Topic 3 - Procurement Method

FUNCTIONS OF PROCUREMENT

• CONTINUOUS SUPPLY

• COMPLEXITY

• CONTROLLABLE

  VARIATION

• COMPETITION

What is the key to selecting the right procurement contract?

• Exploring different sources

• Following industry best practices

• Boosting the economy

• Managing controllable variations

Which method involves the developer / contractor taking full responsibility from design to completion, delivering the building in a ready-to-use condition to the buyer?

• TRADITIONAL METHOD

• CONSTRUCTION MANAGEMENT

  CONTRACT

• TURNKEY

• BUILT, OPERATE, TRANSFER

  (BOT)

Public sector can have various facilities

• TRADITIONAL METHOD

• CONSTRUCTION MANAGEMENT

  CONTRACT

• TURNKEY

• BUILT, OPERATE, TRANSFER

  (BOT)

Public sector can have various facilities

• TRADITIONAL METHOD

• CONSTRUCTION MANAGEMENT

  CONTRACT

• TURNKEY

• BUILT, OPERATE, TRANSFER

  (BOT)

A form of contractual arrangement whereby the contractor is paid a fee to manage the building of the project rather than a contract to build.

• TRADITIONAL METHOD

• CONSTRUCTION MANAGEMENT

  CONTRACT

• TURNKEY

• BUILT, OPERATE, TRANSFER

  (BOT)

PLUS HIGHWAY IS ONE OF THE EXAMPLE FOR

• TRADITIONAL METHOD

• CONSTRUCTION MANAGEMENT

  CONTRACT

• TURNKEY

• BUILT, OPERATE, TRANSFER

  (BOT)

GOVERNMENT EXPRESSED WILL TO BUILD HIGHWAY PROJECT TO MALAYSIAN PEOPLE, ADVICE THE BEST PROCUREMENT METHOD CAN BE USED BY GOVERNMENT?

• TRADITIONAL METHOD

• CONSTRUCTION MANAGEMENT

  CONTRACT

• TURNKEY

• BUILT, OPERATE, TRANSFER

  (BOT)

ABU WANTS TO BUILD HIS DREAM HOUSE, HE AGREES TO PAY A 20% FEE WITH THE CONTRACTOR IF THE PROJECT IS COMPLETED. WHAT TYPE OF PROCUREMENT CAN BE USED BY ABU?

• Option A: Prime cost + Fixed Fee / Variable Fee

• Option B: Prime cost + percentage fee

• Option C: Prime cost + Target Fee

AIZAT WANTS TO BUILD HIS MOM HOUSE, HE AGREE TO PAY A RM 5000 AS A PROFIT AND OVERHEAD FOR THE CONTRACTOR IF THE PROJECT IS COMPLETED. ADVISE THE BEST TYPE OF PROCUREMENT THAT CAN BE USED BY AIZAT?

• Prime cost + Fixed Fee / Variable Fee

• Prime cost + percentage fee

• Prime cost + Target Fee