FLIPBOOK_4A_BQS559_ASSG1_RAHIM,HAZIQ,AFIF,AFIF HAFIZI

TENDERING PROCEDURES 48

DURING COVID - 19

OPEN TENDER

TENDER ADVERTISEMENT
• Advertise in local daily newspaper and online in Malay language.
• International tenders will be advertised in Malay and English language.

SITE MEETING & SITE VISIT

• All tenderers who interested to buy the tender must attend site meeting (project
briefing) and site visit.

• The attendance will be one of conditions to buy the tender document.

SALE OF TENDER DOCUMENT
• Only contractors fulfilling the local registration and tender requirement can

purchase tender document.

CLOSING & OPENING OF TENDERS
• Tenderers must submit tender on time as date and time stated in tender

advertisement. including required document such as technical and financial
proposals.
• Late submission will consider disqualified.
• Opening tender will be done on same day by 2 officer.

EVALUATION OF TENDERS & TENDER REPORTS
• Tenders Evaluation committees will evaluate all tenders based on the criteria set in the

tender document.
• Done by two committees, Technical Evaluation and Financial Evaluation Committee.

LETTER OF AWARD

• A Letter of award will be issue to successful contractor after tender
report has done.

TENDERING PROCEDURES 49

DURING COVID - 19

E - TENDERING

There have been some adjustments to the tender submission
process. Abdullah, (2021), mentioned that because of tender
documents are sensitive and personal information, no online
submission is permitted for government projects. As a result,
associated government agencies are encouraged to postpone
the deadline for submitting paperwork until the government
makes a statement about the economic sector's opening.
Tenderers are, nevertheless, permitted to deliver tender
materials through courier. If the tender document is sent by
courier, the Tenderer must guarantee that it arrives securely at
the given location by the final submission deadline at 12 p.m.
Late submissions will not be considered. However, the purchase
of tender can be made online where contractor who are
interested into project can make payment using online platform
and document will be published in Jcloud online system creted
by JKR to contractor who made payment.

Abdullah, (2021), said that the pandemic crisis has had a
negative influence on the project tendering process. In the case
of government projects, the tender's validity period can be
extended in certain circumstances, such as government-
imposed movement control orders that prevent the committee
responsible for opening the tender box and conducting the
tender evaluation process from holding a physical meeting.
After getting the consent of the Head of Department, the
Tender Validity Period might be extended for up to 60 days if
necessary. The extension can be approved via any quick
communication means, such as email.

TENDERING PROCEDURES 50

DURING COVID - 19

E - TENDERING

Figure 13: Order Letter from Director-General of Public Works Bil. 8/2021

FORM OF CONTRACT 51

COMPARISON

BEFORE COVID - 19 DIFFERENCES DURING COVID - 19

EOT forms should be Extension The clause parts of the form
established causes of delay of for claiming EOT are left
based on contract blank, and the contractor just
provisions, such as force Time needs to indicate the cause
majeure under clause 58 as "Movement Control Order
and suspensions of work in compliance with
under clause 50. government laws."

Even if there is no Loss Under Clause 43.1(c), Clause
additional delay, the and 44.1, and Clause 50, when
contractor may not be Expenses the Architect gives a written
entitled to loss and directive to suspend the
expenses under clause 44.0, works for a continuous time,
and the contractor may not the Contractor can bring a
be entitled to loss and claim for loss and expenses
expenses even if he obtains related to the Covid-19
the EOT. outbreak and MCO.

When the project has made When the project has made
25% progress, the 50 percent progress, the
government will make a recoupment of the Advanced
recoupment on the Payment begins.
Advanced Payment through
an interim payment.

FORM OF CONTRACT 52

BEFORE & DURING COVID - 19

PWD 203A REV. 1/2010

The form of contract use for case study project was PWD 203A
(Rev. 1/2010) which bills of quantities is part of contract. PWD
203A (Rev. 1/2010) is common form of contract used in public
sector. In any type of contract, there will be a term where the
contractor is obligated to perform his works completely. In PWD
203A (Rev. 1/2010), it is under clause 10.0, where it discussed the
contractor’s obligations to construct the work and complete it
according to its specifications, contract drawings, and any other
documents included in the contract documents.

For the projects that are constructed during the pandemic Covid-
19, the contractor shall still complete the construction works.
However, Malaysia has implemented Movement Restriction Order
(MCO) to reduce the risks of this virus from spreading and the
construction sectors are affected badly as in the early first MCO
they were not allowed to operate their works on the construction
sites. Even after the government announced that the construction
sectors can proceed with their works during a pandemic and
during MCO 2.0 and MCO 3.0, however, there are only 30% of
labors are allowed to be on the construction site. Due to these
issues, the contractor may be not able to complete his works
within the agreed time.

According to the interview, in order to fix this issue, the contractor
is entitled to request an Extension of Time from the client,
allowing the construction duration to be extended to a new
completion date for reasons stipulated in the contract. Because
the Covid-19 epidemic is an unpredictable situation, both parties
accept the risk of not being able to complete the task on time as a
default.

FORM OF CONTRACT 53

BEFORE & DURING COVID - 19

PWD 203A REV. 1/2010

When demanding an extension of time, Clause 43.1 of PWD Form 203A (Rev. 2010)
states that the Contractor must send written notification to the S.O. on the grounds of
delay and pertinent facts with supporting documents. Normally, documented causes
of delay based on terms in the contract agreements, such as force majeure under
clause 58, suspensions of works under clause 50, and so on, should be included in the
EOT form. When claiming EOT due to MCO, however, the clause sections of the form
for claiming EOT are left blank, and the contractor just has to declare the reason for
"Movement Control Order in compliance with government laws."

Figure 14: Circular Letter from Director-General of Public Works on 22 June 2020

FORM OF CONTRACT 54

BEFORE & DURING COVID - 19

PWD 203A REV. 1/2010

Figure 15: Circular Letter from Director-General of Public Works on 22 June 2020

FORM OF CONTRACT 55

BEFORE & DURING COVID - 19

PWD 203A REV. 1/2010

In the standard PWD Form of contract, clause 77.0, there are
provisions for Epidemic and Medical Attendance. The contractor is
required to keep the site clean and hygienic and to comply with
the standards of the Government Health and Safety Authorities
under clause 77.1, while the contractor is also required to supply
appropriate first aid and kits under clause 77.2. These provisions
are typically used in the case of an epidemic, such as dengue fever,
or for minor injuries on a building site, when such events are still
under the control of the contractor.

According to interview that has been done, Abdullah, (2021), said
that there are no terms in the contract involving pandemics, which
means that if an outbreak occurs that is beyond the contractor's
control, the contractor is responsible for cleaning the location and
administering swab tests to his employees. Because they are not
the same, the epidemic clause does not apply to pandemics. As a
result, if the building work is done during the pandemic, the
contractor will be unable to recover these costs. The substance of
the PWD contract, Covid-19, has yet to be captured in this regard.

In regards to this section of 44.0, the contractor may be entitled to
loss and costs even if there is no additional delay, and the
contractor may not be entitled to loss and expenses even if the
EOT is received. under Clause 43.1(c), Clause 44.1, and Clause 50,
when the Architect gives a written directive to cease the works for
a continuous time, the contractor can make a claim for loss and
expenses related to the Covid-19 outbreak and MCO. However,
the contractor must bear the costs of sanitization to prevent
Covid-19 and swab testing, and he cannot claim them under
clause 44.0, which is a claim for loss and expenses.

FORM OF CONTRACT 56

BEFORE & DURING COVID - 19

PWD 203A REV. 1/2010

According to the PWD203A standard form of contract, the
contractor is permitted to receive Advance Payment of up to 25%
of the contract price, or RM10,000,000.00. The term "advance
payment" refers to a money given to the contractor before the job
is completed in order to help the contractor's cash flow by
covering the contractor's startup expenses, expenditures for
providing items, and service provider. The contractor has three
months from the date of site possession to file a claim. When the
project has made 25 percent progress, the government will usually
issue an interim payment to recuperate the Advanced Payment.
During the Covid-19 epidemic, the government published a
directive stating that the repayment of the Advanced Payment
begins once the project has reached 50% completion. The goal is
to improve and help contractors' cash flow when performing work
during pandemics.

Figure 16: Order Letter from Director-General of Public Works Bil. 8/2021

CONTRACT PRICE STRATEGY 57

COMPARISON

BEFORE COVID - 19 DIFFERENCES DURING COVID - 19

During that time, there was Rate in During the Covid-19
no significant difference in Tender
the cost of construction Document epidemic, construction
materials. Tenderers can still
submit their bids according materials are more costly.If
to the deadline that has
been set. The rate entered the tender is meant to be
in the BQ is still valid and
can be utilized in the tender closed during MCO 1, the
bidding.
deadline will be pushed back

until MCO 1 is finished. The

contractor's rate that was

entered into the BQ is

irrelevant and should not be

used.

The contractor will price the Item in BQ When MCO 1 is finished, a
bill as usual according to the new tender may be issued,
item specified in the BQ. and the contractor must
include in the cost of the
covid-19 test, sanitation, and
other factors. This item is not
subject to any claims by the
contractor.

CONTRACT PRICE STRATEGY 58

LUMP SUM CONTRACT

BASED ON BILL OF QUANTITY

The contract price technique that has been used for the case study project
is a Lump Sum Contract based on Bills of Quantities. The client will appoint
the Quantity Surveyor to prepare the Bills of Quantities in this sort of
contract, and the contractor will be requested to price it. When contractors
use this pricing method, it creates a level playing field for them to compete
on. This is because the contractors' prices will be based on the same set of
data that the Quantity Surveyor has compiled. During pandemic covid–19,
contractor must cover all expenses of safety equipment for covid–19 such
as test kit and mask. However, contractor will put extra price for safety
items in preliminaries. Other than that, government also come out with
variation of price in accordance with the special provision of the conditions
of contract until 31 December 2021. The price that can get variations was
bar reinforcement, crusher run and many more.

Interviewee mentioned that he primary impact on the building business
following the Covid-19 epidemic is price fluctuation. Price fluctuations have
a significant influence, particularly on the cost of construction materials.
Bar reinforcement is an example of a building material that has seen a large
price increase. When compared to before the epidemic, the cost of this
substance has increased. Steel prices are expected to rise by 48%. Aside
from that, there are also differences regarding the tender submission date
which if the tender is closed in March 2020 while MCO 1 is still ongoing, the
tender submission date will be extended until MCO 1 is completed in July
2020. As a result, the contractor's rate in the BQ is meaningless to use at
that moment. This arrangement puts the contractor at a disadvantage, and
they will suffer losses. Another scenario is that when MCO 1 is finished, a
new tender can be issued. During this period, the contractor must submit a
new tender that includes the cost of the Covid-19 test, sanitation, and
other relevant costs. The preliminary costs will reflect this hidden fee. This
item is not eligible for cost recovery by the contractor.

CONTRACT PRICE STRATEGY 59

VARIATIONS OF PRICE

BUILDING WORKS

Figure 17: Pekeliling Perbendaharaan (VOP, Pk 2.4)

CONTRACT PRICE STRATEGY 60

VARIATIONS OF PRICE

CIVIL ENGINEERING WORKS

Figure 18: Pekeliling Perbendaharaan (VOP, Pk 2.4)

CONTRACT PRICE STRATEGY 61

VARIATIONS OF PRICE

MECHANICAL AND ELECTRICAL WORKS

Figure 19: Pekeliling Perbendaharaan (VOP, Pk 2.4)

CONTRACT PRICE STRATEGY 62

VARIATIONS OF PRICE

MECHANICAL AND ELECTRICAL WORKS

Figure 20: Pekeliling Perbendaharaan (VOP, Pk 2.4)

CONTRACT PRICE STRATEGY 63

VARIATIONS OF PRICE

MECHANICAL AND ELECTRICAL WORKS

Figure 21: Pekeliling Perbendaharaan (VOP, Pk 2.4)

CHAPTER 5 64

CONCLUSION AND RECOMMENDATION

Nowadays, it is critical for the industry to comprehend and apply
appropriate procurement as a blending of operations carried out by the
client to complete the project. This entire process, which included
designers, contractors, and consultants, offers design and construction
services to the owner of the project. In the construction sector, there are a
variety of procurement strategies used, each with a different success rate.
The type of procurement is defined early in the procurement process, and
then the optimal strategy for selecting a contractor is chosen. Each tender
process has its own set of benefits and costs. Then there will be a
tendering process. This includes the tender evaluation. Finally, the
contract will be awarded to the successful contractor. The contract serves
as confirmation that both the customer and the contractors agreed to
every decision made before the construction began, as well as a revision if
a disagreement arises during the construction. The contract pricing
approach is significant since it is a method used by the customer to
determine the construction cost as well as pay the contractor for the
finishing job.

This is standard procedure in the procurement system. However, since the
pandemic, procurement has needed to adapt its system, starting with
tender selection and ending with contract award, because the
construction industry is one of the businesses that has been most
impacted by the pandemic. For example, the contractor may be unable to
perform the task within the contract's specified time frame. The Covid-19
pandemic has had a substantial impact on the construction industry,
particularly in terms of material costs. Because of the pandemic, the rate
in the BQ is no longer applicable if the tender is presumably filed during
the MCO. The contractor is the one that suffers the most as a result of this
predicament. As a result, a few recommendations can be considered in
order to enhance and adapt to the current circumstances.

65

CONCLUSION AND RECOMMENDATION

Revision of Contract

In the Malaysian construction business, PWD and PAM Contracts are
commonly used for both public and private projects as there is initiative to
survive during Pandemic. If there is a disagreement on the work site, the
contract serves as a reference. However, since the beginning of the
pandemic, the contract has proven ineffective in dealing with the current
circumstances. As is well known, the outbreak has had a significant impact
on the building industry. Because construction workers move from one
site to another when their expertise are no longer needed, there are many
clusters related to the construction site. As a result, the Majlis
Keselamatan Negara (MKN) has issued new Standard Operating
Procedures (SOP) that focus on the construction site's safety and health,
such as the provision of masks and hand sanitizer on site, once-weekly
mass screening of construction workers, site sanitation, and so on.
Otherwise, the site will be sued if these SOPs are not followed on site.
However, even if no provision for expense is included when the contract is
made, the contractor will be solely responsible for SOPs compliance costs.
The contractor will suffer a loss as a result of this. Because there is no
clause in the contract that addresses this issue, it is critical to amend it to
reflect the current pandemic situation so that the contractor does not
suffer more losses. This is because if the contractor can no longer pay for
the costs, the project would become overburdened, wasting resources.
Furthermore, because the building industry is regarded as the country's
economic growth engine, it will be a loss to the country.

66

CONCLUSION AND RECOMMENDATION

Using Selective Tendering during the Pandemic

Anyone can submit a tender to supply the goods or services that are
needed before pandemic started , usually in response to an advertisement
notifying the public that the contract is being bid. On larger projects, a pre-
qualification procedure may be used to create a shortlist of prospective
contractors who will subsequently be invited to submit offers. After the
Coronavirus pandemic in early 2020, the open tender, which is notorious
for its complicated tendering procedure, becomes more difficult to
implement. This is due to the fact that the flow of tendering, such as
tender submission and tender review, cannot be done physically at the
office under the government's Movement Control Order (MCO). As a
result, the entire procedure took even longer. Furthermore, because
everyone is looking for work during this difficult time, a larger number of
tenderers will submit bids for this tender.

During the pandemic, the Ministry of Finance (MOF) would consider using
selective tendering for government projects since the assessing process
will be simplified because just a small number of tenderers will be invited
to offer for the project. Instead of receiving a list of recommended
tenderers from the client, it is preferable to let any contractor interested
in bidding on the tender to provide information about their experience,
physical resources, and financial capability during the first stage of
selective tendering.

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Experience’. Available at:

https://www.icevirtuallibrary.com/doi/abs/10.1680/jvc2012.2.57838.0005

Accessed: 23 December 2021.

PPPLRC, (2020) ‘Concessions Build-Operate-Transfer (BOT) and Design-Build-
Operate (DBO) Projects’. Available at: https://ppp.worldbank.org/public-
private-partnership/agreements/concessions-bots-dbos Accessed: 25
December 2021.

Spend Edge. (2018) ‘4 Major Types of Procurement in the Construction Industry’
Available at: https://www.spendedge.com/blogs/types-procurement-
construction-industry Accessed: 18 December 2021.

Starr, P. (1998) ‘The Meaning of Privatisation’. Available at:
http://www.paulstarr Accessed:20 December 2021.

Tech Target Contributer, (2008) ‘BOO project (build, own, operate project)’.
Available at: https://whatis.techtarget.com/definition/BOO-project-build-
own-operate-project Accessed:23 December 2021.

Thomazios, C, N., Wong, T. (2020), ‘Joint Venture in Malaysia’. Available at:
https://mahwengkwai.com/joint-ventures-in-malaysia/ Accessed: 23
December 2021.

Watson K. (2009) Contractor’s Round Up. The history of Design-Build. Available at:
https://cdn.ymaws.com/www.fsawwa.org/resource/resmgr/Contractors_Cou
ncil/Contractor's%20Roundup%20October.pdf Accessed: 20 December 2021.

APPENDICES

Interview and sharing session with Sr Siti Nabilah Abdullah through
Google Meet platform

Google Meet Link - To join the video meeting, click this link:
https://meet.google.com/gps-aiwc-zky Otherwise, to join by
phone, dial +1 786-353-7935 and enter this PIN: 122 448 147#

PREPARED FOR:

SR. DR. YUHAINIS BT ABDUL TALIB
VIDEO PRESENTATION LINK:

https://drive.google.com/file/d/1eeYAj9Xg3
VzpT_AJVylLoJAza5Ye9ida/view?usp=sharing

AAP2244A
SEMESTER OCTOBER 2021-FEBRUARY 2022
UNIVERSITI TEKNOLOGI MARA
SERI ISKANDAR, PERAK DARUL RIDZUAN.