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Mohd Ashraf Fateh

Dip. QS, Bsc. QS (Hons.), Msc. ICPM

Credit Hours Evaluations and Marks Distribution


60% Final Exam 40% Carry Marks
Attendance Test Assignment Exercise Punctuality, Dress Code & Attitude

Class Representative/Asst. Class Representative Calculator Dimension Paper SMM 2

Basic Math Formula

CLO

OUTCOME

CLO 1 CLO 2

to recognize the estimating method to describe the procedures, flows and routine in tendering a project
to differentiate the type of contracts in the construction industry to discuss the method of dispute resolution in construction.

CLO 3

CLO 4

To understand the basic principles in estimating and contract To understand any works related to estimating and contract To appreciate the tendering procedure

Introduction of measurements principles Introduction to SMM2 Standard method of measurement Measurement of Site Clearing Measurement of Work Below Lowest Floor Finish (Substructure) Introduction of construction cost estimating Building cost estimating methods Law of Contract Standard Forms and Types of Construction Contract Tendering Dispute Resolution Method Payment

Ahamad Abdullah (2003). Pengukuran Kuantiti Bangunan. 1st Edition, Pearson

Ahamad Abdullah (2006). Anggaran Kos Kerja Bangunan. 2nd Edition. Pearson
Bockrath, J., (2000). Contracts and the Legal Environment for Engineers and Architects, 6th. Edition, McGraw-Hill. Hinze, J., (2001). Construction Contracts, 2nd. Edition, McGraw-Hill.Dearle and Henderson, (1988). Management Contracting, E&FN Spon, London. Seely, Ivor H., (1987). Civil Engineering Quantities, 4th. Edition, MacMillan Education Ltd. Bunni, N.G., (1991). The FIDIC form of contract, BSP Professional book, London. Dearle and Henderson, (1988). Management Contracting, E&FN Spon, London. Smith, R.C., (1986). Estimating and Tendering for Building Works, Longman Inc., New York. Bockrath, J., (2000). Contracts and the Legal Environment for Engineers and Architects, 6th. Edition, McGraw-Hill.

Why do we need to do a measurement/taking off? What is a Bill of Quantities?


MEASUREMENT / TAKING OFF BQ PRODUCTION PRICING TOTAL AMOUNT FOR PROJECT

Functions of Bill of Quantities:


A part of document tender/contract As a basis for a interim payment As a basis to evaluate variation order To assist in managing the project As a source of cost data

Prepared by Qs A documents setting out in schedule forms where the quantities, descriptions and rates of the works to be undertaken The tenderer need to price the BoQ
MEASUREMENT / TAKING OFF BQ PRODUCTION TOTAL AMOUNT FOR PROJECT

PRICING

EQUIPMENT & INFO SMM 2 Measurement equipment:


Ball Pen
Blue/Black Red

Dimension Paper Scale Ruler Calculator

PROCEDURES Prepare taking off list & query list Verify all drawings & specification Page title & number Sequence of jobs NEAT & TIDY!!!

Get all the math formula (all shapes)

Standard Method of Measurement of Building Works (Second Edition) (SMM 2) Timeline:


1959 = SMM 1(Imperial Edition)SMM 4, 1948 (UK) 1976 = SMM 1(Metric Edition) 2000 = SMM 2SMM 6, 1979 (UK)

NO. 1.

ITEM Concrete grade 30 in landing slab Formwork to soffits of landing slab Main Bar Reinforcement in landing slab Link, stirrups and binder in landing slab

UNIT M3

2.

M2

3.

KG

KG

An A4 paper Widely used during the 90s

A : Timesing Column (Multiplying/Dividing) B : Dimension Column


Meter (m) 1 dimension Meter Square (m2) 2 dimension Cubic Meter (m3) 3 dimension Item / No. 1 dimension

C :Squaring Column D : Description Column & Side Cast

EXAMPLES OF TIMESING
L W T/D

Cubic Meter (m3)

L W

Meter Square (m2)

Meter (m)

Item / No.

ITEM

SMM REQUIREMENT

DESCRIPTION 1 brickwall in common brick in cement and sand (1:6) mortar in English bond, load bearing wall

1 BRICK 1. Work classification (G.1.1b) WALL 2. Type of brick (G.3.1a) 3. Type of bonding (G.3.1b) 4. Ratio and mixture of mortar (G.3.1c) 5. Wall thickness (G.3.3) 6. Class (G.3.3a)

EVERYTHING NEED TO BE IN RED!!

Ddt = Deduct Ditto = As mentioned above A.b.d = as before described

DIMENSION PAPER ELEMENT : WBLFF (PAD FOUNDATION, GROUND BEAM, CONC BED) DIMENSION DESCRIPTION
Length 7.200 a dd 2 corners (2 x 0.625) 1.250 8.450 Wi dth 7.200 a dd 2 corners (2 x 0.625) 1.250 8.450

PAGE : 1 OF 3 DESCRIPTION
Length 7.200 l es s 2 col s tump (2x0.3) -0.600 6.600

DIMENSION

Depth 0.500 l ea n concrete 0.025 0.525

4 8.45 8.45
Exca va ti on to remove top s oi l a vera ge depth 100mm

6.60 0.15 0.53


Depth 0.125 0.150 0.275

Exca va te trench to recei ve ground bea m s ta rti ng from reduce l evel ma x depth n.e 0.25m

Concrete bed ha rdcore l es s top s oi l

Item

-0.100 0.175

Al l ow for keepi ng the s urfa ces of the s i te & exca va ti on free of s urfa ce wa ter

8.45 8.45 0.18

Exca va te to reduce l evel ma x depth n.e 0.25m

Concrete gra de 7 bl i ndi ng n.e 100mm thi ck l a i d on ea rth

4
Depth l ea n concrete footi ng col umn s tump 0.030 0.300 0.750 1.080

1.25 1.25 0.03 4 6.6 0.15 0.03 4 1.25 1.25 0.30 4 0.30 0.30

(Pa d Founda ti on)

4 1.25 1.25 1.08


Exca va te pi t to recei ve pa d footi ng s ta rti ng from reduce l evel ma x depth n.e 1.50m

(Ground Bea m)

Rei nforced i ns i tu concrete Gra de 20 i n i s ol a ted founda ti on Ba s es (Pa d Founda ti on), i n 4 nos

Rei nforced i ns i tu concrete Gra de 30 i n i s ol a ted col umn s tump

Thick brickwall

PERIMETER / GIRTH (metre) Length 24.00 Length 24.00 Width 10.00 Width 10.00 Total for overall 68.00
24.00 -0.45 23.55 10.00 -0.45 9.55 224.90

AREA
Outer Dimension Length less brickwall TOTAL LENGTH

Width less brickwall TOTAL WIDTH TOTAL AREA

Length Less brickwall Width Less brickwall Total for 1 set Total for overall

(metre) 24.00 -0.23 10.00 -0.23 33.54 67.08

Length (2 x 24.00) Width (2 x 10.00) add recess (2 x 4.00) TOTAL

(metre) 48.00 20.00 68.00 8.00 76.00

Area A Length less outer 2 angle Total Length A Width less outer 2 angle Total Width B Total Area A

12.00 m -0.45 m 11.55 m 10.00 m -0.45 m 9.55 m 110.30 m2

Area B Length add outer 2 angle Total Length B Width less outer 2 angle less reses Total Width B Total Area B

6.00 m 0.45 m 6.45 m 10.00 m -0.45 m -4.00 m 5.55 m 35.80 m2

Area C Length less outer 2 angle Total Length C Width less outer 2 angle Total Width C Total Area C

6.00 m -0.45 m 5.55 m 10.00 m -0.45 m 9.55 m 53.00 m2

Total Area A Total Area B Total Area C Total Area

(meter) 110.30 m2 35.80 m2 53.00 m2 199.10 m2

Section D Two ways to measured:


D.2 D.6 (1st Method) Measured separately:
Undergrowth Hedges Trees

D.8 (2nd Method) Measured together but must stated area of the clearing

TAKING OFF LIST ELEMENT : EXCAVATION & EARTHWORK (SITE CLEARING) NO. 1 Site Clearing ITEM UNIT Item

DIMENSION PAPER ELEMENT : EXCAVATION & EARTHWORK (SITE CLEARING) DIMENSION DESCRIPTION DIMENSION

PAGE : 1 OF 1 DESCRIPTION

Gros s Area l ength wi dth 50.00 70.00 3500.00 Deduct Area (Tri a ngl e) 1/2 Ba s e Hei ght 0.50 25.00 70.00 875.00

Nett Area Overa l l Deduct Tri a ngl e 3500.00 -875.00 2625.00 Cutti ng down trees & cl ea ri ng s i te undergrowth, bus hes , s crub a nd hedges & grubbi n up thei r roots & fi l l i ng voi ds l eft by remova l roots wi th s el ected ma teri a l a ri s i ng from ma teri a l (i n 2625 m2)

REFER TO CLAUSE D.8

Item

QUERY LIST ELEMENT : EXCAVATION & EARTHWORK (SITE CLEARING) NO. QUERIES ASSUMPTIONS 1 Material to filling voids after site Selected Material arising from clearing excavation REMARKS Confirmed with Engineer & Architect

TAKING OFF LIST ELEMENT : EXCAVATION & EARTHWORK (SITE CLEARING) NO. 1 Site Clearing ITEM UNIT Item

Bill No. 2 - Excavation & Earth Works ITEM DESCRIPTION EXCAVATION AND EARTHWORK Site Clearing A
Cutti ng down trees & cl ea ri ng s i te undergrowth, bus hes , s crub a nd hedges & grubbi n up thei r roots & fi l l i ng voi ds l eft by remova l roots wi th s el ected ma teri a l a ri s i ng from ma teri a l (i n 2625 m2)

UNIT QUANTITY RATE (RM) AMOUNT (RM)

ITEM

TOTAL TO FINAL SUMMARY : BILL NO. 2/1

Final Summary ITEM A DESCRIPTION Bill No. 2 - Excavation & Earth Works UNIT QUANTITY RATE (RM) AMOUNT (RM)

TOTAL AMOUNT :

Any works under ground floor slab is called substructure or Work Below Lowest Floor Finish (WBLFF) Consist of :
Excavation Lean/Concrete Blinding Foundation Column Stump Ground Beam Hardcore Damp Proof Membrane Ground floor slab/bed

Types of excavation:
Top Soil (compulsory to all excavation) Reduce level (compulsory to all excavation) Pit excavation Trench excavation

D.15 keeping the excavation free of water (compulsory to all excavation)

Section D D.10 depth classification


Max depth n.e 0.25m Max depth n.e 1.00m Max depth n.e 2.00m Max depth n.e 4.00m And thereafter in 2.00m stages
<0.25m <1.00m <2.00m <4.00m

Original Ground Level (Top Soil) Level After Excvation of Top Soil (Reduced Level)

D.11 starting level

D.7 & D.22 In Meter Square (m2) Length X Width State:


To used back or dispose Average Depth

Original Ground Level (Top Soil) Level After Excvation of Top Soil

D.12.4
In cubic meter (m3) Length x Width x Depth State:
Stages of depth

Original Ground Level (Top Soil) Level After Excavation of Top Soil Excavation to Reduce Level

D.12.6
In cubic meter (m3) Measure separately for both dimension less than 1.25m State:
To receive what? No. Starting level Stages of depth

Excavation of pit foundation

D.12.8 In cubic meter (m3)

State:

To receive what? Starting level Stages of depth

D.15
Compulsory to all excavation Measured as item An item to allow for keeping the surface of the site and excavation free from surface water

TAKING OFF LIST ELEMENT : WBLFF NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ITEM EXCAVATE TO REMOVE TOP SOIL EXCAVATE TO REDUCE LEVEL EXCAVATE PIT TO RECEIVE PAD FOUNDATION EXCAVATE TRENCH TO RECEIVE GROUND BEAM KEEPING SITE & EXCAVATION FREE FROM WATER CONCRETE BLINDING FOR PAD FOUNDATION & GROUND BEAM CONCRETE GRADE 20 FOR PAD FOUNDATION CONCRETE GRADE 30 FOR COLUMN STUMP CONCRETE GRADE 30 FOR COLUMN STUMP FORMWORK FOR PAD FOUNDATION FORMWORK FOR COLUMN STUMP FORMWORK FOR GROUND BEAM 12MM REINFORCEMENTFOR PAD FOUNDATION & GROUND BEAM 8MM REINFORCEMENT FOR GROUND BEAM 20MM REINFORCEMENT FOR COLUMN STUMP 8MM REINFORCEMENT FOR COLUMN STUMP HARDCORE DPM CONCRETE BED UNIT M2 M3 M3 M3 ITEM M3 M3 M3 M3 M M2 M M (KG) M (KG) M (KG) M (KG) M2 M2 M3

DIMENSION PAPER ELEMENT : WBLFF DIMENSION DESCRIPTION


Length 7.200 a dd 2 corners (2 x 0.625) 1.250 8.450

PAGE : 1 OF 3 DIMENSION DESCRIPTION


Length 7.200 l es s 2 col s tump (2x0.3) -0.600 6.600

D.1
a dd 2 corners (2 x 0.625)

Wi dth 7.200 1.250 8.450 l ea n concrete

Depth 0.500 0.025 0.525

D.12.7

4 8.45 8.45
Exca va ti on to remove top s oi l a vera ge depth 100mm

6.60 0.15 0.53


Depth 0.125 0.150 0.275

Exca va te trench to recei ve ground bea m s ta rti ng from reduce l evel ma x depth n.e 1.00m

D.12.4

Concrete bed ha rdcore l es s top s oi l

D.15
Item
Al l ow for keepi ng the s urfa ces of the s i te & exca va ti on free of s urfa ce wa ter

-0.100 0.175

8.45 8.45 0.18

Exca va te to reduce l evel ma x depth n.e 0.25m

Concrete gra de 7 bl i ndi ng n.e 100mm thi ck l a i d on ea rth

D.12.4 D.11 D.10


4 1.25 1.25 1.08

Depth l ea n concrete footi ng col umn s tump 0.025 0.300 0.750 1.075 Exca va te pi t to recei ve pa d footi ng s ta rti ng from reduce l evel ma x depth n.e 2.00m

1.25 1.25 0.03 4 6.60 0.15 0.03 4

(Pa d Founda ti on)

F.3.3
(Ground Bea m)

F.3.15

QUERY LIST ELEMENT : WBLFF NO. QUERIES 1 Method to keeping site & excavation free from water ASSUMPTIONS By Pump REMARKS Confirmed with Site Engineer/Architect

Concrete for substructure generally:


Lean Concrete / Concrete blinding Foundation Column stump Ground beam Lower floor/Concrete Bed Section F

Any structure that laid on earth F.1.6 & F.2.1 Measured in m3 (Length x Width x Thickness) Need to stated:
Thickness:
N.e 100mm 100mm 150mm 150mm 300mm Exceeding 300mm

Grade of concrete

F.3.1 In Cubic Meter (m3) Length x Width x Thickness Stated :


Type of foundation No.

F.3.1 In Cubic Meter (m3) Length x Width x Height Stated for column stump

F.3.5 In Cubic Meter (m3) Length x Width x Thickness

In cubic meter (m3) F.2.1, states:


N.e 100mm 100mm -150mm 150mm 300mm Exceed 300mm

F.1.6 shall stated where it is poured

Section F.10 F.10.3 measured to the surface of the finished concrete/structure (no additional for wastage etc) F.10.7 formwork to curved shall be measured separately & state geometrical nature

F.11.1 In meter square (m2) if height exceeding 1.00m In meter (m) if height n.e 1.00m, shall state height:
N.e 250mm 250mm 500mm 500mm 1.00 meter

State the usage

TAKING OFF LIST ELEMENT : WBLFF NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ITEM EXCAVATE TO REMOVE TOP SOIL EXCAVATE TO REDUCE LEVEL EXCAVATE PIT TO RECEIVE PAD FOUNDATION EXCAVATE TRENCH TO RECEIVE GROUND BEAM KEEPING SITE & EXCAVATION FREE FROM WATER CONCRETE BLINDING FOR PAD FOUNDATION & GROUND BEAM CONCRETE GRADE 20 FOR PAD FOUNDATION CONCRETE GRADE 30 FOR COLUMN STUMP CONCRETE GRADE 30 FOR COLUMN STUMP FORMWORK FOR PAD FOUNDATION FORMWORK FOR COLUMN STUMP FORMWORK FOR GROUND BEAM 12MM REINFORCEMENTFOR PAD FOUNDATION & GROUND BEAM 8MM REINFORCEMENT FOR GROUND BEAM 20MM REINFORCEMENT FOR COLUMN STUMP 8MM REINFORCEMENT FOR COLUMN STUMP HARDCORE DPM CONCRETE BED UNIT M2 M3 M3 M3 ITEM M3 M3 M3 M3 M M2 M M (KG) M (KG) M (KG) M (KG) M2 M2 M3

DIMENSION PAPER ELEMENT : WBLFF DIMENSION DESCRIPTION


Length 7.200 a dd 2 corners (2 x 0.625) 1.250 8.450 Wi dth 7.200 a dd 2 corners (2 x 0.625) 1.250 8.450

PAGE : 1 OF 3 DIMENSION DESCRIPTION


Length 7.200 l es s 2 col s tump (2x0.3) -0.600 6.600

D.1

Depth 0.500 l ea n concrete 0.025 0.525

4 8.45 8.45 71.40


Exca va ti on to remove top s oi l a vera ge depth 100mm

D.12. 7

6.60 0.15 0.53 2.10


Depth 0.125 0.150 0.275

Exca va te trench to recei ve ground bea m s ta rti ng from reduce l evel ma x depth n.e 1.00m

D.12.4

D.15
Al l ow for keepi ng the s urfa ces of the s i te & exca va ti on free of s urfa ce wa ter

Concrete bed ha rdcore l es s top s oi l

Item

-0.100 0.175

D.12. 4 D.11 D.10

8.45 8.45 0.18

Exca va te to reduce l evel ma x depth n.e 0.25m

Concrete gra de 7 bl i ndi ng n.e 100mm thi ck l a i d on ea rth

F.1.6 F.3.1

12.85 4
Depth l ea n concrete footi ng col umn s tump 0.025 0.300 0.750 1.075

1.25 1.25 0.03 0.19 4 6.60 0.15 0.03 0.12 4 1.25 1.25 0.30 1.88 4 0.30 0.30

(Pa d Founda ti on)

4 1.25 1.25 1.08


Exca va te pi t to recei ve pa d footi ng s ta rti ng from reduce l evel ma x depth n.e 2.00m

(Ground Bea m)

6.75

F.3.3
Rei nforced i ns i tu concrete Gra de 20 i n i s ol a ted founda ti on Ba s es (Pa d Founda ti on), i n 4 nos

F.3.15

Rei nforced i ns i tu concrete Gra de 30 i n i s ol a ted col umn s tump

F.3.5

DIMENSION PAPER ELEMENT : WBLFF DIMENSION 4 6.60 0.15 0.50


Rei nforced concrete gra de 20 i n ground bea m

PAGE : 2 OF 3 DESCRIPTION DIMENSION DESCRIPTION


Pa d Founda ti on (Length) 1.250 l es s 2conc cover(2 x 0.04) -0.080 1.170 2 bends (2 x 0.30) l es s 2conc cover(2 x 0.04) 0.600 1.770 -0.080 1.690 Gi rth

Length Length

1.250 1.250 1.250 1.250 5.000

Ground Bea m(Length) 7.200 l es s 2conc cover(2 x 0.04) -0.080 7.120 2 bends (2 x 0.30) 0.600 7.720

F.8.4a

F.11.1

Wi dth Wi dth

4 5.00

Formwork to edges /s i des of pa d founda ti on exceedi ng 250mm 500mm hi gh

F.15 F.15.4
4

12mm di a meter hi gh tens i l e s teel rei nforcement i n s tra i ght & bend ba rs i n founda ti on :

Gi rth Si des of col umn s tump (4 x 0.30) 1.200

4 10 1.69
(Pa d Founda ti on)

F.11.1
4 2

1.20 0.75

Formwork to edges /s i des of i s ol a ted col umn s tump

4 4 7.72
(Ground Bea m)

6.60

Formwork to ground bea m exceedi ng 250mm & n.e 500mm hi gh

F.8.1 Stated :
Type, quality and diameter of steel Section of bar if other than plain circular

F.8.2 Bar reinforcement shall be measured in meter (converted to KG) F.8.4a for foundation, column, pier bases, ground beams, pile caps and the like F.8.4j for insolated column, beams and lintels F.9.3 for fabric reinforcement (m2)

5Y12-250 5 bars of reinforcement Y = high yield (high tensile) 12 = 12mm diameter 250 = 250mm center to center 6R8-225 6 bar of reinforcement R = mild steel 8 = 8mm diamter 225 = 225mm center to center

Conversion Factor:
DIAMETER 6MM 8MM 10MM 12MM 16MM 20MM 22MM FACTOR 0.222 0.395 0.617 0.888 1.579 2.467 2.985

As a:
base foundation before receiving concrete bed Filling up to make up level

D.26:
Thickness exceeding 250mm, measured in m3 Thick n.e 250mm measured in m2 (stated the thickness)

K.1.1a K.2.3:

M2 if covering > 300m M if covering < 300m (stating stages of 150mm) Shall stated classification:
Flat covering or slope n.e 10 Slope > 10 n.e 45 from horizontal Slope > 45 from horizontal and vertical coverings

K.2.1, stated:

Kind & quality of material Thickness & number of coats & layer Nature of base Surface treatment

TAKING OFF LIST ELEMENT : WBLFF NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ITEM EXCAVATE TO REMOVE TOP SOIL EXCAVATE TO REDUCE LEVEL EXCAVATE PIT TO RECEIVE PAD FOUNDATION EXCAVATE TRENCH TO RECEIVE GROUND BEAM KEEPING SITE & EXCAVATION FREE FROM WATER CONCRETE BLINDING FOR PAD FOUNDATION & GROUND BEAM CONCRETE GRADE 20 FOR PAD FOUNDATION CONCRETE GRADE 30 FOR COLUMN STUMP CONCRETE GRADE 30 FOR COLUMN STUMP FORMWORK FOR PAD FOUNDATION FORMWORK FOR COLUMN STUMP FORMWORK FOR GROUND BEAM 12MM REINFORCEMENTFOR PAD FOUNDATION & GROUND BEAM 8MM REINFORCEMENT FOR GROUND BEAM 20MM REINFORCEMENT FOR COLUMN STUMP 8MM REINFORCEMENT FOR COLUMN STUMP HARDCORE DPM CONCRETE BED UNIT M2 M3 M3 M3 ITEM M3 M3 M3 M3 M M2 M M (KG) M (KG) M (KG) M (KG) M2 M2 M3

F.3.5

DIMENSION PAPER ELEMENT : WBLFF DIMENSION 4 6.60 0.15 0.50


Rei nforced concrete gra de 20 i n ground bea m

PAGE : 2 OF 3 DESCRIPTION DIMENSION DESCRIPTION


Pa d Founda ti on (Length) 1.250 l es s 2conc cover(2 x 0.04) -0.080 1.170 2 bends (2 x 0.30) l es s 2conc cover(2 x 0.04) 0.600 1.770 -0.080 1.690 Gi rth Length Length 1.250 1.250 1.250 1.250 5.000 Formwork to edges /s i des of pa d founda ti on exceedi ng 250mm 500mm hi gh 2 bends (2 x 0.30) l es s 2conc cover(2 x 0.04) Ground Bea m(Length) 7.200 -0.080 7.120 0.600 7.720

1.98

F.8.4a

F.11.1

Wi dth Wi dth

4 5.00 20.00

F.15 F.15.4
4

12mm di a meter hi gh tens i l e s teel rei nforcement i n s tra i ght & bend ba rs i n founda ti on :

Gi rth Si des of col umn s tump (4 x 0.30) 1.200

4 10 1.69 67.60 60.03 4 8 7.72 247.04


(Ground Bea m) =247.04 m x 0.888 (Pa d Founda ti on) =67.60 m x 0.888

F.11.1
4 2

1.20 0.75

3.60

Formwork to edges /s i des of i s ol a ted col umn s tump

=60.03 kg

6.60 52.80

Formwork to ground bea m exceedi ng 250mm & n.e 500mm hi gh

219.37

=219.37 kg

DIMENSION PAPER ELEMENT : WBLFF DIMENSION DESCRIPTION DIMENSION

PAGE : 3 OF 3 DESCRIPTION
Length/Wi dth Ground Bea m (Gi rth) 7.200 l es s 2 col s tump -0.600 6.600

F.8.4a

1.300 l es s 8 conc cover hook (24 x 0.008) -0.320 0.980 0.192 1.172

6.60 6.60 43.56

4 28 1.17 131.26 51.85


8mm di a meter mi l d s teel rei nforcement i n s ti rrups i n ground bea ms = 131.26 m x 0.395 = 51.85kg

Fi l l i ng up to ma ke up l evel a vera ge 150mm thi ck wi th ha rdocre of cl ea n ha rd broken s tones obta i ned off s i te

D.26 D.23.1

6.60 6.60 43.56

Pol ythene not l es s tha n 1000 ga uge hori zonta l d.p.m l a pped 10mm a t joi nts l a i d on ha rdcore

K.2.3 F.3.1 F.3.8 F.1.6

Length pa d col s tump l a p i n col 0.300 0.750 0.500 1.550 l es s conc cover -0.400 1.150 bend 0.200 1.350

F.8.4a

6.60 6.60 0.13 0.86

Concrete gra de 20 i n bed 100mm 150mm thi ck l a i d on ha rdcore

4 8 1.35 43.20 106.57


20mm di a mter hi gh tens i l e s teel rei nforcement i n s tra i ght & bend ba r i n i s ol a ted col umn =43.20 m x 2.467 = 106.57 kg Gi rth Gi rth overa l l 1.200 -0.320 0.880 0.192 1.072

F.8.5
4 6 1.07 25.68

l es s 8 conc cover hooks (24 x 0.008)

8mm di a meter mi l d s teel rei nforcement l i nk i n i s ol a ted col umn s tump =25.68 m x 0.395 = 10.14 kg

10.14

QUERY LIST ELEMENT : WBLFF NO. QUERIES 1 Material & Source of hardcore 2 3 4 5 6 Method to keeping site & excavation free from water Thickness of excavate top soil Thickness of Concrete Cover ASSUMPTIONS Hard broken stones & off site By Pump 100mm deep 40mm thick REMARKS Confirmed with Site Engineer Confirmed with Site Engineer Confirmed with Site Engineer Confirmed with Site Engineer Confirmed with Site Engineer Confirmed with Site Engineer

Grade of Lean/Concrete Blinding Grade 7 Grade Concrete for footings, ground beams, bed Grade 20

Bill No. 2 - Excavation & Earth Works ITEM DESCRIPTION EXCAVATION AND EARTHWORK Excavate to Top Soil Average depth 100mm Excavate to Reduce Level Max depth n.e 0.25m Excavate Pit to Receive Pad Footing Starting From Reduce Level Max depth n.e 2.00m Excavate trench to receive ground beam starting from reduce level Max depth n.e 1.00m Disposal of Water Allow for keeping the surfaces of the site & excavation free of surface water Hardcore Filling up to make up level average 150mm thick with hardocre of clean hard broken stones obtained off site UNIT QUANTITY RATE (RM) AMOUNT (RM)

M2

71

M3

13

M3

M3

Item

M2

44

TOTAL TO FINAL SUMMARY : Bill No. 2 /1

Bill No. 3 - Concrete Works ITEM DESCRIPTION CONCRETE WORKS Concrete grade 7 blinding n.e 100mm thick laid on earth for: A B Pad Footing Ground Beam Reinforced insitu concrete Grade 20 in: Pad Footing Ground Beam Concrete Bed Reinforced insitu concrete Grade 30 in: Column Stump Formwork to edges/sides exceeding 250mm 500mm high for: Pad foundation Ground Beam Formwork to edges/sides for: Column stump 12mm diameter high tensile steel reinforcement in straight & bend bars in foundation : K L Pad Foundation Ground Beam KG KG 60 219 TOTAL TO COLLECTION : Bill No. 3/1 M3 M3 0.19 0.12 UNIT QUANTITY RATE (RM) AMOUNT (RM)

C D E

M3 M3 M3

2 2 1

M3

0.27

G H

M M

20 53

M2

Bill No. 3 - Concrete Works ITEM DESCRIPTION CONCRETE WORKS 8mm diameter mild steel reinforcement in: Ground beams Column Stump 20mm diamter high tensile steel reinforcement in straight & bend bar in: Column Stump UNIT QUANTITY RATE (RM) AMOUNT (RM)

A B

KG KG

52 10

KG

107

Water Proofing System Polythene not less than 1000 gauge horizontal d.p.m lapped 10mm at joints laid on hardcore M2

44

TOTAL TO COLLECTION : Bill No. 3/2

Bill No. 3 - Concrete Works ITEM DESCRIPTION Collection Page Bill No.3/1 Collection Page Bill No.3/2 UNIT QUANTITY RATE (RM) AMOUNT (RM)

TOTAL TO FINAL SUMMARY : Bill No. 3/3

Final Summary ITEM A B DESCRIPTION Bill No. 2 - Excavation & Earth Works Bill No. 3 - Concrete Works UNIT QUANTITY RATE (RM) AMOUNT (RM)

TOTAL AMOUNT :

TAKING OFF LIST ELEMENT : WBLFF NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ITEM EXCAVATE TO REMOVE TOP SOIL EXCAVATE TO REDUCE LEVEL EXCAVATE PIT TO RECEIVE PAD FOUNDATION EXCAVATE TRENCH TO RECEIVE GROUND BEAM KEEPING SITE & EXCAVATION FREE FROM WATER CONCRETE BLINDING FOR PAD FOUNDATION & GROUND BEAM CONCRETE GRADE 20 FOR PAD FOUNDATION CONCRETE GRADE 30 FOR COLUMN STUMP CONCRETE GRADE 30 FOR COLUMN STUMP FORMWORK FOR PAD FOUNDATION FORMWORK FOR COLUMN STUMP FORMWORK FOR GROUND BEAM 12MM REINFORCEMENTFOR PAD FOUNDATION & GROUND BEAM 8MM REINFORCEMENT FOR GROUND BEAM 20MM REINFORCEMENT FOR COLUMN STUMP 8MM REINFORCEMENT FOR COLUMN STUMP HARDCORE DPM CONCRETE BED UNIT M2 M3 M3 M3 ITEM M3 M3 M3 M3 M M2 M M (KG) M (KG) M (KG) M (KG) M2 M2 M3

In a group of 4 Write a detail report on: The Application of Information Technology in Estimation Topics to cover:
History/Origin Features of the software Advantages/Disadvantages Comparison between using Manual & Software Estimation in term of:
Time Quality Cost

SUBMIT HARD & SOFTCOPY ON (3rd January 2013, THURSDAY)

What is an estimate?
FOR A BUNGALOW IT WILL COST AROUND RM 2MIL

I WANT TO BUILD A BUNGALOW

AN ACTIVITIES THAT ENABLES TO OFFERS TO PRODUCE AN OUTPUT WITH A SUM OF MONEY IN A RETURN

Seeley (1996)
To produce a cost forecast for a project without a detail design. For clients to be more aware on financial impacts and liabilities.

A good estimation will produce a good cost plan for the entire project phase.

PARTY Clients

Architect / Engineer

FUNCTIONS & IMPORTANCE To prepare a sufficient monetary budget to fund the project To get an idea on the monetary impacts/liabilities As an indicator against the probable cost at early stage of construction To assist the clients getting the most competitive tender As a guidelines to design

PARTY Contractor

Project Manager

FUNCTIONS & IMPORTANCE To prepare a realistic offers to undertake the project Tender entry to ensure that the tender submitted is competitve To determine the actual construction cost, hence to determine percentage of profit To avoid wastage obtain accurate info on resources As a guidelines to control the project cost

Types of project Size and design Quality and types of finishes Method of construction Variation of prices
Materials Labour Plant

SCENARIO Actual Budget > Estimate

OPTIONS OF ACTION Downgrades the variables on factors of estimation Ask for a addition funds Stop/postpone the project

Estimate > Actual Budget

Proceed accordingly as plan Upgrades the variables on factors of estimation

Preliminary Stage
Unit Method Volume Method Gross Floor Area (GFA)

Detail Stage
Approximate Quantity Method

Also known as Cost According to Building Function Related with the occupancy Advantages:
Disadvantages:
Easiest & Fastest method Can be done without any single drawing

Too gross (not accurate) Only can be used for:

a standard design related to occupancy building

Multiplying the amount of occupancy with the unit price/occupancy. Estimation of a School Building:
Occupancy = 1000 students Unit price/occupancy = RM 1,500/students Therefore, total estimate for a School Building is: = Total occupancy x Unit price/occupancy = 1000 students x RM 1,500 = RM 1,500,000.00

Use widely back in the 90s Usually used for estimating building services components Advantages:

Disadvantages:

Fast

Too gross Cant help architect much in designing Difficult to get the similar past data cost

Multiplying the volume (m3) of building with the unit price/volume (m3)
20.00
0.60

3.50

10.00

3.50

1.00

PLAN VIEW
SECTION VIEW

Estimation of a School Building:


Volume of Building = Length x Width x Height = 20m x 10m x (1.00m+3.50m+3.50m+0.60m) = 1720m3 Unit price/m3 = RM 550/m3 Therefore, total estimate for a School Building is: = Volume (m3) x Unit price/volume (m3) = 1750m3 x RM550/m3 = RM 946,000.00

The most popular in Malaysia Plenty of cost data in the industries Advantages:
Easy to understand by architect and client Fast Wide range of data cost

Disadvantages:
Doesnt consider overall design of the building Plenty of variables need to be consider
Need to differentiate certain area:
Ventilation / Circulation Area doesnt bring profit

Multiplying the GFA (m2) of building with the unit price/GFA (m2)
172.50

172.50

PLAN SECTION

Estimation of a School Building:


GFA of Building = Length x Width (29,756.25m2) Unit price/m2 = RM 1500/m2 Therefore, total estimate for a School Building is: = GFA (m2) x Unit price/GFA (m2) = 29756.25m2 x RM1500/m2 = RM 44,634,375.00

The best method Most accurate Advantages:


Help architect in design process Easy to make variation/changes in the future Most accurate

Disadvantages:
Time consuming Plenty of data needed

Quantity need to be calculated grossly for each item Unit price is based on CURRENT RATES Need to allow some % for unmeasured items

EXCAVATION, HARDCORE, DPM & CONCRETE BED DESCRIPTION

UNIT QTY RATE AMOUNT (RM) (RM)

Excavation to reduce level 400mm and remove surplus, lay 200mm thick hardcore, DPM, and 200mm thick concrete (grade 30) Bed M2 7.50 1.75

13

51

663.00

13.13

Area A)

BUILD UP RATE 400mm thick excavation & disposal 200mm hardcore 200mm thick concrete (Grade 30) DPM TOTAL RATES

RM 5.00 7.00

36.00 3.00 51.00

BRICKWALL, PLASTERING & PAINTINGS DESCRIPTION

UNIT QTY RATE AMOUNT (RM) (RM)

Half brickwall in cement and sand (1:3) including plastering and two coats emulsion paints both side M2 18.50 3.00

56

72.45

4,057.20

55.50

Wall A)
BUILD UP RATE Half Brick wall / m2 = RM 28.00 Plastering Both Side/m2 = RM 12.00 x 2 Painting Both Side/m2 = RM 8.50 x 2 Allowance for stiffener @ 5% TOTAL RATES RM 28.00

24.00

17.00 69.00 3.45 72.45

SUMMARY ITEM A

DESCRIPTION

AMOUNT (RM) 663.00

Excavation, Hardcore, DPM, and concrete bed Half brickwall, painting plastering and

4,057.20 4,720.20 472.02 5,192.22

Sub-total Add Sundry items @ 10% TOTAL BUILDING ESTIMATE

METHOD
Unit

PHASE OF PROJECT
Preliminaries
Feasibility

KEY NOTES
Occupancy
To

UNIT
Cost/occupancy
Cost/student Cost/bed Cost/m3

Study

plan Project Ceiling


Usually

Volume

Brief

Proposal

used to calculate building services space


Widely

GFA

Brief

Proposal

used & very

Cost/m2

popular
Approximate Detail

Design

Widely

used & very

As M M2 M3

per items unit

Quantity

popular Used for complex project Time consuming

Estimation of a School Building:

Occupancy = 2000 students Unit price/occupancy = RM 2,500/students 2000 x RM 2,500 = RM5,000,000.00

Estimation of a School Building:


Volume of Building = Length x Width x Height = 20m x 10m x (1.00m+5.00m+5.00m+0.60m) = 2320m3 Unit price/m3 = RM 600/m3 2320m3 x RM 600/m3 RM 1,392,000.00
20.00
0.60

5.00

10.00
5.00

1.00

PLAN VIEW
SECTION VIEW

Estimation of a School Building:


GFA of Building = Length x Width Unit price/m2 = RM 2000/m2 Therefore, total estimate for a School Building is: = GFA (m2) x Unit price/GFA (m2) = 62500m2 x RM2000/m2 = RM 125,000,000 250.00

250.00

PLAN SECTION

In a group of 4 Write a detail report on: The Application of Information Technology in Estimation Topics to cover:
History/Origin Features of the software Advantages/Disadvantages Comparison between using Manual & Software Estimation in term of:
Time Quality Cost

SUBMIT THE REPORT ON THE NEXT CLASS (23RD APRIL 2012)

An agreement enforceable under law. The agreement legally binding between two parties or more, provided that certain conditions are observed (Contract Act, 1976) Types of contract:
Simple contract Special contract

A contract will exist when:


the parties involved reached an agreement legally recognized rights, responsibilities that arise from that agreement.

Constituted by an offer made by 1 party (offeror) and its acceptance by the other party (offeree) supported by consideration.
OFFER SUPPORTED BY CONSIDERATION

ACCEPTANCE

Back in 90s, most of the construction law is a simple contract Simple contract can be form by:
Written Verbal Action by parties involve (offer and acceptance)

Validity for 6 years

A document signed, stamping and given to all the parties involved Start widely used in the Government Sector Need to be in form of written Validity for 12 years
OFFER SUPPORTED BY CONSIDERATION

ACCEPTANCE

INTENT - Both parties wish to make the contract and ready to face the consequence if the contract breach FREE WILL All agreement & discussion is made on free will. There are no blackmail or treats involved CAPACITY Both parties involved is eligible & capable to be in a contract LEGAL all the contract need to follow common law SPECIFIC all information in the contract need to be specific. There is no room for ambiguity & unclear item

OFFER (OFFERER)
1.

ACCEPTANCE (OFFEREE)
1.

2.

3.

4.

5.

Must be firm, certain & communicated to the offeree Valid if described as an estimate (Crowshaw v Pritchard, 1899) Maybe withdrawn at any in before acceptance (Routledge v Grant 1828) Withdrawal of an offer takes place when notice received by offeree (Routledge v Grant 1828) Maybe made to specific person, group of people or even public (Carlill v Carbolic Smokeball Co., 1893)

2.

3.

4.

5.

6.

Must be unconditional and must be communicated to the offerer Must be made within a reasonable reason/time Manner of acceptance must correspond with the manner prescribed by the offer Cannot be withdraw without the consent of the offerer (Routledge v Grant 1828) If the offeree inserts new terms, then it is counter offer (destroy the original offer) (Davies & Co. Shopfitters Ltd v Wiliam Old, 1969) A request for further info doesnt count as counter offer (original offer remains)

Some right / interest / profit or benefit accruing to one party or some forbearance /detriment / loss / responsible given, suffered or undertaken by the other In forms of:
Thing/goods Service/performance of work Payment

Williams v Roffey Bros, 1990


CONTRACTOR SERVICE

Contractor ask quotation from supplier supplier give Quotation to contractor

Contractor ask quotation from supplier supplier give quotation to contractor Contractor amend some of the quotation and return back to the supplier

Offer by supplier to contractor

Davies Shopfitters v Wiliam Old, 1969

Counter offer by contractor to supplier

All contents in a contract describes rights and obligations of parties under the contract The court doesnt make the contract for the parties. The parties made for themselves. The court function is to interpret and apply the contract to the parties involved Two types of terms:
Express Implied

Contract sometimes have been reduced from pure sentences to any kind of forms. Anything that expressly stated & incorporated in the contract. Examples:
Appendix Drawings Schedules Specifications Bills of Quantity

Davis Contractors v Fareham, 1956

Not expressly stated (in writing or verbally) at the time the contract is made but are implied in law Examples:

The contractor will do the work in a workmanlike manner (with proper skill and care). He will proceed with reasonable diligence and complete within agreed time with good and proper materials The client will give possession of the site and will supply all necessary details within reasonable time. He will not obstruct the contractor works and will pay reasonable sum for the progress of works

Trollope & Colls v NWMRHB, 1973 Lynch v Thorne, 1956

A printed form of contract containing standards conditions Example:


PAM 2006 PWD 203, 203A, DB CIDB FIDIC

It can be amended in any way the parties choose Comprises of :


Articles of Agreement Condition of Contract Appendix

Advantages (Wright, 2004):


Well known & widely used Save time & effort in negotiating, drafting new conditions Can be tailored to match the project Mistakes maybe avoided

Disadvantages (Wright, 2004):


Designed for a standard situation Every contract is different We can make mistake over and over again

Sets out:
Names of the parties to the contract Location & scope work Express agreement by contractor & client Persons who carry out respective functions:
Architect Engineer Qs

Space for attestation (for signatures of parties & witnesses)

Sets out:
The normal performance required from each party Rules and procedures for conduction the contract Rules on dealing with problems or disputes arise Terms of payment to the contractor

Important to ensure there are no conflicts with others documents the contracts

It is a summary of facts of the contract:


Contract Period Completion Date Defect Liability Period Rates of The Liquidated Damages

OFFER

OFFER

COUNTER OFFER

ACCPTANCE

NO. 1
CONTRACT

NO. 2
ACCEPTANCE

CONTRACT

INVITATION TO TREAT

OFFER

NO. 3

ACCEPTANCE

CONTRACT

Some employer do get involved / some prefer to stay away If minimal involvement Traditional Contracting If greater involvement Construction Management

Designing & Managing a project is two different activities Employers may have various preferences:
Different Parties designing & managing Same parties designing & managing

Different Parties Traditional Contractual Same Parties Construction Management / Package Deal

Reasons of changing:
Change in user requirements, rethinks Revision / refinement of design due to incomplete information,discripencies, unclarities Changes due to external factors

Flexible in change Construction Management Inflexible in change Package Deal

Nature and extent of the remedies available to employer if breach happens who to blame?! Package Deal / Construction Management - Single point responsibility Traditional Contractual Varies point of responsibilities

Types of complexity:
Technical Functional Organizational Activities/Processes

Simple Moderately complex = Package Deal Mid range complexity = Traditional Contractual Complexity = Constructions Management

Being primary criteria influencing the procurement decision Fast = Construction Management Slow = Traditional Contractual

As a confirmation of total financial outlay/commitment required Why it is important to client:


His financial exposure Whether is budget met or exceeded:
Need to:
secure additional fund Cost cutting arises

The planning of financial disbursement (cashflow)

Late Confirmation = Construction Management Contractual Fast Confirmation = Traditional Contractual

The most oldest, familiar types of contract in industry The origin is from UK where:
the fast growth of professional consultant at that time A lots of bulk government project

The separation of design from building:


Employers have his own design team The contractor only builds/manufacture what the designers specified

Design = Employer/Professional Team responsibilities Construction = Contractor responsibilities

Where the design is totally complete before selecting contractor Where an independent project team will be used Where employer required certainty of price

The fastest growing method in the country Usually in lump sum basis Design & Build type:
Most Famous Contractor undertakes: Client:
Design Construction Financing Approvals

Turnkey type:
Financing Approvals Design Construction

Contractor undertakes everything:

Employer is getting the key at the end of the project

Where client wants a single responsibility party Where project is novel and complex. Where client want the price certainty (Lump Sum)

Originated in the west as the 1920s Enter Malaysia around 80s a form of contractual arrangement whereby a contractor is paid a fee to manage the project on behalf of client a contract to managerather than a contract to build The management contractor undertakes:
Planning / programming all stages / activities of project Contribute his expertise / experience on buildability to design process Coordination, time, costs and quality over works contractor

The works is packaged by the management contractor and sub it out to work contractor who actually undertake the actual works (construction)

In complex project involve high tech and need greater flexibility in design Where the project is too large Where employers to capitalize involvement of large number of sub con

In a group of 4

Write a detail report on: TYPES OF CONSTRUCTIONS CONTRACT (Traditional, Package Deal, Management)
Each group need to:
Conduct an interview & discussion with any company personnel / organization

Topics to cover:

Get a case study on the type of construction contract How they decide & what are the criteria they look into Why they used that type Advantages & Disadvantages Challenges, Solutions and Recommendations

SUBMIT THE REPORT (SOFT & HARD COPY) ON (30th JANUARY 2013)

TENDERING

Primary purpose of tendering:


To

select suitable contractor Obtain an offer from contractor

Contractor A (Offering)

Contractor B (Offering)

Contractor C
(Offering)

Client (Selecting & Accepting)

HANDOVER & MAINTENANCE CONSTRUCTION

TENDERING

DESIGN

INCEPTION & FEASIBILITY

PROCESS OF A PROJECT CYCLE

Main procedure by the Government & Private Known as an indiscriminate request for tenderers Invitation to treat is used to invite the tenderer Invitation can be:
To the world at large To contractors having the eligibility

Alternatives method to address the limitations of the open tendering procedure Only Limited number of contractors are prequalified / pre-selected are invited to submit their bids Usage this method:
Making tendering procedure more manageable Improve quality of the bids received Urgency of the works Specific reason

Also known Direct Nego Common method in the East, before open tender is practiced Widely spread as an aspects of human activity Fundamental elements:
No competition Final outcome through mutual consent / agreement

Disputes arises when one party makes a claim against the otherand the other party denies liability either expressly or by conduct

Root causes which generates disputes in construction:


Unrealistic time/cost/quality by client Uncontrollable external events Unrealistic tender price Inappropriate contract type Lack of professionalism of project participation Clients lack of information Internal disputes Inadequate contract documents Inaccurate design information Exaggerated claims

Dispute may be resolved by using:


Formal process
Courts/Litigation (judge) Arbitration (arbitrator)

Informal or consensual processes (Alternative Dispute Resolution)


Parties attempt to reach an agreement In sense of alternative (or complementary) to formal process
Negotiation Mediation Conciliation Neutral Evaluation Adjudication

Litigation

a process of resolving a legal dispute in court and heard in public Begins with a plaintiff issuing writ to defendant (lodging a written claim to court) Involve:
Oral argument Discovery documents or evidences Examination of witness & evidence

It is subject to any appeals Judgment can enforced against the defendant personally or his assets Decision based on:
Evidence presented Application of relevant legislation and precedent cases

Factors to choose litigation:


Substantial legal issues Proceedings are multi party Proceedings difficult to control Allegations of dishonesty One party refuses to acknowledge

Advantages:

A legally qualified judge The doctrine of judicial precedent will be applied by the judge A binding decision Judgments can be enforced through courts if necessary Theres an appeal system

Disadvantages:

Very public, expensive, time consuming and complicated Not suitable for technical issues Lawyers is necessary Parties have no control over the proceedings Could ruin business relations between parties Risk that a party may lose the case Limited international enforceability of judgments

where parties in dispute agree to settled by a neutral person, arbitrator (3rd party) and bound by that decision Provision of the Arbitration Act 2005 (Act 646) Each side will forward their agruementarbitrator need to find fact & apply the law & grant to both parties Can be agree on pre or once the disputes arise Arbitrator can be:
Chosen by contract parties Already being appointed during contract formation
Select arbitrator Choose venue, time of procedures

More flexible/less formal compare to litigation, parties free to:

Parties can be represented by lawyer or other person


Decision of arbitrator expressed as an award & will bind both parties. If necessary, it may be enforced by court. They will be no appeal from the decision Cost of arbitration (including the arbitrators fee)
Paid by parties in proportions they have agree OR Usually bear by the winner

Essential element of arbitration:

There are dispute between to parties They agree to refer to arbitration Parties must agree the decision is final & binding Subject matter of dispute is highly technical Whether insurance company is liable in full or apart Receiving a binding opinion is relevant Where parties wish to avoid negotiations Where a matter involves the quantification of dispute

Usage:

Differ with others ADR

Governed by Arbitration Act 2005 Arbitrator cannot be sued for negligence

Advantages

Privacy Convenience Speed Less formal Business relationship Expertise of the arbitrator Finality International recognition

Disadvantages

No collection of precedents Understanding the law Costs Point of law Enforcement 1 dispute per hearing No 3rd parties involvement

International arbitration needs 3 arbitrator Domestic arbitration needs only 1 arbitrator Appointing arbitrator:
Parties can agreed on one name Usually the president of professional institutions (PAM, IEM or RISM) will be appointed If fails, may request High Court for the appointments

Selection criteria:
Any qualifications specified by parties Independent and impartial For international arbitration, may consider arbitrator of a nationality other than those parties

Must act judicially


Have to:
Find facts Taking account only argument forward by parties Apply law & makes decision

Arbitrator can terminate the proceedings if parties fail:


to comply with arbitrator directions Participate in proceedings

Arbitrator is not liable for anything done unless acting in bad faith (dishonest, malice)

If parties not satisfied with arbitrator, can remove him.


Give notice to:
Other party Arbitrator

Apply to court

Ground for removing/replacing arbitrator:


Impartially bias Lack of qualifications Fails to perform the function

The decision of arbitrator is also known as the award.


The award can be:
Final Interim Partial

Usually arbitrator will deals with issues liability then the quantum of claim Award shall be in writing and delivered to each party after arbitrator sign it It must deal with all issues that were subject to the dispute Content of award:
Who is successful party Amount of damages that have been awarded

CLIENT

CONTRACTOR

PLANT

SUPPLIER

NSC

OVERHEAD

STAFF

It is clients main obligations to pay the contractor in consideration of the execution & completion of the works by contractor All payment need to be done according to conditions of contract

Adv. Payment
Interim Payment

Final Payment

Start Project

Completion Project

End of Project

The 1st payment by client to the contract BEFORE the work start Main Contractor entitled to receive either:
25% of builders work OR RM10,000,000 max

NSC entitled:

20% of builders OR RM5,000,000 max

Builders work = Contract Sum (PC Sum + Prov. Sum + Contingencies Sum)

Contract Sum LESS Prov. Sum PC Sum Contingencies TOTAL FOR BUILDER'S WORK Amount of Advance Payment = = Therefore =

(RM) 50,000,000.00

- 5,000,000.00 20,000.00 - 1,000,000.00 43,980,000.00 25% x 10,995,000.00 10,000,000.00


(RM) 2,000,000.00

43,980,000.00

Contract Sum LESS Prov. Sum PC Sum Contingencies TOTAL FOR BUILDER'S WORK Amount of Advance Payment = = Therefore =

500,000.00 20,000.00 - 1,000,000.00 480,000.00 25% x 120,000.00 120,000.00 480,000.00

Contractor submits:-

- Performance security
- Guarantee for advance payment - Insurance polices - Signed letter of acceptance Certification by client (within 30 days)

Payment by client to contractor

It will be recoup in interim payment Recoupment starts when value of Builders Works reaches 25% When reaches 75%, full recoupment will be made.

Formula to calculating the advance payment recoupment $D = 200% x $A $B percent of $P

Where;

$D $A $B $P

= = = =

cumulative deduction to be made in Interim Payment certificate total amount of advance paid, total contract value of builder's work gross certified value of builder's work executed (including amount certified for materials on site) or agreed cumulative scheduled payments in excess of 25% of $B = = RM RM - RM RM RM + RM 10,000,000.00 483,077,120.00 (Overall Contract Amount) 109,340,000.00 (Provisional Sums) 373,737,120.00 183,898,934.12 (Builder's Works) 4,427,486.37 (MOS) 188,326,420.49 373,737,120.00 93,434,280.00 94,892,140.49

$A $B

; Amount for Advace Payment ; Total Contract value of builder's works

$P(a)

; Gross cerified value of Builder's Works + MOS (To refer claim summary) ; Excess of 25% of $B

$P(b)

25% x = =

$P

; $P(a) - $P(b)

Therefore; $D

= 200%

x RM RM

10,000,000.00 373,737,120.00 94,892,140.49

RM

94,892,140.49

$D $D

= 5.35% x RM = RM

5,076,729.52

The contractor entitled to interim payment at regular interval with a proper evaluation Payment will done based on:
Work done Material on site

Interim Payment

Start Project

Completion Project

End of Project

CONCTRACTOR SUBMIT CLAIM

VALUATION PREPARED BY CLIENT

< 14 days
CERTIFICATION BY CLIENT

< 30 days
PAYMENT MADE

Even if the contractor doesnt make any claims that month, client still need to make a valuation
It is a good practice to set a specific date on each month to do the valuation All claims need to be in proper & agreed formats

Wrong estimate/calculation by contractor will not be cancel


Contractor should include everything he thinks is entitled to be paid Client can reject the claims due to insufficient info and ask to resubmit

The evaluation need to be carried out once a month to evaluate:


Progress work done Material on site

For Government project, the value of progress work done+material on site need to exceed RM1,000, then only payment can be made
Method of payments:
Lump Sum Percentage work done Pro-rate

LUMP SUM Contract Period Total Value Plaster & Paint (RM) LUMP SUM PAYMENT (RM)
PERCENTAGE WORK DONE Contract Period Total Value Plaster & Paint

24 month 10,000.00 10,000.00


24 month 10,000.00 % WORK DONE 20% 10% 50% 20% 100%

PRORATE Contract Period Total Value Plaster & Paint PRORATE PAYMENT FOR 24 MONTH

24 month 10,000.00 416.67 /month

(RM) 2,000.00 1,000.00 5,000.00 2,000.00 10,000.00

Payment No. 1 Payment No. 2 Payment No. 3 Payment No. 4 TOTAL

Contractor entitled to payment for all unfixed material delivered to site but not yet incorporated in the work Material on site must not be removed without consent of client. Contractor is responsible for the safety etc Prerequisite for payment:
Material delivered to site Material will be used in the permanent works (accordance to contract) Not prematurely brought to site Adequately protected, stored against theft, whether or other casualties Contractor have paid everything to supply (contractor need to produce a prove)

Contractor will be paid 90% of the material value.

Usually call final account The last payment:


From client to contractor From contractor to client

It will shows the final total cost of the completed job to client. This final total cost = original contract sum + adjustment for variation works + provisional quantites + other adjustments made Usually the amount is not much cause all payment have been made through interim payment This will allows client to make final correction/adjustment made through the interim payment (if necessary)

CONCTRACTOR SUBMIT CLAIM

CLAIM CHECKED BY CLIENT

FINAL CERTIFICATION BY CLIENT

< 30 days
PAYMENT MADE

As a evident that the works have been properly carried out and completed All responsibilities of the works being transferred to client As a evident all adjustment in term of monetary have been made.

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