Group 5_Coursework 1_BQS559_AP2244I

CASE STUDY
REPORT

Contract Procurement System

2022

BQS559 -
PROFESSIONAL

PRACTICE II

Universiti Teknologi Mara
Shah Alam
Semester

Mac-August 22

PRESENTED TO
MADAM
NAQIYATUL
AMIRAH BINTI
MOHD SAID

PREPARED BY

IMAN RAIHAN BIN MOHAMMAD HAFIZ
SULAIMAN BIN AZLI

(2021483244) (2020846756)

SYED MUHAMMAD WAN MOHAMAD
NAIM BIN SYED MOHD HISYAM BIN WAN

ARIS YUNUS
(2021467676) (2021483438)

SOFEA HANIM BINTI
MOHD ZAKI
(2021482738)

BQS559 - PROFESSIONAL PRACTICE II

BQS559 - PROFESSIONAL PRACTICE
II

CONTENTS

04
INTRODUCTION

06
LITERATURE REVIEW

10
RESEARCH METHODOLOGY

13
DATA ANALYSIS

17
CONCLUSION

19
REFERENCES

21
APPENDICES

INTRODUCTION

1.0 INTRODUCTION

Malaysia's COVID-19 data indicate Project performance is greatly improved by
an increase since the end of February effectively managing and developing project
2019. All around Malaysia, there are teams and foreseeing the appearance of risks.
now several limitations in place, along Project performance is negatively impacted by
with social and physical segregation. It strained working relationships, and the project
has an effect on every industry sector, owner is crucial to the success of the project. An
including the building sector. It is interpersonal conflict brought on by
necessary to manage the building communication issues is another problem
resources during the current COVID-19 influencing project performance. The COVID-19
outbreak. When people are unable to era has shown that team management
work at any moment, it has an obvious communication and coordination using online
influence on the project they are platforms is the most important step to take.
working on.
Therefore, this research aims to explore the
The COVID-19 pandemic is
categorised as a force majeure event. current practice of the procurement system
Information regarding the handling of
force majeure is included in the practice in the Malaysian Construction Industry
contract instrument. A construction
work contract is an arrangement for during the pandemic. An appropriate
how Service Users and Service
Providers will cooperate. The comparison with the current procurement trend
performance of a project may suffer if
contract revisions are not and procedures with previous situation before
implemented properly. High inflation
or increased material prices, design the pandemic will shown.
changes made by the owner, flawed
designs, weather conditions, late
payments on contracts, and subpar
construction work are critical
elements that influence performance,
particularly the duration and expense
of the project.

Performance control during the
building phase is more reliant on
teamwork than on individual rivalry to
advance the project. Contract
modifications brought on by a
pandemic are anticipated to have little
negative effects on project
performance.

LITERATURE REVIEW

2.0 LITERATURE REVIEW

2.1 COVID-19 GIVES IMPACT TO CONSTRUCTION INDUSTRY

According to WHO, COVID-19 has confirmed as pandemic. The COVID-19
pandemic had a significant impact on the building sector in Malaysia, just like it
did on everything else. With the exception of projects deemed crucial or
necessary services, most construction work was halted under the Movement
Control Order (MCO). Even after the MCO was discontinued, interruptions to
contractors persisted, for example because tight standard operating
procedures on health and safety measures ("SOPs") were required for building
sites. Due to these interruptions, they have been unable to carry out their
regular responsibilities and have even had to come up with new ways to finish
the project.

2.2 PARTICIPANTS CHALLENGE TO PROCUREMENT SYSTEM

The participants deal with issues including market accessibility, border
closures, and government cooperation. The day-to-day operations of ongoing
projects across all industries are also managed by procurement specialists, who
now have to deal with pandemic-related challenges like disrupted supply
chains, workers who are unable to report to work, and barriers and delays at
borders that affect suppliers and contractors' ability to carry out the contract.
Vinay S. (2021) said that, the majority of procurement professionals are located
in nations where the World Bank currently mandates working remotely.
Coordination with other project team members and implementation units has
delayed as a result.

Participants in the project who were in charge of acquiring supplies and
equipment made an effort to limit harm to the supply chain. Based on Daniels
et al. (2020), in order to avoid or minimise delays, contractors and suppliers are
recommended to actively seek for alternative sources of commodities,
products, materials, tools, and equipment.

2.0 LITERATURE REVIEW

The efficiency of the construction procurement process is restricted or limited
by constraints. Construction sector development will be hampered by
inefficient construction procurement, which will have an impact on output
(Turin et al, 1973). The following issues, such as the absence, insufficiency, or
improper use of resources, functions, or institutions, can all have an impact on
the procurement process. They can be present alone or in combination (Ofori et
al, 1980). According to Wang et al. (1991), efficient supply chains and important
resources are necessary for successful and efficient construction procurement.

In the Malaysian context, an efficient and effective construction procurement
process requires inputs such as Adequate supply of qualified and experienced
technical manpower, Adequate supply of skilled, semi-skilled, and non-skilled
workers, Adequate and timely supply of materials, Supply of plant, Adequate
and timely equipment and tools, Availability of land for construction purposes,
Reduction of needless red tape, and Artificial Administrative Barriers are some
examples.

2.3 THE CHARACTERISTICS OF THE PROCUREMENT SYSTEM

It's crucial to manage and maintain a solid connection with contractors as well
as to satisfy the demands of all internal clients. Teams in charge of procurement
must possess the required skills, procedures, and technology. Kathrin F. et al
(2020) said that the procurement process needs to be fast, transparent and
impactful. Participants' workloads may be reduced so they can concentrate on
the big picture by defining transparent strategies, investing in staff
competencies, and incorporating automation into processes.

2.0 LITERATURE REVIEW

2.4 PROCUREMENT SYSTEM USED IN MALAYSIA

Design and construction processes are becoming more integrated in more
contemporary construction procurement styles; sources of funding, particularly
for public projects, are no longer limited to the clients and/or their financiers but
have been expanded to include end users and private investors under the
concepts of Public Private Partnerships (PPPs), Private Financial Initiatives (PFI),
and Privatization. This new method, known as Life Cycle Costing (LCC), focuses
on the total cost of a built facility that is spent over its lifetime. Contracts for a
built facility may be for 20–60 years, and they may include financing, repayment
and revenue generation, design and construction, commissioning and
completion, maintenance and management of completed facilities, service
delivery, overhaul, handover, and possibly even demolition and reconstruction
(Khairuddin, 2013). The three most important systems of procurement in Malaysia
are traditional or Design-Bid-Build (DBB), Design and Build (D&B) or Turnkey, and
Management Contracting. When we use the word dominant, we mean that they
are the most commonly employed (MC).

RESEARCH
METHODOLOGY

3.0 RESEARCH METHODOLOGY

The methods that may be applied in research methodology are
qualitative and quantitative, as was already mentioned. First and
foremost, collected and analysed for qualitative research are textual data
as well as spoken or written words. It may also focus on body language
or visual elements to give a full summary of the researcher's
observations. Researchers often gather qualitative data through focus
groups, observation, and interviews with a limited number of carefully
chosen people. Similar to using quantitative data, this research
technique is labor-intensive and subjective. When doing exploratory
research, researchers typically opt for a qualitative methodology. For
instance, when someone wants to conduct research to find out what
other people think about a particular person, event, or object.




While researchers frequently use a quantitative method when the goal of
the study is to prove anything. Its main objectives are the collection,
examination, and measurement of statistical data, frequently from a
substantial sample of individuals. After then, the data were subjected to
statistical comparisons and analysis. Surveys, questionnaires, data banks,
and other methods are frequently used to collect quantitative data. This
is because the study method is objective and typically quicker since
researchers apply software to analyse data. Researchers may use a
quantitative approach, for instance, to test several hypotheses or
measure the connection between two variables.

3.0 RESEARCH METHODOLOGY

In this study, a quantitative approach has been chosen to investigate the
procurement process for a specific building project during the Covid-19
epidemic. Since a questionnaire is the best way to gather information on
construction businesses and the respondent will be someone involved in
the procurement tendering process, one has been created. The
information gathered from the questionnaire will be used as the primary
source of information to support any scenarios that might arise during
the bidding process in this pandemic event. This questionnaire has been
created using Google Form Medium, which can be accessed online and
makes it simple for people to fill out all the questions there, in order to
accomplish the target from respondents. Online surveys are very helpful,
not only because they take up less space than paper ones but also
because they make it easier for construction workers to exchange the
results owing to movement control orders, also known as (MCO). There
are already 12 responses who have worked together to cooperatively
answer all of the platform's questions. Seven of them are respondents
from the quantity surveying firm, four are from contractors, and one is a
developer.

In addition, there are certain data that may be gathered relevant to the
primary issue, which is the procurement system during Covid-19, based
on the case study project "PEMBAIKAN CERUN RUNTUH JALAN
SEKAKAP (J181) SEKSYEN 2.0, MERSING, JOHOR. One of these is the
handling of tender papers; for this project, contractors were engaged,
and the tender materials were submitted via a CD player. This is as a
result of the Covid-19 epidemic forcing the closure of several bookshops.
The government, Jabatan Kerja Raya (JKR), has found it challenging to
submit tender paperwork in the conventional manner since they are
often printed at the local bookshop. Additionally, the epidemic has
restricted employee access to the workplace, which has increased
workload. Because there aren't enough workers for the division, this has
created delays in the compilation of paper tender papers.

DATA ANALYSIS

4.0 DATA ANALYSIS Contract Period

CASE STUDY 9 Months

Name of Project Contract Sum

PROPOSED CONSTRUCTION AND RM 8,570,181.52
COMPLETION OF 1 UNIT OF TW O-
STOREY SALES OFFICE AND GALLERY Contract Form
CENTRE AND 1 UNIT OF GUARD
HOUSE INCLUDING ASSOCIATED W 1) Private Edition with Quantities,
ORKS ON PART OF LOT 27999, 1998
MUKIM DENGKIL, DAERAH SEPANG, 2) Addendum: PAM Contract 1998
SELANGOR DARUL EHSAN FOR with Quantities
MESSRS. SIME DARBY SERENIA
DEVELOPMENT SDN BHD Contract Pricing Strategy

Method Procurement Not mentioned inside the contract
System document

Traditional System - Selective Cover
Tendering Page of

Parties Involved the
Contract
Civil & Structural Engineer Document
Perunding Juruwas Sdn. Bhd.

Mechanical & Electrical Engineer
Perunding Juruwas Sdn. Bhd.

Architect
Arkitek Kitas Sdn.

Landscape Architect
Site Link (M) Sdn. Bhd.

Quantity Surveyor
Hashim dan Lim Sdn. Bhd.

Employer Form 1
Form 2
Sime Darby Serenia Development
Sdn. Bhd.

Main Contractor

Pembinaan Daya Teguh Sdn. Bhd.

4.0 DATA ANALYSIS

BEFORE COVID-19

Modeled after the UK procurement system (Jaafar and Aziz 2009; CIDB 2009),
Malaysia practices traditional procurement systems primarily used by the public
and private sectors to develop projects. Since the 1990s, Malaysia has adopted a
new procurement system to meet the increasing number of project
implementations and the complexity of construction requirements and mega-
infrastructure projects to support the country's growth (Rashid et al. 2006). The
introduction of various "quick" project procurement systems is an industry attempt
to make better bids for customers or customers when they begin to see the "cost
performance" of a project in terms of cost, time, and quality (Rashid et al., 2006). In
general, Malaysia's construction industry has three types of procurement systems:
traditional, design and build, and management (Hashim et al., 2006; Rashid et al.,
2006; Seng, 2006; Ismail al., 2006; Adnan et al., 2008).

1) Traditional System
This method has been used for a long time and is called "traditional" because it has
been the only option available to most construction industry customers for many
years. In this method, the client concludes a contract with a planning consultant
(architect or engineer) for the actual execution of the planning work and the
creation of the contract. At the completion of this phase, the contractor will be
appointed based on the owner's criteria and the owner will conclude a contract
with a successful contractor to assemble the project elements. Basically, the
customer has two contractual obligations. It's a design expert and a contractor. Bids
for this type of procurement system are obtained using one of three methods for
the customer to receive the built facility:

a)Open Tendering - The process of allowing virtually all contractors to submit
tenders for work.
b)Selective Tendering - It consists of clients preparing a candidate list of contractors
known to have the appropriate qualifications to do enough work
c)Negotiated Tendering - This method is used in a variety of situations, but basically
the client receives the tender by asking a single contractor who chooses to submit a
tender for a particular project.

4.0 DATA ANALYSIS

2) Design and Build System
D & B contracts are implemented in different ways depending on the type of
project. However, Malaysian procurement methods are designed to adhere to
industry practices and the skills of local practitioners. From a suitability standpoint,
D & B is relatively suitable for large, complex, and specialized projects. In this
package transaction, the contractor is responsible for the entire project.
Nevertheless, customers are demanding more and more remarks in their designs.
This entails more risk for the contractor. In addition to one-point responsibility, the
D & B procurement method is increasingly fixed in cost and completion time. This
means that the client knows all the financial commitments of the project early on.
This method certainly provides a better chance for the client to complete the
project within budget. Cost is the number one consideration that impacts the
adoption of the D & B method.

3) Management-oriented System
In a management-oriented procurement system, project management is

performed by an organization that works with designers and other consultants to
create designs and manage the physical operations performed by contractors. To
use the systems in this category, the customer needs to be involved in the project
rather than using the other methods mentioned before.

DURING COVID-19

e-Tendering
The traditional tendering process requires that the tenderer give the client
a physical copy of the tender. The tenderers, however, were unable to
submit hardcopies to the client firm during Covid-19 because of MCO.
The tenderer may thus submit the tender in softcopy. On the other hand,
e-tendering, also known as electronic tendering that has developed over
the past 10 years from dial-up to current computer connectivity to a more
complete internet-based tendering system.
E-tendering is a method that enables tenderers to obtain entire tender
papers electronically, download them, and submit payment without using
paper.
E-tendering may also guarantee that all tender price papers are backup on
remote servers and securely saved online.

CONCLUSION

5.0 CONCLUSION

From the results of the questionnaire
data analysis, the following
conclusions were obtained:

The implementation of
construction contracts at every
stage of the work and stakeholders
has been significantly impacted by
the COVID-19 pandemic, even
though the majority of
construction projects were still in
progress during that time.

The planning stage is the most
affected stage, where the
consultant and owner are the most
affected parties, especially the
impact on-time performance.

The scheduling of subcontractors

and the supply of products and

materials have both been

interrupted by COVID-19's spread

and are expected to remain

disrupted. Based on the

pandemic's effects on their own

internal workforces and facility

management problems,

manufacturing and production

facilities are likely to be affected.

The largest issue with project
implementation is the delay in
project completion brought on by
labour issues and the challenge of
putting the COVID 19 protocol into
practise due to the capability of
human resources.

The COVID Task Force Team must
provide technical guidance so that
the health protocol may be
appropriately applied in the field
and prevent construction sites
from serving as hubs for the COVID
19 virus's spreading.

REFERENCES

Sharma, V. (2020, April 15). COVID-19 Challenges and Response: How

procurement underpins the World Bank’s response to the pandemic. World

Bank Blogs. Retrieved June 27, 2022, from

https://blogs.worldbank.org/voices/covid-19-challenges-and-response-how-

procurement-underpins-world-banks-response-pandemic

ireditor. (2020, September 24). Types of Procurement in the Construction

Industry, Procurement Process. SpendEdge. Retrieved June 28, 2022, from

https://www.spendedge.com/blogs/types-procurement-construction-

industry

Kingwah, L. (2021, March 25). The impact of the covid-19 pandemic, and the

challenges faced by contractors in Malaysia. Driver Group Plc. Retrieved

June 28, 2022, from https://www.driver-group.com/en/asia-

pacific/news/covid-19-contractors-malaysia

Michael, M. (2020, September 9). Three Characteristics of Successful

Procurement Management. Maveninsight. Retrieved June 28, 2022, from

https://maveninsights.com/portfolio-item/three-characteristics-of-

successful-procurement-management/

CIDB (2009). Malaysia Country Report, The International Conference 2010,

Housing and Real Estate Market Development – Worldwide Experience and

Options for Vietnam.central steering committee for housing and real estate

market policy The International Conference 26th – 28th November 2010

Hanoi, Vietnam (http://www.asiaconst.com/past_conference/

conference/16th/6.Malaysia.pdf.)

Ismail, D., Zin, I. D. R. M., and Latif, H. M. (2006). Services Provided by Project

Management Consultant in Malaysian Construction Industry. Organizing

Committee International Conference in the Built Environment in the 21st

Century (ICiBE 2006),13-15 June, Shah Alam, Malaysia, pp 267-276

Jaafar, M. and Aziz, A.R.A. (2009), Procurement Reform in Public Sector

Governance: A Timely Necessity.” The Malaysian Surveyor, The Institution of

Surveyors Malaysia.44. (2): 25-29.

Rashid, R. A., Taib, I. M., Ahmad, W. B. W., Nasid, M. A., Ali, W. N. W., and

Zainordin, Z. M. (2006). Effect of Procurement Systems on the Performance

of Construction Projects, In: International Conference on Construction

Industry: Toward Innovative Approach in Construction and Property

Development, Padang21-24June.

Seng, N. W., and Yusof, A. M. (2006). The Success Factors of Design and Build

Procurement Method: a Literature Visit. Paper presented at the Asia-Pacific

Structural Engineering and Construction Conference (APSEC 2006), Kuala

Lumpur, Malaysia, 5-6 September.

BQS559 - PROFESSIONAL PRACTICE II

REFERENCES

Hashim, M., Chan, M. Y. L., Ng, C. Y., Ng, S. H., Shim, M. H., and Tay, L. Y. (2006)
Factors influencing the selection of procurement systems by clients, In
International Conference on Construction Industry. Padang, Indonesia, 21
June – 25 June.
Jaafar, M., and Abdelsalam, S. M. A. (2012). Procurement Contract: Exploring
the Principle and Issue in the Malaysia Construction Industry. Quantity
Surveying Department, Universiti Sains Malaysia Penang
Ramanathan, C. T. and Narayan S. (2016). Project Procurement Methods and
Success of Infrastructure Projects in Malaysia. Department of CSE, MCA &CE,
Mohandas College of Engineering and Technology, Thiruvananthapuram,
Kerala, India.



BQS559 - PROFESSIONAL PRACTICE II

APPENDICES

Appendix 1: Instruction to Tenderers

BQS559 - PROFESSIONAL PRACTICE II

I

Part

INSTRUCTIONS TO TENDERERS

(

INSTRUCTIONS TO TENDERERS

1. GENERAL

T hese In stru ctio n s to T en d erers, in so far as th ey m ay affect th e execution of the
Contract, shall be deem ed to form p art of the Contract.

2. QUALIFIED TEN D ERER S

Only th o se C o n tracto rs w h o are qualified to te n d e r are eligible to te n d e r by w ay
of an invitation letter to te n d e r from the Em ployer.

3. T E N D ER DOCUM ENTS AND FEES

U pon p a y m e n t of the D o cu m en tatio n Fee (N o n -refu n d ab le to all T en d e rers),
T e n d e r D o cu m en ts will be issued to each T e n d e re r w hich co m p rise of the

following:-

SECTION A - COMMERCIAL PROPOSAL

Part 1 Declaration by Non-Collusion
Part 2 Declaration by Contractor on Sufficiency of Workers
Part 3 Vendor's Letter of Declaration
Part 4 Introduction
Part 5 Instructions to Tenderers
Part 6 Conditions of Tendering
Part 7 Form ofTender
Part 8 Final Summary ofTender
Part 9 Conditions of Buildine Contract
Agreement and Conditions of Building Contract
Part 10
Part 11 (Private Edition With Quantities, Edition 1998)
Addendum to Articles of Agreement and Conditions of PAM Contract 1998

(With Quantities)
Bills of Quantities
Appendices

Part 1 SECTION B - TECHNICAL PROPOSAL
Part 2
Part 3 Introduction to Technical Proposal
Part 4 Tenderer's Particular for Tender Assessment and Technical Data
Part 5 Safety and Health Regulations for Project Site
Part 6 Safe Work Practices
Part 7 Safety and Health Management Plan Guideline
Part 8 Environmental Management System
Environmental Management Plan
Part 9 Quality Assessment System in Construction (QLASSIC) Guideline and
Requirements
Specification

T e n d e re rs will be p ro v id ed w ith one (1) set of the above d o cu m en ts.

H&L/1141(R) A/l

INSTRUCTIONS TO TENDERERS

T E N D E R D O C U M E N T S A N D FEES (C O N T ’D)

T he T e n d e r D o cu m en ts m ay be obtained from th e office of Sim e D arby S erenia
D e v e l o p m e n t S d n . B h d ., 8 th F lo o r , B lo c k G, N o. 2, J a l a n PJU 1 A / 7 A , A r a D a m a n s a r a ,
PJU 1A, 4 7 3 0 1 PETA LIN G JAYA, S e l a n g o r D a ru l E h s a n u p o n p a y m e n t o f t h e
relev an t charges during w orking hours as follows:-

M onday to Friday - 9.00 am to 1.00 pm
2.00 pm to 5.00 pm

All p a y m e n t s s h a l l b e in t h e f o r m o f B a n k e r ' s D r a f t o n l y m a d e p a y a b l e t o SIME
DARBY SERENIA DEVELOPMENT SDN. BHD., a n d c r o s s e d " A cco u n t P a y e e

Only". P erso n al ch e q u es will n o t be accepted.

4. T E N D E R T A B L E DOCUMENTS

T ender Table D ocum ents m ay be inspected during norm al w orking hours at the
office of Sim e D arby S erenia D ev elo p m en t Sdn. Bhd., an d th e office of th e
Q uantity Surveyor.

5. SUBM ISSIO N OF T E N D E R

The T en d e r D ocum ents shall be duly com pleted, enclosed and sealed in se p a ra te
envelopes bearing no identification of the T enderers on the outside. The sealed
envelope shall be m arked on top right hand co rn er w ith the follow ing caption:-

'PROPOSED CONSTRUCTION AND COMPLETION OF 1 UNIT OF TWO-STOREY
SALES OFFICE AND GALLERY CENTRE AND 1 UNIT OF GUARD HOUSE
INCLUDING ASSOCIATED WORKS ON PART OF LOT 27999, MUKIM DENGKIL,
DAERAH SEPANG, SELANGOR DARUL EHSAN FOR MESSRS. SIME DARBY
SERENIA DEVELOPMENT SDN. BHD.’

E ach e n v e l o p e sh a ll b e m a r k e d " C o m m e rc ia l P r o p o s a l" a n d " T e c h n ic a l P r o p o s a l ”.
The envelopes are to be tied to g eth er during subm ission and delivered by hand
or sen t by p rep aid registered post ad d ressed to Sime D arby Serenia D evelopm ent
S d n . B h d ., T e n d e r R o o m , 1 st F lo o r , B l o c k G, N o. 2, J a l a n PJU 1 A / 7 A , A r a
D a m a n s a r a , PJU 1A, 4 7 3 0 1 PETALING JAYA, S e la n g o r D a ru l E h s a n to r e a c h n o t
later th an th e tim e an d d a te as stip u la te d in th e le tte r of inv itatio n to ten d er.

Any ten d er delivered after the stipulated tim e and date for w hatever cause or
reason arising shall be disqualified. N otw ithstanding the above, the Em ployer
shall in no w ay be held liable for any loss o r late te n d e r su b m itted . P roof of
p o stin g will n o t be accep ted as evidence for th e su b m issio n of the tender.

H&L/1141(R) A/2

INSTRUCTIONS TO TENDERERS

6. TEN D ER BOND

In o rd e r to sec u re th e due p erfo rm an ce by th e T e n d e re r of obligations
u n d e rta k e n by him in his ten d er, a T e n d e r B ond m u st be su b m itte d to g e th e r w ith
th e T ender. T he T e n d e r Bond shall be m ad e in th e form of a B anker's cheque
from a B ank o p e ra tin g in M alaysia. B anker's c h e q u e shall be m a d e in favour of

'SIME DARBY SERENIA DEVELOPMENT SDN. BHD.’ a n d c r o s s e d " A c c o u n t

Payee Only”.

Any T e n d e r n o t accom panied by the T en d er Bond will be disqualified.

If a n y T e n d e r e r shall:-

(a) w ith d ra w his te n d e r before the expiry of the T e n d e r Validity
Period or any extended period thereof; or

(b) im p o se d ad d itio n al term s, co n d itio n s o r stip u la tio n s afte r th e final
d ate fixed for the su b m issio n of te n d e rs (in w hich case it shall be
deem ed to be a w ithdraw al of this tender); or

(c) in th e e v e n t th e t e n d e r h a v in g b e e n a c c e p te d , re fu s e d a n d fail to
execute the formal C ontract A greem ent or to deposit the
P e rfo rm a n c e Bond o r fails to p ro c eed w ith th e W orks;

th e n , in a n y o f s u c h e v e n ts , th e E m p lo y er, w ith o u t p re ju d ic e to a n y o th e r right, it
m ay possess, shall forfeit the T en d er Bond.

T h e T e n d e r B o n d sh all r e m a in valid th r o u g h o u t th e t e n d e r v a lid ity p e r io d (i.e. a
total perio d of o n e h u n d re d and tw e n ty (120) days) an d shall be re tain ed until its
expiry or until such earlier tim e as a ten d er shall have been definitely accepted,
th e r e a f te r th e T e n d e r B ond shall be re fu n d e d in full to th e u n su cc essfu l
T en d erers. In the case of the successful T e n d e re r the T e n d e r B ond shall be
re ta in ed until th e P erfo rm an ce Bond referred to in th e C onditions of C ontract has
been deposited and the formal C ontract A greem ent duly executed. The T ender
Bond of the successful T en d erer shall only be released upon acceptance of
P erform ance Bond by the Em ployer.

It is to b e n o te d th a t th e E m p lo y e r's in te r e s t in th e T e n d e r B o n d so re ta in e d shall
be fiduciary as tru ste e for the T enderer. The a m o u n t so retain ed shall not earn
an y in te re s ts w ith in th e w ith h o ld in g p erio d a n d th e E m p lo y e r is also n o t obliged
to in v est th e re ta in e d a m o u n t in w h a ts o e v e r m an n er.

H&L/1141(R) A/3

INSTRUCTIONS TO TENDERERS

7. TEN D E R E R TO OBTAIN ALL IN FO R M A TIO N /SITE EXAMINATION

T h e T e n d e r e r s h a l l a r r a n g e w i t h t h e P r o j e c t M a n a g e r o f SIME DARBY SERENIA
DEVELOPMENT SDN. BHD., w h o s h a ll p e r m i t h i m t o h a v e a c c e s s to t h e s i t e f o r

site exam ination and inquiries. Such exam ination and inquiries shall be at the
T e n d e r e r ’s o w n c o s t . N o c l a i m s w ill b e e n t e r t a i n e d o n t h e g r o u n d s o f i n a d e q u a t e
inform ation or ignorance of site conditions.

T en d erers m ay seek inform ation and docum ents from C onsultant's
Q .S./A rchitect's office.

8. IN TERPR ETA TIO N OF TEN D ER DOCUMENTS

T h e T e n d e r e r is d e e m e d to h a v e fully u n d e r s to o d th e m e a n in g a n d in te n t o f th e
te n d e r d o c u m e n ts. If a n y T e n d e re r is in d o u b t as to th e tru e m e a n in g of a n y p a rt
of the T en d er D ocum ents, he should at once notify the Q uantity Surveyor:-

HASHIM DAN LIM SDN. BHD.,

N o. 8 7 & 8 9 , 3 rd & 4 th F lo o r ,
Jalan Ipoh,
512 0 0 KUALA LUMPUR.

Tel. No.: 03-4042 2077/8033
Fax No.: 03-4042 8689

not less th an ten (10) calendar days prior to th e subm ission of T enders and
re q u est clarification before subm itting his T ender. In terp retatio n s of the T ender
D o c u m e n ts will be valid if m a d e b y form al A d d e n d a by th e Q u a n tity S u rv ey o r as
d escrib ed in C lause 8 hereof.

T he T e n d e re r shall check the T en d e r D ocum ents and refer, in w riting, to the
Q uantity Surveyor for any m issing draw ings, pages or duplications.

If n o c o m m u n ic a tio n is re c e iv e d b y th e Q u a n tity S u rv e y o r, it w ill b e d e e m e d th a t
th e T e n d e r D o cu m en ts are in o rd e r and the T e n d e re r has fully u n d e rsto o d their
m e an in g a n d intent. No claim s for extra p ay m e n t in this re sp ect will be
entertained.

The T en d er D ocum ents shall not be detached one from the o th er and no
u n au th o riz ed alteratio n shall be m ad e in any of the docum ents.

H&L/1141(R) A/4

INSTRUCTIONS TO TENDERERS

9. ADDENDA

A ddenda m ay be issued during the ten d er period up to seven (7) calendar days
p rio r to the date for subm ission of T enders to clarify or m odify the T ender
D o cu m en ts in p a rt o r in total. E very A d d e n d u m issu ed will be d istrib u te d to each
T en d e rer and shall becom e p art of the T en d er D ocum ents. Receipt of each
A ddendum m ust be acknow ledged on the form issued w ith the A ddendum and
m u st be su b m itted to g eth er w ith the Form of T ender. Failure to acknow ledge
any A ddendum m ay re n d er the T ender being rejected.

10. ORAL INTERPRETATIONS

Oral in terp re tatio n s of any of the T en d er D ocum ents re q u ested and received by
any T en d e rer shall n ot be considered to m odify any of the provisions of the
T ender D ocum ents. Any clarification or m odification to any of the T ender
D o c u m e n ts shall be m a d e in w ritin g in th e fo rm o f A d d e n d a as specified in Clause
8 hereof.

11. STANDARD OF W ORKM ANSHIP AND MATERIALS

All w o r k m a n s h i p , m a t e r ia ls a n d c o m p o n e n t s t h r o u g h o u t sh a ll c o m p ly w ith
either:-

(a) T he relev an t M alaysian or British S tan d ard or Code of Practice
cu rren t on the date of closing Tender, or

(b) O ther stan d ard s or Codes of Practice p ro p o sed by the T en d erer
providing that those S tandards or Codes of Practice are equivalent
o r su p erio r to the relev an t British S tan d ard o r Code and th at tw o
(2) copies in English of each S tan d ard an d Code of Practice shall be
provided by the T enderer w ith the Tender.

12. EXECUTION OF TENDERS

T he T e n d e r m u st be signed o r sealed or o th e rw ise ex e cu ted in such m a n n e r th a t
it shall be b in d in g on th e T e n d e re rs if accep ted . T e n d e rs n o t p ro p e rly ex ecu ted
m ay be rejected.

The signatory of the T en d er D ocum ents shall be the C ontractor or the duly
authorized representative of the Company.

W here applicable, P ow er of A ttorney or certified copies th ereo f granting
au th o rity to sign shall be en d o rsed w ith each T ender.

H&L/1141(R) A/5

INSTRUCTIONS TO TENDERERS

13. THE TENDER

The T e n d e re r is req u ire d to com plete all of the T en d e r D ocum ents including:-

(a] The Bills of Quantities; S um m ary and Final S um m ary of T ender
with every item legibly priced in ink and with the am ount added up
to the Tender Sum.

(b) "Power of Attorney” Affidavits together with M emorandum and
Articles of Association and any other docum ents necessary to
authenticate his Tender.

W here docum ents to be signed by the T en d erer extend for m ore than one [1]
page of the individual forms, it shall be initialed by the Tenderer.

The Tenderer shall submit with his tender such drawings, information and data
as may be called for in the Tender Documents and shall complete the Appendices
as required. No ten d er will be considered unless the said items are submitted
and completed.

If requested by the Architect the T en d e rer shall subm it any further information
which may be considered necessary to clarify the tender.

14. FIXED COMPLETION TIME

The completion time stated on the Form of Tender shall be the gross time
available for completion of the Works. The Tenderer shall note that within this
completion tim e he shall com plete all the building and external works, liaise with
the relevant Authorities to take possession of and install the w ater and electrical
m eters and co n n ec t all services. The Em ployer shall pay all fees and deposits
towards the obtaining of meters. The Contractor shall arrange for the early
inspection of the services by the relevant Authorities to facilitate the installation
of m e ters (w h e re applicable) and pay all fees and charges in connection with
such inspection and testing.

Tenderers are required to price and complete the Form of Tender and the prices
in the Bills of Q uantities, S um m ary of T e n d e r and all rates given in the Document
shall be based on the Employer's fixed completion period.

Completion of th e W orks w ithin th e E m ployer's fixed com pletion tim e of Nine
(9) Months co m p rises the com pletion of th e Building and Main Infrastructure

Works.

H&L/1141(R) A/6

INSTRUCTIONS TO TENDERERS

15. BRIBERY

The offer of a bribe or o th er d o cu m en t to any p erso n w ith the view of influencing
th e placing of th e C ontract will result in the in stan t rejection of the T en d e r and
th e E m p lo y e r r e s e r v e s h is rig h t to a n y o th e r r e m e d y a n d a c tio n h e s e e s fit.

16. PERFORMANCE BOND

T he successful T e n d e re r will be req u ired to su b m it the P erfo rm an ce Bond
eq u iv alen t to five p e r cent (5% ) of the C ontract Price in th e form of a Bank
G uarantee before the com m encem ent of any w o rk u n d er the Contract. The
issu a n c e o f th e P e rfo rm a n c e B ond is a co n d itio n p re c e d e n t to th e C ontract.

17. ADVANCE PAYMENT

T he successful T e n d e re r shall not be entitled to any advance p ay m en t by the
Em ployer.

18. CURRENCY OF BID AND PAYMENT

Prices q u o ted in th e T e n d e r an d p a y m e n t shall be in Ringgit M alaysia.

19. INSURANCES

All i n s u r a n c e s s h a ll b e p u r c h a s e d t h r o u g h Sime Darby Lockton Insurance
Brokers Sdn. Bhd. ( C o n t a c t N o . : 0 3 - 2 7 7 2 2 0 0 0 ) . All p r e m i u m s s h a l l b e b o r n e b y

the Contractor.

20. STAMP DUTY

T e n d e re r shall a rra n g e for th e C o n tract D o c u m e n ts a n d NSC C o n tract D o c u m e n ts
to b e s ta m p e d a n d shall b e a r all th e e x p e n se s in re s p e c t to th e s ta m p in g of th e
Contract betw een him and the Em ployer and betw een him and the N om inated
Sub-C ontractor.

H&L/1141(R) A/7

THE END