Contract & Estimating Chapter 1

Transcription

1 Introduction to Construction Contract & Estimating Chapter 1 Introduction to Construction Industry Dr Mohamad Syazli Fathi Department of Civil Engineering RAZAK School of Engineering & Advanced Technology UTM International Campus It is a great profession. There is a fascination of watching a figment of the imagination emerge through the aid of science to a plan on paper. Then it moves to realization in stone or metal or energy. Then it brings jobs and homes to men. Then it elevates the standards of living and adds to the comforts of life. That is the engineer s high privilege. -Herbert Hoover July 25, 2010 Introduction to Construction Introduction to Malaysian Construction industry Construction is the step in which the plans, specifications, materials, and equipment are transformed by a constructor, usually a contractor, into a finished facility. Construction is performed to improve the overall quality of life. The construction industry in Malaysia:- plays an important role in generating wealth and improving the quality of life for Malaysians through the translation of government s socio-economic policies into social and economic infrastructure and buildings. provide job opportunities for approximately 800,000 people. Create multiplier effect to other industries (manufacturing, financial & professional services) Source: CIMP The importance of Construction Industry Developments in the Malaysian Economy (1Q ) Public facility Create jobs opportunity Infrastructure development Generate economy New technology discovery Increase land value Socio economy development The construction sector expanded at a strong pace of 8.7% during the quarter (4Q 09: 9.3%), supported by the implementation of construction-related projects under the second fiscal stimulus package and the Ninth Malaysia Plan. The projects include road upgrading, repairs of schools and Government quarters, the double-track rail project, the second Penang Bridge and the new Low Cost Carrier Terminal (LCCT). Source: 1

2 Developments in the Malaysian Economy (1Q ) Growth in the nonresidential sub-sector also reflected the ongoing construction of office and retail spaces, especially in the Klang Valley. Meanwhile, the residential sub-sector continued to expand, supported by better consumer sentiment and low interest rates. Source: Source: CIDB Malaysia, 2010 Output Value for Construction Sector of GDP Construction Demand Index by Sector Source: Source: Estimation of Construction output Number of storeys 88 - PETRONAS Twin Tower Height Total built-up area 452 meters above street level 341,760 sq.meters ( 3.7 million sq. feet) Design/Architecture Cesar Pelli & Associates [U.S.] in association with KLCC architects. Location of skybridge Levels 41 and 42 Length of skybridge Height of skybridge Vertical transportation 58.4 meters 170 metres above street level 29 double-deck high speed passenger lifts in each tower Number of escalators Stainless steel cladding Vision glass Concrete [various strengths up to grade 80] Steel 10 in each tower 65,000 sq. metres 77,000 sq. metres 160,000 cubic metres in the superstructures [see also foundation description below] 36,910 tonnes of beams, trusses and reinforcement Source: CIDB Malaysia Foundation 4.5 metre [15 feet] thick raft containing 13,200 cubic meters of grade 60 reinforced concrete, weighing approximately 32,550 tonnes under each Tower, supproted by 104 barette piles varying from 60 to 115 metres in length 2

3 - PUTRA LRT The system is popular and well-used, as the city's roads are hopelessly gridlocked. Linking the city's People's Park and Gombak, the fast, efficient east-west route services some of the most affluent and heavily populated areas and was completed during The 29km-long system is the world's second longest fully-automated driverless metro system. - STAR LRT STAR was constructed in two phases. Phase One STARline - Ampang Line which covers a distance of 12km and comprises 13 stations, between Ampang and Jalan Sultan Ismail. Phase Two STARline - Sri Petaling Line incorporates a 9.5 km extension from Chan Sow Lin station in Kuala Lumpur to the National Sports Complex and the Games Village at Bukit Jalil. INSPIRING CREATIVE AND INNOVATIVE MINDS - KL Tower - Formula 1 Circuit Beside the Petronas Twin Towers lies the awesome sight of KL Tower, the tallest tower in Southeast Asia. It stands majestically atop Bukit Nanas (Pineapple Hill) at 421 meters and 94 meters above sea level, is one of the first and perhaps most enduring images a visitor to KL will encounter. KL Tower was built to endure against wind pressure of 190 miles per hour. KL Tower, the 4th tallest of its kind in the world, was erected as a telecommunication tower to improve the quality of telecommunications and broadcasting transmissions. - KL International Airport KL International Airport (KLIA) is the Hub for Malaysian air transportation system. - KLIA Ekspress The KLIA Ekspres is a non stop service connecting KL International Airport and the Hub for Kuala Lumpur transportation system, KL Sentral. The service is non-stop with a journey time of 28 minutes and frequency of every 15 minutes during peak periods. (Non peak would be at every 20 minutes). 3

4 - SMART Tunnel SMART is an acronym for Stormwater Management and Road Tunnel, a project under the Federal Government initiated to alleviate the flooding problem in the city centre of Kuala Lumpur. - Putrajaya Putrajaya is a planned city, located south of Kuala Lumpur, that serves as the federal administrative centre of Malaysia. - Putrajaya The Future Putrajaya sits on a magnificent 4,931 hectares spread. Its Masterplan is designed along an axial tangent which runs from the northeast to southeast taking full advantage of the natural surroundings. Its undulating terrain treats visitors and residents to commanding vistas of the environment. About 40% of Putrajaya is natural. Lush greenery, botanical gardens are spread across the landscape enhanced by large bodies of water and wetlands. Civil works by ASEAN engineers are exportable items as are their fabricated and engineering products. ASEAN must be a center of excellence in the engineering filed. ASEAN engineers must not wait for others to innovate and established new methods and systems for them to copy. They must do research and development on their own methods and systems which should become standards for the rest of the world -Tun Dr Mahathir Mohamed The Service Sector With the advent of WTO and the push for globalization of trade and services, the emergence of foreign engineers in Malaysia is inevitable. The service sector is important to Malaysia and it has been identified as one of the three pillars of the economy as Malaysia progresses towards industrialized nation status by World Export (US$ Billion) Malaysia s Export (US$ Billion) Malaysia s share of world exports of commercial services Malaysia s Share (%) Sources:

5 Among the mega projects undertaken by Malaysian companies are : 1. New Doha International Airport in Qatar (US$543 million), 2. Mixed development in the Al-Reem Island Project (Zone C) in Abu Dhabi (US$378 million), 3. Abu Dhabi City Centre (US$429 million), 4. Jizan Economic City in Saudi Arabia (US$2.9 billion) and 5. Shohiba Independent Water & Power Project (US$2.6 billion). Source: 5

6 Construction Industry The engine that drives the overall economy Public facility Create jobs opportunity Infrastructure development Generate economy New technology discovery Increase land value Socio economy development The importance of Construction Industry Construction Industry Malaysian Infrastructure Comprised of: Roads SMART Tunnels / Tunnels Bridges Communication Systems Power Plants Distribution Networks Water Treatment Systems Others Entire infrastructure is constructed and maintained by the construction industry. Classification or Type of construction I. Residential (30 35%) II. Heavy Engineering & Infrastructure Construction (20 25%) III. Commercial/Building Construction (35 40%) IV. Industrial (5 10%) 6

7 Types of Construction I. Residential (30 35%) Single family houses, apartments, condos, etc. Private Financing Low start-up capital necessary Labor Intensive Owner = Developer Architect = Designer Types of Construction cont. 1 II. Heavy Engineering & Infrastructure Construction (20 25%) Highway, airports, bridges Long duration projects Equipment intensive High contractor expertise Types of Construction cont. 2 III. Commercial/Building Construction (35 40%) Government buildings, schools, hospitals, retail, warehouse, etc. Public & private financing i Labor and material intensive Contractor expertise necessary Types of Construction cont. 3 IV. Industrial (5 10%) Manufacturing, plants, refineries, steel mills, etc Privately funded Design/build very large engineering & construction operations High initial costs (start-up) Construction Elements Budget Issues For any construction project, there are four (4) important elements: 1. Budget 2. Schedule 3. Quality 4. Safety $ (Initial $, Cash Flow, Finances) Purchase, Lease, Subcontract Labor (People) ( p ) Equipment Materials (manmade/natural) Suppliers Time & Productivity Technology 7

8 Schedule Issues Constructed Product Productivity (labor, equipment) Suppliers Materials Management Weather Delays, Interference, Disputes Fulfills the project need Built in reasonable conformance to the plans Meets the Specifications Quality Assurance/Quality Control (QA/QC) On-site Inspection Jobsite Safety Contract What do you really control? Every time a contractor make an offer to do construction work (eg. to build a building, to lay a pipeline) and every time an offer is accepted a contract is made. Marriage is one kind of contract! Contract Administration Construction Engineering gmanager Design/Designer Contractor? Schedule? Budget? Safety? What is the Likelihood of a Good Product, If You Have a GOOD Contractor Have a GOOD Engineer in Charge (EIC) Have a GOOD set of Plans/Specifications What is the Likelihood of a Good Product, If You Have a POOR Contractor Have a GOOD Engineer in Charge (EIC) g g ( ) Have a GOOD set of Plans/Specifications 8

9 Contractual Arrangement Project Development Process Traditional Design & Build Construction Management Owner - Agent Project Description Land Acquisition Site Survey & Soil Investigation Initial Design Preparation & Construction Site Plan Architect & Engineering Detailing Design Early estimates preparation & cost control Tender document preparation Tender invitation & acceptance Evaluation & acceptance of tender Contract document preparation & sign Work progress preparation & approved Etc 9