PRECON W1

Disclaimer and Context (As Stated in Slides)

• Educational material prepared by Madam Noraidawati Jaffar (UiTM Perak)

• Aims to give a basic understanding; does not constitute professional advice

• Students must always consult relevant experts, regulations, standard forms of contract, and professional references before applying the information in practice

Course Learning Outcome (CLO)

• By the end of the course, students should be able to:

  • Determine provisions in the current Malaysian Standard Form of Contract that act as mechanisms for pre-contract administration in the construction industry

• Emphasis: mastery of contractual clauses, timing, documentation, and cost control before site work starts

Foundational Terms in Quantity-Surveying Practice

• Role of QS
  • What society / industry generally expects from a Quantity Surveyor across a project life-cycle

• Function of QS
  • Natural or intended activities carried out to fulfil the role (e.g.
  measurement, valuation)

• Activity of QS
  • Discrete actions or tasks the QS performs while pursuing project objectives (e.g.
  preparing a cost plan, issuing interim certificates)

• Services of QS
  • Commercial offering of QS expertise to clients (consultancy, cost advice, tender documentation)

• RIBA Plan of Work
  • Standard UK framework (adaptable to Malaysian practice) that breaks a building project into logical stages; QS duties map onto every stage

Global Roles of a Quantity Surveyor within the RIBA Plan of Work

• $(1)$ Preparing estimates, feasibility studies, and budgets

• $(2)$ Preparing Bills of Quantities (BQ) and other tender documentation for competitive bidding

• $(3)$ Negotiating building contracts (costs, clauses, risk apportionment)

• $(4)$ Advising on & preparing contract documentation (conditions, schedules, appendices)

• $(5)$ Monitoring and reporting on cost throughout the project

• $(6)$ Determining final project costs (final account settlement)

• $(7)$ Preparing property valuations (often for insurance)

• $(8)$ Some firms add project / construction management to their service portfolio

• Ethical note: QS must stay impartial, accurate, and transparent, esp.
  when advising both client and contractor

RIBA Plan of Work Stages & Core QS Cost-Control Tasks

• INCEPTION (A) → FEASIBILITY (B) → OUTLINE PROPOSALS (C) → SCHEME DESIGN (D) → DETAIL DESIGN (E) → PRODUCTION INFORMATION (F) → BILL OF QUANTITIES (G) → TENDER ACTION (H) → PROJECT PLANNING (J) → OPERATIONS ON SITE (K) → COMPLETION (L) → FEEDBACK (M)

• Typical QS cost-control checkpoints
  • Prepare cost plan at inception / feasibility
  • Cost checks at outline & scheme stages to confirm $\text{cost limit}$
  • Final cost check before tender
  • Cost monitoring & analysis continues through construction

• Significance: early-stage estimates reduce client risk, later cost checks prevent budget over-run; feedback loop supports future projects

Detailed Stage-by-Stage Purposes & Typical QS Tasks

• INCEPTION (Briefing)
  • Purpose: outline client requirements & plan next actions
  • QS tasks: help set up client organisation, clarify scope, advise on budget feasibility, recommend appointing architect & consultants

• FEASIBILITY
  • Purpose: provide client with an appraisal & recommendation
  • QS tasks: perform cost studies, site condition analyses, design-cost options, high-level risk assessment

• OUTLINE PROPOSALS (Sketch Plans)
  • Purpose: choose general approach to layout/design/construction
  • QS tasks: refine the cost plan, align design with budget, flag high-cost elements early

• SCHEME DESIGN
  • Purpose: complete the brief; obtain statutory & planning approvals
  • QS tasks: detailed cost checks, value-engineering workshops, preliminary designs by engineers incorporated into cost models

• DETAIL DESIGN (Working Drawings)
  • Purpose: secure final decisions on design/spec/construction/cost
  • QS tasks: full measurement, specification drafting, final cost verification, confirm procurable materials within budget

• PRODUCTION INFORMATION
  • Purpose: finalise drawings, schedules & specs needed for work on site
  • QS tasks: coordinate with architect/engineer to insert measurable info for BQ, ensure clarity for tenderers

• BILL OF QUANTITIES
  • Purpose: compile all necessary information for tendering
  • QS tasks: measure, describe, group work items; choose measurement rules (SMM, MYCESMM); produce preambles & preliminaries

• TENDER ACTION
  • Purpose: obtain an acceptable tender
  • QS tasks: prepare estimate, handle queries, issue addenda, analyse bids

Pre-Contract vs Post-Contract Scope (Overview)

• Pre-Contract Stage
  • Preliminary estimate / budget
  • Choice of contractual arrangement (e.g.
  $JCT$, $PAM2006$, $CIDB$)
  • Preparation of tender documents
  • Tendering procedures, evaluation, reporting, & letter of award

• Post-Contract Stage (mentioned for contrast)
  • Site valuation / interim certificates
  • Measurement of variations / re-measurement
  • Confidential financial reports
  • Final account settlement
  • Site possession & contract administration

• Importance: dividing stages clarifies fee structure, responsibilities, and liability periods of the QS

Pre-Contract Duties & Services (Detailed)

$(1)$ Preliminary Estimate / Budget

• Purpose
  • Inform client of total project cost
  • Guide design team to stay within budget
  • Align material specs & quality levels with affordability

• Process
  • Gather client brief & information
  • Architect prepares preliminary scheme drawings
  • QS derives elemental cost analysis, rates, contingencies
  • Present estimated cost to client; obtain approval or iterate

• Real-world Relevance: Early cost certainty enables financing, lender approvals, and risk allocation

$(2)$ Determination of Contractual Arrangement

• Compare design-bid-build, design & build, management contracting, etc.

• Evaluate risk transfer, speed, cost control, design responsibility

• Select suitable Standard Form of Contract (e.g.
  PAM, PWD, CIDB) aligning with Malaysian law

• Ethical duty: unbiased advice ensuring fair allocation, compliance with statutory requirements

$(3)$ Preparation of Tender Documents

• Why
  • Outline client requirements comprehensively
  • Provide rules & regulations the contractor must follow
  • Become part of the binding contract after award
  • Act as evidence & reference throughout the project

• Components (QS responsible for many)
  • Instructions to tenderers
  • Conditions of contract
  • Bill of Quantities
  • Specifications, drawings, schedules, appendices
  • Form of tender & preliminaries

• Workflow
  • Receive working drawings from architect/engineer
  • Register drawings for traceability
  • QS prepares BQ, specs, conditions
  • Assemble tender table (summary) for public or selective display
  • Submit full package to client’s office

$(4)$ Tendering Process / Procedures

• Issue tender invitations (open, selective, negotiated)

• Provide clarifications & addenda within tender validity period

• Maintain confidentiality & anti-collusion ethics

• Record tender queries and responses for audit trail

$(5)$ Tender Evaluation & Tender Report

• Purpose
  • Find qualified contractor with reasonable cost & time
  • Assess completeness, technical capacity, financial standing
  • Provide transparent, auditable comparison

• Evaluation Steps
  $(a)$ Receipt & Opening – done by Tender Committee; record sums vs pre-tender estimate
  $(b)$ Detailed Evaluation – check arithmetic, compliance, programme, key personnel
  $(c)$ Capability Check – resources, past performance, cash flow

• Tender Report
  • Prepared by QS after evaluation
  • Summarises all findings & gives recommendation
  • Submitted and presented to client for decision
  • If accepted ⇒ Letter of Acceptance issued within validity period

$(6)$ Issuing Letter of Award / Acceptance

• Legally binds contractor; date marks commencement of contractual obligations

• QS often drafts cost‐related appendices (priced BQ, schedule of rates)

• Must reference all tender addenda & post-tender clarifications

Ethical, Philosophical & Practical Implications

• Transparency & Fairness: vital through tender evaluation; avoids corruption, collusion, bid-rigging

• Duty of Care: QS advice directly affects client’s financial exposure and contractor’s viability

• Confidentiality: cost information & competitor bids are sensitive

• Professional Liability: inaccurate estimates may cause budget failure; QS may face claims

• Sustainability Considerations: value engineering should weigh life-cycle cost, environmental impact, not just lowest initial price

Links to Previous & Future Lectures

• Builds on measurement skills (SMM / MYCESMM) taught earlier

• Prepares ground for Post-Contract Administration (Part $2$ of series) where site valuations, variations, and final accounts will be covered

• Reinforces legal principles from Construction Law modules (conditions precedent, contractual notices)

Key Numerical & Contractual References (Using LaTeX)

• Typical tender validity period: $(90\,\text{days})$

• Contingency allowance in preliminary estimate: $5\,\text{\%}–10\,\text{\%}$ of contract sum (rule of thumb)

• Common design contingency at feasibility: $\approx 10\,\text{\%}$

• Malaysian Standard Forms frequently used: $\text{PAM2006}$, $\text{PWD203/203A}$, $\text{CIDB2000}$

Quick-Reference Checklist for QS Pre-Contract Duties

• $\Box$ Collect client brief & budget ceiling

• $\Box$ Produce elemental preliminary estimate

• $\Box$ Advise on procurement & contract form

• $\Box$ Prepare complete tender documentation

• $\Box$ Manage tender invitation & clarifications

• $\Box$ Evaluate tenders objectively (price + capability)

• $\Box$ Draft tender report & obtain client approval

• $\Box$ Issue letter of award / prepare contract documents

Takeaways

• Accurate, transparent pre-contract work establishes the financial DNA of the entire project; errors multiply downstream

• QS must balance cost, quality, and time while safeguarding ethical standards

• Mastery of Malaysian standard contracts and RIBA / local work stages is indispensable for effective pre-contract administration

End of Study Notes – suitable for exam revision and practical reference.