BTQS 3024 Professional Practice

(Contract Management)

Week 1(B)
Roles & Responsibilities of the Parties

Sr Ng Chooi Chooi
Semester 3, 2023

BTQS 3024 (Contract Management) - Week 1B : Roles &

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Section 1:
Roles + responsibilities

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Contractual connection

Figure 1 : People involved and hierarchy of

contracts on a typical building construction
projects

Source : Construction contracting, a practical guide to company

management, 8th edition, Richard H.Clough, page 4

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Main parties
Employer/Client/Owner:

• The party initiated the work.

• The party procuring the work.
• In building contract, referred as the “Employer”.
• In appointment of consultants, this party referred as the
“Client”.
• The pay master.
• Employer=client=owner, different terminology.

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Main parties
Contractor:

• A main contractor is engaged by the employer to carry

out and complete the works.
• The main contractor engaged sub-contractors to carry
out and complete different trade of works.
• The contractor may design and build the works.
• Depends on the procurement method.

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Professional Team
Design:

• Town planner
• Architect
• Landscape architect
• Civil and structural engineer
• Mechanical and electrical engineer
• Façade consultant
• Lighting consultant
• Interior designer

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Professional Team
Non Design:

• Quantity surveyor
• Contract manager
• Project manager
• Building information modelling (BIM) manager
• Safety and health officer
• Environmental officer

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Funder

• Provide finance assistance to the employer.

• Financial institution, banks, government, charitable
organization & etc.
• Require security in return.

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Role of architect

1. Advisory services
a. Ascertaining the objectives, brief and constraints for the project;
b. Advising on the selection and suitability of proposed site;
c. Preparing the outline project plan include preliminary project planning;

2. Basic Services
a. Schematic design phase
i. Prepare preliminary conceptual sketch proposal;
ii. Developing the preliminary conceptual sketch proposal to sketch designs;
iii. Prepare preliminary estimates;
iv. Preparing and submitting the drawings for planning approval

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Role of architect

2. Basic Services
b. Design development phase
i. Developing the schematic design drawings enable other consultant to commence
detailed work ;
ii. Preparing working drawings and submitting to the relevant approving authorities;
iii. Updating the project planning and implementation schedule, ie tender calling & etc.

c. Contract Documentation phase

i. Preparing and finalising the detailed tender drawings for preparation of bills of
quantities by quantity surveyor;

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Role of architect

2. Basic Services
d. Contract Implementation and Management Phase
i. Providing information and issuing instructions to the Contractor;
ii. Examining the works programme submitted by the Contractor;
iii. Inspecting the works at periodic intervals;
iv. Certification of the works at various stages of completion;
v. Issuance of Certificate of Completion and Compliance(CCC).

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Role of consulting Engineer

1. Basic Services
a. Preliminary stage
i. Investigating data and information relevant to the works;
ii. Advising the Employer on topographical survey;
iii. Advising the Employer on the geotechnical investigation;
iv. Consulting local authorities on principle in connection with the works;
v. Providing sufficient preliminary information for preparation of estimate by the
quantity surveyor.

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Role of consulting Engineer

1. Basic Services
b. Design stage
i. Preparing designs and tender drawings;
ii. Prepare and certify drawings, calculations and details for submission to authorities.

c. Tender stage
i. Advice the Employer on the contractor’s alternative design on piling and structural
works.

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Role of consulting Engineer

1. Basic Services
d. Construction stage
i. Preparing construction drawings;
ii. Inspecting and testing during manufacture and installation of electrical and
mechanical equipment;
iii. Visits the site to inspect the performance of the contractor;
iv. Giving all necessary instructions;
v. Make site evaluation and prepare engineer’s valuation certificate;
vi. Checking shop, details and installation drawings;
vii. Liaison with the relevant authorities for connection of electricity supply telephone
lines etc;
viii. Prepare testing and commissioning procedures;
ix. Witness the testing and commission and certify.
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Quantity Surveyor Act 1967

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Role of quantity surveyor

• Advice in the development of the preliminary architectural development,

preparation of preliminary estimate.

• Provide input into the project’s cost plan through the establishment of a capital
budget.

• Examine the impact of contractual arrangement.

• Provide input into or conduct value management.

• Preparation of bills of quantities and other tender documents.

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Role of quantity surveyor
• Preparation of tender reports.

• Preparation of tender documents, tender reports and contract documents for

prime cost and provisional sum items other than those under the mechanical and
electrical engineering consultant.

• Preparation of contract documents.

• Provide cost control during constructions.

• Valuation of works in progress for interim valuations/certificates including

variations, and

• Preparation of final account.

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 Role of contract manager
• A contract manager needs to multi task.

Figure 2 :: Contract manager responsibilities

Source : Procurement Guide Contract Management

Practice 2018 Edition - The World Bank, page 6.

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Hard and soft skills
• Hard skills – technical skills, knowledge and experience

✓ Procurement;

✓ Project management;

✓ Legal knowledge (understand legal aspects of the contract);

✓ Financial management

✓ Analytics and reporting;

✓ Administrative, record keeping;

✓ Civil engineering.

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Hard and soft skills
• Soft skills – interpersonal skills, to build a successful relationship with relevant
stakeholder, and to build successful contract management team.

✓ Leadership, motivation and team building;

✓ Decision making;

✓ Interpersonal, communication and relationship management;

✓ Mentoring and knowledge transfer;

✓ Negotiation and conflict resolution;

✓ Time management;

✓ Goal oriented, outcome focused.

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Principle of good contract governance
1. Clearly defined roles and responsibilities at all levels;

2. Each role has sufficient representation and authority to fulfil its responsibilities;

3. Disciplined governance arrangements supported by appropriate systems and

controls;

4. A multi-tiered decision-making framework;

5. Decisions made at appropriate authorization points are recorded and

communicated;

6. Independent scrutiny of contract progress, outputs and outcomes undertaken

on a regular basis;

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Principle of good contract governance
7. A comprehensive contract management plan which is agreed and
communicated to all parties;

8. Strict control of change management decisions;

9. Comprehensive communications strategy;

10. Stakeholders are engaged at a level that is commensurate with their relevance to
the contract and in a manner that fosters trust;

11. Culture of candid feedback and improvement.

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Section 2:
Contract Administration

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Objective
1. To protect rights of contracting parties.

2. To ensure parties deliver their commitments.

3. To ensure
1. Delivery on time
2. Right quality
3. Within budget

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 Common contracts in building industry
1 Sale & purchase agreement on Land (regulated by Contract Act)
land house
Land owner Developer Purchasers 2 Sale & purchase agreement on property (regulated by Housing Development Act
1 2 1966, Act 663
3 Letter of appointment
3
4 a Memorandum of Agreement (regulated by LJTM)
7
b Memorandum of Agreement (regulated by IPPEH)
a Land surveyor Main Contractor
c LA bound with Condition of Engagement & Scale of Minimum Fees (LA is non-
a regulated, while CoE & SoMF are regulated by Architect Acts 1967, enforced by
6 Board of Architect Malaysia)
Domestic Sub-
b Valuer
Contractor d LA bound with Scale of Fees, Scope of services (only Scale of Fees is regulated by
IEM)
5 b
e Memorandum of Agreement (regulated by Board of Surveyor)
c Architect Suppliers 8
4 Construction contract – PAM Forms, CIDB, JKR, JCT, STCC & etc.
a Private contract/Letter of Award/Work order
Nominated Sub-
d Engineers a b Purchase Order/Supply agreement & etc
Contractor
a NSC contract (PAM Form)
e QS b Artisan b Private contract
6 Supervision roles, act as agent for client for certify, confirm changes, issue
instruction

7 No privity of contract
8 Supervision roles, profit attendance
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Battle of Forms
E = all trades/transactions
A = contract act
F = JCT F = STCC
B = PAM Forms

C = JKR Forms

E = FIDIC

D = CIDB

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Tender documents

• What constitutes a tender document?

• What constitutes a contract document?

• Why is there sometimes (or often) a big time lag between

the two?

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Tender
documents

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Tender documents

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Contract binding

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Definition Contract Documents

• Article 7 – PAM 2018

Extracted from PAM Forms 2018

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Definition Contract Bills

• Article 7 – PAM 2018

Extracted from PAM Forms 2018

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Contract
documents

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Contract documents

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Actions in contract administration

Extracted from PAM Forms 2018

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Actions in contract administration

Extracted from PAM Forms 2018

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Recap of lecture week 1B
• Contractual relationship
• Parties in construction project
• Role and responsibilities
• Contract administration
• Which form of contract to be use?
• Tender documents
• Contract documents

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Quote of the day

“A smile is the best makeup

any girl can wear.”

- Marilyn Monroe
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Thank you for your attention!!

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