asa

1. School of Architecture, Building and
Design
Bachelor of Science in Quantity
Surveying
Professional Practice 1 Report
Group: Liew Yong Sheng 0315108
Lee Kim Thiam 0310710
Lecturer: Mr. Ramar A/L Subramaniam

2. Table of Contents
Introduction
Part A. Procurement System
Traditional
Design and Build
Recommendation
Part B. Tender Method
Open Tendering
Selective Tendering
Negotiated Tendering
Recommendation
Schedule of Project
Reference

3. Introduction
Taylor’s University is one of the top universities available in Malaysia. It is noted that
students from all around Malaysia would travel from their hometown to the heart of
Subang Jaya for the high quality of education from Taylor’s University. The amount
of students, as surveyed and interviewed as well as observed, has drastically
increased over the years. Not only is the efficiency of the facility began to drop due
to the tremendous amount of students in the school such as the insufficient amount
of parking in the free parking lots, the amount of restaurant available to fit at least
thirty per cent of the students in the campus, the reduction of space available in
library and so on. The students from Sarawak and Sabah would have to spent
additional transportation fee to travel from their hometown to the campus. The poor
would have to negate their option to either somewhere nearer and cheaper where
even the rich would need to spent a lot of money travelling back and forth for
holidays and school, as well as spending even more for apartment and dorm.
It is, therefore, a decision made by the principal that a branch would be built in Kota
Kinabalu of Sabah. Planning to have the branch be operational in mid-2019, the
university have entrusted us, Innovative Cost Consultant Sdn Bhd to provide advice
over the procurement system and tender method best suited for their requirement,
which are:
1. Cost to completion to be within the budget
2. Timely delivery of the facility in order to commence operation in mid-2019
In this report, discussion will be made upon the commonly used procurement system
as well as tender method available in the construction industry. The report will also
provide recommendation based on the advantages and disadvantages listed out that
would be best suited for our client, Taylor’s University, for their construction plan and
also schedule will be planned out in later section of the report.

4. Procurement Method
Traditional or Conventional Method
figure 1.1 Traditional or Conventional Procurement Method
Traditional or conventional method is the procurement method in which the client
accepts design works that are separated from construction; consultants are
appointed for design, cost supervisory and produce document needed for tendering
such as architects, engineer, and quantity surveyors. On the other hand, contractors
would then be invited to price the complete set of document and designate proposed
building to its entirety. The document would demand the architect to coordinate
design instructions to variety of specialist. The main difference between traditional
method and design and build method is that the contractor do not have responsibility
for design. Offered prices are based on the bill of quantity.

5. Advantage
Cost certainty
In traditional method, cost certainty can be accomplished before contractor begin
work on site or at the award of the contract unless redesign is issued by the designer.
Cost certainty cannot be achieved when contracts are awarded before design is
completed making the design priced based on estimation which is uncertain.
Direct Influence
Client is able to have direct influence towards the design of the building. Thus, the
ability to have direct influence allows facilitation in greater level of functionality as
well as improvement of quality in overall design for the building.
Flexibility in Change
Making changes in contract are easy to arrange and manage. If changes are to be
made after awarding the contract to the contractor, the price of the design would
then be based on estimation from agreed price, making the price of the design
uncertain.
Familiarity
Due to how often conventional method is used in the construction industry, the
familiarity in the method becomes greater and applicable to even those new to the
industry. The familiarity in the method makes workload faster as a lot of the process
is understood with little to no announcement. It is also a tested method in which
making the method safe to apply provided that no mistakes are made and double
checking are constantly made.
Competitive Equity
Due to the information given to the contractor are all the same, the tenderer bidding
become fair. This makes the cheapest price on the building the most valuable among
the rest since the information such as material cost and MEP are more or less the
same in quality.

6. Disadvantage
Time
Traditional approach, as mentioned earlier, are divided into a group of specialist, in
most cases are from different companies and contractor. Due to this fact,
coordination between each specialist takes more time, ultimately takes longer time to
produce full contract documentation. Although a tender document with an incomplete
design can be produced but it may, as mentioned before, lead to weaker cost and
time certainty, possibly causing unnecessary dispute.
Involvement
Contractor, in this method, do not have any involvement in the design process. While
the design could be aesthetically or in quality perfect, client would take more risk
during construction period because contractor, who is experienced on site, do not
provide advice to the design that is certain during construction period.
Dispute
The separation in workload could cause dispute often. Designers would find issue in
the workmanship as well as choice of material of the contractor on the building
whereas the contractors would question that applicability or the design of the building.
Client, generally, would have hard time solving the dispute and ends up delaying the
project, making the project even more expensive. In worst case scenario, the project
is put on hiatus or cancelled.
Flexibility in changes
While making change in design is easy, it is important to consider the consequence
of doing so. The change in design would, as mentioned above, create an uncertainty
in the price of the project. Another issue to consider is the addition in cost and time
for the specialist to redesign. Most designer would consider redesigning of the
building as a new one thus charging clients a large percentage from the old one.

7. Procurement Method
Design and Build Method
"An arrangement where one contracting organisation takes sole responsibility,
normally on a lump sum fixed price basis, for the bespoke design and construction of
a client's project."
(Masterman, 2002)
The approach allows design build developer to accept responsibility in supplying
expertise to supervise the design as well as the construction of project for owners
who do not have the required in-house staff. It is important that the responsibility is
stated within the contract with the extent of design liability as clearly as possible. The
simplicity makes the approach more suitable towards owner who have no
construction experience, do not have a lot of contact for specialist that can be trusted
or already owns a lot of other projects and do not have time to manage project.

8. Advantage
Singularity
With the singularity of performance by the contractor and the designer, the client
have the advantage of dealing with one single organisation that is responsible for all
aspect of the project.
Efficiency
This improves communication for not only between client and contractor but also
contractor and designers since the contractor is in control in the design element of
the project. Due to this, the operational efficiency of the project becomes significantly
efficient since communication have greatly improved, allowing flexibility in changes
of design.
Cost and Time
The simplicity in the approach reduces time and cost for the project significantly.
Provided that the client clearly specifies the requirement accurately, the certainty of
the final project cost can be attained. Design and Build also allow client to know the
financial commitment before commencement of work on site.
Reduction in Disputes
Since both designer and contractor are on the same side, there are generally less
likely for dispute to happen. Clients will have no risk of having the need to choose
side and place his/her project on hiatus or even cancelled.
Accountability
Unlike traditional approach in which the aspect of responsibility is never clear since
it’s composed of specialist either from different company or same and contractor
separately, Design and Build allows client to hold one part accountable for design
and construction of the entire project, relieving legal disputes.
Flexibility in Change
The flexibility of the project allows contractor to change design by client’s command
much faster than even traditional method. It is suggested that most design builder

9. are more willing to charge client at a lower fee than a combined fee for designer and
contractor.
Disadvantage
Quality
Compared to traditional method, the quality of design in Design and Build tend to be
lower. This is because the design is also influenced by the contractor who may focus
more onto the cost and applicability to build the project than the aesthetic or
structural of the project.
Bidding
There is difficulty in bidding since information provided is different. This means that
the cheapest price do not mean best value since there are variation in design and
detail. Thus bidding would also need to consider the price with the different quality of
design and detail.
Competition
Due to the fact that this approach requires experience, not every company can make
an effective design-build team. This would mean that client would have weaker
bargaining power which leads to difficulty in securing performance and payment
bond.
Influences
Client would have lesser influences in the design of the project since the design
aspect of the project is controlled by the contractor. The only thing the client does in
regard to design is that conveying his/her requirement so that the project may start
according to what the client need.

10. Recommendation
As mentioned in the introduction, it is required that the project be done within cost
budget and also delivery of the facility on time so that the university may commence
operation in mid of 2009.
Based on the advantage and disadvantage analysis made, we have come to a
conclusion that the most suited procurement method for the project is Design and
Build method.
It is perhaps important to emphasize on the simplicity of the system will reduce the
time needed to get the project done significantly and also allow flexibility to changes
quickly. The reduction in cost for the system also can ensure that the project would
stay within budget. While there maybe a few reductions in quality of design for the
building, it is also important to note that the efficiency of the construction and design
stage would increase the value of the project.
Traditional method on the other hand, is not suited for the work mainly because of its
complexity of the system for the project. With the amount of specialists and
contractor needed to be dealt with, time would easily be an issue and the same goes
for cost. The lack of involvement of the contractor for the project is a great risk since
it may cause issue during the construction stage which will delay the time needed to
get project done. Ultimately, the project may suffer hiatus or cancellation due to
unresolved disputes between contractor and designers.

11. Tender Method
Open Tendering
Open tendering, also known as open competitive bidding, open competition or open
solicitation and the procurement notices is a one-stage bidding process in which all
interested and responding to the contract notice will be invited to submit tender after
an invitation for bids or invitation to tender. The tender is open to all public and
interested firms can apply for the contract. The contract notice will state where and
when to obtain said tender documents, due date of acceptance. Suggestively, open
tendering is popular in government sectors. To experts, the most preferred tendering
method for goods, services and infrastructure works is open tendering. It is most
widely used in Malaysia for governmental projects.
Contractor, after meeting the requirement stated by the client in the local newspaper,
will respond to the advertisement to collect tender document. The document is sold
only up to a week after the closing of tender. Should contractor interested in
participating the tender, the fee for tender documentation needs to be collected to
collect the tender document. Complete tender document are required to be handed
with a tender deposit to show interest of participating in the project upon closing date
of tender. If the tenderer failed to win the tender, it is, most of the time, refundable.
Once tender is submitted, tender evaluation will be made where consultant and
quantity surveyors will evaluate the tender. It will be based on the, arithmetical error,
completeness of the tender, reasonableness of rates and elemental cost and more.
Report will be submitted to the client. The client will make a decision as to whether or
not to award based on the consultant’s recommendation. Based on the instruction to
tender, the client is not forced to accept the lowest tender but by his/her own reason.

12. Advantage
Favours
There are no favours in open tender since everyone can enter and submit tender to
be awarded. This method is fair to tenderer and also easier for new firms to enter
into the market. The list of all the proposed price and contractors will be given to the
client after the opening of tender is completed. It would usually take a couple of
weeks to complete the list. Once the list was placed, the client will contact the
chosen contractor to collect the document.
Competition
Client will have more option to choose the best value in tender due to the amount of
tendered option available and how open it is. In other words, client will have the
opportunity to choose the lowest price yet able to provide a decent to a better quality
for the job.
Employment and Growth
For contractor, it provides opportunity for firm to grow and also gain experience
through the use of new technology and also practice in tendering. Employment rate
also increases in that regard, increasing higher quality of work in project and
efficiency over time.
Familiarity
This method has been used traditionally or conventionally and due to this, most firms
are familiar with how the system works. Thus, the familiarity making this system very
easy and quickly for firms to submit tender.
Disadvantage
Openness
The method of tendering is way too open to be an advantage but also as a
disadvantage. There are possibility where client may choose a contractor that is not
suited for the project such as inexperience to produce what is required by the client.

13. The contractor that is chosen may be a complete stranger making trust issue or team
working with the designers a problem and may lead to disputes or inner politics.
Innovation
Another disadvantage to consider is that this method tends to focus purely on least-
cost solution and thus suppresses innovation. Causing a reduction in quality of the
building constructed due to the consideration of cost and its applicability.
Time
The method is generally lengthy in time to work with because of how the method
requires consultant and quantity surveyor to spend time checking the tender
document before approval. Most of the time are spent on both evaluation, waiting for
tenderers to submit tender and also make list for client.
Cost
Higher aggregate cost for tender and also advertising invitation to tender. Due to the
amount of tender allowed into the system, client will need to produce an amount of
copies of the tender document. Thus, the client is wasting resources if the number of
tenderer is lesser than the amount of tenders printed.

14. Tender Method
Selective Tendering
Selective tendering is a process of competitive tendering for award of the contract for
construction where client chooses the constructor who are invited to tender.
Contrasting with open tendering, the client selects contractor from limited list and
invitation to tender is made by the client to the contractor by a letter whereas open
tendering would have client uses local newspaper to advertise the invitation to tender
publicly.
There are two types of selective tendering; one stage and two stage selective
tendering. One stage selective tendering is where client advertise for contractor to
apply for short listing. Short listed contractor are considered to be suitable for the
work whereas approved list is maintained by the client through competition.
Two stage selective tendering was divided to two stages; the stage started off with
an invitation for tender. Once contractor is invited, they are to be informed that this is
a two stage tender. Client will start off by choosing the contractor through the simple
Bill of Quantity given by the contractor. The Contractor will then be give proposal for
the design of the project. The second stage involves both client and the contractor
negotiating the rates of the project for the second time.

15. Advantage
Quality
Due to the fact that the contractor chosen are with qualification, the building quality
will be done higher than new firms. They are publicly known to be professional
construction and will do their best to provide the best quality within given budget,
making the contractor not only effective in their experienced style of work but also
efficient in their use of resources provided.
Time and Resource
With the number of tenderers reduced, the time needed to assess the document
becomes much lesser and easier to deal with. The client also saves money on
printing lesser amount of document. With the reduction in assessment and saving of
cost, the project ultimately can proceed faster and also cheaper.
Qualification
Chosen contractors are usually reputable and qualified to take the job. Due to this
fact, contractor knows what’s best to get the project done more at a higher quality
and thus making productivity of the project improved. It’s quite certain that the
contractor will not attempt to cheapen the workmanship of the project because they
are, as aforementioned, reputable in the industry and trusted by the client enough.
Disadvantage
Favour
Unlike open tendering where all are welcome to tender equally without the reputation
placed into consideration. This method are more in favour towards firms more
experienced than other firms through evaluation of the companies’ background,
financial statement and previous works. Not only that, because of the fact that client
have greater power in choosing the contractor personally, the client may choose
contractor whom he/she are more familiar with or comfortable with.
Tendering Process

16. The tendering process will take longer because of the divided stages of pre-
qualification stage and qualification stage before the actual tender. The consultant,
similar to open tender, will go through the information provided by the tenderers such
as the financial statement, contractor background and past projects to ensure that
these contractor are legitimate for the project. The additional evaluation in each
contractor extends the tender process.
Cost
Greater expense will be paid to the contractor since these contractors are qualified
and professional for the project. Even though the tendered document may be priced
at a cheaper rate, the higher cost would be placed on the professional themselves
rather than the actual cost of the project.
Competition
Since Selective tendering process narrow down the amount of tenderer to only a few
unlike open tendering process where everyone are welcome to tender. Client would
then only have very few documents to choose, thus making the evaluation of the
document and the contractor and also time needed for decision making longer.

17. Tender Method
Negotiated Tendering
Negotiation tendering is majorly applied in the fields of engineering and construction
industry commencing from tendering to dispute resolution. The method is usually
done with only one contractor but it may up to three contractors.
The tender begins with the identification by the client of a suitable contractor to
assign with. The contractor selected can be either from client’s own list of preference
or from the advice of the professional consultant team. The selected contractor
would then be issued with the details such as the scope of work involved, relevant
drawings, design and information to satisfy the contractor needs as well as for the
contractor to fully appreciate the extent of obligation.
Some client would prepare and issue the contractor proper tender document with
nominated bills of quantities included to assist the contractor in pricing the project for
negotiation.

18. Advantage
Contribution
Contractor can contribute his expertise during design stage. This means that
contractor can also provide advisory aid to the designer as to how the project would
work best during construction before the design is finalize. The project, due to this,
becomes even more applicable and also cost-saving.
Experienced Contractors
Only experience and reputable contractor are invited for negotiation. The project
would now be done in higher quality and also with an amount of integrity. The project
will not suffer a change in cheaper and lower quality material or workmanship for
contractor’s own benefit because the contractor will need to maintain his reputation
as a professional contractor in the construction industry.
Risk
Owing to the fact that these contractors are chosen based on their profession and
reputation in the industry, contractor will take further step in making sure that the
project will construct with lesser to no risk of failure.
Dispute
Based on experts, negotiation tendering has lesser dispute and claim during the
construction stage. This is due to the fact that contractor have contribution in the
design stage and ensure that the project can be carried out realistically.
Time
Work can commence on site earlier with the method because of how negotiated
method shorten the period involved in appointing the contractor for the job. The
simplicity ultimately leads to using lesser amount of time needed to complete the job.

19. Disadvantage
Cost
The cost work tends to be higher than even both open and selective tendering
method since the work involves reputable and professional contractor for the job.
The contractor will negotiate only with the Quantity Surveyors for the price of the
project.
Transparency
Negotiated tendering is not publicly announced, it’s a private negotiation between
parties involved in the project. Due to this, the contractor, although integrity publicly
assured, may price the Bills of Quantity to suit his own benefit.

20. Recommendation
These are the three tender methods that is commonly used; Open tendering,
Selective tendering and Negotiated tendering. While all of them have their own
advantages and disadvantages, it is recommended that selective tendering fits my
client’s, Taylors University, requirement more in their production of a new branch
with a limited cost budget and time commencement.
The tender we advise our client to use would be Selective Tender. Open Tender’s
main issue is its openness to the public. With the amount of tenderers allowed to
submit their document, it costs more to hire specialists to evaluate the document
submitted to them and also printing copies of the document. Time is also ultimately
spent on evaluating the tender document, leading to starting the project much later.
Negotiated tendering, on the other hand, is more suited for civil works more than
architectural works. Client may risk integrity issue with the contractor since the work
is not publicly announced and also the cost of work would be higher and may cause
the budget to suffer.
In the end, Selective tendering is best suited for the project since it consumes less
time to start work thanks to the reduction in tenderers. The evaluation of document is
simplified and saves cost and resources to print lesser document. It is also important
to note that the contractor chosen are qualified to get the job done and also do not
face integrity risk since the job application is done semi-publicly.

21. Schedule of Works
Table 1:
Schedule of
works

22. Reference
1. Baker, E., & Champrion, R. (2008). Tendering and procurement in
construction. Coventry: RICS Books.
2. Brook, M. (1998). Estimating and tendering for construction work. Oxford:
Butterworth-Heinemann.
3. Commission for Architecture and the Built Environment (CABE). (n.d.).
Retrieved May 20, 2016, from
http://webarchive.nationalarchives.gov.uk/20110118095356/http:/www.cabe.o
rg.uk/buildings/procurement
4. Design-Build vs. Traditional Construction:. (n.d.). Risk and Benefit Analysis.
Retrieved May 20, 2016, from
http://www.theconstructionreport.org/Articles/Design Build.pdf
5. Managing Your School Building Project. (2012). Design and Build or
Traditional Procurement? Retrieved May 20, 2016, from
http://www.squiresandbrown.co.uk/wp-content/uploads/2013/09/Design-and-
Build-or-Traditional-Procurement.pdf
6. Greenhalgh, B., & Squires, G. (2011). Introduction to building procurement.
Abingdon, Oxon: Spon Press.
7. Turina, N., Radujkovic, M., & Car-Pusic, D. (n.d.). "DESIGN AND BUILD" IN
COMPARISON WITH THE TRADITIONAL PROCUREMENT METHOD AND
THE POSSIBILITY OF ITS APPLICATION IN THE CROATIAN
CONSTRUCTION INDUSTRY. Retrieved May 20, 2016, from
https://bib.irb.hr/datoteka/362416.65-Turina_Radujkovic_Car-Pusic.pdf.
8. Turner, A. (1997). Building procurement. Houndsmills, Basingstoke,
Hampshire: Macmillan.