PP Assignment Latest
PP Assignment Latest
PP Assignment Latest
PROFESSIONAL PRACTICE
SEKSYEN 01
NAME MATRIC NO
CHUA JIA HUI A16BE0021
TAI YIH SHYUAN A16BE0160
LIM LIANE LENG A16BE0053
EVELYN YEAP JIE LING A16BE0027
EUNICE TANG SIEW WEN A16BE0026
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TABLE OF CONTENTS
1.0 INTRODUCTION .................................................................................................................................... 3
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1.0 INTRODUCTION
The Board of Quantity Surveyors Malaysia (BQSM) has produced a standard Memorandum of
Agreement (MOA) which also known as a Memorandum of Understanding, is a formal business
document used to outline an agreement made between two separate entities, groups or individuals.
This agreement incorporates services to be rendered by Consulting Quantity Surveyor (CQS),
obligations, responsibilities and rights of the client and CQS.
MOA is an agreement between government of Malaysia and CQS for the provision of
professional quantity surveying services. Another important component of the agreement is the scale
of fees which sets out the amount of fees to be charged by the CQS for services rendered. The main
purpose of MOA is to have a written understanding of the agreement between the government and
CQS. Besides that it is also precedes a more detailed contract after a process of negotiations and due
diligence. Furthermore, provides a simple but effective format to enter into a general agreement prior
to finalizing a more detailed agreement with a party.
A CQS is an important member of the design and construction team in achieving a common
goal of completing a project of good quality within time and budget. A CQS is specifically focused
on the financial, procurement and contractual management of development projects culminating in a
functional project yet gives the best value for money. All practicing CQS are required by The Law of
Malaysia Act 487 under the Quantity Surveyors Act 1967 (The Act) to be registered with the BQSM.
The BQSM is responsible to register and regulate the practice of Quantity Surveyors and to issue
practicing permit to CQS.
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2.0 PROVISION HIGH QUALITY PROFESSIONAL SERVICES OF CQS BY MOA
If there is situation that government fails to comply with any obligations under MOA, the
CQS has to give notice in writing to the government in the period of not less than sixty days to
terminate his appointment. On the other hand, CQS also need to inform government in writing
immediately with reasons if his part that failed to carry out his professional services for period of
sixty days. At the expiry of the period of suspension, a CQS needs to inform government in writing
whether continue carrying out his professional services or remain the suspension with reason provided.
Moreover, the CQS shall immediately notify the government in writing when occurring
situation which makes it impossible for CQS to carry out his obligations. Yet government may
terminate the agreement by giving not less than thirty days written notice if agree with that situation.
For such still outstanding situation after the date of termination of the agreement, CQS shall paid
charges by government for his professional services. In other hand, disagreement between these two
parties to the existence of such situation, the matter will be solving by submitted to arbitration in
accordance with Clause 4.
Unless terminated upon this clause, otherwise the CQS should terminate his appointment
when he issues the certificate that authorising the final payment to the contractor. Other proceedings
required by the government after the completion of construction, the CQS shall assist the government
under the same condition of engagement as are applicable to the MOA. Despite the provision in MOA,
the government may terminate the agreement at any time without assigning any reason but with the
condition of giving written notice by 30 days. Any termination of this appointment shall not prejudice
or affect the rights of any party involved in the MOA.
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2.2 PROPRIETARY RIGHTS OF PARTIES IN MOA
The examination of the priced Bills of Quantities or activity schedules should be carried out by CQS.
Then, the CQS shall deliver all these documents together with all reports and relevant ideas such as
maps, drawings or statistics to the government upon the completion of his professional service. All
these documents shall be the absolute property of the government. Therefore, the government reserves
the rights to make use of all these documents at any time to improve visibility and certainty of the
forward construction programme.
However, CQS can still retain a copy of Bills of Quantities, Specifications and other related
documents for his own record with the condition of not using any of the confidential information in
these documents for purpose that are not related to this MOA without the consent of the government.
These documents are obviously confidential as they include pricing and cost information of the
tenderer. Therefore, a CQS has to provide acceptable reasons to get approval from government before
publishes article or photograph of the project to other persons which are not involved in that particular
construction project.
Therefore, it is evident that this industry is also associated with risk, as every project is differs
in various aspects, such as the projects location, technology used, and the level of the design. Due to
these aspects, parties in connection with MOA are likely to have a natural potential for disputes and
conflicts and is also adversarial. This results from the reality that every construction project is a
multifaceted process that necessitates the harmonized effort of a temporarily assembled multiple-
member association of various distinct groups, where each party has its unique organizational culture,
goals and needs, and professional ethics and culture which aims at maximizing their own profits and
benefits.
Disputes are the one common aspect of the construction industry anywhere. The construction
industry always involves multidisciplinary players, which further hinders the ability of this industry
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to evade dispute. The existence of dispute between government and CQS in relation with MOA shall
be referred to the person appointed by President of the BQSM in written notice within two months.
The submission shall deem under the Arbitration Act 1952 and the award of arbitrator will be the
final decision to bind upon the parties in MOA. While pending the award of the arbitration, CQS
remains under directed by government and shall continue to perform the remaining part of his
professional services as set out in work schedule. The arbitration held at the Regional Centre for
Arbitration in Kuala Lumpur using the facilities and assistance provided at the Centre.
For example, conflicts and disputes might arise due to the lack of proficiency of project
contributors, lack of determination, and clients lack of information. In addition, slow client response
or changes by clients. Finally, these proximate causes lead to claims and disputes. It is important to
solve disputes between government and CQS wisely and as soon as they emerge in the workplace in
order to reduce the chances of any worsening in the relationship among the parties involved in the
MOA. It also results in less stress and lower costs for all parties. This is because conflicts and disputes
have negative impacts on the projects completion, cost, and performance. Disputes may cause a
delay in completing the project on time and within budget. Moreover, disputes consume more time,
cost more money than the estimated cost, and also lead to the ruining of relations which may have
taken numerous years to establish.
To produce a completed project that performs to the standards of the brief, the project must
comply with national standards and be compatible with existing systems and technical performance.
The task of achieving technical excellence becomes more difcult when there is the possibility of the
works being carried out by a contractor who is unfamiliar with domestic conventions and is
attempting to translate complex data into another language. It is therefore very important that
standards and technical requirements are described in clear terms with regard to the levels of quality,
performance, safety, dimensions, testing, marking or labelling, inspection, and methods or techniques
of construction. In order to achieve this aim, a Standard Method of Measurement is used to facilitate
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pricing by standardizing the layout and content of the BQ, to provide a systematic structure of bill
items and leading to uniform itemization and descriptions.
Besides that, the purpose of standardization is to provide rational system of billing suitable
for both manual and computer operation, to simplify the measurement of works and the administration
of contracts, to provide a uniform basis for measuring the works so as to avoid misunderstanding and
ambiguities and to assist in the financial control of the works. Moreover, further to the services
specified in the schedule, the CQS shall perform all acts, matters and works which are usually done
according to the practice of their profession in MOA for the project carry out. This shows that the
profession must respond quickly and creatively to the challenges of accelerating social, technological,
economical and environment change to ensure their high quality professional services.
In addition, several principles are listed out in MOA such as the CQS not allowed to divulge
any confidential information communicated to or acquired by him in the course of carrying out the
work, duties and obligations under the terms of this Agreement. Respect confidentially maintains the
confidentiality of the clients affairs is ones of the ethical standards shall the CQS achieved. Without
the written approval of the government or client, such information shall not be used by the CQS. A
third party who knowingly receives confidential information may be restrained from using it. He or
she will also be liable to account for profits derived from using the information, or for damages. MOA
might be taken to protect for the governments private and confidential documents, but not his skill
or reputation.
At the same time, without first divulging by the quantity surveyors interest to the government
and obtaining the written consent from the government, his or her cannot have any direct and indirect
interest in any of the construction or supply contracts for the project which are the subject of this
Agreement. Unless the government specifically agree in writing. CQS cannot permit his staff or
subsidiary or associate to engage in any activities related to the project other than the specified
professional services. CQS already been formally notified and appointed by the government or client.
Supplanting, intervention and taking over work of another CQS should be avoid by professional CQS.
Besides, the CQS shall obtain the written consent from government or client before commencing his
basic and additional services. To guide the CQS managing difficult situations or where their
professionalism may be comprised, his or her are expected to know and understand these principles
and be committed to them in order to maintain the integrity of the profession.
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2.5 DELIVERY OF DOCUMENTS TO THE GOVERNMENT ON TERMINATION BY
THE CQS
In the event of the termination of MOA by the Consulting Q.S., confidential information such as BQ,
specifications and others similar documents relevant to the projects as are in the possession of the
CQS who shall be allowed to retain copies any documents so deliver to the government or client. The
CQS shall be held accountable for any costs arising from the late completion of the final account. So,
the CQS must retain a copy of the final account for his own records and others relevant copies.
Unless disputed by the government, all sums due to the CQS in accordance with the terms of
this agreement should be paid within 42 days of the submission by the CQS of his accounts to the
government. Both parties can also face nancial problems and they need protection in these
circumstances. The CQS has the responsibility for providing accurate and timely cost advice
throughout the duration of a project to a variety of organisations including the client. These activities
involve recommending valuations for payments to the contractor as work proceeds on site, the
measurement and valuation of variations and claims during the contract and for the preparation of the
final account, on the basis of which the architect certifies final payment. The regular and on-going
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reporting of the evolving construction costs and cash-flow situation permit cost control measures to
be implemented to keep the project within budget.
The traditional QS services includes the measuring and valuing building works and services
based on standard method of measurement of building works. The traditional role of the QS as a cost
control profession also include the traditional tendering, contract procurement methods, tender
analysis, monitoring and evaluation of building projects. While as a professional QS, must have some
qualities, such as Fairness, honesty and integrity, respect privacy, deal openly with clients, observe
rules of conduct, disclose conflicts of interest, safeguard clients assets entrusted to them and keep
abreast of current professional knowledge.
According to MOA, Section C, Schedule of fees, the cost of works shall be arrived at as for
completed works, the total final cost of all works including variations or the original contract sum
whichever is the greater. What are variations? The circumstances in which variations might arise:
Instructions from the CA or Engineer, changes to drawings, changes in site/work management,
methods and procedures e.g. changes in access or changes to site accommodation, employer requests,
instructions to expend provisional sums, changes in statutory requirements and regulationspost
formation of contract, contractor requests, discrepancies in or between contract documents, agreed
tender assumptions proven to be incorrect and unforeseen ground conditions. These skills place CQS
in a strong position to take a leading managerial role throughout the development of a project. For
example, they are able to assess the implications of changes in design, site conditions and working
arrangements and give the client accurate budget and time estimates.
For works tendered but not awarded, the lowest acceptable tender received less P.C. and
Provisional sums where no measurements have been done and contingency sum, for works where
tenders have not been received, the latest estimate of costs prepared by the CQS which has been
submitted and agreed to by the Government. The Government reserves the right to agree or not to
agree to such estimate. From this statement, Cost of Works mean the total cost to the Government.
CQS advice on procurement strategy and tendering arrangements aims to identify the most
appropriate means of getting the project built. CQS prepares tender documents including bills of
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quantities which enable competitive tenders to be obtained. Besides that, CQS will conduct tender
evaluation and recommend selection of a suitable contractor. Where appropriate the CQS will
negotiate with potential main contractors on behalf of the employer prior to entering into contract.
The professional services to be provided by the CQS consist of two types of services, there
are the basic services and the additional services. The basic services for building and civil engineering
works to be rendered by the CQS are preparation of Preliminary Estimates and Cost Plane;
Preparation of Bills of quantities and other Tender Documents; Preparation of Tender Report
including pricing the Bills of quantities for an estimate and contract documents; Preparation of Tender
Documents, Tender Reports and Contract Documents for p.c. and Provisional items other than those
under the charge of Mechanical and Electrical Consultants; Valuation of works in progress for Interim
Valuation including variations; and preparation of Final Accounts.
However, the addition services to be rendered by the CQS are preparation of Feasibility
studies including Income/Expenditure Cash Flow; Preparation of Final Costs for contracts based on
Provisional Bills of Quantities; Pricing of Bills of Quantities or Pricing and agreeing Schedule of
Rates; Remeasurement of the whole or part of the Building Works due to either re-planning of internal
layout arising from a change of use or repositioning of the building if remeasurement is required and
redesign of structural element in the works; Preparation and Attendance for Arbitration or Litigation;
Preparation of Documents and Reports for Prequalification of Contractors.
For the purpose of calculating the percentage fees, projects are classified into 3 categories that
are category A, B and C. For category A in building work, consists of semi-detached and detached
houses, terrace and link house and cluster house, shop houses and flat not exceeding 4 storeys. For
category B, consists of multi- storey flats, factory, bank and etc. For category C, consists of extension,
alteration, restoration and associated demolition works. From these three categories, the fees of
projects that QS received will be more easily and average.
Based on these two basic works and additional works in MoA, CQS will be more
professionalism with their scop pf work and the nature. MoA subjects to give high quality of
professional service as QS should provide thses reasonable services and skills and make sure they
always update their knowledge regarding their job as a professional CQS and perform their job
professionally and quality work.
Explanatory Notes Applicable to building works in categories A, B, and C, a single unit shall
be computed by including the total cost of all the builders work, built- in fittings, integral services
and installation, site and external works and other services serving the immediate site on which the
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units are constructed for all units that are repeated and dividing it by the total number of repeated
units. Whenever any building project is proposed, it is important that the cost involved is known in
advance. These include site preparation cost, construction, labour, material and plant costs,
professional fees, taxes and other charges as well as the likely running and maintenance costs for the
new building. The CQS is trained to evaluate these costs and to advise on alternative proposals.
Where a consulting mechanical or electrical engineer is employed by the Government, for the
purpose of calculating the fee, the cost of works for the Mechanical or Electrical Engineer services
shall be reduced by one- third. Where measurements are required for such services, the above
reductions shall not be applicable. In no case shall the CQSs total fees on the cost of the whole
scheme be reduced by more than one- sixth. Where contracts for building works are based on
Provisional Bills of Quantities, the fees for services rendered under Section 6(A), (B) and (C) here
shall be increased by 35%.
The consulting QS shall be paid the proportion of the services rendered within each stage or the full
amount upon satisfactory completion of each stage. CQS will receive payment stage by stage. With
this agreement, client will give more confidence to CQS. 10% of fee payable to the CQS after
complete preparation of preliminary estimates and cost plans. Client shall paid 50% of fee when
preparation of Bills of Quantities and other Tender Document (excluding preparation of Tender
Documents under item 8.4) complete.
After complete preparation of tender reports including pricing the Bills of Quantities for an
estimate and contract document and preparation of tender document reports and contract document
for P.C. and provisional items other than those under the charge of mechanical and electrical
consultants respectively get 5% of fee. And other 15% of fee is at completion of stage valuation of
works in progress for interim valuation or certificates. 15% of fee from total will get it when complete
preparation of final accounts.
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2.9 SCALE OF CHARGES FOR ADDITIONAL SERVICES
Additional services charges shall be payable to CQS. This agreement is to prevent CQS from loss and
to protect his interests. If dont have this agreement, CQS maybe will do a lot of job that not in he/her
services. If client need any additional services, he/her must pay additional fee to CQS. Charges
payable to the CQS for additional services shall be as table 1.
factor approved
by the government
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Preparation of document and reports for
prequalification of contractors multiplying
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factor approved
by the government
For basic services, the payment of fees shall be made in accordance with Article 4 of the MOA.
Payment of fee shall in proportion to the services so that the total fees paid at the completion of each
stage of services. The total fees paid in each complete stage must equal to the breakdown of
percentage charges in Paragraph 8 of this schedule. For additional services, CQS shall be paid the
proportion of the services rendered within each stage or the full amount upon satisfactory completion
of each stage. The amount of charge is accordance with scale of charges for additional services in
Paragraph 9 of this schedule.
After completion of basic services under paragraph 3 by CQS at any time after execution of an
agreement between the CQS and government, any measurement specification or other document
whether completed or in progress or prepared in whole or in part by CQS are required to modified or
revised instructions from government or other acting on behalf of the government, the CQS shall be
paid an additional payment by the government for making any necessary modification or revision and
for consequential reproduction of documents. The fee due will be based on section 8.2 of this schedule.
For example, 50% of the gross value of measured omissions and on the gross value of
measured additions, both gross values added to the cost of works to calculate the fee, provided such
modification or revision be limited to re-measurement of the whole or part of the works due to either
re-planning of internal layout or repositioning of the structure or due to change of use of building or
structure, and redesign of any of the structural element in the works.
During the execution of the works or before the commencement the defects liability/maintenance
period of any part of the works, materials, plant or equipment whether not shall be damaged or
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destroyed not due to the negligence on the part of the CQS shall be paid and additional payment in
respect of any additional work required by the government to be carried out by the CQS as a result of
damage or destruction.
In the event of the termination of this agreement by the default of the CQS or the suspension of the
project by the government, the CQS shall be paid in accordance with the breakdown of percentage
charge under Paragraph 8 of this schedule for completed stage only. For any uncompleted stage by
the CQS services, it shall be paid on quantum merit.
In the event that the CQS is required to recommence the project after the project has been
suspended by the government for more that twelve months, the CQS shall be paid fee based on new
total cost on uncompleted works. Furthermore, CQS shall be paid addition charge equal to one-sixth
of the different between the sum which would have to payable to CQS under Paragraph 8 and the
sum which under Paragraph 15(A) above. If dont have this agreement, government have to pay fee
based on the total cost of that whole project, with this agreement, government only need to pay fee
based on the new total cost on uncompleted project.
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3.0 CONCLUSION
In conclusion, the CQS should exercise all reasonable skill, care and diligence in the discharge of his
professional services and the preparation of Bills of Quantities (BQ) by the CQS shall in accordance
with the principles of the current edition of the Standard Method of Measurement for Building Works
issued by the Institution of Surveyors Malaysia. It is important to establish a considerable degree of
standardization in the method of preparing the BQ and the units used in them. All these documents
shall be the absolute property of the government. Therefore, the government reserves the rights to
make use of all these documents at any time to improve visibility and certainty of the forward
construction programme.
CQS remains under directed by government and shall continue to perform the remaining part
of his professional services as set out in work schedule. The CQS has the responsibility for providing
accurate and timely cost advice throughout the duration of a project to a variety of organisations
including the client. The CQS shall be held accountable for any costs arising from the late completion
of the final account. Additional services charges shall be payable to CQS. This agreement is to prevent
CQS from loss and to protect his interests. If dont have this agreement, CQS maybe will do a lot of
job that not in he/her services. If client need any additional services, he/her must pay additional fee
to CQS. In the event of the termination of this agreement by the default of the CQS or the suspension
of the project by the government, the CQS shall be paid in accordance with the breakdown of
percentage charge under Paragraph 8 of this schedule for completed stage only.
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4.0 REFERENCES
ii. Department of Defence - Defence Infrastructure Panel 2014 - 2017 - Scope of Services
iii. Duncan Cartlidge FRICS, (2009). Quantity Surveyors Pocket Book First Edition
iv. http://definitions.uslegal.com/m/memorandum-of-agreement/
v. https://en.wikipedia.org/wiki/Quantity_surveyor
vi. https://registrationbody.scs.ie/code_of_professional_conduct_standards_Quantity_Surveyor
s.pdf
vii. http://www.academia.edu/13523982/BSc_in_QS_and_CM_-
_QUANTITY_SURVEYING_PRACTISE
viii. http://www.acqnotes.com/acqnote/careerfields/memorandum-of-agreement-moa
ix. http://www.advocatesforyouth.org/publications/publications-a-z/616-creating-and-using-a-
memorandum-of-agreement
x. http://www.bqsm.gov.my/bqsm/a_public/images/pdf/QSS%20Rules%20-%20BI%20end%2
0version-24-12-04.rtf
xi. http://www.ciqs.org/english/designations-defined-professional-quantity-surveyor
xii. https://www.linkedin.com/pulse/some-difficulties-facing-quantity-surveyors-cost-reporting-
fraser
xiii. http://www.rism.org.my/quantity-surveying-division-qs/
xiv. https://www.scribd.com/doc/315482267/-Future-in-Quantity-Surveying-Profession
xv. http://www.surveyors.com/quantity-surveyors/quantity-surveyors-services/
xvi. Project Administration Handbook for Civil Engineering Works 2010 Edition
xvii. http://www.bqsm.gov.my/
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