C4382-PROFESSIONAL PRACTICE 3 MOHD KHAIRUDDIN BIN HAMDAN 03 PUB 11 F 2023 NOR HAMIZAN BIN NOR HASHIM 03 PUB 11 F 2032

NURRUL SHAFIQA BT ZURGHIBA 03 PUB 11 F 2035 NUR SYAMIMI BT ZAINOL 03 PUB 11 F 2043 SYAFIQAH BT SAARANI 03 PUB 11 F 2048 PENSYARAH: EN HAMDAN BIN MOHD SALLEH

Contract was an agreement that is formed between two or more parties that enforceable legally. That agreement can be implemented orally, act or that best in writing. Agreement in contractual cover among them, authority and responsibility parties which involved that enforceable legally. Basis contract is based on free negotiation, where party that is contract free to discuss and create any conditions (that does not violate the laws) that they require without any force, inducement and others. However there is also where contract a person have no choice to be doing free negotiation such as contract for electricity supply service and telephone. Choice that there is , in case like use that service consumer must be agreeing with all contract terms that is fixed. Contract that is shaped such named standard contract ( standard contract ). Building contract have contract elements standard. There is important something contracts needs a bond. With no strings attached, party that welsh may be will be missed from fulfill responsibility. In business for example, knowing rights and responsibility is where need without contract and terms that is clear, a dealer may be will not be comfortable and peaceful when supply an item to a person. With the existence of contract, should occur the dealer default can get compensation or compensation. Compensation purpose or this compensation was to reinstating someone's rights that wronged to level that should take on preliminary agreement.

CONTRACT SUM

Defination of contract sum mutually agreed upon total amount that a principal (client or project owner) pays to a contractor on completion of the contract, in accordance with contract terms and conditions. Usually total contract are stated in matter agreement in contract building. The contract amount can variable additional @ deduction a total contract because of change, loss or compensation and other contract that permitted inside contract adjustment. The contract document contract sum including amount preliminaries, amount contract builder, Provisional Cost Sum and Prime Cost Sum. Example Contract Sum

PEMBERSIHAN DAN PENGINDAHAN SUNGAI MELAKA,MELAKA PARCEL 2 - PAKEJ 3 GRAND SUMMARY OF TENDER Bil No 1 2 3 4 5 6 Description Preliminaries And General Condition Summary Phase 1( Building Work ) Summary Phase 2 ( Building Work ) External Work Proviosional Sum Prime Cost Sum Total Amount Carried To Form Of Tender Page Pre/8 SM/39 SM/109 Ext/98 PS/15 PS/16 Tender Amount 1,206,000.00 7,625,345.56 5,435,265.00 1,265,000.00 500,000.00 5,435,000.00 21,467,210.56

Definition of main contractor, sub-contractor and nominated supplier

Main contractor Main contractor is one who expert and are informed in construction field and civil engineering work or both. This main contractor will sign the contract between contractor and profession member party or employer. This main contractor will be implementing construction project until completed like those are included in contract document. Main contractor will be implementing this building process whether by using workforce that owned his own or take subcontractor or both. Nominated subcontractor Sub-contractor elected by superintending officer to implement expert works , that were appropriated in tender document / materials list as Prime Cost Sum. Nominated Supplier Building material supplier elected by superintending officer to supply particular construction materials that were appropriated in tender document / materials list as prime cost sum.

Sub-contractor Compliance to quantity value Subcontract work quantity and material that used had to take on determination that have been fixed in contract document that already been signed by subcontractor Protect public interest Subcontractor should always ensure public interest not affected due to from subcontract work that implemented him and this indirectly it will take care of interest main contractor. This interest include property damage, security, comfort and so on. Care site cleanliness build Waste or surplus from something subcontract work that carried out need to be cleaned again by subcontractor. Subcontractor should ensure this case carried out lastly subcontract work without prejudice at the site other party property build. Nominated Supplier Subcontract Implementation Supplier should implement and complete supply works and submit send material or equipment to contractor Make Sure Goods Security Become supplier responsibility to ensure goods and material that hand over send to site build staying under lock and key and undamaged. Replacement or Repair Become supplier responsibility to change and repair anything material and equipment that were supplied him after being told in writing by contractor. That damage including whether break down, disabled or low the quality

Obligation of main contractor, nominated sub-contractor and nominated supplier.

Main Contractor Construct, complete, test and commission the Works in accordance with the Contract. Take all appropriate measures expected of a contractor providing similar works to ensure that the Works comply with the requirements of this Contract. Perform the Works and discharge its obligations as contained in this Contract by exercising professional judgment and practice, requisite skill, care and diligence. In performing the Work, the Contractor shall provide well-outlined procedures in the form agreed by the Government for reporting and co-ordination purposes. Provide and maintain throughout the Contract Period such number, categories of qualified and competent personnel necessary to perform the Works Carry out any other obligations and responsibilities under this Contract.

UNFIXED MATERIALS AND GOODS Unfixed materials and goods delivered to, places on or adjacent to the sides and intended for incorporation there rin, shall not be removed expect for use upon the works, unless the S.O has consented in writing to such removal. Where the S.O. has included the value of such materials or goods in any certificate in accordance with clause 28, under which the contractor has received payment, such materials and goods shall become the property of the Government

In provide latest interim payment certificate to contractor, previous payment should be taken into consideration. The meaning of previous payment that was contributed previously payment or sum payment that was contributed and accepted by contractor.

Item item should be taken into previous payment. Construction work that implemented previous that were value. Material on site that were valued previously. Work percent value preliminaries that was contributed Accumalated total value payment that has been received by contractor. The latest progress builder work complete.

Certain amount of money that lent by client to contractors in early construct as financial assistance to start work and is repaid through interim payment discount. In contract practice for down payment government only used by for extend government project from Arahan Perbendaharaan Bil. 11 / 1981.Down payment is consist financial support which was given by clien to contractors early stage construction. If all dealings process this down payment can be resolved quickly, this payment may be given to contractors before site possession build or once site possession build. If too late, so objective this help grant had not achieved objective it created. This down payment more closely to financial loan that administered by client to Kontraktor. It should be paid back when project under construction where inflow of money contractor at that time was considered have been stable.

Qualification Receiving Deposit Payment Advance Payment that is eligible accepted by contractor according to circular Perbendaharaan Bil. 10 / 2002 is as much as 25% from builder job value with maximum limit RM 10.00 million for main contractor. To sub contractor named, down payment is as much as 20% from subcontractor value with maximum as much as limit RM 5.0 million

To ensure client interest, some condition and need imposed to contractors before advance payment approved. Document that need to be presented by contractors before down payment approved are as follows :-

Bank Guarantee Letter Award Insurance Policy Letter From M.O.F Performance Bond

Example Calculation Advance Payment. CADANGAN MEMBINA DAN MENYIAPKAN KLINIK KESIHATAN 3 TASEK GELUGOR SEBERANG PERAI UTARA, PULAU PINANG. Maklumat Kontrak Harga Kontrak Bagi Kontraktor Utama Wang Kos Prima Wang Peruntukan Sementara RM 19,263,000.00 RM 435,000.00 RM 5,209,740.00

Nilai Kerja Pembinaan = RM 19,263,000.00 - ( RM 5,209,740.00 + 435,000.00 ) = RM 13,618,260.00 Jumlah Bayaran Pendahuluan = 25 %x RM 13,618,260.00 = RM 3,404,565.00 Kontraktor layak mendapat RM 3,404,565.00 wang pendahuluan iaitu persamaan 25% dari kerja pembinaan.

RECOUPMENT OF ADVANCE PAYMENT

Repayment from down payment that given to contractor rejected through by gradually interim payment. Treasury directive outline repayment by using following formula D = 2 x AP X WD -0.25(CS-(PC+PS) D = Jumlah tolakan terkumpul pada setiap bayaran interim AP = Jumlah bayaran pendahuluan D = Nilai Kerja dilaksanakan termasuk 90% bahan di tapak bina CS = Jumlah Harga Kontrak PC = Jumlah wang kos prima PS = Jumlah Wang Peruntukan Sementara. Contoh Pengiraan Harga Kontrak Bagi Kontraktor Utama Wang Kos Prima Wang Peruntukan Sementara Jumlah Bayaran Pendahuluan RM 19,263,000.00 RM 5,209,740.00 RM 435,000.00 RM 3,404,565.00

= 2 X AP X WD 0.25(CS (PC+PS) CS-(PC+PS) = 2X 3.404.565 X 5.0 0.25 ( 19.263-(5.209.740+0.435) 19.263-(5.209.740+0.435) = 6.81 X 1.0 13.68 = 0.497 = RM 497,000.00( Jumlah Nilai Rekupan)

Construction work implementation need financial investment that is high for contractor and client. It also requires long time to be completed. So out goings flow / enter that continuously and with number that reasonable is very important to ensure the a project more viable and canimplemented at the cost of that economic. Furthermore to finance contractor construction should produce and spend cost that isrelatively high early stage.

i) Paid salary wage of inflicted worker in construction which involved at the site and contractor management. ii) Payment to supplier building material supplier iii) Payment to rent at the site machine rent. iv) Payment to sub contractors that carrying out work work at the site. v) Payment for water bill, electric and cost - other cost which involved at the site. With the existence of allocation for interim payment that was prescribed per month enable main contractor make payments to material supplier and pay rent plant hereby will launch further construction in time that is fixed.

Certain amount of money that need to be paid to periodically contractor such as that is fixed in contract on works that were finished implementing including building-materials that supplied and any different subject that is eligible calculated using contract.

Construction work implementation need financial investment that is high for contractor and client. It also requires long time to be completed. So outgoings flow / enter that continuously and with number that is reasonable is very important to ensure the a project more viable and implemented at the cost of that economic. Furthermore, generally to finance contractor construction should produce and spend cost that is relatively high in early stage. Contractor actually crying out for payment from client from time to time to finance cost that was spent. Payment received enable contractor make payments to building material supplier, construction worker, plant rent, and equipment, general overhead and others party which related. With the existence of allocation for interim payment such as that stated in clause 28, so this payment issue can be managed by better for interest and both split good party. Whatever payment frequency according to contract terms and sum payment plausibility also important for contractor to ensure their financial flows shaping up.

Preparation Progress Payment In Public Sector

Prepare Valuation on site and Certificate Payment Once One Month Take a long time for passing of payment to contractors Have to be approval many parties before certificated payment approved

Preparation Progress Payment In Private Sector

Prepare Valuetion on site and Certificate Payment more once month. Not take a long time for passing of payment to contractors. Justified payment only Architect and Client only.

Main Contractor

Ensure construction work at the site run smoothly according to schedule that is fixed

Nominated Sub Contractor

Nominated Sub Contractor must finish the work at the site according to schedule that is set and job specification that is correct not to harassing interim payment because of errors from sub contractor cause payments to interrupted main contractor payment progress.

Nominated Supplier.

Ensure supplier that supplied reach at the site and according to specifications that correct to enable contractor made claims for material on site.

Quantity Surveyor

Valuetion on site to justified paid to main contractor .

Architect / Superintending Officer

To approval progress work Construct on site and material on site.

Client

Make progress payments build at the site to paid main contractor.