Scope of Consultancy Services for Developers
Pre Contract
Preliminary (Budget) Estimating and Cost Planning
Controls expenditure and ensures that the client receives better value-for-money in both design & construction. Project cost can be controlled and kept within the agreed budget.This estimate is developed at concept stage of a construction project during the initial design phase. The purpose is to provide an introductory cost prior to the availability of detailed drawings. . In view of the preliminary nature and non-availability of the details, information and drawings at this stage, the Preliminary Estimate is derived by area, volume or unit and priced at current market rates and cost data from previous projects
Cost planning process
- The estimate is derived from combination of approximate quantities and analysis on similar cost plan and assumptions on the projects of similar nature and updated at prevailing market. This estimate shall include allowance for Mechanical and Electrical Services and other specialists advised by the respective consultants
- A Cost Plan indicates how this estimate should be spent among the various parts or elements of the project
Further Cost Checks will be carried out and updated accordingly upon receiving advance information and detailed drawing from the Architect to ensure that the actual design details for the various elements can be constructed within the cost plan
Cost Control of a construction project commences at inception and ends with the agreement of the final account. It is control the costs during the pre-contract and post-contract stages of a project. The purpose of our cost control procedures aims to:
- Provide the client with a value-for-money project
- Achieve a balanced design expenditure between the various elements of the building
- Approximate estimating
- Cost advice & comparisons of alternative materials and methods of construction
- Cost planning
- Cost monitoring & reporting during the design stage
Procurement
We can provide advice on procurement and the best method of procurement for the project.
Procurement Services for Consultants and Private Clients:
- Advice on the most appropriate procurement method for the project
- Contractual advice
- Contractor selection advice
- Preparation of tender and contract documentation i.e. bills of quantities & schedules of rates
- Forms of contract
- Reviewing tender documents i.e. drawings and specifications
Select the right method of procuring the construction works and appropriate Terms of Contract is important in all construction to the projects.
In basic terms Procurement is the process used to obtain construction projects. It involves the selection of a contractual framework that clearly identifies the structure of responsibilities and authorities for participants within the building process. Being the key factor contributing to the project success the selection of the most appropriate procurement method is critical for both clients and project participants
Construction clients range from experienced clients who may have their own professional team and an effective procurement policy to the inexperienced client with little or no knowledge of procurement methods and who requires extensive professional advice.
The needs of clients vary considerably with regard to certainty of price, cost limits, time requirements, complexity of design and many other factors.
- The commonly practiced procurement routes within the Malaysian construction industry are:-
- Traditional
- Design and Build
- Management Contracting
Tender
Part of our basic services is to prepare tendering documentation comprising pricing documents, which provide a reliable basis on which to tender for proposed construction works.
Tenders documents which we produce & provide include:- Letter of invitation to tender
- Form of tender
- Form of contract, contract conditions and amendments
- Tender pricing documents i.e. Bills of Quantities, Schedule of Quantities / Rates (or contract sum analysis on design and build projects)
- Schedules of work daywork rates
Pricing documents prepared by our practice have the following uses, and these are borne in mind by the Quantity Surveyor during their preparation:
- Valuations for interim certificates
- Valuation of variations
- Cost analysis for use in future approximate estimating
- Final accounting
- Quality by reference to the trade preamble clauses
- Cost information
- Provides a good basis for cost planning
Bills of Quantities as a pricing document provide a valuable aid to the pricing of variations, and computation of valuations for interim certificates. Each contractor tendering for the project is able to price the work on exactly the same information with a minimum of effort. This therefore avoids duplication in quantifying the work, and allows for the fairest type of competition.
- Contractor Selection and Appointment
Within the construction industry there are essentially three main ways of selecting a main contractor through
- Selection
- Competition
- Negotiation
Taking into account the Client and projects’ criteria, we will provide advice on contractor selection and appointment for a proposed construction works to ensure that the most relevant and suitable contractor is selected.
Tender ReportingWe would review, check and analyse contractors returned tenders and also interview tenderers, as appropriate, to clarify on any particular matters. A Tender Report will be prepared for the Client with recommendations.
Post Contract
Contract Documentation
After an award of the contract, we will compile and prepare the necessary Contract Documentation and incorporate all agreed alterations that may have been made post-tender. Standard or bespoke Forms of Contract would be completed and we would arrange for the Contract to be signed by the Client and the successful contractor.
Cost Management
The Cost Management services which we provide Clients ensures that the construction works completed on-site are accurately valued and costs are controlled. The post-contract cost management & cost control services include:-
- Valuations of works completed on-site for issuing Interim Certificates
- Advising on cost implications of variations prior to issuing variation orders
- Valuation and agreement of variations in accordance with the terms of contract
- Financial Statements to keep client & architect up to date with the estimated total final cost of the project
- Preparation, negotiation and agreement of final accounts
Cost Control throughout all stages of the design and construction is to ensure that the initial estimate, tender figure and final account sum are all closely related. Periodic financial reports enable clients to anticipate and control their current and future financial project commitments Techniques of Cost Control at various stages of pre-contract include:-
- Cost advice & comparisons of alternative materials and methods of construction
- Cost monitoring & reporting during the construction stage
- Financial statements i.e. monthly cost reports
The Client is kept informed at agreed regular intervals of the project on the financial position of the contract with the updating of Contract Sum in the Financial Statements. The Financial Statements keeps the Client up to date on the current position of Clients expenditure and the probable final cost of the project. It forewarns the Client of any future possible increases or decreases in the cost of the project. Our financial statements will generally include the following items:
- Quotations set against prime cost and provisional sums
- Variation orders issued to the main contractor
- Provisional quantities re-measurement
- Other items pertinent to the contract
Final Accounts deals with the preparation, negotiation and agreement of final account. The final account is prepared in the format most suited for the particular project with the original contract sum as the starting point to ensure:-
- Clear statement showing the contract sum followed by all necessary adjustments to that sum
- Prepared in accordance with the terms and conditions of the relevant contract
- All items fully assessed and adjustments made for variations, provisional sums, re-measured works etc
- Loss and expense claims / reimbursement accurately assessed and included
- Fluctuations where applicable are included
- Confirmation of the contractor's agreement to final account figure is obtained in writing
- Architect issues final certificate for final payment to main contractor
About Us
Chartered Quantity Surveyors
No. 16, Jalan Zirkon F7/F
Seksyen 7, 40000 Shah Alam
Selangor Darul Ehsan, Malaysia
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