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NIK ZAFRI BIN ABDUL MAJID,
CONSULTANT/TRAINER
Email: nikzafri@yahoo.com, nikzafri@gmail.com
https://nikzafri.wixsite.com/nikzafri

Kelantanese, Alumni of Sultan Ismail College Kelantan (SICA), IT Competency Cert, Certified Written English Professional US. Has participated in many seminars/conferences (local/ international) in the capacity of trainer/lecturer and participant.

Affiliations :- Network Member of Gerson Lehrman Group, Institute of Quality Malaysia, Auditor ISO 9000 IRCAUK, Auditor OHSMS (SIRIM and STS) /EMS ISO 14000 and Construction Quality Assessment System CONQUAS, CIDB (Now BCA) Singapore),

* Possesses almost 30 years of experience/hands-on in the multi-modern management & technical disciplines (systems & methodologies) such as Knowledge Management (Hi-Impact Management/ICT Solutions), Quality (TQM/ISO), Safety Health Environment, Civil & Building (Construction), Manufacturing, Motivation & Team Building, HR, Marketing/Branding, Business Process Reengineering, Economy/Stock Market, Contracts/Project Management, Finance & Banking, etc. He was employed to international bluechips involving in national/international megaprojects such as Balfour Beatty Construction/Knight Piesold & Partners UK, MMI Insurance Group Australia, Hazama Corporation (Hazamagumi) Japan (with Mitsubishi Corporation, JA Jones US, MMCE and Ho-Hup) and Sunway Construction Berhad (The Sunway Group of Companies). Among major projects undertaken : Pergau Hydro Electric Project, KLCC Petronas Twin Towers, LRT Tunnelling, KLIA, Petronas Refineries Melaka, Putrajaya Government Complex, Sistem Lingkaran Lebuhraya Kajang (SILK), Mex Highway, KLIA1, KLIA2 etc. Once serviced SMPD Management Consultants as Associate Consultant cum Lecturer for Diploma in Management, Institute of Supervisory Management UK/SMPD JV. Currently – Associate/Visiting Consultants/Facilitators, Advisors for leading consulting firms (local and international) including project management. To name a few – Noma SWO Consult, Amiosh Resources, Timur West Consultant Sdn. Bhd., TIJ Consultants Group (Malaysia and Singapore) and many others.

* Ex-Resident Weekly Columnist of Utusan Malaysia (1995-1998) and have produced more than 100 articles related to ISO-9000– Management System and Documentation Models, TQM Strategic Management, Occupational Safety and Health (now OHSAS 18000) and Environmental Management Systems ISO 14000. His write-ups/experience has assisted many students/researchers alike in module developments based on competency or academics and completion of many theses. Once commended by the then Chief Secretary to the Government of Malaysia for his diligence in promoting and training the civil services (government sector) based on “Total Quality Management and Quality Management System ISO-9000 in Malaysian Civil Service – Paradigm Shift Scalar for Assessment System”

Among Nik Zafri’s clients : Adabi Consumer Industries Sdn. Bhd, (MRP II, Accounts/Credit Control) The HQ of Royal Customs and Excise Malaysia (ISO 9000), Veterinary Services Dept. Negeri Sembilan (ISO 9000), The Institution of Engineers Malaysia (Aspects of Project Management – KLCC construction), Corporate HQ of RHB (Peter Drucker's MBO/KRA), NEC Semiconductor - Klang Selangor (Productivity Management), Prime Minister’s Department Malaysia (ISO 9000), State Secretarial Office Negeri Sembilan (ISO 9000), Hidrological Department KL (ISO 9000), Asahi Kluang Johor(System Audit, Management/Supervisory Development), Tunku Mahmood (2) Primary School Kluang Johor (ISO 9000), Consortium PANZANA (HSSE 3rd Party Audit), Lecturer for Information Technology Training Centre (ITTC) – Authorised Training Center (ATC) – University of Technology Malaysia (UTM) Kluang Branch Johor, Kluang General Hospital Johor (Management/Supervision Development, Office Technology/Administration, ISO 9000 & Construction Management), Kahang Timur Secondary School Johor (ISO 9000), Sultan Abdul Jalil Secondary School Kluang Johor (Islamic Motivation and Team Building), Guocera Tiles Industries Kluang Johor (EMS ISO 14000), MNE Construction (M) Sdn. Bhd. Kota Tinggi Johor (ISO 9000 – Construction), UITM Shah Alam Selangor (Knowledge Management/Knowledge Based Economy /TQM), Telesystem Electronics/Digico Cable(ODM/OEM for Astro – ISO 9000), Sungai Long Industries Sdn. Bhd. (Bina Puri Group) - ISO 9000 Construction), Secura Security Printing Sdn. Bhd,(ISO 9000 – Security Printing) ROTOL AMS Bumi Sdn. Bhd & ROTOL Architectural Services Sdn. Bhd. (ROTOL Group) – ISO 9000 –Architecture, Bond M & E (KL) Sdn. Bhd. (ISO 9000 – Construction/M & E), Skyline Telco (M) Sdn. Bhd. (Knowledge Management),Technochase Sdn. Bhd JB (ISO 9000 – Construction), Institut Kefahaman Islam Malaysia (IKIM – ISO 9000 & Internal Audit Refresher), Shinryo/Steamline Consortium (Petronas/OGP Power Co-Generation Plant Melaka – Construction Management and Safety, Health, Environment), Hospital Universiti Kebangsaan Malaysia (Negotiation Skills), Association for Retired Intelligence Operatives of Malaysia (Cyber Security – Arpa/NSFUsenet, Cobit, Till, ISO/IEC ISMS 27000 for Law/Enforcement/Military), T.Yamaichi Corp. (M) Sdn. Bhd. (EMS ISO 14000) LSB Manufacturing Solutions Sdn. Bhd., (Lean Scoreboard (including a full development of System-Software-Application - MSC Malaysia & Six Sigma) PJZ Marine Services Sdn. Bhd., (Safety Management Systems and Internal Audit based on International Marine Organization Standards) UNITAR/UNTEC (Degree in Accountacy – Career Path/Roadmap) Cobrain Holdings Sdn. Bhd.(Managing Construction Safety & Health), Speaker for International Finance & Management Strategy (Closed Conference), Pembinaan Jaya Zira Sdn. Bhd. (ISO 9001:2008-Internal Audit for Construction Industry & Overview of version 2015), Straits Consulting Engineers Sdn. Bhd. (Full Integrated Management System – ISO 9000, OHSAS 18000 (ISO 45000) and EMS ISO 14000 for Civil/Structural/Geotechnical Consulting), Malaysia Management & Science University (MSU – (Managing Business in an Organization), Innoseven Sdn. Bhd. (KVMRT Line 1 MSPR8 – Awareness and Internal Audit (Construction), ISO 9001:2008 and 2015 overview for the Construction Industry), Kemakmuran Sdn. Bhd. (KVMRT Line 1 - Signages/Wayfinding - Project Quality Plan and Construction Method Statement ), Lembaga Tabung Haji - Flood ERP, WNA Consultants - DID/JPS -Flood Risk Assessment and Management Plan - Prelim, Conceptual Design, Interim and Final Report etc., Tunnel Fire Safety - Fire Risk Assessment Report - Design Fire Scenario), Safety, Health and Environmental Management Plans leading construction/property companies/corporations in Malaysia, Timur West Consultant : Business Methodology and System, Information Security Management Systems (ISMS) ISO/IEC 27001:2013 for Majlis Bandaraya Petaling Jaya ISMS/Audit/Risk/ITP Technical Team, MPDT Capital Berhad - ISO 9001: 2015 - Consultancy, Construction, Project Rehabilitation, Desalination (first one in Malaysia to receive certification on trades such as Reverse Osmosis Seawater Desalination and Project Recovery/Rehabilitation)

* Has appeared for 10 consecutive series in “Good Morning Malaysia RTM TV1’ Corporate Talk Segment discussing on ISO 9000/14000 in various industries. For ICT, his inputs garnered from his expertise have successfully led to development of work-process e-enabling systems in the environments of intranet, portal and interactive web design especially for the construction and manufacturing. Some of the end products have won various competitions of innovativeness, quality, continual-improvements and construction industry award at national level. He has also in advisory capacity – involved in development and moderation of websites, portals and e-profiles for mainly corporate and private sectors, public figures etc. He is also one of the recipients for MOSTE Innovation for RFID use in Electronic Toll Collection in Malaysia.

Note :


TO SEE ALL ARTICLES

ON THE"LABEL" SECTION BELOW (RIGHT SIDE COLUMN), YOU CAN CLICK ON ANY TAG - TO READ ALL ARTICLES ACCORDING TO ITS CATEGORY (E.G. LABEL : CONSTRUCTION) OR GO TO THE VERY END OF THIS BLOG AND CLICK "Older Posts"


 

Showing posts with label CONSTRUCTION. Show all posts
Showing posts with label CONSTRUCTION. Show all posts

Saturday, May 26, 2012

SHOULD METHOD STATEMENT & JSA BE INTEGRATED? - NIK ZAFRI

A note to the Malaysian Construction Industry

(Click to enlarge)

Question : Salams and greetings Nick. In some countries, construction industry integrates the Job Method Statement and Job Safety Analysis. I also know that some countries do not incorporate them together. Should JMS and JSA be integrated?
Answer
Thank you for query. In Malaysia, I know many construction companies do not mix Method Statement and Job Safety Analysis. Strange it might seems, but there is always a rationale behind it.

From what I gather, it is commonly due to the foll...owing scenario :

Element : Preventive Action - (prevention of occurence) - not corrective action or correction.

The company is heading towards certifications of OHSAS 18000 and ISO 9000. The funny thing about Malaysia is that despite some construction companies attempt to integrate (even with EMS ISO 14000) some certification bodies still consider them as two or three separate system.

If there is a certification audit being conducted..say if the company is going for ISO 9000, the certification auditors will only focus on the ISO 9000. I seldom heard that they do an integrated audit (perhaps if coincidentally they want both systems to be audited)

(I do not wish to touch on why OHSAS is not being given the title ISO in front of the numbers - let the certification and accreditation bodies figure them out - although I do know the reason)

If you ask me, logically speaking BOTH JSA and Method Statement should be integrated. Quality and Safety are brothers.

If there is a quality issue, say major defects which deserve a major non-conformance, then major defects is a safety issue as well...e.g. structural integrity.

If the defect product is not being labelled properly and not been separated from the good ones, then, not only it becomes a quality issue but it is also a safety issue.

(external quality costs - is about failure of the product being accidentally delivered to the client - and definitely if the product is defective and cause great trouble to the client, it becomes a safety issue and the manufacturer or the contractor are still liable)

Now back to the JSA, here's how :

1. A Method Statement is a construction methodology which entails resources, area concerned and method of construction (some refer back to a certain trades of codes of practice) - in the manufacturing industry, it is known as Standard Operating Procedures or the closest one is Work Instruction (how to do things)

2. A JSA will determine the risk associated with such construction activity.

Thus, JSA should make reference to the Method Statement.

For example :

Method Statement for the construction of Box Culvert (just quoting an example)

It definitely will entail at least the following methods :

How to Backfill around culverts, How to do proper backfill excavations, equipment delivery, form covers/walls, formwork - footings & bottom etc. etc.

Let's take Backfill around culverts from the same Method Statement - what are the risks associated with this activity?

Employee Injury ( Falling Loads, Excavation Hazards, Equipment Operations, Etc.)

So what would be the likely preventive action?

Employee training in backfill safety procedures, Qualified equipment operators, No employees allowed under the loads, Good supervision of employees in excavation, Excavation protection as required by the depth of the excavation.

So now based on my explanation here, you tell me, should JSA be integrated with Method Statement?

My answer would be YES!

Tuesday, April 19, 2011

Nik Zafri's Guide for Dummies - Typical Systems/Methodology of your QMS/ISO 9001 Proposal (construction)


(FOR THE 1ST TIME EVER IN 15 YEARS, PART OF MY ISO 9000 PROPOSAL (CONSTRUCTION) IS REVEALED!!)





For ISO 9001:2008 Consultants Only

This sample has been tailored made for construction/building and civil engineering.

Segment One

Initial Assessment/ Evaluation (1) to predetermine: -

a. Scope of Registration & Application
b. Improvement of Existing Elements/Criterions if any
c. Additional Elements/ Criterions as necessary or permissible exclusion if any

Preparation and Presentation of findings to the Client.

(1)This is not an audit activity.

(1) Methods Used :-

Review documentation based on construction industry, sampling basis, conversation with related staff and observing consistency of physical activities at various places of work.


Segment Two

QMS ISO 9001:2008 Awareness Workshop - Theme : Managing Quality in Construction (2)

(2) (both general awareness and customized to client’s nature of industry, contract mode (Design & Build? Turnkey? Conventional?)

Workshop’s detailed report/ assessment to the Client.

(2) Solution-based – client will know the next course action after the training.

Client shall provide feedback forms and provide Certificates of Participation (which format will be forwarded by the consultant).

Typical Workshop Contents

Training Objectives, 8 Management Principles and 5 Main Clauses and interrelationships, Various Tools, Quality Cost etc. etc. + Application to Client’s industry

PHASE TWO – IMPLEMENTATION (CRITICAL)

Segment Three

Assisting System Structuring(3), Quality Document Development and (4) Review

(3) Typical System Structuring (besides the remarks) usually involve consistency with the standard requirements (not limited to the following):

· QMS Workshop
· Customer-Focus – Communication & Survey.
· Resource Management including org. chart, JD, competency & TNA
· QMS Manual/Plan/Procedural/Method Statement and or Work Instructions/I & TP (Inspection & Test Plan), sequencing and format/numbering + records management (Forms & Checklists)
· Online Documentation Interface if Any
· Measurement of Department Objectives and Capturing and Analysis of Data
· Supervision/Inspection & Supplier/ Subcontractor Management/Assessment
· Effectiveness vs. Compliance, Plan-Do-Check-Act PDCA and Continual Improvement

Segment Four

Internal Quality Auditing Course(5)

(5) Among Critical Issues to be highlighted :-

a. Effectivess/Understanding vs. Compliance.
b. Traceability to the source.
c. Determining of Non-Conformance
d. Correction and Corrective Action (CA)
e. Preventive Action
f. Audit Scheduling and Reporting
h. Assessment vs Audit – Judgement vs. Evidence.
i. Auditors Conduct.
j. Inspection vs Audit

Workshop’s detailed report/ assessment to the Client.

(5) Based on IRCA’s and IQA’s modules.

Typically covering :-

Requirements of ISO 19011:2000 and ISO 9001:2008.

The last day shall be allocated for a ‘mock adequacy and compliance audit’ conducted by the client’s IQA team.

Client shall provide feedback forms and Certificates of Participation/ Successful Completion.

PHASE THREE - REVIEW

Segment Five

Monitoring Internal Quality Auditing Activities (IQA) (6)

Management Review Meeting (MRM) (7)

(7) If invited by the Client, Consultant may attend the MRM only as an observer. If otherwise, Consultant will need a copy of the MRM minutes to evaluate effectiveness and compliance.

In both cases, Consultant shall provide the MRM evaluation to the Client.

(6) Monitoring of NCR, CAR, Reporting, Follow Up, Verification.

(7) Monitoring MRM Inputs and Outputs including :

· IQA results
· Customer feedback
· Process performance and product conformity
· Status of preventive and corrective actions
· Changes affecting QMS
· Continual Improvement
· Resource Management

Segment Six

Independent Mock Adequacy and Compliance Audit(8)

Preparation and Presentation of findings to the Client.

(8) Full system audit – Verify adequacy of QMS documentation, data & records based on random plant and office activities, sampling basis, and interview related staff.

Despite Consultant may issue NCR(s) and CAR(s) but this audit shall not form part of the Client’s QMS and/or certification benchmarks.

Consultant’s NCR and CAR shall only be taken as independent opinions and as suggestions to further improve the client’s system.

PHASE FOUR - CERTIFICATION

Segment Seven

Assisting the Client on Certification Arrangements(9)

Final Briefing on Certification Audit(10)

(9) Coordinate with QMR on communication with certification body.

(10) DOs and DONTs during certification audit.

Consultant shall not be present during the adequacy/compliance audit (certification audit) but shall follow up on the results of such audit including NCR/CAR issued.

Tuesday, November 24, 2009



Nik Zafri says :

I like the following article...very honest and very transparent analysis...

Although the article may be the thing of the past (so it seems) but I wish all bankers, investors, newly listed companies, speculators and analysts, economists etc. etc. to read the following article...

Be alert for some strong words but back up with solid facts.

We may take certain reminders so that we shouldn't be over excited of the current market performance but in fact, start working harder to continually improve them (stop sitting in the comfortable zone (not yet)

Also my reminder to all, stop playing the old record by saying that the high quantity of listing/IPOs indicates that the economy is going to be fine...it's the quality that we're talking here NOT quantity.

I think 'designation' of certain stocks by authorities should come in handy - perhaps the right time....but designating stocks should be packaged with clear regulations


Recession-struck Asia to face IPO shortage in 2009

Depressed equity prices, a spreading global recession and increasing risk-aversion among investors are likely to kill the motivation for Asia Pacific companies to be audacious enough to launch IPOs in 2009. The IPO pipeline, which had dried towards the end of 2008, will probably completely shut in the first half of 2009 and the most optimistic are now only hoping that stability will return to stock prices and that a few listings will follow in the second half of the year.

There have been several jumbo IPOs in the Asia Pacific over the past few years through to the first half of 2008. The drivers of this supply were Indian and Chinese companies taking advantage of continued economic growth and investor enthusiasm for exposure in the rising fortunes of the developing world.

This gung-ho mentality was sadly short-lived as these companies’ post-listing performances were disastrous, inflation touched new highs with the advent of recession and the financial sector collapsed under the weight of sub-prime problems.

The pain was particularly felt in the second half of 2008 and IPOs were postponed or completely culled as stock prices and indices plummeted and the probability of raising new money through issuing shares at reasonable valuations completely bit the dust.

A continuation of this surrender to the gloom in global markets is likely to ensure that companies keen on deleveraging will focus on raising equity via secondary placements or private stake sales rather than venture out with IPOs, said bankers.

The outlook for IPOs at least for the first half of 2009 is bleak,” said Simon Cox, head of syndicate at UBS Australia. “Most investors who have cash see enough opportunities in secondary markets every day and are not willing to be tempted to take risk in unknown companies by participating in an IPO unless they are priced very attractively. As a result, companies hardly have any motive to sell into this kind of environment which will kill supply in 2009.”

Signs of a prolonged slowdown in IPO activity are already evident. The Chinese IPO market, the region’s busiest for several years, had a slow start in 2009. The China Securities Regulatory Commission (CSRC) has still kept the domestic A-share market shut and only two tiny companies have listed on the Hong Kong Stock Exchange – the HK$250m (US$32.2m) IPO of mainland oil, petroleum and petrochemical trader Strong Petrochemical and the HK$63m float of China Singyes Solar Technologies.

There is one deal, though, that holds the hopes of all the companies looking to raise new equity. Chinese gold miner Real Gold Mining is braving the market with a US$150m deal and, though the defensive nature of gold could spur some demand, not many are willing to bet on the deal’s success.

Even if it is a success, bankers expect the Chinese IPO market to remain quiet in the first half and to show signs of recovery at best in the second half because of uncertainty about the direction of the global economy. “By that time (mid-year), people should be able to get a more solid view on the global economy and the mere hope of recovery could push up the stock markets and invigorate the IPO market,” said a banker.

When that happens, the infrastructure sector and companies in the retail business segment could be favoured as likely anti-recessionary candidates. “Investors remain picky and they would be only willing to put their money in India or China’s infrastructure and retail which are still considered growth sectors given possibilities demands of their huge populations will continue,” said another banker.

The Chinese government is set to invest Rmb4trn (US$584.4bn) in the country’s infrastructure sector in the next few years and is determined to maintain an 8% GDP growth by supporting domestic demand. India has similar plans to augment its infrastructure and support GDP growth.

The deals that may hit the market, however, would be modestly sized and the super jumbos are likely to be few and far between.

The only known candidate for a jumbo IPO is Agricultural Bank of China, which has plans for a US$20bn–$30bn A/H IPO in 2010. In October last year, Agricultural Bank of China received a US$19bn cash injection from the Chinese government to remove bad debts from its balance sheet and strengthen its capital base before going public. The bank transformed itself into a shareholding company in mid-January and is said to be looking at a Hong Kong and Shanghai IPO.

The Indian market is expected to remain somnolent during the first half as India gears up for its 2009 general elections. The elections are expected in May 2009. Prior to that, the Indian government is unlikely to push forward with any of its privatisations.

What little activity there is now is focused on CB buybacks with Reliance Communications and Jubilant Organosys among those quietly buying back CBs.

“In the Indian context, the market is bound to be turbulent pre-elections. It’s going to be difficult to do any deals. Post elections around June or July, hopefully, the markets will stabilise a bit and we could start seeing companies desperate to raise cash tapping the market in the fourth quarter,” said one Indian ECM banker.

And that is likely to be the trend in the rest of the region. Within South-East Asia, ECM activity will be driven primarily by recapitalisations, particularly within the FIG and real estate sectors, largely through rights issues. South-East Asian issuers tend to be family or major shareholder dominated, and rights issues backed by promoters will continue to be the prevailing trend.

“We are waiting for more rights issues out of Singapore. People are looking at issuers like CapitaLand, CapitaCommercial Trust and CapitaMall Trust to tap the market and we expect more fundraising within the REIT space. Our visibility for IPOs in SEA is minimal, so I definitely think it will be secondary fund raising and recapitalisations,” said another banker.

Although the past few months have been desolate for ECM bankers, there could be a pick-up in equity issuance towards the second half of 2009 as issuers find themselves faced with no funding alternatives.

“The IPO market is dead…The rescue rights or rescue placements in Europe will probably follow through to Asia, but Asian issuers have to swallow their pride first and take the decision to issue equity. If debt markets remain closed, they will have no choice, at some point the penny will drop,” said one Hong Kong-based Southeast Asian banker.

In Korea, the healthy IPO pipeline has imploded with first life insurers and then construction firms falling off the map. A market plunge, where the Kospi drifted below 1,000 for the first time in three years, and a subsequent liquidity squeeze has set a bleak tone for 2009 and bankers are struggling to find candidates to come to the market.

If markets were to improve, bankers think it will be the life insurers that will return first with Tongyang Life Insurance regarded as the most likely candidate. Tongyang Life came close to listing last summer but was forced to pull the deal at the last moment and has since renewed its listing filing twice with the latest deadline extended to August.

Bankers are not confident that Tongyang Life can meet that timetable but they suggested that if the deal could get done this year then other life insurers like Kumho Life and Mirae Asset Life would follow.

Also on bankers’ radars are a string of deals from Hyundai-related companies with Hyundai Motor rumoured to be considering spinning off Hyundai Card and Hyundai Capital while Hyundai Group considers a listing of Hyundai Logistics and Hyundai Home Shopping.

Bankers said that although the Hyundai deals inflated their pipeline, the execution of such deals would depend on whether the Hyundai Group was willing to use its cash piles to support the businesses and avoid a listing.

“The problem with a lot of the listing candidates is that they are backed by Korea’s industry giants and conglomerates. There is no real urgency to get these firms to the market,” one banker noted.

That argument can probably be best applied to the listing plans of Korea’s construction firms, including Posco Engineering and Construction and Lotte Engineering and Construction and Hyundai Engineering and Construction, which were all expected to list in 2008/2009 but have recently reversed those plans. Bankers blamed the cancellation of their listing plans on a strategic decision to lean more heavily on their chaebol relationships than the public markets.

And in Australia it will be difficult to see any IPOs being done in 2009, especially after the few that got done in 2008 were disastrous for investors. BrisConnections which did a huge IPO in 2008 saw its partially paid A$1 shares falling to a record low of A$0.001 post-listing. IvanHoe Mines also did one that was the year’s second largest IPO but are trading way below their issue price.

Against that background, reviving investor confidence for IPOs will be difficult.

“There could be opportunities of IPOs by diversified companies demerging to realise value in specific units or even venture capital/private equity selling off stakes but those deals in this depressed environment will have to be priced relatively cheap. . .we are not recommending our clients to go ahead and do IPOs in this environment,” said one banker.

Shankar Ramakrishnan, Fiona Lau, Denise Wee, Govinda Finn

Tuesday, August 26, 2008

From : mbsbstaff-by-email, also posted on The Star Global Malaysian Forum - Topic : Business and Professional Networking - Thread : Architectural and Sustainable Design.

From : mbsbstaff-by-email - "Encik Nik Zafri, are you the same person who sent an invitation card for the officiation ceremony of the Fibreglass Water Tank in Puchong recently? Can I have more info?"
--------------------------------------------
Hi back, are you from Malaysian Building Society Berhad (I notice the mbsbstaff)? Yes it's the very same Nik Zafri, I assure you.

But I'm very curious of where did you see that invitation? For whom it was meant to originally - if I may know? As a matter of fact, I don't recall sending the invitation to MBSB...(unless this MBSB means something else)

Can I make a small correction? It's not Fibreglass Water Tank, it's Fibreglass Reinforced Plastic (or Polymer) Hot Pressed Moulded Water Storage Tank.

I'm actually one of the consulting panel and not in any way have shares/interest in the company. The company's market is mainly UAE with one of the subsidiaries of the reputable Bin-Zayed Group.

My job over there is to help out the company's long term business plans focussing (for the time being) the possibility of exploring local market - specifically on the issues of :

a) Vendor Development Program
b) Capital Financing possibilities via avenues of grants and perhaps SME
c) Business Diversification (as composite materials can be applied to construction industry (e.g. Fibreglass Reinforced Concrete), Aerospace and even military applications)

That's all for now..I don't want readers to think that I'm a salesman or something. :-)

Anyway, if you have any business interest, you can call 03-8060-4040 and talk to Encik Azman or Encik Zahari. I rarely go there except when required - so I won't be there all the time - so don't put your hopes to speak to me - I'm just a 'small guy' over there.

Sunday, June 22, 2008

The Star Global Malaysians Forum - Posted: 10 July 2005 at 6:07pm

(In response to another e-mail)

Dear friend

I do hope that the next time, you will try to post your question 'in the open'. You can use pseudonym if you want to. I adopt a 'transparent' concept in networking so that all forum members may benefit from it - it's a learning and teaching environment.

Here's the information that you've asked and lucky you - it's in BM as you wanted. Judging by the your 'questioning techniques', I'm pretty sure that you are from Civil and Building/Structural Engineering Works.

Please be reminded that this model may subject to (generic) minor/major changes if you are involved in highway construction (civil)

There's a lot more where that came from.

I do not have the full answer to your question on 'aggregate and concerete' but I do have something that may help you out. (the following is ONLY a preliminary research (literature review) and not the thesis itself)

Besides British Standards 812, you should also cross reference to BS 882 as well. Please contact BSI or SIRIM Library (I am unsure if they have an equivalent MS Standard..perhaps you can enquire - but I do also know that some BS standards are also available over there)

On your other query of how or where to start, try to make your own assumption first by creating your own target on the interelationship between the following values with the concrete strength and the targetted ages typically 7, 14 & 28 days:

* Aggregate Impact/Crush Values (please specify grade), x% fine values, water absorption Value, LA Abrasion Value, Polished Stone Value

The usual testings are Crush Cube and Flexural tests with respective dimensions of x X y X z mm (e.g. 150 X 150 X 150mm).

Sungai Long Industries (Bina Puri Group - Tan Sri Tee Hock Seng) was one of the quarry (in Hulu Langat) used to be under my direct ISO 9001:2000 consulting supervision. (now certified) Perhaps you can also contact them and refer to my name (find a guy called Baljit - if he's still there) I'm also unsure if they would allow you to take samples from them.

On your question about engaging quality management consultant, I must advise you not to engage QM Consultant having inferior or no knowledge at all in the construction industry - otherwise you'll end up in chaos! I've seen a small number of quality consultants (with the necessary professional affiliations) have spoiled their clients (main contractors) by giving a 'xerox QMS documentation' from a manufacturing industry. A client of mine was very lucky to catch hold of me when THEIR clients are 'shouting' to get the earthworks & piling method statements but instead were being given some work instructions that has no absolute relation to the client's specification, drawing, design brief and even contractual requirements. Even the procedures are text based and NONE of them are flow-chart/process-flow based. Although I have managed to pacify the Client (who was about to terminate the contract of the main contractor), I must admit that I was 'a bit dissapointed' to see this is happening as the scenario may have somehow (to a certain degree) 'spoiled' the reputation of genuine/experienced consultants.

You appear to have the necessary qualifications and experience in Construction both QA/QC, I think with proper guide, you can do it!

Many years ago, somewhere between 1995-1997 when I was the weekly columnist for Utusan Malaysia talking about ISO 9000, TQM, OSH & EMS, there was another columnist for The Star talking about ISO 9000 in the Construction Industry. His name is Tim D. Alcock and we kinda know each other. At that time Tim was working with a consulting firm known as QMI. I will e-mail you his latest e-mail address in UK. Another 'senior' company that has been doing ISO 9000 in the construction industry - LONG before construction ISO became a trend in Malaysia (that time, it was known as BS 5750) is a company called Balfour Beatty (also involved in the country's double track project) where I was in the Engineering Department in one of their projects many years back. You may also wanted to get in touch with them as well if you're in UK.
CONQUAS telah dibangunkan oleh Lembaga Pembangunan Industri Pembinaan - (CIDB) Singapura selaras dengan kehendak agensi sektor awam dan badan-badan professional untuk mengukur tahap kualiti yang dicapai bagi sesuatu projek.


Objektif CONQUAS


Untuk menyelaraskan standard penilaian kualiti bagi projek pembinaan.

Untuk menjalankan objektif penilaian kualiti dengan :-

mengukur kerja-kerja yang telah dibina berbanding dengan standard dan spesifikasi tenaga kerja (workmanship)

menggunakan pendekatan secara persampelan mengikut kesesuaian projek.

Untuk memudahkan penilaian kualiti dijalankan secara sistematik dengan kos
dan masa yang berpatutan.


CONQUAS meletakkan standard keatas aspek-aspek pembinaan pelbagai serta menganugerahkan poin/markah bagi mana-mana kerja yang memenuhi kehendak standard. Markah-markah ini akan dicampur bagi mendapatkan skor/markah kualiti secara menyeluruh yang digelar CONQUAS Score bagi projek bangunan/pembinan.


CONQUAS 21 (Edisi ke-5 CONQUAS) merangkumi kebanyakan aspek dalam kerja-kerja am bangunan. Penilaian ini terdiri daripada 3 komponen utama:


Kerja-Kerja Struktur.
Kerja-Kerja Arkitektur (termasuk kerja-kerja luaran untuk kondominium dan taman perumahan)
Kerja-Kerja Mekanikal & Elektrikal (M&E).

Setiap komponen diperincikan pula kepada sab-komponen untuk penilaian. Contohnya, Komponen Struktur biasanya mempunyai sab-komponen seperti konkrit (tetulang), dll.


Walaubagaimanapun, penilaian ini tidak memasukkan kerja-kerja yang melibatkan kenderaan/loji berat seperti piling, heavy foundation dan kerja-kerja sab-struktur


Bangunan biasanya dinilai dari segi standard workmanship yang dicapai menerusi pemeriksaan. Penilaian Struktur dan M&E dilakukan sepanjang proses pembinaan manakalah Penilaian Arkitektur dijalankan keatas bangunan yang telah siap.


Selain daripada pemeriksaan tapak, penilaian ini juga mengambilkira ujian bahan dan prestasi funsi bagi khidmat dan pemasangan. Ujian ini akan menambahkan pengetahuan, kesedaran keselamatan dan kesihatan pekerjaan dll.


Standard minima telah dihasilkan oleh perbincangan dengan sesetengah sektor , pembangunan hartanah dan kontraktor berdasarkan spesifikasi am yang terbabit dalam projek masing-masing.


Dalam membangunkan CONQUAS 21, banyak pembelajaran dan ujian telah dijalankan bagi mengemaskinikan teknik ujian dan standard penilaian. Sistem Pemarkahan yang dijalankan bersama-sama dengan ujian akan memastikan ketepatan dan keselarasan.


Disesuaikan kembali daripada : CONQUAS 21
The Star Global Malaysians Forum - Posted: 01 August 2005 at 8:47pm

Q

Dear Nik, how do you define 'Customer Communication' in the Construction Industry'? (Civil and Building)

A

It is unfair for me to say that what I am about to say here suffice! I'll try to make it brief (as usual) Basically 'customer communication' is EVERYWHERE in the core processes of the construction industry be it civil and building or mechanical/electrical. Customer communication is not limited to how you contact your client but vice versa

During the Tendering Stage - initial site visit (Q & A), pre-q, review/request for justification of certain tender requirements or conceptual drawings/schematics, initial review/or rather dipute on contractual requirements prior to award or prior to acceptance, tender adjudication and negotiations, finalizing Bill of Quantities etc.

In the contract commencement stage, usually prior to site mobilization, there will be a need for you to prepare a Project Quality Plan together with the lists of Method Statements, ITP, master schedule, drawings/proposals etc. You will definitely need transmittal notes to send all these (or to communicate) to your client

Pre-Construction Stage - Immediately after site office setup/mobilization, you will be doing some sort of a 'kick-off meeting' - usually attended by the client where probably they tend to do some induction and briefing.

Construction Process

During ops, when the client started to get 'a lil bit more serious', they will start issuing 'non-conformances' (also known as customer complaint) followed by your ascertaining of root-causes and correction/corrective actions also constitute customer communication. Same goes to when the customer send in specifications, it is not only limited to 'customer property' that you have to look after but also generically related to customer communication.

When there are some 'deviation in construction works', 'architect/engineer instructions', 'variation orders', 'Project Progress Meeting' (with the client) etc.

Post Construction Stage

CPC and CMGD are at your Client's 'mercy'. For you, during this stage,usually you will start sending/conducting 'Customer Satisfaction Survey'. Thus, CPC, CMGD and your CSS form - constitute 'customer communication'. The complaints/comments issued by the client after CPC and during DLP (defects liability period) prior to CMGD also constitute the same thing - customer communication.

In General - 'Confirmation of Verbal/Telephone Instruction' by the Client, all types of correspondences including telephone/handphone calls, faxes, internet enquiry, e-mails, Intranet etc. are the general elements of customer communication.

so much for the 'brief explanation'.

Monday, June 16, 2008

The Star Global Malaysians Forum - Posted: 24 August 2006 at 11:46pm

Nik Zafri Posted :

Someone has asked me to define what is PFI in the construction industry. I know that this question is very much related to the previous 9MP. So here's what wikipedia says:

The Private Finance Initiative specifies a method, developed initially by the United Kingdom government, to provides financial support for "Public Private Partnerships" (PPPs) between the public and private sectors. This has now been adopted by parts of Canada, France, the Netherlands, Portugal, Ireland, Norway, Finland, Australia, Japan and Singapore amongst others) as part of a wider reform program for the delivery of public services. en.wikipedia.org/wiki/PFI

Besides than PFI, I'm sure you all have heard of these :

a) Design and Build, b) Turnkey, c) EPCC, d) Conventional,

Thus, PFI is an additional to these..
---------------------------------------
anonymous wrote:
hi, i juz read your post on PFI. Is there any pros and cons in PFI? From wut i've read, PFI don't really works in UK. the article is as follows:

The Confederation of British Industry (CBI) reported that the PFI procurement

process wastes an average of £2.45m per hospital scheme worth £60m or more since 1994. This represents 1.05% of a project's capital value. Ifthe trend continues, the CBI believes the waste could end up reaching at least £122m on upcoming hospitals. The procurement process was found to typically take 39 months when 18 months is recommended . (Source: Building, 21 April 2006)

What about Malaysia?

----
Posted: 24 August 2006 at 11:46pm

Nik Zafri's Response

Good observations. One tiny thing…the PFI definition is not mine..it’s wikipedia’s (of course I reserve my comments..for now) Pros and cons…what doesn’t? If I read the statement you’ve inserted here carefully, there’s something along the line saying about ‘process wastes.’ Now if I’m not far too mistaken, in the thread – construction quality management, I did talk about ‘cost of quality’. And if I read it right again, the statement sounds like it’s taken from some audit report (intergrated financial and process audit – the accenture way)…yeah…they cover ‘cost of quality’ too – defects, system NCRs, logistics, and so on (even has years of projections on 'waste' alone) Well buddy, not only PFI, ‘waste’ issue is happening everywhere – even in Turnkey/Design & Build /EPCC /conventional…But again, this does not mean in any way that I’m with or not with PFI. Let's wait and see first. It's not really fair to pass a judgement in such a short time.
----------------------------
Posted: 15 November 2006 at 2:14pm

Azlin_Rahim wrote:

hello there.. hurm..finally i can write something here.. im so busy with my examination..heheheyup..still with the PFI.. as far as i concern PFI is one of the extension of privatison..however i am really confused with the PFI accordance with 9MP..its kinda looks like PFI have the similarities with the BOT, i guess..correct me if im wrong..thank you...


azlin_rahim wrote:
Hello back. In theory, I would agree with you that PFI could be the 'upgrade version' of privatisation and even not too wrong to say that PFI has the elements of 'Turnkey' & D & B as well, but according to this link,* there is a difference.


* Excerpt :

Those who say that PFI is privatisation have got it wrong because, while the private sector is rightly helping in public service delivery, the public interest is paramount.

PFI is thus quite distinct from privatisation – where for example in privatised health or education it would be the market and the price mechanism, not the public (sector), that defined and provided the service directly to those customers that can afford it and thus where the public sector can end up sacrificing both fairness and efficiency in the delivery of these core services.

So there should be no principled objection against PFI expanding into new areas where the public sector can procure a defined product adequately and at no risk to its integrity. The private sector may have a core skill the public sector can benefit and learn from, such as in the provision of employment and training services, the renovation of schools and colleges, major projects of urban regeneration and social housing, and the management of prisons. In each of these areas we can show that the use of private contractors is not at the expense of the public interest or need be at the expense of terms and conditions of employees. If we can secure greater efficiency in the provision of the service, it is one means by which the public interest is advanced.
-------------------------
BOT is the mechanism of PFI and they are not independent but rather complementary in a sense that PFI uses BOT method to move. Here's another good link:*

* Excerpt :

The Private Finance Initiative, or PFI hereafter, is a new initiative to construct and operate public facilities by the private sector. It is designed to make high quality and cost effective projects possible through utilizing the strength of the private sector and through business competition. It can use the private sector’s various financing method, good services, technologies, know-how, and marketing capability. In PFI, most popular schemes are BOT and BOO.

In the BOT scheme, a government grants the private sector to finance, build and operate a public facility. The private sector builds and operates the facility mainly at their own risk for certain period (say 10 to 50 years). After a certain concession period, the facility is transferred to the government.

In the BOO scheme, the difference from BOT is that the ownership of the project remains in the private sector.

PFI are used in a rather large projects, such as railways, highways, ports, airports, water supply, waste water treatment, telecommunication, power plants and pipeline gas distribution.

The roles of the governments in a host country and the private sector are as the follow:

-Grant of concession
-Tax incentives
-Appropriate land and space
-Subsidies or any assistance if necessary
-Minimum operating income guarantees
-Support loan and standby financing, and
- Risks which private sector can not bear, such as political
risk, environmental risk and so forth.

The role of the private sector is to do the following:

- High quality and cost effective public service
- Low cost finance arrangements
- Technology and skill transfer
- Contractual schedule control
- Management of four risks, namely
--Facility completion risk
--Operating risk
--Proceeds collecting risk, and
--Investor’s risk
------------------------------
Again, I'm neither saying nor commenting on PFI or RMK 9 in Malaysia due to (again) 'it's too early to tell' and unfair to theorize before seeing end-results...

Good luck in your studies.
------------------------------
Posted: 18 December 2006 at 10:07am

Response by Su_Za

I did my PhD reseach on PFI in the UK. So, just to share with everyone some info on PFI.
...............................................
Types of PFI Projects

Basically, there are three types of projects that the government encourages within the PFI; services sold to the public sector, financially free-standing projects and joint ventures (Treasury Taskforce, 1997a: para. 1.05-1.06; Akintoye et. al, 1998; and Allen, 2003). At present, the major focus of PFI activity has been on the first of these, i.e. services sold to the public sector (Treasury Taskforce, 1997a: para. 1.05)

a. Services sold to the public sector

The provision of public services using assets that are financed, designed, built and operated by a private sector consortium and are paid for by a public body through service charges (Armstrong, 1996 and The Scottish Parliament, 1999). These are normally referred to as Design, Build, Finance and Operate (DBFO) schemes. Under the scheme, the public sector purchaser needs to be assured that services provided will give greater value for money (VFM) than the conventional procurement. Examples of the DBFO projects are:

· the provision of prison places by the private sector through designing, building, financing and operating new prisons

· hospitals where the private sector will meet the costs of the building and take on the responsibility for the provision and management of ancillary services such as cleaning, catering and maintenance (Illidge and Cicmil, 2000)

In other words, at the heart of the DBFO approach the focus is changed away from the procurement of assets to the purchase of services associated with those assets (Dick and Akintoye, 1996).

b. Financially free-standing project

This is where the project is entirely financed and managed by the private sector. The revenues for the services supplied are mainly from payment by the end users. This type of project does not require a VFM test but does require government approval (Owen and Merna, 1997). In other words, public sector involvement is limited to enabling the project to go ahead through assistance with planning, licensing and other statutory procedures. The Second Severn Bridge and the Dartford River Crossing are the examples of projects under this category (Treasury Taskforce, 1997a: para. 1.06).

c. Joint ventures

For this type of project, the public and private sector work as a partnership but the private sector retains control. The public sector investment could be in the form of grant, guarantee or subordinated debt. In return, the public sector will receive a proportional share of any profit (Illidge and Cicmil, 2000). This type of project requires a VFM test and needs to conform to these criteria:

· Private sector partners in a joint venture should be chosen through competition
· Joint venture control held by private sector
· A clear definition of the government’s contribution and its limitations
· Clear agreement of risk and reward allocation, defined and agreed in advance, ensuring that the private sector is genuinely assuming some of the risk.

The Channel Tunnel rail link, Croydon Tramlink, Manchester’s Metrolink and urban regeneration schemes are examples of joint venture projects.
The Star Global Malaysians Forum

preferred-anonymous student by e-mail wrote:
Dear Encik Nik, I like to know in general of the common methods of building insulation and the insulators that is no longer used and why?


Dear student, thank you for your query. Please be be more specific in your question as building insulation methods depend on so many factors e.g. type of building/structure, calculations and types of insulation e.g. blankets, radiant barrier, batts, (even loose fills), cellulose, foams, rigid panels, fiberglass, SIP etc. Please help me to understand.

The insulators you've mentioned - I think - not only no longer be used but have been banned in the market as well eg. asbestos & urea formaldehyede foam.
--------------------------------
Posted: 26 July 2007 at 1:36pm

sam by email wrote:
Mr. Nik, I am joining a newly-operational factory having interest in precast concrete. I did not have much experience in this line - except the basics. Since I'm expected to do some presentations to contractors, I would like to get any useful tips from you on how precast concrete works.


Thanks Sam for the question. I'm glad that I do have a little bit of experience in precast technology. If I may comment, you didn't specifically mentioned what type of precast products that your company are dealing with. The standard ones are beams (upright, rectangular, T-inverted), drains (inlet/trench/cast-in)/manholes/culverts, railings, fences, railway ties/sleepers, core slab (hollow),planks, retaining walls etc.

The other type is the 'customized' precast products using special moulds/forms that can be reused again and again. This type is usually well-oiled and undergo two or more types of curing - i.e. 1. in the form itself, and 2. in the yard : prior to delivery to site.

These types are useful for special constructions like bridges, tunnels, buildings etc. e.g. Tunnel segments (RAPID/PUTRA LRT Tunnel from Ampang Park to Masjid Jamek), precast facade, load bearing walls,columns (single/double tier with corbels-> e.g. highways)
etc.

Precast (especially the modern/special types) is a wonderful discovery indeed - one of my ex-MD used to call it 'Lego Technology' (e.g. Teachers Quarters in Gombak) It's a bit pricy but worth investing - it's fire & sound proof, can stand extreme weather (durability also guaranteed), longer shelf-life, very time saving - imagine this, while you're placing foundations at site, your walls are being manufactured (or cast at a different place) at the same time etc.)

(wow..I'm talking like a salesman)
------------------------------
Posted: 10 February 2007 at 2:33pm

emailquery wrote:
Our consultants have issued NCRs regarding accurate positioning of piles. We have argued with the consultants that positioning of piles depends on the type of work that is being done but failed to convince the C & S consultant (working for the client). As an experienced QA/QC man cum a Consultant, what do you think, Encik Nik?"


First of all, you are almost correct (theoretically speaking as I'm not there at the project site..so it's hard to assume or say) in terms of 'depending on type of work' and piling positioning (it doesn't have to be too accurate) - unless you're talking about bridges (spaced footing clusters), THEN the consultants are right!

I assume you're talking about building and that you've reached the pile driving stage. For example in in a large mat foundation supported on piles at relatively wide centers- of course it is impossible for you to get an exact measurement. Strong templates may also be applied to ensure proper centering if close tolerances apply.

Handle pile with proper care - set plumbs in the lead. Attention is required for precast piles lifting e.g. use of rigging, to avoid cracking the piles. Installed but misaligned/crooked piles cannot be repaired anymore..remember..

The rest are hammering and driving like the weight of hammer vs pile being drived and the use of jetting to facilitate pile-driving.

Anyway, you should honour the clients/consultants NCR as what they really want is the BEST measurement you can come out with. After all they are professional engineers.
The Star Global Malaysians Forum - Posted: 13 September 2006 at 8:36pm

Question by stingray2000

Hi Nik, I'm have a zero knowledge on the construction/building. But I just wonder how to build a house/apartment on the land rising on the sea? Is the any website for the beginner ?
--------------------------
Posted: 13 September 2006 at 8:46pm

Nik Zafri's response

I'm sure you've been to resorts/hotels near the sea? The concept is very much the same. Before I answer to your queries...I'm curious...why would you want to build one when you can easily find lots of finished properties near the sea?
----------------------------
Posted: 13 September 2006 at 8:57pm |

Stingray2000's response

Just for my curiousity, I would like to know more about the concept of raising the land from the sea in malaysia? I heard from rumours that the housing build on the sea will have potential problem(land sinking etc) later on...have you seen this issue before ? It remind me the collapse of condominium case ...

Just for my curiousity, I would like to know more about the concept of raising the land from the sea in malaysia? I heard from rumours that the housing build on the sea will have potential problem(land sinking etc) later on...have you seen this issue before ? It remind me the collapse of condominium case ...
-----------------------------
Posted: 13 September 2006 at 9:48pm

Nik Zafri's Response :

Exactly why I asked. And it's pretty costly as well - in the context of raising the land - dredging expenditures - perhaps may require more sand as well for filling (of course - bays would become deeper/wider increasing erosion - not to mention disturbing inhabitants of marine life around the offshore sand deposits)

Not only houses & condominiums but chalets, hotels etc. using the similar concept are also facing the same risks. (I'm sure they are all well-aware of that)

We can only try our best to prevent such negative effects like planting more big trees - coconut/palm, 'sophisticated' soil treatment (vs shrinkage), drive the concrete foundation piles deeply into the sand, pile caps supporting casting concrete piers, floor slabs supported by masonry shear walls/steel tube columns etc.

But again, the 'force of nature' can be too strong sometimes and I do pity those businesses like hotels, chalets, yacth clubs, marinas because I love these places for good vacations and scenic views but I have also noticed the cost of maintenance and possible migration everytime I visited them - but what to do? What if I'm in their shoes? Tourism business is 'damn' good and it a definite money-generator and the profit will at least 'top up' the maintenance/migration costs. (I'm being positive here actually)

Some of the tips I can give to you are (besides what I've mentioned in the 2nd para) - be 'alert' on certain climate shift, atmospheric conditions (ie temperatures), news/history of disasters, rain pour, possible erosions, researches on greenhouse effects, inundation, type of barriers/dikes/polders used near the seaside, pumping system (sand/sea water) etc. - in short you should start some serious homeworks if you plan to buy or build one.

Good luck.
The Star Global Malaysians Forum - Posted: 20 September 2006 at 5:31pm

The Star News (Courts) - September 20, 2006.

Judge: Firm did not commit offence

KUALA LUMPUR: It was a case of the wrong entity charged. A Sessions Court yesterday discharged and acquitted a subcontractor accused of a negligence that led to the death of corporate consultant Dr Liew Boon-Horng. In delivering his verdict, Judge Akhtar Tahir said he found that MWE Advance Structure Sdn Bhd had not committed any offence as framed against it under Section 20(3) of Occupational Safety and Health Act 1994.

(The section states that the person who erects or installs any plant for use by persons at work must ensure that nothing about the way it is erected or installed makes it unsafe or a risk to health when properly used.)

MWE Advance Structure was charged with failing to ensure the safe installation of a steel formwork by Higro Enterprise on the 20th floor of Block B, Plaza Damas. A representative of the company had on April 20 pleaded not guilty to the charge.

(Formworks are moulds into which concrete or similar materials are poured into at a construction site.)

Akhtar said Section 20(3) of the Act did not mention that the person who allowed the installation of the steel formwork to have committed an offence.

(The company had engaged Higro Enterprise as a specialist formwork contractor for the Plaza Damas condominium project).

Dr Liew, 35, managing consultant of Ethos Consultant, was killed when an iron mould, weighing almost two tonnes, fell onto his BMW as it was being driven into the car park of Plaza Damas last Dec 30. Akhtar said he was of the opinion that it was Higro Enterprise that had committed the offence under Section 20(3) of the Act.

"Based on the charge, the installation of the steel formwork was done by another party, which is Higro.

"It is my opinion that Higro had committed the offence and not MWE Advance Structure.

"Therefore, I have to give an acquittal to MWE Advance Structure because this offence did not exist," he said.

The judge gave his decision after hearing a preliminary objection raised by the company’s lawyer Rosli Dahlan on Sept 4, that the charge framed against MWE Advance Structure was defective. In the same court, supplier Simple Formwork Construction Sdn Bhd had claimed trial to failing to take the necessary steps to ensure that the steel formwork supplied to Higro Enterprise was safe for use.
-------------------------------
It's NOT my intention to question the judge's final ruling and I respect the court's final decision. (unless both Higro/Simple Formwork wish to contest the decision)

Alas, I'm a bit confused on charges especially being made on Simple Formwork and Higro Enterprise. I might be wrong but :

What is the real problem actually?

"Based on the charge, the installation of the steel formwork was done by another party, which is Higro.

"It is my opinion that Higro had committed the offence and not MWE Advance Structure.

"Therefore, I have to give an acquittal to MWE Advance Structure because this offence did not exist," he said.

MWE is the main contractor - (thus, it's a lesson for them that in the future), they should have a system that takes into account :

a) Criterions of selection of sub-contractors (including Higro),

b) Sample submission/inspection and test results (prior to installation) from Higro to MWE (as part/parts of contract requirements),

b) Criterions of annual performance appraisal of the sub-contractors,

c) Monitoring system during installation process.

Remember, failure in sub-contractor's work may also reflect the failure of the main contractor as well.

And where does The Client's (Client to MWE) responsibility fall under?


Excerpts from New Straight Times - 03/01/2006

On Sunday, visiting the Sri Hartamas crime scene — for that is what it may well out turn out to be — Fong had occasion to see red. Seven warnings had been served for various safety violations in the 26 months since work on the office and apartment building began. Residents, as in many other instances, complained of flying debris and noise. The contractor’s delinquency seems to have been evident enough to leave nothing amiss in the Department of Occupational Safety and Health’s inspection procedures, which gave the company a "D" for compliance. "This clearly indicated no commitment on the part of the management to adhere to the regulations and prioritise safety," said Fong.

Another excerpt - NST 02/01/2006

Failed: seven out of nine worksite inspections. That’s the safety record of the construction company in charge of the worksite from which a cement mould fell 20 storeys and crushed a management consultant to death in his car.The company, MWE Advance Structure Sdn Bhd, was served seven stop-work orders in the 26 months since construction work on Block B of the Plaza Damas serviced apartments began. It was allowed to resume work after each breach was rectified, said Human Resources Minister Datuk Seri Dr Fong Chan Onn.

The company is a unit of listed group MWE Holdings Bhd.

"MWE (Advance Structure) did not have a good safety history," said Fong.

The company was given a safety rating of D, E being the lowest rating by the Department of Occupational Safety and Health. Fong did not say what the ranking indicated.The company had also been served three compounds for safety breaches since work started on Oct 28, 2003. The last inspection before Friday’s tragic accident was on Sept 27, 2005. Among the main offences were unsafe scaffolding and the absence of guardrails. Also, load platforms had not been designed by certified engineers, and they had used unregistered heavy machinery.

On Simple Formwork - they were separately being charged for failing to take the *necessary steps* to ensure that the steel formwork supplied to Higro was safe to use.

Questions :

"Who charged Simple Formwork? Higro?", "What's the relationship between Higro and Simple Formwork? - Is Simple Formwork another supplier to Higro?"

The *necessary steps* as I understand them are (not limited to the following) :

method statement, work/manufacturer's instruction, standards and codes of practice, monitoring and follow-up, sample submission, proper inspections, specification adherence etc.

If Simple Formwork seem to have all these, then check again, it may be problems of insufficient/unsuitable installation methods or monitoring/follow-up from them on Higro during installation process.

On Higro, if I read the first news right, it says something like :

(The company had engaged Higro Enterprise as a specialist formwork contractor for the Plaza Damas condominium project).

and

In the same court, supplier Simple Formwork Construction Sdn Bhd had claimed trial to failing to take the necessary steps to ensure that the steel formwork supplied to Higro Enterprise was safe for use.

It's odd that Higro failed to realize during installation that the 'formwork is NO GOOD?" being a specialist?

The charges on Higro is 'fail to ensure steel formwork properly installed'

The charges for Simple Formwork is 'formwork is found not safe to use?'

How do I connect the two?

Actually, nobody thought that the tragedy will happen on the first place - that's why too many parties 'took for granted' on the 'specs' I've mentioned above. When everybody got the 'sudden electrical shock' due to this unexpected fatal accident, I hope it's not the typical 'finger pointing' under the pretext of law that is happening at the moment.

-------------------------------
Posted: 22 September 2006 at 9:37pm

Well, it appears that my last message has drawn so many attention from so many parties. Some were good, some were inquisitive/curious and some simply asked me to 'reconsider' my comments. Please register as GMN members and put your comments here and we can start a whole new 'show' in a more healthier way. The following is one of them (good ones) that appeared in another forum.

Assalaamu'alaikum wbr.

Terlebih dahulu, izinkan saya merakamkan tahniah kepada tuan/puan semua kerana terlibat dalam forum ______. Ini merupakan tanda betapa tingginya keprihatinan/perjuangan tuan/puan semua terhadap keselamatan dan kesihatan pekerjaan di Malaysia.

Walaupun saya tidak pernah terlibat secara aktif dalam forum ini, namun kita semua mempunyai matlamat yang sama demi 'menyelamatkan seberapa banyak nyawa' di tempat kerja menerusi sistem pengurusan keselamatan dan kesihatan pekerjaan yang dipayungi oleh Akta Keselamatan dan Kesihatan Pekerjaan 1994.

Saya ingin menarik perhatian kepada e-mail yang dihantar oleh saudara____ (____) dan pendapat beliau serta lain-lain pendapat bernas dalam forum ini hasil daripada komen saya di Global Malaysian Forum di bawah kelolaan akhbar The Star. (saya sarankan _____ membaca lain-lain komen dalam forum yang sama dan tidaklah hanya melihat kepada komen berkenaan sahaja, kerana saya telah mengikuti kes ini semenjak ianya bermula lagi)

a. Saya tidak mewakili dan tidak pernah terlibat dengan mana-mana pihak dalam Plaza Damas,

b. Pendapat saya adalah pendapat peribadi serta bukanlah ingin mempersoalkan kes yang sedang dibicarakan atau mempersoalkan keputusan mahkamah sepertimana dakwaan ______ (perkara ini juga telah saya jelaskan kepada beberapa pihak tertentu yang memberikan maklumbalas terhadap komen saya dan semuanya saya kira telah diselesaikan) Pendapat saya lebih kepada mengingatkan kontraktor utama supaya menyemak semula sistem untuk ditingkatkan (terutamanya dalam aspek pemantauan dan penilaian yang lebih efektif)

c. Saya tidak pernah mengenali mangsa secara rapat - cuma kebetulan mendiang pernah terlibat dalam pembikinan KPI untuk GLC di mana saya juga terlibat dalam perkara yang sama tetapi menerusi firma perundingan yang berbeza,

d. Saya bersetuju dan telah menyimpulkan dalam pendapat berkenaan bahawa - kemungkinan ada elemen 'tuding-menuding' atau 'tuduh-menuduh' (blaming culture/fingerpointing) sedang berlaku (seperti kebiasaan). Saya harap undang-undang dapat menyelesaikan masalah ini seadil-adilnya supaya tidak ada pihak yang tidak bersalah tiba-tiba dipersalahkan pula.

e. Cuma saya juga mengharapkan agar pihak klien - kontraktor utama - sabkontraktor/vendor/pembekal tidak mengamalkan sikap mengambil mudah terhadap pelaksanaan keselamatan & kesihatan pekerjaan - walaupun telah ada ribuan sijil/persijilan sekalipun atau dokumentasi yang 'canggih' atau pernyataan dasar yang begitu indah dan lain-lain.

Walaubagaimanapun, saya ingin merakamkan ucapan terima kasih sekali lagi kepada tuan/puan semua dan _____ kerana sudi membaca pendapat saya yang tidak seberapa itu.

Wassalaamu'alaikum wbr.

Salam Hormat Seperjuangan
Nik Zafri

Wednesday, June 11, 2008

The Star Global Malaysians Forum - Posted: 09 January 2007 at 7:33pm
Question on Performance Bond. Here's something you may like :

http://www.attny.com/gci32djd.html

Construction Surety Bonds In Plain English

This article is an abridged version of Federal Publications’ February 1996 CONSTRUCTION BRIEFINGS entitled Surety Bond Basics, copyright 1996 by Federal Publications, Incorporated, written by Messrs. Donohue and Thomas. A complimentary copy of the CONSTRUCTION BRIEFINGS may be obtained by contacting our firm. Subscriptions to CONSTRUCTION BRIEFINGS are available from Federal Publications, Incorporated, 1120 20th Street, N.W., Washington, D.C. 20036. You may call Federal Publications at (202) 337-7000 or (800) 922-4330.

Most construction contractors are familiar with the process of obtaining surety bonds, but they may not be aware of the legal relationships bonds establish the relationships among the principal (the contractor), the obligee (usually the owner) and the surety. Contractors’ lawyers, on the other hand, are aware of the rights and the obligations of the principal, obligee, and surety, but they may lack practical knowledge about the process of obtaining bonds. This article is directed to both contractors and their lawyers. It explains in plain English just when construction surety bonds are required on federal, state, and private projects, and the bonding requirements contained in widely used contract forms, including federal government contracts, AIA contract forms, and the AGC subcontract form.

SOME SURETY BOND BASICS

A surety bond is not an insurance policy. A surety bond is a guarantee, in which the surety guarantees that the contractor, called the “principal” in the bond, will perform the “obligation” stated in the bond. For example, the “obligation” stated in a bid bond is that the principal will honor its bid; the “obligation” in a performance bond is that the principal will complete the project; and the “obligation” in a payment bond is that the principal will properly pay subcontractors and suppliers. Bonds frequently state, as a “condition,” that if the principal fully performs the stated obligation, then the bond is void; otherwise the bond remains in full force and effect.

If the principal fails to perform the obligation stated in the bond, both the principal and the surety are liable on the bond, and their liability is “joint and several.” That is, either the principal or surety or both may be sued on the bond, and the entire liability may be collected from either the principal or the surety. The amount in which a bond is issued is the “penal sum,” or the “penalty amount,” of the bond. Except in a very limited set of circumstances, the penal sum or penalty amount is the upward limit of liability on the bond.

The person or firm to whom the principal and surety owe their obligation is called the “obligee.” On bid bonds, performance bonds, and payment bonds, the obligee is usually the owner. Where a subcontractor furnishes a bond, however, the obligee may be the owner or the general contractor or both. The people or firms who are entitled to sue on a bond, sometimes called “beneficiaries” of the bond, are usually defined in the language of the bond or in those state and federal statutes that require bonds on public projects.

TYPES OF SURETY BONDS

BID BONDS

A bid bond guarantees the owner that the principal will honor its bid and will sign all contract documents if awarded the contract. The owner is the obligee and may sue the principal and the surety to enforce the bond. If the principal refuses to honor its bid, the principal and surety are liable on the bond for any additional costs the owner incurs in reletting the contract. This usually is the difference in dollar amount between the low bid and the second low bid. The penal sum of a bid bond often is ten to twenty percent of the bid amount.

PERFORMANCE BONDS

A performance bond guarantees the owner that the principal will complete the contract according to its terms including price and time. The owner is the obligee of a performance bond, and may sue the principal and the surety on the bond. If the principal defaults, or is terminated for default by the owner, the owner may call upon the surety to complete the contract. Many performance bonds give the surety three choices: completing the contract itself through a completion contractor (taking up the contract); selecting a new contractor to contract directly with the owner; or allowing the owner to complete the work with the surety paying the costs. The penal sum of the performance bond usually is the amount of the prime construction contract, and often is increased when change orders are issued. The penal sum in the bond usually is the upward limit of liability on a performance bond. However, if the surety chooses to complete the work itself through a completing contractor to take up the contract then the penal sum in the bond may not be the limit of its liability. The surety may take the same risk as a contractor in performing the contract.

PAYMENT BONDS

A payment bond guarantees the owner that subcontractors and suppliers will be paid the monies that they are due from the principal. The owner is the obligee; the “beneficiaries” of the bond are the subcontractors and suppliers. Both the obligee and the beneficiaries may sue on the bond. An owner benefits indirectly from a payment bond in that the subcontractors and suppliers are assured of payment and will continue performance. On a private project, the owner may also benefit by providing subcontractors and suppliers a substitute to mechanics’ liens. If the principal fails to pay the subcontractors or suppliers, they may collect from the principal or surety under the payment bond, up to the penal sum of the bond. Payments under the bond will deplete the penal sum. The penal sum in a payment bond is often less than the total amount of the prime contract, and is intended to cover anticipated subcontractor and supplier costs.

JW Surety Bonds offers performance bonds for small to large contractors throughout the country. Get a free quote using our online applications.

Bryant Surety Bonds provides free quotes for performance bonds based on personal credit for small contractors and competitive for medium to large contractors.

SURETY BOND REQUIREMENTS ON FEDERAL PROJECTS MILLER ACT AND FAR REQUIREMENTS

The Miller Act, 40 U.S.C. §§ 270a-270f, provides that all federal construction contracts performed in the United States must require the contractor to furnish a performance bond in an amount satisfactory to the contracting officer; a payment bond in a penal sum of up to $2.5 million, and other surety bonds as well. In the Federal Acquisition Streamlining Act of 1994, Congress made the Miller Act inapplicable to contracts under $100,000, and directed agencies to develop alternatives to surety bonds for contracts between $25,000 and $100,000. These statutory requirements are implemented in FAR part 28, bonds and insurance. You can get a good introduction to the language and purposes of surety bonds simply by reading FAR part 28.

BID BONDS

A bid guarantee is required on federal projects whenever a performance bond and/or a payment bond is mandated. Bid guarantees usually are in the form of bid bonds, but on federal projects they may also be submitted as a postal money order, certified check, cashier’s check or an irrevocable letter of credit. A bid guarantee must be in an amount equal to at least twenty percent of the bid price; the maximum amount is $3 million. The standard solicitation provision requiring bid guarantees says that if the contractor awarded the contract fails or refuses to execute all contractually required documents, the agency may terminate the contract for default. In such a case, the agency will make a demand on the bid bond or bid guarantee to offset the difference in price between that bid and the next lowest bid. Bid bonds and bid guarantees are returned to unsuccessful bidders after bids are opened; bid guarantees are returned to the successful bidder after all contractually required documents and bonds are executed.

PERFORMANCE BONDS

As amended by the FASA, the Miller Act requires payment bonds and performance bonds for all federal contracts over $100,000. The penal amount of the performance bond is generally one hundred percent of the contract amount, and the penal sum is generally increased for each change order. The surety is entitled to receive information from the contracting officer concerning the progress of the work, payments, and estimated percentages of completion whenever it so requests in writing. The form of the Miller Act performance bond is set out at FAR 53.301-25.

PAYMENT BONDS

Payment bonds are now required for all federal construction contracts over $100,000. The penal amount of the payment bond is required to be a maximum of $2.5 million where the contract price is more than $5 million; for contracts less than $5 million, the penal sum of the payment bond is to be forty to fifty percent of the contract price. Each solicitation must state that a payment bond and performance bond are required, the penal amount required for the bonds, and the deadline by which bonds must be submitted after contract award. The form for a Miller Act payment bond is at FAR 53.301-25-A. The bond form does not set out any time limitations for claims against the bond. However, the Miller Act provides that suits against a payment bond must be brought within one year after the date on which the last of the labor was performed or material was supplied. In addition, the Miller Act requires that second-tier subcontractors and others who do not have a direct contract with the prime contractor submit a written notice of their claim to the prime contractor with ninety days of the last date of their work on the project.

REQUIREMENTS FOR QUALIFIED SURETIES

Federal surety bond requirements may be met in three ways: surety bonds issued by an approved corporate surety; surety bonds issued by an individual surety who pledges certain defined types of assets; or by the contractor pledging assets directly. The third option is uncommon.

REQUIREMENTS FOR INDIVIDUAL SURETIES

Individuals may act as sureties to satisfy bonding requirements on federal projects if they have certain acceptable assets in the required amounts to support the bonds. Although federal agencies probably would prefer to deal only with approved corporate sureties, allowance for individual sureties may enhance competition by allowing awards to contractors that might not otherwise qualify to obtain bonds from an approved corporate surety.

To support bonds issued by individual sureties, agencies may only accept cash, readily marketable assets, or irrevocable letters of credit from a federally insured financial institution. Acceptable assets include cash, certificates of deposit or other cash equivalents; U.S. agency securities (valued at current market value); stocks and bonds traded on the New York, American and certain other exchanges, valued at ninety percent of their current 52-week low price; real property owned outright in fee simple, valued at one hundred percent of its current tax assessment value; and irrevocable letters of credit issued by federally insured financial institutions. Examples of unacceptable assets are also listed in the regulations. Unacceptable assets are those that may be difficult to liquidate (e.g., a life estate in real property); are of uncertain or greatly fluctuating value (e.g., jewelry); property commonly exempt from attachment under state laws (e.g., the individual surety’s home); or commonly pledged to others (e.g., plant and equipment). An individual surety is required to submit an affidavit, in which the surety identifies the assets, the market value of the assets, and all encumbrances on the assets. The affidavit must also identify all other bonds issued by the individual surety within the last three years.

TREASURY LIST OF APPROVED CORPORATE SURETIES

By far the most common means of satisfying federal bonding requirements is by a bond issued by a corporate surety. The Department of the Treasury maintains a list of corporate sureties approved to issue bonds for federal projects, Treasury Department Circular 570. Copies may be obtained from the agency. The circular also is posted in the Treasury’s computerized bulletin board at (202) 874-6817, and on Treasury’s Web site at http://www.ustreas.gov/. Whenever a new corporate surety is added to the approved list, a notice is published in the Federal Register. Contracting officers are prohibited from accepting surety bonds issued by corporate sureties not listed in Treasury Circular 570. The circular lists the name and address of each approved surety and all states where each surety is licensed.

When approving corporate sureties, Treasury makes a determination as to the financial strength of the surety, and sets an underwriting limit, commonly called a bonding limit. The bonding limit is also stated in Circular 570. When an approved surety offers a bond on a federal project, the contracting officer checks to make sure that the surety has not exceeded the surety’s bonding limit. Because of these underwriting limits, surety bonds on very large construction projects, valued in the hundreds of millions of dollars, frequently are issued by several different approved surety companies, acting as co-sureties. The name of each co-surety will appear on the bond, along with its individual limit of liability.

Another way surety companies can stay within their approved surety underwriting limit, and spread their risk, is to obtain coinsurance or reinsurance, in which they essentially obtain a contract from another surety company to cover part of their risk on the bond they have issued. When a surety obtains reinsurance for part of its risk under a Miller Act bond, it must submit to the contracting officer a reinsurance agreement for a Miller Act performance bond and a reinsurance agreement for a Miller Act payment bond. The terms of both reinsurance agreements are stipulated in the regulations.

SURETY BOND REQUIREMENTS ON STATE PROJECTS-“LITTLE MILLER ACTS”

Statutes in all fifty states and the District of Columbia require performance and payment bonds for state government construction contracts. These state statutes often are called “Little Miller Acts” because many of them are modeled after the federal Miller Act. Useful information is available from the National Association of Surety Bond Producers. A good discussion of these Little Miller Acts is in Federal Publication’s CONSTRUCTION BRIEFING, Little Miller Acts. A fairly recent summary listing of these state statutes, along with citations, is in Bednar, et al., CONSTRUCTION CONTRACTING, George Washington University (1991), at 1309a-1309r. We will not duplicate these discussions. Each state licenses sureties to issue bonds. The Little Miller Acts each require bonds by licensed sureties. You can identify sureties licensed in particular states by checking Circular 570 on the computer bulletin board and at Treasury’s World Wide Web site.

SURETY BOND REQUIREMENTS IN PRIVATE CONSTRUCTION PROJECTS

There obviously is a great variation among private construction owners and projects throughout the United States. Performance bonds and payment bonds are required by owners for most large construction projects. If the owner elects to require surety bonds, major issues for the owner to decide during project planning are:

WHAT BONDS SHOULD BE REQUIRED?

Performance bonds protect the owner from contractor default and delays, and these are important for commercial properties with fixed tenant availability dates. Payment bonds protect the property from mechanics’ liens, which might otherwise interfere with sale or refinancing of the property. Bid bonds, which generally address only the price-spread between the low and next to lowest bid price, serve a much narrower purpose. However, because of the expectations and requirements of the bid package, corporate sureties generally will issue bid bonds only to contractors who qualify for performance and payments bonds. Thus a requirement for a bid bond may help narrow the field of bidders to only those firms who can actually satisfy performance and payment bond requirements.

WHAT SURETY COMPANIES ARE ACCEPTABLE TO THE OWNER?
Since a surety bond essentially is a guarantee by the surety, the owner has an interest in deciding which sureties are acceptable. One means of identifying responsible sureties is to refer to the list of sureties approved in Circular 570.

WHO PAYS THE BOND PREMIUM?

Of course, the owner eventually pays all costs anticipated in the contractor’s bid, whether the project is fixed-price or is a cost-plus-fee arrangement. A private owner may want to provide separate reimbursement for the contractor’s bond premium cost when the bond is delivered to the owner. This procedure ensures that bonds actually are furnished.

SPECIFYING THE AMOUNT OF BONDS.

Premiums rise along with the penal sum of the bond, and the owner ultimately pays these costs in the contract price. Nonetheless, the owner has an interest in setting the bond penal sum high enough to provide the desired protection to the project. A fairly good guideline for setting penal sums is the FAR requirement discussed hereinabove. The penal sum for the performance bond should be one hundred percent of the original contract price, and the penal sum should be increased for each change order. The payment bond should be fifty percent of the contract price up to some fairly large maximum penal sum.

SURETY BOND PROVISIONS OF STANDARD FORM CONTRACTS

Popular form contracts for private construction projects, those published by the American Institute of Architects (AIA) and the Associated General Contractors of America (AGC), leave bonding requirements to the choice of the parties. Thus these forms do not provide much guidance in deciding the issues we have identified. The current AIA General Conditions merely provide that the owner may require bonds elsewhere in the contract documents and that the contractor must furnish copies of the bonds upon request to any bond beneficiary (e.g., subcontractors or suppliers). AIA Document A-201 also provides that compensation for construction change directives ordered by the owner shall include bond premiums for the extra work. AIA’s current owner-contractor agreement, AIA Document A-101, does not address surety bonds at all. AIA’s contractor-subcontractor agreement, AIA Document A-401, addresses bonding requirements in article 7 by leaving a blank area for the parties to add any bonding requirements.

The current AGC Standard Form for Construction Subcontract, also endorsed by the American Subcontractors Association and the Associated Specialty Contractors, addresses surety bonds in article 5. Paragraph 5.1 provides that copies of the contractor’s payment and performance bonds must be furnished to a subcontractor on request. Paragraph 5.2, “Subcontractor Bonds,” provides that if bonds are required from the subcontractor, the subcontractor shall be reimbursed for surety bond premiums in the first progress payment. Performance and payment bonds must be in the full amount of the subcontract price, unless otherwise stated.

PROVISIONS OF STANDARD AIA BOND FORMS

Private construction contracts rarely require particular bond language. Rather, they usually require bonds in a specified amount with a surety acceptable to the owner, general contractor or other obligee. The AIA’s bond forms, AIA Documents A-311 and A-312, are popular and instructive; thus their provisions merit a brief discussion.

AIA’s performance bond form, AIA Document 311, provides that the surety waives notice of change orders and extensions of time. It says that the owner is the only person who can sue to enforce the performance bond, and that any such suit must be brought within two years from the date final payment is due under the contract. It also provides, if the owner declares the contractor in default, that the surety shall either complete the contract or, if the owner elects, shall obtain bids so that the owner may contract directly with a completion contractor with the surety providing funds sufficient for completion.

AIA’s labor and material payment bond form, AIA Document A-311, is very similar to the Miller Act payment bond required for federal projects. It defines a “claimant” as a person or firm that has a direct contract with either the principal or a subcontractor to the principal. Thus in the typical case where the principal is the general contractor, claimants under AIA payment bonds are limited to subcontractors and suppliers who furnish labor and materials directly to the general contractor or directly to a subcontractor. Claimants are entitled to sue on the bond if they have not been paid within ninety days after the last day of their work on the contract. Claimants that do not have a direct contract with the principal (e.g., second-tier subcontractors) must give a written notice to the owner and the surety within ninety days of the last day of their work advising that the claimant has not been paid. Suits on the payment bond must be brought within one year of the principal’s last day of work on the project. (This is different from bonds under the Miller Act, which requires that suits be filed within one year of the claimant’s last day of work on the project.) Suits must be filed in a state or federal court for the county in which the project was located.

AIA’s combination performance bond and payment bond, AIA Document A-312, is similar to the separate bonds described above, but this one adds some additional provisions. The performance bond contains requirements that the owner give the surety written notice before declaring the contractor in default, and provides for a meeting of the parties within fifteen days of that notice to discuss performance. The performance bond also gives the surety the option of having its principal complete the project, notwithstanding the default, if the owner consents. This probably would be done with financing or other assistance contributed by the surety. The payment bond in AIA Document A-312 requires that claimants that do not have a direct contract with the principal take action in set time frames. Such a claimant must give written notice to the principal that it has not been paid; wait thirty days for the principal’s response, and then notify the surety in writing that it intends to make a claim on the bond. It also requires the surety, within forty-five days of such notice, to pay all undisputed amounts and to respond regarding any disputed amounts.

CONCLUSION

If the terminology of construction surety bonds is confusing at first, you may want to keep this guide as a reference. Surety bonds are required for most large construction projects in the United States and now more frequently they are required in other countries. Our next article will review the process of obtaining surety bonds, the choices contractors have among surety companies, and the agreements typically entered into between contractors and sureties when construction surety bonds are issued.

Questions on a performance bond? Get it answered for free on the Surety Bond Forums.
— Dan Donohue and George Thomas, Assistant Vice-President, Contract Surety Claims, Fireman’s Fund Insurance Company Copyright © 1996 Kilcullen, Wilson & Kilcullen. All rights reserved.

Tuesday, June 10, 2008

INDEKS PRESTASI UTAMA (Key Performance Indicators - KPI/IPU )
UNTUK SEKTOR PEMBINAAN
April, 2006 – Kajian : Nik Zafri Abdul Majid
Sebarang penyalinan, penggunaan, muaturun, cetakan, applikasi, rujukan kepada artikel ini dalam apa juga bentuk sekalipun perlu mendapat kebenaran pengarang terlebih dahulu. Pengarang tidak bertanggungjawab sekiranya mana-mana panduan yang diambil dari artikel ini gagal diaplikasikan oleh kontraktor dan klien tanpa merujuk kepada pengarang atau mana-mana perunding projek dan pengurusan yang bertauliah terlebih dahulu.

Dalam sektor pembinaan, klien memerlukan setiap projek disudahkan berasaskan elemen-elemen berikut :

* masa dan belanjawan yang ditetapkan,
* tanpa sebarang kerosakan,
* efisien
* spesifikasi yang ditetapkan,
* selamat dan berkualiti,
* dibekalkan oleh sebuah syarikat/kontraktor yang berwibawa (dari segi kewangan dan pengurusan)

Klien yang telah mempunyai track record dengan kontraktor yang sama mengharapkan pengurangan dalam kos dan masa projek.

Tujuan adanya Indeks Prestasi Utama (KPI/IPU) adalah untuk memastikan satu bentuk ukuran diwujudkan ke atas prestasi projek dan kontraktor yang menjalankan operasi pembinaan. Maklumat ini akan digunakan sebagai tandaras yang akan menjadi komponen utama sesebuah organisasi bagi mencapai konsep amalan terbaik.

Klien biasanya akan menilai kesesuaian kontraktor dengan sesebuah projek yang dijalankan dengan meminta kontraktor supaya membekalkan maklumat bagaimana mereka dapat menunjukkan prestasi mengikut petunjuk-petunjuk yang telah ditetapkan oleh klien.

Sesetengan maklumat ini boleh didapati daripada kontraktor yang telah pun menjalankan inisiatif penandarasan atau objektif organisasi yang telah diukur dan lain-lain. Maklumat ini akan menentukan kekuatan dan kelemahan sesebuah organisasi/kontraktor dan rancangan untuk meningkatkan lagi mutu perkhidmatan mereka secara berterusan.

IPU/KPI untuk sektor pembinaan perlu mengambilkira elemen-elemen seperti, masa, kos, kualiti, kepuasan klien, pindaan kerja yang dilakukan oleh klien, prestasi perniagaan dan keselamatan kerja.

Terdapat pelbagai petunjuk yang digunakan bagi tujuan analisa samada di peringkat projek atau di peringkat organisasi/kontraktor itu sendiri. Sebelum mendefinisikan IPU/KPI, 5 peringkat utama perlu dikenalpasi iaitu :

* Kesanggupan untuk melabur oleh klien di mana syarat dan keperluan perniagaan serta rekabentuk konsep akan bermula,

* Kesanggupan untuk membina bila masa klien telah mengarahkan pasukan projek memulakan operasi,

* Sediada untuk digunakan apabila projek telah disiapkan dan persediaan untuk menggunakannya telah diatur,

* Tempoh Liabiliti Kerosakan di mana kontraktor perlu memperbaik sebarang kerosakan sehingga tempoh ini tamat,

* Kelupusan Jangkahayat Projek – apabila apa yang dibina telah sedia untuk digunakan oleh pengguna.

Sebelum memulakan aktiviti IPU/KPI, jenis projek dan cara ianya dijalankan perlu diambilkira umpamanya ‘Rekabentuk dan Bina’ (D & B), Turnkey, ‘Kejuruteraan, Pembelian, Pembinaan dan Commissioning (EPCC), Inisiatif Pembiayaan Projek (PFI/IPP), Konvensional dan lain-lain.

Antara petunjuk-petunjuk yang biasa digunakan (IPU/KPI untuk sektor pembinaan) pula ialah:

* Masa – Tempoh pembinaan, tempoh ramalan – rekabentuk dan pembinaan, penukaran spesifikasi yang dijangka/tidak dijangka oleh kedua-dua klien/kontraktor dan tempoh membaikpulih kerosakan.

* Kos – kos pembinaan, kos ramalan – rekabentuk dan pembinaan, kos penukaran spesifikasi yang dijangka/tidak dijangka oleh kedua-dua klien/kontraktor, kos membaikpulih kerosakan dan kos semasa.

* Kualiti – kerosakan mengikut tret/kategori/lokasi dan sebagainya – sebelum, semasa dan selepas tempoh pembinaan, isu kualiti secara proaktif dan reaktif,

* Kepuasan Pelanggan – sebelum (pra-tender/kontrak), semasa (operasi/tempoh kontrak/projek) dan selepas (DLP/CPC/CMGD/CF)

* Penukaran Spesifikasi/Kerja (deviation/amendment) – oleh klien dan kontraktor,

* Prestasi Perniagaan – Keuntungan, produktiviti, pulangan modal kerja, pulangan & ratio tambah nilai (value-added), faedah, pulangan pelaburan (ROI), ramalan keuntungan projek, pesanan ulangan (repeat order) dari klien yang sama, baki kewangan dan tempoh capaian akaun penutup (final accounts)

* Keselamatan dan Kesihatan Pekerjaan – Kemalangan, kematian dan kecederaan (accident/incident) yang dilaporkan (termasuk elemen aktuari jika perlu), dan kemalangan/kematian/kecederaan yang melibatkan kerugian tempoh (loss-time injury/accident/incident – LTI)

Nota : Elemen dan petunjuk sebagaimana yang dipaparkan di atas (faktor a. – g.) adalah panduan pengarang semata-mata dan perlu disesuaikan mengikut jenis projek yang dijalankan. Kadangkala tidak kesemua elemen atau petunjuk adalah bersesuaian.

Klien dan kontraktor (termasuk perunding projek – pelbagai tret) perlu mengambilkira elemen/objektif/petunjuk yang dipilih mengikut prioriti/keutamaan pada masa perancangan IPU dimulakan dan jenis peralatan (seperti QCC/MP) yang sesuai.
The Star Global Malaysians Forum
Posted: 26 September 2006 at 11:58am

Comments by ahvincent

Nowadays most Owners insist that we design certain basic "green" peinciples into buildings. The guideslines are still pretty loosely defined but generally speaking our designs do incorporate the basic generally accepted "green" principles and must be efficient and economical to build.
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Posted: 28 September 2006 at 10:59am

Further comments by ahvincent

I read somewhere they have started to construct a wind farm in the Mornington Peninsula in Victoria where it is always windy 365 days a year. I think they are saying that eventually there will be 2,000 such mills in the farm.

Some people say it is not economical....but I don't know or understand why it wouldn't be. It certainly is eco friendly. Well, I will just have to wait and see what will come out of it in the future.

Co-generation of electricity is already practised in parts of Europe and Japan. Australia is currently building a massive wind farm to generate power. It's success remains to be seen.
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Posted: 29 September 2006 at 6:59am

Response by gleearch

Ahvincent,

There will always be detractors who will say wind farms and pv farms are not feasible.

The question to ask is, compared to what?

A diesel burning electric generator? While they build those things in masses, it still takes fuel to fire up and operate. Not to mention the pollution etc.

Yet wind farms and PV use free energy. Since all generators need to be maintained, upkeep costs are somewhat moot. Though with PV, it's really low maintenance.

What most people don't realise is that these wind turbines are getting smaller and more efficient. Some are now being installed on high rise buildings to take advantage of the high wind speeds near the tops of these buildings. In some ways this is better, because you are utilizing urban space instead of green fields.

It's mainly the oil lobby which likes to kcik up a big fuss about the costs of going green. Unfortunately for them, those arguments don't hold much water now. The cost of green is coming down fairly rapidly and most new buildings that use LEED or similar sustainable design strategies are seeing these cost fast closing the gap with conventional construction.
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Posted: 29 September 2006 at 6:24pm

Nik Zafri's Comments

I think it's a fabulous idea to have wind turbines installed on top of buildings esp. here in Malaysia. I've seen it abroad but never seen it in Malaysia so far. The higher the building is the better - where wind is fastest. I ain't sure about the cost say...RM..../kWh. But I do know it's cheaper than nuclear.

I'm not sure about old buildings Gerard, probably they are not designed for stress from wind turbines compared to new buildings packaged together with wind turbines.

However, with oil/coal/gas are depleting, wind turbines can become an economical option.

I've also read somewhere about green building standard - it talks about renewable energy and fuel cell equipment - that will enable us not to be overdependent on fossil fuels and conventional electricity. Examples quoted - solar water heaters, photovoltaic systems and wind turbines.

You can see something even more interesting over here as well. The pic below is the FUTURE!



http://www.esru.strath.ac.uk/EandE/Web_sites/01-02/RE_info/Urban%20wind.htm

Wind power can be used to generate electricity in an urban environment. The easiest way to do this would be if everybody built a 600kW turbine on the top of his or her house.

This is quite clearly not feasible, but urban wind generation is. The University of Strathclyde in Glasgow was involved in a project to redevelop the Lighthouse building in Glasgow. The Energy Systems Research Unit was involved to show how renewable technology can be utilised. One device they decided to use was a Ducted Wind Turbine.

This device sits at the edge of the roof of a building and utilises the updraft of the airflow along a building side. The air flows upwards, hugging the building wall then enters the front of the duct. The arrows above show the flow through the turbine. The spoiler at the top of the turbine also utilises a PV module to increase generation from renewable energy. The spoiler is optimised to create a pressure differential across the duct and the PV is mounted at this angle.

The devices are relatively small with a blade diameter of 600mm so they possess very little visual impact on a building.



These devices are suitable for an urban environment but not households. They are more suited to office buildings and high rise buildings rather than a small household. These devices are unlike most other common wind turbines in the fact that they are uni-directional. As explained in the Beginners Guide most turbines will position themselves perpendicular to the flow of the wind. A HAWT will yaw into position and a VAWT is always in the correct position. These turbines are fixed into position so are dependant upon the wind blowing in the correct direction. Because of the duct the turbine will perform favourably to a wind direction variability of 120o. (60o to each side of perpendicular to turbine.)



The wind direction is Scotland is predominantly south-westerly so the turbines should be positioned on the South and West edges of any structures roof.

Theoretical Power Outputs

Using the devices installed at the Lighthouse an approximation on the power outputs can be made. The theory from the Beginners Guide to Wind applies here.

Air density ( ) = 1.225kg/m3
Diameter (D) = 0.6m
Wind Speed (V) = 10m/s
Cp = 0.35

Swept Area of Rotor = R2 =0.2827m2



P = 173.18W (This is the theoretical power available)



P = 60.61W (This is a realistic value of power available)

The value above shows the power available theoretically for a single ducted turbine, but in real terms they would be installed in banks along the edge of a building roof.

One single ducted wind turbine would produce 530kWh electricity per year

An average installation would probably consist of 10-ducted turbines; this would yield an annual energy production of 5308.56kWh. The installation of a PV on the spoiler would again increase the power output and if the same module from the Urban PV section is used the expected power for a bank of 10 ducted turbines would increase by 722.93kWh to 6031.49kWh per annum, assuming that each ducted turbine has one PV module installed on its spoiler, which covers an area of 0.61596m2.

Actual Power Outputs

The previous calculation assumes the basis that the wind speed would be constant at 10m/s for the duration of the year and that the wind would be blowing in the correct direction of the turbine. The value of power produced from these machines will be less than stated above because of these stated assumptions.

An estimation of the expected wind speeds in Glasgow could be made using data collected in Bishopton (10 miles south-west of Glasgow) (NGR = 2418E 6711N - Altitude = 59 metres - Latitude = 55:91 N Longitude = 04:53 W) every hour during 2001-



The chart shows the availability of the wind at certain angles including the 60o availability. It clearly shows southwest to be the predominant wind direction. The chart shows that in the southwest direction that the wind is only available 11% of the year at 10m/s. Obviously the wind will blow at speeds less than 10m/s but as explained in the beginners section this would greatly reduce the power output. Again the wind will blow at speeds greater than 10m/s and greatly increase the power output but this would be a rare occurrence throughout the year.

The theoretical power outputs shown above are probably the upper limit of the power expected from these ducted machines and a capacity factor of about 25% is more realistic, knowing that for HAWT in Scotland the capacity factor is approximately 35%, since these ducted turbines are uni-directional.

Therefore a realistic power output from a single ducted turbine would be

(530.856 x 0.25)+ 72.293 (from PV) = 205kWh/year

Individual Possibilities

We have discussed how it would not feasible to expect everyone to have a wind turbine on their roof but there is a lot of unused roof space in city centres on large office buildings and also factories roofs could provide an ideal place for wind turbines to be deployed. As we are unsure of the roof area available in Scotland, this example will demonstrate the effects of a wind turbine for every person in Scotland (5,115,000 people)

One wind turbine (530.856 x 0.25)+ 72.293 (from PV) = 205kWh/year

This would result in an electricity production of;

i) = 205(kW) x 5,115,000= 1,048,575,000kWh

1,049GWh, which is 3.3% of Scotland's yearly electricity consumption
(Scottish Total = 32037GWh)

National Benefits

The introduction of ducted wind turbines could result in an annual reduction of carbon dioxide emissions in Scotland, every kWh of electricity produced from fossil fuels results in 0.97 kg of CO2

i) 0.97kg x 1,048,575,000kWh /year = 1,017,117,750 kg/CO2



1.4 % of Total Scottish CO2 Emissions - (1.4 % of 72,300,000,000 kg)

The future

No estimation on the cost of installation can be made, as these devices are very much in the research and development stage at this moment. The research into this field is growing as more people become interested in urban wind generation. Below are some images of ideas to utilise urban wind generation. A website exists that is only interested in the development of wind turbines for the urban environment. (www.urbanturbines.com).

Such a technology could be deployed relatively cheaply in the future however more research has to be carried out to examine the energy production potential and where electricity produced could be used successfully. Many designers are considering the integration of wind turbines within buildings again it is not yet known how feasible this will be.
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Posted: 30 September 2006 at 12:59am

Response by gleearch

Nik,

Large system obviously would have a difficult time being retrofitted to old buildings. That's where PV panles and smaller wind systems could be used.

That's another issue. The reuse of older buildings.
More along the lines of saving and recycling historical buildings. Too often as we have seen throughout asia, beautiful old buildings are torn down and replaced by what is touted then as the future. Half the time, they are ugly boxes with no real design in them.

However recycling buildings, salvaging them and reusing them is another otpion of being green. Green isn't always about building a brand new building with all the latest technology.

Sometimes it's about reusing an old building. Some of these buildings have huge timbers, etc that you cannot find today. So it's worthwhile to salvage those materials if not reusing the building. If the existing building is reused, obviously there are issue with hazardous materials etc but those can be mitigated and old HVAC systems can be replaced. A good designer can make the most out an existing space or create additions which respect or work well to ennhance the existing building.

There's is so much more to being green. It's a good time to be working on saving the environment.