BOARD OF QUANTITY SURVEYORS MALAYSIA EMBRACE ... - bic.utm.my

COVER QSLINK

Sr Nur Aziz Abu Bakar, CQSDisruptive Technologies – A Threat or

Opportunity for Quantity SurveyingPractices

P. 17

Datuk Sr Charlie Chia Lui Meng, CQSThe Legacy - ConstructionCommercial Management

and QS

P. 20

EMBRACE CHANGEFOR SURVIVAL

PLAIN ANDSMART CONTRACTS

P.22

CONTRACTOR’SREPORT CARD (CRC)

P.24

INNOVATIONIN QSP.27

BOARD OF QUANTITY SURVEYORS MALAYSIA BULLETINISSUE NO 28(1/2019)

BOARD OF QUANTITY SURVEYORS MALAYSIA

17th Floor, Block F,JKR Headquarters,Jalan Sultan Salahuddin,50582 Kuala Lumpur.

Telephone: 603-2696 7999 / 7987 / 7823

Fax: 603-2692 5680Website: http://www.bqsm.gov.my

CONTRIBTORS

QSLINK

DATUK SR CHARLIE CHIA LUI MENG, CQS

PATRON

Sr NORIDAHSHAFFII, CQS

CHIEF EDITOR

EMERITUS PROFESSORSr OMAR MUNIR,CQS

MANAGING EDITOR

ASSOCIATE PROFESSOR Sr Dr. SARAJUL FIKRI MOHAMED,CQS

SECTION EDITOR

Sr NAZIR MUHAMAD NOR, PQS

SECTION EDITOR

Sr Dr. KHAIRIL HIZAR MD KHUZAIMAH, CQS

SECTION EDITOR

Sr MASNIZANCHE MAT, PQS

SECTION EDITOR

Sr SITI MAZZUANA SHAMSUDDIN, PQS

SECTION EDITOR

Sr Dr. NORAZIAN MOHAMAD YUSUWAN, PQS

BQSM SECRETARIAT

EMI AZWAHARUN

BQSMSECRETARIAT

HAZATULLAILA ZAINOL

BQSMSECRETARIAT

NUR MAWARDDAH YAHYA

BQSMSECRETARIAT

AZIDEE AZMAN

QSLINKEDITORIAL COMMITTEE19TH SESSION (2019-2021)

BQSM invites all readers to contribute articles or express their opinion for publication in future issues. However, BQSM reserves the right to edit materials for clarification purposes and has absolute

discretion not to publish any deemed unfit.

Editor’s Note 2Message From President 3Congratulatory Notes And Acknowledgement 5Announcement & Recognition 8BQSM Activities(January - October 2019)

14

Featured Interview 1Sr Nur Aziz Abu Bakar, CQS Disruptive Technologies – A Threat or Opportunity For Quantity Surveying Practices

17

Featured Interview 2Datuk Sr Charlie Chia Lui Meng, CQS The Legacy – Construction Commercial Management And QS

20

Featured Article 1Plain And Smart Contracts

22

Featured Article 2Contractor’s Report Card (CRC)

24

Featured Article 3Innovation In QS

27

Lessons Learnt Adapted from CIDB Construction Law ReportClaim For Payment For Work Done

29

PAQS 2019 Kuching 32Book Review 34

Content

ARTICLES AND OPINION CAN BE FORWARDED TO:

PUBLICATION & IT COMMITEEBOARD OF QUANTITY SURVEYORS MALAYSIA17TH FLOOR, BLOCK F, JKR HEADQUARTERSJALAN SULTAN SALAHUDDIN50582 KUALA LUMPUR

Assalamualaikum wrm wbth and Salam Sejahtera

Our theme for this issue is Embrace Change for Survival. Change is inevitable, but quantity surveyors must try to embrace these persistent ups and downs and learn to thrive on this era of disruption in which powerful global forces are changing how we live and work. With the advent of the Fourth Industrial Revolution (4IR), quantity surveyors increasingly need to embrace technological advancement so that we remain competitive and thrive in the international arena. It is imperative to embrace digitisation and technological disruptions to transition from being a labour-driven industry to one that is more efficient and data-driven.

In our cover features, given the rapid pace of change in technology and the fierce competitive environment

in a globalised construction industry, Sr Nur Aziz Abu Bakar examined the disruptive technologies and its relation to QS practices.

I t is also high t ime for quanti ty surveyors to explore into different par ts o f the cost management processes especially in venturing into property and oil and gas industries as highlighted by Datuk Sr Charlie Chia in his recent interview. In addition, Associate Professor Sr Dr. Noushad Ali Naseem Ameer Ali in his article asserts that smart and plain contracts adopting modern methods such as artificial intelligence will improve construction contracts administration and minimise formal disputes and increasing higher productivity.

This issue is filled in with great photos of BQSM activities such as CPD seminars, workshops and technical visits. The most memorable event was

EDITOR’S NOTE

PAQS held in Kuching Sarawak which managed to gather more than 550 delegates from 14 countries across the globe.

We would like to extend our sincere gratitude and appreciation for all of the hard work and dedication provided by BQSM Board members (2017/2019). We are very pleased to welcome newly appointed BQSM Board Members (2019/2021). We anticipate that your skills and experience would be an asset to our Board and for the betterment of the QS profession. We sincerely trust that you will have as much pleasure reading this edition of QSLINK Bulletin as much as we have enjoyed compiling this for you, our dear BQSM members and readers.

Happy Reading!

Emeritus Professor

Sr OmarMunir, CQS

2

QSLINK ISSUE 2019MESSAGE

MESSAGE FROM PRESIDENT

Assalamualaikum wrm wbth and Salam Mesra

The year 2019 is coming to an end soon. In 2018, the construction industry went through a challenging period with the review of several mega projects, However as predicted, the momentum of growth in the construction sector in 2019 saw some positive developments that appeared to help revitalize the construction industry in this country. Although the construction industry only contributes to about 5% of the economy, its importance as a catalyst to the development of other sectors cannot be underestimate.

As has been the case in recent years, the advent of the Industrial Revolution 4.0, which emphasise technological and innovative aspects of reducing the dependence on manpower, is having an impact on all sectors in this country, and the construction industry is no exception. The Industrial Revolution 4.0, which generally involves various new technologies such as automation, big data, simulations, systems integration, the Internet of Things (IoT), robotic applications and so on, appears to be capable of accelerating the development of the modern world. Indeed, the advent of the Industrial Revolution 4.0 presents a new challenge for all sectors to work together to make changes so as to remain competitive. Looking at the tide of change in the modern world at present, a career as a Quantity Surveyor is also seen as being in line with this digital transformation. To cope with the current trend of modernization, Quantity Surveyors need to equip themselves with knowledge and skills so as to adapt their career to rapidly emerging technologies.

In line with the changing economic landscape and technological developments in the world, the Board of Quantity Surveyors Malaysia (BQSM), as a professional body that promotes and safeguards the quantity surveying profession in Malaysia, is committed in providing various courses and training programmes aimed at equipping participants with information and at enhancing their knowledge and competence in facing the changes that are taking place, not only in the construction sector but also in the world in

Adjunct Professor

Dato’ SrAziz Abdullah CQS

3

QSLINK ISSUE 2019 MESSAGE

general. The programmes and courses that were organized were not only targeted for Quantity Surveyors but also students and academicians in the field of quantity surveying, both nationally and internationally. Some of the other programs organised by the BQSM up to the third quarter of 2019 are the Pacific Association of Quantity Surveyors Congress (PAQS), International Quantity Surveying Academic Forum (IQSAF), several series of the Continuous Professional Development courses, BQSM Dialogue and so on.

2019 marks the 23rd year of the organisation of the PAQS, and for the first time, the city of Kuching was selected as the venue for the conference. This year’s PAQS saw the participation of over 500 delegates from within and outside the country, and this was also the largest number of participants in the history of this event. My congratulations to the organizers of the PAQS 2019, namely, the Royal Institution of Surveyors Malaysia (RISM) and the Board of Quantity Surveyors Malaysia (BQSM), for successfully organizing the PAQS 2019 with its very interesting theme - Human Wisdom Amidst Emerging Technologies.

In addition, this year, as in previous years, BQSM in collaboration with Universiti Malaya, has organized the PQRS; (Programme for QS Registration Scheme), which is aimed at engaging Provisional Members to upgrade their membership to the level of Professional Members. As a sign of their commitment and efforts to increase the number of Professional Members (PQS), the PQRS theme for this year is #pqsmatters. This annual event was held at the Dewan Tunku Canselor, Universiti Malaya on 22 October 2019.

I would also l ike to take this opportunity to express my deepest appreciation and gratitude for the dedicated service provided by the members of the 18th Session of the Board, who completed their term of service in February. Your kindness and devotion are etched forever in our hearts. We welcome the new Members of the Board for the 19th Session (2019-2021), and we wish you well in your service. Your contribution of constructive ideas and thoughts all most welcome. Let us work together with full dedication and commitment!

Finally, on behalf of the Members of the BQSM Board and the QS Link Editorial Committee, I would like to wish all the very best to everyone. Let us end the year 2019 successfully and excellently, and hopefully, we will meet again for the next edition. Let us welcome the year 2020!

It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change

Charles Darwin

4

QSLINK ISSUE 2019MESSAGE

“Management Is Doing Things Right.

Leadership Is Doing The Right Things”

Peter Drucker

We would like to extend our sincere gratitude and appreciation for all of the hard work, dedication and leadership provided by the Board of Quantity Surveyors Malaysia (BQSM) committee members Session 2017-2019.

SPECIAL ACKNOWLEDGEMENT

5

QSLINK ISSUE 2019 CONGRATULATORY NOTES & ACKNOWLEDGEMENT

Congratulations!Adjunct Professor

Dato’ Sr Aziz Abdullah,

CQSfor the appointment as

PresidentBoard OfQuantity

SurveyorsMalaysia

For the term 2019-2021

6

QSLINK ISSUE 2019CONGRATULATORY NOTES & ACKNOWLEDGEMENT

Congratulations to THE NEWLY APPOINTED

BOARD MEMBERS OF BQSM (2019-2021)

President : Adjunct Professor Dato’ Sr Aziz Abdullah, CQSRegistrar : Sr Noraisah Kadirin, CQSSecretary : Sr Jamisah Ibrahim, CQSBoard Members : Sr Nik Zainal Alam Hasan, CQS Sr Amran Mohd Majid, CQS Sr Maselawati Shamsuddin, CQS Sr Isabel Sim Tseu Yu, CQS Sr Dainna Baharuddin, CQS Sr Noridah Shaffii, CQS Sr Mohamad Shazali Sulaiman, CQS Sr Rogayah Yunus, PQS Sr Kamarudin Sulaiman, CQS Assoc. Prof. Sr Dr. Lim Yoke Mui, CQS Sr Mohd Sahak Surip, CQS Sr Roziyah Ismail, CQS Sr Muhamad Zulazhar Mohd, CQS Representatives from Other Board : Ir. Sundraraj A/L A. Krishnasamy (Representing Board of Engineers Malaysia)

Ar. Mustapha Mohd Salleh (Representing Board of Architects Malaysia)

7

QSLINK ISSUE 2019 CONGRATULATORY NOTES & ACKNOWLEDGEMENT

STATISTICS OFREGISTRATION

Registration From Year 2016-2018

Y20176

Y201837

Y2017788

Y2018826

Y2017705

Y2018691

Y20161946

Y20172135

Y20182287

Quantity SurveyingTechnologist (QST)

Consultant QuantitySurveyor (CQS)

Professional QuantitySurveyor (PQS)

Provisional QuantitySurveyor (PVQS)

Note : Consultant Quantity Surveyors, Professional Quantity Surveyors and Quantity Surveying Technologist were introduced since 2017 due to the implementation of QS Act 487 (Amendment) 2015.

New Registration June 2018 – Sept 2019

STATISTICS OF NEW INDIVIDUALREGISTRATION

STATISTICS OF NEWREGISTERED QS PRACTICES

1435(85%)

60(4%)91(5%)108(6%)

■ Quantity Surveying

Technologist (QST)

■ Provisional Quantity Surveyor (PVQS)

■ Consultant Quantity Surveyor (CQS)

■ Professional Quantity Surveyor (PQS)

■ Sole Proprietor (FS)

■ Body Corporate (FC)

■ Multi-Disciplinary (FM)

13(50%)

3(12%)

10(38%)

8

QSLINK ISSUE 2019ANNOUNCEMENT & RECOGNITION

YEAR 2018

1. BIZREKA GROUP SDN BHD

2. GABUNGAN JURUKUR BAHAN SDN. BHD.

3. DCC CONSULT SDN BHD

4. ITQAN QS SDN BHD

5. VERTEX QS CONSULT SDN BHD

6. YQS CONSULTANCY SDN BHD

7. SR EXPERT PRACTICE SDN. BHD.

8. QSUN QUANTITY SURVEYORS SDN BHD

9. PQS KONSULTANT SDN BHD

10. RM QS CONSULT

11. ZULOTHMAN QS CONSULT

12. ISRAK QS CONSULT

13. PERUNDING UKUR BAHAN PS

YEAR 2019

1. H QS CONSULT

2. WSUQS SDN BHD

3. RD QS CONSULT

4. SLQS CONSULT SDN BHD

5. NBM QS CONSULT

6. HAW QS CONSULT

7. ZUL-QS.CONSULT

8. BKQS CONSULT SDN BHD

9. AMN COSTING CONSULTANT

10. QYN QS CONSULT

11. QUBIC QS CONSULT SDN BHD

NEWLY REGISTEREDCONSULTING QUANTITY SURVEYING PRACTICES

(CQSP)

9

QSLINK ISSUE 2019 ANNOUNCEMENT & RECOGNITION

YEAR 20191. CHEONG GUO UNN2. MIRACLE LIAM WEE LIT3. ‘AFIF SHAPIAI4. SHIRLEY C LIYUNG5. NUR YUSRINA MUHAMMAD HASMI6. LUQMAN A ZAMANI7. FATIN LIYANA KAMARUDIN8. CHONG PHUI HOONG9. MOHD AZIZI IBRAHIM10. EVELYN TEOH CHING TING11. WONG YEE VERN12. HASSAN BERO13. NOR FAZREENA MOHAMAD ZAKI14. ANNELINE EUGENIE ROBINSON STABAL15. SHAMSIDA SAIDAN KHADERI16. ANI SAIFUZA ABD SHUKOR17. SITTI DIANA TAMJEHI18. NORAZIAH WAHI19. ANIS SAZIRA BAKRI20. SHAMSULHADI BANDI21. HAJAR MARYAM MOHAMED HASHIM22. LIM TZE SHWAN23. SITI HAIZAN AZMI24. MOHAMAD NOOR AFFENDDY MISMAN25. POH KOON POO26. MOHD REEZA YUSOF27. LEONG LAI YEE28. CHEAH KEA SUE29. SITI ‘AZURA BINTI MOHD SAIFULLAH30. MUHAMMAD FAZLISHA SHAHARIZAN31. IKHWAN KAMARUL ABD. MANAN@ABDUL

JALIL32. MOHD FARID OMAR33. TEE WEI KIN34. WONG TECK ING35. FONG MEI LING36. MOHAMAD ASHMUNI HAJI HUSSAIN37. NURUL AZNA AZMAN38. KUO HUA LING39. ABD RAZAK ALI40. MOHAMED ABD NAIM MOHAMED NAWI41. TAN CHUNG YONG42. FARAH AIN ZAINUDIN43. ONNY IRIAWAN OTHMAN44. PUTERI NUR FARAH NAADIA MOHD FAUZI45. NUR FARIHA HAMZAH46. SITI NABILAH ABDULLAH47. YOW LI PING48. NORAZLIN MAT SALLEH49. SITI KHADIJAH SABAR 50. MOHD HELMI ZAKARIAH

51. LIAW KOK CHENG52. HEW WEI GIAN53. SOO KOK FUIE54. MOHD FAIZAL ABD RASHID55. HASBULLAH SHAFIE56. MOHD KHAIRUL FITRI OTHMAN57. TAN CHEE LIM58. SUPARDI LANUS59. LIM VIN PEI60. NUR ATHIRAH ZAINAL ARIFFIN61. HARYATI MOHD ISA62. WONG BEE CHIAN63. WAN MOHD NURDDEN WAN MUHAMMAD64. NOR AZLINDA BINTI MOHAMED SABLI65. LIM LI FEN66. NG YEN FAH67. ADDEY SHAM BAHARIN68. MOHD NASIR HASHIM69. MOHAMAD FAIRUZ KIPRAWI70. FIONA WONG ZHEN YI

YEAR 20181. AHMAD FAIZ ABD RASHID2. AIDATUL AKMAL MUHAMAD3. ASMAH ALIA MOHAMAD BOHARI4. BETTY BONG YIAN CHYN5. CHEONG SOO MEE6. CHIN WEI MIN7. FARHAN MD DAHLAN8. FAZIDAH ZAINAL ABIDIN9. FRAULINE ANAK ENGKAMAT10. GAN HOCK LEONG11. GOH CHUAN YANG 12. GOKULAKUMAR A/L BALA KRISHNAN13. HAZALAN HARON14. HO JUNE KHAI15. IMRAN MOHD YUSOP16. INTAN IDAYU MOHAMAD17. KHAIRY HADAFI KAMARUDIN18. LEE HONG JONG19. LIM HOCK KEE20. LIM SING LING21. LOH WAI JENG22. LYDIA CHIONG CHEW LIAN23. MADIAH EMBONG24. MIERANIE WATIE SHAHARUDIN25. MOHAMMAD AZLAN KAYAT26. MOHAMMAD NOR RAFIQ JUNAIDI27. MOHD MAZLY MAHANI28. MOHD YUSOFF DAUD29. MOHD ZULHUSNI HASBULLAH30. NOOR ASHIMA SHAHIMI31. NORAZIAN MOHAMAD YUSUWAN32. NUR RAFIDAH HAMDAN33. NURUL JALILAH HABSAN34. ONG CHEN CHEAK35. OOI POH SIANG36. RIDZUAN MOHAMED RADZI37. ROSHIDI ROSLI38. ROSSITA KARTIMON39. RUAIDAH IDRIS40. RUZIDA HASSAN41. SITI FADZILAH ZAINUDIN42. SITI HAJAR AB. SAMAD43. SITI MAZZUANA SHAMSUDDIN44. SUHAIRI NGAH45. SYED RIDZUAN SYED RAINUDDIN46. TEH BIN SIN47. WAN HUZAIMI WAN ABDULLAH48. WOO KAH KHEONG49. ZAIDATULNAIM IDRIS

NEWLY REGISTEREDPROFESSIONAL QUANTITY SURVEYORS

(PQS)

11


LIST OF BQSM ACCREDITEDQUANTITY SURVEYING PROGRAMME

NO. LOCAL PROGRAMME ACCREDITATION PERIOD

1. UNIVERSITI TEKNOLOGI MARA (UiTM) SERI ISKANDARBACHELOR OF QUANTITY SURVEYING (HONS) 9.9.2018 – 8.9.2023

2.UNIVERSITI SAINS MALAYSIABACHELOR OF SCIENCE (HOUSING, BUILDING & PLANNING) (HONOURS) (QUANTITY SURVEYING)

INTAKE 2019 / 2020 – 2023 / 2024

3. UNIVERSITI TEKNOLOGI MARA (UiTM) SHAH ALAMBACHELOR OF QUANTITY SURVEYING (HONS)

INTAKE 2019 / 2020 – 2023 / 2024

4. INFRASTURCTURE UNIVERSITY KUALA LUMPURBACHELOR OF QUANTITY SURVEYING (HONS) 18.6.2019 – 17.6.2022

5. UNIVERSITI TUNKU ABDUL RAHMAN (SG. LONG CAMPUS)BACHELOR OF SCIENCE (HONS) QUANTITY SURVEYING 20.1.2017 – 21.1.2022

6. TAYLOR’S UNIVERSITYBACHELOR IN QUANTITY SURVEYING (HONS) 20.1.2016 – 19.1.2021

7. LINTON UNIVERSITY COLLEGEBACHELOR OF SCIENCE (HONOURS) IN QUANTITY SURVEYING 28.8.2018 – 27.2.2021

8. UCSI UNIVERSITYBACHELOR OF QUANTITY SURVEYING (HONS) 28.2.2018 – 27.2.2021

9. UNIVERSITY OF READING MALAYSIABSc (HONS) QUANTITY SURVEYING 20.7.2018 – 19.7.2021

10. UNIVERSITI MALAYSIA SARAWAKBACHELOR OF QUANTITY SURVEYING (HONS) JULY 2018 – JULY 2021

11.IMPERIA COLLEGE (formerly known as IMPERIA Institute Of Technology)BSc (HONS) QUANTITY SURVEYING & COST MANAGEMENT (3+0) IN COLLABORATION WITH LIVERPOOL JOHN MOORES UNIVERSITY

19.12.2019 – 18.12.2021

12. HERIOT WATT UNIVERSITY MALAYSIABACHELOR OF SCIENCE IN QUANTITY SURVEYING 20.2.2017 – 19.2.2020

13. SEGi UNIVERSITYB.SC. (HONS) QUANTITY SURVEYING 5.9.2018 – 4.9.2020

14. INTI INTERNATIONAL UNIVERSITYBACHELOR OF SCIENCE (HONS) QUANTITY SURVEYING 9.9.2018 – 8.9.2020

15. UNIVERSITI TEKNOLOGI MARA (UiTM) SAMARAHANBACHELOR OF QUANTITY SURVEYING (HONS) SEPT 2018 – SEPT 2020

16. UNIVERSITY COLLEGE OF TECHNOLOGY SARAWAKBACHELOR OF QUANTITY SURVEYING (HONS) 29.10.2018 – 28.10.2020

12

QSLINK ISSUE 2019ANNOUNCEMENT & RECOGNITION


NO. LOCAL PROGRAMME ACCREDITATION PERIOD

17. TUNKU ABDUL RAHMAN UNIVERSITY COLLEGEBACHELOR IN QUANTITY SURVEYING (HONS) 17.12.2018 – 16.12.2020

18. UNIVERSITI TEKNOLOGI MALAYSIA (SPACE) BACHELOR OF QUANTITY SURVEYING - PART TIME STUDY ONLY 5.10.2014 – 28.10.2019

19. UNIVERSITI TEKNOLOGI MALAYSIABACHELOR OF QUANTITY SURVEYING - FULL TIME STUDY ONLY 5.10.2014 – 28.10.2019

20. UNIVERSITI MALAYABSc (HONS) IN QUANTITY SURVEYING 1.1.2015 – 31.12.2019


NO. FOREIGN PROGRAMME ACCREDITATION PERIOD

1. LIVERPOOL JOHN MOORES UNIVERSITYBACHELOR OF SCIENCE (HONS) IN QUANTITY SURVEYING 21.7.2016 – 20.7.2021

2. UNIVERSITY OF PORTSMOUTHBSc (HONS) QUANTITY SURVEYING 3.5.2015 – 2.5.2020

3. UNIVERSITY OF READINGBSc (HONS) QUANTITY SURVEYING 3.5.2015 – 2.5.2020

4. SHEFFIELD HALLAM UNIVERSITYBSc (HONS) QUANTITY SURVEYING 26.6.2015 – 25.6.2020

5. HERIOT WATT UNIVERSITYBSc (HONS) QUANTITY SURVEYING 1.9.2015 – 31.8.2020

6. UNIVERSITY OF THE WEST OF ENGLANDB.SC. (HONS) IN QUANTITY SURVEYING & COMMERCIAL MANAGEMENT 1.9.2015 – 31.8.2020

7. NORTHUMBRIA UNIVERSITYBACHELOR OF SCIENCE (HONS) QUANTITY SURVEYING 26.10.2016 – 25.10.2019

8.CURTIN UNIVERSITY OF TECHNOLOGYBACHELOR OF APPLIED SCIENCE (CONSTRUCTION MANAGEMENT & ECONOMICS) – For Internal Full-Time Mode of Study Only

17.12.2014 – 16.12.2019

13


CPD : YOUR 50 CONSTRUCTION CONTRACT FAQ16 January 2019 | Premiera Hotel, Kuala Lumpur CPD : BENGKEL PENILAIAN DAN

PENILAIAN TUNTUTAN KONTRAK (WORKSHOP & ISSUES IN CONTRACTUAL CLAIMS6 – 7 March 2019 | Premiera Hotel, Kuala Lumpur CPD : PRACTICAL AND LEGAL ISSUES PERTAINING TO PAYMENT IN CONTRUCTION PAYMENT(PWD 203 & 203A)19 – 20 March 2019 | Riverside Hotel,Kuching, Sarawak

TIER-II EXAMINATION BRIEFING JULY SESSION 20191 July 2019 | Ministry of Works, Kuala LumpurACCREDITATION VISIT TO INFRASTRUCTURE UNIVERSITY KUALA LUMPUR16 – 17 July 2019 | Infrastructure UniversityKuala Lumpur (IUKL) CPD : KNOW YOUR TERM OF CONTRACT – PAYMENT, EXTENSION OF TIME, VARIATION AND TERMINATION17 – 18 July 2019 | Premiera Hotel,Kuala Lumpur PREPARATION OF THE CRITICAL ANALYSIS REPORT WORKSHOP 201927 July 2019 | RISM BuildingTIER-II EXAMINATION CQS JULY SESSION 201929 July 2019,Ministry of Works, Kuala LumpurACCREDITATION VISIT TO NOTTINGHAM TRENT UNIVERSITY, UNITED KINGDOM30 – 31 July 2019, Nottingham Trent University (NTU), United Kingdom

JAN

APR

JUL

MAR

JUNMAJLIS PENYAMPAIAN SIJIL PROFESSIONAL LJBM TAHUN 2018/201924 Jun 2019 | Premiera Hotel Kuala Lumpur

CPD : BEST PRACTICE FOR S.O AND P.D IN CONTRACT ADMINISTRATION22 – 23 April 2019 | The Klagan Hotel, Kota Kinabalu, Sabah

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QSLINK ISSUE 2019BQSM ACTIVITIES (JAN-OCT 2019)

BQSMACTIVITIES

CPD : LEGAL ISSUES IN ADJUDICATION6 – 7 August 2019, Premiera Hotel,Kuala LumpurICT STRATEGIC PLAN BRIEFING14 August 2019, KKR2 TOWERANNUAL DIALOGUE SESSION 201925 August 2019, Dewan Tunku Abdul Rahman (DeTAR), UNIMAS

ACCREDITATION VISIT TO UNIVERSITI TEKNOLOGI MARA (UiTM) SHAH ALAM12 – 13 September 2019, UiTM Shah Alam ACCREDITATION VISIT TO UNIVERSITI SAINS MALAYSIA19 - 20 September 2019,Universiti Sains Malaysia CPD : ISU-ISU PRAKTIKAL & PERUNDANGAN BERKENAAN BAYARAN DALAM KONTRAK BINAAN (CIPAA)24 – 25 September 2019, Grand Continental Hotel, Kuala Terengganu, Terengganu

AUG

SEP

OCTCPD : ARBITRATION ISSUES IN MALAYSIA CONSTRUCTION INDUSTRY14 October 2019, Premiera Hotel, Kuala Lumpur BENGKEL PANEL PENILAI AKREDITASI PROGRAM IJAZAH & DIPLOMA UKUR BAHAN / SIRI 215 October 2019PROGRAMME FOR QS REGISTRATION SCHEME(PQRS 5.0)22 October 2019, Universiti Malaya

15

QSLINK ISSUE 2019 BQSM ACTIVITIES (JAN-OCT 2019)

BQSMACTIVITIES

Has Been Certified

ISO 9001:2015By

LEMBAGA JURUUKURBAHAN MALAYSIA

BOARD OF QUANTITYSURVEYORS MALAYSIA

ACHIEVEMENT

QSLINK content editor, Sr Masnizan Che Mat and Sr Nazir Muhamad Nor had the privilege of interviewing Sr Nur Aziz, Mr Sean Chong Kong Yoong and Mr George Wong Hong Chong of JUBM/ Arcadis IT team. JUBM/Arcadis is now working on enhancing productivity in design and construction, researched on Computational BIM, virtual reality and other productivity enhancement topics.

1. How should a QS Consulting Practice (CQSP) change their current practice to incorporate disruptive technology? What do you think?

Disruptive technology is an innovation that signif icantly alters the way consumers, industries or businesses operate. It sweeps away the old system or habits. QS profession is influenced by technology breakthroughs and the use of ICT has increased opportunity for globalization within the construction industry.

FEATURED INTERVIEW 1Distruptive Technologies - A Threat orOpportunity for Quantity Surveying PracticesSr Nur Aziz Abu Bakar, CQS

Sr Nur Aziz Abu Bakar (CQS, FRISM, MRICS) started his career with JUBM Sdn Bhd in 1988 as a Project Executive and was appointed as the Director of JUBM in 2001. JUBM and its sister company Arcadis often injects electronic measurement approach and BIM integration into their work to achieve project efficiency.

JUBM has always been in the forefront when it comes to adopting new technologies. Since the 1990s, when most of the QS firms were still doing their works traditionally, JUBM and its associate companies has developed and maintained a suit of in-house innovative software, tailored specifically for quantity surveying task. Our “DalasNet” provided a secure intranet workspace for communication and know ledge managemen t . The “AtlesPro” and “L10Pro” are respectively BQ and e-tendering

software that enhance speed and accuracy in QS works. Since then, we have been exploring with different types of software.

When BIM was introduced, we decided to move into a paradigm shift from our traditional practice to disruptive technology. We started BIM on a few projects. Adopting change is always a challenge, we however has managed to pull it through. It was indeed a learning curve for everyone.

17

QSLINK ISSUE 2019 INTERVIEW

2. Moving from traditional way of doing things to the digitalization using all the latest technology, in your opinion what is the hurdles or the obstacles?BIM has existed for more than 20 years, but its adoption by the construction industry was not favourable due to cost and limitation of knowledge.

It is always the mindset, for example in the office we have different type of users i.e. traditional users and users among the new generation. For those traditional users we have no choice but to embark into a paradigm shift; to slowly introduce to them what is technology all about and how technology can help them with their work.

There is always advantages and disadvantages when it comes to technology. And this is what we would like to address. We have been through into the paradigm shift process and had gained experience from there. After 4 to 5 years of implementation and venturing into this journey, we are currently reviewing the business processes. What do we missed-out? What did we learn? What are the disadvantages that we went through? We need to correct them and come out with solutions.

3. You did mention that the new generation are technology savvy. Do you think we need to review the current QS syllabus to create readiness towards disruptive technology? Do you think that the current syllabus is sufficient or there is a need to incorporate new elements, be it local or international program?In my opinion, there’s no one syllabus that can prepare students to be industry ready. Different university will have different teaching philosophy. Some are s t i l l very t rad i t iona l while others are inclined towards management-oriented approach, where minimum teaching hours are spent on measurement subject. Different university would aim to prepare their students for a different niche. In reality, universities should prepare their students to meet the current needs as well as anticipate future needs.

For a CQSP, measurement and preparation of Bills of Quantities are an important part of QS services. We believe that students should be proficient in the area of digital measurement, Revit and have strong construction technology knowledge. In JUBM, we conduct in-house training programs where we train and upskill our new employees particularly in the area of digital measurement and BIM competencies. In the next few years we should be 100% BIM.

4. People always see that the most remarkable change brought by disruptive technology is the increased in efficiency of QS productivity. Do you think that this could lead to an adoption of flexible working hours at the workplace? The use of new technology has changed the way we perform our routine. Financial and time investments are required to develop new skills through staff training and upskilling in order to meet the current and future needs.

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To take advantage of the growing technology, JUBM has been exploring ideas for a change in our working environment such as implementation of flexi working hours, working from home, hot desking, possibility of alternate Friday off etc. We hope to implement some of these ideas in the near future.

We need a paradigm shift and change in the people’s mind set.

5. Do you think that disruptive technology will create more job opportunities?The QS scope of works and roles are continuously evolving and disruptive technology has created new job opportuni t ies such as business advisory etc.

The best opportunity for Quantity Surveyors is in the area of algorithms through the form of software which automates the process. While I believe human will always be involved in the process, much of the traditional QS way of doing things will be automated.

6. Any advice for future QS?

There wil l always be a need for Quantity Surveyors and Cost Managers but thanks to digital disruptions. The skill required in the future will be different from the current ones. It will be a challenge for the older generation to keep up with the technologies and future expectations compared with the young digital savvy Quantity Surveyors.

Technology keeps on changing rapidly. Nowadays everyone is hungry for data. People want to capture as many data as possible so that they can use the Artificial Intelligence to perform predictions etc. If the processing power is fast enough with the huge amount of data collected, it is possible that one day through machine learning, the routine Quantity Surveying job will be placed by hardware and/or software.

“There will always be a need for Quantity Surveyors and Cost Managers but thanks to digital disruptions, the skill set required in the future will be different from the current ones.”

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FEATURED INTERVIEW 2The Legacy - Construction Commercial Management And QS

Datuk SrCharlie Chia Lui Meng, CQS

QSLINK Managing Editor, Associate Professor Sr Dr Sarajul Fikri Mohamed had the privileged of interviewing him. Datuk Sr Charlie is now working on improving construction contract management new project development with UMLand. Datuk Sr Charlie Chia shares his perspective on Commercial Management Construction: Challenges and Opportunities

1. Could you please briefly explain about yourself?

I g radua ted w i th Bache lo r o f Quantity Surveying from UTM. I then started my professional career as an quantity surveyor at JKR and worked for 18 years in several key QS sectors. Later, I joined UMLand as General Manager, involved in mixed development such as housing, commercial and infrastructure. In 2008, I joined a Vietnamese Developer and was directly involved in overseeing construction projects in Vietnam. In 2012, I was appointed Group CEO of UMLand and retired in 2016. I remain as a non Executive Director in a number of UMLand companies. On professional development, I received

my LLB Honours degree from the University of London in 1994. I was obtained my CLP in 1995 and was admitted into the Malaysia Bar in 2017.

2. Your company is considered one of the pioneers Master Developer in Malaysia; can you share with us on how you embark into housing project development?

After almost 18 years working as quant i ty surveyor in the publ ic sector and 2 years as a construction contractor, I am determined to change my career to real estate development. In the early days, the majority of real estate developers in Malaysia had no set up for contract and cost management in their organisation.

Af ter 20 years in QS pract ices for public sector and contracting company, I have decided to venture into property development industry. A lot of real estate developers do not have a proper QS division to provide cost management and contract

management services throughout the project life cycle. My ultimate aim was to provide a comprehensive QS services especially contract management and cost control division. Currently QS practices in real estate development are dealing with procurement works, calls for tender, selection of contractor, planning for contract suppliers for major materials such as sanitary fittings, steel reinforcement, ready mixed concrete etc.

3. What do you think is the greatest challenge faced by Malaysian housing developers through Government policies changes?

One of the challenges that influence the growth of housing development firms is the governance and policies

Datuk Sr Charlie Chia Lui Meng, CQS is highly experienced in Property Management and Quantity Surveying and often introduces commercial management approaches into his work to achieve to project profitability. He has a CLP and is knowledgeable in construction claim and disputes.

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compliances. It is estimated that about ten to fifteen percent of the total gross construction costs is attributed to a range of pertinent and critical laws that should be complied (i.e. Uniform Building by Law 1984 (UBBL), Environmental Quality Act 1984, Local Government Act 1976, Street, Drainage and Building Act 1974 (Act 133). However, government policy also benefits developers and home buyers in Malaysia. For example the adoption of Industrialized Building System (IBS) will not only help meet the required quality of final building products but will reduce its dependency on foreign workers.

4. There is a shortage of affordable housing in Malaysia with only a quarter of houses launched nationwide from 2016 to March 2018 priced under RM250,000. What is your company strategy to support Malaysian government initiatives on affordable housing?

Residential property can only be categorized as an affordable unit if it fits these three criteria; priced under RM250,000, with a minimum 800 square feet and at least two bedrooms. Therefore, developers need to implement cross subsidies from other types of development projects to meet these criteria. In my opinion, Government needs to create a single agency for management of affordable housing to ensure it meets Malaysian

Quantity surveyors are often seen as the “accountants” of the construction industry as they advise on, measure, quantify and calculate construction related costs. In my opinion, skills of measurement are still relevant to produce a good cost advice on costing, estimation and f inal account. For example in property development, QS needs to use the basic knowledge and skills in measurement to perform reverse performance evaluation in helping property developers to evaluate the cost of a product against land costs to forecast and control project profitability. In general, QS profession is very versatile, methodological and flexible and can venture to other sectors such as banking, project management and oil and gas industry.

7. Last, but not least, what advices can you give to young QS to become a good commercial manager.

Commerc ia l Management i s a new serv ice tha t needs to be explored by the new generation of QS. Commercial managers are construction professionals who are very knowledgeable and well vested with construction cost management, project procurement and project management and able to evaluate, select and manage the various types of construction procurement and their associated costs and financial risks.

government initiatives. Location is a major factor and the low cost of land and the development of affordable housing should be connected with ef f ic ient and systemat ic publ ic transport such as MRT and BRT system.

5. Please share with us some of the projects you are currently working on especially on the commercial management aspects you were considered in achieving project profitability as Developer?

The QS profession is a wide-ranging profession in terms of cost and procurement management required in the real estate business development activities. This means they are involved, often on the site, through to the completion of construction, keeping a constant eye on the budgetted and actual costs, as well as being required to react quickly to problems and changes in specifications with updated costings and feasibility reviews. During the construction process, quantity surveyors offer an invaluable cost planning and commercial management role to track budgets and financial performance.

6. QS is very much stereotype in doing their businesses and lacking in innovation in promoting their services. What is your opinion in making QS profession relevant in other industries? Please comment.

“In general, quantity surveying profession is very versatile, methodological and flexible and

can venture to other sectors such as banking, project management and oil and gas industry”

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MALAYSIA’s construction industry growth may have slowed from 6.7% in 2017 and 4.9% forecasted for 2019 but it is still a vital pillar of the economy with a significant role in driving the nation towards developed status. From the basic skills used during its

infancy in the 1950s to the latest technologies revolutionising the business of building, the industry has evolved tremendously.

Today’s technologies cover augmented reality, robotics, drones, real-time collaboration software, green and sustainable practices, mobile and IoT adoption, modular construction, smart buildings, and if research progress rapidly enough, in the not too distant future - smart contracts using blockchain technology. The speed of construction, better quality, cost efficiency and sustainability have been vastly improved through systems like the Industrialised Building Systems (IBS) and Building Information Modelling (BIM).

Despite the advances, the industry is still fraught with problems, including questionable project awards, poor workmanship, unsafe work environments, and manpower shortages.

FEATURED ARTICLE 1 PLAIN AND SMART

CONTRACTSADAPTED FROM CIDB MAGAZINE

CONSTRUCTION BEYOND 2020 : ICW 2019 HIGHLIGHTS

Associate ProfessorSr Dr Noushad Ali Naseem Bin Ameer Ali, CQS

Massey University, New Zealand

A significant and constant issue facing builders and other stockholders alike is contract disputes. This is not surprising given the large number of construction contracts written in traditional language or legalese linking multiple parties. The contents of the agreement are often little understood by the signatories to the contract.

In Malaysia, like many other parts of the world, the number of contract dispute cases in the construction industry are rising yearly. Two years ago, 700 cases were filed with the Asian International Arbitration Centre (then known as the Kuala Lumpur Regional Centre for Arbitration), with the value of claims totally RM1.38 billion. Most can be traced to poorly drafted contracts, resulting in disagreements over financing and costs, delayed payments, quality issues, delays and disruptions, and other contractual and ex-contractual contentions.

“LARGE NUMBER OF CONSTRUCTION CONTRACTS WRITTEN IN TRADITIONAL LANGUAGE OR LEGALESE LINKING MULTIPLE PARTIES. THE CONTENTS OF THE AGREEMENT ARE OFTEN LITTLE UNDERSTOOD BY THE SIGNATORIES TO THE CONTRACT.” – DR NOUSHAD ALI NASEEM

A s s o c i a t e P r o f e s s o r S r D r Noushad Ali Naseem Bin Ameer Ali, a multidisciplinary construction professional with over 30 years of industry and academic experience, suggested how practices could be improved as the industry progressed towards adopting modern methods such as art i f icial intel l igence to administer construction contracts.

Construction contracts must be written in modern plain language, but this should be done without corresponding legal intent. “Make everything as simple as possible, but not simpler,” he said paraphrasing Einstein during his talk on ‘ Vision 2030 - Plain and Smart Construction Contract’ at the recent CIDB, International Construction Week 2019.

Dr Naseem asked, “What is plain English or plain language? I like to take a simple and ‘good sense’ approach or

DESIGN AND BUILD

DESIGN AND BUILD - CONTRACT AND PAYMENT FLOWS

CLIENT

ARCHITECT ENGINEERS QUANTITYSURVEYOR SUB-CONTRACTORS

DESIGN AND BUILDCONTRACTOR

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a common sense approach - which unfortunately is not very common. A plain language contract is one which the parties to the contract and those who have an interest in it can understand the contents easily, ideally on first reading – and possibly upon re-reading.” It should be fundamental right of everyone to only sign a contract only after he/she fully understands the contents.

“And as construction contracts are typically based on standard published forms of contracts, they should not require the services of lawyers to understand the voluminous documents - either before signing or during implementation of the project,” he explained.

Dr Naseem’s view is that contract administrators - as with architects, engineers, and quantity surveyors - should not need lawyers’ services when they prepare

typical tender and contract documents and when administering the contract throughout the construction stage.

Can contracts like construction contracts be written in modern plain language without losing legal intent?

He said his research on construction contracts showed that this is clearly possible. He backed his claim, quoting learned authorities like Emeritus Professor Peter Butt from Sydney Law School, Associate Professor Rachelle Lintao from the Santo Tomas University in the Philippines, Professor Joseph Kimble from the USA, Mark Adler and Martin Cutts from the UK, and the findings of several other researchers.

He said plain language contracts could be drafted more clearly and effectively using two examples that have been accredited as a “Clear English Standard” document by the Plain Language Commission, UK.

One is the Standard Terms of Construction Contracts for Renovation and Small Projects (STCC-RSP 2015) published by the CIDB Malaysia, in collaboration with various professional and trade organisations in Malaysia. The other is a contract for Quantity Surveying Professional Consultancy Services (NZIQS-CQSCS) published by the New Zealand Institute of Quantity Surveyors.

Dr Naseem is also involved in the research of smart contracts that may be administered by machines with little or no human intervention. Smart contracts have embedded codes to enable the instantaneous exchange of money after

TRADITIONAL PROCUREMENT

THE TRADITIONAL PROCUREMENT ROUTE – CONTRACTS AND PAYMENT FLOWS

ARCHITECT

DOMESTICSUPPLIERS

NOMINATED SUPPLIERS

ENGINEERS

CLIENT

MAIN CONTRACTOR

QUANTITY SURVEYOR

DOMESTIC SUB-CONTRACTORS

NOMINATED SUB-CONTRACTORS

services or goods have been delivered instantaneously. This can prevent fraud, undue delays, or interference at any level.

He explained the concept of smart contracts,” Imagine a client has entered into a contract with the main contractor who in turn has multiple contracts with other subcontractors for a project. The quantity surveyor, architect, engineer, contractor, and subcontractors might then do a joint valuation for progress payment on site using a digital device like an iPad.

“A SIGNIFICANT AND CONSTANT ISSUE FACING BUILDERS AND OTHER STAKEHOLDERS ALIKE IS CONTRACT DISPUTES.”

“Upon agreement and authorisation by the relevant parties, payments may then be transferred online, the timing of which could range from being instantaneous to all parties to a date in the future say in 30 days, if so agreed by the parties in the contract. Banks would also be keen to use this technology because it is more efficient, safe, and effective.”

Dr Naseem said the technology would keep all transactions transparent, adding that there will be zero payment delays or defaults if transactions are instantaneous or paid within the contractually agreed time frames. Such eff ic iency would resul t in minimal formal disputes and higher productivity, leaving the parties to concentrate on the quality and timing aspects of their work. This would help construction projects to be completed on time and to the contractually agreed quality.

“ T e c h n o l o g y w o u l d k e e p a l l transactions transparent adding that there wil l be zero payment delays or defaults if transactions are instantaneously or paid within the contractually agreed time frames”

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FEATURED ARTICLE 2:THE CONTRACTORS REPORT CARD: A STEP TO RELIABLE

DECISION MAKINGSr Ida Zuraida Mohd Yusoff, CQS

Construction Industry Development Board (CIDB) Malaysia

In line with the Construction Industry Transformation Programme initiative for Ease of Doing Business, CIDB has embarked on a Strategic Enterprise Resource Planning (ERP) project since the year 2017. The result is the establishment of its first ERP known as the Centralised Information M a n a g e m e n t S y s t e m ( C I M S ) , integrating eight core processes with fifteen external systems to promote a seamless business process for the industry’s convenience. The objective : to facilitate the Ease of Doing Business for stakeholders through the concept of Connected Government and seamless business process integration.

CIMS, housing the core database of the Construction Industry has enabled the creation of a comprehensive informat ion tool on contractors known as the Contractors Report Card (CRC). The CRC consists of company profile, list and status of licensing registrations, SCORE ratings, certifications and awards, information on contractor’s personnel including the list of training and competencies acquired. The CRC also consists of current and past project information as well as the regulatory compliance information (legal and enforcement).

The CRC is meant to gauge the construction companies’ dynamics, providing a fair and justified information

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on contractors’ commercial and technical performance, achievements, expertise, merits and demerits. The objectives of the CRC is to promote a good-practice environment within the Construction Industry through the sharing of transparent and factual information that would serve as a guide in clients’ decision making. It is envisioned that the CRC would help to establish a more effective governance of the industry’s conduct, encourage positive competition, enabling the selection of credible contractors for projects thus increasing the success of projects delivery rate. The CRC is expected to be fully accessible in January 2020.

“Synergy is better than my way or

your way. It is our way”

Stephen Covey

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INTRODUCTIONQuantity Surveyor (QS) work in a diverse range of market conditions – in terms of companies as well as project types. Some major companies may have well-established processes and knowledge of the construction industry and of their project’s requirements, while others may only have limited experience. Hence, quantity surveyors will need to change and adapt their approaches according to the needs of the industry and the market. As such, the flexibility and ability of quantity surveying professionals to evolve with changing market demands are keys to the survival and continuing relevance of the profession. While Artificial Intelligence (AI) and machine learning can greatly increase efficiency, even to the point of replacing many functions within the quantity surveying domain, nothing replaces the human insight and intuitive problem solving abilities.

Nevertheless, the QS profession is desired to be different to what it was even thirty years ago. The construction industry is changing the shape in terms of investment adoption and technology adoption. Privatization over the past thirty years revealed that the share of the public sector’s construction segment has been considerably reduced. Coupled with this, have been strategic changes

FEATURED ARTICLE 3:INNOVATION IN QS

“AUTOMATION AND ARTIFICIAL INTELLIGENCE TECHNOLOGIES

IN QUANTITY SURVEYING PRACTICES”

of technology adoption due to the Third Wave of Internet Revolution. It represents a new era of information and communication technology in which successful organisations will focus on tackling Third Wave verticals or build ‘Deep Tech’ businesses through technological break-throughs like automation and artificial intelligence technologies as shown in Figure 1.

In line with this, the ultimate goal of CITP is to transform the construction industry by 2020 to create highly competent and competitive players for both the local and international construction industry. Quantity surveyors must have complete confidence and the necessary professional acumen to handle increasingly complex and chal lenging global construct ion projects. The CITP strategic thrusts

are supported by several programmes and initiatives in order to achieve the CITP agenda. Steering towards a high-income nation, it is imperative for our construction players to be on par with the technological advancements and new talents in the global construction arena.

Trends of artificial intelligence and automation technologies in construction industryIt is imperative to embrace digitisation and technological disruptions to achieve the transition from being a labour-driven industry to one that is more efficient and data-driven. Industry 4.0 has enabled the quantity surveying profession to enhance the quality of the services to their clients.

Associate Prof. Sr Dr. Sarajul Fikri Mohamed, CQS Universiti Teknologi Malaysia (UTM), Johor Malaysia

Figure 1 : Benefits of Automation Implementation in Construction

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One example is the ability to produce highly accurate Bills of Quantities measurement through tools such as Building Information Modelling (BIM). Through BIM, quantity surveyors are able to automate measurement, speed up the traditional estimating process and update any design changes s imu l taneous l y . Th i s increases the accuracy and efficiency in delivering construction projects. Figure 2 il lustrates ten trends of artificial intelligence and automation technologies shaping the construction industry since 2016 and beyond. Figure 2 : Ten trends of automation technologies shaping the construction

industry

a. Photo Nett II – Project Monitoring SystemThis is an automated real-time monitoring system developed to link time-lapse digital imaging of construction activities, integrating critical path method (CPM) and progress control techniques to display planned versus actual schedules

b. Earned Value Analysis Using Microsoft Project and PrimaveraMicrosoft project and Primavera are project management software that are widely used in the construction industry for planning, and controlling construction activities. Earned Value Analysis defines and monitors three key parameters which include, Planned Value (PV), Earned Value (EV) and Actual Cost (AC).

ConclusionThe recent advances in artif icial intelligences and automation have touched virtually every aspect of construction process including quantity surveying practices. Integrating automation technologies to specifically address real-time construction cost management will improve construction cost performance and drastically remove unnecessary bottlenecks faced by project participants especially quantity surveyors and project design team.

“Through BIM, quantity surveyors are able to automate measurement, speed up the traditional estimating process and update design changes simultaneously”

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Facts of the CaseThe Defendant/Respondent had subcontracted the interior and exterior fit out works in a construction project to the Plaintiff/Appellant. The subcontract was purportedly pursuant to a work order which fixed the contract sum at RM2,614,250.00. The Plaintiff claimed that it had accepted the Defendant’s work order on 28 November 2012 and had commenced work, accomplishing certain preliminary works. After the Plaintiff had completed the mock-up unit for the project in January 2013, the Defendant told the Plaintiff to cease work and thereafter the Defendant unilaterally terminated the Plaintiff’s services without any explanation. The Plaintiff then invoiced the Defendant for work done up to that date, i.e. for preliminary works to the value of RM968,846.00; and for loss of profits. The Defendant refused to pay, hence the Plaintiff sued. The following issues arose for determination: (i) whether there was a contract between the parties and if the answer was in the positive, whether the Defendant was entitled to unilaterally terminate the services of the Plaintiff as subcontractor; (ii) whether the Plaintiff had carried out its preliminary works and whether the Plaintiff was therefore entitled to claim the sum of RM968,846.00. The learned Sessions Court Judge (“SCJ”) had held that the Plaintiff had failed to provide conclusive evidence that the work order had been finalized. The Court was of the opinion that the parties were still at the negotiating stage. That being the case, the SCJ held that there was no issue that the Defendant had unilaterally terminated the Plaintiff’s appointment because there was no valid agreement to begin with. The SCJ had further held that whilst there was clear evidence of work done and that the Plaintiff was entitled to make a claim for such preliminary works, the Plaintiff’s claim of RM968,846.00 was not proven. The SCJ also held that the Plaintiff’s claim was one for “expenses”. The SCJ thus only awarded the Plaintiff nominal damages of RM70,000.00. The Plaintiff appealed against this quantum of RM70,000.00. The Defendant cross-appealed on the grounds that the damages of RM70,000.00 was excessive.

*CLAIM FOR PAYMENT FOR WORK DONE

“KWAN HEE WEE v T MONTBUILDERS SDN BHD”

[2017] 1 CIDB-CLR 134HIGH COURT, KUALA LUMPUR

CIVIL APPEAL NO: 12BC-6-07/2015MARY LIM THIAM SUAN J

22 JANUARY 2016*Adapted From CIDB Construction Law Report 2016

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Held, allowing the appeal and dismissing the cross-appeal:

1. The SCJ’s decision to dismiss the Plaintiff’s claim for the sum of RM968,846.00 and award instead a nominal sum of RM70,000.00 was a Serious misdirection in law and in fact which required appellate intervention to set right.

2. The existence of a contract was actually not in issue; certainly not in the Defence filed. The Defendant’s pleaded case was that the Plaintiff did not do the work as instructed; and that it was not obliged to pay because the work had not been approved by the local authorities; and that the work order could not be relied on as the Plaintiff was proposing changes to it; and that it was not signed. All these were far removed from saying there was no contract between the parties in the first place. Since the pleaded case did not devolve any issue on the question of the existence of a valid contract, but really whether the Defendant had a right to terminate where the Plaintiff was said to have not carried out work according to the work order; or that the work had to be approved by the local authorities, the SCJ had asked the wrong question.

3. The SCJ was in fact presented with ample evidence on the existence of contract. There was the quotation which itemised the details of work for the project and to which the Plaintiff had pegged its price; emails exchanged between the parties on the work order to be issued where the parties were merely deciding whose name to designate for the contract; and the Defendant’s unequivocal instructions to the Plaintiff to carry out preliminary works. A valid contract was established.

4. The claim for preliminary works was not a claim for out-of-pocket expenses. It was a claim for work or services rendered at the preliminary stage; hence, what was termed as “preliminary work” or “preliminaries”. The details of such work were set out in the work order and comprised general matters, materials and samples, pricing, temporary works, contract administration, statutory requirements, particulars of contract conditions, commission and completion; contingencies. The Plaintiff’s claim was for a liquidated sum by measurement to the type and progress of the works required at that particular stage of the works.

5. As the parties had agreed on how the contract price was to be paid, and since for “Preliminaries”, there was plenty of evidence proving that the Plaintiff had carried out works to the value of RM637,500.00, the claim must be allowed. The details of the Plaintiff’s work were properly before the Court and there was not much in challenge or serious challenge by the Defendant. Consequently, the Plaintiff’s claim for RM637,500.00 should have been allowed.

Commentary by:Datuk Sr Chia Lui Meng, CQS, FRISM, MRICS

LLB (Hons), CLPDirector, UM Land Group of Company

IntroductionThis case highlights the formation of contracts and the basis for the contract. In this instance, the Contract Document was a “Works Order” issued by the Main Contractor (Defendant) to the Subcontractor (Plaintiff). The basis for the Works Order was the Quotation submitted by the Subcontractor which listed down the items and quantities. Amongst them is the Preliminaries Items which were priced by the Plaintiff.

In contract administration, the Subcontractor’s Quotation was considered as an Offer and the Main Contractor’s “Works Order” was the Acceptance. The question in relation to the validity of an existing Contract and the Subcontractor’s and Main Contractor’s intention to bind each other in a Contract was not disputed by their subsequent conduct. The Main Contractor subsequently issued work instruction order for the mock up unit and the Preliminaries Items and the completion of the scope of work by the Subcontractor was sufficient to establish a legal relationship and a proper contract.

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Upon completion of the mock up unit and the Preliminaries Items, these works could be measured in a bill of quantities or lump sum by using the rates in the established “Work Order” when certifying the payment made.

The claim for work done by the Subcontractor are not special damages nor are they to be measured on “Quantum Meruit” basis as these completed works are regarded as “Works Done” and to be paid according to the rates and quantities measured. The Subcontractor’s claims which were in this format were sufficient for the evaluation for of payments.

The termination without notice and without justification or any default by the Subcontractor was considered invalid. The Main Contractor had pleaded that there was no Contract upon the non-signing of the first Works Order and the non finalization of the negotiation. However, the Main Contractor’s conduct in terminating the Subcontractor’s employment is deemed to have bound the Main Contractor into a contractual relationship.

Had the Contract not subsisted as pleaded, the fact that the subsequent issuance of an instruction to the Subcontractor to carry out the preliminary works in view of the urgency of the project, was evidence enough to create another legal relationship and thus a binding contract.

Lessons learnt from the caseWorks can only commence upon the finalization of negotiations and issuance of a valid Letter of Award/Works Order. The Works Order need not be signed but receipt of such must be acknowledged. This suffices to justify a valid contract.

Care should be taken to ensure that if the “Works Order” is varied or changed, proper Architect’s Instructions or new “Works Order” is obtained to validate the changes.

Preliminaries Items are not “out of pocket expenses” but form part of the scope of works in the contract. Upon completion of works, the stipulated evaluation of the quantities shall be made for the certification of payment.

Suggested best practices to be adopted

A Subcontractor’s obligations is to complete the works as stipulated and any changes shall be considered a Variation Order.

Authorities approvals are always the Employer or Main Contractor’s responsibilities to obtain and if Authorities requires further amendments, these should be in the form of an Architect’s Instruction to vary the works done and a Variation Order to follow with a price adjustment if necessary.

If an Architect’s Instructions is not forthcoming, then the Subcontractor can send a letter to the Architect to confirm in writing the variations ordered, and which can be used to later support a construction claim.

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The 23rd Pacific Association of Quantity Surveyors (PAQS 2019) was co-organised by Royal Institution of Surveyors Malaysia (RISM) and Board of Quantity Surveyors Malaysia (BQSM) and strongly supported by Sarawak Convention Bureau, CIDB, Ministry of Tourism, Arts & Culture (MOTAC). This year Kuching, Sarawak one of Borneo’s biggest cities hosted the 23rd PAQS Congress. With the main theme: “Human Wisdom Amidst Emerging Technologist”, a two-day congress was organised from 26th–27th August 2019 at the Pullman Hotel in Sarawak, Malaysia.

The Congress explored how technology is completely transforming how we think, feel and work. Immerse ourselves in technology and develop a greater understanding of the digital world as we explore some of the most significant challenges facing our professionals.

PAQS 2019KUCHING SARAWAK

“23rd PAQS 2019- Human Wisdom Amidst Emerging Technologies”

Pre Congress EventThe Pre-Congress started on Friday, with the Young QS Programme & PAQS Committee Meetings. The PAQS Board Meeting was held on Saturday, 24th August followed by PAQS Golf Tournament at Samarahan Country Club.

Attended by more than 550 delegates, from over 14 countries participated in the two-day congress which was preceded by International Quantity Surveying Academic Forum (IQSAF) with the theme ‘Quantity Surveyor as a Project Manager in Digital Age’, jointly organised by the RISM, BQSM, Universiti Malaysia Sarawak (UNIMAS) & Universiti Teknologi MARA Sarawak Campus and was held on 25th August at UNIMAS. Other than that, a memorandum of understanding between RISM and UNIMAS was exchanged during the ceremony.In the afternoon there was a BQSM Annual Dialogue Session with Institutions of Higher Learning in Malaysia. UNIMAS also announced their collaboration on the bulk registration of UNIMAS’ QS graduates with the BQSM.

QS HIGHLIGHTS

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Congress DaysDuring the Plenary Session 1 and before the official Opening, Yang Berhormat Tuan Baru Bian, The Honourable Minister of Works Malaysia presented the keynote address at the congress, which was officiated by Chief Minister Datuk Patinggi Abang Johari Tun Openg. He pointed out that construction industry players need to have the foresight to adopt new technologies, methodologies and ways of thinking in order to continue to thrive in this brave new world. He said that “The future of construction promises to be challenging yet holds many exciting opportunities. In fact, the future is already here and I urge all of us here to embrace the emerging technologies in order to fully benefit from it.”

The next keynote speaker was delivered by the Senior Independent Non-Executive Chairman, Y. Bhg. Tan Sri Rafidah Aziz, spoke about a relevant of human wisdom in the era off emerging technologies. In total, more than 40 speakers from all over countries like Australia, New Zealand, Hong Kong, China Singapore, Nigeria, Sri Lanka, Japan, Philippines, and Malaysia have presented their papers.

The Congress was a great success with thanks and congratulations to the PAQS Congress Organising Committee. At the closing ceremony, Adjunct Prof Sr Dato’ Aziz Abdullah, President of BQSM handed the PAQS’s flag to Mr Khoo Sze Boon - President (QS Division) Singapore Institute of Surveyors & Valuers for the upcoming 24th PAQS Congress to be held from 4-8 September 2020. The congress concluded with a Gala Dinner on 26 August 2019. During the dinner, the night featured several local acts and performances from all countries and the entertainment was excellent.

Reviewed by Assoc. Prof Sr Dr Sarajul Fikri MohamedTitle : Creating Smart Enterprises - Leveraging Cloud, Big Data, Web, Social Media, Mobile and IOT TechnologiesAuthor : Vivek KalePublisher : CRC Press, Taylor & Francis GroupISBN No : 9781498751285

Synopsis:

This book proposes that to sustain in an VUCA (volatility, uncertainty, complexity and ambiguity) ecosystem, an enterprise must upgrade as per the IMM (intelligence maturity model) consisting of the following stages: data, communication, information, concept, knowledge, intelligence, wisdom. An enterprise can achieve this progressively by deploying the SMACT (social media, mobile, analytics & big data, cloud computing, and Internet of Things) technologies. This book unravels the enigmatic of SMACT environments and applications and their power and potential to transform the operating contexts and business enterprises.

Reviewed by Assoc. Prof Sr Dr Sarajul Fikri MohamedTitle : Big Data Analytics for Cloud, IoT and Cognitive LearningAuthor : Kai Hwang and Min ChenPublisher : John Wiley & Sons LtdISBN No : 9781119247029

Synopsis:

In the big data era, successful cloud system, web services and data centres must be designed to store, process, learn and analyse big data to discover new knowledge or make critical decision. This book consists of eight chapters presented in a logic flow of three technical parts which include: big data, clouds and Internet of Things, Machine learning and deep learning algorithms and Big data analytics for health care and cognitive learning. This book blends big data theories with emerging technologies on smart clouds and exploring distributed datacentres with new applications. For example emotion-detection robotics, virtual reality, augmented reality and cognitive services can be implemented in QS practices for cost planning and monitoring.

Reviewed by Assoc. Prof Sr Dr Sarajul Fikri MohamedTitle : Architecture for Blockchain ApplicationsAuthor : Xiwei Xu, Ingo Weber and Mark StaplesPublisher : Springer Nature SwitzerlandISBN No : 9783030030346

Synopsis:

This book provides an excellent overview of the engineering aspects of block chains. It covers the current options for platform, the application areas in which they may be used and design software to utilize block chain technology. Although block chains did not spring fully realized and built on prior work, the introduction of Bitcoin in 2009 can be considered the birth of block chain. In addition technologies that are disruptive to the consumer are actually quite rare. Smart phones and the World Wide Web are now of the most recent ones. In the QS context, we should look for opportunities bot to deepen our understanding about block chains and to apply them in QS practices where they provide the correct set of functionalities that we need for cost and contract management processes and problem.

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Sr Nur Aziz Abu Bakar, CQSDisruptive Technologies – A Threat or

Opportunity for Quantity SurveyingPractices

P. 17

Datuk Sr Charlie Chia Lui Meng, CQSThe Legacy - ConstructionCommercial Management

and QS

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EMBRACE CHANGEFOR SURVIVAL

PLAIN ANDSMART CONTRACTS

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CONTRACTOR’SREPORT CARD (CRC)

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INNOVATIONIN QSP.27

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