ACKNOWLEDGEMENT

In the name of Allah SWT, The Most Merciful and His Prophet, Nabi Muhammad SAW,
praise to Allah because He had given us the strength and spirit to accomplish our group project
work.

In performing our assignment, we had to take the help and guideline of some respected
persons, who deserve our greatest gratitude. The completion of this assignment gives us much
pleasure. We would like to show our gratitude to our lecturer Miss Nurol Huda binti Dahalan,
whose contribution in stimulating suggestions and encouragement, helped us to coordinate our
assignment especially in writing this assignment.

Special thanks dedicated to the En.Mohd Haiki Bin Mohd Bekri as the site engineer at this
project for giving us many of information about this project and willingly to entertain us during our
site visit. Not forget also to the team members and other friends, for the valuable comment and
suggestions on this proposal which gave us an inspiration to improve our assignment. We thank
all the people for their help directly and indirectly to complete our assignment.

Last but not least, the construction management project course work is the discipline
which provides the necessary processes, techniques and tools for accomplishing successful
project outcomes. Throughout this construction management project, particularly those of a
complex nature, it can be said that, this subject do give many benefits especially through the
concept of project management itself as well as improving cost and time performance.
1.0 PROJECT DETAIL

i. Type of contract

The word as ‘Contract’ in human activities is so general under legal contest. In construction,
the main important thing is that work information is enough to carry out the works though
Contract also can be seen every projects. Reason behind to include the contract is for helping
to parties to overcome the situation where something goes wrong then no parties are willing
to accept the fault or consequence of the problem .Furthermore, A construction
contract provides a legal binding agreement, for both the owner and the builder, that the
executed job will receive the specific amount of compensation or how the compensation will
be distributed. There are several types of construction contracts used in the industry, but
there are certain types of construction contracts preferred by construction professionals.

Construction contract types are usually defined by the way, the disbursement is going to be
made and details other specific terms, like duration, quality, specifications, and several other
items. These major contract types can have many variations and can be customized to meet
the specific needs of the product or the project.

In this project, there are used as traditional method and the construction contract was price
based system which it is Lump Sum Contract. Lump sum contract are contract that an easy
and simplified form of contract. Where, it is mean that it is easy to manage since payment is
made only once. The contract price also is a fixed sum quoted by contractor for the entire
works as specified in the contractor for the entire works as specified in the contracts and
documents. Moreover, there are no individual rates are quoted for each item of work and the
detailed or approximate quantities may not be issued with the form of tender. It is more
preferred when a clear scope and a defined schedule has been reviewed and agreed upon.
Each contract had their own merit and demerit.

As for this contract, the advantage of this contract to the owner are:

 It is much easier to supervise and manage lump sum contract.

 Since the contractor has accepted a fixed price for the construction, the owner is not
liable for any expenditure. This is most important benefit.
 There is certain degree of limitation over owner’s exposure as well as accountability
at the time construction since he has already agreed upon a fixed rate.
 The advantage for the contractor also:

 There is a greater margin for profit realization for contractors as well as designers.
 Lump sum contracts offer comparatively easier assessment of soil condition, bidding
prices, and pre-construction analysis which selection process less tedious.
 Due to it its general reliability, contractors try to enhance quality of production and
performance and try to complete work faster.

The disadvantage of this contract are:

 Lump sum contracts pose greater risk to contractor.

 The changes of quantity is a big challenge, where it is required more effort with the
paperwork in contract demand documentation and record keeping of change order at
all stages.
 The rejection of change order requested by employer.
 This contract usually end up with higher fixed price to cover unforeseen circumstance.
Owner are responsible for unpredicted condition beyond the control of either party.

ii. Type of tender

A tender is a submission made by a prospective supplier in response to an invitation to

tender. It makes an offer for the supply of goods or services.

In construction, the main tender process is generally for the selection of

the contractor that will construct the works. The type of tendering an employer must go
with depends on the nature of project, the complexity in the construction, the expertise
needed and various other reason. The government project usually made open tender in
order to ensure that works to be done in fair manner without prejudice. There are few type
of tender such as open tendering, closed tendering, selective tendering, and negotiated
tendering.

For this construction, there are used closed tendering. This tender is only selected a
person or organization are invited to submit a tender for a property this tender is opposite
with the open tender which it is made available for all people.
 The advantage of this tender

 More easy and comfortable to do work and communicate because the company had
been work together.
 The performance and quality work was good because, it had been work together and
the owner know the quality of their work.
 The time of construction also become short because it not waste the time with select
the company based on a few criteria.

The disadvantage of this tender are:

 The price that came from the contractor was higher than expected or budget
 If the work not perform it will give the bad effect to the contractor and the possibility of
owner to work together is less.

iii. Duration

The duration of this project is 8 month. Which the elapsed duration is 2.4 months and the
remaining of duration is 5.5 months.

iv. Consultant

The consultant for this project is Jurucita Consultant. Jurucita Consultant (Perunding
Jurucita) was originally formed in early 1986 in Butterworth, Penang. It is major in
provision of geotechnical, civil and structural, sanitary, and plumbing engineering
consultancy services. It is also undertakes project management services together with its
associate professional firms. It was originally managed by two partners who are also
brothers, namely Ir.Ng Sin Chie and Ir Ng Sin Lok.

Their professional experience is in the following field:

 Master planning of urban and resort projects

 Civil engineering for waterways, urban development, and urban infrastructure.

 Structural engineering of building projects

 Environmental planning
  Project co-ordination of consultancy terms and contract construction

 Turnkey consultant

 Project management

The company’s ranger of project includes city scale planning, residential and
commercial/industrial land development and associated infrastructures such as high rise
apartment, hotels, and office building and other residential, commercial and institutional
buildings.

The Logo of Company The building of Jurucita Consultant

v. Main contractor

The main contractor of this project is WJD INFRA SDN.BHD. WJD INFRA SDN BHD
formely known as Winjade Infra Sdn.Bhd was incorporated on 7th July 2009 currently
under takes several infrastructural work at northern region. Along the year, the company
has achieved impressive records in terms of quality, cost effectiveness, and delivery
within committed time for the completion project such as chain ferry, kamunting, Kota
Permai, Lunas, and other. With the experience organizations from the building
construction industries, the company dedicated to deliver quality of works and services
that achieve maximum customer satisfactions by continuous improvement in the area
such as:

 Manage and control builders workmanship and work quality

 Deliver and committed project within time

 Construct and comply with relevant technical specification and requirements

 The Logo of Company
vi. Subcontractor

A subcontractor is type of contractor. Subcontractor also work on contractual basic, their

also offer a particular set of skills which they perform for client. The key point about
subcontractor is that they form agreement with contactor, not with the client.
Subcontractor often specialize in one specific area of construction and try network with
contractor who negotiate for large jobs that include this area specialty. The sub-contractor
in this project more to the services such as electrical, plumbing, air-conditioning and
others. The company that been nominated for services subcontractor are:

i. Electrical Works : Cunfa Electrical & Engineering Sdn.Bhd

ii. Plumbing Works : Tap Plumbing Engineering Sdn.Bhd

iii. Fire Fighting Works : Conquest Fire Engineering Sdn.Bhd

iv. Lift System : TTLIM Engineering Sdn.Bhd

v. Air-Conditioning Works : C.E.M.B Engineering Sdn.Bhd

vi. Elv Works : DTE Integration Sdn.Bhd

vii. Extension of Time (EOT)

During our site visit to this construction, the project that not had any delay and it is follow
the project duration but in condition if there are any delay or problem based on
construction contracts generally allow the construction period to be extended where there
is a delay that is not the contractor's fault. This is described as an extension of time (EOT).
When it becomes reasonably apparent that there is, or that there is likely to be,
a delay that could merit an extension of time, the contractor gives written notice to
 the contract administrator identifying the relevant event that has caused the delay. If
the contract administrator accepts that the delay was caused by a relevant event, then
they may grant an extension of time and the completion date is adjusted. Relevant
events may include:

 Exceptionally adverse weather.

 Civil commotion or terrorism.
 Failure to provide information.
 Delay on the part of a nominated sub-contractor.
 A delay in giving the contractor possession of the site.
 Loss from a specified peril such as flood.
 The supply of materials and goods by the client.
 Changes in statutory requirements.
 Delays in receiving permissions that the contractor has taken reasonable steps to
avoid.

viii. Contract condition

An agreement, general conditions, drawings, specifications and other documents

comprise a typical construction contract. General conditions define each contracting
party’s duties and privileges, and the rules by which they are to meet obligations and
perform the work they agreed upon. Contract conditions set out the principal legal
relationship between the parties to a construction project, determining the allocation
of risk and consequently, price.

In this construction, we may use the standard condition a general contract binding on all
contractor engaged in civil works projects. The terms and conditions contract are
commonly applicable to all contractor and are not subjects to variation through contractual
dealings between the parties. The standard conditions govern matters like the
responsibility of the contractor, power and duties of the consultant or engineer and
detailed procedures for effective performance of the contact according to the technical
specifications. It also provides general rules regarding materials workmanship, general
time provision for commencement of work and delay, modification of contract and others.
For example that we can see from the standard form of contract where Bills of Quantities
Form Part of the contract often referred as PWD 203A. Therefore, the contract clauses
that stated in the Public Work Department Form 203A must be carefully examined and
studied by the contractor so that the obligations to be assumed are thoroughly understood.
The below show a few things that had in the contract such as:

a. The role of owner :

The condition stated that it will be available and used where the government and
JKR officers such as director, engineer, resident engineer, clerk of work or TA is
the owner. The duties for the owner below is according to the condition of the
contract.

i. The owner cannot disclose contractor’s rates and prices.  Be the

custodian of the contract documents.

ii. Contractor must paid for work that has caused by supplier officer. It can
be negligence if the cost of making good of any work due to S.O.I

iii. The owner need to pay the contractor for any or additional works not
mentioned in contract document such as variation order (V.O)

iv. Give possession of site to the Contractor on or before the date of

possession.

b. The role of contractor :

The duties shown in below has state according to the PWD 203A Conditions of
contract. There are many duties of the contractor in PWD 203A but the list below
shows the main of the contractor duties form the condition contract.

i. Primary obligation is to execute and complete works in accordance with

contract document until the issuance of Certificate of Practical Completion.

ii. Forth with carry out written instruction issued by supplier officer such as
architect or engineer. 10

iii. Makes specific written application to the S.O for any instruction

iv. Bear cost of opening up and testing or consequential costs of making

good. 

v. The contractor should set out the works accurately and amend at his own
costs in any errors.
ix. Location of project

The location of this project is at the Industrial Area, Batu Kawan Pulau Pinang. This
location mostly near with the others construction that still ongoing and this location mostly
place for the industrial such as UWC Automation Sdn.Bhd, ClassA Industrial (M) Sdn.Bhd
and others.
SUMMARY PROJECT INFORMATION

PROJECT’S NAME : CADANGAN MEMBINA 1 UNIT GUDANG 2-TINGKAT

DAN PEJABAT 2-TINGKAT

ADDRESS : DI ATAS LOT 21144(PLOT5875/SV18) TAMAN

PERINDUSTRIAN BATU KAWAN, JALAN CASSIA
SELATAN 3/10, MUKIM 13. SEBERANG PRAI SELATAN,
PULAU PINANG.

CLIENT : LEAPCO SDN.BHD

CONSULTANT : 1) CIVIL & STRUCTURAL ENGINEER - JURUCITA

CONSULTANT

2) MECHANICAL & ELECTRICAL ENGINEERING –

HPM CONSULTANT

CONTRACTOR : WJD INFRA SDN.BHD

COST OF PROJECT : 5 MILLIONS

THE AREA OF CONSTRUCTION : 5000M2

DATE OF COMMENCEMENT : 1st JANUARY 2019

DATE OF COMPLETION : 2nd SEPTEMBER 2019