CC202 – CONTRACT PROCEDURE

CHAPTER 1
THE CONSTRUCTION INDUSTRY IN GENERAL

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

Generally :

Construction industry is one of the important element to stabilize our country. It’s
also act as business course that involving building works, civil works, mechanics, water,
electricity, quary, development of land & forest and many more. The main objective is
to get investment/investment profits to the nearest maximum. To ensure
construction projects run smoothly, a well-organised management including
tender/contract document preparations should be done from early stages to the end.

Definition :

Industry that involving construction of civil & building works

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

Types of works in construction industry :

Buiding
Civil work
(basic/common work) •Houses
•Offices
* Roads •Hotel&resort
* Jetty&bridge •Hopital
* Tunnel •School/learning institute
* Sewerage •mosque

Civil work
(heavy/complex work)

* Oil rig
* riverdam
* airport
* highway

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

Designer member :

1. Project Developer/owner
* Intent to build a construction project
* appoint consultants & contractor

2. Architect
* prepare early&detailed dwgs based on owner/project developer budget
* give advice & suggestion(s) to owner/project developer

3. Engineer (civil/structure/electrical/machinery)
*same roles as architect which is based on their own expertise

4. Quantity surveyor
* act as cost adviser(although detailed dwgs not prepared yet)
* estimate cost(roughly) for owner/project developer reference
* cost planner to analysed each element in construction/building works and
made comparison of total cost
* preparing tender documents

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

Builder member :

1. Contractor

* build&complete construction works based on contract document

* responsible for works done at site
* completed construction/building project on time & in great shape based on
contract document
* observed local authorities regulations
* prepare insurance’s policy for works & workers

2. Architect
* observed project’s during construction
* act asa a leader among consultant
* always interacts/communicate with contractor

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

Builder member :

3. Engineer (civil/structure/electrical/machinery)

* observed project’s during construction

* main adviser based on their own expertise at site

4. Quantity surveyor

* analysed wprks at site for interim payment

* preparing final account
* make sure contractor repair/rebuild damages completed project during defects
liability period

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

Contractor firm organization generally

management

top
based on
contractor
observation / technical firm power &
policy
middle

workers

lower

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

Manager/
owner

Administration Technical

General Financial Purchase Project

Size or types of contractor firm’s organization whether big, medium or small usually based on firm or projects
that will be held but basically organised as state above

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

The importance of Contractor Firm Organization Chart

• Construction projects run smoothly

• Everybody know their roles & duties
• To ensure a well-organised firm/money well spend

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (CIDB)

• To promote and stimulate the development, improvement and expansion of the

construction industry;
• To advise and make recommendations to the Federal Government and the State
Governments on matters affecting or connected with the construction industry;
• To promote, stimulate and undertake research into any matter related to the
construction industry;
• To provide consultancy and advisory services with respect to the construction
industry;
• To promote quality assurance in the construction industry;

CIDB REGISTRATION

Official website : http://www.cidb.gov.my/v6/

prepared by : SMH
 CONSTRUCTION INDUSTRY IN GENERAL

PUSAT KHIDMAT KONTRAKTOR (PKK) @ CONTRACTOR SERVICE CENTRE

PKK FUNCTIONS

i. Registration center for all contractors working on federal or state level.

ii. Giving recognition to qualified.Bumiputera contractors
iii. As a referers to contractor
iv. To provide advice and assistance to Bumiputera contractors.

Official website : http://pkk.kkr.gov.my/home

prepared by : SMH
 REGISTRATION PROCEDURE(CONTRACTOR)@PKK

registered (business) Pejabat Pendaftaran Perniagaan

minimum capital

technical qualification (certificate / diploma / degree)

work experience or employment record company

credit facilities, supply of materials and machinery

letter of support from supervisors and project from the main contractor

equipment and machinery

technical staff and management.

Applicants who have the conditions (qualified) may apply and be interviewed on the PKK.

REGISTRATION PROCEDURE-CIVIL/BUILDING WORKS

REGISTRATION PROCEDURE-ELECTRICAL WORKS

TECHNICAL QUALIFICATION-HEAD/SUB-HEAD

prepared by : SMH