BPFM

MAY / 2022

EBQS 3202

COST ANALYSIS AND ESTIMATING

NO. MATRIKULASI : 860228265129-001

NO. KAD PENGENALAN : 860228-26-5129
NO. TELEFON : 013-7778370
E-MEL : maxz_00@yahoo.com

PUSAT PEMBELAJARAN : OUM Shah Alam

ARAHAN
 Jangan menyalin soalan dan arahan tugasan dalam jawapan anda.
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(ASSESSMENT CRITERIA) seperti tertunjuk dalam RUBRIK. Jika RUBRIK
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University Malaysia (OUM) bagi tugasan kursus berkenaan.
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APENDIKS.

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 APENDIKS

RUJUKAN / REFERENSI

Nama Pengarang, (tahun), Tajuk Buku, Penerbitan

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 TABLE CONTENT
Question 1

Cost Estimation & Analyzing

Question 2 – Case Study – Impact of Covid-19 in Construction Industry

Introduction of Company

 Company Organization Chart

 Impact of Covid-19

 Solution for Construction Industry

 Conclusion

 Reference

 Question 3- Online Discussion Participation

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QUESTION 1

Concrete Mixing : (1 : 1 ½ : 3)
Normal Portland Cement = 1/7
= (1/7) x 1440 = 205,7 kg/m3

Data dan Estimation:

 Cement = RM10.50/bag
 Unskilled worker = RM40/day
 Skilled worker = RM50/day
 Sand = RM28.00/m3
 Aggregate = RM35.00/m3

Material Cost
1m3 cement = 28 bags  RM 10.50 RM 294.00
1.5m3 sand = 1.5m3  RM 28.00 RM 42.00
3m3 aggregate = 3m3  RM 35.00 RM 105.00
--------------
RM 441.00
Add 50% for shrinkages, compaction and wastage RM 220.50
---------------
Material cost for 5.50m3 RM 661.50

Material cost for 1m3 = 3 = RM 661.50 RM 120.27

---------------
5.50m

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Labour Cost Mixing 1m3 = 2.00 hours  RM40.00 8 hours RM 10.00
Placing 1m3 = 8.00 hours  RM40.00 8 hours RM 40.00
-------------
RM 170.27
Add: 15% profit and overheads RM 25.54
Price/m3 -------------
RM 195.81
--------------

Cost estimation is for the same situation as the preceding example, but the project uses a
mixer for mixing concrete. The mixer is owned by the project.

Data and Assumptions:

 Concrete mixer type is 7/5
 Average working days per year of mixer is 200 days
 Economic life of mixer is 4 years
 Initial cost of mixer = RM15,000
 Resale value of mixer = RM2,000

Material Cost Material cost for 5.50m3 RM 661.00

Material cost for 1m3 = RM661.00/5.50m3 RM 120.27

Mixing Cost (Using Concrete Mixer 7/5)

Initial capital cost
Interest on capital for 4 years @ 10% p.a. RM15,000.00
= 10/100  4  RM15,000.00 RM 6,000.00
Maintenance cost for 4 years = 1/10  RM15,000.00 RM 1,500.00

Transportation cost for 4 years = 1/20  RM15,000.00 RM 750.00

-----------------
RM23,250.00
Less: Resale value (RM 2,000.00)
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 -------------------
Cost for 4 years RM21,250.00
Cost for 1 year = RM21,250.00/4 years RM 5,312.50

Total working hours/year = 200  8 = 1,600hrs

 Capital cost/hour = RM5,312.50/1,600hrs RM 3.32
-------------
Running cost/day
Operator RM 50.00
3 unskilled workers @ RM40.00 RM120.00
Diesel = 1.60 litres  8 hours  RM1.70 RM 21.76
Lubricant = 0.06 litre  8 hours  RM20.00 RM 9.60
---------------
Total RM201.36
----------------
 Running cost/hour = RM201.36/8 hours RM 25.17
--------------
Total Cost of Using Concrete Mixer 7/5 for 1 Hour:
Capital cost RM 3.32
Running cost RM 25.17
Total RM 28.49
Output of concrete mixer 7/5 = 2.25 m3/hour
 Cost of mixing/m3 = RM28.49/2.25m3 RM 12.66
Placing 1m3 = 8hrs  RM40.00/8hrs RM 40.00
-------------
RM 172.93
Add: 15% profit and overheads
RM 25.94
--------------
Price/m3 RM 198.87
---------------

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QUESTION 2

INTRODUCTION ( Company Background)

Malaysia Airlines Berhad, The national currier that provide civil aviation services
for passengers or goods. Services refers to intangible products that are activities that help
and benefit the business such as transportation, tourism and insurance services. They rent
or own aircraft to provide transportation services and form partnerships or alliances with
the airline system for mutual benefit. Malaysia Airlines is one of the leading and largest
airlines in Malaysia and has a domestic and international network of 55 destinations in
addition to the airlines awarded 5 stars by Skytrax, the company operates at Kuala
Lumpur International Airport (KLIA). Malaysia Airlines should be proud to be one of the
companies of choice for customers and to have a recognized cabin crew and among the
best in the world.

This study aims to examine a multinational company (MNC) in terms of business

activities conducted and international business concepts applied by Malaysia Airlines
Berhad under Khazanah Nasional Berhad which is an investment company supervised by
the Ministry of Finance. Malaysia Airlines Group (MAG) is a global aviation
organization with subsidiaries and equity investments.

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2. COMPANY ORGANIZATION CHART

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 IMPACT OF COVID-19

The construction industry plays a significant role in the nation’s economic, societal,
and political development The pandemic of COVID-19 had arisen into our global that
had affected the construction industry. Due to this pandemic, all construction activities
have stopped following the Movement Control Order (MCO) by the Malaysian
government.

There would be a high impact on Malaysia’s economic growth if any major

construction projects got delays. Therefore, finding approaches to reduce the adverse
effects of COVID-19 is crucial to avoid negative economic growth in the nation that can
eventually result in an economic recession. One of the approaches to reduce the impact of
COVID-19 in the construction industry is to identify the emerging problems that the
industry players are facing in this complicated situation. The information obtained was
then analyzed to develop solutions to reduce the crisis's impact. Finally, critical solutions
will be evaluated to get the most efficient solution for those issue

Operational Problems

The operation of companies and construction works is the central aspect of the
construction business industry. Three factors are identified related to the operation, which
are Project Timeline, Labor, and Material. Due to COVID-19, these three factors facing
problems that caused the project operation to delay.

Project Timeline.

Project Timeline is a schedule of project work from starting until the expected time
completion of construction work. Due to COVID-19, the government had imposed the
Movement Control Order (MCO) started on 18 March 2020 and had extended until 31
December 2020. However, the Issues Operational Project timeline, Reduced labor
logistics problem and financial issues by increased project cost. Construction work
resumed, but it encountered some difficulties because it had to comply with the
government's SOP. By increase project costs a few factors identified had increased the
project cost, including the higher price of materials and the COVID-19 test procedures
cost.
The higher material price is caused by the changes in foreign exchange rates and
the increased demand for supplies. Also, COVID-19 test procedures have given the
additional cost to the company. Project materials experienced a slight price increase. Raw
materials are also difficult to obtain during MCO because many shops are closed & still
not operational. When site work had to be stopped during MCO, the company had to bear

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the cost of foreign workers such as food, shelter, and COVID-19 screening test because
the foreigners are not eligible to receive financial aids in general.

SOLUTION FOR CONSTRUCTION INDUSTRY

Preliminary indications are that many of the characteristics of the COVID-19

pandemic are inducing or increasing some disruptions. In addition to immediate trends,
the expect longer-term ones to accelerate as new ways of living and working become
standard

Short term: Increased digitization

Organizations across the industry are shifting to remote ways of working. For
instance, designers and engineers are relying even more heavily on digital collaboration
tools such as building-information modeling (BIM). Leading engineers and contractors
are using 4D and 5D simulation to replan projects and reoptimize schedules. Integrated
digital-twin solutions are being developed to be used end to end, from project concept to
commissioning. And contractors are looking to online channels for monitoring their
employees’ well-being through apps, ordering construction materials, managing scarce
resources more accurately, and maintaining cash flow.

Long term: Further investments in technology or digitization and innovation of building

systems. The industry faced a shortage of skilled labor before the crisis. With the
prospect of rolling physical-distancing measures and restrictions on cross-border
movement of labor, skilled labor shortages will become even more acute. The case for
digital tools that are proven to increase productivity, such as 4D simulation, digital
workflow management, real-time progress tracking, and advanced schedule optimization,
will become even stronger. For similar reasons, we see an increase in R&D spending to
develop new standardized building systems to speed up and automate elements of design
and construction

1.2 Building Information Modelling (BIM)

1. To Improve the digitalization for construction and easily monitoring

2. Providing ability to kept & store the information or project data
3. Easy to generate data-rich model of building and structure
4. To improve the efficiency of building process
5. Develop and managing information that can be share between project
stake holders

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CONCLUSION
The COVID-19 pandemic has done a lot of damage to society. It has affected the
society as well as the economy of every country. The disease is spreading so fast that the
government has been forced to lockdown. As a result of this lockdown, all transportation
systems have been shut down, supply chains have been disrupted and workers are not
able to come to the construction site even from home. That’s why work in the
construction fields has stopped and the construction workers have also faced extreme
uncertainty. So, construction companies are facing a financial recession. Companies need
to start working again to end this financial crisis. That’s why everyone should return to
work in according to the guidelines given by WHO and the government. Construction
companies need to take necessary remedial measures for their workers. Companies
should keep an eye on whether it's easy to work with new technology or software and try
to do most of the work from home. The government should ask the construction company
to continue working consciously. So, work should continue in this way until the situation
becomes normal or the vaccine is released. Not only the construction sector but other
organizations should be aware of this and continue to work so that the economy will
improve, and unemployment will be reduced.

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QUESTION 3 – ONLINE PARTICIPATION

REFERENCE

1. https://www.theedgemarkets.com/article/construction-costs-expected-
rise-19-year-rehda-survey-reveals#:~:text=Construction%20costs
%20expected%20to%20rise%2019%25%20this%20year%2C
%20Rehda%20survey%20reveals,-Chai%20Yee%20Hoong&text=This
%20article%20first%20appeared%20in,2022%20%2D%20April

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 %2003%2C%202022.&text=One%20of%20the%20constant
%20challenges,lead%20to%20higher%20property%20prices .
2. https://www.malaysiaairlines.com/my
3. https://www.thestar.com.my/business/business-news/2021/06/04/
malaysia-airlines-reduces-flights-during-mco-extends-booking-
flexibility
4. https://www.thestar.com.my/business/business-news/2022/04/08/
building-materials-cost-index-continues-to-rise-in-march-2022
5. https://www.driver-group.com/asia-pacific/news/covid-19-contractors-
malaysia#:~:text=TYPICAL%20CHALLENGES%20FACED%20BY
%20CONTRACTORS%20POST%20MCO&text=have
%20undoubtably%20led%20to%20reduction,costs%20being
%20incurred%20by%20contractors .
6. https://www.bernama.com/en/thoughts/news.php?id=1992948
7. https://www.researchgate.net/publication/
356180380_Economic_challenges_Conceptual_framework_on_factors_
affecting_construction_cost_during_COVID-19_pandemic_in_malaysia

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