What is construction procurement?
Construction procurement is the process whereby the client chooses a specialized method to implement his project. It involves setting up a contractual network of designers, contractors, financiers and other agents to design, construct and manage a project. One of the important considerations in procurement selection is the allocation of risks among the various parties involved.
Factors to consider when selecting procurement methods :
· Time
· Capital Cost
· Operating cost
· Environment
· Market value of project
· Flexibility
· Prestige
· Political considerations
What are the procurement methods currently practiced?
The common procurement methods are:
· Traditional procurement
· Design and build
· Construction management
· Management contractor
· Public Private Partnership
LAWS AND REGULATIONS GOVERNING THE MALAYSIAN CONSTRUCTION INDUSTRY
- Contracts Act 1950
- Factories and Machinery Act 1967
- Real Property Gains Tax Act 1967
- Workmen's Compensation Act 1952
- Strata Tiles Act 1985
- Employer Social Security Act
- Construction Industry Development Board Act 1994
- Construction Industry Payment & Adjudication Act 2012
- National Wages Consultative Act 2011
- Housing Development (Control and Licensing Act 1966)
- Occupational Safety and Health Act 1994 (OSHA 1994)
Registered Contractors according to grades as at 30 June 2012
Contractor Grades of Registration
|
Total Contractors Registered
|
Size of Company
|
G7
|
4,773
|
Large construction Company
|
G6
|
1,454
|
|
G5
|
3,930
|
Medium size construction
company
|
G4
|
2,793
|
|
G3
|
11,183
|
Small size construction company
|
G2
|
8,780
|
|
G1
|
33,991
|
|
Total
|
66,904
|
Grades of registration of contractors by CIDB based on paid-up capital and tendering capacity. (Source: CIBD Malaysia)
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