INTERIOR DESIGNER INTERIOR ARCHITECTS INTERIOR SPACE PLANNER INTERIOR DECORATOR

BUILDING INDUSTRY

ARCHITECTS CIVIL AND STRUCTURAL ENGINEER MECHANICAL & ELECTRICAL

ENGINEER QUANTITY SURVEYOR

LAND SURVEYOR LANDSCAPE ARCHITECT INTERIOR DESIGNER

PROJECT MANAGEMENT

CONTRACT

GENERAL CONTRACT OFFER

ACCEPT

AWARD OF CONTRACTS

client
conditions conditions

contractor
conditions

THE PROCESS :

TENDER
Drawings MUST be in order; including Architectural drawings Mechanical & Electrical drawings Civil & Structural drawings Landscape drawings Interior design drawing others

THE PROCESS :

TENDER Quantity surveyor input.

 Determine Bills of Quantities Type of Contract/Tender Content in TENDER Documents ALL consultants input esp detail drawings Appendix in TENDER Document Period of Tender invitation, closing time/location Invitation List Open OR Close tender Tender Documentation charges, etc

 Tender evaluation Tender report Tender recommendation Tender negotiation Tender AWARD

THE PROCESS :

post TENDER

BEFORE CONTRACT DOCUMENTS ARE ISSUED

Letter of Intend issued to Contractor by S.O. Content : stating confirmation of Contract Sum + Contract Period - request Contractor to submit Performance Bond Insurances organization chart work programme

BEFORE CONTRACT DOCUMENTS ARE ISSUED

Contractor shall acknowledge Acceptance by endorsing the Letter of Intend

S.O. shall proceed to the following : a. prepare formal Contract for endorsement by Employer and Contractor.
b. to conduct the first SITE meeting c. issue Construction drawings together with other Consultants input.

CONTRACT DOCUMENTS A Building contract is usually composed of: 1. a set of drawings, a bill of quantities in the case of larger works (or a specification for the smaller) and articles of agreement with detailed conditions of contract. All these documents read together form the contract.

2.

The drawings will consist of plans, section, elevations, with such details (the more the better) as can be made available.
bills of quantities is, in effect, a detailed and priced pro forma invoice for the building, provided in advance and setting out all its parts individually priced, so that omissions or additions, if decided on, can be made at fixed rates. articles of agreement and conditions of contract is as per attached.

3.

4.

CONTRACTUAL OBLIGATIONS
Two parties in a Contract; Both parties have to comply with the Conditions of Contract; Each party has his own obligations/duty under the Contract.

2 BASIC TYPES OF CONTRACT POPULAR IN MALAYSIA

PAM BUILDING CONTRACT

CONVENTIONAL CONTRACT
1ST PARTY : THE CLIENT
Architect Project Manager Civil & Structural Engineer Mechanical & Electrical engineer Quantity Surveyor Land Surveyor Interior Designer

2ND PARTY : CONTRACTOR

Main contractor Nominated sub-Contractors Nominates Suppliers Specialist etc . . . .

DESIGN & BUILD CONTRACT

1ST PARTY : THE CLIENT 2ND PARTY : CONTRACTOR
Architect Civil & Struct. Engineer Mechanical & Electrical engineer Quantity Surveyor Land Surveyor Interior Designer Main contractor Nominated sub-Contractors Nominates Suppliers Specialist etc . . . .

The operations and characteristics of the conventional contract can be outlined as follows:

Client appoints Architect for professional expertise; Architect established project brief; Architect usually recommends a list of other relevant Consultant; Design is being produced to meet Clients brief; Architect co-ordinate with other consultants through conducting design meetings; Design is submitted for local Authorities approval; Tender; Upon award and the commencement of works, Architect chairs regular meeting and supervises works;

The operations and characteristics of the conventional contract can be outlined as follows:

Architect issues interim certificate of payment (valuation by QS) Contractor is legally obligated to Client;
Contractor is usually obligated to comply with Architects Instruction; Contractor is responsible for the construction works and co-ordination of the nominated and domestic sub-contractors;

POSSIBLE ADVANTAGES
Better control of works

Better aesthetic value of the works; No pressure on the design team to develop the design; Contractual requirements well understood;
Allows variation of the works; More power vested on the Architect; Widely known and practiced;

POSSIBLE DISADVANTAGES
May have lengthy design period; Slow communication channel; Restricted power of the Client on site;

IMPORTANT NOTES
Contract Sum Date of Possession and Date of Completion (Contract Period) Liquidated & Ascertained Damages

Period of Interim Certificate and Honoring of Certificate Retention Sum

Period of final Measurement

PROJECT MANAGEMENT

AGENDA FOR THE 1ST SITE MEETING

Job : PROPOSED INTERIOR FITOUT FOR RETAIL OUTLET AT UNIT 3-5, 1ST FLOOR, ALPHA SHOPPING CENTRE
1 APRIL 2005 SITE

Date and Venue of Meeting :

Programme of Work

a. Sequence of work and phasing b. Variations to Scope of Contract c. Contract Period d. Programme e. Progress Photos f. Issuance of Drawings
:....

Site Organisation

Confirmation of Materials
PC & Provisional Sums Consultants Input

:....
:.... :....

Employers Input
Other Matters Next Meeting

:....
:.... :....

PROGRESS PAYMENT
1. PROGRESS CLAIM
Periodic - refer to Appendix of contract CONTRACTOR CLIENT

Architect with the assistance of QS verify, certifies Certificate of Payment submitted by contractor. site valuation by SO/quantity Surveyor - sometimes assisted by C.O.W. works and materials delivered on site (with supporting documents) but NOT installed. total value of material normally recommended 75.00% of value delivered.

Certificate of Payment ;

Contractor submits certificate to Architect

Architect has evaluate within a reasonable period normally 2 weeks

Certificate of Payment sent to Client

Client to honor within the stipulated date under appendix in Contract

The Certified amount is an architects professional jurisdiction, the Client has the obligation to honor the certificate within the Period stipulates.
4. Certificate not valid if fraud proofed dishonesty impartiality

5. Persistent delay in payment by client can lead to implications in contract. The contract may determine the contract for non-payment.

SEQUENCE OF WORKS
Factors that affects the progress on Site :

management and co-ordination on site; man-power workers. project managers, etc; equipment plants and machinery; materials; unforeseen circumstances; weather inclination, delays by consultants providing information/confirmation, etc Contractors Cash-flow disrupted; non-payment.

DOCUMENT CONTROL is essential to protect of both the client and contractor organization. Both should maintain a single point of contract for all documents passing between the two organization, and they should log all documents in and out. There must be a complete record of all documents.

VARIATIONS AND INSTRUCTIONS

During the course of executing the work of a contract, either the client or contractor may decide that a matter requires clarifying, or a change in work is necessary. This additional work may arise from:

changes in the specification, design or required functionality

errors made in the design or work executed so far

quality problem

Not all lead to variation in the contract. Variations or instructions will usually arise from some changes to the specification or design of the facility in order to meet the required or revised functionality, or to meet their quality, safety or environmental standards. There are three essential steps in the issuing of variation orders or instructions:

They must be issued in writing, by an appropriate authority; The contractor must acknowledge their receipt; The cost of the additional work must be agreed.
Variations or instructions should not be action by the contractor if they are issued:
orally; by the incorrect authority within the clients organization; by the managing contractor without authority.

COMPLETION AND FINAL ACCOUNT

Completion can take place in several stages: 1. 2. 3. 4. Practical Completion Sectional completion Defects and Making good The Final Account