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Essay, 12 pages (3000 words)

Futuristic touch to the development construction essay

INTRODUCTION

Taipan Eagle Sdn. Bhd. is a very big company. It is a subsidiary of New World Development Company Limited and Luen Yum Development (M) Sdn. Bhd. For more than 4 decades, the Group has expanded its business from a single focus on property business to four main areas including big properties, services, infrastructure, and department stores in Hong Kong, China and also Macau. Lately, the group, Taipan Eagle Sdn. Bhd has proposed to build 92 units of Semi-detached Houses to AARGROUP Sdn. Bhd as the consultant. Consultant in AARGROUP Sdn. Bhd consist of Engineers such as; Mechanical Engineer, Electrical Engineer; Architects, Lawyers, Interior Designer, Landscape Architect, and most importantly Contractor. Each of the consultants has their own role in making this project success. I as the Architect should advise the Client on the feasibility of proposals and approximate costs and investigate the proposed site, or advise on possible site locations. Prepare sketches and models to illustrate ideas and also produce detailed drawings and material specifications for the quantity surveyor and local authority. Landscape Architect should assist architect on landscape design and do landscaping design drawings. Function of Engineers are advise the designer of the most efficient, economical and practical method of providing their specialist service and prepare detailed drawings within the architect’s design. Besides that, Engineers should prepare design calculation and material specifications. During construction, the engineer checks the quality of workmanship and correct use of materials within their scope of design. Quantity Surveyor also part of the consultation stage. Surveyor should advise the architect on costs and financial viability of certain construction techniques and materials during pre-contract stage. Surveyor also must prepare approximate cost from architect’s initial design brief and sketches and check contractor’s priced bill of quantities and advice client and architect of errors and accuracy of estimates. If there are any additional costs, surveyors should advice the client and architects and calculate and prepares the budget for construction. Last but not least, check tender proposal by contractorThe project is located in Plentong, Johor Bahru. The project began in December 2012 and is expected to be completely finished in 2014. The house must consist of 5+1 and 7 bedroom homes. The group also wants a huge clubhouse that consists of a swimming pool, gymnasium, playground, and a function hall for public usage. The Taipan Eagle Sdn. Bhd has proposed some requirements for us to build the Semi-detached houses. The requirements are stated below:

Futuristic touch to the development

When it comes to futuristic, we can talk about modern, high technologies or related to designs. The group wants the development to be more moderns and highly designs so that investors can invest a lot and can attract people to buy the houses. Built with quality and distinction in mind, the homes are a testament to Malaysia’s top-of-the-class offerings in the real estate industry.[1]The residences boast of Roca, American Standard and Niro Granite tiles, world-class teak wood flooring, high ceilings and luxurious suite bathrooms in all the bedrooms. As I mentioned above, the development also features a very large clubhouse. Surrounding the clubhouse comprises a swimming pool for everyone to enjoy and spend their time with friends and family together. For those who want concern about their health, a gymnasium is provided with highly technology equipment in the gym. Playground for kids also will be constructed surround the clubhouse. For anyone who want to make events such as wedding ceremony, birthday celebration, function hall is also provided for public usage and also for a wholesome living experience.

Boasts top-notch features, fittings and design layouts that breathe the best millennium developments.

Best features and fittings will be installed at the housing development such as lighting aspects and ventilation. Lighting will be installed along the pedestrian walk for the public to walk on. Not only along the pedestrian walk, should house also install lighting for the people to see during night hours. Besides that, ventilation in house is really important for the people to breath in the house. Ventilation should be installed especially in the toilet and kitchen. All the smell can be pass out through the ventilation. Next is the fire protection in the house. Fire Protection such as sprinkle should be install in the house especially in the kitchen, where lots of cooking be done there.

Security

In housing area, security plays really important role for the resident’s safety. Therefore, the Group has proposed to install CCTV surrounding the development. This is to ensure the safety of residents living in the housing area.[2]With the rising concern for security, the Group also offers dwellers peace of mind with a comprehensive security framework that includes perimeter walls fitted with high-definition infrared CCTV equipment surrounding the development, trained security personnel, armed guards and canine patrol. Trained security personnel are to guard the entrance of the housing area from public that do not live in the area. Canine Patrol is to patrol the housing area to ensure that the residents are living peacefully.

TENDERING

3Tendering is the process of making an offer, bid or proposal, or expressing interest in response to an invitation or request for tender. Organizations will find other businesses to respond to a particular need, such as the supply of services and goods, and will select a tender or offer that meets their needs and provides the best value for money. In my opinion, tendering is a process or method used to obtain offers leading to a contract between the client and the consultant. What is the function of tendering? ̶ firstly, is to select suitable contractor for the project. Choosing a contractor for the project is really important because it will determine when is the project will end, how the project will flow, and much more. Content of the Tender and the way you have prepared the tender is the important factor in determining in the winning tender. 4Once your company gets the tender documentation, it must take some time to plan out an effective tender strategy. The important function of the tender is to attract the attention of the company that is proposing this project. Your tender should explain what you will be doing for the amount that you have proposed. This is the important factor that will be taken into account while approving a tender.

METHOD AND PROCESS OF TENDERING

Method and process of tendering is important because of it will choose the best contractor and the most efficiency contractor. Besides it will determine the flow of the project will run well throughout the time duration. There are three types of tendering used in construction industry, that is, Open tender, Selective tender and Negotiate tender.

OPEN TENDER

Open tender is an arrangement where an advertisement in local newspapers and trade journals invites the entire contractor outside to apply for tender documentation. Open tender are also known as Open Competitive bidding, Open Competition, or also Open Solicitation. Not only professional’s contractor and apply the tender documentation but also amateur contractor can bid for the tender. 5A deposit is usually required to ensure that only serious offers are made; presumably it is needed to cover the cost of copying the documents. Local authorities have been advised against open tendering because it often leads to excessive tender lists where the cost of abortive tendering is considerable. There are instances of selection criteria being applied after the tender has been submitted, so a bid could be rejected if a contractor does not belong to an approved trade association. Below is the picture 1. 11 of the Open Tender Notice. Picture 1. 11 Above is the picture of the Open Tender Notice.

Advantages and Disadvantages of Open Tender

Advantages

Firstly, it gives high level of competition to all contractors to apply the tender to give best prices as compare to other methods. To amateur contractors, this is the chance to win the tender and to boast the contractor’s experience. Secondly, it also provides fairness to all contractor including contractors that are new to construction industry to join the project proposed by the Group. This is the chance that new contractors to step out and shine in the project. Thirdly, open tender do not allow favoritism. As I said earlier, I only provide fairness in this open tender.[6]There is no list of restrictive tenderer, which does not allow favoritism. Fourthly, it is very transparent process which ensures that only the contractor with the best price and meeting all the technical requirements will win the tender. This process is usually manage by procurement board where its staff are trained for such exercises and board ensure that all the procedures involved in tender are followed.

Disadvantages

Open tender also has disadvantages. Firstly, since it is call ” Open” Tender, it is open to public and it is in the newspaper and journals, all contractors from different company and different skills can apply to the tender. Wrong contractor can be chosen because of the public advertising. If the group chose the wrong contractor it may result bad factors such as time frame of the project. That is the second disadvantage of open tender. Since the client chose the wrong contractor, the time frame of the project can change because of the management of the contractor itself. The building may be finished late due to the contractor.[7]Thirdly, the low price usually detriment of quality and often result in the client obtaining poor quality job and late completion of work. Fourthly, given that its open tender and thus there are no restrictions on the number of contractor who can bid and become bulky and lengthy job for tender analyses which often result in delays and high cost.

SELECTIVE TENDER

8Selective tender mainly used by client in private sector to invite contractors to submit their bids for specific project. The client short listed the contractor and asks them to bid for the project. It is also known as the Pre-qualified Tendering and Restricted Tendering. Selective tender has two types that are One/Single Stage Process and Two-Stage Process. A list of potential tenderers for possible pre-qualification is established by the methods. Firstly, employer generate list based on previous dealings. Secondly, the professional team generates their own list and recommend to the employer. Finally, the employer advertises for suitable tenderers to be short listed for the pre-qualification exercise. Two-stage tendering is a method of tendering which involves, firstly, through a competitive exercise based on outline pricing and quality identification of a preferred contracting organization. The second stage includes negotiation and working with the preferred contractor in order to arrive at a final price for the scheme.

The Process of Stage 1 – Selection of suitable contractor

Establishment of a list of eligible contractors – Create a list for contractor that is qualified to become contractors for the specific project based on the criteria. Conduct a series of interviews with potential contractors to select short-list tenderers – After the establishment of a list, conduct interviews to double confirm and give satisfaction to the client and consultant so that the project will be carried out smoothly. Each short-listed tenderer is issued a bid or tender document. – Thirdly, after interview the entire listed contractor and short-listed too, the contractor is issued a bid or tender documentation. Completed and returned documents must be received, opened and evaluated in accordance with the employer’s approved procedures. Documents that are completed are supposed to return it, opened and evaluated according to the procedures that are approved by the employer.

The Process of Stage 2 – Determination of contract price.

The selected contractor starts contributing to the pre-contract process in his capacity as an unbiased but independent construction expert. Firstly, contribution as a technical advisor to the design process-contributes specialist expertise such as more innovative, production friendly and cost effective design. Cost effective design means, the cost depends on the design. The detailed the design, the high the cost. But cost effective design is to reduce the cost of the design, in terms of materials such as eco-friendliness materials. Secondly, Practical skills and build ability such as time, quality & cost. Time means the duration of the project finished. Quality means the quality of the project when it is done after the time frame estimated and Cost means the cost of the project required. Thirdly, Minimization of project delays and identifies long lead items and critical activities. In every project, delays can happen because of shortage of materials or in efficient contractor. So, consultant should minimize the delays and identify the problems and try to solve it. Teamwork is important in the consultant firm.

Benefits of Two-Stage Tendering

Two-stage tendering brings together the design team and main construction contractors to develop the scheme from the initial design. The partnership aims to result in finished schemes that offer the best overall value in terms of design, and should result benefits that are more accurate cost information or project cost certainty and more accurate programmer information and project timescales. It also can reduce tendering time for second part. Team working also can be form like joint approach allows designers, constructors and specialist suppliers to work together in an integrated team leading to joint approach to problem-solving and non-adversarial relationship. Next, co-ordination in build ability, health and safety management can be born also.

NEGOTIATE TENDERING

The contractor is selected and the contract price agreed upon not through competition but on the basis of negotiations between the parties. The contract is not put out to tender but the extent of the works and contract price are established by mutual agreement through protracted discussions or negotiations. Usually refers only to the main contractor’s own work as sub-contract work is often awarded through competition. Only one contractor is approached and the most important criteria for the one contractor are skills. With skills, the contractor is valuable and the management will carried out well. The architect and other team members of the design team wish to take advantage of the contractor’s specialist knowledge at the design stage. Following the completion of the design, the contractor will priced the Bill of Quantities, then enter into tender price negotiation with QS.

BASED ON MY CASED STUDY

9Under this method normally one contractor is approached and such tender mainly used for specialist work such as lift system or airport project at big level, in such case there are limited number of contractor who do such work in the market. It is based on one-to-one discussion with contractors to negotiate the terms of contract. Normally, negotiated tendering is used in big projects because they need a very good contractor. For this type of tendering, contractor is evaluating based on skills and management. On my cased study, the requirements proposed by the Taipan Eagle Sdn. Bhd are really big scope. The development features a large clubhouse that consists of a swimming pool, gymnasium, playground and a function hall for the public used. For houses, it consists of 5+1 and 7 bedroom homes. So, contractor that has skills and good in management is really needed for this project. The objectives of Negotiated Tendering are as below: The establishment of the extent of the scope of contract to be let. The determination of the contract price. Negotiation process can be done at early stage and can be revisited in later stages.

Contractor Criteria

Contractor selection must be approached with care. It is not something to do casually. It can be said that since contractors are not as familiar with the industry as potential employees, selecting them needs even greater attention. Before work starts, spell out the conditions your contractor has to meet and select one best equipped to meet them. Health, safety and environment are three of these conditions. Identify health, safety and environmental procedures associated with the job and include them in the contractor’s specification. When bids are received, check them against the specification to make sure that proper provision has been made for controlling risks. Below are the criteria needed by the group and consultant:-AvailabilityAvailability of the contractor at the construction site is really important. Contractor should be at the site all time to check the workers and also if there is any injuries or incidents happen at the site. Besides that, contractor also should ensure the smoothness of the project. If any injuries or incident happen, contractor is to be blame. ReliabilityThe client should choose the contractor that can rely on. Contractor should not send representative to check the construction site whether it is in a good condition or not. That is a contractor that cannot rely on. The contractor should go to the site him/herself to ensure everything is going well. CostCost also plays an important role in these contractor criteria. Some contractor is at high price, but it does not fulfill the criteria of the client. But Lower price contractor are more professional and have all the criteria wanted by the client and also consultant. Time ManagementSince it is a very big project, management plays a very large role. Contractor should good in dividing the time to construct the clubhouse and the houses. As I said earlier, clubhouse consists of swimming pool, gymnasium and etc. If the contractor doesn’t know how to manage the timing, most probably the project will be finished late and delayed. To make the contractor works easier, teamwork is really important between the client, consultant and also contractor.

METHOD AND PROCESS

Identify a suitable contractor by the employer to negotiate with. Pick a contractor that has skills and good in management so that the project will become a successful project. For this project, a very skillful contractor is required because the development is a big development. Contractor apprised of work scope. After select the contractor, the contractor will be briefed about the project in detailed. In this case, the contractor will be briefed about the large development that consists of a larger clubhouse and the houses. Not only that, they also will be briefed about the requirements that proposed by the group. Contractor submit offer. After the briefing about the project, contractor will submit the offer, which means the contractor is agreed to work with the consultant and client. Parties undertake negotiations. After submitting the offer, negotiations between the contractor, consultant and client occur. They negotiate about the pricing and others that related to the development. Agreement occurs. After the negotiation process, agreement should be made. Agreement between the contractor, consultant and the client is really important. The contractor agrees to the negotiation result and agreed to work with in this project. Parties formalize the agreement. After all the process above are done, last step is to formalize the agreement so that people that related to the project will know what’s happening and what are the requirements needed in this project.

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