CONTRACT & ESTIMATING

Hasliza binti Yusof

1.0 The Construction Industry In General
2.0 The Tender Procedure
3.0 The Contract Procedure
4.0 Standard Form of Contract P.W.D FORM 203/ 203A
5.0 The Preliminary Estimating Method
6.0 The Build-up Rate Method
7.0 The Quantity Measurement

With the name of Allah SWT

A special thanks to all member of Civil Engineering Department (DKA) for
their support in completing this E-book. This E-book was originally written to

cater for diploma students in polytechnic and other institutions of higher
learning. Hopefully this E-book will bring much benefit and helping students to

gain better understanding of the course needed.

CHAPTER 1:
THE CONSTRUCTION
INDUSTRY IN GENERAL

The Construction Industry In General

i. Introduction
ii. Construction activities/stage involved
iii. The roles of :

- Design Team Members
- Construction Team Members
iv. The roles of PKK & CIDB

Introduction

 The definition of Construction Industries is industry that
comprises construction and civil works.(preparation of
land, repair of building, structure and others)

 Areas of works

i. Building work
ii. Civil engineering
iii. Mechanical
iv. Water supply
v. Electrical
vi. Quarries
vii. Telecommunication and others.

Types of work (refer CIDB)

i. Civil Engineering Civil engineering construction
ii. Building CIDB-code CE

CIDB-code B

iii. Mechanical & electrical CIDB-code ME

Field Code/ specialization

Code Category CE Code Category ME
CE 01 Road construction M01
CE02 Bridge construction M02 Aircond E01 Sound system
CE03 System E02
CE04 Marin structure M03 supervision and
CE05 Dam …M21 fire safety/ security
……CE43 Tunnel prevention

Code Category B system
B 01 IBS- prefabricated concrete system
B 02 Lift & E03
B 03 IBS- steel frame system escalator …..E14
B 04
B 05 General building work
…B 28 Pile work

i. Civil Engineering

Example of works:
. Road and highway .
construction
. Bridge and jetty
. Tunnel
. others

. Hydroelectric
. dams
. Airport
. Railway tracks

ii. Building

Construction works
relating to:

Houses, Office,Hotel and resort and
others.

- Ibs system
- interior design
- Tile installation
- Painting
- Pile and others

The Construction Activities/ stage involved

i. Feasibility study
ii. design
iii. tender

iv. contract
v. construction

vi. Hand over
vii. Maintenance

i. Feasibility Study

 The research has to implement before starting any
construction. The research consists of:

- Social research to determine the loss account, and to fulfill
the costumer needed or to solve the social problems.

- Soil investigation research to determine types of soil and
bearing capacity.

 Write a report.

ii. Design

 Scheme design including estimation cost
 Detail design
 Bill of Quantities
 Final cost estimation

Scheme design - First phase in the design of a project where an architect/engineer prepares schematic diagrams
giving a general view of the components and the scale of the project after detailed discussions with the client
(owner).

Bill of quantity

Rate Total
amount
No. Description of item Unit Quantity RM Sen

RM Sen

1 Element 1: work below lowest floor finish

Generally

All excavation are measured from

formation level unless otherwise stated

Surface excavation

Excavate oversite to reduce level;

maximum depth not exceeding 1.00m

depth, get out and cart away from site

including level and grading to surface

of excavation M3 200

hardcore M2 350
200mm under raft foundation

Lean concrete

50mm thick under raft foundation M3 18

iii. Tender
Choosing the suitable contractor to build and finish
the construction project.

iv. Contract
Contract is an agreement between two or more
responsibilities parties and the agreement effective by
law

v. Construction
The contractor that has been appointed and has sign
the contract must build and finish the construction
due to the time given and cost that been agreed and
also due to the specified qualities.

vi. Handover
The construction project will be deliver by contractor
to the developer or owner when the construction is
fully finish.

vii. Use and maintenance
When the construction project is ready to use or
occupied by consumer, the employer or owner will
always do the maintenance when needed.

Parties/ authorities involved in construction

parties Description

Consultant Professional firm- architect, civil& structural engineer,
mechanical engineer, electrical engineer, and quantity surveyor.

Financial Institutions Malayan banking, cimb bank, public bank, affin bank and others.

superintending officer / Government project, example JKR: Head of director, deputy of

project director director, state director, district engineer)

Swasta: Representative of client (architect)

local authority JKR, JPS, TNB, IWK, District Council, city council and other2

Insurance company Kurnia insurances, RHB insurance, Takaful Malaysia, takaful
ikhlas Malaysia and others.

Suppliers Supply all types of material such as brick, cement, sand, tiles and
others.
Machinery rental: Machine, lorry, crane and others

licensing agencies Three agencies:
Ministry of Finance, Construction Industry Development Board
Malaysia (CIDB), Contractor service centre (PKK)/bahagian pem
kontraktor

Team in construction:

i. Design Team Members
ii. Cconstruction Team Members

Design Team Members

 Project Developer
 Architects
 Civil & Structural, Electrical & Mechanical Engineers
 Quantity Surveyor

Design Team Members

 Project Developer - Is the owner of the project / client
 Architects - To prepare a preliminary design and

detailed design
 Civil & Structural, Electrical & Mechanical Engineers –

as advisor
 Quantity Surveyor - cost advisor (Calculates a

preliminary estimation)

Construction Team Members

i. Contractor
ii. Architects
iii. Civil & Structural, Electrical & Mechanical

Engineers
iv. Quantity Surveyor

Construction Team Members

i. Contractor
ii. Architects
iii. Civil & Structural, Electrical & Mechanical

Engineers
iv. Quantity Surveyor

Construction Team Members

Contractor
 Must build and complete the project to specification

based on the contract documents.
 Must bear the cost of all the works on site during

construction and after completion.
 Must work efficiently to complete the project by the

due date.
 Must provide insurance coverage for the project and

workers.

Architects

 To control and supervise constructions project
according to the original design

 Team leader among the consultants.
 To communicate with contractor.

Civil & Structural, Electrical & Mechanical
Engineers

 To supervise during constructions
 As an advisor on site for their designated fields.

Quantity Surveyor

 Will evaluate the work at site according to schedule to
prepare progress payment.

 Will evaluate corrected defect work.
 Will make sure that all the defects have been repaired

during the defect liability period.
 Will prepare the final account.

Contractor registration

1. Contractor Service Center (PKK)/ bahagian
pembangunan kontraktor dan usahawan

- Scope of Work

2. Construction Industry Development Board

Malaysia (CIDB) JKR

- Scope of Work

LLP
KKR

PKK

CIDB

Scope of Work

i. Contractor service centere(PKK)

❑ Supervise and manage the Bumiputera status
❑ Certificate of bumiputera status/ Sijil perakuan taraf bumiputera

ii. Construction Industry Development Board Malaysia (CIDB).

❑ Registration centre for all contractors
❑ Certificate of contractor registration / Sijil perakuan pendaftaran

kontraktor
❑ Certificates of government procurement/ Sijil perolehan kerja kerajaan
❑ Accreditation
❑ Technical courses to contractor company
❑ Training to labor

Kuatkuasa : 15/10/2012, laksanakan SSPK (SISTEM SATU PENDAFTARAN

KONTRAKTOR)

Grade, Limit of tender, Value of tender, category, specialization

More than
RM 10 000 000.00

Contractor registration criteria

More than
RM 10 000 000.00



Application Procedure

 Only the owner or director of the company can
make an application. Applicants are only allowed
to register for one company.

Submit applications:

a) Online via smb.cidb.gov.my or;
b) Over the CIDB counter, or by post

Online application

Counter Application Flowchart

PERAKUAN PENDAFTARAN OLEH CIDB

Dapatkan
kerja kerajaan

Pendaftaran
kod bidang

SIJIL TARAF BUMIPUTERA – Pusat khidmat kontraktor

- 51% daripada pemilikan saham syarikat
dimiliki oleh Bumiputera

- 51% daripada Ahli Lembaga Pengarah
dipegang oleh Bumiputera(Ketua Pegawai
Eksekutif, Pengarah urusan, Pengurus,

Akauntan/ Pengurus Kewangan)



Procurement/perolehan

work - Civil, Mechanical, Electrical

Government supply
procurement
-Food, Goods

service 1. Consultancy – Engineering,
Survey, Environment

2. Non consultancy- Training,
Cleaning,

Government procurement

1. Direct purchase /Pembelian terus/runcit

(Pembelian bagi sesuatu item yang tidak melebihi RM 50 000.00 setahun-

contoh:bekalan)

2. Direct appointment /Lantikan terus

(-Bekalan yang diperlukan untuk elak kelewatan
- perkhidmatan yang memerlukan kepakaran)

3. Quotation /Sebut harga

Mempelawa Kontraktor Kelas G1 atau G2

4. Tender/tawaran

Grade G3 to G7

Supply/ Perolehan Bekalan

➢ Procurement of supplIes: supply of
goods to carry out a programme,
activity or government project.

➢ Contractors who want to participate in
the procurement must has a Ministry of
Finance (KK) license (registration
through e-procurement)

perolehan bekalan perlu menggunakan lesen Kementerian Kewangan

SENARAI KOD BIDANG PENDAFTARAN BEKALAN DAN PERKHIDMATAN
DI KEMENTERIAN KEWANGAN BERKUATKUASA MEI 2012
BIDANG, SUB BIDANG DAN PECAHAN SUB BIDANG

bekalan perkhidmatan

Service/perkhidmatan

Non-consulting
services

❑ Use of human energy services or
expertise to implement and
complete a particular project

❑ Contractors who want to
participate in the procurement
must has a Ministry of Finance (KK)
license (registration through e-
procurement)

Consulting services
Architect
Engineer
Surveyor
Quantities Surveyor

supply service

Work/ Perolehan Kerja

Civil works such as buildings,
airports, ports, roads, construction
site, dams and drainage works. It
also includes mechanical and
electrical works.

Procurement: Work

PENGKHUSUSAN

Pendaftaran Kontraktor

 Sistem sekarang dikenali Sistem Pendaftaran Satu
Kontraktor (SSPK)

 Diuruskan oleh CIDB
 Diputuskan dalam keputusan Mesyuarat Jemaah Menteri

14 September 2012
 Pertukaran berlaku pada 15 Oktober 2012
 Sebab pertukaran

➢ PKK dan CIDB di bawah satu kementerian iaitu
Kementerian Kerja Raya (KKR)

➢ Untuk mengelakkan pertindihan fungsi
➢ PKK untuk urusan taraf bumiputra

Tender

Tender is a statement from the client
that provides information to the
contractor about the proposed project.

The tender can be awarded either by
competition or by negotiation

Price > RM 500 000.00
Grade G3 to G7
Price of document tender (min RM 50.00)

Quotation

A formal statement of promise by
potential supplier to supply the goods
or services.

Renovation, painting and others
A quotation may also contain terms of

sale and payment, and warranties.
Price < RM 500 000.00

G1 to G2



Prosedur penyediaan tender

Adakah ada keperluan?
Contoh :Sekolah,hospital,dsbgnya

Cadangan dikemukakan kepada pihak
JKR Daerah( proses awalan)

Proses penyediaan dokumen meja tender
-Terima plan drpd jabatan arkitek/arkitek yang
dilantik
-Penyediaan kos projek

Anggaran kos dihantar ke Ibu Pejabat JKR Kuala
Lumpur
- Untuk menentukan jenis tender (segera or tidak,
saiz projek,keadaan , lokasi, kesesuaian dengan masa,
kos, pengalaman)