vi TABLE OF CONTENTS CHAPTER 1 TITLE PAGE TITLE PAGE i DECLARATION ii ACKNOWLEDGEMENTS iii ABSTRACT iv ABSTRAK v TABLE OF CONTENTS vi LIST OF TABLES xi LIST OF FIGURES xii LIST OF ABBREVIATIONS xiv LIST OF APPENDICES xv INTRODUCTION 1.1 Introduction 1 1.2 Problem statement 3 1.3 Aim and Objective 5 1.4 Scope of study 6 1.5 Research Methodology 7 vii 2 TENDER EVALUATION 2.1 Introduction 9 2.2 Types of tender 9 2.2.1 Open tender/Bumiputera open tender 10 2.2.2 Selected tender 10 2.2.3 Direct negotiation tender 11 2.2.4 Pre-qualification 11 2.2.5 „Perbelanjaan Darurat tender‟ 12 2.3 Process of conventional acquisition in PWD 13 2.3.1 14 Process of acquisition of open tender (conventional) 2.3.2 Process of acquisition of Selected Tender 17 (conventional) 2.4 The criteria of tender evaluation 19 2.5 Process and criteria of tender evaluation in PWD 20 2.5.1 First Level of Evaluation 20 2.5.2 Second level of evaluation 22 2.5.3 Third level of evaluation 27 2.6 2.7 3 Cut-off price 27 2.6.1 28 Freak Summary 29 ESTIMATING 3.1 Introduction 30 3.2 Estimate and Purpose of Estimating 30 3.3 Types of Estimate 31 3.3.1 Approximate Estimate 32 viii 3.4 3.5 3.6 3.3.2 Detailed Estimate 33 Contractor‟s Estimate 33 3.4.1 Site visit 34 3.4.2 Construction method 34 3.4.3 Construction schedule 35 3.4.4 Quantity takes off 35 3.4.5 Calculation of cost 36 Preparation of estimate 36 3.5.1 Fluctuation of cost 37 3.5.2 Traffic condition 37 3.5.3 Restrictive work hours or method of work 37 3.5.4 Small quantity of works 38 3.5.5 Separated operation 38 3.5.6 Handwork and inefficient operations 39 3.5.7 Accessibility 39 3.5.8 Geographic location 39 3.5.9 Construction season 40 3.5.10 Material shortage 40 PWD Estimate 40 3.6.1 Department estimate 41 3.6.2 Preparation of department estimate 42 3.6.2.1 Locality 43 3.6.2.2 Urgency of the project 43 3.6.2.3 Complexity of the project 43 3.6.2.4 Site condition 44 3.6.2.5 Material supply 44 3.6.2.6 Increasing of commodity price 44 3.6.2.7 Construction technology 45 ix 3.7 4 4.1 Introduction 46 4.2 Preparation of Questionnaire 47 4.3 Questionnaire survey 48 4.4 Document analysis 49 4.5 Content Analysis 50 4.6 Summary of Data 51 4.6.1 Frequency analysis 52 4.6.2 Average index 52 Summary 53 ANALYSIS AND RESULT 5.1 Introduction 54 5.2 Analysis 55 5.2.1 Questionnaire Analysis 55 5.2.2 Document analysis 91 Summary 98 5.3 6 45 DATA COLLECTION 4.7 5 Summary CONCLUSION AND RECOMMENDATION 6.1 Introduction 99 6.2 Findings 99 6.2.1 Objective 1 - To study the process of evaluating 100 the tender in Public Works Department (PWD). x 6.2.2 Objective 2 - To review the process and 100 procedures in the preparation of department estimate in Public Works Department (PWD). 6.2.3 Objective 3 - To assess the effectiveness 101 of department estimate in the tender evaluation. 6.3 Conclusion 102 6.4 Recommendation 103 REFERENCES 105 APPENDICES Appendix A 107 xi LIST OF TABLES TABLE NO. TITLE PAGE 4.1 Rating scale of Average Index 53 5.1 Time taken to prepare a department estimate 59 5.2 Factors of time required in preparing department estimate 62 5.3 Basis in preparing department estimate 64 5.4 Factors to be considered in the preparation of department 67 estimate 5.5 Factors of accuracy of the department estimate 73 5.6 Revision of department estimate 76 5.7 Basis of cut-off price 78 5.8 Factors considered in the selection of contractor 81 5.9 Perception on department estimate and cut-off level 87 5.10 Department estimate and cut-off price 92 xii LIST OF FIGURES FIGURE NO. TITLE PAGE 1.1 Research Methodology Flow chart 8 2.1 Process of conventional acquisition in PWD 14 2.2 Process of acquisition of open tender (conventional) 16 2.3 Process of acquisition of Selected Tender (conventional) 18 4.1 Five measures of scale based on Likert Scale 48 5.1 Working experience of respondent 55 5.2 Experience in preparing department estimate 56 5.3 Number of Department Estimate Prepared by Internal 57 Department 5.4 Number of Department Estimate Prepared by External 58 Consultant 5.5 Time taken to prepare a department estimate 59 5.6 Factors of time required in preparing department estimate 62 5.7 Basis in preparing department estimate 65 5.8 Factors to be considered in the preparation of department 68 estimate 5.9 Factors of accuracy of the department estimate 73 5.10 Number of Revision of department estimate 76 5.11 Basis of cut-off price 78 5.12 Factors considered in the selection of contractor 82 5.13 Perception on department estimate and cut-off level 88 xiii 5.14 Cut-off Price and Department Estimate 93 5.15 The Percentage Difference Between Cut-off And Department 94 Estimate 5.16 Position of Cut-off And Department Estimate 95 5.17 Range of Percentage of Department Estimate 97 xiv LIST OF ABBREVIATIONS ACDA - As Completed Detailed Abstract AKM - Anggaran Kakitangan Minimum ATDA - As Tendered Detail Abstract BPU - Bahagian Pembangunan Usahawan BQ - Bill of Quantity CV - Coefficient of Variation FRH - Faktor Rendahan Harga JKR - Jabatan Kerja Raya KB - Keupayaan Biayawan KK - Kemudahan Kredit KWSP - Kumpulan Wang Simpanan Pekerja MP - Modal Pusingan NTBK - Nilai Tahunan Baki Kerja NW - Nett Worth PDA - Preliminary Detail Estimate PKK - Pusat Khidmat Kontraktor PWD - Public Works Department QS - Quantity Surveyor WDTS - Wang Dalam Tangan Semasa xv LIST OF APPENDICES APPENDIX A TITLE Sample of Questionnaire PAGE 107