 

Overview of Project Management (Harold

Kerzner, 2006) 

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OBJECTIVES

OVERVIEW OF PROJECT
MANAGEMENT (HAROLD KERZNER,
2006)

The objectives of figure is to show that project management is designed to

manage or control company resources on given activity, within time, within cost,
and within performance. 
Time, cost and performance are the constraints on the project. If the project is to
be accomplished for an outside customer, then the project has a fourth constraint:
good customer relations. 
Performance is sometimes replaced with quality.

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INDICATORS OF A SUCCESSFUL PROJECT MANAGEMENT

A project must be defined in terms of time, budget or cost, quality and

performance specification of the project. These are the main four basic
performance indicators to measure the success of the project. 
Nowadays, there are other performance measures such as safety, functionality
and satisfaction which are also included to measure the success of a project
through a set of Key Performance Indicators (KPI) (Chan and Chan, 2004). 

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INDICATORS OF A SUCCESSFUL PROJECT MANAGEMENT

Project success are related to project objectives; hence the Key Performance
Indicators to measure the success of a project are:
Costs 
Time 
Quality 
Health and Safety 
Environmental Performance 
Profit and Commercial Value 
Team Participation Satisfaction 
User or Client’s Satisfaction

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INDICATORS OF A SUCCESSFUL PROJECT MANAGEMENT

THE MAJOR PROBLEMS ENCOUNTERED

IN MANAGING PROJECT: 

1.  INADEQUATE RESOURCES
2.  UNREALISTIC DEADLINE
3.  UNCLEAR GOALS OR DIRECTION
4.  TEAM MEMBERS UNCOMMITTED
5.  INSUFFICIENT PLANNING
6.  COMMUNICATION BREAKDOWN

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INDICATORS OF A SUCCESSFUL PROJECT MANAGEMENT

According to Sariwati, Sodri and Ahmanul (2007), the success of a project is still
determined by these factors:

The project scope or work scope: The work must be done within the
prescribed work scope set by the customer and that the deliverables meet the
customers’ requirements or acceptance criteria.
The project cost: The project cost is based on a budget that includes cost
estimates associated with all the various resources that will be used to
accomplish the project. The cost of the project is the amount that the
customer is paying for the project and its deliverables.

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INDICATORS OF A SUCCESSFUL PROJECT MANAGEMENT

According to Sariwati, Sodri and Ahmanul (2007), the success of a project is still
determined by these factors: (cont)

The project time schedule:  The time schedule specifies when each activity
should start and finish. To achieve the project objectives, it is important to
develop the time schedule plan before the start of the project; and this plan
should include all work tasks, associated costs and time estimates to
complete all the activities till project completion. 
Customer satisfaction: The main responsibility of a project manager is to
ensure that the customers are satisfied. A project manager must execute
good planning and communication skills to resolve problems, and to minimize
its impacts on the achievement of the project objectives and assuring
customer’s satisfaction.  

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INDICATORS OF A SUCCESSFUL PROJECT MANAGEMENT

According to Sariwati, Sodri and Ahmanul (2007), the success of a project is still
determined by these factors: (cont)

Achieve the business objectives and smart goals: To create project goals, it
have to be specific, and measurable in terms of time and costs, achievable
where every team member agrees to these goals and realistic in terms of
costs, resources and time management. 
Good management support with high commitment and active team
involvement throughout the phase of the project.
An experienced project manager with good leadership, communication and
human skills. 

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 SUMMARY

PLANNING
INITIATING
 PROCESSES 
PROCESSES

EXECUTING
PROCESSES 

CONTROLLING
PROCESSES

CLOSING
PROCESSES

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ACKNOWLEDGEMENTS
Janidah Eman (UiTMPP)
Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
REFERENCES
Chitkara, K. K. (2014). Construction Project Management. Tata McGraw-Hill
Education.

Harris, F., McCaffer, R., Edum-Fotwe, F. (2013). Modern Construction Management

(7th ed.). Wiley-Blackwell.

Knutson, K., Schexnayder, C. J., Fiori, C., Mayo, R. E. (2009). Construction

Management Fundamentals (2nd ed.). McGraw-Hill.

Peterson, C. (2013). The Practical Guide to Project Management. Bookboon.

Additional Notes: 
Peterson, S. (2012). Pearson’s Pocket Guide to Construction Management.
Prentice Hall. Chapter 7: Introduction to Construction Management.
Introduction to Project Management
Project Management Handbook (2006)
CONTENT DEVELOPERS
 TOPIC 4
CONSTRUCTION
PROJECT
LIFECYCLE 
LESSON OUTCOMES (LO)
At the end of this module, students should be able to:
Understand the definition and concept of construction
project lifecycle. 
Understand and explain the phases and construction
project lifecycle using RIBA plan of work;
i.    Inception Phase / Pre-Construction Phase.
ii.  Construction Phase.
iii. Completion Phase / Post-Construction Phase.
 Definition & Concept

PROJECT LIFECYCLE DEFINITION

The steady progression of a project from its beginning to
its completion.
 (Project Management Institute, 2000)

PROJECT LIFECYCLE CONCEPT

The lifecyle of a project is divided into phases and then
into stages. However, some phases of most projects
involve iterations to a greater or lesser degree
depending on the type of the project.  
(Royal Institute of British Architect (RIBA), 2000)

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 Definition & Concept

PROJECT LIFECYCLE (PLC) CONCEPT 

RIBA Plan of Work

INCEPTION PHASE (Pre-Construction Phase) comprise of:

a)  Pre-Tender Phase
b)  Tendering Phase
c)  Awarding of Contract Phase (to the successful contractor)
(IN TOPIC 5)
DETAILED OUT
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CONSTRUCTION PHASE

COMPLETION PHASE/Post-Construction Phase

Three main phases and construction PLC using RIBA Plan of Work
 Associate Drawings (PLC) CONCEPT 
 Pre-Tender Phase

}
•  Conceptual drawings (normally prepared by an architect)
•  Preliminary drawings (various amendment)

Tendering Phase INCEPTION PHASE

(Pre-Construction
•  Tender Drawings
Phase)

Awarding of contract to the successful contractor Phase

•  Contract drawings

}
Construction Phase
•  Construction drawings (endorsed by architect/engineer) with
CONSTRUCTION
input from shop drawings PHASE
•  Shop drawings (prepared by sub-contractor, endorsed by
consultant)

COMPLETION

}
Completion Phase/Post-Construction Phase PHASE
(Post-Construction
•  As-Built (after construction completed)
Phase)
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 Definition & Concept

TWO WAYS OF
LOOKING AT PLC 
BY PROJECT
PHASE (ADAMS
AND BRANDT,
1983): 
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Managerial actions 
 Tasks accomplish
 Definition & Concept

MCGRAW-HILL COMPANIES (2000):

Various stages in PLC based

percentage completion (M.
Featherstone, Jacksonville
University)  
Various stages in PLC based on level of effort  

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 Construction Phase

CONSTRUCTION PHASE:
Detail out of project planning and execution inclusive of
monitoring and controlling the project.
Converting idea from designers’ plans and specifications to the
physical structures or facilities within controlling the time, cost
and quality. 

CONSTRUCTION TEAMS:
Including Project Manager Team, Specialist in design level, Main
Contractor, Sub-contractors and Suppliers. 

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 ( )
DETAILED OUT IN TOPIC
10 FOR SITE
ORGANIZATION

GENERAL
FLOWCHART OF
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CONSTRUCTION
PHASE
 Construction Phase

PERFORMANCE BOND AND INSURANCES

The successful contractor in the joint names of the government has to

deposit certain amount of money to Superintending Officer (S.O.) together
with the following documents before they are allowed to gain site
possession:

a)  Performance Bond / Security Deposit 

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b)  Work Insurance 

c)  Public Liability Insurance 
d)  Workman Compensation
e)  Registration with SOCSO

Notes: Items a) to e) refer to PWD 203A for detail explanation

 Construction Phase

 PERFORMANCE BOND/SECURITY DEPOSIT

Definition:
Paid by cash, treasury deposits, banker’s draft or insurance guarantee from approved
bankers. The sum is equal to 5% of the contract sum. It shall be held or remain valid for
the period of (construction period + defects liability period + 3 month 14 days).

The objectives: 
Deposit for loans ‒ The security deposits serves as security against the
materials or plant and machinery delivered to site; which on behalf of the
contractor, the bank had paid to the supplier.  
Punishment ‒ In case the contractor does not complete the work in time, use
inferior quality materials or left the work incomplete, the security deposit is
forfeited as a punishment to the contractor and in view of getting
compensation of the damages done by the contractor to the owner. 

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 Construction Phase

CONTRACTOR ALL RISK INSURANCE POLICY

(C.A.R.) 

C.A.R. can be accepted to replace Work Insurance and Public Liability

Insurance provided it is concern to the same requirement. C.A.R Insurance
Policies covers everything except damage due to:-

War, invasion, act of foreign enemy, civil war, rebellion, mutiny, riot and
civil combination. 
Nuclear reaction and radiation. 
Willful act or negligence of the insured. 
Cessation of works when total or partial.

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 Construction Phase

PERMISSION TO START THE WORK 

Contractor required to seeking permission from relevant Local Authority
for activities below:- 
1.  Start site clearance  and earthwork.
2.  Hoarding construction.
3.  Temporary building construction.
Contractor should apply utilities connection from relevant agencies or
departments.
To ensure the site in good condition, safety and free from any
environment pollution, contractor is required to liaise with
authority/agency enforcing the environment and safety regulations such
as DOE, CIDB, NIOSH and etc.  

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 Construction Phase

COMMON DRAWINGS IN CONSTRUCTION

Contract drawing
Drawings embedded in the contract document with stamping imprint with the
words of “CONTRACT DRAWING” for all discipline as per agreed in early
tendering stage by consultants namely as architecture, structural, civil,
surveyor, mechanical and electrical. 
Useful as a reference for any misunderstanding during the construction stage. 

Construction drawing
Design drawings that have been approved by the responsible parties
(consultants) for construction stage usages. 
 Attached with the detailing and subjected to revision if any change has been
made by responsible parties. 
 The drawing is imprint with the stamping words of “CONSTRUCTION
DRAWING”. 

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 Construction Phase

COMMON DRAWINGS IN CONSTRUCTION

(CONT)

 Shop drawing 
Consists of drawings, schedules, diagrams, and other related data to illustrate
a material,   a product,  or a system for some portion of the work not clarified in
the Construction drawing or counter proposed detail design from contractor,
subcontractor, manufacturer, distributor or supplier.
Compulsory to seek design approval from relevant external consultant before
it is able to be used for construction after permission from existing consultant.
 

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 Construction Phase

Site Meeting
To coordinate site activities, monitor

CONSTRUCTION contractors’ performance and discussion on

construction issues in order to complete the
PROGRAM VS. PROGRESS
job as planned in Construction Program. 
REPORT 
Consist of Technical Site Meeting, Progress
Meeting. 
Construction Program
Prepared by main contractor before Progress Report
start of work to monitor the Monthly conducted to measure work
construction progress.  progress either AHEAD or DELAY.   
In form of bar chart and attached DELAY progress lead to frequent site
together with the milestone meeting (twice a month and followed by
completion for each WBS.   once a week) before any termination
contract take over.  

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 Construction Phase

PROFESSIONALS TASKS AND PAYMENT MATTERS 

 Important tasks of responsible parties (consultants) in construction:

Make visits to the works in connection with the detailed design brief.
Provide permanent site consultant staff to carry out the design intended.
Provide further information reasonably required for construction (RFI).
Ensure important documents such as Site Diary, clients’ approval, EI, AI and
etc. are implemented on site. 
Review design information from contractors or specialists.
Provide drawings showing the building and main lines of infra-services and
other information for the Health and Safety documentation.
Certify the work done within the time required.
Clarify and certify the VO and EOT if any.
Give general advice on operation and maintenance of the building.

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 Construction Phase

PROFESSIONALS TASKS AND PAYMENT MATTERS

Important payment matters during construction are as follow:

Responsible parties (lead by QS) together with contractors should conduct

site measurement and only allow completed work able to be claimed by main
contractor. 
Interim certificate should be issued by competent QS to Main Contractor
within time required.
Ensure progress payment (Interim Payment) will be paid by client on time as in
contract conditions to main contractor.
Main Contractor shall release Interim Payment to Sub-Contractor (SC) and
Nominates Sub-Contractor (NSC).

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 Completion Phase/Post-Construction Phase

GENERAL
FLOWCHART OF
POST-CONSTRUCTION
PHASE 
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 Completion Phase/Post-Construction Phase

MAIN ACTIVITIES AND IMPORTANT DOCUMENTS INVOLVE

IN COMPLETION PHASE:
Final Inspections
Certificate of Practical Completion (CPC) 
Certificate of Completion of Making Good Defects 
Certificate of Completion and Compliance (CCC) 
Hand Over 
Final Account

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 Completion Phase/Post-Construction Phase

FINAL INSPECTION
Before the S.O. is able to issue CPC, there is a final inspection conducted to identify
any defects for completed works.
Include the comments from relevant authorities starting from design stage to the
project completion.
Also include inspection for utilities/infrastructure such as water reticulation,
sewerage and drainage systems. 

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 Completion Phase/Post-Construction Phase

FINAL INSPECTION
Testing and Commissioning conducted within certain periods or times to fulfill the
function and safety. The facilities or services involves are as bellow:
•  Plumbing – pressure test, etc. 
•  Fire Fighting System – Active and Passive 
‒  Active include sprinklers, pump and etc. 
‒  Passive include fire extinguishers, passage ways and etc. 
•  Lift System – Motor room, lift system, etc. 
•  A/C System – chillers, pumps, temperature, air balancing, etc. 
•  Electrical System – continuity and insulation test, lamps, gen-set. 

 After final inspection and Testing and Commissioning completed, S.O. will then issue
Schedule of Defects to the main contractor within 14 days to resolve/improve during
Defect Liability Period (DLP).

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 Completion Phase/Post-Construction Phase

CERTIFICATE OF PRACTICAL COMPLETION (CPC) 

S.O. shall issue CPC to Main Contractor by stating the date of completion based on
agreed DLP and attached together with Schedule of Defects. 
The issuance of CPC means the starting of DLP. 
 With the issuance of CPC, Main Contractor shall prepare the documents below:
‒  As-Built Drawing 
‒  Compilation of Quantitative and Qualitative Records.
‒  Warranty roducts 
‒  Final Claim  

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 CERTIFICATE OF
Completion Phase/Post-Construction Phase
PRACTICAL
COMPLETION (CPC) 
Compilation of Qualitative
As-Built Drawing  and Quantitative Records 
Including as built drawings for piling, Qualitative records include measurement
sanitary and cold water and etc. It is and observations of works related to the
pictorial record of all the works quality and behavior under test such as
completed, showing the whereabouts and result of compression tests (cube test),
dimensions of all parts as they exist at piling test, soil test and etc. 
completion, their operation as described Quantitative records include measuring
in the instruction manual and their of work done with the time and rate
performance under tests.   stated, together with all relevant
particulars including piling record, Claim
Warranty Products 
Evaluation, Progress/Interim Payment
Warranty products are such as warranty
and etc. Warranty Products 
for water proofing, painting, roofing and
etc.

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 Completion Phase/Post-Construction Phase

Final Claim 
The Main Contractor shall submit the Final
CERTIFICATE OF
Claim (include all variations) within 3 months
PRACTICAL affected from issuance of CPC to enable S.O.
COMPLETION (CPC) prepare the Final Account.
(CONT) After issuance of Final Claim, the contractor
shall not claim for any money.  

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 Completion Phase/Post-Construction Phase

 CERTIFICATE OF COMPLETION OF MAKING GOOD DEFECTS

At the end of DLP, S.O. shall issue Certificate of Completion of Making Good
Defects to inform all client that defects in Schedule of Defects have been corrected
by Main Contractor.    

 CERTIFICATE OF COMPLETION AND COMPLIANCE (CCC)

Start enforced in Peninsular Malaysia on 12th April 2007 to replace CF (Certificate
of Fitness). Additional forms implemented which are forms G1 till G21. Current
detail forms are available in ACEM/BEM main web sites.

 HAND OVER
The issuance of CCC approval means the readiness of structure or facilities hand
over to client and ready for public usages. 

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 Completion Phase/Post-Construction Phase

 FINAL CERTIFICATE

Within 3 months from the issuance of Certificate of Completion of Making Good

Defects, S.O. shall issue the Final Certificate stating the amount due to the
contractor or from the contractor to the government. Any dispute shall be referred
to the Normal Court of Law or Arbitration.    

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 PROJECT LIFECYCLE:

i.     Inception Phase/Pre-Construction Phase

ii.   Construction Phase
iii.  Completion Phase/Post-Construction Phase
SUMMARY

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ACKNOWLEDGEMENTS

Janidah Eman (UiTMPP)

Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
 REFERENCES
Chitkara, K. K. (2014). Construction Project Management. Tata McGraw-Hill
Education.

Knutson, K., Schexnayder, C. J., Fiori, C., Mayo, R. E. (2009). Construction

Management Fundamentals (2nd ed.). McGraw-Hill

Levy, S. M. (2012). Project Management in Construction (6th ed.). McGraw-Hill.

Ritz, G. J., Levy, S. M. (2013). Total Construction Project Management (2nd ed.).
McGraw-Hill Education.

Additional notes:
Pellicer, E., Yepes, V., Teixeira, J. C., Moura, H. P., Catalá, J. (2013). Construction
Management. Wiley-Blackwell. Chapter 1: Organising Construction Processes in
Construction Companies, Chapter 15: Project Closeout.

The Management of Construction: A Project Life

Cycle Approach (2003)
CONTENT DEVELOPERS
TOPIC 5
CONSTRUCTION
PROJECT INCEPTION
LESSON OUTCOMES (LO)
At the end of this module, students should be able to: 
Understand and explain the works and procedures
in construction project inception:
i.    Pre-Tendering Phase.
ii.   Tendering Phase.
iii.  Awarding of Contract.
 INCEPTION PHASE DIVIDED INTO CONCEPTUAL
(PHASE 1) AND PLANNING (PHASE 2)

Managerial Actions Tasks Accomplish

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 Phase 1: Conceptual (Identify a need)
Preparation of written document by Client to invite Project
Manager (developer/consultant/contractor) to provide the
best problem solutions for needs stated in the RFP
document or TOR document.

Phase 2: Planning (Development of a Proposal)  

Preparation of documented proposals by Project Manager to fulfill the
needs of RFP document or TOR document with specifying the intended
solutions, tasks, costs, time and other resources.

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awang295@[Link]

Associate drawings

3 main activities involved:- INCEPTION PHASE

Briefing and report (Pre-Construction Phase) 
(Identification and definition) 
Design (Designing, costing and
approving)                             Pre-Tender Phase 
Procurement (Documenting, - Conceptual Drawings (prepared by architect) 
tendering and awarding - Preliminary Drawings (various amendment) 
contract)  l
Tendering Phase
PROCUREMENT DETAIL WILL BE Tender Drawings 
COVERED IN TOPIC 7 ON
PROJECT DELIVERY SYSTEM
l
Awarding of Contract Phase (to the
successful contractor)
Contract Drawings 
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Pre-tendering
phase 
General flowchart of
Pre-Tendering Phase
 Needs and Objectives of the Project  
DETAIL EXPLANATION IN TOPIC 6 

Detailed Project Brief  

Definition
The project (verbal or written) brief submitted by Client to the Project
Manager (traditionally an architect for building works and civil
engineer for civil engineering works) in a form of Request for Proposal
(RFP) or Term of Reference (TOR). 
A written project brief is a document stating the needs, objectives, land
site (lot number), surrounding facilities, progress up-to-date and all
relevant facts about the project.  

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 Conceptual Drawings
Based on RFP, the architect shall produce the conceptual drawings for
consultant engineers to work on detail engineering and design. 
The building illustration by architect shows the overall views of the
project including elevations, views and cut-sections of the building. 

Planning Execution 
Planning execution includes tasks as follow:
i.    Management and Coordination
ii.   Design
iii.  Construction
‒  Supervision 
‒  Method of Construction 
‒  Approval from Authorities 

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 Planning Execution 
Management and Coordination
A representative on behalf of Client  responsible to coordinate the
activities of those engaged in the design on construction of the project
and also lies between the management. 
Preferably an architect or civil engineer. 
Employer decide either to delivered the project by Turnkey Contract or
Traditional Contract.

(PROJECT DELIVERY SYSTEM WILL BE

COVERED IN DETAIL IN TOPIC 7)

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 Planning Execution 
Design
Execute based on type of Project Delivery System implemented as
follow: 
–  Use-in house technical team – Turnkey contract                                
–  Employ consultants – Traditional Contract 
Two main phases of engineering and design:                                                       
–  Preliminary                                                                                      
–  Detail  

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 Planning Execution 
Design: Preliminary Engineering and Design
Emphasize on architectural concepts, evaluation of technological process
alternatives, size and capacity decisions and comparative economic studies.
The steps evolve directly from the concept and feasibility stage, and it is
sometimes difficult to see where one leaves off and the other begins.
In heavy construction, engineers are responsible for the preliminary design,
but they often need substantial input from geologist, hydrologist, and
increasingly from ecologist and other professionals in the natural sciences.
In construction industry, it involves input and output decisions, choices
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between basic process alternatives, general site layout, and preparation of

overall process flow sheets.
Once this Preliminary Engineering and Design are complete, there is a
general and extensive review before detailed work is allowed to proceed.
Extensive review would be different for private work which is the review
focuses mainly on seeking approval from higher levels of management and
from sources of external financing, where required. 
 Planning Execution 
Design: Preliminary Engineering and Design (cont)
Traditional realm of design professionals, including architects, interior
designers, landscape architects, and several engineering disciplines, including
chemicals, civil, electrical, mechanical.
Involving the process of successively breaking down, analyzing , and designing
the structure and its elements so that it complies with recognized standards of
safety and performance while rendering the design in the form of a set of
explicit how to build the structure in the field. 
The design professional often conducts detailed field studies to get good
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engineering information on foundation conditions, slope stability and

structural properties of natural materials.
Other activities:
–  Paper work and specifications. 
–  Prepare design scheme, including cost. 
–  Bill of Quantities. 
–  Estimate final cost. 
–  First manufacturing program including the schedule of construction work. 
 Planning Execution 
Construction: Supervision of Construction Works 
➤  Supervision of construction works are  executed based on type of Project            
     Delivery System implemented as follow:
Use-in house technical team – Turnkey contract
Employ consultants – Traditional Contract  
Construction: Method of Construction  

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 Planning Execution 
Construction: Authorities Approval 
Before commencement of any construction, all the design and construction
method adopted must first receive the approval from the local and federal
authorities: i.e. all designs must comply with the building-laws of the following
authorities;
Municipality / City Council.
JPBD (Jabatan Perancangan Bandar raya).
JKR (Jabatan Kerja Raya). 
JBA (Jabatan Bekalan Air).
JPS (Jabatan Pengairan dan Saliran).
JAS (Jabatan Alam Sekitar).
JPP (Jabatan Perparitan dan Pembetungan) – IWK.
TNB (Tenaga Nasional Berhad).
Telekom.
Public Health Department.
Fire Fighting Department.
Factory Act for Machinery Department. 
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 Feasibility Study (FS) and Site Investigation (SI) 
WILL BE COVERED IN DETAIL IN TOPIC 6 ON SITE SELECTION
FS reveal on objective, business and technical point of view in order to help
Client to make decisions on planning and execution of the project.
SI is a detail investigation based on FS and emphasize more on the
economical and technical factor in order to help Client minimize the cost
within design and safety optimizations  .

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 Preliminary Drawing 
Initial plans for projects prepared by the designer or architects and
engineers firm during the early planning or promotional stage of the
building development.
These drawings are NOT intended to be used for construction, but they are
used for exploring design concepts, material selection, preliminary cost
estimates, approval by the customer, and as a basis for the preparation of
finished working drawings.  

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awang295@[Link]

TENDERING PHASE
General flowchart of
Tendering Phase

Tendering System (Open,

Close & Negotiate Tenders)
WILL BE COVERED IN DETAIL IN
TOPIC 8.
 Tender Document and Tender Drawings 
TENDER DOCUMENTS
The project viability study shall be carried out for the last time before the
tender documents are produced.
The purpose of tender document is to give description of work and site
condition to enable the contractor work out viable plan of operation.
There shall be two definitions for a tender document: 
–  Tender document produced by consultant shall be defined as written  
     matter as a mean of defining the scope of a proposal from the owner    
     to the contractor for pricing of items during tendering stage (usually     
     consist of Bill of Quantities, Drawings and Condition of Tender).
–  Tender document submitted by contractor shall be defined as                  
     a written matter as a mean of defining the scope of an offer from the    
     contractor. 

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 Tender Document and Tender Drawings 
TENDER DRAWINGS
Design drawing that need to be used for tendering stage and should be
attached with tender document.
Consists of architectural, structural, mechanical and sanitary,  and
M&E services drawings. 
TABLE TENDER DOCUMENT (TTD)
TTD is a drawing showing all particular details of layout drawing such
as type of material, sizes of structures (foundation, column, beam slab
and trusses), fitting services and etc.
Available in a paper A3 size and imprint with the words “Table Tender
Document”.

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 Contractor Considerations Bid/Not To Bid
for the tenders 
Contractors need to be realistic about their ability to prepare
proposals and the probability of winning the contract.
In order to offer the client with competitive price and service, the
factors as follow shall be recognized:

Extension of Reputation
Capability
Competitiveness/
Competition

Client funds
Factors whether to bid or
not to bid for the project

Risks Proposed
Resources
Mission

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 Contractor Considerations Bid/Not To Bid
for the tenders  
Competitiveness/Competition
To seek out whom are the other contractors bidding for the project.
To find out whether these contractors have a competitive advantage
through earlier projects or assignment or having affiliation with the
customer. 
Risks
To identify risks on the project viability and success.
To ascertain the uncertainties and technological barrier.
To ascertain whether research and development need to be carried out
on the feasibility of the project. 
Mission
To access whether the project is in line with the company business
mission and core areas. 
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Contractor Considerations Bid/Not To Bid for the tenders  

Extension of Capabilities
To decide whether the proposed project will provide the contractor
with an opportunity to enhance its expertise and capabilities. 
Reputation
To decide whether the organization has a good reputation and
relationships with the customer, such as established close rapport and
good successful records on past projects with the customers.
Review past documents on how many times the contractor bid for the
same organizations and was unsuccessful.   
Client Funds
To find out about the clients funds and financial credibility for the
project.   
 Proposed Resources
To ascertain whether the contractor has the right amount and quality
of resources to bid for the project.
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 Contractor Considerations Bid/Not To Bid
for the tenders  
IMPORTANT OF HAVING SITE VISIT
NO CLAIMS CAN BE MADE DUE TO ADVERSE SITE CONDITION THUS
CONTRACTORS MUST CHECK FOR THE FOLLOWING POINTS: 

Access to Site
Ground
Condition Availability
of Services
Factors whether to bid or
not to bid for the project
Environment
Local Labor

Accommodation
 for Staff  Local Suppliers 
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Contractor Considerations Bid/Not To Bid
for the tenders  
IMPORTANT OF HAVING SITE VISIT

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 Scrutiny the Tenders 
After opening the tenders, the tenders should be scrutinized. Tender Report
Things that need to be checked: Structures
List of all tenders received along with detail of the Earnest The 1st report is the tabular statement of
Money (Tender Deposit). tenders which consists of:
It should be checked that the contractors duly signs every • Name of tenderer, class and status
necessary pages in Tender Document.  • Tender Sum (before correction of any
The address of the contractor should be clear and complete. arithmetical error)
Verification of the contract conditions should be done.  • Construction period (time of completion) 
Whether the contract condition is original or alteration has
been done.
Rates are written in words as well as figure or not. Both
should be the same. When different, then the lower should be
considered. The 2nd report, same as 1st report,
The calculation and amount stated by contractor (arithmetic except for:
error) should be carefully checked. • Name of the contractor not listed
• The list of tender will be listed in
*After proper scrutiny: ascending price order
The comparative statement of all the tenders should be • The lowest tender will be at the top,
prepared the highest tender price will be at the
Signed by all persons present at the time of opening tenders bottom of the list  

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 Tender Evaluation Process
Coordinated by tender committee and contract department and lead by a secretary.
Secretary responsible to coordinate all parties on date, time and place of opening
tenders.
A tender committee comprise of the technical committee that looks into the
specifications, construction method, resources and etc., while commercial committee
will looks into the price and costing aspects of the project.
Stages involve in tender evaluation are as shown below: 

Tender Evaluation Process

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STAGE 1: Preliminary Evaluation

STAGE 2: Evaluation of Tenderer's Capacity

STAGE 3: Overall Evaluation of the short listed tenderer

 Tender Evaluation Process
STAGE 1
This stage evaluate on conformity with the tender requirement.
To ensure tenderer submit compulsory documents which are:                                                          
 
‒  Copy of Company Balance Sheet                                                                                                            
‒  List of current contracts that the tenderer need to submit, if not the tenderer will be                
    disqualified.
Satisfactory performance of current works.
Only tenderer who pass stage 1 will be assessed in the next stage.
STAGE 2
The factors below are used to assess the tenderer’s capacity to perform the works. 
Financial Capacity - based on minimum capital requirement 
Technical Capability - evaluation based on tenderer’s experience to perform similar nature
of works, technical personnel and plant. 
STAGE 3
This stage carries out the overall evaluation of the shortlisted tenderers and determination
of the most beneficial tender for recommendation. 
All records are to be kept private and confidential and it is unethical to reveal any
organization information of the tenderer to participating competitors. 
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 Tender Evaluation Process
Criterias need to be considered by Client and Consultants during tender
evaluation are summarized as follow: 
Environmental
Price
Issues
Provision of
Quality
Training

Financial
Standardization
Standing
EVALUATION TENDER
(Based on
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Insurances  Tender Document

and Specifications Inspections

Technical
capability Warranties

Performance 
Capacity Experience
Standards
 Awarding of Contract
General flowchart for awarding of contract

Awarding Phase

Recommending tenders

Awarding of contract to the successful contractor,

contract documents with contract drawings were
produced

Continue to Construction Phase

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Awarding of Contract 
Recommending Tenders 
Open tender committee will recommend a few (say, 3) short-listed tenders, but only
one contractor will be awarded with the contract except for a mega project. The
important criteria recommendations in selecting contractor are as follow;        

Financial
Background

Paid-up
Tender Sum Capital
Factors when considering
contractor for the project

Construction
Equipment Period
Technical Knowledge 
& Experience
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 Awarding of Contract
Recommending Tenders
Tender Sum
Wherever possible the lowest tender sum shall be recommended. BQ in tender allow
checking the cost of each item. Some contractor will quote higher price for the early stage
job i.e: preliminaries, site clearing and foundation. As contractors are being paid as they
constructed will allow them to collect great profit margin up to sub-structure work and then
abandon the project.

Financial Background/Cash Flow

Those poor financial background contractors may have difficulties in managing their cash
flow. Even with the lowest tender price, the contractor might abandon the project.  

Paid-Up Capital
Paid-Up Capital concern with the possibility of bankruptcy. To enable recovery from
bankruptcy is based on the assets and Paid-Up Capital. Depending on the project size,
contractor should have reasonable Paid-Up Capital to decease possibility of bankruptcy.
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 Awarding of Contract

Recommending Tenders
Construction Period
Wherever possible contractors offer the shortest construction period should be accepted,
but shortest construction period normally does not align with the tender sum and may
avoiding SOP. 

Technical Knowledge and Experience

Previous experiences carried out on similar type of construction will help contractor to
predict the possible problem that will be faced during the construction process.  

Equipment
Contractor possess the equipment shall run the job better than if they were rented. Some
equipment may be hard to rent during peak season. 

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 Awarding of Contract

Recommending Tenders 
Other factors:
Contractor’s qualification
Construction method
Contractor’s previous project track record
Contractor’s office and site management skill
Knowledge about surrounding (environment aspects)
Integrity background
Insurance and warranty
Performance (workmanship) 

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 Awarding of Contract

Post-Tender Negotiation & Awards 

Post-Tender Negotiation  
There are some condition on negotiation before awarding (formal agreement) to meet the
client or his adviser needs. Normally, the matters discussed are mainly on financial,
contractual and method. Matter discussions are as follow: 
The matters discussed are more on financial contractual and method.
Any errors or discrepancies in the bill of quantities can be resolved at the meeting and
contractual detail can be discussed and agreed by both parties to understand their
obligation before making a formal agreement.
The contractor should be represented by the estimator and senior construction staff.
The list of client’s representatives and advisers are important. Estimator must avoid the
situation where he alone enters a room where all the consultants and clients’
representative are assembled confidently expecting to get the best deal for the client.
The client must have confidence and believe that the contractor can carry out the work
with a willingness to solve a problem and work closely with the client’s team at all times.

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 Awarding of Contract

Post-Tender Negotiation & Awards

Awards
Only one contractor will be awarded with the contract.
However, for a mega project or large scale project may be awarded to several contractors
and coordinated by government representatives (or project management consultants).
The succeed contractor and the owner shall sign the contract document prepared by
consultant as the contract agreement between them.
A contract document is used as a mean of defining the scope of work for reference during
construction until completion phase.  

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awang295@[Link]

summary
Construction project inception involve several phases
as follow:

Pre-Tender Phase
•  Conceptual drawings (normally prepare by an architect)
•  Preliminary drawings (various amendment)

Tendering Phase
•  Tender Drawings

Awarding of contract to the successful contractor Phase

•  Contract Drawings
ACKNOWLEDGEMENTS
Janidah Eman (UiTMPP)
Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
 REFERENCES
Fellows, R.,  Langford, D., Newcombe,  R., Urry, S. (2002). Construction
Management in Practice (2nd ed.). Blackwell Science Ltd.

Fisk, E. (2002). Construction Project Administration (7th ed.). Prentice Hall.

Harris, F., McCaffer, R., Edum-Fotwe, F. (2013). Modern Construction Management

(7th ed.). Wiley-Blackwell.

Knutson, K., Schexnayder, C. J., Fiori, C. M., Mayo, R. E. (2009) Construction

Management Fundamentals (2nd ed.). McGraw-Hill.

Levy, S. M. (2012). Project Management in Construction (6th ed.). McGraw-Hill.

Additional notes:
Project Initiation and Planning
Project Management The Future Challenges
Procurement guidelines for tender preparation, evaluation and award of contract
Tendering Methods in Construction
CONTENT DEVELOPERS
 TOPIC 6
SITE SELECTION 
 LESSON OUTCOMES (LO)
At the end of this module, students should be able to:
Understand the definition and urgency of Feasibility Study
and Site Investigation in site selection during Pre-Tendering
Phase.
Understand and explain the factors governing Feasibility
Study.
Understand and explain the factors governing Site
Investigation. 
 SITE SELECTION
Site selection and land acquisition is crucial when the client does not own
the site desired to be developed. This matter should be undertaken as
early as possible, ideally, in parallel with feasibility studies. This work may
be carried out by a specialist consultant.

The key to the process is ensuring that the requirements for the site are
properly defined and that the selected site meets these requirements
within the constraints of the project programme and with minimal risks to
the client.

FEASIBILITY STUDY - A PROPOSAL PREPARED BY A PROJECT MANAGER OR

ARCHITECT/CIVIL ENGINEERING/PROJECT MANAGEMENT, OR CLIENT IN-HOUSE STAFF TO
DETERMINE THE VIABILITY OF A PROJECT SITE, FROM THE VIEWPOINT OF PROJECT
OBJECTIVE, BUSINESS AND TECHNICAL WITHOUT INVOLVING SITE MEASUREMENT /
TESTING.

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 FEASIBILITY STUDY

Objectives of
the project 

Factors governing
Feasibility study 

Technical point Business point

 of view  of view 

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 OBJECTIVES OF THE
PROJECT 
The client must define the need and
objectives of the project in the project
brief.
Sometimes money/expenses is not the
priority compare to the need of the
project.
Examples: Project of infrastructure for
people (such as school, public hall and
etc.), flood disaster area, landslide disaster
area and etc. 

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 FEASIBILITY STUDY

Land Financial
Valuation  Study 

Business Point of View

Market
Risk Analysis  (Economic)
Analysis 

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 BUSINESS POINT OF VIEW
Land Valuation – The owner/client needs to assess the
current value of the proposed land and decide whether to
acquire/buy the land. 
Financial Study – Then, the owner/client has to prepare
budget and forecast the cashflow of the project for the
items as follow:
‒  Pre-Development Cost
‒  Infrastructural Cost 
‒  Preliminaries
‒  Construction 
‒  Sales Revenue 
‒  Profitable Return 
‒  Cashflow

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 BUSINESS POINT OF VIEW
Market (Economic) Analysis
The owner/client has to identify potential buyer, carry out
the market analysis and determinewhetherf the percentage
of profit margin is worthwhile to proceed the project or not.
Concerned with the supply and demand situation and also
the country’s economic market situation (discuss further in
class for current situation). 

Risk Analysis
Usually carried out together with the market analysis.
Purpose is to make known the liability should the project fail.
At the same time, it encourage the owner/client to work
towards success. 

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 FEASIBILITY STUDY

Site Visit 
Preliminary
Preliminary
Layout Plan 
Investigation

Technical Point of View 

Accommodation for staff 

Technical Site Local suppliers or Sub-contractors availability
Material, Plant and Labor availability
Suitability Mode of Transportation to the site 
Factors  Services (water, electricity, telephone) availability 
Environment
Flood Level (if any) and existing Drainage System 
Topography  
Site Investigation   
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 TECHNICAL POINT OF VIEW
Site Visit 
Preliminary investigation 
After preliminary investigation, site
The study without going to the visit shall be carried out to determine
site, i.e. study on map/drawing the following matters: 
/report from local authorities Physically location and present use
such as land office, district of the land
office, resident office, Site topography and existing
municipal/city council office, drainage
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JKR, JPS, TELEKOM and etc. Distance from town center

The purpose is to obtain Population of the area
information on land status, Economic activities of the area
current and future development Surrounding
plan for the desired site and development/industrial commercial
surrounding, services available, residential squatter
access road, etc.    Accessibility - gravel laterite or
pre-mix 
 TECHNICAL POINT OF VIEW
Preliminary Layout Plan 
Shall be prepared based on development concept.
Include infrastructure, access, facilities and etc. so that economic
assessment can be executed; to determine the feasibility of project.

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 TECHNICAL POINT OF VIEW
TECHNICAL SITE SUITABILITY FACTORS

1. Accommodation for staff (contractor responsibility) 

Contractor has to build quarters for accommodation of staff if it
is hard to rent or the site is located in remote area. 

2. Local suppliers or Sub-contractors availability  (contractor

    responsibility)
Availability of local suppliers or sub-contractors can reduce the
price of sub-contracting.  

3. Material, Plant and Labor availability (contractor responsibility)

If they are available locally, it would ease the construction while
reducing the cost.  

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 TECHNICAL SITE SUITABILITY FACTORS

4. Mode of Transportation to the site (contractor responsibility)

A good access road to the site is important for the purpose of
transportation, i.e. bringing in and out materials, plant and labor.
Will reduce the cost of transporting materials, plant and labor.
Save/reduce the time of travelling.
Lower the maintenance cost of contractors’ vehicles.
If the condition of existing road is poor or if it is in remote area,
contractors have to create temporary road access.  

5. Services (water, electricity, telephone) availability  

Services available will reduce the contribution cost and construction
cost. 
Available services or in close proximity will reduce contribution cost
to TNB, JKR, or Telekom and construction cost will be cheaper due to
length shorten for services/facilities involved.

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 TECHNICAL SITE SUITABILITY FACTORS

6. Environment 
The surrounding may affect the project feasibility. A remote area
is normally not suitable for a housing scheme. On the other hand,
the project will affect the surrounding.
Interfacing with human activities include components like soil,
rock, water and geologic hazard (flooding, erosion, slope failures
and subsidence).
Understanding on these geological components are important so
that the construction activities can be carried out according to the
adopted designs with minimal impacts on the geological
environments. 

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 TECHNICAL SITE SUITABILITY FACTORS

7. Flood Level (if any) and existing Drainage System 

Identify whether the proposed site is located on the low lying area
or in the vicinity of flood prone area or was flooded before.
 Historical records for rainfall, king tide, flood level, flood prone
areas are available at MMD and JPS. In addition, with the assistant of
sophisticated software nowadays the flood simulations are available
at MMD for certain areas. In order to determine whether a site has
been flooded before, we may look for;   
‒  Estuary or nearby river affected by high tide
‒  Swampy vegetation- e.g. water lily
‒  Tall tale sign-e.g. dirty marks of some level in trees and buildings
‒  House design-e.g. stilts houses along the river side.
‒  Availability of transports during flood
e.g. sampan or asking local peoples (last alternative)

The existing and project drainage scheme for flash flood or flood
mitigation shall be checked. These existing drainage systems record/
as-built are available at JPS, JKR, district office, resident office and
municipal/city council office.  
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 TECHNICAL SITE SUITABILITY FACTORS

8. Topography 
Available hard/soft copy of topography map are available at Survey
Department Malaysia. This map provide information on contours
level, elevations, river, facilities and etc.
Site topography map can be used to determine the volume of earth
to be cut and/or filled, the location (storage) of resources, building,
and services; the temporary access and etc.   

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 SITE INVESTIGATION
Site Investigation is a study to examine the suitability of the
site in terms of physical properties, geological and
geotechnical materials properties (soils, rocks and geological
structures) and the environment aspects in order to meet the
standards with the most economical layout for the proposed
site location.

  Standards here means, the construction are economy, safe,

and meet the design standard and local authorities
requirements.    

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GEOLOGICAL & GEOTECHNICAL
Geotechnical Engineering is the branch of Civil Engineering that
concerned with the engineering behavior of earth materials. It includes
investigation on existing subsurface conditions and materials; assessing
risks posed by site conditions; designing earthworks and structure
foundations; and monitoring site conditions, earthwork and foundation
construction.
Engineering Geology is the ‘application’ of the geologic sciences in
engineering practice for the purpose of assuring that the factors
affecting the location, design, construction, operation and maintenance
of engineering works are recognized and adequately provided.
Engineering Geologists investigate and provide geologic and
geotechnical recommendations, analysis, and design. Engineering
Geologic studies may be performed during the planning, environmental
impact analysis, and construction phases of public and private works
projects, and during post construction and forensic phase of projects.

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 Factors  governing
Site Investigation

Economical Technical
Factor  Factor 

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 ➤  Development Cost
Compare cost of any similar project in the area
nearby, and study if the project is worthwhile. 

➤  Transportation Cost
Economical
Poor transportation may increase the contract sum
Factor 
due cost of transportation for materials, labours and
equipments.   

➤  Utilities and Services Cost

Contribution cost and construction cost for new
utilities and services are to be included in contract
sum. 

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 ➤  Ground Water Level (G.W.L.) 
Ground water presence need to be identified, and
the level of corrosiveness must be examined.
Ground water level may be determining the type of
foundation to be used. 

Technical ➤  Flood Level (if any) and existing Drainage System      

Factor        (MITIGATION)
The pattern and quantity of runoff shall determine
the drainage system based on pre-development and
post-development analysis.
Confirmation on collecting data during FS to provide
mitigation actions in order to avoid/reduce/control
the flash flood/flood caused by the proposed
development itself.

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 ➤  Location of Existing Services (water pipe, electrical cable
     and etc.)   
The existing services underground must be seriously
assessed to avoid disturbance or damaging to
existing underground services such as water pipe,
sewerage pipe, electrical cable, telephone cable and
etc.
Usually any existing services will be mapped on plan
Technical using sophisticated detectors equipment.  
Factor 
➤  Marine Effect  
Structures on the shore, i.e. wharf and jetty, are
subjected to environment marine effect.
The tide of water encourages sea water attacks against
the structural elements (reinforcement); as there are
periodic supply of air, saltwater (from the sea), and
heat (from sun).
As a result, structure may fail during service due to
corrosion problem. 
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 ➤  Site Survey  
Boundary stone for the site must be determined to ensure
the construction is on the exact location.
If available topography survey is incomplete or not
consistent, additional survey is required before detailed
design stage.
Data survey includes TBM, contour line, elevation, spot
Technical level, existing features on ground and etc. It is useful to
Factor  determine the volume of earth to be cut and/or filled, to
assign the location (storage) of resources, building, and
services; the road access and etc. 

➤  Soil and Sub-Soil Condition Survey 

Soil samples (disturbed/undisturbed) may be obtained
from site by numerous method of soil samplings.
Laboratory testing is conducted to obtain the necessary
parameters for detail design purposes such as foundation
design, allocating of structures (buildings, services) and etc.

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 ➤  Environment  
Interfacing impacts the ecosystem and surrounding
area to minimize direct and indirect impacts on the
Technical geological environment.
Factor  Samples Studies frequently conducted are as follow:
1. Environment Impact Assessment (EIA)
2. Traffic Impact Assessment (TIA)
3. Social Impact Assessment (SIA)

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 METHOD OF SITE INVESTIGATION
Method of Site Investigation (SI) can be grouped into 2 types, i.e. Surface
and Sub-Surface Method. The need depends on the type of structures to
be constructed and other factors as follow;

Stage of investigation
Condition and topography of the site
Amount of information required
Allocated fund
Accessibility
Availability of materials required for the investigation (e.g. water for
flushing in drilling) 

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 METHOD OF SITE INVESTIGATION
➤  Limitations:

Geologic conditions are complex and varies as well as subjected to changes

with time.
The limitation of SI will occur when it is not possible to identify all of the
critical aspects of geological conditions, regardless of the
comprehensiveness of the investigation.
Consequently this would require incorporation of conservative measures
into the design and construction to avoid unsatisfactory results.
Case study and past experience on similar geological environment will
facilitate in planning which is the most reliable and informative in SI work.
In addition, allocated fund may be not sufficient for detailed and
comprehensive investigation on a given area. 

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METHOD OF SITE INVESTIGATION
➤  Some of SI methods are:
Desk study of previous records publications Sampling taken either
Trial pits from disturb or
Soil electrical sensitivity probe kit undisturbed samples.
Land survey Generally, reports are
Auger boring divided into 2
Wash boring categories namely
Rotary drilling preliminary and
Constant Rate Penetrate Test detailed investigation
Mackintosh probe test report.
Maintain Load Test
Satellite image and topographic maps
Seismic wave propagation (reflection) and seismic effect (reflection) 

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 SUMMARY

COMPARISON BETWEEN FS & SI

Factors governing Feasibility Study;
i.   Objectives of the project
ii.  Business point of view
iii. Technical point of view

Factors governing Site Investigation;

i.  Economical Factor
ii. Technical Factor

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ACKNOWLEDGEMENTS

Janidah Eman (UiTMPP)

Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
 REFERENCES
Clayton, C. R. I., Matthews, M. C., Simons, N. E. (1995). Site Investigation (2nd
ed.). Blackwell Science.

DOE, (2011). Site Selection Criteria and Evaluation Handbook. Department of

Education, State of Alaska.

Merritt, F. S., Ricketts, J. T. (2001). Building Design and

Construction Handbook (6th ed.). McGraw-Hill.

Rodney, O. (2007). Feasibility Studies Made Simple. Martin Books.

Additional notes:
The Site Selection Guide
Site Selection Considerations
CONTENT DEVELOPERS
Topic 7
Tendering System 
Lesson Outcomes (LO)

At the end of this module, students should be able to:

Explain Open, Closed and Negotiated Tender.
Compare the three types of tender.
Understand Earnest Money / Tender Deposit.
 Introduction
Tendering is the separate commercially based function that uses
estimation of cost as a basis upon which the final price is determined and
submitted to the client for approval.
An OFFER incorporates with sum of money, time and other conditions
required to carry out the contract obligations in order to complete a
project or part of it which consists of specified works.
Tender Notice is a formal written offer to offer a job or request services in
return for a stated amount of money and by a stated date. It is an
advertisement displayed publicly by the organization to inform and
request interested contractors, suppliers or firms to carry out a project, or
to cater equipment or services for the organization. Generally the tender
notice in Malaysia is publicized in local mass media, both Malay and
English newspaper in the advertisement columns and also the electronic
media such as the internet or e-commerce/e-business.

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 Purposes of Tender Notice

The purposes of Tender Notice includes: 

To inform interested parties that there is a job tender to be offered.
Invite qualified parties to take up the offer and provide services.
To sell the Tender Document.
Inform the Client’s specification for the job.
Tender Document will inform part of the information in Contract
Document at the later stage.

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 Contents in Tender Notice

The name of the customer’s organization and its logo in the Tender
Notice. 
The word “Tender Notice or Invitation of Tender”, and its tender number
and references.
Tender qualification or pre‒qualifications:
‒  Eligibility criteria on whom should participate in the tender.
‒  Contractors are registered with bodies such as Pusat Khidmat                  
    Kontraktor (PKK), Ministry of Finance (MoF) and government  agencies    
    such as Public Works Department (PWD) or Jabatan Kerja Raya (JKR),        
    MARA, Tenaga Nasional or SIRIM.

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 Contents in Tender Notice

Tender Description is the scope of the project and the outline of the
tasks or scope of work the customer wants the contractor to perform or
deliver.
Tender document fees (Purchased by the Contractor)
Modes of payment (cash, bank draft, banker’s cheque, money order,
bank guarantee)
Date and time details availability of Tender Document
Request for site visit (compulsory before the purchase a Tender
Document). 

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 Contents in Tender Notice

Submission of tenders and address ‒ specify the closing dates and time
for tender and the address to submit the Tender Document.
Clause of indemnity ‒ the Client is not bound to accept the lowest bidder
or quotations nor to assign any reason for the rejection of any tender nor
it will be responsible for any costs incurred by the tenderers. 

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Earnest Money (Tender Deposit)

Amount that accompanies the tender form while submitting the tender, in
which usually based on the sum of total estimated work (Construction
Cost)
Tender Document without Earnest Money shall not be scrutinized (only
parties who shows that they are really interested will pass the first stage)
Deposit is refunded to unsuccessful tenders.
Three reasons why Earnest money is required are to restrict unnecessary
competition and to act as a punishment and compensation.

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 Punishment

In case the contractor who is awarded with the project has no intention of
proceeding the work, the Earnest Money shall be forfeited by the
Owner/Client as a punishment to the contractor. 

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 Unnecessary
Competition

If no Earnest Money collected, unnecessary competition may be started.

Those contractors who do not have any solid financial position to
complete the work will submit their tenders at low rates, which will
caused great difficulties in the completion of works.
Thus the provision of Earnest Money will restrict the unnecessary
competition so that only the financial sound and genuine contractors
are capable of submitting their bids.

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 Compensation

In case the contractor is awarded with the work refuses to proceed, the
work can be allocated to other contractor.
The Earnest Money shall compensate the owner to a certain extend.

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 Scheme of Work-Tender

Only for teaching

reference only,
TABLE TAKEN FROM
PREVIOUS PROJECT
HANDLED BY
CONTENT
DEVELOPERS.

Note:
Most of the Open and Closed Tenders are subjected to tenderers interview. 
  
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awang295@[Link]

Tender Notice Example

Contents in Tender
Document

Tenderer/Company Profile
Tender Form 
Working Standard Specification 
BQ (Bill of Quantities) 
Project Drawings 
Schedule of Rates 
Letter of Acceptance

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TENDERER/COMPANY PROFILE

Form specification for tenderers to give  out particulars about

their registration  as a contractor to PKK/UPK, or CIDB,
 company organization, details of completed, any on-going
project and etc.  

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 Tender Form

Contract terms, is the tenderer's written offer to construct,

complete and maintain work in accordance with other details in
the Contract Form.
It is usually included in the Tender Form given and incorporates the
contract period, tender sum, insurance,  Liquidated and Ascertained
Damages (LAD), period of  maintenance @ Defect Liability Period (DLP)
and etc.
Bidding price included is only early estimation, not fixed. It also does
not have signature from Client, yet.
PWD 203 is the contract term used in Malaysia.
Contract based on BQ – PWD Form 203A. (DETAIL IN TOPIC 10)
Contract based on Drawings and Specification – Lump Sum Contract –
PWD Form 203.

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 Working Standard
Specification 
Amplifies the information given in the contract
drawings and BQ.
Describes the detail of proposed work to be
executed under contract, nature and quality of
material to be used etc.
It helps to determine scope of work and allows
contractor to decide on the methods.
Standard specification for general scope of work
(ex. soil works, concrete work, pipes, drainage
etc.)
Extra specification for specific work (ex. land
reclamation, dredging) 

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Bill of Quantities (BQ) 
Gives detailed information of required works to
be done and quantity of materials to be used.
Consists of schedule with brief descriptions of
work to be carried out,  with quantities entered
for each item.
Contractors only need to quote the unit rate
and required to name the price without
calculating the exact quantity from Drawings and
Specification.
Offers a mean by comparing all previous
tenders submission received. 

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Bill of Quantities (BQ) 

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 Contract/Engineering
Drawing 
Drawings are needed by tenderer to get
overview of type and scope of work to estimate
fees and material cost for progress claim and
plan the work to be done.
They should be prepared sufficiently in detail
to enable tenderers satisfactorily understand the
requirement of the project.
For contract based on drawing and
specification, complete plan is required to be
given to tenderer.
Drawings should be complete, anything that is
not explained should be written in the plan.
Complete drawings incur additional payment
cost for the contractor.

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 Schedule of Rates 

Contain rate for work executed by

contractor (for contract based on drawings and
specification).
Schedule of Rates for appointed tenderer will be
adjusted and negotiated upon before the
schedule is included as a part of contract
document.
A specific Schedule of Rates is upon request.

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Labour Rates and
Construction
Materials Price

All rates for construction

work contained in this
schedule are based on labor
cost and materials price as
follows:
(Price or price rate is not
inclusive of overhead cost
and contractor's turnover)

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awang295@[Link]
Tender Acceptance Form

To inform contractor that the Client has received

the submitted tender.

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 ‘Ganging-up’ of Contractor/
Cost Syndicate 

“Gang-up” - a group of contractors who know that they are the only
tenderers invited to tender for the project. 
The idea is to raise the tendered prices above the normal price of that
specific project so that the additional profit will be shared among all
tenderers. 
To avoid ganging-up of contractors, the consultant:
‒  Should not disclose the detail of tenderers.
‒  Prepare their own estimation on tender sum/price.
‒  Retender should they feel necessary.

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Examples:
Assume that 5 contractors united for a Closed Tender and agreed among
themselves that contractor B should be awarded the project, which is estimated
to be RM 10 million inclusive of profit. They will quote the following pricing: 

Obviously contractor B will be awarded the project at RM12.5 million which is

RM 2.5 million above the normal price of RM 10 million. Then the money will be
divided equally of RM 0.5 million among the 5 contractors. 

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 Types of Tender/
Tendering Method

i.    Open Tender
ii.   Closed Tender
iii.  Negotiated Tender 

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 Open Tender

Owner of a project invites all qualified

contractors to tender for the project.
Through advertisements in newspapers or
journals.
If the project are big enough, there will be no
restriction on who can participate the tender
as long as they are qualified. 

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 Advantages of Open
Tender
Lesser possibility of contractors ‘ganging-up’ to
quote higher tender sum/price for the project.
Give a chance to new and inexperienced
contractors to bid for the project.
Tender shall be very competitive, thus it is
possible to get the lowest tender sum/price.

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Disadvantages of Open
Tender

Unknown number of tenderers makes it difficult

to estimate the quantity of Tender Documents
need to be prepared, unused documents will
end up as a wastage.
There is a risk that the contract may be awarded
to an unscrupulous contractor.
Tender valuations consume a lot of time; it may
delay the commencement and also completion
of works. 

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 Closed Tender

Also known as Selective tender. It is hardly

practiced in public sector, but not in the private
sector.
Normally open to contractors with reliable
reputation and experience or those who had
previously carried out satisfactory works to the
Owner/Client.
Through telephone or any available media,
consultant (engineer) invites some contractors 
who are qualified to participate in the tender. 

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Advantages of Closed
Tender
Normally up to 10 tenderers (contractors) are
invited; then the exact number of Tender
Document copies will be prepared. Hence, no
wastage of extra copy.
As the contractors performance were based on
their previous record, financial, experienced and
equipment's, thus a good quality of works shall
be produced (expected).
Suitable for a special project which require
efficiencies, experiences and skilled contractor.
Lower possibility of project delay as tender
valuations consume lesser time compared to
Open Tender.
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 Disadvantages of
Closed Tender
Officers inviting tenderer can be accused of
being biased.
Tender price may be higher than it should be, as
other qualified tenderers (contractors) are not
invited to participate in the tender.
Possibility of contractors “ganging-up/cost
syndicate” to quote for higher tender price.
No opportunities to the new and inexperienced
contractor to get involved in the job. 

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 Negotiated Tender

An alternative to Open Tender and Closed

Tender.
Only 1 contractor is invited at a time, followed by
discussion and direct negotiation for the
construction programme, construction method,
form and conditions of contract, contract sum,
and etc. 

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 Negotiated Tender
It is most applicable for:
Project to be carried out urgently where
Tender/Contract/Construction Drawings are
still in the process.
A highly special circumstance, such as
contractors who:
‒  Has performed successfully for the owner on
    previous occasion. 
‒  Is specialized in the types of work to be            
    undertaken (e.g. dam construction).
‒  Has special knowledge and experience of the
    site (e.g. contractors for the restricted armed 
    force area and have carried out the job           
    satisfactorily).

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 Advantages of
Negotiated Tender
Only 1 Tender Document is produced, thus no
wastage.
As the contractor’s performance is based on the
previous record, financial, experienced and
equipment's, there is no possibility of delaying
the project.
Only 1 contractor is invited; which is simplifying
the procedure.
Normally a good quality of works is expected.
Suitable for a special project which require
efficiencies, experiences and skilled contractor.  

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 Disadvantages of
Negotiated Tender

Officers inviting tender can be accused of being

biased.
Tender price may be higher, as other qualified
tenderers who may be able to quote lower price
are not invited to quote.
No vacancies of work or job opportunities for a
new and inexperienced contractor. 

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 Summary
TENDERING METHOD depends on suitability of
the project desired. 

Open Tender

Close Tender

Negotiate Tender

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Acknowledgements
Janidah Eman (UiTMPP)
Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
 References
Garisan Panduan Penilaian Tender (Edisi Januari 2008). (2008).  Bahagian
Perolehan Kerajaan Kementerian Kewangan Malaysia.

Harris, F., McCaffer, R., Edum-Fotwe, F. (2013). Modern Construction Management

(7th ed.). Wiley-Blackwell.

Murdoch, J., Hughes, W. (2008). Construction Contracts Law and Management (4th
ed.). Taylor & Francis.

Ritz, G. J., Levy, S. M. (2013). Total Construction Project Management (2nd ed.).
McGraw-Hill Education.

Additional notes:
Pellicer, E., Yepes, V., Teixeira, J. C., Moura, H. P., Catalá, J. (2013). Construction
Management. Wiley-Blackwell. Chapter 2: Contract Documents.

Successful Tendering Guide The Tender Process

Tender Process
Content Developers
TOPIC 8

PROJECT DELIVERY SYSTEM,

PRINCIPLES LAW OF CONTRACT
AND
TYPES OF CONSTRUCTION
CONTRACTS
TOPIC 8

LESSON OUTCOMES (LO)

At the end of this module, students should be able to:

Explain Project Delivery System (Traditional, Turnkey and other types of
contract practice in Malaysia.
Understand contract application in construction projects.
Explain the concept and basic principles of construction contract.
Distinguish different types of construction contracts (Price and Cost
Based System).
INTRODUCTION

Project Delivery System and Procurement

Project Delivery System refers to a method used in implementing the project and
the parties involved such as Owner/Client and professional members (architect,
engineers and QS) in construction project. It is the overall processes by which a
project is designed, constructed, and/or maintained.
Procurement is the action of obtaining or procuring something and buying goods
such as materials and equipment. It is the process of finding, agreeing terms and
acquiring services or works from an external source, often via a tendering or
competitive bidding process to ensure the buyer receives goods, services or
works at the best possible price, when aspects such as quality, quantity, time, and
location are compared. 

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 PUBLIC PROCUREMENT STRATEGIES

Procurement of Public
Assets and Services

Conventional Public-Private Partnership

Public ector initiates, (PPP)
designs, finances, owns, Public and Private Sectors
operates, maintains; work in partnership (PPPs)
contractor constructs or to deliver public assets and
design and constructs services
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Method Method
Traditional, also knows as Design- Funding arrangement through
Bid-Build concession agreement between
Design-Build/Turnkey the public sector and the private
Management based. i.e. either sector:
Management Contracting or ‒  Privatization
Construction Management ‒  Private Finance Initiative (PFI)

(Khairuddin, 2008) ‒ Private Finance Initiative (PFI): Concept and Method of Procurement for
Construction Projects (with Specific Reference to Malaysia)
CONVENTIONAL PROCUREMENT

Conventional Procurement Options

Method of project delivery

Among the approaches are :-
1) Traditional Contract 
2) Turnkey (Design and Build) Contract
3) Construction Management
4) BOT (Build, Operate Transfer) 

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TRADITIONAL CONTRACT

General Flowchart of Traditional Contract

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TRADITIONAL CONTRACT

Characteristics of Traditional Contract

Design and construction are separated.

Consultant/Designer (architect, architect/ engineer, or engineer) will be
employed by Owner for preparing a design and Contract Documents:
‒  Negotiated professional fee for design services
‒  Fixed price (Lump sum), unit price, guaranteed maximum, or cost plus a        
   fixed construction contract = BQ take president 
Then, the Main Contractor (MC) will be employed by the Owner for
construction via competitive bid or negotiate tender.
Construction supervision and inspection of the work is coordinated by a
Project Manager (PM) appointed by Owner (who is normally the Consultant
on behalf of the employer)  

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TRADITIONAL CONTRACT

Advantages of Traditional Contract

FIX CONTRACT SUM

The traditional method is a known quantity to owners, designers and
constructors. The procedures and contractual rules of conduct have been
worked out and are well understood. 

SEQUENTIAL FUNCTION

Many professionals prefer this well defined relationship, which reduces

uncertainty. This means that a project is more likely to proceed smoothly from
beginning to end. 

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TRADITIONAL CONTRACT

Advantages of Traditional Contract

DOCUMENTED DESIGN AND SPECIFICATIONS 

The mode also contains considerable contractual protection for the Owner. The
allocation of risk for construction performance rests almost completely on the
contractor and the subcontractors.

COMPETITIVE TENDER

The open bidding procedure, in which the lowest bidder is the ‘winner’ gives
the owner the lowest price available in the marketplace and presumably the
greatest, economic efficiency.  

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TRADITIONAL CONTRACT

Disadvantages of Traditional Contract

The  construction professional does not enter process until the design is
completed, meaning that the design is not usually reviewed for constructability
before it is finished due to problems as follow; 
‒  More responsibility to coordinate and check on the project by Client (PM).  
‒  Additional work for investigation required, when there is design and                    
    supervision problem occur.
‒  Risks in claims against owner in design faults.
The traditional approach is difficult to reduce the time required to do both
design and construction. 

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TRADITIONAL CONTRACT

Typical Traditional Procurement programme for

a 12 month project 

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TURNKEY CONTRACT

General Flowchart of Turnkey Contract

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TURNKEY CONTRACT

Characteristics of Turnkey Contract

Also well known as Design and Build (D&B) Contract.

Design and construction is NOT separated.
The owner hires a contractor who undertakes the entire responsibility of the
project (Design + Construction + Commission).
Consultant/Designer (architect, architect/ engineer, or engineer) will be
employed by the MC.
Some Owner might hire a Project Management Consultant (PMC) to act as
advisor to them.

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TURNKEY CONTRACT

Advantages of Turnkey Contract

SAVE TIME
The Owner is less heavily involved and sits outside the direct day-to-day
communication between designer and constructor. 

DESIGN LIABILITY BY MC
This keeps owner staffing to a minimum and puts the full responsibility for
good communication, problem solving, and project delivery on design/ build
team. THEREFORE:
‒  Design and supervision problems, it is contractor responsibility.
‒  No claims against Owner for design faults. 

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TURNKEY CONTRACT

Advantages of Turnkey Contract

WORK PROGRESS AHEAD

Good communication and collaboration between the designers and the
construction professionals allows construction input early in the design
phase, therefore the project is easily to be fast tracked, cutting down on
overall schedule for the project.  

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TURNKEY CONTRACT

Disadvantages of Turnkey Contract
SUB-STANDARD WORK 
Sub-standard work (lower quality) are rarely occur due to factors as follow; 
‒  Owner control lesser on the design and specification of the project.
‒  Designer works for the same company as the builder.
‒  Lack of checks and balances, which MC doing in-house design.  

HIGH CONTRACT PRICE

The main contractor will charge more than actual contract price in line with the
factors as follow; 
‒  Consultant’s fees for additional responsibility and risk on design and                      
    supervision.
‒  Any real pricing is not possible. Instead, an owner usually enters this                      
    arrangement with a conceptual budget but without the guarantee of a firm          
    price. 

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 COMPARISON

COMPARISON OF TRADITIONAL CONTRACT & TURNKEY CONTRACT

MERITS
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DEMERITS
PUBLIC-PRIVATE PARTNERSHIP

What is PPP?

Public-Private Partnership is a cooperative arrangement between one or

more public and private sectors, typically of a long term nature of
relationship.
It is when a government agency enters into a working relationship with a
private entity to deliver public infrastructures and/or services.
It involves a long term development and service contract between the
government and private partner.

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 PUBLIC-PRIVATE PARTNERSHIP

A Focus efficient
performance- allocation of risk, whole
based life service approach,
PPP
procurement private sector
model which innovation and
optimize management skill.
value for
money.
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Long term Synergies from

partnership linking design,
between public and finance, build and
private sector. operate.

(Ahmad Zamri Khairuddin, 2010) ‒ Public-Private Partnership in Malaysia Development

PUBLIC-PRIVATE PARTNERSHIP

Goals and Key Objectives of PPP

Use government resources to attract private investments.

Improve efficiency in service delivery.
To work together in delivering infrastructures or public services
successfully.

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PUBLIC-PRIVATE PARTNERSHIP

PPP Approach

1)  Private sector contribution:

     i.   Support Financial Investment
     ii.  Improve Technologies
     iii. Efficiency in Service Delivery

2)  Public sector contribution:

     i.  Financial gap funding to make projects commercially viable - reduce 
         the  upfront  capital  costs  of pro-poor  private infrastructure
         investments by  providing  grant  funding  at  the  time  of  financial 
         close,  which  can  be  used  during construction.
     ii. Providing institutions support guidance and regulations.

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 PPP, PRIVATIZATION AND PFI

PPP ‒  Government works

hand in hand with the
private sector

Privatization Private Finance Initiative

Government owned (PFI)
agencies sold-off to the The delivery of public assets
public and services using private
sector funding and
expertise.
Method
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Corporatization
Management contracts
Method
BLT
Service Sold
BOT
Financially Free Standing
BOOT
Joint-Venture
BOO
DBFO

(Khairuddin, 2008) ‒ Private Finance Initiative (PFI): Concept and Method of Procurement for
Construction Projects (with Specific Reference to Malaysia)
 PRIVATIZATION

What is Privatization?

Privatization means allowing profit-making corporations to take over the duties that
have been performed by public agencies. This means the government will contract out
work to private companies that previously was performed by public employees.

The objectives are to: 

- Cut costs 
- Provide a workforce with specialized skills
- Give financial incentives for managers to work harder

Issue: Faced with tight budgets, many sees privatization as a quick fix. But in the long
run, privatization often ends up costing taxpayers more, while putting private profit
ahead of the public interest.

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PRIVATE FINANCE INITIATIVE (PFI)

What is PFI?

Alternative public procurement strategy. 

Relates to the delivery of public assets and services that in the past were
the realm of the public sector, using private sector project financing and
expertise. It uses private sector capacity and public resources in order to
deliver public sector infrastructure/services according to a specification
defined by the public sector.

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PFI & PRIVATIZATION

Differences between PFI &

Privatization 

Privatization seemed to favor the utility and transport sectors and on

selected services of local governments.
PFI encompasses much wider economic sectors. The utility and transport
sectors, education, health, housing, public buildings and infrastructures.
  

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PFI & PRIVATIZATION

Differences between PFI &

Privatization (cont.) 

Unlike privatization, PFI requires that  

‒  The private sector must genuinely assume risk.

‒  There should be competition where government facilitates a project  
    or seeks a private sector partner or purchases service as customer.
‒  The initiative would not only apply to infrastructure projects but also  
    to any other capital investment  providing service to the public.  

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PRIVATE FINANCE INITIATIVE (PFI)

Projects That Are Suited For

Implementation Of PFI

Long-term stable project: A significant part of the benefit of private

finance projects comes from the whole life approach to contracts that
last for 25‒30 years. For example, school.
Size and complexity: A project where the requirement can be clearly
specified at the outset and which are of the size that the private sector
company can take on their balance sheets.
Extending the reach of private finance: Private finance could be used
in other areas particularly in the provision of services.

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PRIVATE FINANCE INITIATIVE (PFI)

Advantages of PFI

Benefit of project to owner, concessionaire and public in many ways:

As alternative procurement strategy.
Strategic partnering for future development.
Risk transfer valuation to the party that is able to limit and control them.
Challenges to integrate innovation in their project.
Provide contract and project management experience.
Improve interaction of all parties at onset of the construction project.

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PRIVATE FINANCE INITIATIVE (PFI)

Disadvantages of PFI

High costs are usually incorporated when tendering for PFI projects.
Agreements are brought through complex negotiations where the
attitude of government, supportive or otherwise, may either ease or
complicate the problems.
The cost of finance is considerably high, given that government is able to
make loan less than that of private firms.
There could be disparity problems between the private and public sector
in terms of differing modes of operations, decision making and
accountability.

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PFI IN MALAYSIA

PRIVATE FINANCE BEAUTY

INITIATIVE (PFI) It should be aesthetically
PROJECT (2006-2010) pleasing.

UTILITY
It should be suitable for the
purposes for which it is used.

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BASIC PRINCIPLES OF CONSTRUCTION CONTRACT

Contract

Basically a contract is an agreement, which is composed of an

offer and an acceptance.
Agreement is a statement (oral or written) of an exchange of
promises. 
In a written contract, no party can deny in agreeing to the terms.
While in a verbal contract (oral), the injured party may deny in
entering into any agreement or ‘ganging-up’ with witness to
deceive the other party. 

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DEFINITION AND CONCEPT

Definition

According to the Commercial Law of Malaysia, the word ‘Contract’

is defined as an agreement between two or more parties that is
legally binding between them.
A Contract is an agreement between the Contractor, who
agrees to provide a product or service (deliverables), and the
Client, who agrees to pay the contractor a certain amount in
return.
A contract is an official document  that becomes a medium for
establishing a good Client-Contractor communications and
ensure the project success. 

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DEFINITION AND CONCEPT

Definition (cont.)

In drawing a contract, they must ensure that all terms, conditions

and pricing are stipulated and leave nothing open ended.
It is an advantage to state a specified amount of deposit as it will
lead to a better chance of securing the award and financial
commitment. 

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DEFINITION AND CONCEPT

Concept

There are 4 elements to form a legal contract:  

1.  The principles of a contract which include an offer, an acceptance,

     and consideration.
2.  Validity of Contract.
3.  The reasons a contract is considered illegal.
4.  The way an agreement without valid consideration may become    
     valid.

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CONCEPT OF CONTRACT

1. Principle (Offer & Acceptance)

An agreement is composed of an Offer and an Acceptance.

In order to see that a contract has been made, one party has to make
an Offer.
When a contractor tendered for a project accepting all the
conditions in the tender, that document is considered to be an Offer
from the contractor to carry out the construction of the project. 
Offer is an expression of willingness to contract on certain terms,
made with intention that it shall become binding as soon as it is
accepted by the person to whom it is addressed, known as “Offeree”.

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CONCEPT OF CONTRACT

1. Principle (Offer & Acceptance)

Expression referred is such as a letter, newspaper, fax, email and even

conduct, as long as there are communication in which the “Offeror”
(person who make an offer) is prepared to contract. 
A document said by one party might constitute an Offer although the
party putting forward does not use the word Offer.
An Offer must be distinguished from ‘an invitation to treat’, which is
referred to as a mere attempt to negotiate. 

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CONCEPT OF CONTRACT

1. Principle (An Invitation To Treat)

An Invitation To Treat is something by its nature is incapable of

being accepted binding without further negotiation.
An invitation to tender sent by the owner/client is an Invitation To
Treat rather than an 'Offer'. It does not bind the owner to accept the
lowest tenderer or any of the tenders received. 

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CONCEPT OF CONTRACT

1. Principle (An Invitation To Treat)

Example:

A shop owner displaying their goods for sale is generally making an

Invitation To Treat. They do not obliged to sell the good to anyone who is
willing to pay for them, even if additional signage or tag price such as
“Special Offer” accompanies the display of the goods.
Means that if a shop mistakenly displays a goods for sale at a very low
price, they not responsible to sell it for that amount.
Advertisement and auctions are considered as an Invitation To Treat.

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CONCEPT OF CONTRACT

Comparison between  ‘An Invitation

To Treat’ and ‘An Offer’

AN INVITATION TO TREAT AN OFFER

When Owner invites When Contractor response

contractors to tender, it is an to the invitation, it is
Invitation To Treat. considered as ‘an Offer’.
The terms are not definite in The tender price and
nature. construction period are
The Owner does not have to definite or firmed.
accept any tender (even An Offer can only be valid up
lowest). An Invitation To to the validity period. 
Treat can only be valid as
advertised.

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CONCEPT OF CONTRACT

1. Principle (Consideration)

Another essential element to the formulation of a contract is that the

agreement must be supported by Consideration.
Consideration ‒ It is anything of value promised to another when
making a contract. It can take the form of money, physical objects,
services, promised actions, etc. (something of value, such as money or
personal services, given by one party to another in exchange for an act
or promise).
In Civil Engineering contracts, the Consideration for the promise made
by the Contractor i.e. promise to carry out the work will usually be the
promise by the Owner to pay for the price 'offered' by the Contractor. 

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CONCEPT OF CONTRACT

1. Principle (Consideration)

Example:

1.  If A signs a contract to buy a car from B for RM50,000, A's consideration
     is the RM50,000, and B's consideration is the car.
2.  Additionally, if A signs a contract with B such that A will paint B's house  
     for RM700, A's consideration is the service of painting B's house, and B's
     consideration is RM700 paid to A. 

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CONCEPT OF CONTRACT

2. Validity of The Contract

Legally Competent Parties: Parties entering into the contract should be

legally competent i.e. signing officer should be in power to sign the
contract. 
Free Consent: For the contract to be legal, parties signing the agreement
must do so legally without being forced to and there must not be any
misstatement or misinterpretation to deceive any parties. In such cases
the defrauded party can avoid the contract and may also claim for
damages.
Contract Conditions According To Law: All conditions must be according
to the established local public policy and should put up a good example
on the morals of the society as a whole.  

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CONCEPT OF CONTRACT

3. Invalid/Illegal Contract

Contract for constructing a building without getting its plan approved

by local authorities.
Contract with the element of deceit such as illegal arrangement with
various contractors either not to compete (to create a monopoly) or
ganging-up in order to receive undue profit.
Contract not signed under free consent where it is done by fraud,
crime, by pressure, under influence etc.
Contract without valid considerations, involve the act or a promise to
do something by a party in relation to promise or giving interests or
money to the other party. Impossible promises or acts are not
entertained because this is not a valid consideration. 

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CONCEPT OF CONTRACT

4. Validity Of An Agreement Without

Valid Consideration

Consideration ‒ An agreement without consideration may be valid in

the following circumstances, which are based on the principles of equity: 

The agreement in writing.

The agreement must be registered in the registration of company office.
The parties must be in near relation with each other. 

Contract in Writing should be signed by both parties and by the authorized

persons. The exact names or legal titles of the parties must be indicated in
the signatories and the seal of public body will be fixed with the
agreement. 

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

In Malaysia context, these following documents are legally bind and form
as part of the Contract:

1.  Article of Agreement
2.  Contract Form
3.  Conditions of Contract
4.  Letter of Acceptance
5.  Contract Drawings
6.  Bill of Quantities
7.  Working Standard Specification
8.  Bank Guarantee/Performance Bond
9.  Insurance Guarantee

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

1. Article of Agreement

Article of Agreement is a binding document that needs to be signed by

both the Client and the Contractor to fulfill the promise in which there
exists an Offer and Acceptance as agreed by both parties.
ie.: It is the obligation of the Client to make payment upon completion of
the job and to liase with the Contractors on the job requirements. It is
the obligation of the Contractor to perform the job accordingly and
adhere to the requirements of the Client.  

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

2. Contract Form

Form of Agreement/Contract needed to be filled up between Owner and

Contractor for the execution of the project. 
Contain the basic rights and obligations of parties involved in the contract. 
Normally incorporated into Conditions of Contract to indicate participation
of contractor in the tender.
Contractor will state the price and duration to complete the work as agreed.
Possible to get less than price during bidding after amendment. Include
signature from Contractor, C&S, M&E, Client and witness.
Only the unit is included whereas item pricing is not included. Unlike in
tender, where it is compulsory to include price per unit and total sum.

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

3. Conditions of Contract

The Malaysian Government has an established standard form of

contract that all registered contractors in Malaysia have to comply with.
The Conditions of Contract stipulate all the rules, specific requirements
and details in the Contract.
General conditions define the terms under which the work is to be
carried out, the relationship between employer, personnel required at
site, employer and contractor, the duties of the contractor, authority of
the engineer, terms of payment and etc.
It is to promote the practice to use a standard Conditions of Contract
with adjustments where required to suit special conditions for a project. 

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

4. Letter of Acceptance

The Client issues the Letter of Acceptance of the tender to the

successful contractor.
Generally, the issuance of Letter of Acceptance and the Tender
Document legally binds the Client and the Contractor pending the
execution of the Contract Agreement (Article of Agreement) 

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

5. Contract Drawings

Ideally the drawings should detail the entire of contract work.

For many reasons this is not always practicable, but tenderers
(Contractors) must be given sufficient information to enable them to
understand what is the project requirement.
All available information on the topography of the site and the nature of
the ground should be made accessible to tenderers preferably by being
shown on the drawings.  

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

6. Bill of Quantities

The Bill of Quantities must be filled up with their quantity figures and
price. The bill should be priced so as to represent a reasonable amount
in the contract document as agreed.
The price stated is inclusive of provision, delivery, unloading, storage,
packing, carriage and cartage, hoisting all labour setting, fitting and fixed
position, use of plant, supervision, establishment charges, profit, labour
and everything else that is necessary for the due completion of the job. 

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

7. Working Standard Specification

The purpose of a Civil Engineering Specification is to instruct the

Contractor precisely regarding: 

‒  The construction method that he may or may not allow to use.

‒  The works that he has to carry out.
‒  The type and quality of materials and workmanship expected.

Note: If the Contractor is not able to comply to the specifications, or uses

materials or products which are different from the specifications, he needs
to seek and secure prior approval from the Client. 

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

7. Working Standard Specification

‒  Method Specification
Method Specification states or explains precisely equipment and
procedure to be used in performing the construction. 
Since everything is stated, if any damage occur the liability for
damages will be liable on the Owner/Engineer's side. 

‒  Performance Specification
Performance Specification or Result Specification only specify the
result to be achieved. 
Since the method is not specified, all the cost for any damages or
failure will be liable to the Contractor.   

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

8. Bank Guarantee/Performance Bond

The Contractor has to furnish the Client a Performance Bond (Bank

Guarantee) 5% of the contract sum and it shall be valid until the
Certificate of Practical Completion (CPC) is issued.
The Contractor has to furnish the money before start the project. If
Contractor fail to do so, then he cannot start the works.
Bank Guarantee is necessary to ensure that the contract  will be
implemented properly and provide protection to the Client.
If Contractor goes bankrupt or did not proceed the work, then the Client
may use this Bank Guarantee to compensate his loss. 

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CONTRACT DOCUMENT AND APPLICATION IN CONSTRUCTION PROJECTS

9. Insurance Guarantee

The Contractor has to furnish the Client's, an Insurance Guarantee for

workmen compensation and social security registration to give benefits
to the workers especially when they got involved with unwanted
precedence at site.     

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TYPES OF CONSTRUCTION CONTRACTS

There are many methods of awarding a contract available. The contract

practiced in Malaysia can be classified under 2 major headings such as:

Price Based System/Fixed Price Contract: 

1.  Lump Sum (LS) Contract
2.  Schedule of Rates (SoR) Contract
3.  Bill of Quantities (BoQ) Contract

Cost Based System/Cost Reimbursement Contract: 

‒  Cost Plus Percentage of Cost Contract
‒  Cost Plus Fixed Fee Contract
‒  Cost Plus Fluctuating Fee Contract
‒  Cost Plus Incentive Fee Contract

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TYPES OF CONSTRUCTION CONTRACTS

Price Based System/Fixed Price Contract:

In Priced Based System, contract sum is the prices being submitted by
the Contractor in his bid. It is also known as “Fixed Price Contract”.

Cost Based System/Cost Reimbursement Contract: 

In Cost Based System, contract sum is the actual cost incurred by the
Contractor and reimbursed together with fee to overcome overheads
and as profit. Also known as “Cost Reimbursement Contract”.
Include the cost of material, labour, supervision, equipment and other
items having residual value. He is also paid for his services in the
management of the work and as profit. 

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TYPES OF CONSTRUCTION CONTRACTS (PRICE BASED SYSTEM)

1.  Lump Sum (LS) Contract

A simplified form of contract where it is easy to manage since payment

is made only once.
The contract price is a fixed sum quoted by the contractor for the entire
works as specified in the contract documents, which is contains of the
drawing, specification and etc.
No individual rates are quoted for each item of work as detailed or
approximate quantities may not be issued with the form of tender.
As a rule, construction contractors are not entitled to receive more
money than what the contract specifies. 
In most cases, there is no provision to vary the contract price even if the
actual work executed differs in quantities from those on which the
tender was based.
However, there may be provision if the specified work is varied. 

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TYPES OF CONSTRUCTION CONTRACTS (PRICE BASED SYSTEM)

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TYPES OF CONSTRUCTION CONTRACT (PRICE BASED SYSTEM)

Examples of Project for Lump Sum Contract

Bridge 
Painting 
Guardrail 
Landscaping 
Lighting 
Sidewalks 
Signing 
Signalization 

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TYPES OF CONSTRUCTION CONTRACTS (PRICE BASED SYSTEM)

1.  Lump Sum (LS) Contract

Advantages:
Suitable for projects where later changes are not expected, and a simple
and quick form of payment is preferred.
Payments are made in stages, as identified in agreement form. For
example 10% of the contract price shall be paid upon the completion of
foundation stage.
No physical measurements need to be taken, general visualization is
sufficient.

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TYPES OF CONSTRUCTION CONTRACTS (PRICE BASED SYSTEM)

1.  Lump Sum (LS) Contract

Disadvantages:
If there is any change in the plans and or drawings, the value of the
change should be negotiated with the Contractor. This may cause delay
and sometimes disputes.
Lesser control of cashflow from point of view of the Owner. Sometimes
Owner has to pay more or sometimes less than the value of the actual
work completed.
There is no provision of payment for materials at site.  

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TYPES OF CONSTRUCTION CONTRACTS (PRICE BASED SYSTEM)

2. Schedule of Rates (SoR) Contract

There are two types:

The tenderer is issued with a document having the schedule of items,
prepared for a particular contract, where he is required to enter the
unit price or rate for each item. or;
The tenderer is issued with a printed schedule of price fixed by the
engineer. The tenderer may agree or quote a percentage above or
below the price printed in the schedule, for which he is prepared to carry
out the work of a particular project. 

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TYPES OF CONSTRUCTION ON CONTRACTS (PRICE BASED SYSTEM)

2. Schedule of Rates (SoR) Contract

For either type of schedule, it may or may not state the approximate
quantities to be  executed for each item of work.
The ‘contract price’ is thus determined by summing up the amounts
obtained, multiplying the respective quoted rates and actual quantity of
each item of work to be executed.
Provision for valuation on a day-work basis or otherwise is usually made
in this form of contract, in cases where the quoted rates are not
applicable.
A schedule listing the works with the rates will be provided for the
valuation of variations purpose.

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TYPES OF CONSTRUCTION ON CONTRACTS (PRICE BASED SYSTEM)

2. Schedule of Rates (SoR) Contract

This type of contract is chosen usually for urgent works, maintenance,

uncertain (piling) work, reinstatement work after a fire/earthquake.
The government does not prefer this method of contracting, because the
advantage of discounts on bulk buying by the executers of works cannot
be considered at the tender stage, since the volume of work is not
certain.
Furthermore, the executor has to base his quotations on actual market
price without discounts. In order to be competitive, he has to guess the
volume of work to be done. 

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TYPES OF CONSTRUCTION ON CONTRACTS (PRICE BASED SYSTEM)

2. Schedule of Rates (SoR) Contract

Advantages:

Variations in quantities are easily accommodated.

Owner will pay for the cost of work actually executed.
Experienced Consultant may be able to accurately prepare the schedule
of items. Experienced Architect or Engineer are able to forecast the types
of works and methods appreciate, thus prepare the schedule of items,
even before the design drawings and specifications are completed.
It saves time as no quantities shall be provided. 

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TYPES OF CONSTRUCTION ON CONTRACTS (PRICE BASED SYSTEM)

2. Schedule of Rate (SoR) Contract

Disadvantages:

Since only approximate quantity of work is known at tendering stage, it is

difficult to estimate the actual contract price, hard to plan properly the
contract programme and not easy to project the cash flow.
The quotations for the unit rates tend to be high. In the case of
rehabilitation projects or reinstatements works the executor of the work
cannot exactly estimate the type and quantum of the different items of
work to be replaced or repaired. Hence the quotations for the rates may
be high.
Contractors may quote at lower rates to be more competitive; which may
lead to financial problems at later stages. 

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TYPES OF CONSTRUCTION ON CONTRACTS (PRICE BASED SYSTEM)

3. Bill of Quantities (BoQ) Contract

A quantified and completed list of works describing the full requirements

in the drawings and specifications.
Most common type of fixed-price contract used in the industry.
Items rate in the contract are based on detailed BQ.
Contractor quotes unit price or rate for each item of work.
The ‘contract price’ is the sum total of prices of each item of work as
mentioned in the BQ.
Payments are generally made on the basis of the actual measured
quantity of work executed for each item in the BQ and the rate quoted. 

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TYPES OF CONSTRUCTION ON CONTRACTS (PRICE BASED SYSTEM)

3. Bill of Quantities (BoQ) Contract

Advantages:

Changes made in the drawings at later stages may increase or decrease

the quantity of work to be done. Since the price is based on the rates,
variations can easily be identified and calculated.
Flexibility for owner in term of cash flow management. If the owner has
difficulty to manage his cash flow, he may identify particular items to
change the item to be done at lower cost.
Material on site is paid 90% of the actual value.
Easier for pricing. When a quantity of each trade is known, it will be easier
for the contractors to name their price.

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TYPES OF CONSTRUCTION ON CONTRACTS (PRICE BASED SYSTEM)

3. Bill of Quantities (BoQ) Contract

Advantages:

Owner knows exactly what he pays for. BQ shows the breakdown of every
item of works and how the total price is summed up.
Lesser risk to Owner and Contractor. They pay exactly according to rates
quoted in the bill.  

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TYPES OF CONSTRUCTION ON CONTRACTS (PRICE BASED SYSTEM)

3. Bill of Quantities (BoQ) Contract

Disadvantages:

It may be necessary to supervise to assure the quality of work.

Time consuming for BQ preparation. This may vary from 2 to 6 months;
thus extent the time spends for initial planning.
Time consuming for tender analysis (analyzing of BQ contracts, tender
documents, quantities, price difference in particular item may consume
2-3 months).
Planning and implementation cost. The consultants need to be paid
(normally based on the percentage (%) of the contract price) for the
preparation of BQ and subsequent supervision of work. 

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 TYPES OF CONSTRUCTION ON CONTRACTS (PRICE BASED SYSTEM)

Comparison between LS Contract & BQ Contract

LS Contract BQ Contract

Detail price of each item is not Detail price of each item

quoted.  is quoted.
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Higher risk (Variation) to owner Lower risk (due to Variation

and contractor as rate of each Order) as rate of each item
items are not specified. are specified.

Take lesser time to prepare A lot of time spent just to

Tender Document. prepare the BQ.
 Comparison between SR Contract & BQ Contract

SR Contract  BQ Contract

There is no implied guarantee given that all or All of the work scheduled will be
any of the work scheduled will be carried out. carried out and verified.

More items are scheduled for temporary works Lesser items are scheduled for
than usually appear in BQ, because the amount temporary work as items need
of temporary works that the contractor has to to be quantified.
undertake is uncertain.
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Lesser time spent in preparing Tender A lot of time spent just to

Document by adopting the standard Schedule prepare the BQ.
of Rates.

No guarantee on the quantities stated. The The quantities stated is abstract

quantities against individual items may not be from Drawings and Specification,
stated; may indicated as estimated amount or which have certain level of accuracy
round figure. regarding the work to be carried
out.
 Comparison between SR Contract & LS Contract

SR Contract LS Contract

Contractor quotes detail price Detail price of each item is not

of each item. quoted.

Lower risk (Variation) to Owner and Higher risk (Variation) to Owner

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 Contractor as rate of each item and Contractor as rate of each

 are specified. item are not specified.

Take longer time to prepare Take lesser time to prepare

Tender Document. Tender Document.
TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Cost Reimbursement Contract

Contractor will reimburse and they will be paid based on the actual Prime
Cost spent for the work plus a certain fee to cover his overheads and
profits.
There is no finite sum tendered by the Contractor nor is the one
established at the time of contracting.
The actual contract sum will only be determined on completion of the
works and the ascertainment of the final account figure.

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Cost Plus Percentage (%) of Cost

Contract

The Contractor in this form of contract will charge an agreed fee in terms
of a percentage (%) of the cost of the actual work executed.
The percentage normally varies from 5% to 20%.

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Advantages

Since the entire cost is to be charged to the Client, there is a less

likelihood on negligence on quality of material, construction and
supervision, [doe not matter how complicated the work might be] -›
(this is the disadvantages). 
When there is uncertainty in the case of work to be executed, as for
example in the case of foundation work, this form of contract is
suitable. 
The Client gains great flexibility to get involve in the project
effectively. It also allows the Contractor to be involved at design stage
to gain experience.
Contractor can be confident on an equitable payment should there
be any changes.

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Disadvantages

There is no incentive to complete the works as soon as possible,

or to try to reduce costs.
Dishonest Contractor could increase his profit by manipulating
the contract price. ex. Cost of construction increases when there
are delays, expensive materials, poor control in supervision and
negatives practices. In a particular case, the maximum repetitive
utilization of formwork was avoided by disposing/destroying/burning
the formwork which is not fully reused. Furthermore, there may be
wastage in terms of hardened cement, inexperienced labour and
supervisors.

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Cost Plus Fixed Fee Contract 

The fixed fee charged by the Contractor is an agreed predetermined

lump sum and it does not fluctuate with the cost of the work
executed.
The fixed fee may have been negotiated on a percentage basis on an
anticipated cost of work to be executed.   

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Advantages

The contractor is not inclined to push up the cost of work, as his

profit from his undertaken job is already fixed. 
It is to the Contractor’s advantage if the work is accelerated to finish
early, so that the Contractor could earn his fixed fee as early as
possible and utilize the resources on the other job.   

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Disadvantages

The Contractor may try to reduce the cost of supervision, expedite

with the work, neglecting the correct procedure in construction
process to maximize the profit.
No incentive to the Contractor even when the work can be completed
early.

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Cost Plus Fluctuating Fee Contract 

This is also known as Cost Plus Sliding Scale of Fee Contract, since the
fee paid to the Contractor is based on some form of a sliding scale. 
It is designed in such a way that the Contractor may have a definite
financial incentive to effect economy in the cost of work (to the
Owner).
As the cost of the project increases, the percentage becomes lesser.  

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Advantages

In this case the contractor shall not try to increase the actual cost.
The actual cost is lower and lower so both the owner and the
contractor will be benefited.  

Disadvantages

Estimated cost should be accurate. Otherwise the contractor get

profit if the actual cost is much higher than the estimated cost.

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Target Cost Contract

Is an extra payment to the contractor when the construction work is

completed satisfactorily and earlier than the specified time. This
extra payment rate should have been agreed prior to binding the
contract.
The contractor is paid by the owner the actual cost of construction
plus an amount of fee inversely variable according to the increase or
decrease of the estimated cost agreed first by both parties. thus the
higher the actual cost, lower will be the value of fee and vice versa.

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Target Cost Contract

A basic fee is generally quoted as a percentage of an agreed target

estimated obtained from a priced BQ.
Actual fee paid to the Contractor is derived by increasing or reducing
the basic fee, by an agreed percentage, of the saving or access
between the actual cost and the agreed target estimate. ie.:

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Advantages

Encourages the Contractor to execute the work as cheaply as

possible.
Saving of cost is shared between the Owner and the Contractor.
Owner gains great flexibility to involve in the project effectively
where the target estimated may be adjusted for variation in
quantity and design and fluctuations in the cost of labour and
material, etc.
In some cases, a bonus or penalty (disadvantage) based on the
time of completion may be applied.

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TYPES OF CONSTRUCTION ON CONTRACTS (COST BASED SYSTEM)

Disadvantages

There is no incentive to complete the works as quickly as possible.

Contractor may try to reduce the cost of supervision, expedite with
the work, neglecting the correct construction process so that the
profit can be maximized.

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SUMMARY

Project Delivery System will decides on how the project will be carried out.
Usually the application of different types of contract in construction industry
will very much depends on the types of project desired to be carried out
since there are various options in contracting.
The selection on method of contracting also depends on varied situations,
suitability and the capacity of business entities involved in the project.

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ACKNOWLEDGEMENTS
Janidah Eman (UiTMPP)
Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
REFERENCES
Hendrickson, C. (1998). Project Management for Contract. Pittsburg:
Prentice Hall.

Levy, S. M. (2002). Project Management in Construction (4th ed.).

McGraw-Hill.

Murdoch, J., Hughes, W. (2008). Construction Contracts Law and

Management (4th ed.). Taylor & Francis.

Additional notes:

Peterson, S. (2012). Pearson’s Pocket Guide to Construction

Management. Prentice Hall. Chapter 2: The Project Manual.

Pellicer, E., Yepes, V., Teixeira, J. C., Moura, H. P., Catalá, J. (2013).
Construction Management. Wiley-Blackwell. Chapter 3: Procurement
Approaches, Chapter 13: Progress Payment.

Contract Strategy

Project Delivery Systems: How They Impact Efficiency and

Profitability in the Buildings Sector (2014)
CONTENT DEVELOPERS
 TOPIC 9
SITE ORGANIZATION
 LESSON OUTCOMES (LO) 
At the end of this module, students should be able to:

Understand the Contractor’s and Consultant's site organization.

Explain each key personnel duties and responsibilities in the
organization.
 Introduction

ORGANIZATION STRUCTURE
Organizational are continually restructured to meet the demands imposed by
the environment.
Restructuring can change the role of individuals in the formal and the
informal organization.
Whatever organizational form is finally selected, formal channels must be
developed so that each individual has a clear description of the authority,
responsibility, and accountability necessary for the work to proceed.

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 Introduction

Authority is the power granted to individuals (possibly by their position) so

that they can make final decisions.
Responsibility is the obligation incurred by individuals in their roles in the
formal organization to effectively perform assignments.
Accountability is being answerable for the satisfactory completion of a
specific assignment (the obligation to bear the consequences for failure to
perform as expected)

(Accountability = Authority + Responsibility)

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 Introduction

Authority and responsibility can be delegated to lower levels in the

organization, whereas accountability usually rests with individual.
Yet many executives refuse to delegate and argue that an individual can
have total accountability just through responsibility.

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 Contractor's Site Organization

CONTRACTOR’S SITE ORGANIZATION

CHART FOR MEDIUM SIZE PROJECT 

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 Contractor's Site Organization

The same principles of organization applies to larger or smaller project.

On small jobs, the duties of engineer and agent may be combined, and
the general foreman may also be the plant foreman.
On larger projects, a contract/project manager may be appointed over
the agent, whereas his job being managerial rather than one of technical
and executive control.

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 Contractor's Site Organization
SAMPLE OF CONTRACTOR’S SITE ORGANIZATION
CHART (TRADITIONAL CONTRACT) 

PROJECT OF PUBLIC UNIVERSITY

(2001-2004)
RM55.7 Millions

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 Contractor's Site Organization
SAMPLE OF CONTRACTOR’S SITE ORGANIZATION
CHART (D&B CONTRACT) 

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 Contractor's Site Organization

The numbers of person employed depends not only on the size but
also on the complexity of the job and it’s physical extend.
The five key personnel for Contractor's site organization are:
‒ Site Agent - who is in charge
‒ Site Engineer
‒ Office Manager
‒ General Foreman
‒ Plant Engineer

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 Contractor's Site Organization

SITE AGENT
Responsible for directing and controlling the whole of the construction
work on site.
Have wide powers to enable him to employ workers, hire/purchase
machinery and equipment, purchase materials, and employ
subcontractors.
Site Agent must have a knowledge in civil engineering field of
construction.
He must be diplomatic enough to control workers and deal with the
Consultant representatives such as Resident Engineer (RE).

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 Contractor's Site Organization

SITE AGENT
Able to command men and be a good organizer and administrator.
He needs to has business sense, because his job is not only to get
the works built properly to the satisfaction of the engineer but also to
make a profit for the Contractor.
He is therefore tough, practical, experienced, fair-minded and
energetic.
Site Agent will give the great majority of his instructions verbally.

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 Contractor's Site Organization

SITE AGENT
He needs to keep the job moving. He has to solve problems on sites
and make correct decision quickly because he cannot afford to let
resources stand idle.
He is responsible for claiming and collection of progress payments.
But he also has to bear in mind the capacities of the people who work
for him.
Once the Site Agent has made up his mind, it is the Office Manager
and sub-agent’s job to see that necessary instructions get through to
the right persons without delay.

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 Contractor's Site Organization

SITE AGENT
Site Agent without high integrity may:

Keep trade discount for himself.

Certified for more workers than the actual number.
Charged for general workers as skilled workers.
Ganging up with suppliers to charge for extra material in which it was
not even delivered to the site.

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 Contractor's Site Organization

SITE ENGINEER
Site Engineer main responsibility is to see that the works are
constructed to the right specification.
Advising the Site Agent on all design and engineering matters.
Their duties may be varied, which included levelling of construction
work, planning temporary access road, power supply, etc.
Carry out minor design such as temporary structures, diversion works,
etc.
Measurement of monthly work done for the purpose of claiming
progress payment.

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 Contractor's Site Organization

SITE ENGINEER
Each Site Engineer has a section of work to look after. They prepare
weekly and monthly progress report with the quality record.
On small sites, the Site Engineer may virtually act as sub-agents as
well, the two job merging into one when the job is not large enough to
justify having both sub-agent and engineer.

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 Contractor's Site Organization

SITE SUPERVISOR
Responsible to their superior, Site Engineer.
Ensure proper method of construction being carried out.
Check the work done is accordingly to drawings and specifications.
Ensure the work progress following the schedule.

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 Contractor's Site Organization

OFFICE MANAGER
The Office Manager must be efficient, because upon him rests the
responsibility for seeing that materials flow onto the site as required
and that all invoices and accounts are properly dealt with.
There may be thousands or more accounts to deal with per month.
Unless there is a separate Site Cashier, the Office Manager will also
have to handle the workmen’s pay.
Large amounts of cash may pass under his control, and he must be a
man of integrity, sharply sensitive to any mishandling of the cash. His
work of this nature will naturally be subjected to auditing checks
carried out from time to time by accountants from the head office of
the Contractor.

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 Contractor's Site Organization

GENERAL FOREMEN
The General Foreman is the agent’s right hand man for the execution
of the work in the field.
His explicit duty is to keep the work moving ahead daily as the agent
has originally planned.
On a large contract, much of his daily work is concerned with issuing
detailed instructions to the foreman and coordinating their works.
He has to be a man of wide practical knowledge and long experience,
so that he can, if need be, demonstrate personally how things should
be done correctly.

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 Contractor's Site Organization

GENERAL FOREMEN
He should stand a lot of his time outside, visiting all parts of works
under his control at least once a day.
He needs to keep sub-agent advised of his wants for materials and
equipment, the Plant Engineer about machine needs, and he
constantly calls upon the engineering staff to set out the details.
General Foreman have much authority on site and any junior engineer
who fails to get on with a foreman of standing may find days on site
will be numbered by the patience that foreman is willing to exercise.

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 Contractor's Site Organization

GENERAL FOREMEN

The agent must support a foreman who is keeping the job going at the
right speed and in the right manner, irrespective a minor error of
decision.
General Foreman may sometimes have strange prejudices (biased)
and inexplicable (unable to be explained) attitudes, but are often
astonishingly capable men.
Frequently it is the General Foreman who contributes most to
changing the job from a set of plans into areal structure. The foreman
must also be able to read the engineer’s drawing for them to interpret
and apply in their daily work.

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 Contractor's Site Organization

GENERAL FOREMEN

It is expected that he has an extensive practical knowledge of a wide

variety of craft, coupled with a feeling for natural materials, especially
for the behavior of soil and rock.
He must also have knowledge of what machine the can do and the
basic principal of land survey. In addition, he has to be boss of the
gangers and their men; not just in title, but in actual all-persuasive way
to get the best out of the men by the force of his own personality.

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 Contractor's Site Organization

PLANT ENGINEER
The position of Plant Engineer is normally separately designated from
the General Foreman, even on small jobs; although, depending on his
status, he is either called Plant Engineer/Manager or Plant Foreman.
Maintain and service the plants or equipment.
He will be kept advised of long-term planning by the agent, and of
day-to-day planning by the General Foreman or sub-agent.
Under his control come the fitters and welders (cut, fit, assemble,
weld), and it will be often his job to maintain power suppliers to site
-i.e. to run site generators.

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 Contractor's Site Organization

PLANT ENGINEER

He has to ensure the plant is functioning when needed and assuring

power supplies at the site.
He often has to persuade his fitters to work overtime to get the plant
readiness for the next day’s work, or to cope with breakdowns.
He should be able to forecast and store the necessary spare parts.
Properly maintained and operated plant may double the life of plant
which is not looked after carefully.

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 Consultant's Site Organization

CONSULTANT ENGINEER’S SITE ORGANIZATION

CHART  

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 Consultant's Site Organization

RESIDENT ENGINEER (RE)

RE represent the Consultant at site as;
1. Superintending Officer (S.O.)
2. Chief responsible person at site

Generally, his main duty is to see that the Contractor carries out his
obligations under condition as follow;
1. Document Contract
2. Construction Drawings
3. Authorities Requirement

RE has no power to alter the design, if any difficulties encounter on

site. Instead, he must immediately advise engineer to overcome the
problem.
Sometimes, RE is assisted by COW or TA.

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 Consultant's Site Organization

DUTIES OF RESIDENT ENGINEER 

To check that Contractors have obtained the necessary permits,
instruction and authorization before commencement of work is
allowed.
To check the line, level and layout of structure while it is being erected
to see if it is following the drawing and intentions as stated in the
contract.
To coordinate the work of various Contractors on the detailed
program of work.
To issue further instructions and clarifications of details when it is
necessary.

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 Consultant's Site Organization

DUTIES OF RESIDENT ENGINEER 

To monitor progress that the Contractors work comply with the
specifications in regards to the materials and workmanship.
To ascertain and measure the amount of work done for the purpose of
progress payments.
To watch for faulty workmanship or material incorporate in works and
to issue instructions for remedying such faults.
To see that the completed works are free from defects, tested, and
set properly functioning.
To act as a channel for all claims and disputes and to provide the
facts which are relevant.
All, assisted by COW when the RE is not present.

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 Consultant's Site Organization

DUTIES OF RESIDENT ENGINEER

To chair weekly site meeting.
To report regularly on all the site matters to Client and Designers.
To keep all adequate records for the purposes as follow;
1. To form the basis of fixing fair rewards to the Contractors.
2. To enable all materials to be ordered in good time and
necessary permits for them are obtained.
3. Assured the Designers that the assumptions made for design
are valid.
4. Assists in solving new design problems that may arise
during construction.
5. To form a source of information on the subsequent behavior of
the completed works.

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 Consultant's Site Organization

RESIDENT ENGINEER’S RECORDS 

Adequate records classified in 4 as follow:
1. Historical Record
2. Quantitative and Financial Record
3. Qualitative Record
4. ‘As-Built’ Record

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 Consultant's Site Organization

RESIDENT ENGINEER’S RECORDS 

Historical Record ‒ Show progress of work in proposal over as
achieved and other relevant information such of record of weather,
notes of discussions, decisions and other key matters influencing the
course of the job.
Examples: Schedule of Work Progress, Contract Documents,
Drawings, Agreements, Reports and etc.

Quantitative and Financial Record ‒ Quantitative record includes

measuring of work done with the time and rates stated, together with
all relevant particulars. They form a basis of fair payment to
Contractors and for furnishing of figures, which shows the
cumulative cost of the job, the cost of separate trades and the
estimated final cost at any time.
Example: Piling Record, Claim Evaluation, Progress/Interim Payment
and etc.
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 Consultant's Site Organization

RESIDENT ENGINEER’S RECORDS 

Qualitative Record ‒ Qualitative record includes measurement and
observations of various components of works related to the quality
and behaviour under test; which may influence the behaviour of the
work.
Example: Compression Tests Result (Cube Test), Piling Test, Soil
Test and etc.

‘As-Built’ Record ‒ It is pictorial record of all the works completed,

showing the whereabouts and dimensions of all parts as they exist at
completion, their operation as described in the instruction manual
and their performance under tests.
Example: As-Built Drawing for Piling, Sanitary and Cold water and
etc.

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 Consultant's Site Organization

NEGLIGENCE OR FRAUD COMMITTED BY

RESIDENT ENGINEER  

The Resident Engineer issues a certificate to the Client certifying the

amount of payment due to the Contractor after he had taken
measurement of the work done during the progress of the construction
and for such job after the completion of the job.
This is called Progress/Interim Certificate and the payment is known as
Progress/Interim Payment. When a job is completed and all matters are
settled, he will issue a Final Certificate and Final Payment.

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 Consultant's Site Organization

NEGLIGENCE OR FRAUD COMMITTED BY

RESIDENT ENGINEER  

The Resident Engineer is responsible in damages to the Owner/Client

for the following actions. This actions constitute a fraud if deliberately
carries out by the Resident Engineer.
If not done deliberately, they constitute negligence, and the
Owner/Client can recover such damages or excess sum paid.

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 Consultant's Site Organization

NEGLIGENCE OR FRAUD COMMITTED BY

RESIDENT ENGINEER  

Actions that may contribute to Fraud

Neglecting to measure up the work done.
Certifying for extra as due when they are not.
Certifying for improper and incorrect charges.
Certifying for charges of work caused by his competency or
negligence.
Failing or neglecting to enforce penalties under the contract.
Certifying the payments as due when they are not.

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 SUMMARY

Five key personnel of a Contractor’s Site Organization:

1. Site Agent
2. Site Engineer
3. Office Manager
4. General Foreman
5. Plant Engineer
Important key personnel of a Consultant's Site Organization is RE who is
assisted by Contract Engineer, Assistant Engineer and Office Manager.
The organizations depends on the size and complexity of the job to be done.

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ACKNOWLEDGEMENTS

Janidah Eman (UiTMPP)

Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
 REFERENCES
Harris, F., McCaffer, R., Edum-Fotwe, F. (2013). Modern Construction Management
(7th ed.). Wiley-Blackwell.

Hendrickson, C. (1998). Project Management for Contract.

Pittsburg: Prentice Hall.

Levy, S. M. (2002). Project Management in Construction (4th ed.). McGraw-Hill.

Newton, P. (2015). Principles of Project Management Project Skills. Free

Management eBooks.

Additional notes:
Pellicer, E., Yepes, V., Teixeira, J. C., Moura, H. P., Catalá, J. (2013). Construction
Management. Wiley-Blackwell. Chapter 5: Site Setup and Construction Processes.
Managing Consultants and Contractors (2014)
Site Organization and Management (2015)
CONTENT DEVELOPERS
 TOPIC 10
CONDITIONS OF
CONTRACT PWD FORM
203A 
LESSON OUTCOMES (LO)
At the end of this module, students should be able to:

Explain the Public Work Department (PWD) Form 203A.

Understand its application in construction projects.
 INTRODUCTION
Applicable for Traditional Contract.
Used where Bills Of Quantities form as part of the
Contract.
Produced by JKR (PWD) and comes with price of
RM20 per copy.
Recent Publication: Year 2010.

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 PWD FORM 203A

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 PWD FORM 203A

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 PWD FORM 203A

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 PWD FORM 203A

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 PWD FORM 203A

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 PWD FORM 203A

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 PWD FORM 203A

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 PWD FORM 203A

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 Introduction

The Role of Owner & Contractor

Contract Document

Variations

Prime Cost & Provisional Sums

Performance Bond

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Possession of Site

Completion of Works

Damages for Non-Completion

Delay & Extension of Time

Defect Liability Period

 INTRODUCTION

Conditions of Contract defines the terms under which the work is to be

carried out, the relationship between the Client and the Contractor, the
powers of the Engineer and terms of payment.

CONDITIONS OF CONTRACT (PWD FORM 203A) is to be used where Bills of

Quantities form as part of the Contract.

These contract clauses must be carefully examined and studied by the

Contractor so that the obligations to be assumed are thoroughly
understood.

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 P.W.D. FORM OF CONTRACT 203 (2010) 

There are two traditional forms of contract based on Drawings and

Specification (203) or Bills of Quantities (203A) produced for usage in
public sector or government projects in both building and civil
engineering works.
It can be said that a majority of the risks have been transferred to the
Contractor under these standard forms of contract. Although the forms
are considered biased in favour of the Government it should be known
that the Government have been on the losing side in a number of legal
and contractual disputes.
The standard form is generally used in conjunction with the
accompanying standard administrative forms which have been
produced specifically for use with the contract forms and in many
instances to enhance the obligations contained within the conditions of
contract.

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 P.W.D. FORM OF CONTRACT 203 (2010) 

Generally the Contractor is allowed to claim for extensions to the

contract period for various circumstances deemed the Governments
risks, but generally not for loss and expense as a result of such. 
One other oddity is the fact that no retention money is withheld from
payments. A Contractor whose employment is terminated will be
blacklisted from undertaking future Government projects and there is
no provision for the Contractor determining his own employment with
the Government. 
It is not uncommon for these standard forms to be adopted and used in
private sector projects with amendments made to reflect the change in
Employer.

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 P.W.D. FORM OF CONTRACT 203 (2010) 

It should be noted that although the PWD Forms of Contract are used
extensively on nearly all government projects, there are some
exceptions such as projects which receives funding from the World Bank
or Asian Development Bank which adopt variants of the FIDIC Forms of
Contract.

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 THE ROLE OF OWNER AND
CONTRACTOR ACCORDING TO PWD
FORM 203A

The Role of Owner

PWD Form 203A Conditions of Contract is used where government

(Kementerian Kesihatan, Kementerian Pelajaran, etc.) is the Owner and JKR
officers (director, engineer, RE, COW, TA) is the owner representative.
According to PWD Form 203A Conditions of Contract, the Owner (may be
represented by JKR officers) has the following implied powers and duties. 

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 DUTIES
a)  Not to divulge (disclose) Contractors’ rates and prices. [Clause 71.1]
b)  Be the custodian of the contract documents. [Clause 8.1(a)]
c)  Contractor will be paid for work caused by S.O. negligence. (i.e. S.O. will  
     bear the cost of making good of any work due to S.O.I. (open up or re-    
     execute) if found to be S.O. negligence). [Clause 5.0]
d)  Pay contractor for any or additional works not mentioned the contract  
     documents, i.e. V.O. [Clause 25.1]
e)  Give possession of site to the Contractor on or before the date of
     possession. [Clause 38.2]
f)  Pay the contractor amount certified within period of honouring payment
     certificates. [Clause 28.6]
g)  Pay the Contractor amount awarded by the Arbitrator. [Clause 54.1]

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 POWERS

a)  Appoint Clerk of Works (COW). [Clause 1.1(o), Clause 3.2(a)]

b)  Issue V.O. [Clause 5.1(a), Clause 24.1]
c)  Interpreted the content of the contract document in case of                      
     discrepancies. [Clause 5.1(b), Clause 8.2(b)]
d)  Instruct Contractor to remove any materials from site. [Clause 5.1(c)]
e)  Instruct Contractor to remove and re-execute any work. [Clause 5.1(d)]
f)  Instruct Contractor to remove any worker from site [Clause 5.1(e),
     Clause 23.6(b), Clause 51.1(b)] 
g)  Instruct Contractor to open up any covered work for inspection. [Clause
     5.1(f), Clause 10.1(k)]

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 POWERS

h)  Instruct Contractor to make good any defects of work. [Clause 5.1(g),      
     Clause 48.1(a)]
i)   Employ and pay other Contractor to do the work. [Clause 5.3]
j)   Agree with the Contractor to adjust contract sum. [Clause 29.0]
k)  Defer giving possession of site to the Contractor. [Clause 38.4] 
l)   Deduct liquidated damages to the Contractor. [Clause 42.1(d)]
m) Suspend the Contractor’s work. [Clause 50.1(a)]
n)  Reinstate the Contractor’s employment. [Clause 50.1(d)] 

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 THE ROLE OF CONTRACTOR
According to PWD 203A Conditions of Contract, the Contractor has the
following implied duties and powers.

Duties:
a)  Primary obligation is to execute and complete works in accordance with
     contract document (until the issuance of Certificate of Practical
     Completion), i.e. use contract document for the purpose of the work.
     [Clause 10.0(a)]
b)  Forthwith carry out written instruction issued by S.O. (Architect/
     Engineer). [Clause 5.2]
c)  Make specific written application to the S.O. (Architect/Engineer) for any
     instruction or drawing. [Clause 5.2, Clause 8.1(c)] 

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 THE ROLE OF CONTRACTOR
Duties (cont'd):
d)  Bear cost of opening up and testing and consequential costs of making  
     good. [Clause 6.2]
e)  Set out the works accurately and amend at his own cost any errors.        
     [Clause 19.2] 
f)  Keep a competent person in charge of the works at all reasonable            
     times [Clause 10.1(d), Clause 23.6(a)]
g)  Indemnify the Owner against personal injury or death of any person
     and property damage. [Clause 14.0]
h)  Begin the works when given possession of the site. [Clause 38.1]
i)   Regularly and diligently proceed with works and complete by date of      
     completion. [Clause 39.1]
j)   Pay the Owner liquidated damages at the rate specified in the appendix.
     [Clause 40.3] 

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 THE ROLE OF CONTRACTOR

Duties (cont'd):
k)    Notify in writing to S.O. (Architect/Engineer) any cause of delay.              
       [Clause 10.1(f)] 
l)     Provide the S.O. (Architect/Engineer) with sufficient information to        
       enable him to exercise his duties as regard extension of time. [Clause  
       43.0]
m)  Make good defects, shrinkage and other faults at no cost to the Owner.
       [Clause 48.1(b)]
n)    Give up possession of site of work in the event of termination.              
       [Clause 51.1(c)]
o)    Remove from works any temporary buildings equipment goods etc      
       when instructed by S.O. on termination of employment. [Clause51.1(c)]

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 POWERS

a)  Inspect the contract document. [Clause 8.2(a)]

b)  Sub-letting (sub-contract) any part of the works with the S.O. consent in
     writing. [Clause 47.1]
c)  Make reasonable objection to entering into sub contract with a named  
     person.[Clause 60.2(a)]
e)  Determine his workmen employment. [Clause 23.0] 
f)   Serve a default notice to the Owner specifying the faults alleged.              
     [Clause 10.1(k)]

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 CONTRACT DOCUMENTS (CLAUSE 8)
"Contract" or "Contract Documents" mean the documents forming the
tender and acceptance of the contract including:
Articles of Agreement
Form of Tender
Letter of Acceptance of Tender
Conditions of Contract and the Appendix annexed thereto
Special Provisions to the Conditions of Contract
Contract Drawings
Bills of Quantities
Specifications
Treasury’s Instructions as are set out in the Appendix to the Conditions
of Contract 

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 CONTRACT DOCUMENTS (CONT'D)

In Clause 8 of PWD FORM 203A, the Contract Documents has the following
conditions: 
a)  The Contract Documents shall be in the S.O’s custody and produced as  
     required by the Contractor.  [Clause 8.1(a)]
b)  The S.O. shall make copies of Contract Documents to  the Contractor      
      without any charge (unless he shall have been previously furnished)      
      with: [Clause 8.1(b)]
i)    One certified true copy of the Contract Documents
ii)   Two copies of the Contract Drawings
iii)  Two copies of unpriced Bills of Quantities and (if requested by the          
      Contractor) one copy of the priced Bills of Quantities

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 CONTRACT DOCUMENTS (CONT'D)
c)   The S.O. shall make copies of working drawings as required by the          
      Contractor without charge to enable the Contractor to construct and      
      complete the works in accordance with the contract. [Clause 8.1(c)]
d)   The Contractor shall keep one copy of the Contract Drawings,                  
       Specification, unpriced Bills of Quantities and other documents on site  
       and the S.O. shall at all reasonable times have access to the same          
       documents. [Clause 8.1(d)]
e)    The Contractor shall return to the S.O. all Drawings, Specifications,
       unpriced copy of bills of Quantities and other documents upon the
       final payments on The Final Certificate [Clause 8.1(e)]
f)     The contract documents are restricted in used for any purpose other    
       that in the contract. [Clause 8.1(f)]

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 VARIATIONS (CLAUSE 24)
a)  The S.O. has power to order and subsequent confirmation in writing of  
     any oral instruction requiring a variation to the works and it will not        
     vitiate the contract. [Clause 24.1]
b)  The term “variation” means the alteration or modification of the design,
      quality or quantity of the works as shown upon the Contract Drawings,  
      Bills of Quantities, and/or Specifications, and includes the addition,        
      omission or substitution of any work, the alteration of the                        
      kind/standard/any of the materials/goods to be used in the works and  
      the removal from the site of any work, materials/goods executed,          
      brought thereon by the Contractor for the purposes of the works other
      than work, materials or goods which are not accordance with this            
      contract. [Clause 24.2]

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 PRIME COST AND PROVISIONAL
SUMS (CLAUSE 34)   
a) The term “Prime Cost” or P.C. Sums as provided in the BQ shall means a
sums for works or services to be executed by a Nominated Sub-
Contractor or materials or goods to be obtained from Nominated
Supplier. The sums due to the Contractor in respect of NSC or NS shall
be determined by deducting the relevant P.C. Sums and the relevant
profit charges from the contract sum. Then substituting the amount due
to the relevant NSC or NS as specified in the relevant sub-contract and
the sums due to the Contractor by way of profit charges at the rates or
prices that may have been priced by the Contractor in the BQ.  [Clause
34.1(a)]

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 PRIME COST AND PROVISIONAL
SUMS (CLAUSE 34)   
b) The term “Provisional Sums” provided in BQ shall means a sums for
work or for the supply of goods or materials which cannot be entirely
foreseen, defined or detailed at the same time the tender documents
are issued and such sum may be paid and expended at such times and
in such amounts in favor of such persons as the S.O. may direct. If such
sums is not used either wholly or in part shall as to, the amount not
used will be deducted from the contract sum. At the settlement of the
accounts, the said value of executed work done by Contractor shall be
set off against all such Provisional Sums and the balance shall be added
to or deducted from the contract sum. [Clause 34.1(b)]

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 PRIME COST AND PROVISIONAL
SUMS (CLAUSE 34)   

c) Any work executed, or materials or goods to be supplied for which

Provisional Sums are provided in BQ can be converted into P.C. Sum
items as the S.O. decides and it shall be dealt accordance to Clause 34.1.
[Clause 34.1(c)]
d) The Contractor is permitted to tender for the works of P.C. Sums
provided in BQ. [Clause 34.1(d)]

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 PERFORMANCE BOND (CLAUSE 13)
a) Paid by cash, treasury deposits, banker's draft or insurance guarantee
from approved bankers where the sum is equal to 5% of the total
contract sum. [Clause 13.1]
b) It shall be held or remain valid effective for the period as is provided in
the approved Banker's or Insurance Guarantee. [Clause 13.1]
c) Applied if the Contractor fails to execute the contract or commits any
breach of his obligations under the contract, the government or the S.O.
on its behalf may utilize and make payments out of or deductions from
the Performance Bond or any part thereof in accordance with the terms
of the contract. [Clause 13.3]
d) The Performance Bond may be released or refunded to the Contractor
on the completion of making good of all defects, shrinkages or other
faults which may appear during the Defects Liability Period and upon
the giving of the Certificate of Completion of Making Good Defects for
the whole of the works under Clause 45. [Clause 13.5]

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 POSSESSION OF SITE (CLAUSE 38)

a) No work shall be commenced until Performance Bond under Clause 13

and Insurance Policies under Clause 15 and 18 have been deposited
with the Government or S.O. [Clause 38.1]

b) Possession of site shall be given on or before the "Date for Possession",

and "Date for Completion" shall be calculated accordingly from the said
"Date of Possession". [Clause 38.2, Clause 38.3]

c) Possession of site may be given in section or parts. [Clause 38.3]

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 POSSESSION OF SITE (CONT'D)

d) In the event of delay in giving possession of site, "Date for

Possession" and "Date for Completion" shall be revised. The
Contractor shall not be entitled to: [Clause 38.4]
i)  Claim for any loss or damage
ii)  Determine his own employment
e) If the delay in giving possession of site is beyond three (3)
months from the “Date for Possession”, within fourteen (14) days
of receipt of S.O.’s notice, Contractor may: [Clause 38.5]
i)  Agree to proceed the works and shall not be entitled to
 claim for any loss or damage
ii)  Determine his own employmen

f) The Contractor shall render all necessary assistantce required by

the Government in carrying out any investigation.  [Clause 45.0]

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 COMPLETION OF WORKS (CLAUSE 39)

a) The Contractor shall complete the whole of the works on or

before the “Date of Completion” or extended as under Clause 43
(Delay and Extension of Time).

b) When the whole works have reached practical completion

according to S.O. satisfaction, such date shall be the
commencement date of Defect Liability Period (DLP) as under
Clause 48. The "Certificate of Practical Completion" shall be
issued.

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 DAMAGES FOR NON-COMPLETION (CLAUSE 40)

If the Contractor shall complete the works by "Date for Completion"

or within any extended time under Clause 43, S.O. shall issue the
"Certificate of Non-completion". Contractor shall pay government a
sum calculated at the rate stated in Appendix as Liquidated and
Ascertained Damages (LAD) for the period during which the works
remained incomplete. S.O. may deduct from any monies which is due
to Contractor. [Clause 40.2]

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LIQUIDATED AND ASCERTAINED DAMAGES (LAD)

LAD shall be defined as the penalty imposed for failure of Contractor

to complete the work by the Date of Completion as stated in the
Contract Documents or after Extension of Time (E.O.T.) is granted.

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LIQUIDATED AND ASCERTAINED DAMAGES (LAD)

Characteristics of LAD:
As a compensation to Owner due to late completion of project by
the Contractor.
Sum payable is based on day/week/month.
The rate must be realistic and reflect actual cost incurred by Owner
in renting similar facilities. 
Advantages of LAD:
Discourage Contractor from completing construction project late.
Convenient method of getting payment from the Contractor.

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 PENALTY AND BONUS

Penalty and Bonus

Penalty and Bonus is a challenge for both parties. Normally Penalty
and Bonus come together. Bonus is given to Contractor if the work
complete earlier or within the contract period. But if Contractor failed
to complete on time, Penalty clause will be imposed on him.

Characteristics of Penalty and Bonus

The amount agrees for Bonus (reward) or Penalty (punishment) does
not have to reflect or based on any criteria. It does not reflect the
actual damages cost by the Owner. 

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 DELAY AND EXTENSION OF TIME (CLAUSE 43)
a) By force majeure* [Clause 58.0]
b) By reason of any exceptionally inclement weather
c) By reason of S.O. directions, consequential upon disputes with
neighbouring owners. [Clause 50.0]
d) By reason of the loss or damage due to Clause 44.
e) By reason of S.O.’s instruction issued under Clause 5.
f) By reason of Contractor not receive in due time necessary
instructions or drawings.
g) By reason of delay in giving possession of site under Clause 38.4.
h) By reason of local combination of workmen, strike, or lockout
affecting trades.
i) By delay of artists, tradesmen or others engaged by Government
to execute the work.
j) By the Contractor’s inability for reason beyond his control at the
date the tender closed.
k) By delay of NSC/NS, caused by sub-clauses (a) to (j) as stated above.

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 *FORCE MAJEURE

Force majeure "superior force" or "unavoidable accident" is a

common clause in contracts that essentially frees both parties from
liability or obligation when an extraordinary event or circumstance
beyond the control of the parties, such as war, strike, riot, crime or
an event described by the legal term act of God (such as hurricane,
flooding, earthquake, volcanic eruption, etc.), prevents one or both
parties from fulfilling their obligations under the contract.

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DELAY AND EXTENSION OF TIME (CONT'D)

The calculation of EOT due to inclement weather:

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 CLAUSE 43 (B) -EXCEPTIONAL INCLEMENT WEATHER
From the monthly summary of rainfall for area XYZ for the past 5 years (20XX – 20XX) as
compiled by MMD/DID, the average rainfall for the month of Jan to Dec can be tabulated as
follows:-
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Thus the actual daily rainfall which exceeds the average rainfall of every month for the last
5 years can be categorized as "Exceptional Weather Conditions".
DEFECT LIABILITY PERIOD (DLP) (CLAUSE 48)
a) Defect Liability Period (DLP) is a period where the Contractor shall
make good the defects at his own costs against any defect,
imperfection, shrinkage or any other faults which may appear and
which are due to materials or goods or workmanship not in
accordance with this contract. DLP is stated in the Appendix (if not
stated is six (6) months after Date of Practical Completion).
b) S.O. shall specify in Schedule of Defects and deliver to Contractor
not later than 14 days after the expiration of DLP. Contractor
shall make good not later than three (3) months after the receipt
of the said Schedule.

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 DEFECT LIABILITY PERIOD (DLP) (CLAUSE 48)
c) If the Contractor failed to comply with the previously mentioned
sub-clause (a) or (b), S.O. may departmentally or employ others to
make good the defects and deduct from:
i)    Remaining sum to be paid to the Contractor
ii)   Performance Bond
iii)  As liquidated demand in money 
b) If it is impractical or inconvenient to Government to have
Contractor remedy the defects, S.O. shall ascertain the value of
the Works and deduct from:
i)   Remaining sum to be paid to the Contractor
ii)  Performance Bond
iii) As liquidated demand in money
c) When Contractor has made good all defects, S.O. shall issue
“Certificate of Completion of Making Good Defects” on the date. 

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CONTRACT ADMINISTRATOR
IN CHARGE
“S.O.” under JKR 203 Form of Contract

“Architect” under PAM Contract

“Engineer” under IEM Contract

“Engineer” under FIDIC Contract (before 1999) 

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 SUMMARY
Bills Of Quantities Form Part Of The Contract
Contained of 81 Clauses
Mostly applied in Traditional Contract Delivery System. 

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ACKNOWLEDGEMENTS
Janidah Eman (UiTMPP)
Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
 REFERENCES
Chitkara, K. K. (2014). Construction Project Management.
Tata McGraw-Hill Education.

Harris, F., McCaffer, R., Edum-Fotwe, F. (2013). Modern Construction

Management (7th ed.). Wiley-Blackwell.

Knutson, K., Schexnayder, C. J., Fiori, C. M., Mayo, R. E. Construction

Management Fundamentals (2nd ed.). McGraw-Hill.

Levy, S. M. (2012). Project Management in Construction (6th ed.). McGraw-Hill.

Murdoch, J., Hughes, W. (2008). Construction Contracts Law and Management

(4th ed.). Taylor & Francis.

Additional notes:

General Conditions of Contract for Construction

 Works (GCC 2004), 2008

PWD Form 203 (Rev. 10/83)

CONTENT DEVELOPERS
TOPIC 11
PLANNING, MONITORING
AND CONTROL
TECHNIQUES
 LESSON
OUTCOMES (LO)
At the end of this module, students should
be able to:
Understand the uses of Work Breakdown
Structure (WBS), Explain the dependencies
relationship, advantages and
disadvantages of CPM and Bar Chart.
Apply the Critical Path Method (CPM)
network analysis; understand Activity on
Node (AON) @ Precedence Diagram &
Activity on Arrow (AOA).
Understand the usage of software for
planning and scheduling in the industry.
Implementation of QLASSIC in the industry.
 INTRODUCTION

Planning, scheduling and control of the functions, operations and resources

of a project are among the most challenging tasks faced by a professional
construction manager as they are important to ensure the construction
process run smoothly.
During construction phase, the professional construction manager or
general contractor normally provides the overall planning, scheduling and
control needed to sequence operations properly and to allocate efficiently
the resources involved.
Work planning is the heart of good project management because it provides
the central communication that coordinates the work of all parties.

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 INTRODUCTION

Desired result of project planning:

Complete the project on time
Continuous flow of work
Reduce the amount of rework
Minimize confusion and misunderstanding
Knowledge of distribution of costs for the project
Accountability of people, defining responsibility/authority
Clear understanding of who does what, when and how much

Key principles for planning and scheduling: 

Begin planning before starting work, rather than after starting work
Involve people who will actually do the work in the planning and scheduling
process
Include all aspects of the project: scope, budget, schedule and quality
Build flexibility into the plan and include allowances for changes
Remember that schedule is the plan for doing the work and it should be
precisely correct
Communicate the plan to all parties
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 PLANNING AND OPERATION WORK IN
CONSTRUCTION PROJECT 

Technique to be used for planning and scheduling in construction projects varies

depending on:
‒  Project Size 
‒  Complexity
‒  Duration
‒  Personnel and
‒  Owner Requirements

An effective planning technique in construction project should be capable of: 

‒  Predicting overall project time
‒  Identifying critical activites
‒  Giving guidance for shortening the overall project time
‒  Indicating the points at which detailed information must be available for any parts of    
    the projects
‒  Rapid evaluation for alternative construction method
‒  Develop means of reporting, recording and controlling the project progress
‒  Develop means to evaluate effect of changes towards construction period

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 WORK BREAKDOWN STRUCTURE (WBS)

Defined as “a deliverable oriented grouping of project elements that organizes

and defines the total work scope of the project in a hierarchical structure. Each
descending level represents an increasingly detailed definitions of project
work”.

WBS (Work Breakdown Structure) – How a project is broken down into

smaller sections. Ex. Highest Level is the “Project”, followed by “Section” within
the “Project”. Then, next level is the “Work” within that “Section”.

Level – WBS numbered based on main and subsections. Ex. Level 1 for
“Project”, Level 2 (coded as L1.1) for  “Section” and Level 3 (coded as L1.1.1)  for
“Work” within the “Section”

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 WORK BREAKDOWN STRUCTURE (WBS)

How a project is broken down into smaller sections: 

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EXAMPLE 1 OF WBS DIAGRAM 

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 EXAMPLE 2 OF WBS DIAGRAM 

PROJECT

SUBPROJECT

SUBNETWORK

ACTIVITY

SUBACTIVITY

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EXAMPLE 1 OF WBS (LABEL) 

1. Army Camp Project (Project)

1.1 Preliminaries (Section)

1.1.1 Setting Out (Work)
1.1.2 ……………………

1.2 ……………………
1.2.1 …..………………. 

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 EXAMPLE 2 OF WBS (LABEL)

1.0 Housing Area Project

          1.1 Preliminaries
                            1.1.1 Survey and Setting Out
                            1.1.2 Mobilization Machineries
                            1.1.3 External Works
                                           [Link] Site Clearing
                                           [Link] Slope Cutting
                                           [Link] Channel Excavation
          1.2 Structural Works
                            1.2.1 Sub-Structural Work
                                           [Link] ……………………………………..                                  
                                                   1.2.2 Super-Structural Work …………………………. 

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 OBJECTIVES OF WBS

To breakdown the project to visible items that can be controlled and are
small enough for accurate estimates.
To specify work packages for accountability and responsibility which will be
assigned to specific personnel.
To ensure the progress of the work packages can be measured. 

***It should be noted that WBS is only

a planning rather than scheduling
awang295@[Link]
 PLANNING AND OPERATION WORK IN
CONSTRUCTION PROJECT 

The three methods of planning and scheduling commonly uses are:

 Bar Chart (Gantt Chart)

 Critical Path Method (CPM) of networking analysis
 S-Curve Analysis  

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 BAR CHART PLANNING METHOD 

Bar Chart (also known as Gantt Chart) was developed by Henry L. Gantt. 

‒  Most common form of scheduling technique

‒  Oldest method
‒  Direct
‒  Easily understood
‒  Has limited application

In a typical Bar Chart, the horizontal scale is divided into time elements (days, weeks,
etc) while the vertical axis displays the activities.
The length of a bar is used to represent the duration of an activity while its position on
the chart indicates when the work should begin and end.

Bar Chart can give the following information: 

‒  The proposed date against the actual date of an activity starting/ finishing.
‒  The proportion to compare with the total job completed.
‒  The period of time whether an activity is ahead or behind the schedule.
‒  Time by which the remaining work is to be done.

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 BAR CHART PLANNING METHOD 

Nowadays Bar Chart was modified and named as Link Bar Chart which manages to
show the interrelationship between activities, thus integrate costs to the schedule. 

Typical Bar Chart is drawn by using a horizontal bar or line chart with the following
features:
‒  Activities identified on the left hand side.
‒  Time scale drawn on the top or bottom of the chart along the x-axis.
‒  A horizontal open bar or line is drawn against each activity indicating the estimated        
    time duration.
‒  At a review point, the oblongs or bars are shaded to represent the actual time spent.

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EXAMPLE 1  OF BAR CHART

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 EXAMPLE 2 OF BAR CHART

Draw a bar chart for the following activities:

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SOLUTION

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 PROJECT MANAGEMENT BASIC TERMINOLOGIES 

Duration – Total span of working time required to complete a task

Predecessor – “Previous” activity

Successor – “Subsequent” activity

Link – Relation between 2 or more activities or tasks

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 EXERCISE 1

Based on the table given, without overlapping activities, draw a Bar Chart.

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 EXERCISE 2

Based on the table given and without overlapping work, draw a Bar Chart.

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 EXERCISE 3

Based on the table given, with overlapping activities, draw a Bar Chart.

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TUTORIAL

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 BAR CHART PLANNING METHOD 

Advantages: Disadvantages:
Widely accepted because Networking of the activities is not shown.
most people readily The interrelationship and dependency of activities
understand it. are not defined.
Does not indicate the exact date, thus hard to
Easy to use and interpret.
interpret when is the activity start and finish times
Suitable for use in office and
as separate events.
site due to its compact Does not indicate critical path and critical activities.
format. Does not indicate the float (total float, free float, and
Able to show visually the etc.), therefore cannot illustrate tolerances for the
proposed and the actual completion of various activities.
progress of work. Does not integrate costs or resources with the
Able to present project schedule.
Cannot be easily modified to reflect the actual
progress graphically.
situation.
Simple and quick to
Not a good controlling device because it is in a
generate.   compact format.
Hard to handle for large projects.   

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 CRITICAL PATH METHOD NETWORK ANALYSIS  

Critical Path Method (CPM) was developed in 1956 as effective technique for overall
detailed scheduling of construction project.
It is often referred to a network analysis system (NAS) and provides interrelationship
of activities and scheduling of cost and resources.
This up-front format planning and scheduling helps the project team to identify
conflicts in resources before it occur.
The CPM scheduling is a graphic network that shows the sequence of the project
tasks, the task duration and the relationship of tasks to one another.
The CPM network will also provide the 'critical path' that is, those tasks that are
required to be done on time and is sequenced to meet the overall project dateline or
completion date.

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 CRITICAL PATH METHOD NETWORK ANALYSIS  

Steps in Planning and Scheduling

a)   List out all activities need to be monitored.

b)   Develop a work breakdown structure (WBS) to gather all activities into identical group.
c)   Prepare a network diagram that shows the interrelationship of each activity.
d)  Compute the schedule to determine the start, finish and float times. 
‒  Perform a Forward Computation to determine the Late Finish (LF) and Late Start (LS)  
    of all activities.
‒  Determine the project duration.
‒  Perform a Backward Computation to determine the Late Finish (LF) and Late Start      
    (LS) of all activities.
‒  Determine the Total Float (TF) and Free Float (FF).
‒  Determine the Interfering Float (INTF) and Independent Float (INDF).
‒  Determine the critical activities and critical path. 

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 CRITICAL PATH METHOD NETWORK ANALYSIS  

Steps in Planning and Scheduling

Determine the time, cost and resources required to complete each activity.
Analyse costs and resources for the project:
‒  Compute the cost per day for each activity and for the entire project.
‒  Compute the resources that are required to complete the project. 

Communicate the result of the schedules:

‒  Display time schedule for activities.
‒  Display cost schedule for activities.
‒  Display schedule for other resources.

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 CRITICAL PATH METHOD NETWORK ANALYSIS  

Activities in CPM are: 

Listed according to WBS.
Presented as a network diagram (that shows the interrelationship of each activity).
The starting and finishing time for all activities are shown.  

Same as Bar Chart, it can give the following information:

The proposed date against the actual date of an activity starting/finishing.
The proportion compare to the total job completed.
The period of time whether an activity is ahead or behind the schedule.
Percent remaining time to complete a project. 

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 CRITICAL PATH METHOD NETWORK ANALYSIS  

Advantages

Networking of the activities is shown.

The interrelationship and dependency of activities are defined.
Indicates the exact date, thus easy to interpret activity start and finish times as
separate events. Indicates critical activities and critical path. The network can show
which activity is critical and which activity can be [Link] network can lead to the
computation of total project completion time.
Indicates the float (total float, free float, and etc.), therefore illustrate tolerances for the
completion of various activities.
Integrates costs or resources with the schedule. It makes use of graphically networks
to show and highlight relationships among project activities. The network shows each
activity and therefore can link to who is responsible for the activity and its progress
and completion.
Can be easily modified to reflect the actual situation.
Good controlling device because it gives detail information.
Suitable for large projects, but hard for complex (relationship) projects. 

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 CRITICAL PATH METHOD NETWORK ANALYSIS  

Limitations Disadvantages
Project activities have to be clearly defined, CPM is not easily understood by
independent and stable in their most people.
relationships. Not easy to use and interpret. 
Precedence relationships must be specified Not suitable for use in office and
and networked. site, because it gives all details.
Time estimates tend to be subjected to the Not able to show visually the
estimates of the planners or project proposed and the actual progress of
manager. work.
There is tendency or inherent danger of Not able to present all project
overlap focusing on the critical path and the progress graphically.
critical activities only, in which there are also It is time consuming to generate.
other important factors such as costs, Awkward for more complex
quality, compliance to standard and projects.
customer and legal requirements that need Use of dummy activities can be
to be tended to. confusing.  

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 BASIC DEFINITIONS OF TERMS IN CPM

Network diagram ‒ A diagram to represent the logical relationship of activities to

complete the project. There are two types: 
‒  Precedence Diagram (Activity on Node @ AON) 
‒  Arrow Diagram (Activity on Arrow @ AOA)

Activity on Node (AON)

Tasks or activities are represented by circles called Nodes or Box and relationships
are indicated by arrows called branches, arrows or arcs.
Each node represents an (unique) activity and the arrows indicate the precedence
relationships.
Activities have a predecessor relationship, that is, they are linked in a sequential
order to show which activities must be finished before others can start. An activity
cannot start until all of the preceding activities that are linked to it by arrows have
been finished. This network is easier and commonly used with less dependencies
on dummy activities.

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 BASIC DEFINITIONS OF TERMS IN CPM

B D F

A H

C E G

AON @ Precedence Diagram

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 BASIC DEFINITIONS OF TERMS IN CPM

Activity on Arrow (AOA)

Each activity has a begin and end point. The begin and end point is expressed as
Event.
Therefore, in this case the node is the Event. An Event represents the start of
activity and the finish of the activity.
The arrows connecting the two (2) events represent the AOA. Tasks or activities are
represented by the arrows (or the arrows represented the activity).
Using this AOA, there is a Dummy Activity where we may need to use to indicate
precedence when no activity exist. Dummy activity is represented by a dashed
arrow and has a time duration of ZERO. Dummy activity is only used in AOA
network format for two reasons:
‒  To help in the unique identification of activities
‒  To show certain presidential relationships that otherwise could not be shown.
In AOA, there cannot be two activities, having the same predecessor―successor
relationship. Thus, the insertion of dummy activity allows such combinations.

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 BASIC DEFINITIONS OF TERMS IN CPM

B F

A B' H

C G
E

AOA @ Arrow diagram

Activity ES : EF

Duration LS : LF

AOA @ Arrow diagram

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EXAMPLE OF DIAGRAM

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BUILD A NETWORK/PRECEDENCE DIAGRAM  1

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BUILD A NETWORK/PRECEDENCE DIAGRAM  2

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 BASIC DEFINITIONS OF TERMS IN CPM

Time
Earliest Start Time (ES) = EF - Activity Duration (D)
Earliest Finish Time (EF) = ES + D
Latest Start Time (LS) = LF - D
Latest Finish Time (LF)
Total Float (TF) = LF - EF or LS -ES
Free Float (FF)

Activity ‒ The performance of a task required to complete the project. An activity

required time, cost, or both time and cost. Examples of activities are Site Cleaning, Piling,
Concrete Forming, Column and Landscaping.
Dummy Activity 
Critical Activity
Critical Path

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 BASIC DEFINITIONS OF TERMS IN CPM (TIME)

Earliest Start Time (ES)

Earliest Start Time (ES) is the earliest time at which a particular activity begin.
It is calculated on the basis of the project's estimated start time and the duration
estimates for preceding activities.

Earliest Finish Time (EF)
Earliest Finish Time (EF) is the earliest time by which a particular activity can be
completed.
It is calculated by adding the activity's duration estimate to the activity's Earliest Start
Time.

EF = ES + Activity Duration

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 BASIC DEFINITIONS OF TERMS IN CPM (TIME)

Latest Start Time (LS)

LS is the latest time by which a particular activity must be started in order for the
entire project to be finished by its required completion time.
It is calculated by subtracting the activity's duration estimate form the activity's
Latest Finish Time.

LS = LF + Activity Duration

Latest Finish Time (LF)

LF is the latest time by which a particular activity must be completed in order for the
entire project to be finished by its required completion time.

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 BASIC DEFINITIONS OF TERMS IN CPM (TIME)

Total Float (TF)

TF is the amount of time an activity may be delayed without delaying the completion
date of the project.
TF represents how much leeway (free time) each activity has in its starting time and
duration.

TF = LF - EF or
= LS - ES

If the TF is positive, it represents the maximum amount of time that the activities on
a particular path can be delayed without jeopardizing completion of the project by its
required completion time.
If the TF is negative, it represents the amount of time that the activities on a
particular path must be accelerated in order to complete the project by its required
completion time. 

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 BASIC DEFINITIONS OF TERMS IN CPM (TIME)

Free Float (FF)

The amount of time an activity may be delayed without delaying the Early Start Time
of the immediately following activity.

For AON,

Where the subscript i represents the preceding activity and the subscript j represents
the following activity. 

For AOA, 

ES : EF ES jk : EF
i j k
LS : LFij LS : LF

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 BASIC DEFINITIONS OF TERMS IN CPM (ACTIVITY)

Dummy Activity 
Dummy Activity is a virtual activity that does not require cost or time. Any
activity follows Dummy Activity cannot start until the activity or activities
precede the Dummy Activity are completed. It is included to avoid having two
activities possess the same from-to event numbers.
Symbol     

Critical Activity
If the TF is zero, the activities on the path cannot be delayed at all.
An activity that has zero float is called critical activity.
A critical activity means that the activity cannot be delayed at all; otherwise
the delay of this activity will affect the project completion time.

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 BASIC DEFINITIONS OF TERMS IN CPM (ACTIVITY)

Critical Path

A project cannot be completed until the longest path (most time consuming)
path of activities is finished.
This longest path in the overall network diagram is called as Critical Path.
A Critical Path is the path that consist of activities with no delay, that is, ZERO
float. The path with positive float value is therefore a Non-Critical Path.

The Critical Path indicates the project duration, i.e. the minimum time needed
to complete the project. A project may have more than one Critical Path.
Symbol 

awang295@[Link]
 EXAMPLE 1 OF PRECEDENCE DIAGRAM (ACTIVITY
ON NODE @ AON) 
The activities of a construction project are listed below.

Based on the information, determine:

The network diagram.
The ES, EF, LS, LF, TF and FF for each activity.
The critical activities and critical path.
The project duration.

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 SOLUTION EXAMPLE 1

a)  Network Diagram:

B F

A C E H I

D G

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 SOLUTION EXAMPLE 1

b) i. Precedence Diagram:

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 SOLUTION EXAMPLE 1

b) ii. Tabulate Data: 

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 SOLUTION EXAMPLE 1

c)  Determine the critical path activities and critical path.

Critical path: Activity A-C-E-F-G-H-I

Determine the project duration.

‒  Project duration = 10 days (LF of activity I) 

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 EXAMPLE 2 OF PRECEDENCE DIAGRAM (ACTIVITY
ON ARROWS @ AOA) 

Below is the lists of activities for a construction project.

Use the method of activity on arrow:

Draw the network diagram.
Determine the ES, EF, LS, TF and FF
for each activity.
Determine the critical path. 

awang295@[Link]
 SOLUTION EXAMPLE 2

a)  Network Diagram:

D
2 6
4

A
F
1 6
E J
B H
1 3 5 8 9
2 5 4 2

C I
3
3
G
4 7
5

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 SOLUTION EXAMPLE 2

b) Tabulate Data:

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 SOLUTION EXAMPLE 2

b) Arrow Diagram:
1:5
2 6
9:13
0:1
7:13
8:9
7:13
0:2 2:7 20:22
1 3 5 13:17 8 9
0:2
2:7 13:17 20:22
0:3 17:20
9:12 17:20
3:8
4 7
12:17

c)  Determine the critical path

     Critical path:   Activity B-E-F-H-I-J

                              Event No. 1-3-5-6-7-8-9
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 EXAMPLE 3

Solve the problem.

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SOLUTION EXAMPLE 3

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SOLUTION EXAMPLE 3

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 SOLUTION EXAMPLE 3

iii) Tabulate Data:

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 BASIC DEFINITIONS OF TERMS IN CPM (TIME)

Interfering Float (INTF)

Also known as Interference Float. It is the difference between total float and free
float, INT = TF – FF. Time span in which the completion of an activity may occur and
not delay the termination of the project but will delay the start of the following
activity, i.e. the amount of TF shared by the succeeding activity. Interfering float is
rarely used in any subsequent calculations.

For AON,

Where the subscript i represents the preceding activity and the subscript j represents
the following activity.

For AOA, 

ES : EF ES jk : EF
i j k
LS : LFij LS : LF

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 BASIC DEFINITIONS OF TERMS IN CPM (TIME)

Illustration of terms “Interfering Float”

Diagram below shows the network for a project with all the relevant data compute on a table. 

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 BASIC DEFINITIONS OF TERMS IN CPM (TIME)

According to above, if activity 2-4 uses all TF of 6 weeks, activity 4-5 will have no float. If activity
2-4 only uses TF of 4 weeks or less, activity 4-5 will remain TF of 2 weeks. Therefore activity 2-4
has 6 weeks of TF which 4 can be used without reducing the float in any succeeding activity (i.e.
activity 4-5). It is say that activity 2-4 has an INTF of 2 weeks and a FF of 4 weeks that make up
the TF of 6 weeks. 

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 BASIC DEFINITIONS OF TERMS IN CPM (TIME)

Independent Float (INDF)

Time span in which the completion of an activity may occur and not delay the
termination of the project nor delay the start of any following activity, and not be
delayed by any preceding activity. Interfering float is rarely used in any subsequent
calculations.

For AON,

Where the subscript h, i and j represents 3 activities in continuous; i.e. the subscript
h represents the preceding activity, I represents the current activity, and j
represents the following activity.   

For AOA, 

ES jk : EF ES jk : EF
h i j k
LS : LFhi D ij LS : LF

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 PROJECT MANAGEMENT USING MICROSOFT PROJECT 

The best project management tool in the world can never replace humans
good judgement. However the tool may help to accomplish the following to
increase project productivity:
Track any gathered information regarding the work, duration and resources
required in the project. 
Visualize the project plan in a well-define formats. 
Schedule tasks and resources consistently and effectively. 
Exchange information with all stakeholders online.

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 PLAN USING MICROSOFT PROJECT 

Based on your own developed WBS, create scheduling Microsoft Project. Take note
that Ms. Project is only one of the available options in the market.
 RESOURCES REQUIRED IN CONSTRUCTION PROJECT 

Four main resources [4M];

Material: concrete, steel bar etc.
Manpower: carpenter, general labour etc.
Machineries / Plant: excavator, concrete mixer etc. 
Money/Budget: based on unit rate as in BQ

Improper resources will cause the following impact:

Incurred cost – need reconstruction 
Lead to wastage 
Produce bad quality of structure due to unskilled worker and low quality of
material.

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 RESOURCE SHEET 

Resource Name: type the name (electrician, general labour, etc.) 

Type: define the type of resource (work/material/cost) 
Material Label: specify the unit of measurement (m, kg, bag, m³ etc.)
Group: You may assign resources to groups if they share common
characteristics 
Max. Units: amount of work, 100% = 1 unit
Standard Rate: rate for standard work (8 hrs/day)
Over Time Rate: rate for working overtime 
Cost/Use: cost being charged for each use of the resource (ex. When you
rent a machine that costs you RM25/hr plus setup charge RM100, the setup
charge is the cost/use) 

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 ASSIGN 4M RESOURCES IN MS. PROJECT 

Based on the previous schedule in MS. Project, now assign suitable 4M resources for
each tasks. 

(Machineries)
(Manpower) 

(Materials)
(Money) 

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 1

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 2

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 3

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 RELATIONSHIP OF ACTIVITIES

Other than Predecessor and Successor, there are four (4) other types of relationship
named as “Dependencies”.

The 4 dependencies relationship;

Finish To Start (FS) 

Start To Finish (SF)
Finish To Finish (FF) 
Start To Start (SS) 

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 OTHER TERMINOLOGIES 

Lag Time - Time added to the start or

finish of a predecessor task; and causes a
gap in timing. It is also a delay between
tasks that have a dependency. Ex., if you Excavate Foundation Area -> Concrete Poured

need a 2 days delay between the finish of Delay due to unknown condition of soil. 

one task and the start of another, you can

specify 2 days of lag time in FS dependency.
Stated as (+ve) value. 

Lead Time - Overlap between tasks that

Pour Concrete (Foundation) -> Fabricate
have a dependency. Ex., if a task can start
Formwork / Steel Bar (Ground Beam)
when its predecessor is half finished, you
Overlap while waiting to remove
can specify a FS dependency with a lead
formwork. 
time of 50% (or in days) for the successor
task. Stated as (–ve) value. 

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 RELATIONSHIP OF ACTIVITIES 

Finish To Start (FS)

The independent activity (A) in the relationship must finish before the
dependent activity (B) can start.

FS
A B

However it does not say that the dependent activity must start then. The
activity could start later than that time, but it is not allowed to start any
sooner than the finish of the independent activity. 

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 RELATIONSHIP OF ACTIVITIES 

Example

Finish To Start (FS)

(A) must finish before (B) can start. 

Formwork FS
Concreting
Activity

Concreting can only be done after formwork is completed.

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 RELATIONSHIP OF ACTIVITIES 

Start To Start (SS)

(SS)

A B

The independent activity in the relationship (A) must start before the
dependent activity (B) can start. It does not say that the dependent
activity must start then. 
The activity could start later than that time, but it is not allowed to start any
sooner than the start of the independent activity.  

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 RELATIONSHIP OF ACTIVITIES 

Example

Start To Start (SS)

(SS)

Prepare Tender Tender

Document Advertisement

(A) must start before (B) can start

Only after tender document start being prepared, the tender advertisement
can be published.
@
Project work start, then project management activities also start. 

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 RELATIONSHIP OF ACTIVITIES 

Finish To Finish (FF)

(FF)

A B

The independent activity (A) in the relationship must finish before the
dependent activity (B) can finish. (B) can’t finish before (A) is finished. It
does not say that the dependent activity must finish then.
The activity could finish later than that time, but it is not allowed to finish
any sooner than the finish of the independent activity.  

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 RELATIONSHIP OF ACTIVITIES 

Example

Finish To Finish (FF)

(FF)

Maintenance Project
Activity Completion

(B) can’t finish before (A) is finished.

Total completion of project can only be considered when the maintenance
activities had been completed.
@
Entire site report written can only be considered finished when the last part
of the report is completely written. 

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 RELATIONSHIP OF ACTIVITIES 

Start To Finish (SF)

(SF)

A B

Independent activity (A) must start before the dependent activity (B) can
finish. It does not say that the dependent activity must finish then.
The dependent activity (B) could finish later than that time, but it is not
allowed to finish any sooner than the start of the independent activity (A). 

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 RELATIONSHIP OF ACTIVITIES 

Example

Start To Finish (SF)

(SF)

New Work Previous

Shift Work Shift

(A) must start before (B) can finish

The watchmen for the site can only finish when the next work shift starts.

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 RELATIONSHIP OF ACTIVITIES 

The existence of dependency is due to:

Causal (Logical) - It is illogical to pour concrete before you dig the

foundations of a building.
Resource Constraints – It is logically possible to paint four walls in a room
simultaneously but there is only one painter. 
Discretionary (Preferential) – I want to paint the living room before painting
the dining room, although I could do it the other way round, too.

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 MILESTONES

Task of zero duration that shows an important achievement in a project. This

is to know how the project is advancing.
When building a house, everyone talks about milestones because nobody is
familiar with the specific tasks:

“The floors will be finished on Monday”

“The roof will be completed on Nov 1st”
“The gas installation will be connected at the end of the month”

 We intuitively talk about milestones, not tasks. Because we will be asked,
“When are you going to finish the roof?” and so on.

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 S-CURVE

S-Curve is an analysis method to show the project progress. 

 It is an extension of Bar Chart and CPM methods.
The S-Curve is capable to show the cumulative resources/costs of a project for a
particular period (daily/weekly/monthly).
To prepare for the S-Curve, a Bar Chart or CPM needs to be prepared first.  

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 EXAMPLE OF S-CURVE

The scheduled and actual duration for each activities of a project are given as below.

Based on the data:

A.  Prepare the S-Curve for:
      i.   Progress (Schedule)
      ii.  Progress (Actual)
B.  Give your comment regarding the progress of work until week 9
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 SOLUTION

A.  Prepare the S-Curve

      To prepare S-Curve, first a
      Bar Chart must be developed. 
      a)  Draw a Bar Chart of:
           i.   Progress (Schedule)
           ii.  Progress (Actual)

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 SOLUTION

b)  Draw the S-Curve of:      

      ‒ Cumulative Progress (Schedule)      
      ‒ Cumulative Progress (Actual)
S-Curve

44
)MR( ssergorP evitalumuC

42 43
38

33
26
24
19 23
21
14 18
9
6
3 4
1

Week
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 SOLUTION

c)  Progress until week 9      

     Progress (schedule)  =  33/44 x 100% = 75.0%                                
     Progress (actual)       =  23/44 x 100% = 52.3%      
                                              75.0 – 52.3 = 22.7%                  
     The progress of work is DELAY @ BEHIND THE SCHEDULE.

What could be the reasons?

What are the impact towards project management?
Who will get involved?
What are the solutions?

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 PROJECT FINANCING

“A financing of a major independent capital investment that the sponsoring company has
segregated from its assets and general purpose obligations”.

“The financing of long-term infrastructure, industrial projects and public services based
upon a non-recourse or limited recourse financial structure, in which project debt and equity
used to finance the project are paid back from the cash flow generated by the project”.

“Project financing is a loan structure that relies primarily on the project's cash flow for
repayment, with the project's assets, rights and interests held as secondary security or
collateral. Project finance is especially attractive to the private sector because companies
can fund major projects off balance sheet”.

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 QLASSIC
Quality assessment
system in construction

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 awang295@[Link]

INTRODUCTION
Quality Assessment System in Construction
(QLASSIC) is a system or method to measure
and evaluate the quality of workmanship of a
construction work based on the relevant
approved standard.
QLASSIC enables the quality of workmanship
between construction projects to be objectively
compared through a scoring system.
QLASSIC are based on standard developed in
Construction Industry Standard (CIS 7:2006) by
CIDB on November 2006.
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OBJECTIVES
To benchmark the quality of workmanship of the
construction industry.
To establish a standard quality assessment
system on quality of workmanship of construction
work.
To assess the quality of workmanship of a
construction project based on the relevant
approved standard.
To be used as a criterion to evaluate the
performance of contractors based on quality of
workmanship.
To compile data for statistical analysis.
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QLASSIC SCOPE
Sets out the standard on quality of workmanship for
various construction elements of building and
infrastructure construction work.
The quality of workmanship of a construction work is
assessed according to the requirement of the relevant
standard and marks are awarded if the workmanship
complies with the standard. These marks are then
summed up to calculate the QLASSIC Score (%) for a
construction project.
QLASSIC assessments are carried out through site
inspection and use the principles of first time
inspection.
Construction works that are rectified after an
assessment will not be re-assessed.
The objective of this principle is to encourage the
contractor to "Do Things Right the First Time and
Every Time".
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QLASSIC 
ASSESSORS
QLASSIC assessment on a construction project
shall be carried out by assessors that have no
interest and any relationship with that project.
All assessors shall fulfill requirements and
undergo training set by CIDB. Only assessors
that pass the training will be registered with CIDB
as qualified QLASSIC assessors.
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Assessment approach
& sampling process
Prior to carrying out the assessment,
construction elements that need to be assessed
are determined through a sampling statistical
approach.
These samples shall be distributed evenly
throughout the project or various construction
stages.
Assessment samples are selected from drawings
and plans of the relevant construction project.
All locations in the construction project shall be
made available for the assessment.
This is to ensure that the selected sample
adequately represent the entire construction
project.
 Assessment 
process
The QLASSIC assessment will be
conducted after the completion of
building construction works and
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before handing over of the

completed project. The whole
process is as shown:
 Who should apply & why?

Who why
No charges for assessment and
Project owner
processing fee for the time being.
Real estate and housing developer
Enables you to benchmark the
Contractor
quality of workmanship of your
Others
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construction project.
Provides you a standard assessment
system for quality of workmanship of
construction work.
Enhances quality control of your
construction work.
Specified as a quality criterion for
contractors performance scorecard.
 qlassic weightage table
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1. Category A (Landed Housing) ‒ Detached, Semi-Detached, Terrace and

Cluster House.
2. Category B (Stratified Housing) ‒ Flat, Apartment, Condominium, Service
Apartment and Town House.
3. Category C (Public Building) ‒ Office Building, School and other related
facilities or buildings intended for public use.
4. Category D (Special Public Building) ‒ Hospital and Airport only.
 qlassic score
distribution (2006-2011)
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Source: CIDB (2012)

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top 10 projects
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top 10 projects
 implementation
(Source: Che-Ani et. al, 2013)

Common Defects of Lavatory Space in Institutions of Higher Learning ‒ An

Analysis of Building Condition Survey.
Lavatory-based facility or lavatory space is an important basic facility of any
building.
Its functional importance as well as additional components and building facilities to
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support its function are the major differences compared to other spaces in a
building.
The uniqueness of lavatory space can be seen after the building is occupied.
At this stage, issues relating to its maintenance would emerge, in public buildings
in particular, including lavatories in higher education institutions.
Due to the presence of the large number of visitors and staff, lavatories in public
buildings and the corresponding high intensity of use, breakdown or malfunction of
lavatories are common.
 implementation
(Source: Che-Ani et. al, 2013)

Hence, use and maintenance of lavatory space is often argues. Cleanliness and
functionality is the main goal of lavatory maintenance.
In the life cycle of lavatory maintenance, certain stages of building inspection are
needed to ensure the physical status of the building.
In a wider context, the theory of building assessment also emphasizes the
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inspection of the building based on appropriate level and performance indicators.

This study was conducted to identify existing building assessment standards as to
develop a conceptual framework for assessing building performance.
Physical inspection was conducted to analyze the current performance of lavatory
spaces in faculty buildings. Inspection of the 66 lavatory spaces have been at
Faculty 1, Faculty 2 and Faculty 3 in the main campus of Universiti Kebangsaan
Malaysia, Bangi, Selangor.
 implementation
(Source: Che-Ani et. al, 2013)

The method used in visual inspection based on the CSP1 Matrix building condition
measurement tool.
Analysis based on the frequency of defects found the connection and damage
factor between the components and elements in lavatory spaces.
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 lavatory space
inspection criteria
An intensive review of related literature was conducted in developing the criteria
for the inspection of lavatory space.
Written resources include six existing building inspection standards were the main
sources of reference: ASTM (2009), CONQUAS (2008), JKR (2009), MALAYSIAN
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STANDARDS (2006), QLASSIC (2006) and RICS (2009).

These were studied to identify the guideline and methods to assist with developing
the criteria.
Lavatory space inspection criteria must be developed in line with the objectives of
the performance assessment, that is, its level of effectiveness, as outlined by the
MALAYSIAN STANDARDS (2006), since the inspection objectives would enable
inspectors to optimize the limited time for on site inspection.
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Table 1
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Table 2
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Table 3
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type of lavatory defect

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defect
lavatory
number of
 basic feedback system
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Source: Preiser & Vischer

 implementation
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A sample of Inspected
Lavatory Plan Tag
Source: Che-Ani et. al (2013)
 a conceptual framework
assessing building performance
Inspection Elements
Structural
Architectural
Mechanical & Electrical
External Works
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PERFORMANCE LEVEL
CRITERIA FOR LAVATORY
Aspect of Inspection/Bench
Marking
Building Services
Maintainability
Safety & Health
Functionality
 examples
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Photographic Box with the Photographic Box with the Photographic Box with the
defects in Yellow Green defects in Red Color defects in Yellow Color
Coded Coded Coded

Source: Che-Ani et. al (2013)

 PERRFORMING QLASSIC ASSESSMENT FOR INDIVIDUAL UNIT AT
KOTA MASAI, PASIR GUDANG BASED ON STANDARD CIS 7
Source: CIDB, 2015

With the house's owners effort for willing to Briefly shared about the background and
provide the platform for the case study. introduced QLASSIC Assessment.

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 PERRFORMING QLASSIC ASSESSMENT FOR INDIVIDUAL UNIT AT
KOTA MASAI, PASIR GUDANG BASED ON STANDARD CIS 7
,Source: CIDB, 2015

Walls meet at right angle. Tolerance at

Inspecting door's conditions.
4mm/30mm using L-Square.

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 PERRFORMING QLASSIC ASSESSMENT FOR INDIVIDUAL UNIT AT
KOTA MASAI, PASIR GUDANG BASED ON STANDARD CIS 7
Source: CIDB, 2015

Inspecting car porch.

Marking the findings along the way. Checking wall's hollowness.

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 SUSTAINABLE DEVELOPMENT 

Preserving the environment while developing the nation to achieve stability in

terms of culture, economic, politic, etc.

Environment Development

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 GREEN CONCEPT 

How to achieve:
RnD Materials
Method of Construction
Architectural Concept 
Law Enforcement 
Etc.

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RENEWABLE ENERGY (RE) 

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EXAMPLE 1

Solar Heat 

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EXAMPLE 2

Ventilation

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EXAMPLE 3

Parking Lot

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 EXAMPLE 4

Design Concept +
Green Technology 
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EXAMPLE 5
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=.='
DO NOT OVERDO IT
 SUMMARY
Activities in scheduling are:

Listed according to WBS 

Presented as a network diagram (that shows
the interrelationship of each activity)
The starting and finishing time for all activities
are shown.
CPM, PERT, Bar Chart

QLASSIC:
To benchmark quality of workmanship.
To establish standard quality assessment.
Tho assess quality of workmanship.
To compile data for statistical analysis.

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ACKNOWLEDGEMENTS
Janidah Eman (UiTMPP)
Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
REFERENCES
Chitkara, K. K. (2014). Construction Project Management. Tata McGraw-Hill
Education.

Knutson, K., Schexnayder, C. J., Fiori, C. M., Mayo, R. E. (2008). Construction

Management Fundamentals (2nd ed.). McGraw-Hill.

O’Brien, J. J., Plotnick, F. L. (2005). CPM in Construction Management (6th ed.).

McGraw-Hill.

Ritz, G. J., Levy, S. M. (2013). Total Construction Project Management (2nd ed.).
McGraw-Hill Education.

Additional notes:

Peterson, S. (2012). Pearson’s Pocket Guide to Construction Management.

Prentice Hall. Chapter 7: Introduction to Construction Management.

Pellicer, E., Yepes, V., Teixeira, J. C., Moura, H. P., Catalá, J. (2013). Construction
Management. Wiley-Blackwell. Chapter 12: Resources Management.

Work Breakdown Structure (2003)

CONTENT DEVELOPERS
 TOPIC 12
CONSTRUCTION SAFETY
MANAGEMENT &
OCCUPATIONAL SAFETY AND
HEALTH ACT 1994 
 LEARNING OUTCOMES (LO)

At the end of this module, students should be able to:

Prepare and plan safe site layout for working environment in construction site.
Identify and discuss the importance of logistic at construction site and safety
management.
Discuss occupation and safety and health management.
Understand the construction safety health regulations.
Explain employer and employee responsibilities.
Assess PPE needs.
 CIDB

SITE PLANNING AND LAYOUT

Site Security
Safe Means of Access
Storage of Materials
Lifting Appliances
Temporary Services
Temporary Structures
Waste Management
Car Park

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 CIDB

SITE SECURITY

To protect the public To prevent children

from site hazards spraying on the site

To provide with suitable

perimeter fencing

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 CIDB

SITE SECURITY
Standard of fencing required for a particular site will depends
on the hazards and environmental conditions of the worksite
as well as its location.

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 CIDB

SITE SECURITY
Some factors to be considered:-

Building height (e.g. more than 1 storey).

Location near shops, offices, schools, residential areas.
Whether the site is vacant outside work hours.
Whether there are any trenches and trench depth.

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 CIDB

SITE SECURITY
Consideration for level of risk:-
High risk – Areas that the public would normally access or
pass through such as inner city areas. It is necessary to
prevent public access to the work site.
Medium risk – Areas with moderate public traffic such as
sub-urban residential areas. It is necessary to restrict access
to the worksite and provide warning of the hazard.
Low risk – Areas with minimal public access such as rural
areas requires a lower level of protection.

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 CIDB

SAFE MEANS OF ACCESS

Safe access and good visibility
Separate pedestrian route
Trained banks man/traffic controller
One-way system
Routes must be maintained in good order
Suitable warning and directional signs

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 CIDB

STORAGE OF MATERIALS
Location of store and storage areas will be determined by:-
The availability of space
The nature of the materials
Any statutory requirements e.g. in relation to highly
flammable materials or explosives.
To suitable off-loading areas and lifting equipment.

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 CIDB

LIFTING APPLIANCES
Physical features on the site, building under construction and
environmental constraints will determine positioning of
cranes, hoist and other lifting appliances.

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 CIDB

TEMPORARY SERVICES
The positioning and marking of temporary services should be
carefully undertaken to avoid possibility of accidental damage.

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 CIDB

TEMPORARY STRUCTURES
Adequate space must be allowed for lighting towers and for
scaffolding and other support work.

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 CIDB

WASTE MANAGEMENT
Rubbish dumping area must be allocated. Arrangements for
regular disposal must be determined particularly for scheduled
waste.

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 CIDB

CAR PARKING
Consideration should be given in parking facilities either on or off-site.

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 CIDB

TEMPORARY TRAFFIC
MANAGEMENT 
INTRODUCTION

As with other potential hazards that may arise in the course of any
construction work, a temporary traffic management must be
developed before commencement of work.
The objective is to safeguard not only workers involved in the
work but also members of the public who might be affected by the
work activities.

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 CIDB

TEMPORARY TRAFFIC
MANAGEMENT 
INTRODUCTION

Consider the following:-

Width of road – is there enough room for traffic and plant to
manoeuvre safely?
Can the road shoulders be used to provide an additional lane?
Traffic density – what will be the likely effects on safety and health
and delays in traffic movements and construction time of the
alternative option?

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 CIDB

TEMPORARY TRAFFIC
MANAGEMENT 
INTRODUCTION

Consider the following:-

Percentage of heavy vehicles – consider seasonal operations.
Terrain – will terrain introduce additional hazards such as curves,
swamp, etc.
Environmental factors – take into account the range of
environmental conditions such as wet conditions, poor visibility and
darkness.

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 CIDB

TEMPORARY TRAFFIC
MANAGEMENT 
PROTECTION OF PUBLIC

Pedestrian detours are clearly defined and pedestrians protected

from the dangers of road traffic when using any detour.
The passage of vehicles across footpaths is to be supervised, to
remove danger to the public.
Flagmen, barriers, sign or traffic lights are used to stop the public
passing under suspended loads (unless there is a protective
gantry).
Excavations are fenced and if they are likely to retain water, need
to be covered and securely fenced to prevent access for children. If
in public places, they should have warning signs and warning lights
at night.

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 CIDB

TEMPORARY TRAFFIC
MANAGEMENT 
PROTECTION OF PUBLIC

Pneumatic tools are to have silencers and piling dollies are to be of

timber or neoprene so that noise is kept to acceptable levels.
If scaffolding must intrude on to footpaths, it is to be clearly marked
and padded if there is any risk of causing injury.
Adequate security of the site is to be provided during non-working
periods.

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 CIDB

TEMPORARY TRAFFIC
MANAGEMENT 
PROTECTION OF WORKERS

Define speed limit.

Minimize the amount of noise workers are exposed through
administrative or engineering control.
Protection for slope/sides of excavation.

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 CIDB

TEMPORARY TRAFFIC
MANAGEMENT 
TRAFFIC DIVERSION PLAN

Depending on the circumstances, movement of traffic may be

achieved in one of these ways:

Through the work site; or

Around the work site; or
Redirected past the work site by detour which may be via an
existing road or side track.
Should meet the standard requirements as stipulated under
“Arahan Teknik Jalan JKR” or relevant local authorities.

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 CIDB

PERSONAL PROTECTIVE
EQUIPMENT MANAGEMENT 
INTRODUCTION

Unless required by the law, PPE should be opted as the last line of
defense after due considerations have been given to other alternative
controls – elimination, substitution, isolate and administrative control.

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 CIDB

PERSONAL PROTECTIVE
EQUIPMENT MANAGEMENT 
INTRODUCTION

Every employer must aware of:-

The need for provision of personal protective equipment.

Training in the use of personal protective equipment.
Standards which apply to personal protective equipment.
Signs to inform persons about personal protective equipment.
The system of control over the supply allocation, maintenance and
repair of personal protective equipment and documentation.

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 CIDB

PPE MANAGEMENT
SELECTION

Every employer should assess the need for personal protective

equipment on the basis of risk.
Once risk has been assessed, personal protective equipment can be
selected according to availability, appropriateness and suitability for
the wearer.

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 CIDB

PPE MANAGEMENT
SELECTION

When selecting personal protective equipment for a particular work

process or series of tasks, consider the following general principles:-
a. Be familiar with the risks of the work process – involve
evaluating the nature of the risk, circumstances and restrictions
of the tasks to be performed.
b. Be aware the acceptable level of the risk to which the worker
may be exposed and hence the performance requirement of the
chosen equipment.
c. Compare performance requirements with the capability of
different types of personal protective equipment.

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 CIDB

PPE MANAGEMENT
SELECTION

d. Ensure that the item chosen is appropriate to the risk.

e. Where several types of personal protective equipment are
required to control multiple risks presented by the one work
process, make sure that the items are compatible.
f. Make sure that the item will fits properly, as “inadequate fit”
can limit an item’s protective capability.
g. Consider workers’ medical conditions which can influence
whether they can use certain items of equipment.

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 CIDB

PPE MANAGEMENT
SELECTION

h. Consider the comfort of the item when choosing equipment.

i. Make sure that the item is worn correctly.
j. Consult with those workers and others who must wear the
equipment when choosing the items.
k. Give preference to items of personal protective equipment
which comply with the relevant standards.

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 CIDB

PPE MANAGEMENT
SELECTION

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 CIDB

PPE MANAGEMENT
MAINTENANCE & STORAGE

Store personal protective equipment in a clean and fully operational

condition.
Storage arrangements should ensure that the equipment is safe from
interference and damage and easily accessible when needed.
Items of personal protective equipment should also be checked
regularly as specified by the manufacturer or supplier.
Repair or discard damaged or defective personal protective equipment.
Institute a program to ensure that personal protective equipment is
being properly maintained.

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 CIDB

PPE MANAGEMENT
MAINTENANCE & STORAGE

As part of the maintenance program, determine and record:-

a. Maintain duties and responsibility

b. Designation of personnel
c. Storage procedures
d. Cleaning procedures
e. Checking procedures
f. Information about the duration of protection from gloves, respiratory
canisters etc.
g. Criteria for replacement.

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 CIDB

SAFETY SIGNAGE  
INTRODUCTION

With the multi background of construction workers, safety signs play

vital role in disseminating information and instruction to the workers and
others.
The purpose of hazard and safe signs is to draw attention to objects and
situation which may affect or could affect safety or health.
Unfortunately, the safety signs being used on most construction sites
are of various types and standards.

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 CIDB

SAFETY SIGNAGE  
COLOURS AND DESIGNS

Safety colour – A colour to which a specific safety or health meaning or

purpose is assigned.
Contrasting colour – A colour that contrasts with the safety colour in
order to make the latter more conspicuous.
Symbols – A pictorial representation used on a safety or health sign.
Safety Signs – A sign that gives a message about safety and health by
a combination of geometric form, safety colour and symbol or text or
both.
Prohibition signs – A safety sign that indicates that certain behavior is
prohibited.

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 CIDB

SAFETY SIGNAGE  
COLOURS AND DESIGNS

Warning signs – A safety signs that gives warning of a hazard.

Mandatory Signs – A safety sign that indicates that a specific course of
action is to be taken.
Safe Condition Signs – A safety sign that provides information about
safe condition.
Supplementary Signs – A sign with text only that may be used in
conjunction with a safety signs in order to provide additional information.

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 CIDB

SAFETY SIGNAGE  
COLOURS AND DESIGNS

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 CIDB

SAFETY SIGNAGE  
DANGER SIGNS

If identification is required of places where there is risk of collision,

falling, stumbling, falling objects or where there are steps, holes in floor
or similar hazards.
Combination of fluorescent orange-red or warning colour yellow in either
black case.

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 CIDB

SAFETY SIGNAGE  

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 THE OCCUPATIONAL
SAFETY AND HEALTH ACT
1994 
The Occupational Safety and Health Act 1994 (Act
514) is a piece of Malaysian legislation which has
been gazetted on the 25 February 1994 by the
Malaysian Parliament.

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 OSHA 1994 (ACT 514)
CONTENTS

PART I PRELIMINARY
PART II APPOINTMENT OF OFFICERS
PART III NATIONAL COUNCIL FOR OCCUPATIONAL SAFETY AND
HEALTH
PART IV GENERAL DUTIES OF EMPLOYERS AND SELF-EMPLOYED
PERSONS
PART V GENERAL DUTIES OF DESIGNERS, MANUFACTURER AND
SUPPLIERS
PART VI GENERAL DUTIES OF EMPLOYERS
PART VII SAFETY AND HEALTH ORGANISATIONS
PART VIII NOTIFICATION OF ACCIDENTS, DANGEROUS
OCCURRENCE, OCCUPATIONAL POISONING AND OCCUPATIONAL
DISEASES AND INQUIRY

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 OSHA 1994 (ACT 514)
CONTENTS (cont'd)

PART IX PROHIBITION AGAINST USE OF PLANT OR SUBSTANCE

PART X INDUSTRY CODES OF PRACTICE
PART XI ENFORCEMENT AND INVESTIGATION
PART XII LIABILITY FOR OFFENCES
PART XIII APPEALS
PART XVI REGULATIONS
PART XV MISCELLANEOUS

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FIRST SCHEDULE (OSHA)
Manufacturing
Mining and Quarrying
Construction
Agriculture, Forestry and Fishing
Utilities:
‒ Electricity
‒ Gas
‒ Water
‒ Sanitary Services

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FIRST SCHEDULE (OSHA) -cont'd
Transport, Storage and Communication
Wholesale and Retail Trades
Hotel and Restaurants
Finance, Insurance, Real Estate and Business Services
Public Services and Statutory Authorities

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 THE FACTORY AND
MACHINERY
ACT 1967
The Factory and Machinery Act 1967 (Act 139) is a
piece of Malaysian legislation which was enacted in
1967 as Act No. 64 of 1967 and revised on April 1,
1974 as Laws of Malaysia Act 139. The Act was
gazetted on February 1, 1970.

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 THE FACTORY AND
MACHINERY
ACT 1967
The principle of the act is "An Act to provide for the control of
factories with respect to matters relating to the safety, health
and welfare of person therein, the registration and inspection
of the machinery and for matters connected therewith".

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 THE FACTORY AND
MACHINERY
ACT 1967
The jurisdiction of the Act only covers less than 20 percent of
all working areas in Malaysia, the Malaysia government has
enacted the Occupational Safety and Health Act 1994 which
covers almost all areas of work within Malaysia.

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 The list of regulations under this Act are:  

1. Occupational Safety and Health (Employers' Safety and

Health General Policy Statements)(Exception) Regulations
1995
2. Occupational Safety and Health (Control of Industry Major
Accident Hazards) Regulations 1996
3. Occupational Safety and Health (Safety and Health
Committee) Regulations 1996
4. Occupational Safety and Health (Classification, Packaging
and Labeling of Hazardous Chemicals) Regulations 1997

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 The list of regulations under this Act are:  

5. Occupational Safety and Heath (Safety and Health Officer)

Regulations 1997
6. Occupational Safety and Health (Prohibition of Use of
Substance) Order 1999
7. Occupational Safety and Health (Use and Standards of
Exposure of Chemicals Hazardous to Health) Regulations
2000
8. Occupational Safety and Health (Notification of Accident,
Dangerous Occurrence, Occupational Poisoning and
Occupational Disease) Regulation 2004

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 THE OCCUPATIONAL
SAFETY AND HEALTH ACT
1994 
The principle of the Act is "An Act to make further provision
for securing that safety, health and welfare of persons at
work, for protecting others against risks to safety or health in
connection with the activities of persons at work, to establish
the National Council for Occupational Safety and Health and
for matters connected therewith".

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 Part I ‒ Interpretation 

Section 3
“Contract of service” – any agreement whether in oral or in writing and
whether express or implied, whereby one person agrees to employ
another as an employee and that other agrees to serve his employer as an
employee and includes an apprenticeship contract.
“Council” – the National Council for Occupational Safety and Health
established under Section 8.
“Industry” – the public services, statutory authorities or any of the
economic activities listed in the First Schedule.
“Employer” – means the immediate employer or the principal employer or
both.
“Occupier” – in relation to a place of work, means a person who has the
management or control the place of work.
“Place of work” – means premises where persons work or premises used
for the storage of plant or substance.

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 Part I ‒ Interpretation (cont'd) 

Section 3
“Premises” – includes any land, building or part of any building; any
vehicle, vessel or aircraft; any installation on land, offshore installation or
other installation whether on the bed of or floating on any water and any
tent or moveable structure.
“Self-employed person” – an individual who works for gain or reward
otherwise than under a contract of employment or not he himself employs
others.
“Plant” – includes any machinery, equipment, appliance, implement or
tool, any component thereof and anything fitted, connected or appurtenant.
“Substance” – any natural or artificial substance whether in solid or liquid
form or in the form of a gas and vapour or any combination.
“Trade union” – any association or combination of workmen or employers
within the meaning of the Trade Unions Act 1959.

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 Part II ‒ Objectives of the Act

Section 4 ‒ Objectives of the Act:-

To ensure the safety, health and welfare of persons at work.
To protect person at a place of work other than persons at work.
To promote an occupational environment for persons at work which is
adapted to their physiological and psychological needs.
To provide the means towards a system of regulations and approved
industry codes of practice.

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 Part III ‒ General Duties of Employers
and Self-Employed Persons

Section 15 ‒ As far as practicable

Ensure the safety, health and welfare of all workers while at work
This includes:
a) Making arrangements and maintenance of plants and work
system.
b) Making arrangements for the use, handling, storage and
transportation of the plant and substances (materials).
c) Provision of information, instruction, training and supervision.
d) Provide and maintain workplace / access routes to and from
work areas.
e) Provide and maintain work environment with adequate welfare
facilities.

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 Part III ‒ Worker Interpretation 

Section 15 ‒ Additional Provision

Includes: Independent contractor engaged by an employer or a self

employed person and any employees of the independent contractor.

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 Part III ‒ General Duties of Employers
and Self-Employed Persons

Other duties
Section 16 - Formulate a written Safety and Health Policy.
Section 17(1) - Conduct operations without endangering the safety of
others – non-workers and public.
Section 17(2) - Provide information to others on business operations.
Section 18 - An occupier of non-domestic premises shall take measures to
ensure that the place of work is/are safe and without risks to health to the
persons other than his employees.
Section 19 – A person who contravenes the above section shall be guilty
of an offence and shall on conviction be liable to fine not exceeding RM
50K or imprisonment for a term not exceeding 2 years or to both.

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 Part III ‒ General Duties of Employers
and Self-Employed Persons

Importance of a Safety and Health Policy

Long term objective.
Continuous commitment at all levels of management.
Delegation of task at lower management levels.

Importance of a Safety and Health Policy

Safety must be given priority in all daily work activities.
Safety is to be integrated into all daily work activities.
Safety of workers and others (visitors, guests, outsiders) are of utmost
priority.
The company will do anything in its power to avoid and prevent
accidents.

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 Part IV ‒ General Duties of Employees

Section 24
Ensure personal safety and that of others.
Cooperate with employer and others.
Properly wear and /or use personal protective equipment that are
provided.
Comply to any safety instructions.

Section 25
An Employee:
‒ Who intentionally, recklessly or negligently interfere of misuse
anything provided or done in the interest of safety, health and
welfare in pursuance of the Act shall be guilty of an offence.

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 Part IV ‒ General Duties of Employees

Section 26
The employer may not charge employees for things done or provided in
pursuance of this Act.

Section 27
Employer/Trade Union may not discriminate – dismiss, injure or change
position of any employee who makes complaint that he is not safe or is
risk to health and also exercises his functions as a member of the Safety
and Health Committee.

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 Part V ‒ Safety and Health Officer

Section 29
Specific industries gazetted.
Employ a competent person to act as a safety and health officer.
Specific responsibilities to ensure compliance to the Act and promotion of
safe work.
Qualification and training requirements.

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 Part V ‒ Safety and Health Committee

Section 30
To be established if:
‒ There are 40 or more workers.
‒ Instructed by Director General.
Membership, selection and appointment as prescribed.
Consultation with employer

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 Part V ‒ Safety and Health Committee Functions

Section 31
To review all safety and health measures that have been taken.
Investigate issues concerning occupational safety and health and bring
to attention of employer.
Other functions may be determined.

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 Part VI ‒ Notification of accidents, dangerous
occurrence, occupational poisoning & diseases
& inquiry. 

Section 32
Employers to inform the nearest Department of Safety and Health
office (DOSH).
Registered Medical Practitioners should report to the Director General.

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 SUMMARY

Site planning and layout involving a site security, safe means of access,
storage of materials, lifting appliances, temporary services and structures,
waste management and car park.
The factor to be considered in temporary traffic management is width of
road and traffic density, percentage of heavy vehicles, terrain and
environmental factors.
Safety signage and protection for workers and public.
Occupational Safety and Health Act 1994.

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ACKNOWLEDGEMENTS

Janidah Eman (UiTMPP)

Nur Muizzah Nawi (UiTMJ)
Muhammad Isha Ismail (UiTMP)
Noor Raifana Ab Rahim (UiTMJ)
 REFERENCES
Chitkara, K. K. (2014). Construction Project Management. Tata McGraw-Hill
Education.

Griffith, A., Howarth, T. (2000). Construction Health and Safety Management.

Pearson Education Limited.

Levy, S. M. (2012). Project Management in Construction (6th ed.). McGraw-Hill.

Ritz, G. J., Levy, S. M. (2013). Total Construction Project Management (2nd ed.).
McGraw-Hill Education.

Additional notes:

Pellicer, E., Yepes, V., Teixeira, J. C., Moura, H. P., Catalá, J. (2013). Construction
Management. Wiley-Blackwell. Chapter 9: Health and Safety Management.

Safety Management in the Construction Industry: Identifying Risks and

Reducing Accidents to Improve Site Productivity and Project ROI (2013)
CONTENT DEVELOPERS