UNIVERSITI TEKNOLOGI MARA

SCHOOL OF CONSTRUCTION AND QUANTITY SURVEYING

COLLEGE OF BUILT ENVIRONMENT

BACHELOR OF QUANTITY SURVEYING (HONS)

UITM SERI ISKANDAR, PERAK

BQS559

ASSIGNMENT 1

COURSE : PROFESSIONAL PRACTICES I

COURSE CODE : BQS559
GROUP : CFAP224 4B
DATE OF ISSUE : WEEK 5
DATE OF SUBMISSION : WEEK 13
PREPARED FOR : PROFESOR MADYA SR DR. YUHAINIS BT ABDUL
TALIB

PREPARED BY:

NAME STUDENT ID
ABDIN ASHRAF BIN ZULKEFLI 2023190149
ALIFF HAIQAL BIN MOHD OTHMAN 2023503035
HAIQAL RASYAD BIN KAMAROLZAMAN 2023583423
MUHAMAD IRFAN BIN MOHD YUSOFF 2023131671
MUHAMMAD AMIRUL IRFAN BIN MOHD SAYUKI 2023116209
MUHAMMAD FARHAN BIN AHMAD SHUKRI 2023389177
 TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION ........................................................................................................ 1

CHAPTER 2: LITERATURE REVIEW ............................................................................................ 3

2.1 System Procurement ..................................................................................................................... 3

2.2 The Involvement of Quantity Surveyors in Public-Private Partnerships (PPP) Plays A

Significant Role .................................................................................................................................. 9

2.3 Contractual Relationships ........................................................................................................... 10

2.4 System Tendering ........................................................................................................................ 12

2.5 Process of System Tendering ...................................................................................................... 14

2.6 Contract of Form ......................................................................................................................... 16

CHAPTER 3: RESEARCH METHODOLOGY ............................................................................. 18

3.1. Data Collection Method ........................................................................................................ 18

3.2. Literature Study .................................................................................................................... 20

3.3. Observation ........................................................................................................................... 21

CHAPTER 4: CASE STUDY............................................................................................................. 22

4.1 Background of the Project .......................................................................................................... 22

4.2 Procurement System Practice...................................................................................................... 27

4.3 Tendering System ........................................................................................................................ 29

4.4 Process of Tendering System Practice in Public Project ............................................................. 32

4.5 Form of Contract Used................................................................................................................ 34

4.6 Method of Evaluation of Tender ................................................................................................. 36

4.7 Preparation of Tender Report ...................................................................................................... 41

CHAPTER 5: CONCLUSION........................................................................................................... 46

REFERENCES .................................................................................................................................... 48
CHAPTER 1: INTRODUCTION

Tendering is a competitive procurement process that is used to select a main contractor

or supplier for a construction project. In some countries, tendering is also known as bidding
(Gamboa, 2023). The most crucial things covered by the contractor's offer are the mode of
operation, the duration of construction, and the total cost of the contracts. The contractor will
typically receive the full set of drawings to submit a bid, and QS Consultant will need to provide
its own priced BQ. However, for certain projects, clients can submit a full range of quantity
BQs; the contractor only needs to provide a price for them. The contractor that provides the
most accurate or even closest estimation to the consultant would be most likely to be selected.
This is because, if the contractor proves low price or inaccurate estimates, it will lead to a bad
contract results and variations will be expected. On the contrary with where the bidding
overestimates, the client would have sustained a loss due to the contractor’s high benefit mark.

Estimates are proprietary to all parties and are only to be discussed between the Client
and the Contractor. The contractor that tenders will then be reviewed by Quantity Surveyor
consultancy and the tendering process will then be evaluated. The work done are based on a
variety of work parameters, such as tendering terms, financial position, calculation, mistake in
pricing, pricing system and simple price list. In prior to that, it is not limited to these criteria,
the determination is often based on technological and economic criteria.

Moreover, the tenderer sent out a response to the offer to tender made by the customer.
The invitation to tender may vary depending on the type of tendering used. Popular tendering
procedures are open tendering, selective tendering, negotiated tendering. Different tendering
has their own different ways of appointing a contractor. It sets out the criteria for the contractor
to be able to participate. Specifically, the standard of contractor. For example, purpose, if the
commercial just discusses G7 and G6 contractors and if other grade of contractors stated tries
to join the bidding phase, they will immediately be refused without undertaking an assessment
process. For open tendering, the customer will settle about the date and time of the closure of
the tender, so that the tender is sent on a specific time and date, failure to do so the tender will
immediately be rejected. Next, Quantity Surveyor consultancy will come up with a short-listed
eligible contractor, usually based on previous result and experience. For selective tendering.
Throughout this tender, contractors have about the same likelihood of being picked and it is

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difficult to find the most desirable contractors, because all contractors would reach the most
desirable amount.

The process is different for the negotiated tenderer. When dealing with a contracted
tenderer, the client approaches one of the selected contractors and requests that they submit the
quote. It is frequently employed in situations where there is a deadline or an urgent task
requirement. Given that not every vendor is able to participate in the project, negotiated
tenderers may face discrimination. This article offers a case study centred on real projects along
with a review of the literature on the three main tendering procedures. Selective tendering was
the method of tendering employed in the case study. This case study used open tendering as a
tendering method. This article addresses the procedure of the contracting system, whether
traditional, design and build, turnkey or otherwise, the mode of use of the contract, the process
of tender appraisal, the preparing of the tender report and the award of contract.

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CHAPTER 2: LITERATURE REVIEW

2.1 System Procurement

Most governments and international financial organizations possess procurement

regulations that must be adhered to. These regulations aim to foster genuine and transparent
competition in the processes of tendering and contract allocation, ensuring open meetings,
impartial information exchange, and thorough monitoring and auditing of all procedures and
implementation activities. As part of the preparatory phase before initiating any tender, the
purchasing agency requires a realistic cost estimate for the structure, based on a high-quality
design and costing procedure.(Rashid, 2006) stated that, to accomplish this, an engineer
(referred to as "The Engineer") is selected and engaged to conduct the initial work and
subsequently oversee the contractor, ensuring adherence to the plan and maintaining the
highest possible quality throughout all activities. The confidentiality of this estimate is crucial,
and no connections between individuals possessing this information and the bidding process
should exist. In the event of significantly divergent bids during subsequent rounds of bidding,
concerns regarding the legitimacy of the bids should be addressed. Underestimation by bidders
may lead to subpar contract performance, necessitating revisions and modifications as the
contract progresses. On the other hand, overestimation may signal overpricing, cartel
associations, or unrealistic bids. Decision-making criteria must be clearly defined, rational, and
objective at all stages, with documentation as needed, leaving no room for discretion, especially
during bid review and comparison.

While the encouragement of prequalification for large contracts or a series of minor

contracts is endorsed, caution is advised to prevent potential cartel formation. This
prequalification process should be grounded in professional competence, encompassing
personnel and equipment, relevant experience, financial capability, and integrity. Contractors
or consultants with recent convictions related to their work or those disbarred due to improper
financial activities or an inability to fulfil contracts should not be eligible for prequalification.
Jaafar and Nuruddin (2012) stated that conducting a more comprehensive examination of the
Malaysian procurement processes that impact project performance negatively. Initially, this
investigation scrutinized the procedure of the procurement system and drew comparisons with
the practices of other nations. Timely submission of bidding and contract documentation,
encompassing all essential survey and design tasks for quantity calculations and pricing

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estimates, is of utmost importance. When seeking financial support from international lending
institutions or donors, strict adherence to their standards is mandatory. Commencing this
process by obtaining sample advertising materials and documents from such organizations is
advisable. The preparatory phase involves securing land and water rights, conducting
comprehensive environmental impact assessments, and formulating any necessary
compensation or relocation plans. These prerequisites must be fulfilled before obtaining
approvals and permits for dam construction. In many regions, construction activities are
constrained to the dry season due to lower river levels, improved site access, and the availability
of effective moisture control for compaction. Rahman (2014) conducted that, to align with
these seasonal considerations, it is recommended that the design and tendering processes take
place during the wet season, concluding by the onset of the subsequent dry season. This ensures
readiness for the mobilization of plant and equipment as the ground begins to dry. Undertaking
tasks such as clearing access roads, felling and removing trees, and stripping foundation
sections is typically more advantageous before the ground reaches full dryness. The transition
from one rainy season to the commencement of the next dry season represents an opportune
timeframe for these activities.

Due to numerous influencing factors, the selection of a project procurement method

becomes intricate. Elements such as time, complexity, quality standards, pricing certainty, task
delegation, risk distribution, and adaptability for changes all contribute to determining the
optimal procurement technique. These factors are crucial considerations for both clients and
consultants when deciding on the most suitable procurement approach for their projects. It is
imperative to acknowledge that an inadequate procurement strategy can result in unfavourable
consequences, including project cancellation and customer dissatisfaction. This can lead to
both time and cost overruns, as well as a decline in the overall quality of the project.
Consequently, the decision to choose a procurement technique is pivotal for clients, as making
an inappropriate choice may lead to project failure.

Prior to finalizing a procurement strategy, it is crucial to take into account the

characteristics and objectives of the clients involved in the construction project. The range of
customer profiles has expanded, leading to a distinct division between those categorized as
limited clients and those identified as large, regular, or experienced clientele. This divergence
has become quite evident. For instance, smaller and irregular clients within the construction
industry are less inclined to support advancements in the field, and initiatives like the
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movement for Innovation (M4II) do not resonate with them. Appeals for clients to champion
best practices from contractors and suppliers often carry little influence over smaller clients
who wield relatively less power in the industry. Additionally, distinctions can be observed
among clients who consistently make requests for building projects of comparable value and
nature. Ismai (2014), stated that, despite the allure of reverting to a previously successful
procurement strategy, clients find themselves navigating a intricate landscape shaped by a
myriad of variables influencing their purchasing decisions. These influential variables can be
categorized into three distinct domains: the inherent qualities of the stakeholders involved, the
distinctive characteristics of the project at hand, and the dynamic components of the external
environment within which these procurement choices unfold. Given the intricate and multi-
faceted nature of decision-making in procurement, researchers have delved into the underlying
selection factors that drive the choice of construction procurement techniques. Their
endeavours go beyond mere observation, extending to the creation of sophisticated tools and
procedural frameworks aimed at facilitating and expediting client decision-making. These tools
and processes are specifically designed to furnish clients with the insights and analytical
acumen necessary for making well-informed procurement choices.

Competitive bidding stands out as the prevailing method for awarding contracts to
potential contractors. This widely adopted approach commonly takes the form of descending
first-price sealed-bid auctions, wherein the project is awarded to the contractor submitting the
lowest bid at their specified price. Adnan (2018), discovered that, despite the enduring
popularity of this strategy due to its emphasis on cost efficiency, scholars have increasingly
underscored the importance of construction clients incorporating a broader spectrum of
characteristics into their assessment of contractor proposals. Researchers advocate for
construction clients to delve into multiple contractor selection attributes during the proposal
evaluation process, extending beyond a sole focus on the provided cost. These criteria
encompass an array of factors, including the contractor's track record, expertise, reliability,
adherence to deadlines, and overall project management skills. By broadening the scope of
assessment beyond the financial element, clients can make more informed selections that
prioritize not only cost-effectiveness but also ensure the choice of contractors aligned with the
unique needs and intricacies of the construction project at hand.

The sophisticated examination of varied criteria in contractor selection is poised to play

an increasingly pivotal role in shaping the future of construction procurement as the industry
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continues to adapt and refine its methodologies. In the quest to optimize the efficiency of
procuring construction services, clients are faced with the imperative of not only establishing
criteria for assessing bids but also carefully considering various elements in their bidding
methodology. Beyond bid assessment, several factors come into play to streamline the
procurement process. Here are some notable examples:

1) Choice of Bidding Approach

Clients must deliberate on whether to adopt an open bidding system or a selective one. Open
bidding allows any qualified contractor to submit a bid, promoting a broader competition pool.
On the other hand, selective bidding involves inviting pre- qualified contractors, offering a
more controlled and targeted approach. The selection of the most suitable method depends on
the specific needs, scale, and complexity of the construction project.

2) Bid Categorization
Clients need to determine how bids should be classified to ensure clarity and consistency in the
evaluation process. Categorization may be based on project size, scope, or other relevant
parameters. This step aids in organizing and comparing bids effectively, facilitating a more
systematic assessment of each proposal's merits.

3) Information Disclosure to Bidders

Defining the extent of information to be disclosed to interested bidders is a critical aspect of
the bidding process. Clients need to strike a balance between providing sufficient details to
ensure a comprehensive understanding of project requirements and maintaining a fair
competitive environment. Clear guidelines on the information to be shared contribute to
transparency and equitable treatment of all participating contractors.

For clients in the public sector, these aspects are often well-structured, with defined
procedures and readily available information accessible through government agency websites.
However, it is crucial to acknowledge that these elements may vary among different clients,
particularly in the private sector or across diverse industries.

Traditionally, time is gauged by measuring the duration from a project's commencement

to its conclusion. The significance of the completion date is contingent on factors like revenue
generation or the need for adequate space within a specified timeframe. Consequently,
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conducting a realistic assessment of the project's duration early in the planning process
becomes crucial. Continuous monitoring of the schedule is imperative throughout the design
and construction phases. While some clients may prioritize initiating the project promptly,
others may prefer extending the development phase to minimize disruptions to their existing
operational facilities (Rooke, 2004). Additionally, certain clients aim to keep the project
duration as brief as possible to expedite returns on financial and other investments, potentially
reducing cumbersome financing costs. Client preferences play a pivotal role in shaping the
temporal aspects of a project. While some clients may prioritize the swift initiation of the
project, appreciating the potential for accelerated income generation, others may opt for a more
extended development phase. The latter choice often stems from a desire to minimize
disruptions to existing operational facilities, suggesting a strategic balance between progress
and continuity.

It is noteworthy that the advantages of a more sophisticated project accrue more

significantly to clients in the private sector rather than those in the public domain. This
distinction arises from the fact that public clients typically prioritize project efficiency over
project prominence. On the other hand, private clients exhibit a preference for increased project
complexity, as their primary objective lies in enhancing the project's credibility and perceived
value. This nuanced understanding of the impact of project complexity on client preferences
underscores the importance of tailoring procurement strategies to align with the unique goals
and priorities of the entities involved. Tadelis (2006), stated that the importance of the
construction project's quality plays a crucial role in determining the most suitable procurement
method. It is essential to note that the procurement method has a limited impact on the overall
quality, as it relies more on the client's familiarity with various procurement processes and the
reliability of contract documents provided by developers and consultants. Quality, in this
context, refers to how well a set of inherent characteristics aligns with the client's expectations.
Although quality is inherently subjective, there exists the potential for a more objective
evaluation.

Specifically, the quality of construction work is addressed by contract terms and technical
standards. When it comes to procurement procedures, public clients prioritize quality more than
private clients, likely due to the government's support for initiatives and a focus on the
reliability of completed projects. Quality is emphasized as a fundamental aspect of government
initiatives such as hospitals, schools, laboratories, and military facilities. Conversely, private
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clients may place less emphasis on quality, with their main priorities revolving around value
for money, timeliness, and operational efficiency. It is crucial to acknowledge that the
performance of the building will be meticulously documented and monitored during the
construction phase, reflecting the construction industry's increasing emphasis on accountability
and transparency. This thorough exploration of the importance of quality in procurement
strategy underscores the need for a nuanced approach that aligns with the specific goals and
priorities of both public and private clients. Robinson, (2007), conducted that construction
projects inherently entail various risks and uncertainties due to their intricate nature,
involvement of multiple stakeholders, and extended production timelines, underscoring the
importance of minimizing risks. Understanding the intentional transfer or exchange of risks
between firms or between a client and another organization is crucial. Public clients generally
view risk avoidance as an average and less critical requirement, potentially influenced by their
constrained construction spending, constituting a small fraction of their annual revenue,
particularly in government-exposed entities at both federal and local levels. Conversely, private
clients consider risk avoidance a vital element for project success, with a specific emphasis on
mitigating financial risks.

The pivotal aspect of this procurement approach is the delegation of responsibility for
all construction tasks to the contractor. The contractor bears exclusive responsibility for the
contract's processes, encompassing the quality of materials and workmanship. This method
requires a comprehensive bidding process to ensure the thoroughness of the work and to allow
tenderers to review documents, visit the site, and submit proposals. Despite its time-consuming
nature, it instils confidence in the client that entering a construction contract will yield financial
benefits. When time and financial constraints are not limiting factors, the design team has the
latitude to develop the design. This approach excels in terms of performance, aesthetic appeal,
and technical excellence. The traditional method is often suitable for straightforward, small to
medium-sized projects when time is not a critical factor. Challenges may arise if necessary,
adjustments pose obstacles to the contractor's ability to prevent delays and deliver value
(Kusumarukmi, 2019). Tenders for this procurement system are solicited using one of three
methods: open tendering, selective tendering, or negotiated tendering, providing the client with
options for obtaining a completed service.

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2.2 The Involvement of Quantity Surveyors in Public-Private Partnerships (PPP) Plays A
Significant Role

Participants in the construction sector, including clients, design experts, construction

professionals, and operations teams, are actively involved, especially in projects like Public-
Private Partnerships (PPP) or Private Finance Initiatives (PFI). Crucial roles in the initial client
engagement and project design and construction are played by civil, electrical, and mechanical
engineers, building engineers, quantity surveyors, and architects. Architects specialize in
creating and modifying architectural designs throughout the construction process to meet client
and regulatory requirements. Building engineers assess the structural strength and stresses of
potential constructions, while civil engineers focus on public infrastructure projects such as
highways, dams, and bridges. Mechanical and electrical engineering, referred to as services
engineering, are integral components of modern construction and contribute significantly to
overall project expenditure (Kumar, 2014)

Quantity surveyors are indispensable members of the building supply chain, handling
cost management, procurement, and contractual matters. They offer financial advice on client
needs and stakeholder actions, continually analyzing and revising estimates and contractual
responsibilities as the building progresses. Some firms specialize in building engineering
services, while others focus on architectural aspects, civil engineering, and oil and gas projects.
The integration of engineering services into buildings has given rise to terms like 'M&E
Quantity Surveyors,' denoting surveyors capable of advising on building engineering services.
Specific colleges provide degrees in construction services quantity surveying, aiming to equip
students with a solid understanding of building services quantity surveying principles and
methodologies (Llale, 2015). The ongoing discussion questions the necessity of such degrees,
considering that quantity surveyors typically possess a strong understanding of building cost
dynamics. Recent research indicates an expansion in the type and extent of services provided
by quantity surveyors, with increased involvement in building services engineering
procurement. This evolution challenges established perceptions of quantity surveyors and
raises questions about the significance of specialized degrees in the industry.

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2.3 Contractual Relationships

The forthcoming trajectory of the construction industry is anticipated to be shaped by

relationship-oriented methodologies, particularly in the establishment of cooperative and
collaborative endeavors. Transitioning from a project-centric mindset to a more strategic and
enduring perspective necessitates a comprehensive overhaul of company processes and
strategies (Marina 2012). The underlying premise driving these interactions is the cultivation
of a more robust client focus. Organizations forge alliances with counterparts to construct a
synergistic value chain, thereby enhancing business agility. However, it is imperative to
acknowledge that the successful implementation of such tactics requires a cultural shift and
cannot be accomplished solely through the enforcement of new contract terms. Despite notable
achievements, the outcomes in terms of performance have been varied, prompting the
realization that a more effective implementation approach is necessary to align with
governmental, industry, and project goals. Consequently, there is an urgent need to delve into
the human skill sets, contractual prerequisites, organizational structure, and leadership traits
required for the successful deployment of relationship management.

Construction project teams operate as intricate entities shaped by the intricate

integration of numerous components, involving individuals from various disciplines, each
endowed with distinct duties, responsibilities, goals, and objectives. Consequently, the
significance of collaboration and cooperation becomes evident, as the exchange of timely and
accurate information among participants serves to mitigate errors, reduce time delays, and
disrupt the recurring cycle of extensive rework. The advantages of fostering collaborative, as
opposed to adversarial, working relationships within construction organizations have been
extensively documented (Marina 2012). The establishment of relational patterns of interaction
characterized by high levels of trust is crucial for the success of joint ventures. However, the
construction industry's history of mistrust hampers the full realization of the advantages of
teamwork, necessitating a cultural transformation to achieve a continuous trend toward
improved collaboration among stakeholders.

Relationship contracting, grounded in long-term relationships and trust, has the

potential to create a win-win scenario for both the client and the contractor. The degree of trust
experienced between businesses is directly correlated with the duration of their partnership.

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Given the inherent volatility of the market, trust emerges as a critical component in the
construction industry. While partnership arrangements have faced criticism for allegedly
favoring customers over contractors, contractors may incur additional expenditures to establish
strong relationships with clients, enhancing their prospects for future engagements (Gavin
2022). Despite potential challenges, the ongoing involvement of contractors may be associated
with global reform aspirations, with cooperation emerging as a criterion for pre-qualification
in recent years. Relationship management, on the other hand, benefits not only customers but
also contractors, increasing the likelihood of future business engagements. Maintaining a
robust working relationship to nurture a long-term business partnership result in lower bidding
costs due to reduced transaction expenditures, benefiting both the customer and the vendor.

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2.4 System Tendering

Acknowledge the increasing trend among contractors to submit competitively tendered

proposals with misleadingly low or underpriced bids, particularly in the context of the Design
and Build (D&B) procurement process. Consequently, adjustments to the contract are
necessary to accurately represent the true scope of the operations. In such instances, contractors
rely on change orders and scope revisions to compensate for lost profits through price increases
for additional work. Change, defined as any modification to the scope, duration, cost, or quality
of contractual works, is an inevitable aspect of construction, albeit one that the customer finds
unpleasant. These modifications and the associated cost increases are essential to align the
contract total with the actual value of the employer's needs, surpassing the previously
authorized scope during the bidding stage (Martin,2020) The RIBA plan of works provides a
detailed outline of the entire construction process. The inclusion of Stage 0—Strategic
Definition aims to enhance fundamental design stages by confirming customer requirements.
According to the RIBA Plan of Work, design adjustments should primarily occur during stages
1-4, with site-related concerns addressed at stage 5. Nevertheless, current research
acknowledges that changes occur frequently throughout the building phase, underscoring the
need to understand the causes and implications of changes to develop effective mitigation
techniques.

Gabriela (2019) conducted that the origins of alterations can be linked to the
overarching issue of an inadequately detailed brief and design during the initial phases of the
project. This significantly affects contractors' bidding proposals, leading to modifications and
cost increases throughout the execution phase to address the flawed project brief (ibid).
Additionally, the client consultant team often finds itself in unfamiliar territory, with designers
presenting impractical concepts due to a lack of technical construction knowledge, and PQSs
providing cost estimates without understanding or considering the sequencing and feasibility
of the works (ibid). Consequently, early cost estimates for clients are typically inaccurate, and
the project's budgetary guidance tends to be lower than the actual cost of carrying out the works.

The realm of public-sector initiatives is fraught with numerous challenges, contributing

to the intricate nature of the project. These endeavors demand a significant degree of social
engagement, as well as adept maneuvering through stringent laws and regulatory limits, the
coordination of a diverse workforce, and strict adherence to an inflexible procurement

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approach. Given that the intricacies of public- sector operations surpass those encountered in
the private sector, a nuanced and strategic approach becomes imperative.

Furthermore, a compelling revelation surfaces when juxtaposing consumer behavior in

the private and public sectors. Consumers within the private sector often exhibit a degree of
hesitancy, opting to employ their independently devised bidding techniques. As stated by Qusef
(2019), this proclivity for autonomy in approach mirrors the more adaptable dynamics
prevalent in private enterprises. In contrast, the public sector introduces a distinct dynamic
where the primary focus shifts to the project bid price. The heightened scrutiny in this context
is attributed to the inherent sense of civic responsibility associated with programs funded by
the public. Consequently, the public sector bidding process becomes intricately intertwined
with considerations extending beyond the local project boundaries, incorporating broader
social implications. It is crucial to underscore that in emerging nations, the disparities in
thinking and objectives between the public and private sectors become increasingly apparent.
The specific challenges and responsibilities faced by each sector play a pivotal role in shaping
their distinct goals and objectives within the expansive landscape of project management and
developmental endeavors.

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2.5 Process of System Tendering

This undertaking represents a concerted effort to mitigate redundant processes, curb

wasteful practices, and expedite timelines for contracting agencies. The primary objective is to
create an environment that fosters more accessible competition for public sector contracts, with
a particular emphasis on enhancing opportunities for smaller providers. Adi (2019) stated that
clients wield a pivotal role in the intricate tapestry of the bidding process. Their involvement
spans the identification of demands for goods and services, the diligent search for organizations
adept at meeting these requirements, and the discerning selection of the most advantageous
offer or tender that ensures maximum value for money. This multifaceted engagement demands
a comprehensive array of contractual materials to underpin the bidding process effectively.
These materials encompass a diverse range, including but not limited to tender documents
tailored for distinct contracts, meticulously crafted cost projections, and industry-specific or
project-specific standard paperwork. In essence, this initiative not only seeks to streamline the
procedural aspects of procurement but also endeavors to create a more inclusive landscape
where smaller providers can actively and competitively participate in the public sector contract
arena. By fostering efficiency and transparency, this project aims to contribute to a more robust
and dynamic ecosystem within the realm of public sector procurement.

• Pre-qualification
Involves identifying the business requirements, assessing market capacity, formulating a scope
of work, and creating an evaluation method to assess bids.

• Expression of Interest
Before the official tender process, primary contractors are frequently required to submit an
expression of interest or registration of interest.

• Official Tender Invitation

A formal invitation to tender allows the main contractor to articulate their ability to meet the
project requirements, encompassing factors such as meeting deadlines, financial
considerations, and the scope of work.

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 • Pre-Tender/Site Meetings
A pre-tender meeting is typically arranged following the issuance of the tender invitation. This
meeting serves as a briefing session and/or a site visit, providing potential tenderers with an
opportunity to address any concerns before submitting their bids.

• Tender Assessment
The tender assessment is a crucial stage for the project owner to scrutinize the competence and
proposals of key contractors. This involves evaluating how well their solutions align with the
project brief, assessing the financial viability of the tenderers' businesses, and considering the
proposed contract rates. Substantial negotiations may occur, particularly in private tender
scenarios, before selecting the preferred tenderer.

• Contract Award
Following a comprehensive evaluation of bids and the conclusion of all negotiations, the
project contract is awarded to one of the bidding companies.

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2.6 Contract of Form

The implementation of contemporary standard forms or contract terms within

Malaysia's construction sector underscores the shortcomings of outdated documentation.
Noteworthy instances include the introduction of PAM2006 (successor to PAM1998) by
Pertubuhan Arkitek Malaysia (PAM), various forms by Malaysia's Construction Industry
Development Board (CIDB) (CIDB2000, model terms for domestic sub-contracts, etc.), and
the release of JKR203A edition 2007 by Jabatan Kerja Raya (JKR) Malaysia. These endeavors
reflect a widespread acknowledgment that conflicts and disputes often arise from contractual
considerations.

The clarity of contract terms emerges as a pivotal factor influencing disputes and
conflicts. Clarity, defined as what is easily observed, understood, and unambiguous, plays a
crucial role in conflict resolution. The absence of clarity in contracts has been identified as a
critical factor contributing to the escalation of certain disputes into legal proceedings,
underscoring the imperative need for precision and comprehensibility in contractual
language.The individuals responsible for formulating or, in many instances, revising standard
expressions bear the ultimate responsibility for the clarity embedded in each construction
contract. The original author of the contract conditions may lack a comprehensive
understanding of the construction process, may not keep pace with current and innovative
technology, and may stress the significance of the contract drafter possessing not just drafting
experience but also the knowledge necessary for crafting clear and precise contract terms.
These factors are recognized as exerting an influence on the level of clarity in the contract.
Furthermore, the effort to create "enhanced and improved" contract conditions, as manifested
by the issuance of these forms in a modified, revised, or reconstructed format, suggests that
stakeholders (such as PAM, CIDB, and JKR) inadvertently uphold the principles and
theoretical ideals of contract law.

Melvin (2018) stated that, contract law has effectively accomplished its central
objective through various procedures and conceptual frameworks. These encompass
streamlining the exchange process to prevent breakdowns, instituting sanctions for breaches of
agreements, establishing remedies for parties in violation, introducing standardized risk-
allocation terms for contracting parties, and, most importantly, overseeing transactions in
alignment with ideals of social justice. It embodies the classic contract paradigm, ensuring

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compliance by individuals adhering to defined rules and processes, resulting in expected or
predictable behaviors prescribed or proscribed by these norms. When sensible behaviors are
known or expected, legal action functions as a disincentive to individual behavior. Rational
social activity is restricted in the domain of legal power by rules that impose rational-induced
qualities on organizations or standards that promote rational behavior.

Therefore, the zenith of the classical contract model is reached when contractual parties
and their representatives employ traditional forms or terminology while adhering to its
established norms and procedures. This assertion underscores the belief that the law,
specifically contract law, is perceived to wield the capacity to influence behavior and, by
extension, has the potential to shape the activities of construction professionals.(Law,2016)
This perspective assumes that the implementation of conventional contractual forms, guided
by legal norms, can effectively guide the conduct of those involved in construction
projects.However, it is crucial to note that previous research has cast doubt on the validity of
this notion. Studies indicate that the impact of contract law on the behavior of construction
professionals is more nuanced and complex than a straightforward cause-and-effect
relationship. As such, a comprehensive understanding of the interplay between legal
frameworks, contractual practices, and the actions of construction experts requires a more
nuanced exploration beyond the simplistic assumptions of the classical contract model.

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CHAPTER 3: RESEARCH METHODOLOGY

In ordinary usage, research refers to a quest for information, says Kothari (2004). The
goal is to uncover the truth, which is concealed and has not yet been found. However,
methodology, in the words of Kabir and Syed Muhammad (2016), is a process utilized to gather
information using efficient methods to address research issues. Kothari (2004) defines
methodology as how relevant data is gathered for a certain research topic. The choice of
research techniques, data collection techniques, and data analysis techniques are often
considered. The most crucial way to gather information for a report is via this approach. This
case study was obtained from my supervisor, Encik Najib Shafi, during the practical. He was a
quantity surveyor who worked for AS2 Consult and oversaw my case study assignment.

3.1. Data Collection Method

In the pursuit of comprehensive data collection for my case study and to ensure the
thorough compilation of my project report, I strategically employed a diverse range of
information-gathering techniques. Recognizing the importance of obtaining a holistic
perspective, I implemented various methods to pinpoint any challenges that may have arisen
before, during, or after the construction process.

One key strategy involved leveraging personal connections and reaching out to
acquaintances residing in different states. By tapping into this network, I aimed to gather
nuanced insights into the initiative under scrutiny. Through collaborative efforts, I engaged
with individuals in Terengganu, Johor, and Selangor, seeking their firsthand experiences and
observations related to the construction project.

This approach not only facilitated the acquisition of valuable information but also
provided a regional perspective, allowing me to discern any variations or commonalities in the
challenges faced. The firsthand accounts from different geographical locations contributed to
a more comprehensive understanding of the project's impact and significance.

Furthermore, in my interactions with acquaintances, I took the opportunity to

disseminate information about Pembinaan Masjid Qasimiah. By sharing details about the

18 | P a g e
initiative, I aimed to foster awareness and garner additional perspectives on its implications
and outcomes.

In essence, the combination of diverse data collection techniques, ranging from

personal interviews to leveraging social connections across different states, has been
instrumental in enriching my case study. This multifaceted approach ensures that my project
report reflects a well-rounded analysis, incorporating a variety of perspectives and insights
gathered from various sources.

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 3.2. Literature Study

In addition to interpersonal connections, the second pivotal technique employed in my

quest for gathering comprehensive data and facts pertaining to the project involved an extensive
literature research strategy. This approach has proven to be particularly advantageous, offering
a more structured and in-depth understanding of the project's intricacies.
One fortunate aspect of my research journey was the successful location of both pre- and post-
contract documents related to the project. These documents have emerged as invaluable
resources, providing a chronological and detailed account of the project's evolution from its
conceptualization to its completion. Delving into these papers has allowed me to navigate
through the various stages of the project, unraveling its development and flow with a
heightened level of clarity.

The meticulous examination of pre-contract documents has afforded me insights into

the initial planning, expectations, and contractual agreements associated with Pembinaan
Masjid Qasimiah. This foundational understanding serves as a cornerstone for analyzing how
the project unfolded in alignment with its initial objectives. Simultaneously, the exploration of
post-contract documents has proven instrumental in scrutinizing the outcomes and deliverables
against the contractual obligations. By delving into these documents, I can discern the
challenges encountered, mitigating strategies employed, and the overall success metrics of the
project.

Furthermore, the literature research approach has been particularly fruitful in providing
a comprehensive overview of specific topics integral to the project, such as variation orders,
bonds, insurance, and interim payments. By consulting scholarly articles, industry publications,
and legal documents, I have gained a nuanced understanding of these intricacies, enabling me
to contextualize their relevance within the broader project framework. In essence, the literature
research component of my data-gathering strategy adds depth and context to the case study,
supplementing firsthand accounts with documented evidence. This dual approach ensures a
well-rounded and substantiated analysis in my project report, fostering a comprehensive
understanding of Pembinaan Masjid Qasimiah and its associated complexities.

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 3.3. Observation

The third and final information-gathering strategy I employed in the pursuit of a

comprehensive understanding of the project involved making detailed observations. While the
act of observation might be perceived as a more passive method compared to interviews or
literature research, its significance lies in its ability to offer a firsthand and tangible perspective
on the project's development. During this phase of my research, I dedicated time to watching
and visiting locations that, while not directly the subject of my case study, contributed to a
more holistic depiction of the project's impact both on and off-site. This observational approach
allowed me to witness the ripple effects of Pembinaan Masjid Qasimiah in the surrounding
areas, shedding light on the broader community dynamics and potential secondary influences
on the region.

Although the information gathered from these observations may not be as explicitly
related to the construction process, it does contribute to painting a fuller image of the project's
development within its broader socio-economic context. Understanding the interplay between
the project and its environment can uncover subtle nuances that may not be evident through
other data collection methods. Furthermore, these on-site observations provided an opportunity
to engage with various stakeholders and parties involved in the construction. Interactions with
architects, contractors, and local community members offered valuable insights into their
perspectives, challenges faced, and contributions to the project. These encounters added a
qualitative dimension to my research, providing a more nuanced understanding of the
collaborative efforts and dynamics at play in the construction process.

In essence, the observational strategy, coupled with on-site visits and interactions with
diverse stakeholders, enhances the depth and authenticity of my case study. By incorporating
these firsthand observations, I aim to present a well-rounded and immersive narrative in my
project report, capturing not only the tangible aspects of Pembinaan Masjid Qasimiah but also
the intangible dynamics that shape its overall impact.

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CHAPTER 4: CASE STUDY

The case study that was chosen was considered within some aspects that need us to
consider based on references that we have. Based on the case study chosen, we only have
Tender Report and Certificate of Payment, are used as references for us to do the case study.

4.1 Background of the Project

The project that we choose as our case study is “Membina Bangunan Baru Masjid Qasimiah
Kampung Selat Layang-Layang Kiri, Parit, Perak Darul Ridzuan.

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I. Location of Project

Generally, location of Masjid Qasimiah Kampung Selat Layang-layang Kiri, Parit, Perak is
located 4km away from Sungai Perak and the location are in village area. The location is within
the residential area and nearest to the small town. Thus, easy excess road to the site. Besides
that, this site is also located near to the other facilities such as Sekolah Tabika Kemas Layang-
Layang Kiri, mini market, residential area, and police station.

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 Completed Project

This project is about constructing a religious building of single storey mosque building
at Kampung Selat Layang-Layang Kiri, Parit, Perak which are tendered on 26th December
2017. Furthermore, the location of the project was in the development area with convenient
transportation around the site. Based on the Tender Report, during the pre-contract stage, this
project consists of some building works and infrastructure works where all the tenderers are
invited based on the information given in the Tender Document and Tender Drawings provided.
Based on this statement, it is clearly shown that this project is going through an Open Tendering
Procedure which will be more explained later. The Tender Report was then prepared by the QS
Consultant from AS2 Consult Sdn Bhd.

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II. Scope Of Work

The Scope of Works let on that related to this contract are as follows: -
a) Preliminaries and General Conditions
b) Piling Works
c) Building Works
d) External Works
e) Mechanical & Electrical Works
f) Provisional Sum

External Works which comprises the following:

a) Site Clearance and Earthworks
b) Roadworks
c) Surface Water Drainage
d) Water Reticulation
e) Sewerage Reticulation

Mechanical and Electrical Works comprising of the following:

a) Internal Mechanical Services

● Cold Water Plumbing Works
● Hot Water Plumbing Works
● Sanitary Plumbing System
● Air-Conditioning Services

b) Internal Electrical Services

● Electrical Installation
● Internal Telephone Installation
● SMATV System
● Lightning Protection System
● Earthing System
● Alarm System

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III. Parties Involved

Consultants Firm’s Address

PEJABAT PEMBANGUNAN PERSEKUTUAN NEGERI

PERAK
Owner/Client
UNIT PENYELARASAN PELAKSANAAN, JABATAN PERDANA
MENTERI, TINGKAT 10, BANGUNAN TABUNG HAJI, JALAN
KOO CHONG KONG, 30000 IPOH PERAK

DATO’ HAJI HASIM BIN HAJI HASAN

Superintending Officer PEGAWAI KEMAJUAN NEGERI PEJABAT PEMBANGUNAN
PERSEKUTUAN NEGERI PERAK

IZZNY ISMAIL ARCHITECT

Architect 18A, PERSIARAN DATARAN 2, BANDAR SERI ISKANDAR,
32610 SERI ISKANDAR, PERAK DARUL RIDZUAN

JURUTERA PERUNDING KINTAREKA

Structural & Civil 18A, REGAT SRI CEMPAKA, TAMAN CEMPAKA, 31400 IPOH,
Engineering PERAK DARUL RIDZUAN

ETIQAD ENGINEERING SDN. BHD.

Mechanical & Electrical NO. 102-2, JALAN MERU BESTARI B2, PUSAT BANDAR MERU
Engineering RAYA, 31350 IPOH, PERAK DARUL RIDZUAN

AS2 CONSULT
Quantity Surveyor NO.33A JALAN PP9 BANDAR UNIVERSITI, SERI ISKANDAR,
32610 SERI ISKANDAR, PERAK DARUL RIDZUAN

IRAMA MADU SDN BHD

Main Contractor 28A, JALAN PALMA A/1, SERI PALMA, BANDAR SERI
BOTANI, 31350 IPOH, PERAK

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4.2 Procurement System Practice

In the realm of construction, procurement refers to the comprehensive process of

obtaining a completed construction project, which can traverse multiple stages from its
inception to its finalization. The arrangement of contracts is contingent upon the selected
method of procurement. In Malaysia, several prevalent contract procurement methods are
employed: Traditional Contract, Package Deal Contract, Management Contract, and Public
Private Partnership (PPP) Contract. Once the procurement method is determined, sequential
contractual interactions among involved parties are established. For example, activities such as
design, detailing, tender documentation, and others necessitate coordination by the project
teams. Early determination of the preferred contract document method becomes evident during
this phase as it significantly influences the volume of pre-contract work involved.

Procurement method used in this case study is a traditional contract method. Traditional
contracts are the most familiar types of contracts known in the construction industry as they
have been the main form of contract procurement for quite some time. The nature of the
traditional general contract is the separation of the design from the production, for example,
construction or installation. Responsibility for all design work is under the employer’s
obligation, and the contractor is only responsible for the contract in construction aspects
(quality of material and workmanship). The main feature is that the design process is separated
from construction and substantial documentation is required before tendering.

Component of traditional procurement method

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 Following the standard process of a traditional contract and the organizational setup of
the case study project, the client (Pejabat Pembangunan Persekutuan Negeri Perak) engages
the consultant (Jurutera Perunding Kintareka) for the project's design and documentation.
During this phase, the contractor (Irama Madu Sdn. Bhd) is selected by the professional teams
to initiate the contracted work. The contractor's commencement of work is contingent upon the
completion of the design phase.

The client maintains contractual ties with the professional teams overseeing the project,
while a nominated subcontractor, appointed by the client, handles specialized tasks for the
contractor. The primary contractor bears the responsibility of completing the project within the
agreed-upon parameters of cost, time, and quality. Furthermore, the contractor is tasked with
constructing the building according to the provided drawings and specifications. Notably, the
contractor isn't accountable for the building's design, as this falls under the purview of the
professional teams. Instead, the contractor's role centers on overseeing construction through
meticulous planning and programming of activities and resources. Meanwhile, subcontractors
and nominated subcontractors have contractual connections with the main contractor. The
selection of nominated subcontractors sometimes relies on the client, who may appoint them
directly or through the main contractor.

The design process initiates with an architect, the primary consultant engaged. The
architect spearheads architectural design and serves as the design coordinator for other
specialists, such as the structural engineer and quantity surveyor, while overseeing the
construction phase. Notably, the architect's contractual association is directly with the client
rather than the main contractor.

The procurement method typically spans a lengthy duration, allowing ample time for
comprehensive design development. Consequently, this approach often leads to higher overall
project costs. However, it yields commendable ratings for quality, aesthetic appeal, and
intricate technical aspects. Importantly, the design team operates without undue time
constraints. During the construction phase, operations follow the established work plan, but
should challenges arise, the contractor is required to engage with the professional teams and
adhere to their guidance. Upon project completion, the contractor delivers the finished work to
the employer.

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4.3 Tendering System

A tender serves as an invitation for project bids or the acceptance of a formal offer, such
as a takeover bid. Supplier submissions, typically in hardcopy document form, respond to an
Invitation to Tender (ITT). In construction, the main tender process predominantly involves
selecting the contractor responsible for executing the construction works. However, tendering
encompasses a broad spectrum of goods and services, leading to various types of tendering
processes that clients can opt for with guidance from consultants.

Tendering commonly denotes the process where clients and financial institutions solicit
bids for substantial projects within a specified timeframe. Additionally, it refers to shareholders
submitting their shares or securities in response to a takeover bid. Upon a client's acceptance
of a tender, a binding agreement ensues between both parties. This entails the winning party
providing goods or services as agreed upon at the offered price, while the client must remit
payment at the agreed time. Essentially, an accepted tender constitutes a binding contract.

In Malaysia, several procurement policies, known as procurement policies, provide

guidance to the Malaysian government in deciding which tenders to accept. While price holds
significant importance in the decision-making process, it doesn't stand alone; other factors also
play pivotal roles in determining the accepted tender or bid.

A well-crafted tender document is characterized by its absence of inconsistencies within

its content. It should be comprehensible to all pertinent parties and accurately mirror the
employer's requisites. Utilizing the most current standard terms of design, specifications,
updated governmental policies, and necessary requirements is imperative within the tender
document. Additionally, it must encompass all contractual conditions and specifics pertaining
to the proposed project, encapsulating agreements and forms relevant to the involved parties.
Essentially, the tender serves as a preliminary guideline in shaping the contractual relationship
between the client and the contractor.

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 The main purpose for preparing tender documents is to allow the tenderers to price all
the items in the Bill of Quantities to get the amount of tender sum. It is also used as a guideline
to prepare contract documents with the basic information about the project such as when will
the project be completed in scheduled time, the specification and working procedure. Safe to
say that most of the Contract Document is the same as most mentioned in the Tender document.

Preparation of tender documents can often be difficult and time-consuming, even for
those with years of experience in tender preparation. It is not easy to produce and only Quantity
Surveyors are able to do it because it is one of their work scope that expertise in preparing the
document. In preparation of the tender document, all parties such as Clients, Project
Management Consultancy, Architect, Engineer, and other Consultant team are needed to
identify all specific information. After the Tender Document is done, the Tender Advertisement
will start and all the tenders that are interested to bid may obtain the tender document from the
client ‘s office or Quantity surveyor ‘s office with the tender fees charged to the tenderers
according to the document pages and capacity of a project.

(Basic procedure in preparing the tender document.)

30 | P a g e
I. General Contents that must have in tender document:

a) Instruction to Tenderer
b) Conditions of Tendering
c) Standard Form of Contract (PAM 2006 or 2012, PWD 203A)
d) Form of Tender & Document for Tender Evaluation
e) Scope of Works
f) Specifications
g) Summary of the Bills of Quantities
h) Preliminary Works and Generally
i) Bills of Quantities (Buildings Works, External Works, PC & Provisional Sum)
j) Schedule of Day-work Rates
k) List of Tender Drawings

31 | P a g e
4.4 Process of Tendering System Practice in Public Project

Tendering encompasses the process of presenting offers, bids, or expressing interest in

responding to an invitation or request for tender. Through tendering, contractors keen on
undertaking specific segments of construction work can submit their bids. In Malaysia, various
tendering methods are employed, including open tender, selective tender, negotiation, serial
tendering, and additional approaches. The selection of these methods is contingent upon the
compatibility with the nature of the projects.

In the specific scenario of building the project of “Membina Masjid Qasimiah Kampung
Selat, Layang-Layang Kiri, Parit, Perak Darul Ridzuan,” the Open Tender method is utilized
for the tendering process. This method is chosen deliberately to foster a transparent and
equitable environment for contractors interested in participating. By opting for an Open Tender,
the objective is to encourage competition among all eligible contractors. This approach ensures
that any qualified contractor, without limitations or exclusions, could submit their bids openly
for consideration in the construction project.

The Open Tender method aligns with principles of fairness, openness, and non-
discrimination, allowing a broader pool of contractors to participate in the bidding process. It
facilitates an environment where bids can be evaluated based on merit and competitiveness,
ultimately aiming for the selection of the most suitable contractor to undertake the mosque's
construction.

It provides chances for many contractors to take part. Moreover, the selection for the
most suitable contractor for a project will not rely on the lowest value of the tender price but it
is based on the background of the contractor, the contractor’s record, financial standings, and
capability of the contractor in doing the project itself.

32 | P a g e
I. List of Contractor/Tenderer and their offer.

BIL NO. NAMA GRED TAHAP HARGA TEMPOH

RUJUKAN PENTENDER PENTENDER SIAP (bulan)

1 7/10 IRAMA MADU G4 B 1,995,190.40 12 BULAN

SDN BHD

2 3/10 MERCU REKA G4 B 2,289,669.10 12 BULAN

SDN BHD

3 1/10 AFATS G4 - 2,421,901.70 12 BULAN

ENTERPRISE

4 10/10 ARZEK TEKNIK G4 B 2,422,000.00 12 BULAN

SDN BHD

5 2/10 TUAH G4 B 2,476,623.30 12 BULAN

PROGRESIF
SDN BHD

6 6/10 VISIONJAYA G4 B 2,550,170.00 12 BULAN

SDN BHD

7 8/10 SAFARUDDIN G4 B 2,678,276.00 12 BULAN

BINARI

8 9/10 BUMILINE G4 B 2,744,847.86 12 BULAN

TECHNOLOGIES

9 4/10 PUNCAK G4 B 2,813,745.40 12 BULAN

TASNIM SDN
BHD

10 5/10 KIJANG BINA G4 B 2,885,654.30 12 BULAN

ENTERPRISE

33 | P a g e
4.5 Form of Contract Used

In the construction industry, the standard form of contract is one of the key methods of
upgrading a potentially fractions relationship to achieve a common end. Any standard form of
contract would need to appreciate and incorporate all the special requirements and
circumstances that a project would call for. A standard form of construction contract would
therefore be useful expressing the obligation of the parties and setting out the reasonable clarity
of the scope of the project. Standard Form Contracts are agreements that employ standardised,
non-negotiated provisions, usually in pre-printed forms. There are several standard forms of
contracts, namely, Public Works Department (PWD), Pertubuhan Arkitek Malaysia (PAM),
Construction Industry Development Board (CIDB) and International Federation of Consulting
Engineers (FIDIC). The choice of procurement system is having a significant impact on the
achievement of time, cost, and quality targets for a project. However, the most common types
that are used in Malaysia are PAM Form and PWD Form. PWD Form is mostly used in the
government or public sector while PAM Form is used in private sector.

The Public Works Department of Malaysia (PWD) is a government agency that is

responsible for the forms of contracts PWD203A. These are the traditional forms of contract
based on bills of quantities produced for the use in the public sector or government projects in
both building and civil engineering contracts. PWD contract forms are the home-based forms
where risks are known to the local industry, whereas a lump sum contract is incorporated with
either bills of quantities or schedule of rates. There are two types of PWD203A (with quantities)
and PWD203A (without quantities).

Furthermore, the PAM standard form of contract has been widely used by the Malaysia
Building Industry over the last 40 years. PAM 1969, which is the first edition, was for practical
purposes a lightly amended version of JCT 1963 standard form of building contract. PAM
undertook a complete revamp of the PAM 1969 Form which was replaced by the PAM 1998
Form. The PAM 1998 Form was extensively employed in the building industry in Malaysia but
was subjected to criticism by a segment of the said industry. The above necessitated a further
review, which ended in the drafting and implementation of the revised form entitled “The PAM
Contract 2006”. PAM 2006 comes in two versions, with quantities and without quantities and
it was launched in April 2007. Now, there is a latest revision entitled “PAM Contract 2018”.
The latter form has been officially launched and intended by PAM to replace the earlier 2006

34 | P a g e
PAM. However, it is not completely being used by the industry yet as many of them are still
using previous one for now. It is estimated 90% of the building contracts in the private sector
are based on the PAM form.

While for this project, the form of contract that is being used is PWD Form 203A (Rev.
2010) where Standard Form of Building Contract where Bills of Quantities form is a part of
the contract (Version 3/041212). As mentioned PWD Form is being used for most public
projects. This project commenced in November 2017 using PWD Form, Rev 1/2010.

The chosen local standard form of contract, PWD 203A (Rev. 2010), commonly known
as PWD 203A, includes Bills of Quantities as part of the contract and serves as the standard
for the Conditions of Contract for Construction. This form is administered by the Public Works
Department of Malaysia (PWD), overseeing public works and development initiatives. The
client and consultants hold significant roles in supervising and managing the contract.

Under PWD 203A, the contractor bears the responsibility of ensuring the building's
design aligns with safety, functionality, compatibility, and integration as specified and approved
by the client. Clearly defined roles and responsibilities among all involved parties are crucial,
particularly in the project's early stages. The choice of contract form depends on factors such
as the project's nature, ownership, and financing methods. Each standard form aims to facilitate
efficient and clear contract administration, minimizing the potential for disputes.

PWD 203A contract documents are commonly applied in government projects, whereas
the private sector often utilizes PAM form documents. These distinctions in contract forms
reflect the specific needs and preferences within different sectors and project contexts.

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4.6 Method of Evaluation of Tender

Evaluating tenders is a pivotal stage in the procurement process where a specific tender
aligns with the defined criteria. The determination of contract terms typically relies on the rates
and capabilities proposed by the tenderers. The objective is to select the most suitable
contractor who can fulfill the customer's needs with the best balance of technological expertise
and commercial viability. Through a multi-criteria decision-making methodology, the project-
based study in the case analysis identified six contractor characteristics from the literature.
These characteristics are considered indicative of a contractor's readiness to undertake a
contract and meet project-specific requirements.

Based on the case study project which is, “Membina Masjid Qasimiah di Kampung
Selat Layang- Layang Kiri, Parit, Perak Darul Ridzuan” the tenders of ten interested contractors
for the project were reviewed with the attributes that must be carried out by the relevant review
panel and in line with the general law and treaty standards of fair treatment. The confidential
information obtained by those participating in the assessment process must be respected.

Before the tender is assessed, QS will verify if the tenderer has submitted all the relevant
details as set out in the tender document as set out in the Instructions to Tenderers (ITT). QS
can also verify if all the necessary specifications to be submitted by the tenderer are available
as forms and earnest money. Both mandatory specifications are set out in the Instruction to
Tenderer (ITT). Until tendering, the tenderer must apply a technical document and a
commercial document in a different envelope. The requirements are divided in two:

Technical evaluation Commercial evaluation

Contractor’s organization Tender price offered

Experience Rates

Workload Any percentages adjustment to be made due

to error/mistakes.

Contractor’ resources -

Quality control/assurance -

36 | P a g e
I. Process of Tender Evaluation

The process of tender evaluation is divided into numerous parts.

First Stage Evaluation

1) Preliminary Evaluation Need to ensure that the tenders submitted

conform with the terms and conditions of
the tendering process, with appropriate
requirements, necessary and complete.

2) Pre-Qualification Phase in which the questionnaire was sent to

prospective tenderers to reply on their level
of expertise, capability, and financial status.

Second Stage Evaluation

1) Final Evaluation Check all the company’s cash flow history

for at least three months, the leverage ratio
must be low, and the sales will rise.

2) Technical Evaluation Evaluate the organization of the business,

the expertise of the contractor and the
capital.

Third Stage Evaluation

1) The profitable tender to be The consultant will provide

recommended recommendation to the tender board
committee.

Other Analysis i) Checking for arithmetical errors

ii) Table of Tender Summary

iii) Analysis of major rate item

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 The utilization of an open tender system in procurement processes offers multifaceted
benefits that extend across various dimensions. Firstly, its hallmark lies in fostering a
competitive landscape where numerous entities, irrespective of size or stature, can participate.
This wide inclusion encourages healthy competition, driving vendors to present their best offers
in terms of both pricing and service quality. This competitive spirit often translates into cost-
effective solutions and innovative approaches as bidders vie to secure the contract, ultimately
benefiting the buyer with improved value propositions.

Transparency is a cornerstone of the open tender system, ensuring fairness and equal
opportunity for all potential suppliers or contractors. The visibility of the tender process instills
confidence by eliminating favoritism or partiality, showcasing that decisions are based on merit
and compliance with the stipulated criteria. This transparency not only enhances accountability
among participating entities but also establishes trust in the fairness of the procurement process,
especially crucial in public sector initiatives or government projects.

The breadth of options available in an open tender scenario allows for a comprehensive
evaluation of proposals. Buyers can meticulously assess various bids based on a multitude of
factors, such as technical expertise, track record, service offerings, and price competitiveness.
This meticulous evaluation process empowers buyers to make informed decisions, selecting
the supplier or contractor whose proposal best aligns with their specific project requirements
and budget constraints.

Moreover, the open tender system encourages market inclusivity, enabling newer or
smaller businesses to enter and compete alongside established entities. This inclusive
environment promotes diversity, fostering opportunities for emerging companies to showcase
their capabilities and potentially secure contracts, contributing to industry growth and
dynamism. It also spurs larger companies to continuously innovate and improve their offerings
to maintain their competitive edge, ultimately benefiting the industry and end consumers
through enhanced service quality and innovation.

38 | P a g e
I. Roles of Quantity Surveyor during tender evaluation process

Quantity Surveyors will analyze cost proposals submitted by contractors or suppliers

by conducting a comprehensive review that aligns these costs with the specific project
specifications. This evaluation involves a deep dive into the breakdown of expenses, examining
items like materials, labor, overheads, and contingencies, ensuring they match the project's
requirements and standards. They meticulously scrutinize the accuracy and reasonableness of
each line item, cross-referencing industry benchmarks, historical data, and market rates to
validate the proposed costs. This scrutiny involves verifying quantities, unit rates, and proposed
methodologies against industry norms and previous project experiences, ensuring that the
pricing reflects realistic estimates. QS professionals also delve into the potential for cost
fluctuations, analyzing any foreseeable risks that could impact on the overall project expenses.
This detailed analysis ensures that the cost proposals are not only aligned with the project's
scope but also offer a fair and competitive pricing structure, providing the client with a clear
understanding of the financial implications of each bid.

In performing a comparative analysis of received bids, Quantity Surveyors (QS)

undertake a meticulous assessment that involves scrutinizing each bid's nuances, comparing
them comprehensively to highlight disparities in pricing structures, proposed materials,
methodologies, and adherence to project specifications. QS professionals meticulously dissect
the submitted bids, identifying any variations or discrepancies between them, whether in the
cost breakdowns, suggested timelines, or the quality of materials specified. They pay close
attention to deviations from the outlined project requirements, meticulously documenting and
outlining these variations to provide a clear overview to the project stakeholders. This process
enables QS to create a comprehensive side-by-side comparison, empowering the client or
selection committee to make informed decisions by understanding the distinct offerings and
potential advantages or limitations of each bid.

Following their thorough evaluations, Quantity Surveyors (QS) compiled

comprehensive reports that encapsulate the strengths, weaknesses, and distinctive attributes of
each bid assessed. These reports are meticulously crafted, presenting a detailed analysis of the
cost proposals, comparative assessments, compliance with project specifications, and identified
risks or potential value-added propositions. QS professionals meticulously outline their
findings, offering valuable insights into financial viability, alignment with project objectives,
39 | P a g e
and potential risks associated with each bid. They offer well-substantiated recommendations,
guiding the selection committee or client towards the most feasible and advantageous options.
These recommendations are rooted in a deep understanding of the project's intricacies, allowing
stakeholders to make informed decisions aligned with project goals, budget constraints, and
desired outcomes. Through these reports, QS professionals serve as key advisors, assisting
stakeholders in navigating the complexities of bid selection by presenting a clear and
rationalized view of the available options.

Quantity Surveyors (QS) meticulously curate and maintain an exhaustive record of the
entire tender evaluation process, ensuring that every evaluation, analysis, and recommendation
is diligently documented. They maintain detailed records encompassing the assessment criteria,
methodologies employed, findings from cost analyses, comparative assessments, and identified
risks or opportunities associated with each bid. These records are meticulously organized and
presented in comprehensive reports that serve as a repository of insights for stakeholders. The
reports are structured in a transparent and accessible manner, allowing stakeholders to delve
into the nuances of the evaluation process, understand the rationale behind recommendations,
and gain a comprehensive overview of the strengths and weaknesses of each bid. This
meticulous documentation not only facilitates transparency but also serves as a crucial
reference point for future decision-making processes, ensuring that the rationale behind bid
selections is well-documented and easily accessible for audit, review, or future project
references.

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 4.7 Preparation of Tender Report

The tender report, a comprehensive evaluation compiled by the quantity surveyor,

meticulously analyzes the tenders submitted by contractors. This detailed report, presenting a
breakdown of each contractor's bids, serves as a professional assessment delivered to the client.
It encapsulates the tendering process, thoroughly analyzing every tender submission along with
any subsequent negotiations. Typically orchestrated by the cost consultant, the report
incorporates insights and contributions from the design team, assessing the perceived value of
each bid. A key feature of the report involves presenting a clear recommendation highlighting
the offer that represents the best value for money. Any project implications arising from the
tender process, potentially altering the initial client perceptions, are meticulously outlined in
the report.

Commencing after the tendering period, the preparation of the tender report involves
synthesizing observations and assessments to culminate in a comprehensive recommendation.
Subsequently, after considering the recommendations outlined in the report alongside advice
from consultants, the client or employer selects their preferred contractor. Throughout this
process, confidentiality is rigorously maintained to safeguard the integrity of the tender
evaluation and selection.

I. Content of tender report is by following:

● Particular details of the project/contract
● Scope of works
● Background detail of tender & tenderer
● Methodology of evaluation
● Detailed tender analysis
● List of original tenders received
● Comparison between tenders & arithmetical check
● Detailed summary and tender breakdown
● Technical & commercial evaluation analysis
● First Stage evaluation, second stage evaluation & Third Stage evaluation
● Conclusion
● Recommendation
● Appendices

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 In this case study project, the tender report is done very detailed with the content that
should have as a tender report. It includes the background of the project. Among all the
tenderers who submitted, a tenderer from the company IRAMA MADU Sdn. Bhd. managed
to get in the project “Membina Bangunan Baru Masjid Qasimiah”.

II. Information About Tender

PROJECT TITLE MEMBINA BANGUNAN BARU MASJID

QASIMIAH KAMPUNG SELAT
LAYANG-LAYANG KIRI, PARIT, PERAK
METHOD OF CALLING OPEN TENDERING
BRIEFING AND SITE VISIT 11TH SEPTEMBER 2016
CALLING OF TENDER 11TH SEPTEMBER – 25TH SEPTEMBER
2016
CLOSING DATE TENDER 2ND OCTOBER 2016

III. Scope Of Work

The Scope of Works let on that related to this contract are as follows:

a) Preliminaries and General Conditions

b) Piling Works
c) Building Works
d) External Works
e) Mechanical & Electrical Works
f) Provisional Sum

External Works which comprises the following:

a) Site Clearance and Earthworks
b) Roadworks
c) Surface Water Drainage
d) Water Reticulation
e) Sewerage Reticulation
Mechanical and Electrical Works comprising of the following:

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a) Internal Mechanical Services
● Cold Water Plumbing Works
● Hot Water Plumbing Works
● Sanitary Plumbing System
● Air-Conditioning Services

b) Internal Electrical Services

● Electrical Installation
● Internal Telephone Installation
● SMATV System
● Lightning Protection System
● Earthing System
● Alarm System

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4.8 Award of Contract

Once the client has completed the evaluation and selected a tenderer, the chosen party
is formally notified through a document known as a letter of award or award letter. This letter
constitutes a fundamental part of the contract award process, serving as official communication
to inform both successful and unsuccessful tenders about the decision. Typically conveyed in
writing, each tenderer is individually and simultaneously notified. Additionally, the award
notice is accessible to the tenderer through the electronic tendering platform, commonly
referred to as E-Tender, extensively used in the construction industry. This platform offers
significant advantages compared to traditional methods as it operates entirely online. Through
E-Tender, tenderers can conveniently access and acquire tender documents without the need to
physically visit the client's office. The platform hosts the outcomes of the client's decision-
making process, ensuring transparency and applicability. The successful awardee is formally
informed through notifications on the electronic tendering platform.

The client typically selects a tenderer aligning most closely with the project's criteria to
be granted the contract. This decision aims to avert potential challenges during the construction
phase, ensuring project success by engaging a contractor meeting the client's requirements. The
letter of award serves as affirmation to the successful tenderer, permitting them to initiate
project preparations. However, if objections arise from the tenderer, it's crucial for the client to
address these concerns promptly to reach a final decision, preventing potential delays or legal
complications. To mitigate such issues, it's essential for the client to award the contract to the
highest evaluated bidders. Once the decision is finalized, the contracted contractor can
promptly proceed with project execution.

Additionally, unsuccessful tenderers are refunded their tender deposits once the contract
has been granted. While formally informed of the award, they are not provided details regarding
the final price. The evaluation process remains confidential, with information released only in
cases of complaints from unsuccessful bidders involving arbitration. The decision regarding
the award is required to be publicly disclosed among all bidders, outlining specific reasons
behind the selection of the winning bid. In instances where the contract award fails, the
opportunity may pass to the second-lowest bidder. However, it is considered unethical and
unprofessional for the client to engage in negotiations with multiple bidders simultaneously,
hoping to incite competitive pricing between them.
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 The type of tender for this project is an open tender from and about ten number of
interested tenderers bidding for the project. After the tender report is completed by the quantity
surveyor, the tender report must be presented and submitted to the client. It will then be
examined by the client and the client must decide to accept only one of the tender documents
by the tenderer. In time when the client already decides to select the contractor which would
be involved in the construction project, the client will inform the consultant especially the
quantity surveyor of his decision and reasons.

Once the contractor secures the award, a meeting ensues between the contractor and the
client, typically conducted at the client's office. During this meeting, the client furnishes the
successful contractor with the letter of award, constituting an invitation to enter into a contract.
Once awarded, successful tenderers are bound by the contract and cannot annul it. Additionally,
within the tender document, a letter of acceptance awaits the contractor's signature, affirming
the contractor's acknowledgment and acceptance of the client's offer. Subsequently, the quantity
surveyor provides the contract, formalizing the agreement. Upon the contract's validation, the
contractor assumes full responsibility for the client's project from the commencement of the
possession date. This marks the onset of the contractor's obligations and involvement in
executing the project for the client.

The content for the letter of awards are:

● Amount of the award
● Date of the award
● When the contract will be signed

The content for the letter of acceptance are:

● Contract No.
● Name of Client and Contractor
● Project Title
● Awarded Contract Sum
● Amount of Performance Bond
● Date of Possession
● Construction Period
● Date of Completion
● Signature and Company Stamp
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CHAPTER 5: CONCLUSION

Project managers and clients alike now prioritize completing each tendered project
within the specified time, budget, and quality constraints. Each of these three elements is
crucial to a construction project's success. Achieving the contract award as impartially as
possible is also essential. To ensure that there are no issues during the project's construction,
the client must always select the best tenderer. One more requirement for an award is that the
tender with the best economics be considered. The lowest price tender in the construction
industry does not always indicate that it is the best option. Contractors with a solid track record
and few active projects should be the ones to receive the award. In the building sector, a variety
of procurement methods are also available for use. Regretfully, projects are unable to decide
on their procurement method on their own. The resources available and the needs of the client
have an impact on the procurement choice. The client experiences both advantages and
disadvantages from the procurement. For instance, the client has chosen to use design and build
procurement techniques rather than hiring an architect. Since the contractor is not an expert in
that kind of work, the design will not be as good as that of an architect.

A conventional method of procurement is applied from this case study. It is frequently

employed in the building sector. With this approach, the client maintains control over the
quality of the work and gets the best possible deal. The customer can also simply request any
variation of the works. A few parties are bound by contracts with each other and the other
parties, but they have no legal claims against the Contractor. Nonetheless, it is their duty to
evaluate the Contractor's performance. The contractor and the client have a direct contractual
relationship. Due to the numerous steps that must be completed, this procurement may take a
while. For instance, a concept design is created until it meets the client's requirement, even
before the client approves the drawing. Although this approach could be time-consuming and
challenging to understand, it will ensure the client is satisfied. The procurement process will
always be a crucial undertaking. It will keep changing to accommodate the demanding and
ever-changing demands of society as well as the conditions that the construction sector will
operate in. There are no set standards for procurement; instead, each project must be carefully
considered and evaluated on its own merits. To create good procurement practices and enhance
the industry's reputation, the suggested procedures must be thoroughly examined.

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 Open tender is used for this project. There are a total of 10 tenders that collected the
tender document and submitted their tender for bidding on the closing date and time of tender.
By using open tendering, it aligns with principles of fairness, openness, and non-
discrimination, allowing a broader pool of contractors to participate in the bidding process. It
facilitates an environment where bids can be evaluated based on merit and competitiveness,
ultimately aiming for the selection of the most suitable contractor to undertake the mosque's
construction. It provides chances for many contractors to take part. Moreover, the selection for
the most suitable contractor for a project will not rely on the lowest value of the tender price
but it is based on the background of the contractor, the contractor’s record, financial standings,
and capability of the contractor in doing the project itself.

Other than that, the selection of a suitable tenderer is based on the tender evaluation
method. Only one contractor that passes all the stages is chosen. The quantity surveyor will
come out with the tender evaluation report and will advise the client on the suitable tenderer.
In this case study there are two possible recommendations which are IRAMA MADU SDN
BHD and MERCU REK SDN BHD. The tenderer chosen must not be biased and the quantity
surveyor must show the reason on why the client should pick the recommended tenderers. In
the tender evaluation report must state the project name, scope of works, background of tender
and tenderer, tenderers received, compliance with the tender requirements, listing and
evaluation criteria, tender analysis, summary, conclusion, and recommendation. The most
important is that the tender report must be Private and Confidential. After that, the successful
tenderer will sign the letter of acceptance and be awarded with the project. Although, it is a
long process before a suitable contractor is chosen. Both parties will not suffer and get their
return of investment later by using the traditional procurement method. The document is very
important, and all parties must understand the contents of the document to avoid dispute and
problems later during the construction stage.

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