CHAPTER 1

The basic concept of construction industry
 The Malaysian construction industry is generally separated into two areas. One area is general construction, which comprises residential construction, non-residential construction and civil engineering construction.
The second area is special trade works, which comprises activities of metal works, electrical works, plumbing, sewerage and sanitary works, refrigeration and air-conditioning works, painting works, carpentry, tiling and flooring works and glass works.
The construction industry makes up an important part of the Malaysian economy. Hence, the construction industry could be described as a substantial economic driver for Malaysia.

Construction
The process by which material, equipment, machinery are assembled into a permanent facility. 
 Construction engineering
Construction engineering concerns the planning and management of the construction of structures such as highways, bridges, airports, railroads, buildings, dams, and reservoirs.
Construction of such projects requires knowledge of engineering and management principles and business procedures, economics, and human behavior.
Construction engineers engage in the design of temporary structures, quality assurance and quality control, building and site layout surveys, on site material testing, cost estimating, planning and scheduling and safety engineering.


The types of construction industry in general
The building and construction industry encompasses housing, commercial, and infrastructure development. 
This sector comprises various fields including architecture, civil engineering, mechanical engineering, electrical engineering, quantity surveying, land surveying, landscaping and the others. In general, there are three (3) types of construction:

The importance of construction industry is:
  Provide facilities to public.
  Provide employment for local people.

  1. Civil Engineering - Road, bridge, sewerage system.
  2. Building - House, office, hotel, resort, hospital, school, mosque.
  3. Heavy Civil Engineering - Dam, airport, railway, highway, offshore structure, tunnel

Project definition:
A series of activities that have specific objectives, a clear beginning & ending point to achieve the set up objectives affectively with limited resources.

 
Stages involved in construction industry
The major steps in the process of project development are:
Feasibility Study
  • An evaluation and analysis of the potential of a proposed project which is based on extensive investigation and research to support the process of decision making.
  • Social studies is to determine the profit and loss, to meet customer demand.
  • Study of soil investigation to determine the type of soil and bearing capacity.
Design
  • Stages of design
  • Concept – project brief and concept design, review procurement rout
  • Design development – developed concept design to include structural and building service system, update outline specification and cost plan.
  • Technical design - preparation of working drawing, specification and schedule.

Tender
  • Identification & evaluation of potential contractor of proposed project.
  • Tender was issued after the plan is complete for the selection of a suitable contractor to construct and complete the project.
Contract
  • The contract is an agreement between two or more parties responsible and the agreement is enforceable by law.
Construction
  • Contractors who have signed a contract to build and
complete the construction in accordance the limited time and cost agreed upon and in accordance quality requirements.

Handover
  • Construction project will be submitted by the contractor to the developer or owner after the construction is fully completed.
Use & Maintenance
  • After the construction, the building may be used or occupied by the user. Then the employer or the owner should always make the necessary maintenance to prolong the building life.
Design team member
A formal design team may be assembled to plan the physical proceedings, and to integrate those proceedings with the other parts.
The design usually consists of drawings and specifications, usually prepared by a design team including surveyors, civil engineers, quantity surveyors (QS), mechanical engineers, electrical engineers, structural engineers, planning consultants and architectural consultants.
The design team is most commonly employed by (i.e. in contract with) the property owner. Under this system, once the design is completed by the design team, a number of construction companies or construction management companies may then be asked to make a bid for the work, either based directly on the design, or on the basis of drawings and a bill of quantities provided by a quantity
surveyor.
Following evaluation of bids, the owner will typically award a contract to the most cost efficient bidder.  


Builder team member
When it comes to construction phase, builders team member play an important role. Builders team member construct a project according to the approved drawings drawn by the architects and engineers.
Three (3) categories of builders in construction industry are:
(a) Surveyors;
(b) Constructors; and
(c) Specialty Contractors.
Constructor is the general term used to define the team or professionals responsible for all construction activities. Most contracts are awarded to a constructor who manages the project and subcontracts portions of the work, such as electrical and mechanical work to subcontractors or specialty contractors.
The primary job of the constructor is to manage the project, keep it on schedule, control costs and coordinate project team members. In Malaysia, they are commonly called contractors.
The example of specialized contractors is plumber, welder, painter, concreter, carpenter, bricklayer / mason, tiler and metalworker.


Table 1.1: Roles and responsibilities of
design and builder team member

MEMBER

DUTIES
Architect
§  Produce design by referring to client’s requirement.
§  Produce construction plan / drawing.
§  Plan and overview tender.
§  Monitor work progress.
§  Apply Certificate of Fitness (CF) from the authority.

Contractor
§  Plan, manage and monitor their own work to make sure that workers under their control are safe from the start of their work on site.
§  Co-operate with others and co-ordinate their work with others working on the project.
§  Ensure the workforce is properly consulted on matters affecting their health and safety.
§  Provide workers under their control (whether employed or self-employed) with any necessary information.

Civil Engineer
§  Prepare structural and construction drawing.
§  Supervise the construction progress by contractors.
§  Precede structural works according to specifications of the structural drawing.
§  Supervise earthwork according to specifications.
§  Explain the flow of work between subcontractor and main contractor.
§   
Building Surveyor
§  Provide advice and assistance to builders and owners before finalization and lodgement of building plans to avoid potential problems.
§  Assess building plans submitted for approval to make sure they conform to building regulations and codes of practice.
§  Settle building permit issue.
§  Inspect buildings during construction to make sure that proper methods and materials are used and that they conform to building regulations.
§  Keep records and write reports on building progress.

Supplier
§  Maintain the material and equipment in good condition.
§  Classify controlled products.
§  Provide materials as requested by the customer.
§  Send items to the location requested by the customer.
§  Monitor customers complain.



Quantity Surveyor
§  Conducting feasibility studies to estimate materials, time and labor costs.
§  Preparing, negotiating and analyzing costs for tenders and contracts.
§  Coordination of work effort.
§  Advising on a range of legal and contractual issues.
§  Valuing completed work and arranging for payment.

Interior Designer
§  Plan, design and supervise major renovations, remodeling and additions.
§  Maintains illustrative materials on available products and materials for selection by the user.
§  Procures furnishings, materials and equipment.
§  Prepares proposals for design work including sketches and costs estimates for labor, equipment, and materials.
§  Prepares final designs and specifications within budgetary restrictions.

Land Surveyor
§  Conducts land surveys for determination of boundary lines.
§  Assembles field data, reduces field notes and makes survey calculations.
§  Plots field data, using survey computer programs, constructs maps, and prepares reports.
§  Establishes control for alignment and benchmarks; makes required line and elevation.
§  Makes topographical surveys and site surveys for the development and/or clean-up of contaminated recreational facilities, and the design of buildings, roads, and bridges.

M & E Engineer
§  Explain the mechanical and electrical problem.
§  Detail record of work progress and new construction work progress.
§  Get the solution on wire problems such as lack of power supply.
§  Supervise mechanical and electrical works and ensure it follows the design specification.
§  Discuss with main contractors and subcontractor about costing building system like elevators, escalators and many more.




Contractor registration procedure at Pusat Khidmat Kontraktor (PKK) and the Construction Industry Development Board of Malaysia (CIDB)

The tasks and responsibilities of PKK as established by the government on 11th April 1984 are divided into four sections:
  • Registration centres and other related works for all contractors at federal and state levels.
  • Certification of Bumiputera status to qualified contractors.
  • Reference centre for mathers involving contractors.
  • Guidance and assistance centre for Bumiputera contactors involved in contracs with the Govermant Department/Agencies that do not have their own special units to assist the contractors.

Head system

Table 1.2: Contractor Head System

Head
CIDB Category
Head I
Civil Engineering Works
CE
Head II
Building Works
B
Head III
Mechanical, Sanitary and Water Engineering Works
ME
Head  IV
Other Specialist Civil Engineering Works
CE
Head V
Quarrying Metal and Earth Supply, Cartage and Transport
CE
Head  VI
Forest and Land Development
MOF
Head VII
Electrical Works
ME
Head  VIII
Telecommunication Works
ME

Grade registration for building work, civil and mechanical


Table 1.3: Contractor Grade by CIDB

GRADE
VALUE (RM)
G1
<200,000.00
G2
200,001.00 - 500,000.00
G3
500,001.00  -  1,000,000.00
G4
1,000,001.00  -   3,000,000.00
G5
3,000,001.00  - 5,000,000.00
G6
5,000,001.00  - 10,000,000.00
G7
>10,000,001.00


One contractor registration system
It is announced, hereby, to all Federal and State Government Departments, Statutory Bodies and Government-Linked Companies that came into force on 15th October 2012, the Government is implementing a One Contractor Registration System. In this regard, all Contractors Licenses issued by the Contractor Service Centre (PKK) is revoked and replaced with a Government Work Procurement Certificate (SPKK) issued by the Construction Industry Development Board Malaysia (CIDB). However, the Bumiputera Status Certificate for the status of indigenous remains under the control and supervision of the PKK.
            With the implementation of one contractor registration system, all implementing agencies involved with matters relating to acquisition are required to ensure that the method of selection and appointment of contractors follow the One Contractor Registration System.