Development Process 2 0 2 3 Prepared By : Nurul Syahirah Qasrina Bt. Sha’aizam (2022786291) Iszureen Bt. Ismail (2022935695) Naureen Sofee Bt. Anuar (2022771565) Nurina Bt. Radzuan (2022787089) Nurul Nabila Nasuha Bt. Osman (2022745543) Prepared For : Dr. Faridah Binti Muhamad Halil BQS 606 Construction Economics III Class : AP224 5D Bachelor Of Quantity Surveying (HONS)
TABLE OF CONTENTS Flow Chart License Sale Permit Certificate of Completion and Compliance 3.0 Summary Of The Development Process 2.0 Requirement & Procedures In The Development Land Acquisition Procedure Sub-Division 1.0 Introduction 5.0 Fees Involved Planning Building 4.0 Time Frame For Each Stage 6.0 Conclusion 7.0 References BQS 606 CONSTRUCTION ECONOMICS
Alhamdulillah. First and foremost thanks to Allah Almighty that we have done with our case study. Biggest grateful for his showers of blessings, time, good health and strength to work in completing this case study. We would like to thank all of the people who helped us with this project, without their support and guidance it wouldn’t have been possible. We appreciate our lecturer Dr. Faridah Binti Muhamad Halil for her guidance and supervision which has provided a lot of resources needed in completing our project. ACKNOWLEDGEMENT Our parents as well as friends were constantly encouraging us throughout the process when we felt discouraged or became frustrated because they knew how much work went into this case study and willing to help. We are grateful to our classmates and batchmates for helping throughout the project, for their willingness and assistance. They helped us with this project, which we appreciate dearly. Thank you! BQS 1 606 CONSTRUCTION ECONOMICS
A development process is an organized technique or methodology for planning, designing, building, and deploying software or other products. It describes the stages and actions that go into developing a new product or upgrading an old one. Owners may construct buildings for their own use for example, prominent retailers may construct supermarkets. Property developers may also create the same sort of structures for leasehold or freehold. Although the method may be similar, several components of the financial evaluation may differ. Project management strategies are frequently used throughout the development process to measure progress, manage resources, and keep the project on track. It is crucial to note that the individual processes and activities in the development process may vary based on the project, industry, and organizational practices. Varying approaches may place varying emphasis on particular phases or activities, but the ultimate goal is to produce a high quality product that satisfies the desired objectives. The development process will go through several specific methods : 2 1.0 INTRODUCTION ·Requirements gathering ·Planning ·Design ·Development BQS 606 CONSTRUCTION ECONOMICS ·Testing ·Deployment ·Maintenance and iteration
The process of establishing, upgrading, or redeveloping real estate properties for various uses such as residential, commercial, industrial, or mixed-use developments is referred to as property development. Acquiring land or existing properties, gaining essential permissions, designing and constructing buildings or infrastructure and finally selling or leasing the built assets are all part of the process. It's vital to remember that property development procedures might differ based on the project, region and regulatory requirements. When embarking on a property development project, it is important to consult with local real estate specialists, legal experts, and industry norms. Economists usually believe that four variables drive economic development and growth which is human resources, physical capital, natural resources and technology (Woodruff, 2019). Governments in industrialized nations are focused on these issues. Less-developed countries, especially those with abundant natural resources, will fall behind if they do not push technological development and increase people's skills and education. In this case study, in Taman Sentosa located in Klang, Selangor are developing a residential building. In here there are received a lot of investors in property since the place is very strategic and full of facilities. The development of this property is the great tool for a financial portfolio and future growth. BQS 606 CONSTRUCTION ECONOMICS 3
4 1.1 LOCATION OF THE PROJECT Taman Sentosa is neighbourhood located in the vicinity of Klang, Selangor. This residence is located closely to other neighbourhood such as Port Klang, Shah Alam, Puchong, Subang Jaya and PetalingJaya. This neighbourhood consist of properties namely terrace houses, apartment, semidetached houses, shop lots and factories, which comes with a freehold tenure. Besides that, Taman Sentosa offers properties which have built up. This housing area also comes with facilities namely playground, jogging track, restaurants, convenience stores, hospitals, hypermarkets and fast food outlets. In terms of accessibility, Taman Sentosa is linked via roads and highways namely Jalan Bukit, Jalan Kebun, Jalan Sungai Jati, Jalan Langat, Jalan Tun Abdul Razak, Federal Highway, Shah Alam Highway and Kemuning to Shah Alam Highway (LKSA). There are also good service of bus and taxi available in this vicinity, as well as the Klang KTM Station is also located driving distance away from this residence. BQS 606 CONSTRUCTION ECONOMICS
Jalan Tun Abdul Razak, Federal Highway, Shah Alam Highway and Kemuning to Shah Alam Highway (LKSA). There are also good service of bus and taxi available in this vicinity, as well as the Klang KTM Station is also located driving distance away from this residence. This housing area also comes with facilities namely playground, jogging track, restaurants, convenience stores, hospitals, hypermarkets and fast food outlets. In terms of accessibility, Taman Sentosa is linked via roads and highways namely Jalan Bukit, Jalan Kebun, Jalan Sungai Jati, Jalan Langat, 1.1 LOCATION OF THE PROJECT Taman Sentosa is neighbourhood located in the vicinity of Klang, Selangor. This residence is located closely to other neighbourhood such as Port Klang, Shah Alam, Puchong, Subang Jaya and PetalingJaya. This neighbourhood consist of properties namely terrace houses and semi detached house which comes with a freehold tenure. Besides that, Taman Sentosa offers properties which have built up. MUKIM : TAMAN SENTOSA DISTRICT : KLANG PROVISIONAL LAND AREA : SELANGOR DARUL EHSAN TENURE : FREEHOLD LAND AREA : 7 ACRES CATEGORY OF LAND USE : RESIDENTIAL EXPRESS CONDITION : NIL RESTRICTION IN INTEREST : NIL BQS 606 CONSTRUCTION ECONOMICS 5
BQS 606 CONSTRUCTION ECONOMICS Klang Local Authority was known as Klang Health Board before to its formation in May 1890 to manage Klang town. Its formal boundaries was established in 1895, and it was later united with Port Swettenham to form the Klang Municipal Board in December 1945.The establishment of the Klang Town Council in 1954 brought about yet another shift in management. Klang grew fast under this new administrative setup until 1971, when Port Klang, Kapar, and Meru merged to become the Klang District Council. The proposed development site is located at Klang, Selangor Darul Ehsan. The land that has been purchased covering an area of 7 acres will be used to build housing which is "Taman Kalista Utama, Jalan Hulubalang 27, 41200, Klang, Selangor Darul Ehsan". This property will be tenure under freehold. This residential will be develop under agreement Klang Municipal Council (MPK). The development applications will be submitted to this local authority. After passing the requirement and approval needed, it will given back to another phase and applicant. The duration of the agreement may be according to the types of the project development submitted. 1.2 BACKGROUND OF LOCAL AUTHORITY Majlis Perbandaran Klang (MPK) 6
Providing and assembling public amenities. Updating and upgrading the quality of services. Providing recreational and exercise facilities . Encouraging the growth of the industry and trading. Knitting the unity among the people while creating a society that is responsible and well-discipline. Restructuring and monitoring the development through effectively controlling planned development. Creating a beautiful atmosphere for the whole area, in line with the objective to make Klang town as a 'Garden Town'. Creating Klang as a town that is in a beautiful and peaceful garden. Preserving treasures that has historical and aesthetic value. Ensuring the public cleanliness and health is guaranteed. There are several strategies that are Klang Municipal Counsil do : 1.2 BACKGROUND OF LOCAL AUTHORITY (CONT'D) The development chosen is a very strategic place that the residential is surround with a lot of facilities. Pejabat Tanah provided information on the proposal's development. The site plan, status, land grant, and land status were all successfully obtained via the Majlis Pembandaran, Klang Office and their official website. BQ 7 S 606 CONSTRUCTION ECONOMICS
8 1.3 JURISDICTION BQS 606 CONSTRUCTION ECONOMICS
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BQS 606 CONSTRUCTION ECONOMICS 10 1.3 JURISDICTION CONT’D
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16 CHART ORGANIZATION YANG DIPERTUA YBHG TUAN HAJI NAJMUDDIN BIN JEMAIN Menara MPKj, Jalan Cempaka Putih, Off Jalan Semenyih, 43000 Kajang, Selangor Darul Ehsan BQS 606 CONSTRUCTION ECONOMICS
CHART ORGANIZATION CONT'D Y.A.D DATO' SETIA HAJI MOHAMMED KHUSRIN BIN HAJI MUNAWI Pejabat Orang Besar Daerah, Tingkat 2, Pejabat Daerah / Tanah Klang, Jalan Kota, 41902 Klang, Selangor Darul Ehsan DR. QUAH PERNG FEI Pusat Khidmat Ahli Majlis N40, C4/119 New Business Centre, Jalan Meru, 41400 Klang, Selangor Darul Ehsan ENCIK LEE SEK WUN Pusat Khidmat Ahli Majlis N41, 12-2, Jalan Raya Barat 2/KS1, Pusat Perniagaan Raya Barat, 41100 Klang, Selangor Darul Ehsan PUAN MUTHUMARIAMMAH A/P N.SUPPAEYA Pusat Khidmat Ahli Majlis N43C, No. 23, Lorong Tanjung Syawal 1/KU3, Jalan Goh Hock Huat, Kampung Rantau Panjang, 41400 Klang, Selangor Darul Ehsan AHLI MAJLIS BQS 606 CONSTRUCTION ECONOMICS 17
2.0 Requirements & Procedures In The Development BQS 606 CONSTRUCTION ECONOMICS
Land Acquisition In the process of acquiring land, a governmental authority or the government will buy a private landowner's property. Lands are frequently purchased by the State Authorities in Malaysia for a wide range of public uses, such as the construction of infrastructure (roads, motorways, LRT), and large-scale development projects. Given the Federal Constitution's protection of the entitlement to private land ownership, it also established two restrictions. The following conditions must be met in order to purchase private lands. Such restriction is carried out legally or a private landowner is fairly compensated for the land's obligatory acquisition. The land is conveniently located in Taman Sentosa, a fast emerging neighbourhood in Klang, and is adjacent to public amenities like hospitals as well as educational institutions like schools. It is also in a tranquil setting and surrounded by greenery. The area also gains from superb connections to the roads. This land is chosen for residential development that’s going to be sold as freehold to the the new users. BQS 606 CONSTRUCTION ECONOMICS 1918
BQS 606 CONSTRUCTION ECONOMICS Requirements Before purchasing land, the State Authority must take into account its intended use. According to Section 3 of the 1960 Land Acquisition Act, the State Authority may purchase land for the following uses, however, under the conditions listed here: a) Public uses. b) Economic development-related purposes. c) As well as mining, residential, agricultural, commercial, industrial, recreational, or any combination of these, are all acceptable. 20
Procedures BQS 606 CONSTRUCTION ECONOMICS Land purchases are widespread, mostly in developing countries where the governing authorities commonly in demand for land for things like improving public infrastructure or fostering national growth. The term "compulsory land acquisition" refers to the act of the government purchasing property from landowners in private over these kinds of economic projects. There are forms that need to be completed in order before purchasing land. Hence, it starts with Form A untill Form 0 and each of this form has it’s own requirement. The land acquisition procedure can be categorized into various levels which are preacquisition, acquisition, and post-acquisition. The three basic components of the LAA are: (i) The reason for the acquisition. (ii) The acquisition process. (iii) The evaluation of the landowner's compensation. 21
BQS 606 CONSTRUCTION ECONOMICS Procedures 01 02 03 04 05 07 09 06 08 10 11 12 13 14 15 16 17 22
23 BQS 606 CONSTRUCTION ECONOMICS A land lot can be divided into two or more sections, each of which will be owned by the same owner but under different titles. Breaking up alienated land with a Registry or Land Office title is a vital legal planning activity. The initial stage of community development is land subdivision. Among the goals of land subdivision are the following: SUB DIVISION To make money by selling off a portion of the land Land commercialization To build a town To create various building styles on certain plots To identify and set out each region of the country from the others 1. 2. 3. 4. 5. Documents Required for Land Subdivision Certified copy of the land title Copy of quit rent receipt for current year Appointment letter of Licensed land surveyor from Land Surveyor Board Authorized letter from every person or body having a registered interest in the land Contact details of the applicant Copy of authorization letter from planning authority Site Plan Location plan 1. 2. 3. 4. 5. 6. 7. 8.
3.0 SUMMARY OF THE DEVELOPMENT PROCESS DEFINITION OF DEVELOPMENT ORDER The Development Order (D.O.) is the development's verified planning. As a result, everything agreed upon during the development order stage must be completed later. All landrelated concerns, the preliminary design, the kind of construction, the build-up area, the number of units, and the number of parking spaces to be offered must be agreed upon between the developer and client. All of this must be coordinated between the consulting team and the developer side. A weekly or biweekly ClientConsultant Meeting (CCM) may be required to collaborate on this submission, and it might take anywhere from 6 months to 2 years until the D.O. is eventually authorised. BQS 606 CONSTRUCTION ECONOMICS 24
PROCESS 1 Collection of Technical Information (NOT MANDATORY) PROCESS 2 Consideration of Development Plans PROCESS 3 Notification to Start Construction Work PROCESS 4 Site Monitoring and Notification of Interim Inspection PROCESS 5 Notification of Final Inspection I & II PROCESS 6 CCC Deposition (Form F/ F1) and Form G1 - G21 DEVELOPMENT ORDER PROCESS These are the 6 process of development order that developer needs to follow accordingly: BQS 606 CONSTRUCTION ECONOMICS 25
FLOWCHART OF THE DEVELOPMENT ORDER PROCESS PROCESS 1 COLLECTION OF TECHNICAL INFORMATION (NOT MANDATORY) THE PURPOSE To collect information and recommendations from each technical agency or department (ATD and ATL) participating in giving technical comments on development plan applications about data and general technical needs. It is not essential to collect information in the initial process step. It is a procedural step that the applicant chooses to take. Prior to submitting the official application to the local authority (PBT), applicants must produce plan designs and documentation in line with the document checklist using data and technical criteria. BQS 606 CONSTRUCTION ECONOMICS 26
PROCESS 2 CONSIDERATION OF DEVELOPMENT PLANS THE PURPOSE The major purpose of Process 2 is to evaluate and process all development plan applications submitted by the Local Authority Centre (OSC). Development plan applications must adhere to the document checklist and be filed using the OSC 3.0 Plus Online System. BQS 606 CONSTRUCTION ECONOMICS FLOWCHART OF THE DEVELOPMENT ORDER PROCESS Application from the OSC Unit will be accepted for record-keeping purposes by all technical departments, both internal and external. The application is legally authorised when the applicant produces two copies of papers (hard copies) that are completely consistent with the document checklist. Each development plan application is submitted to the Commenting Department online, without a hard copy (ATD and ATL). Only formal letters of application from the OSC Unit will be accepted for recordkeeping purposes by all technical departments, both internal and external. 27
FLOWCHART OF THE DEVELOPMENT ORDER PROCESS PROCESS 3 NOTIFICATION TO START CONSTRUCTION WORK The primary purpose of the construction work notification technique is to formally inform technical agencies and municipal authorities prior to the commencement of construction work. During their respective periods of validity, all development plans must be filed with the construction beginning notice. A planning permission, a road and trench plan, a construction plan, and a land work plan are the most important documents. The notice of the commencement of construction work must be handed to the local government at the OSC unit counter. The OSC Unit shall provide copies of the Documents of Beginning Work (Form B Land Work and Form B Building Work) to the relevant Internal and External Technical Department/Department. BQS 606 CONSTRUCTION ECONOMICS 28
FLOWCHART OF THE DEVELOPMENT ORDER PROCESS PROCESS 4 SITE MONITORING AND NOTIFICATION OF INTERIM INPECTION The next process, Process 4 (Construction Site Monitoring and Interim Notification), is intended to direct the Local Authority (PBT) and Agency/Technical Department to conduct construction site inspections to verify that the building is being constructed in accordance with the approved development plan. After the physical completion of the construction work, an interim inspection is performed for the scope of work of the agency or technical department that provides clearance, qualification, or confirmation prior to the applicant's, PSP's, or SP's approval of Form G, such as the State Water Authority's (PBAN), Tenaga Nasional Berhad's (TNB), PBT Engineering Department's, and Public Works Department's. BQS 606 CONSTRUCTION ECONOMICS 29
FLOWCHART OF THE DEVELOPMENT ORDER PROCESS Before the applicant, PSP, or SP certifies Form G, process 5 (Notification of Final Inspection) is used to receive clearance, qualification, or verification paperwork from the agency or technical department in line with the defined scope of work. When all physical work and final finishing for all of the scopes of work listed in Form G have been completed, particularly the scopes of work for the agency or technical department that will issue clearance, qualification, or confirmation, such as the State Water Authority's (PBAN) scope of work, Tenaga Nasional Berhad's (TNB) scope of work, and the Local Authority Engineering Department's (PBT) scope of work, and the final inspection has been conducted. PROCESS 5 NOTIFICATION OF FINAL INSPECTION I AND II BQS 606 CONSTRUCTION ECONOMICS 30
FLOWCHART OF THE DEVELOPMENT ORDER PROCESS Process 6 (CCC Deposit): Submit to the Local Authority and Professional Board a copy of the CCC that has been approved for recording by the PSP/SP. Before providing a certificate for the issue of CCC, the PSP/SP must check that all Forms G1 to G21 have a letter, certificate of release, qualification, or confirmation from the applicable Agency or Technical Department. Before sending a copy of the CCC to the developer or owner, the PSP/SP that certified the issuing of the CCC is obliged by paragraph 25(3) of the Uniform Building Bylaws 1984 to deposit a copy of the CCC with the Local Authority (PBT) and Professional Board. PROCESS 6 CCC DEPOSITION (FORM F/ F1) AND FORM G1 - G21 BQS 606 CONSTRUCTION ECONOMICS 31
DEVELOPER’S LICENSE The Ministry of Housing and Local Government (KPKT) grants the housing developer an advertisement permit and developer's licence (APDL) to conduct out development activities as well as to promote and sell properties through housing development plans. The Housing Developers Act (Control and Licencing) of 1966 requires that developers apply for licences and permits before they can develop any land for homes. The purpose of this Act is to safeguard the interests of homebuyers by regulating and overseeing the actions of housing developers. The APDL is a crucial document for both the buyer and the developer of homes. Without the APDL, the property developer is unable to market and sell any of the properties included in any project. When buying houses under residential construction, it serves as a measure of protection for purchasers to make sure they are working with legitimate housing developers. BQS 606 CONSTRUCTION ECONOMICS 32
SALES PERMIT A sale permit is a licence or permit issued by the government that enables a developer to sell one or more properties in a certain location. A sales permit frequently needed for new business or residential buildings. The permit is a mandatory by law to guarantee whether the construction complies with quality requirements and is secure enough for occupancy. At the consideration for development, developers must apply the license and sale permit before move to the next process to allow themselves to be eligible and legal before work‘s commencement. By using APDL s license and sale permit, the law requires that specific crucial bits of information be shown on advertisements which are : Validity interval. Land tenure Project name. anticipated date of completion. Lowest and highest prices. Construction plan number. BQS 606 CONSTRUCTION ECONOMICS 33
The process of developing real estate includes the Certificate of Completion and Compliance (CCC). It is an evaluation performed by experts in the field to determine whether the structure has been completed safely, corresponding to the initial plans, and is ready for occupancy. The CCC, which took the role of the CFO in 2007, sped up the approval process and eliminated delays for homebuyers seeking to transfer into their new residence. Certificate of Completion and Compliance, or CCC, is what it stands for. When the development is complete, it must be made. The Principal Submitting Person (PSP), a specialist in the field with knowledge of the construction, also completes the CCC. First and foremost, the PSP is in charge of examining and keeping track of progress during the whole construction process. It implies: CERTIFICATE OF COMPLETION & COMPLIANCE Sending in a plan for approval to the PBT. Notifying the PBT when construction activity begins. Ensuring that all necessary laws and regulations are followed while monitoring construction activities on a site. BQS 606 CONSTRUCTION ECONOMICS 34
Time Frame For Each Stage
PERIOD STIPULATED PROCESS 2 working days Implementing the construction plan, generating the development fee report, and applying the development charge. 14 working days Assessment of the plan, site visit, and estimation report. 14 working days For review and certification, the developer will get the evaluated paperwork. 7 working days Granting the applicant, a letter of approval and a plan that has been approved. Building Approval Time Frame BQS 606 CONSTRUCTION ECONOMICS 35
PERIOD STIPULATED PROCESS 2 working days Implementing the construction plan, generating the development fee report, and applying\the development charge. 14 working days Assessment of the plan, site visit, and estimation report. 14 working days For review and certification, the developer will get the evaluated paperwork. 7 working days Granting the applicant, a letter of approval and a plan that has been approved. Planning Approval Time Frame BQS 606 CONSTRUCTION ECONOMICS 36
FEES INVOLVED
Planning Fees Building fees The most important phases of the development process are pre-development and planning. MPK has regulated the amount of planning fees as stated in the figure below . 38
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The plan must also contain the tariff for the sanitary fixtures that are integrated into the house. The following chart shows the sanitary equipment tariff. The other fees are those additional fees which is for the signage, temporary structure, scaffolding and many others as stated 40
The fees for each type of building differs. There are multiple types of building such as low cost housing, terrace, apartments, shop lot, gas station and many more. For example, choosing the terrace house as the intended project so they calculation of fees are as stated in the table No. 2 41
OVERVIEW PROCESS OF DEVELOPING HOUSING SCHEME BY FEDERAL /STATE SUBSIDIARY / GOVERNMENT L INK COMPANIES. (N.D.). HTTP://ARCHITECTUREMALAYSIA.COM/FI LES/POOL /106 _171016_1127232723_PAM_CPD_HOUSING_DEVELOPMEN T_14102017.PDF RATCL IFFE, J . , & STUBBS, M. (2020). THE PROPERTY DEVELOPMENT PROCESS. URBAN PLANNING AND REAL ESTATE DEVELOPMENT, 211–232. HTTPS://DOI.ORG/10.4324/9780203428245-17 WOODRUFF, J . (2019). FACTORS AFFECTING ECONOMIC DEVELOPMENT AND GROWTH. HTTPS://SMAL LBUSINESS.CHRON.COM/FACTORSAFFECTING-ECONOMIC-DEVELOPMENT-GROWTH1517.HTML REFERENCES