The words you are searching are inside this book. To get more targeted content, please make full-text search by clicking here.

PROCUREMENT SYSTEM PRACTICE IN THE MALAYSIAN CONSTRUCTION INDUSTRY

Discover the best professional documents and content resources in AnyFlip Document Base.
Search
Published by fatinnur832, 2022-01-13 22:24:31

COURSE WORK 1-BQS559 -PROFESSIONAL PRACTICE 1

PROCUREMENT SYSTEM PRACTICE IN THE MALAYSIAN CONSTRUCTION INDUSTRY

Keywords: PROCUREMENT SYSTEM

Coursework 1

BQS 559
Professional
Practice

PROCUREMENT SYSTEM PRACTICE IN THE MALAYSIAN CONSTRUCTION INDUSTRY

GROUP MEMBERS

EVA MICHELE APINES
2020968105

NOR FATIN EDAYU BINTI MAT HUSAIN
2020960133

RAFFIZIANA BINTI RAJINAN
2020960089

RADEN ZINIRA BINTI AMIN OTHMAN
2020982303

ROHANIZA BINTI ROSLEE BQS 559 Professional Practice
2020978933 Coursework 1

i

TABLE OF
CONTENTS

01 Introduction 1-1

02 Literature Review 2-3

03 Research Methodology 4-8

04 Data Analysis 9-17

05 Conclusion & Recommendation 18-19

06 References 20-22

BQS 559 Professional Practice
Coursework 1

ii

INTRODUCTION

Procurement system is a guideline in every project where the system is responsible in determining party
involve, the contract obligation and activities that will be done throughout the construction process to
achieve the end result that satisfy the client requirement. Meanwhile procurement process is define as
the strategic brief which allow the successful of the project progress that organize the team selection,
project designation and method of project delivery. The main reason to the existence of procurement
system in construction industry is to make the communication between tradesman and supplier to be
more organized. However, the purposes of the procurement system have evolved following the
development of construction industry particularly when dealing with advance technology as well as
achieving the current client requirement and needs. (Ahamad, 2020)

On January 11, 2020 World Health Organization (WHO) has recognized a global pandemic which known
as Covid-19 where it is then declared as a global Public Health Emergency of International Concern
(PHEIC) on 30th January 2020. The declaration then leads the Malaysia government to implement a
nationwide traffic restriction or also known as stay at home order on 18th March 2020. The order has
been improve as the case increase with a special standard operation procedure (SOP) which introduces
new rules for the whole country to follow including construction industry. Therefore, the construction
industry also faces difficulties in the construction activities where construction industry player have to
do adjustment in the procurement system to reduce the loss in their project and follow the new rules and
regulation. (Esa, Ibrahim, & Kamal, 2020)

This report aim is to acknowledge the impact of pandemic towards procurement system. Meanwhile, the
purposes of the report are to explore the procurement system in construction industry and to identify
the current practice of the system during the pandemic. This report also meant to figure out the
differences between the procurement system before and after pandemic. This report is done using
quantitative research where from the research; the data that will be collected are types of procurement
system used in the project, the selection of contractor, tendering procedure, form of contract use and the
adopted contract price strategy.

Case Study
1 SMK Kundasang, Sabah

LITERATURE REVIEW

The novel coronavirus which called as Covid-19 is a The procurement system in the construction sector is
respiratory illness which have been declared as a beneficial for every construction player including the
worldwide pandemic and have a higher rate of client who uses their services. The emergence of this
infection where a research have found that in 84 days system in construction industry initially is to provide a
of the virus outbreak China, Italy, USA, Spain, more organised communication between tradesmen
Germany, Iran, France, South Korea, Switzerland and and the materials supplier. However, as the world
the UK have recorded a high number of infection evolve the clients’ needs also changed accordingly.
including higher rate of death. (Gbadamosi et al., 2020; Thus, alternatives construction procurement systems
Sadiq & Kessa, 2020) Due to the rapid spreading of the were created to achieve the client expectation and
viruses a variety of emergency measures such as adapting to the current construction environment
lockdown has been implemented by several countries which are Design and Build, Management Contracting
to contain the viruses and prevent it from outspread. and Construction Management. These procurement
(Esa, Ibrahim, & Kamal, 2020; Gbadamosi et al., 2020; systems mainly differ in the contractual relationship,
Sadiq & Kessa, 2020) The implementation of the roles and liabilities of the involved parties and also the
lockdown or also known as the Movement Control strategy implemented to execute the project priority.
Order (MCO) consist of reducing citizens activities by (Ahamad, 2020).
advising business owner to stop their operations and
services which also affecting construction sector that The outbreak of the coronavirus has created a deadly
leads for an improvement in the procurement system. pandemic that leads to new rules and regulation to
(Esa, Ibrahim, & Kamal, 2020; Zamani et al., 2021) . follow. The first measures taken by the government is
by taking a lockdown method where in Malaysia there
Prior to current pandemic situation, procurement are three stages which are Movement Control Order
system has always been important in construction (MCO), Conditional MCO (CMCO) and Recovery MCO
industry as the system providing an organised method (RMCO). Somehow, the MCOs, as well as the CMCO and
in occurring materials and undertakes the construction RMCO with tight SOP, hugely impacted the
activities. Public procurement system generally known construction industry and the consequences are not
as a method in purchasing products as a whole which only related to the financial aspects but also impacting
consist of important factors such as identification of the project success as well as the project performance.
needs, selection of sources and preparation of contract Due to that, the productivity of the project performance
and awards which also implemented in construction has dropped and to deliver a project is seen to be hard
sector. (Sadiq & Kessa, 2020) According to Nawi et al., during pandemic. Malaysia is not the only country
(2017) the procurement process in construction sector which hugely affected by the pandemic as United State
start by plan forecasting and coordinate which require of America (USA) is also affected especially in term of
a clarification from other party. Once, the clarification time, cost, and resource availability and construction
and specification is done they will be sourcing and worker layoff. (Zamani, 2021; Esa, Ibrahim, & Kamal,
making decision on the maintenance, operations and 2020; Zin et al., 2021)
projects which will end with the agreement of the
contract and award that followed by purchasing order. The construction project had been delay which leads
The payment is finally done after the documentation is to the disruption of the construction planning and
finish and agreed by every party along with the manpower where project objectives cannot be
received material. achieved. (Zin et al., 2021). The challenges that

Case Study
2 SMK Kundasang, Sabah

LITERATURE REVIEW

construction industry have to face after the lockdown
continued as every activities must be done strictly follow
the SOP rule by the government. (Esa, Ibrahim, & Kamal,
2020) A research done by Zamani (2021) identified that
there several classification of delay severely affected
construction project which are critical delay, concurrent
delay, independent delay, non-excusable delay, and
excusable delay. According to the research report,
challenges face by construction player also able to identify
which are project timeline, manpower, logistics, project
payment, project cost, and decreasing number of project
during the pandemic.

Thus, the adjustment of the procurement system following
the new rules must be effectively fight against Covid-19
contagion and meets the objective of the system. (Sadiq &
Kessa, 2020) The enforcement of Covid-19 specific safety
measure and Standard Operational Procedure (SOP) must be
enforce in the occupational health and safety measures for
construction workers and must be practise by every parties
involve in the project. (Zin et al., 2021) The new
procurement system needed to be follow by the
construction player is to shorten the working hour off-site
and in-site. In addition, in purchasing stages there are
additional expenses which are the personal protective
equipment such as face mask, hand sanitizer and Covid-19
test kit. A new working method is also implemented by the
worker as they have to practise the physical distancing and
to avoid crowded space. (Esa, Ibrahim, & Kamal, 2020).

In conclusion, most of the improvement of procurement

system in the construction sector is located in the forecast

plan and coordinate, purchasing and operation stages

where they have to add the expenses of Covid-19 personal

protective equipment and the new working environment

that comply the standard operation procedure introduce by

the government. The addition of the Covid-19 regulations

into the procurement system not only enables for a

continuing of the construction industry but also reducing

the contagion of Covid-19 effectively. Plus, the emergency

procurement guideline helps in remove the restriction that

slow down the essential progress rate needed in the

construction and make use of the advance technology such

as the introduction of e-procurement system introduces by Case Study
SMK Kundasang, Sabah
the Malaysian Government . (Gbadamosi, 2020; Nawi et al.,

2017). 3

RESEARCH METHODOLODY

RESEARCH SETTING DATA COLLECTION

The research was conducted at three locations in METHODS
Malaysia which from Rantau Panjang Kelantan,
Sarawak and Kundasang Sabah. This research also The methods used in this data collection was structured
carried out by communicating with the interview style. This method was used because the
respondents through Google form with the respondents received or answered the same questions
questionnaire survey. This is because the research from the interviewer as for the answers will be
conducted in three different locations that the best different since the respondents involved in the different
choice to communicate with the respondents was projects. The google form distributed to the respondents
through Google form which it is much easier to to answer and all the data submitted to the interviewer.
gain information and it is the best method to do. The answers from the respondents used as the primary
The information was collected using the source of the data collection.
qualitative data collection strategy which is
structured interview where the respondents will DATA ANALYSIS
answer the same questions from the interviewer.
TECHNIQUES
STUDY POPULATION
The data collected was analyzed in the qualitative way,
The research was conducted with the Assistant which is by structured interview, purposive sampling,
Quantity Surveyor for these three projects which and primary source of data collections. Since all the data
is from Sarawak, Rantau Panjang, Kelantan and collected in form of texts from the questionnaire survey
Kundasang, Sabah. The number of respondents for through google form, contents analysis method was
this research is three respondents which is Miss used to analyze the qualitative data.
Nelmui Muhari, Mr Hazman and Miss Cerinna
Steve. CHOSEN CASE STUDY

SAMPLING METHOD Among the three respondents, only one respondent data
collected will be used for the report writting. Which is
Purposive sampling was used for this research. As from Miss Nelmui Muhari where she was involved in
for this research, there were only three the project of SMK Kundasang.
respondents selected to be interview with the
same questionnaire survey. These three

respondents involved in different projects. To
obtain data for this research, purposive sampling
was used.

Case Study
SMK Kundasang, Sabah
4

RESEARCH PROCESSES

QUESTIONNAIRE SURVEY

Case Study
SMK Kundasang, Sabah
5

SECTION A:
DEMOGRAPHIC PROFILE




Case Study
SMK Kundasang, Sabah
6

SECTION B: CONTENTS




Case Study
SMK Kundasang, Sabah
7

SECTION B: CONTENTS

Case Study
SMK Kundasang, Sabah
8

DATA ANALYSIS

CASE STUDY Case Study
SMK Kundasang, Sabah
SMK KUNDASANG,
SABAH

We have selected SMK, Kundasang,
Sabah as our primary case study. Below

are some brief info's about SMK
Kundasang :



SMK Kundasang was commenced on April
2021 during the COVID-19 pandemic
Kementerian Pendidikan Malaysia as the
client
Located at Kundasang, Sabah



Construction time : 30 Weeks



Due to rising cases of COVID-19 and
multiple lockdown happens on the year
2021, up to this days, the project has only
reach 5% work done which is site clearing
and just started the foundation activities

9

TYPES OF PROCUREMENT SYSTEM ADOPTED

The type of procurement system determines how the project would be managed. This is
because project uncertainty could be found in the way that projects are awarded and how
the construction project is managed into a system of contract. Procurement methods also
influenced the time performance of construction projects. Time would be affected by the
flow of project that was driven by different type of procurement system.

For our case study, SMK Kundasang, Sabah, the procurement system is by traditional
procurement system which is fixed-price contract. A fixed-price contract in construction is a
pricing method which sets a total established price upfront for all construction-related
activities undertaken during the lifetime of the project (Novotny, 2019). Fixed price contracts
are sometimes referred to as lump sum contracts and are usually seen as favorable in the
construction industry when there is a clear scope and defined schedule for the project
(Novotny, 2019). A fixed-price contract sets a total price for all construction-related activities
during a project. This contrasts with dynamic pricing approaches in which the agreement
allows the provider to adjust prices based on actual time and materials costs. Many fixed
price contracts include benefits for early termination and penalties for a late termination to
give the contractors incentives to ensure the project is completed on time and within scope.
Based on Ms Nelmui Muhari, the time of completion agreed on the contract for the
construction of SMK Kundasang are 30 weeks from April 2021. But due to the rising cases of
COVID-19 that hits Sabah on June 2021, the construction has to be stopped for a few months
causing cost overrun and contractor to claim extension of time from client.

Based on previous government high school's project, government has standardized the types
of procurement system used and it is the traditional procurement system which is fixed-price
contract, long even before the COVID-19 pandemic. This is because most of the government
high school's project has similar design and specifications which leads to the same type of
procurement system applied. In a nutshell, there is nothing much differences in terms of
types of procurement system adopted for school's projects before or during the COVID-19
pandemic.

Case Study
10 SMK Kundasang, Sabah

SELECTION OF CONTRACTOR IN
THE PROJECTS

There are several method in the selection of contractor in the project which is based on


tendering, and also the criteria of the contractors.

The selection of the type of the tender to be used in a project is depends on several factors
which is the size of the project, the location of the construction, an experience, the
suitability with the cost allocated, time and so on.

The tendering method consists of the following;

a. Open Tender

The open tender method is opened to any contractors that meets the requirements
specified in the tender advertisement. Open tenders are often practiced in the Malaysian
construction industry to select qualified contractors for implementing the project. The
tender price that has been submitted by the contractor, is the final price without any
negotiation with the client. There are advantages in using this tendering method which is
it gives an opportunity to all the contractors especially the new contractor to join the
tender so this will give an experience to them. The client also has the benefit which is can
select the most reasonable price offered by the contractor. The disadvantage of this type of
tender is it is not suitable for projects that require immediate completion because Open
tenders need a long process and they have a large number of contractors.

b. Selective Tender

This tendering method has fewer contractors to join the tender. This is because the
contractor has been invited by the clients. The contractors are selected based on the
experience and skills in a particular field. Selective tender reduce the risk of construction
failure since the contractor join this tender have a good experience and it also reduce the
cost of preparing tender documents. The disadvantage of this tender is not all the
contractors have opportunities to join this type of tender especially to the newly
contractor and less experienced contractor, because this type of tender needs experienced
contractors and skilled contractors.

Case Study
SMK Kundasang, Sabah

11

SELECTION OF CONTRACTOR IN THE
PROJECTS

c. Negotiation Tender

In Negotiation Tender, the client directly negotiates with one contractor that the client
believes is capable to carry out the project. In this type of tender normally, the client will
select or negotiate with a contractor who has a good background and has expertise in a
particular field. The client or client’s representative and the contractor will negotiate the
prices and rates until they agree with the tender prices. This tendering method may be
considered in circumstances when the project has to be started immediately and there is
not have time to do the open tender and selective tender. The advantage of this tender is it
saves time and money on the tendering process because it is directly negotiated with a
contractor.

d. Pre-qualification Tender

Pre-qualification Tender is quite similar to Open Tender. There is a difference between
Open Tender and Pre-qualification Tender which is only the contractor has a good
background selected in this tender, while open tender where all contractors have an equal
opportunity. The first stage of the pre-qualification tender is the client will publish the
invitation. The invitation normally through newspaper advertisement. The next stages are
the tender selection. In this stage, the process is to select the correct tender. Next stage,
evaluate the criteria of the contractor such as general experience, equipment capabilities,
financial position, personal capabilities and so on. Normally the required criteria will be
mentioned in the advertisement. The last stage is selecting a suitable applicant that
satisfies client requirements.

In our case study, the selection of contractors in the projects during the current situation
(Covid-19 pandemic) is through tender valuation in an open tender. The method of
selection contractors used in the current situation (Covid-19 pandemic) is the same as the
previous situation before the pandemic, but there is SOP to be followed when submitting
the tender. There are several stages in the evaluation procedure. First stages, the evaluator
will do preparation before start the evaluation process which is evaluator prepare the
summary of tender in ascending order based on the table prepared by the Tender Opening
Committee, prepare the tender analysis based on cut-off pricing, do check, and fill up
checklist for all of the Compulsory documents. Evaluator also chooses a list of contractors
to be evaluated, also obtains agreement from the tenderers and prepares an analysis of
percentage (%) of the price distribution.

Case Study
SMK Kundasang, Sabah



12

SELECTION OF CONTRACTOR IN THE
PROJECTS

In the second stage, there are four evaluation criteria which are analysis on compliance to tender,
in this criteria evaluator will check if the tender price stated in the form of tender or not, check
the Pusat Khidmat Kontraktor (PKK)/Construction Industry Development Board (CIDB)
registration still valid or not and so on. The second criteria are an analysis on the completeness of
tender. These criteria will be checked on mandatory tender documents such as a form of tender,
current bank statement included or not and other documents. The third criteria are analysis on
the adequacy of minimum capital and the fourth criteria are analysis on the performance of
current work which is these criteria to check there is no sick project in tenderers background.
Next, the third stage is to evaluate the financial capability of the tenderers, working experiences,
the machinery or plant owned by the contractor. The contractors that satisfy the client
requirement and all of the documents is completed, the contractor has a chance to be selected.

Case Study
SMK Kundasang, Sabah



13

TENDERING PROCEDURE

The procurement process for the Tender as outlined in the Tender Document is
referred to as the Tender Procedure. An invitation to bid on a project or accept a
formal offer, such as a takeover proposal, is known as a tender. Tendering is the
procedure by which governments and financial organisations solicit bids for
significant projects that must be completed within a specific time frame. Organizations
will look for other businesses to react to a certain demand, such as the supply of goods
and services, and will choose an offer or tender that meets their requirements and
offers the best value for money.
For our case study, SMK Kundasang, Sabah, the type of tendering opportunity is open
tendering. An open tender is the main tendering process in construction employed by
both the government and the private sector. The government or customer publishes a
tender offer in the local newspaper or media, outlining the proposal's details and
crucial facts, and encouraging interested contractors to tender.

Case Study
SMK Kundasang, Sabah
14

TENDERING PROCEDURE

1. Pre tender stage: 4. Tender opening and
evaluation process:
When a client has a concept for a project at the pre-
tender stage, the client will appoint a consultant to According to our case study, SMK Kundasang,
further explore the proposal. The consultant will Sabah, after all contractor have submitted the
perform their duties by providing advice, handling the tender document, KPM will inform consultant QS
tender and contract, and transferring the concept into to assist on tender valuation for KPM to make
a drawing. The client and consultants will be debating decisions on choosing the competent contractor to
the scope, completion time, and budget at this point. handle the project. This method has not altered
For our case study, the procedure for tendering for significantly with previous project, namely the
this stage there in no much change as before. SJKT project in Genting Highlands, Pahang.

2. Tender advertisement stage: 5. Tender award:

At this stage, The tender notice will be placed in the For this stage, each tender will be examined by
local newspaper. In the tender notice, the basic an evaluation panel, who will make
requirement that should be appearing are title of the recommendations as to which tender offers the
project, class of contractor, head, and subhead needed, best value for money. The tender administrator
location, date, and time to obtain the tender document, generates the tender results notification, which is
fees for tender documents, location, date, and time for in letter form, and then sends it to all
submission of tender doc. For our case study, the participating contractors once the final decision
contractor will purchase the tender at this step, and on the tender award has been made. While
the document will be in hard copy with the drawing meeting the project, only one or two
on CD. Within three weeks, the contractor must representatives from each department that are
submit the tender document. allowed to join every meeting since need to
maintain the social distances. This is different
During submitting the tender, contractor must follow between previous project there no limit of
the new norm and SOP due to the COVID-19 representatives the meeting.
pandemic. The previous project(SJKT Building,
Genting Highlands, Pahang) before the pandemic as
similar after pandemic because the contractor also
need to buy the tender and follow the due of time to
submit the tender document. The difference is, before
this there is no SOP's for contractors to obey
unlike now.

3. Closing the tender:

For this stage, the tender notice will be mention the Case Study
time and date of the tender closing process. This SMK Kundasang, Sabah
process as same as before the pandemic.

15

The Contract Use:

PWD: "For our case study, this
project use PWD form because
The Public Works Department of Malaysia (PWD) is
the government entity in charge of the PWD203A this project is a government
contract types. These are the typical forms of project. For previous project
contract based on bills of quantities (203A) generated
for use in both building and civil engineering SJKT, Genting Highlands,
contracts in the public sector or government projects. Pahang also used PWD form

PAM: for the contract"

The PAM Form of Contract is not a static document;
it is reviewed and updated on a regular basis to keep
up with the ever-changing environment in which it
operates. Let us not forget that the PAM Contract
2006 is a product of change and a development of the
previous PAM Form of Contract from 1998.

Case Study
SMK Kundasang, Sabah

16

CONTRACT PRICE STRATEGY

The contract price is the price of a contract that paid to the contractor when the project is
completed. There are several contract price strategies adopted in the construction industry in
Malaysia one of it is fixed price. Fixed price is also known as lump sum contract.

Lump sum contracts are contracts where the contract sum is known before work begins on site
and the contractor agrees to do a defined amount of work for a specific amount. This type of
contract is often based on bills of quantities and drawings and specifications. Lump sum contract
based on bills of quantities, the contractor agrees to carry out the work in accordance with the
drawings, specification and as described in the bills of quantities for a lump sum. The employer’s
quantities surveyor will prepare the bills of quantities based on the drawings and the contractor
will fill out and price the bills of quantities. While lump sum contracts based on drawings and
specifications are contracts in which the contractor agrees to complete the work described or
specified with an agreed lump sum price. The complete working drawings, with a full
description, are required for this contractual arrangement. There are no bills of quantities are
provided to the tenderers. The tenderers must prepare their own quantities from the drawings.
Any errors made in the taking off from the drawing are the tenderer's responsibility.

In our case study, the contract price strategy adopted during current situation (Covid-19
pandemic) is fixed price. However, the government has given contractors the chance to apply for
Variation of Price (VOP) due to fluctuation because of the pandemic. According to Kanagaraju
(2021) in the news article, The Edge Markets stated, Works Minister Datuk Seri Fadillah Yusof
said in a written reply to a Parliamentary question, the provision of VOP is intended to address
the rise in material costs during the Movement Control Order (MCO). This can help affected
contractors during pandemics in continuing or completing construction.

Case Study
SMK Kundasang, Sabah



17

CONCLUSION &
RECOMMENDATIONS

In conclusion, procudement system is an important guideline for every project where the system
will take part in determining the parties that involved in the project, activities in the project and
also the contract obligation. Procurement process is where project will be arrange to select the most
suitable and fulfill all the clients requirement and needs. Other than that procurement system also
will ease the communcation between the tradesman and supplier. Procurement system is a system
that have been develop to the development of construction industry especially when dealing with
the advance technology.

During this Covid-19 pandemic, there are many new things and rules have been introduce
especially in this project development and construction industry. Procurement systems also have
to do the adjustment due to avoid the loss and the difficulties in the project. In order to continue the
project, they need to follow all the new rules and regulation. This Covid-19 pandemic gives huge
impacts and changes in the construction industry and procurement system is one of the system
that faced the changes.

Basically, the purposes of this research is to find the changes faced by the parties that involved in
the construction industry also the comparison between the current project and previous project
that faced by the selected project through the research. As for this research, there were various
methods have been used in this research to fulfill the purpose of this study. Research methodology
that used in this research setting are through google form questionnaire regarding the research
purpose. The research was collected in three (3) different locations which is from Sarawak, Rantau
Panjang, Kelantan and Kundasang, Sabah. This research carried out by communicating with the
respondents through google form where it is the best choice to do the survey. The google form 's
link is distributed to the selected three respondents and only one respondent data is used for the
study case since some of the respondents does not answered all of the questions given. The
respondents have the same position in their working place which is as Assistant Quantity
surveyor, Miss Nelmui Muhari, Mr Hazman and Miss Cerinna Steve were the participants that
involved in this research.

As for the sampling method, the research used purposive sampling because the research select
three respondents to be interviewed, where the respondents involved in different types of projects.
Meanwhile for the data collection, this research used structured interview style method where all
the respondents answered the same questions. The answers from the respondents used as the
primary source of data collection. Most of the method used in this research were analyzed in the
qualitative way. In the questionnaire survey there are two sections which is section A for the
demographic profile and section B for the contents.

Case Study
SMK Kundasang, Sabah

18

The chosen data from the research, SMK Kundasang and data from Miss Nelmui Muhari has
been selected as the case study primary references. SMK Kundasang located at Kundasang,
Sabah. The project was commenced on April 2021 during the Covid-19 Pandemic and the project
is still undergoing, reaching only 5% work done. In every project, procurement system is the
guidelines to determines how the project will be managed. As in the case study, the project used
traditional procurement system, fixed price contract where it is also known as firm-price and
lump sum contract. The agreement involved two parties, where one party will provide the
service and other party will pay for the service works. Cost of the items or services will remain
fixed based on what stated in the tender, no matter how long it takes to complete the project.

Next, the procurement process for the tender used in the case study is open tendering. Open
tender basically the tendering process that employed by the government and the private sector.
The client or government will publishes the tender offer to the local through newspaper and
media with the proposal details of the project that help to encourage contractors to join the
tender. There are five stages of tendering procedure which starting from pre tender stage, tender
advertisement stage, closing the tender, tender opening and evaluation process and lastly tender
award. This five stages are the process to select the best value for money of tender document by
the contractor that join the tender.

Meanwhile for the contract, this case study use PWD form as the contract because the case study
is under government project. Due to the pandemic, government has given chances for the
contractor to apply for variation of price (VOP) for the service their do in the project.

Lastly, for the recommendations for this case study. Due to the Covid-19 Pandemic, there are
many aspects to focus and take precautions especially in the tendering process must be carefully
plan to avoid any loss due to the poor planning. The tender document from the contractors that
join the tender must be evaluate through any aspects and make sure the selected one is the best
for value money. Due to the Covid-19 Pandemic, there will be some changes and new rules will
be created in the process of tendering, so that public sectors, contractors and even private sectors
need to be more careful to avoid anything happens.

Case Study
SMK Kundasang, Sabah
19

REFERENCES

Ahamad N., (2020) “Construction Procurement in Industrialised Building System” IOP
Conference Series: Materials Science and Engineering 849 (2020) 012072 DOI:10.1088/1757-
899X/849/1/012072. Retrieved from: https://iopscience.iop.org/article/10.1088/1757-
899X/849/1/012072/meta

Ali, A.S. , Au-Yong, C.P. and Ling, S.C. (2014). Managing refurbishment projects through selection
of procurement system: The case of Malaysia. Retrieved from http://eprints.um.edu.my/11407/

Ar.Joseph T.M.H.(Jul 2018). PAM Contract 2006. Retrieved from:
http://www.pam.org.my/images/notes/2018/PAM_Contract_2006__Past_Present_Future_-
_07-2018.pdf

Bhushan M. (n.a.) Tendering process in construction/ types of tender/ tender meaning/ tender
procedure. Retrieved from: https://civiconcepts.com/blog/tendering-process-in-construction

Dithebe K., Aigbavboa C., & Oke A. E. (2018). “An Assessment of Construction Procurement

Systems for Public Urban Infrastructure Projects.” Creative Construction Conference (2018),

276-281. DOI:10.3311/CCC2018-037. Retrieved from:

https://www.researchgate.net/publication/329460772_An_assessment_of_construction_pro

curement_systems_for_public_urban_infrastructure_projects

Esa, M. B., Ibrahim, F. S. B., & Kamal, E. B. M. (2020). “Covid-19 pandemic lockdown: The
consequences towards project success in Malaysian construction industry.” City, 25, 2. DOI:
https://dx.doi.org/10.25046/aj0505119

Gbadamosi, A. Q., Oyedele, L., Olawale, O., & Abioye, S. (2020). “Offsite Construction for
Emergencies: A focus on Isolation Space Creation (ISC) measures for the COVID-19 pandemic.”
Progress in Disaster Science, 8, 100130. DOI: http://dx.doi.org/10.1016/j.pdisas.2020.100130

Goundar S. (2012) “ Research Methodology and Research Method ” IOP Conference Series:

Victoria University of Wellington DOI:

https://www.researchgate.net/publication/333015026. Retrieved

from:https://www.researchgate.net/publication/333015026_Chapter_3__Research_Methodol

ogy_and_Research_Method

20

REFERENCES

Igwenagu C. (2016). “ Fundamentals of Research Methodology and Data Collection” IOP Conference
Series: Enuge State University of Science and Technology DOI: 978-3-659-86884-9. Retrieved from:
https://www.researchgate.net/publication/303381524_Fundamentals_of_research_methodology_
and_data_collection

In Lump Sum Contracts Based On Bill Of Quantities The (n.d.) Retrieved from
https://www.coursehero.com/file/p3htn5/In-lump-sum-contracts-based-on-bill-of- quantities-
the-contractor-undertakes-to/

Kanagaraju,S. (2021)Variation Of Price On Select Building Materials Effective Till End- 2021.

Theedgemarkets.com. Retrieved from https://www.theedgemarkets.com/article/variation-

price-select-building-materials- effective-till-end2021

Kanagarathnam,A. (2017). Pre-Qualification Stages and Tender Selection. Slideshare. Retrieved

from https://www.slideshare.net/AnojanKanagarathnam/pre-qualification- stages-and-

tender-selection

Love, P. E., Ika, L., Matthews, J., & Fang, W. (2021). “Shared leadership, value and risks in large scale
transport projects: Re-calibrating procurement policy for post COVID-19.” Research in
Transportation Economics, 90, 100999. DOI: https://doi.org/10.1016/j.retrec.2020.100999

Nawi M. N. M., et al., (2017) “E-Procurement in Malaysian Construction Industry: Benefits and
Challenges in Implementation” International Journal of Supply Chain Management Vol. 6, No. 1,
March 2017. Retrieved from: http://repo.uum.edu.my/21949/

Novotny R. (2019). What is a fixed price contract in construction? Retrieved from
https://esub.com/blog/what-is-a-fixed-price-contract-in-construction/

Rahman,N. A. A. (2013). Tender Evaluation Procedure. Slideshare. Retrieved from
https://www.slideshare.net/ayushida/tender-evaluation-procedure

Rashid,I., Ismail,S., Mohamed,Z. and Saleh,A. L. (2018). Contractor Selection Criteria: A Study
on Malaysian Public Construction Projects. Retrieved from
https://www.sciencepubco.com/index.php/ijet/article/view/17471/7635

Sadiq, A. A., & Kessa, R. (2020). “US procurement in the age of COVID-19: challenges,
intergovernmental collaboration, and recommendations for improvement.” The American Review
of Public Administration, 50(6-7), 635-641. DOI: 10.1177/0275074020942060

21

REFERENCES

Saravanan S.(Sept 2016).Cost planning & tender procurement for new/extension SJKT building,
Genting Highlands, Pahang. Retrieved from:http://conference.tamilfoundation.org/2016/wp-
content/uploads/2017/05/PP-SJKT-SEPT-2016-.230916-Sr.-Saravanan-workshop-4.pdf
Will K.(Dec 2021).Tender definition. What is a tender. Retrieved from:
https://www.investopedia.com/terms/t/tender.asp
Williams,C. (n.d.). Lump Sum Contracts. Retrieved from https://c-link.com/blog/lump-sum-
contracts/
Zamani S. H., et al., (2021) “Effect of COVID-19 on building construction projects: Impact and
response mechanisms” IOP Conf. Ser.: Earth Environ. Sci. 682 012049 Retrieved from:
doi:10.1088/1755-1315/682/1/012049
Zin, S. M., et al., (2021). “A Proposed Pandemic Clause for Force Majeure Events under Construction
Contracts in Malaysia.” Environment-Behaviour Proceedings Journal, 6(16), 33-37. DOI:
https://doi.org/10.21834/ebpj.v6i16.2733

22


Click to View FlipBook Version