April 2010

(1)

Flowchart Description Action By Reference

A

1

- Provisional Sum is

included in the Contract Sum

Refer Flowchart 20.1

CAO/

Ir/Sr

2

-

3 Yes

-

5 4

Prepare cost estimates of works under Provisional Sum.

Is the estimates of works 30% more than the Provisional Sum.

Is the estimates of works 30% - 50%

Obtain approval from Division Director A

1.

2.

3.

4. CAO / Division

Director

Use

‘Borang E’

Yes

No

Is the estimates of works 50% - 100%

5. -

6

7

Obtain approval from Deputy DG

6. CAO / Deputy

DG

Use

‘Borang E’

Yes

No

Obtain approval from

7. DG CAO / DG Use

‘Borang E’

8 No

Does the work require the involvement of the Main Contractor

8 -

9 No

Quotation exercise

9. SOR

10 Yes

Is it specialist works?

10. -

11 Yes

Tender or quotation Exercise by Contractor

11. SOR

12

Issue SO instruction to main contractor, and prepare valuation of works

12. SOR/ SO/

CAO

13 Obtain approval (on costs)

from Committee

13. CAO/

Committee

Use

‘Borang F’

Appointment of sub- contractor or supplier 14.

Flowchart 20.2 – Administration of Provisional Sums

20-2 Revision 1 : April 2010

No

14

15 Adjustment to Contract

Sum

15. SOR/ SO/

CAO

Use PHK

April 2010

(2)

20-11 Revision 0 : March 2009

Step Procedures / Tasks Action By

/ Reference A Provisional Sums

Please refer to Flowchart 20.2 – Administration of Provisional Sums.

The Project Team must give due consideration to the overall works programme, and ensure the timely appointment of sub- contractor or supplier so as to avoid any delay to the works.

1 Preparation of Cost Estimates

Prepare cost estimates for the works to be carried out under each Provisional Sum.

At this stage, the scope of works shall have been sufficiently clearly identified or defined to enable the works to be priced.

The cost estimate for the works shall be prepared by an officer who has the relevant experience or expertise.

Action by: CAO

2 Approval Before Proceeding with Procurement

Approval of the Authorised Person is required if the estimated cost of works for each Provisional Sum exceeds that

Provisional Sum by more than 30%.

Use the current‘Borang E’ – Permohonan Permohonan Untuk Melaksanakan Item Di Bawah Wang Peruntukan Sementara Yang Dijangka Melebihi *30%/50% Dari Peruntukan Asal..

Action by: CAO JPS SP Bil 1/2007

3, 4 & 5 Authorised Person

x If the estimated cost of works exceeds the Provisional Sum by more than 30% up to the limit of 50%, the Authorised Person shall be the Division Director.

x If the estimated cost of works exceeds the Provisional Sum by more than 50%, the Authorised Person shall be the Director General or Deputy Director General.

April 2010

SPJPS Bil. 1/2010

(3)

/ Reference 6 & 7 Procurement of Works Not Requiring Involvement of the Main

Contractor

If the works do not require the involvement of the Contractor (eg aerial photography or works carried out off-site), then proceed to invite tender/quotation directly from qualified sub- contractors or suppliers.

Comply with the DID guidelines on calling of tender/quotation.

Direct payment may be to such sub-contractor or supplier may be effected through Indent or Local Purchase Order (Inden / Pesanan Tempatan).

Action by: SOR/CAO

For information.

8 & 9 Works To Be Carried Out By Specialists – Calling of Tender/Quotation By Contractor

For specialist works exceeding RM500,000, open/selective tender shall be called by the Contractor.

For works value not exceeding RM500,000, work may be procured by the Contractor through quotation exercise.

The Contractor may tender/quote for the specialist works, if has the necessary qualifications. In such cases, the

Contractor shall not be entitled to profit and attendance on his tender/quotation.

For information

Contractor shall prepare and call tender/quotation

x The SOR/PT shall prepare specifications, Needs Statement, or design (‘design documents’), and provide the same to the Contractor.

x Design and Build. For DB contracts, the Contractor shall prepare the specifications, Needs Statement or design (‘design documents’) for the tender/quotation documents.

x The Contractor shall prepare the tender/quotation document based on the design documents, and provide the list of suitably qualified sub-contractors or suppliers (‘tenderers’) for the SOR’s approval.

x The SOR/PT must check the tender/quotation documents are in order and free from errors. The SOR shall provide a list of suitably qualified tenderers.

x To total number of tenders shall not be less than 5, selected from both the lists provided by Contractor and the SOR.

Action by:

SOR/PT

April 2010

(4)

8 & 9 (Cont’d)

Works To Be Carried Out By Specialists – Calling of Tender/Quotation By Contractor (Cont’d)

Contractor shall prepare and call tender/quotation (Cont’d) x The Contractor shall prepare sufficient number of tender

documents.

x For quotations, the tenderers must submit 2 set of documents.

Action by:

SOR/PT

Closing of Tender/Quotation

x The SOR shall prepare and issue the invitation for tenders/quotations.

x The tenders/quotations shall be closed on the fixed date and time.

x The quotations/tenders shall be opened in the presence of a committee, comprising representatives of the SOR and Contractor.

Evaluation of Tender/Quotation

x For tenders, the evaluation shall be carried out by the SOR, and the SOR shall recommend the lowest and technically complying tender.

x Design and Build. For DB contracts, the evaluation shall be carried out by the Contractor, and the Contractor shall recommend the lowest and technically complying

quotation.

x For quotations, the evaluation shall be carried out by the Contractor, and the Contractor shall recommend the lowest and technically complying quotation.

(a) The SOR shall verify the recommendation, and may further negotiate for a fair sub-contract sum or contract rates.

(b) The sub-contract sum or contract rates shall be inclusive of the Contractor’s Profit and Attendance.

(5)

/ Reference 8 & 9

(Cont’d)

Works To Be Carried Out By Specialists – Calling of Tender/Quotation By Contractor (Cont’d)

Profit and Attendance (P&A)

The Profit and Attendance (P&A) shall be inclusive of Contractor’s management costs, profit and attendance.

x For Quotation, the Contractor’s P&A shall be as stated in the Contract or, if not stated then, it shall not exceed 7.5%.

x For Tender, the Contractor’s P&A shall be as stated in the Contract or, if not stated then, it shall not exceed the following rates:

Value of Works Maximum Rate for P&A

RM500,000 or less 7.5%

> RM500,000 – RM 1 million 5%

> RM 1 million - RM 5 million 4%

> RM 5 million – RM 10 million 3%

> RM 10 million <3%

x If the Contractor’s tender/quotation is accepted, the Contractor shall not be entitled to profit and attendance on his tender/quotation.

10 Works To Be Carried Out By Main Contractor

For normal category of works (‘kategori biasa’), or works which the Contractor possesses the necessary skills, the SO may issue the necessary SO Instruction for the Contractor to carry out the works.

The valuation of works shall be in accordance with the valuation rules of the Contract, i.e. based on contract rates or, in the absence of contract rates, based on fair valuation.

Action by: SOR / SO

(6)

11 Approval of Value of Works

The tender/quotation evaluation and recommended sub- contract / supply contract value shall be approved by a Variation Order Committee (‘Authorised Person’).

The sub-contract / supply contract value shall be inclusive of the Contractor’s Profit and Attendance.

Submit the application for the approval of sub-contract value / supply contract value to the Authorised Person for approval.

Use the current‘Borang F’ – Permohonan Untuk Kelulusan Harga Bagi Item Wang Peruntukan Sementara.

See Chapter 5 – Authority for Authorised Person, and limit of authority

Action by: SOR

12 Appointment of Sub-Contractor or Supplier SO’s Instruction

Issue the necessary instruction to the Contractor to effect the appointment of the sub-contractor or supplier, as approved by the VO Committee.

Direct Payment and Deed of Assignment

The DID may make direct payment to such sub-contractor or supplier through the execution by the Contractor of the ‘Deed of Assignment’ (Surat Ikatan Penyerahan Hak Faedah), in favour of the appointed sub-contractor or supplier.

For avoidance of disputes, a copy of the Deed of Assignment shall be appended to the SO’s Instruction for the appointment of sub-contractor or supplier.

The Deed of Assignment may be used if there is no overlapping of sums which is assigned under the main contract.

Form JKR 203N

For works let under Form JKR 203N, direct payment to the sub-contractor shall be effected through the procedures for Nominated Sub-Contractor or Nominated Supplier (see Section 20.3.2, above).

Action by: SOR/SO