THE CONSTRUCTION INDUSTRY IN GENERAL DCC20073: CONTRACT AND ESTIMATING 1 Topic 1: ZAWANI BINTI ABU RAIS
CONTENT Basic concept of construction industry and role of construction teams Section 1: Types of Construction Industry Describe the types of construction industry in general Section 2: Stages Involved in Construction Industry Identify stages involved in construction industry Section 3: Roles of Design Team Members and Builders Team Members Explain the roles of the design team members and builders team members Section 4: Roles of PKK and CIDB in Construction Industry Explain the roles of Pusat Khidmat Kontraktor (PKK) and the Construction Industry Development Board of Maaysia (CIDB) DCC20073: CONTRACT AND ESTIMATING 2
TYPES OF CONSTRUCTION INDUSTRY The construction industry comprises two main sectors: (1) formal, and (2) informal. Construction refers to: ▪ Processes of building PHYSICAL STRUCTURE and RELATED ACTIVITIES – over a period of time. ▪ The process by which material, equipment, machinery are assembled into a permanent facility. Key difference between formal and informal sectors is REGULATORY ▪ FORMAL – works must be based on designs prepared by qualified designers and approved by authorities, and all construction works must be undertaken by contractors that are registered with the Construction Industry Development Board of Malaysia (CIDB). ▪ INFORMAL – works may be not formally designed, nor statutory approvals sought from authorities. Construction could either be self-build, built under the gotong-royong concept (villagers’ co-operation), or built by odd jobbers or unregistered contractors. DCC20073: CONTRACT AND ESTIMATING 3 Section 1: Construction engineering refers to: ▪ concerns the planning and management of the construction of structures such as highways, bridges, airports, railroads, buildings, dams, and reservoirs.
The Malaysian Industrial Classification (M.I.C) 1972 (updated 1979) refers to construction as: “… new construction, alteration, repair and demolition. Installation of any machinery or equipment which is built-in at the time of the original construction is included, as well as installation of machinery or equipment after the original construction but which requires structural alteration in order to install.” GENERAL CONSTRUCTION First types of construction industry covering RESIDENTIAL, NON-RESIDENTIAL, CIVIL and ENGINEERING construction. SPECIAL TRADE WORKS Second types of construction industry covering SPECIALIST WORKS such as metal works, electrical, planting, sewage and sanitation, Refrigeration and air-conditioning, bricklaying, painting, carpentry, cement and concrete, special trade (elevator, escalator, travelator specialist, fire fighting specialist) DCC20073: CONTRACT AND ESTIMATING 4
MM.DD.20XX ADD A FOOTER 5 Construction industries are divided into 3 categories:- Road, bridge, sewerage system, BRANCHES OF CIVIL ENGINEERING Civil Engineering Work House, office, hotel, resort, hospital, school, mosque Building Work Dam, airport, railway, highway, offshore structure, tunnel Heavy Civil Engineering Work Why is the construction industry importance?? Provide facilities to public. Provide employment for local people
STAGES INVOLVED IN CONSTRUCTION INDUSTRY Construction may be divided into two broad stages: (1) the processes during PRE CONSTRUCTION stage, and (2) the processes during POST CONSTRCUTION stage. ▪ PRE CONSTRUCTION contain five main elements processes: (1) Initiation/Promotion, (2) Funding, (3) Design, (4) Statutory Approval, and (5) Tendering ▪ POST CONSTRUCTION contain three main elements processes: (1) Construction, (2) Handover and Maintenance, and (3) Risk Allocation 6 Section 2: DCC20073: CONTRACT AND ESTIMATING
7 STAGES INVOLVED IN CONSTRUCTION INDUSTRY DCC20073: CONTRACT AND ESTIMATING Initiation/ Promotion Funding Statutory Approval Tendering Construction Handover & Maintenance Risk Allocation Design Stage 1: Pre Contract Stage 2: Post Contract
PRE CONSTRUCTION STAGE The processes of recognizing the need for a facility for owner occupation, as an investment, or as speculative development. ELEMENT 1 Initiation / Promotion ELEMENT 3 Design 8 DCC20073: CONTRACT AND ESTIMATING The provision of the finance required in order for the project to be undertaken. The available funding must be able to sustain financing the project during the periods between initiation of the project and the time when the facility is handing over to owner / final user. ELEMENT 2 Funding The translation of the requirements of the initiator (client) into drawings and specifications to facilitate construction. Design may be sub-divided into: 1. CONCEPT/SCHEMATIC design – translating the requirements into BASIC design form, indicating the shape, size and function of the facility. 2. DETAILED design – DETAILING and DESCRIBING each elements and specification of the facility so that it may be constructed and followed authorities regulation. 3. SPECIALIST design – SPECIFIC components or element within the structure, which requires specialist technical knowledge to design and construct such as Mechanical and Electrical systems. The processes of obtaining permission from the relevant authorities to initiate and to construct a facility and upon its completion occupy and/or use the completed facility ELEMENT 4 Statutory Approval The processes that is used to obtain offers leading to a contract between client and contractor, a client and consultant or a contractor and subcontractor. ELEMENT 5 Tendering Stage 1:
INITIATION/ PROMOTION A process whereby client identifies the need for facility. It involves two key elements namely (1) the preparation of feasibility study, and (2) the preparation of project brief. The commencement of a project invokes a series of activities: ▪ Identification of project objectives; ▪ Resolution of all land issues inclusive of the acquisition of any land, relocation of squatters, etc; ▪ Setting up of the client requirements, ie in the form of a preliminary project brief; and ▪ Setting up the project organization and management structure. 9 Element 1:
FEASIBILITY STUDY A feasibility study is a proposal to determine whether a project is viable or feasible from both the business, technical and social points of view. Environmental Impact Assessment (EIA) is a structural approaches and set of procedures in order to ensure that environmental factors are considered in planning and decision making. EIA is a process that identifies, predicts, evaluates and manages the potential (or real) impacts of proposed construction on both the human and natural environment. EIA procedure for project identification stage: ▪ Identify possible ENVIRONMENTAL effects. ▪ Propose MEASUREMENTS TO MITIGATE adverse effects. ▪ Predict whether there will be significant adverse environmental effects, even after the mitigation is implemented. DCC20073: CONTRACT AND ESTIMATING 10 The study may encompass wide-ranging issues including: ▪ Identifying and assessing the suitability of the site. ▪ The economic and market analysis that may include the type of facility likely to be suitable, its potential demand and likely competition, interest rates, capital injection, user fees and/or selling price. ▪ Estimates the time needed for the project and likely range of cost. ▪ Authorities’ policies in relation to the proposed development.
PROJECT BRIEF Crucial to the ultimate success of a project. Project Brief essentially a statement of the needs of the client and should define the client’s requirements in terms of concept, time, cost and functionality. DCC20073: CONTRACT AND ESTIMATING 11 The elements of a project brief may include: ▪ The requirement of the project as to the end product (normally expressed in terms of area of floor space, type and number of units of quarters, number of classrooms, number of hospital beds, etc.) ▪ Target date for completion. ▪ Design feature. ▪ The amount of money allocated for the project. The purpose of the Project Brief is to encapsulate all the finally agreed key features of this design so that: ▪ The client is fully aware of what he will get; ▪ The consultants can proceed with the Design Stage; and ▪ Each parties involved will be working towards the completion of same end goal. Preparing a project brief is time consuming activity and very tedious processes that required great expertise and knowledge. Poorly prepared project brief can be subjected to lot of interpretation and understandings, which could make the whole exercise futile and not to the client best interest.
FUNDING A process that concerned with both identifying the sources of funds and method of adequately funding a project. ▪ Available funding must be able to sustain financing the project during periods between initiation of the project and the time when the facility is able to be used and to yield its economic or other benefits. ▪ PRIVATE SECTOR funding – internally generated funds or external borrowings from banks and/or other financial institutions: finance companies, credit corporations and leasing companies. ▪ PUBLIC SECTOR funding – the government provide the necessary finance. Sources may be through the Treasury or borrowing from the local or international bodies. DCC20073 CONTRACT AND ESTIMATING 12 Element 2:
DESIGN The process of providing all information necessary for construction of a building that will meet its owner’s requirements ▪ Define as the preliminary conception of an idea that is to be carried into effect by action. ▪ Objective of design is to provide all the information necessary for the construction of a building. This objective is achieved by the production of drawings, or plans, showing what is to be constructed, specifications stating what materials and equipment are to be incorporated in the building, and a construction contract between the client and a contractor. 13 Element 3: DCC20073 CONTRACT AND ESTIMATING
3 STAGES OF DESIGN Design is divided to three stages: (1) Schematic design, (2) Detailed design, and (3) Specialist design. Schematic design 1. Overall design concept 2. Design documentation primarily for the owner approval. 3. Emphasis on the design. Approval of completed schematic design documents by owner required before proceeding to Detailed design stage. Detailed design 1. Developed Schematic design to greater detail considering constructability, cost, time restriction, etc. 2. Emphasis on finalizing design decisions 3. Emphasis on the client requirement vs cost. Approval of completed Detailed design by owner and authorities required before proceeding to Specialist design stage. Specialist design 1. Emphasis on specialist design to collaborate with detailed design – mechanical, electrical, geo-technical, civil engineer, etc. 2. Design according to authorities regulations and subjected to authorities approval. Approval from authorities is crucial and required before proceeding to construction stages. 14 1 2 3 DCC20073 CONTRACT AND ESTIMATING
STATUTORY APPROVAL Statutory controls and standards that have direct effect on construction activities: ▪ Town and Country Planning Act No. 172, 1976. ▪ Federal Territory (Planning) Act No. 267, 1982. ▪ National Land Code, Act No. 56, 1965. ▪ Environmental Quality Act 1974. ▪ Uniform Building by-laws and Street, Drainage & Building Act No. 133,1974 The objectives of statutory approval include: ▪ To achieve proper use of land – land for residential, non-residential, agricultural, etc. ▪ The planning of towns and cities ▪ The regulating of standards of buildings including fire prevention and provision for services, the standards of roads, drains and lighting. 15 Element 4: A process obtaining permissions from the relevant authorities to initiate and to construct a facility and upon its completion to occupy and use the completed facility. DCC20073 CONTRACT AND ESTIMATING
TENDERING The process by which bids are invited from interested contractors to carry out specific packages of construction work. Condition Precedent Completed before tendering: ▪ The design must be complete; ▪ The project budget must be approved; ▪ The financing for the project must be available; and ▪ All necessary approvals obtained. Necessary Activities Must be carried out: ▪ Preparation of detailed tender documentation; ▪ Invitation to tender; ▪ Submission of tenders; ▪ Evaluation of tender submissions; ▪ Award of tender; and ▪ Preparation and signing of the contract. Purpose The purpose of tendering: ▪ To select a suitable contractor at a time appropriate to the circumstances of the project; and ▪ To obtain from the contractor selected at the proper time, an acceptable tender or offer upon which a contract can be let. ▪ To reflect public accountability entrusted with the government/ professional practices. ▪ Yield the best returns for every money spent in terms of quality, quantity, timeliness, price and sources. 16 Element 5: DCC20073 CONTRACT AND ESTIMATING
POST CONSTRUCTION STAGE The processes of physically fitting the various components of a facility together, to form a final structure. Construction may be sub-divided into: 1. Management of construction – the management of the construction processes for the initiator (client); 2. Construction production – the physical construction of all or part of the structure for the initiator (client) in accordance with the detailed designs. Element 6 Construction The processes undertake after the physical construction has been satisfactorily completed where all the testing, commissioning and training taking place. The handover brings into operation the Maintenance stage where the contractor is liable to rectified all damages and imperfection and finalizing the contract. Element 7 Handover &Maintenance The susceptibility of each of the above generic functions to varying degrees if risk. The degree of risk is dependent upon the type of procurement system used and the individual functional rules. There are five types of risk associated which are (1) construction time, (2) product price, (3) design apportionment liability, (4) project finance, and (5) effectiveness of the building in operation and quality of workmanship. Risk cannot be eliminated but can be reduced. Element 8 Risk Allocation 17 Stage 2: DCC20073 CONTRACT AND ESTIMATING
CONSTRUCTION Subdivided into the construction management and the physical construction processes. ▪ Construction is the process of converting construction inputs into outputs performed by contracting firms. ▪ The contractors have the task of converting the inputs: human, physical and financial, into the process. ▪ There are two main types of contractors: (1) main contractors and (2) subcontractors. ▪ MAIN CONTRACTORS – specialize either in building works or civil engineering or both. ▪ SUB-CONTRACTORS – they are normally specialist contractors nominated by clients or appointed by main contractor in area such as HVAC System, Lift System, Fire Protection System, Air Conditioning and Mechanical Ventilation System, Swimming Pool System, etc. 18 Element 6: DCC20073 CONTRACT AND ESTIMATING
19 Represent the penultimate stage where the building being handed over to the client, with Aftercare initiated and the Building Contract concluded The works may be handed over to clients and Practical Completion certificate may be issued provided that: • The project has been substantially completed; • Operations can commence under appropriate safety standards; and • Only a list of minor defects or non-compliances of minor relevance have been detected (usually referred to as the “Defect list” and need to be repaired during Defects Liability Period) and these don’t prevent service commencement. Upon finishing the Defect Liability Period (DLP) – Certificate of Completion and Compliance (CCC) will be issued and mark the end of construction processes. HANDOVER AND MAINTENANCE Condition Precedent for handed over works: ▪ Completion of all necessary testing and commissioning; ▪ Completion of all operation and maintenance training; ▪ Practical completion of works under the contract; ▪ Fulfillment of all authority requirements and the obtaining of all necessary certificates, e.g. Certificates of Fitness, etc. ▪ Handover of all relevant ‘as-built’ records, documentation, undertakings, warranties, etc. Element 7: DCC20073 CONTRACT AND ESTIMATING
RISK ALLOCATION Risk is a factor of consideration in all construction projects irrespective of the project type, location, procurement system used, project team, etc. There are five types of risk associated to construction which are (1) construction time, (2) product price, (3) design apportionment liability, (4) project finance, and (5) effectiveness of the building in operation and quality of workmanship. Risk associated with the processes of construction may be examined in the contexts of: ▪ PROJECT BASED risks – risks that are directly related to the project such as project size, complexity, novelty, speed of design and construction and project site, and location. ▪ EXTERNAL risks – risks that are outside the project’s boundary and that are not within the authority of the project such as inflation, market conditions, price escalations on construction inputs, political instability, weather, force majeure like COVID 19 situation that put entire nation under lockdown for months, etc. Common risks associated with construction projects in Malaysia include risks: ▪ in cost and/or time overrun; ▪ of abandoned projects; ▪ of the inability of clients to sell the completed units in a project; ▪ Late or non payment from client; ▪ of labour and construction materials problem at work sites; and ▪ of poor works’ quality. 20 Element 8: DCC20073 CONTRACT AND ESTIMATING
ROLES OF DESIGN TEAM & BUILDERS TEAM MEMBERS These construction professionals are brought together for a specific construction project and then disbanded once construction is complete. ▪ A construction team is a group of people responsible for the planning, designing and construction of a project. ▪ Can help meet the buildings aesthetic and functional objectives. ▪ Meets or exceeds regulations requirements. ▪ Can help with safety and performance standards. 21 Section 3: DCC20073 CONTRACT AND ESTIMATING
DCC20073 CONTRACT AND ESTIMATING 22 The design team is most commonly employed by (i.e. in contract with) the property owner. ▪ Once the design is completed by the design team, a number of construction companies or construction management companies may then be asked to make a bid for the work, either based directly on the design, or on the basis of drawings and a bill of quantities provided by a quantity surveyor. ▪ Following evaluation of bids, the owner will typically award a contract to the most cost efficient bidder. DESIGN TEAM MEMBERS
Others that may be added to the list of designers include land surveyor, town planner, interior designer, landscape architect and specialist consultants in the areas such as geo-technical, environmental engineering, traffic planners and acoustic engineering. The practices of almost all design team members is governed by the respective professional institutions and is subjected to various statutory rules and regulations administered and enforced by the respective Boards. Some of the Boards are – BAM, BEM, BQSM, RISM, IEM, etc. Architects To provide services in architectural design and in general pre-contract and post-contract administration. Engineers Responsible for the designing, supervising the construction of the structural, mechanical and electrical aspects of the facility. Quantity Surveyor Act as financial controller and contract advisor throughout the duration of the project. 23 DCC20073 CONTRACT AND ESTIMATING Owner/Client Is the owner of the project who intends or want to build the project. Appoint consultants and contractors.
24 ROLES OF DESIGN TEAM MEMBERS Owner/ Client Architects ▪ Being responsible for the execution of the project from the initial idea to implementation ▪ Choosing the players involved in all stages from design through construction to long term management ▪ Ensuring that the needs of building users/customers are met ▪ Ensuring that the relevant permissions are secured (planning etc) in partnership with the professionals appointed to the project ▪ May also be financier and eventual owner • Assisting the client to prepare a strategic brief. • Carrying out feasibility studies and options appraisals. • Advising on the need to appoint other professionals to the consultant team, independent client advisers, specialist designers and specialist contractors. • Advising on the procurement route. • Contributing to the preparation of a project brief. • Preparing the concept design and detailed design. • Preparing planning applications and applications for statutory approvals. Only qualified individuals that are registered with the Boards of Architect Malaysia (BAM) can offer their services as architects. DCC20073 CONTRACT AND ESTIMATING
25 ROLES OF DESIGN TEAM MEMBERS Engineers Quantity Surveyor ▪ To design the skeleton or structure of a building, civil and electrical and mechanical services requirements. ▪ To ensure their designs satisfy given criteria; that they are safe, serviceable and perform well. ▪ Evaluate the structural, electrical, and mechanical condition of each project. ▪ Liaising with relevant authorities in getting approval for the design. ▪ Inspect all drawings and designs before they are implemented. • Helping define the project budget. • Checking developing designs against the project budget. • Preparing cost plans, estimates and cash flow projections. • Advising on procurement strategy. • Preparing bills of quantities and tender documents. • Collating and issuing tender documentation. • Prepare Tender Documents Only qualified individuals that are registered with the Boards of Engineer Malaysia (BEM) can offer their services as engineers. Only qualified individuals that are registered with the Boards of Quantity Surveyor Malaysia (BQSM) can offer their services as Quantity Surveyor. DCC20073 CONTRACT AND ESTIMATING
MM.DD.20XX ADD A FOOTER 26 Typically, the construction team will comprise the following roles that will be mostly site based - Project Manager (responsible for delivering the project), Main contractor, Site manager (clerk of works), Site engineer and Sub-contractors Roles of builders team members are: ▪ Oversees and manages the construction of the building for the Client; ▪ Following the Architect and Engineers’ designs; ▪ Delivered works under a contractual agreement. ▪ Select specialist sub-contractors based on their capability, availability and price. BUILDERS TEAM MEMBERS Contractors are the organisations appointed by clients to carry out construction works. However, contractors tend not to have all the trades required to construct a building in their direct employment. This means that a contractor is likely to appoint a range of sub-contractors to build the works for which they have been contracted. DCC20073 CONTRACT AND ESTIMATING
Architects To provide services in architectural design and in general pre-contract and post-contract administration. Engineers Responsible for the designing, supervising the construction of the structural, mechanical and electrical aspects of the facility. Quantity Surveyor Act as financial controller and contract advisor throughout the duration of the project. 27 DCC20073 CONTRACT AND ESTIMATING Contractors Responsible for all construction activities. The primary job of the constructor is to manage the project, keep it on schedule, control costs and coordinate project team members.
28 ROLES OF BUILDERS TEAM MEMBERS Contractors Architects ▪ Must build and complete the project based on the specification the document contract. ▪ Must bear the cost of all the works on site during construction and after completion. ▪ Must work efficiently to complete the project by due date. ▪ Comply with all local authority regulations ▪ Must provide insurance coverage for the project and workers. • Inspecting the works quality and adhere to approved design. • Advising on the rectification of defects. • Monitor work progress. • Apply Certificate of Fitness (CF) from the authority. DCC20073 CONTRACT AND ESTIMATING
29 ROLES OF BUILDERS TEAM MEMBERS Engineers Quantity Surveyor ▪ Monitor the progress of a project, inspect the work and advise contractors. ▪ To sign-off the sub-contractor’s installation, carrying the responsibility for any failure, so they should be vigilant about product selections. ▪ Monitoring, assisting and approving all testing and commissioning. • evaluates work on construction site for progress payment. • Evaluate work amendment instructions • Ensure that any defects have been repaired upon expiration of the defect liability. • Preparing valuation statements for interim certificates. • Assisting with the valuation of claims. • Prepare final account. DCC20073 CONTRACT AND ESTIMATING
30 Contractor organization chart The importance of contractor organization chart: ▪ Construction project run smoothly ▪ Each person knows their roles and duties ▪ to create an efficient management. ▪ save expenses. The hierarchy of organization structure
31 Organization Chart of Contractor Firms The size or shape of the organization chart of a contractor firm whether small, medium or large depends on the firm or the construction project being carried out
MM.DD.20XX ADD A FOOTER 32 Jurisdiction within the contractor firm
33 ROLES OF PKK AND CIDB IN CONSTRUCTION INDUSTRY Pusat Khidmat Kontraktor (PKK) Construction Industry Development Board (CIDB) ▪ A federal statutory body under the Ministry of Entrepreneur Development and Cooperatives (MEDAC) ▪ Function taking offer by CIDB on July 2011. ▪ Roles of PKK since 11 April 1984 until July 2011: ▪ Regulate contractor registration for Federal and State; ▪ Regulate Bumiputera status and grant the title to qualified contractor; ▪ Referral center for matters pertaining to Contractor; ▪ Providing advise and assistant to Bumiputera Contractor who undertaking government projects. Objective : To develop the capacity and capability of the construction industry through the enhancement of quality and productivity with emphasis on professionalism, innovation and knowledge in the pursuit of quality of life. ▪ A federal statutory body under the Ministry of Works ▪ Established under the Construction Industry Development Board Act (Act 520) ▪ Objective - to develop, regulate, enforce and execute other tasks related to the construction industry. ▪ Advises the Federal and the State Governments, as well as other stakeholders on matters affecting or connected with the construction industry. ▪ In July 2011, the Act was amended to strengthen CIDB’s roles in enforcing safe and quality construction and take over PKK function in managing Contractor Registration. Section 4: DCC20073 CONTRACT AND ESTIMATING
34 DCC20073 CONTRACT AND ESTIMATING
DCC20073 CONTRACT AND ESTIMATING 35 Roles of Pusat Khidmat Kontraktor (PKK) ▪ Responsible in granting BUMIPUTERA STATUS for contractors registered with CIDB for procurement of Government jobs, supplies and services in accordance with the instructions of the Treasury Circular; ▪ Responsible for granting PETRONAS STATUS based on criteria set by the Ministry of Finance (MOF); ▪ Regulate enforcement upon Bumiputera companies related to complaints, appeals and discipline charges; ▪ Implement Building Materials Contractor and Entrepreneur Development Programs; ▪ Managing the Contractor Trust Fund Scheme (Skim Kumpulan Wang Amanah Kontraktor “SKWAK”); ▪ Promoting E-Vendors to increase the number of Bumiputera construction vendor registrations; and’ ▪ Implement promotional programs for Bumiputera construction vendors such as exhibitions, product briefings and matching programs. After the announcement of 1RoC by Ministry of Works on July 2011, PKK roles changed solely to: BACKGROUND Contractor Services Centre (PKK) was established in 30 June 1981. It was then known as Contractor Services Coordination Centre (PUSAKABUMI) and being placed under the Prime Minister Department Implementation and Coordination Unit. In 1 January 1987, it was later known as Contractor Service Centre (PKK) inline with the expansion of its functions and authority. In 27 October 1990, PKK was moved to The Ministry of Public Entrepreneur, further in year 1995, PKK became part of the Ministry of Entrepreneurial and Cooperative Development. The initial role was to help solve the problems faced by Bumiputra contractors. On 10 April 2009 PKK placed under the Ministry of Works following the dissolution of Ministry of Entrepreneur and Cooperative.
MM.DD.20XX ADD A FOOTER 36 Class 'F' Contractors All class F contractors are Bumiputra. This mean class F contractors are Bumiputra contractors and not need to apply for the recognition of their Bumiputra status. BUMIPUTERA STATUS Definition of Bumiputra Company Currently the definitions of Bumiputera Company by the National Financial council according to the Treasury Circular no 7/74 are as follows: ▪ A Company which the majority of the share (at least 51%) is owned by Bumiputra. ▪ And majority (at least 51%) of the company workforce constitute of Bumiputra. Bumiputra Recognition Companies which would like to apply for the Bumiputera status recognition should fulfill the conditions recorded in the Treasury Circular no. 7 year 1974, which are:- • Majority or at least 51% of members of the Board of Directors are Bumiputra. • Majority or at least 51% of members of the management are Bumiputra. • Majority or at least 51% of shares are owned by Bumiputra. • Majority or at least 51% of workers (clerical and building site) are Bumiputra.
37 To develop the capacity and capability of the construction industry through the enhancement of quality and productivity with emphasis on professionalism, innovation and knowledge in the pursuit of quality of life. ▪ 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 Government on matters affecting or connected with the construction industry; ▪ To promote, stimulate and undertake research into any matter relating to the construction industry; ▪ To promote, stimulate and assist in the export of service relating to the construction industry; ▪ To provide consultancy and advisory services with respect to the construction industry; ▪ To promote and encourage quality assurance in the construction industry; ▪ To regulate the conformance of standards for construction workmanship and materials; ▪ To obtain, publish, initiate and maintain information relating to the construction industry including the establishment of a construction industry information system; ▪ To provide, promote, review and coordinate training in the construction industry; ▪ To register and accredit contractors, to impose any conditions of registration and accreditation of the contractors and to revoke, suspend or reinstate the registration and accreditation; ▪ To register, accredit and certify construction personnel and to revoke, suspend or reinstate the registration, accreditation and certification of such construction personnel; ▪ To regulate the implementation for quality and safe construction works; ▪ To regulate the implementation of Industrialized Building System in the construction industry; and ▪ To attend to any complaint or report made in relation to any failure of construction works or completed construction works which affects public safety and take appropriate actions to address it Roles of Construction Industry Development Board (CIDB) DCC20073 CONTRACT AND ESTIMATING
38 Grade 4 LOCAL CONTRACTOR REGISTRATION Not exceeding RM3,000,000.00 Grade 3 Not exceeding RM1,000,000.00 Grade 5 CIDB Task: New applications, renewal and upgrading/additional categories & contractor specialization, Application for change in details of registration and issuing Certificate of Registration. Grade 2 Not exceeding RM500,000.00 Not exceeding RM5,000,000.00 Grade 7 No Limit Grade 6 Not exceeding RM10,000,000.00 DCC20073 CONTRACT AND ESTIMATING Grade 1 Not exceeding RM200,000.00 Category: B – Building Construction CE – Civil Engineering Construction ME – Mechanical & Electrical Construction
39 CONSTRUCTION PERSONNEL REGISTRATION Every person wish to enter construction site MUST be registered as Construction Personnel and have a valid GREEN CARD as per Section 33, CIDB Act 520. ▪ Issued by CIDB to those who successfully attended the Safety Courses & Training held by CIDB or appointed training center. ▪ No person should enter/work in construction site without Green Card – imposed to all Malaysian or Foreign workers. DCC20073 CONTRACT AND ESTIMATING