PSZ 19:16 (Pind.1/97)
UNIVERSITI TEKNOLOGI MALAYSIA
BORANG PENGESAHAN STATUS TESIS♦
JUDUL
: THE PERFORMANCE OF FELDA PLANTATIONS SDN. BHD.
CONTRACTORS
SESI PENGAJIAN : 2006/2007
RAMZI BIN IBRAHIM
Saya
(HURUF BESAR)
mengaku membenarkan tesis (PSM/Sarjana/Doktor Falsafah)* ini disimpan di Perpustakaan
Universiti Teknologi Malaysia dengan syarat-syarat kegunaan seperti berikut:1. Tesis adalah hakmilik Universiti Teknologi Malaysia
2. Perpustakaan Universiti Teknologi Malaysia dibenarkan membuat salinan untuk tujuan
pengajian sahaja.
3. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran antara institusi
pengajian tinggi.
4. **Sila tandakan (√ )
SULIT
(Mengandungi maklumat yang berdarjah keselamatan
atau kepentingan Malaysia seperti yang termaktub di
dalam AKTA RAHSIA RASMI 1972)
TERHAD
(Mengandungi maklumat TERHAD yang telah ditentukan oleh
Organisasi/badan di mana penyelidikan dijalankan)
TIDAK TERHAD
Disahkan oleh:
___________________________
(TANDATANGAN PENULIS)
___________________________
(TANDATANGAN PENYELIA)
Alamat Tetap:
TINGKAT 8, BALAI FELDA,
JALAN GURNEY 1,
54000 KUALA LUMPUR.
Tarikh : 19 hb. Mei 2006
CATATAN
:*
**
♦
ASSOC. PROF. DR. MUHD ZAIMI ABD. MAJID
Nama Penyelia
Tarikh : 19hb. Mei 2006
Potong yang tidak berkenaan
Jika tesis ini SULIT atau TERHAD, sila lampirkan surat daripada pihak
berkuasa/organisasi berkenaan dengan menyatakan sekali sebab dan tempoh
tesis ini perlu dikelaskan sebagai SULIT atau TERHAD
Tesis dimaksudkan sebagai tesis bagi Ijazah Doktor Falsafah dan Sarjana secara
penyelidikan, atau disertasi bagi pengajian secara kerja kursus dan penjelidikan,
atau Laporan Projek Sarjana Muda (PSM)
SUPERVISOR’S DECLARATION
“ I/We* declare that I/we* have read through this project report and to my/our*
opinion this report is adequate in term of scope and quality for the purpose of
awarding the degree of Master of Science (Construction Management) ”
Signature
:
…………………………………………..
Name of Supervisor :
Assoc. Prof. Dr. Muhd Zaimi Abd. Majid
Date
19th May 2006
:
i
THE PERFORMANCE OF
FELDA PLANTATIONS SDN. BHD. CONTRACTORS
RAMZI BIN IBRAHIM
A project report submitted in partial fulfillment of the
requirements for the award of the degree of
Master of Science (Construction Management)
Faculty of Civil Engineering
Universiti Teknologi Malaysia
MAY 2006
ii
STUDENT’S DECLARATION
I declare that this project report entitled
“The Performance of Felda Plantations Sdn. Bhd. Contractors”
is the result of my own research except as cited in the references.
The report has not been accepted for any degree and is not
concurrently submitted in candidature of any other degree.
Signature
:
……………………………..
Name
:
RAMZI BIN IBRAHIM
Date
:
19th May 2006
iii
Specially Dedicated To
My Parents
My Beloved Father and Mother
“ You have done all the best for my life”
My Wife
Puan Zalina Bt. Zakaria
&
Puan Normayati Mohd. Yassin
“ Thank you for your love & supports”
My Childrens
Nur Baiti bt. Ramzi
Muhammad Faris Bin Ramzi
Siti Nur Aisyah bt. Ramzi
“ You’re the heart of my life”
“for my son and daughters – I hope you all will be success and growing up as a good
citizens and may Allah bless your peacefull life”
iv
ACKNOWLEDGEMENT
In preparing this thesis, I was in contact with many people, academicians,
managers, contractors and practitioners. They have contributed towards my
understanding and thoughts. In particular, I wish to express my sincere appreciation
to my supervisors, Associate Professor Dr. Muhd Zaimi bin Abd. Majid, for
encouragement, guidance, critics and friendship. Without his continued support and
interest, this thesis would not have been the same as presented here.
I
also deserve special thanks for Senior Executive Director, Felda
Plantations Sdn. Bhd., En. Rusdi bin Ismail and Executive Director, Hj. Abd. Ghani
Mahmood for their support and suggestion for this study.
My sincere appreciations also extends to all my colleagues and others who
provide assistance at various occasions, especially for Azizee bin. Ismail, Wan
Zahran Wan Zakaria, Puan Rozita Aris and others. Their views and tips are useful
indeed. Unfortunately, it is not possible to list all of them in this limited space. I am
grateful to all my family members especially to my wife who always give me a
warm support. Thank You.
v
ABSTRACT
Performance is the measure of the ability of the contractors to execute work
on time, cost and quality. This study presents the result of the investigation on
performance of the contractor that registered under Felda Plantations Sdn. Bhd
based on workmanship. The objectives of the study are to identify the factors that
influence the contractor’s performance; to establish the critical factors that
influence their performance; and to identify the strategies to improve the situation.
The method of the study involved literature review, data collection and analysis is
using an Average Index method. The result for this study is found that the three
most important factors that influence the contractors performance were the
experience and skilled worker; understand the method of work; and good planning
and scheduling . The three best method to improve the contractor’s performance
were to focus on the client needs; meet the client requirements; and exceed the
client expectation; to improve the method of supervision of labors work and to
improve the planning and scheduling techniques. It is hope that this study will
provide useful information on future work for contractors not only for their future
jobs at Felda Plantations Sdn. Bhd. but to the benefit to the construction industry.
vi
ABSTRAK
Prestasi kerja kontraktor didefinasikan sebagai keupayaan kontraktor
menjalankan kerja dengan mengamalkan pengurusan masa, kos dan kualiti yang
berkesan. Kajian ini memberikan tumpuan terhadap keupayaan perstasi kerja
kontraktor yang berdaftar dengan Felda Plantations Sdn. Bhd berdasarkan kualiti
kerja yang telah ditunjukkan oleh mereka. Tujuan kajian ini adalah untuk
mengenalpasti faktor yang mempengaruhi prestasi kerja kontraktor, mengenalpasti
faktor kritikal yang mempengaruhi keupayaan prestasi kerja mereka serta
mengenalpasti strategi bagi meningkatkan keupayaan prestasi sediada. Kaedah
kajian yang dijalankan merangkumi kajian literatur, pengumpulan data dan
seterusnya menganalisa data yang diperolehi dengan menggunakan kaedah ststistik.
Keputusan kajian mendapati tiga faktor utama yang mempengaruhi mutu kerja atau
prestasi kerja kontraktor adalah dengan menyediakan pekerja yang mahir dan
berpengalaman,
memahami
kaedah carakerja yang akan dijalankan dan
mengamalkan kaedah perancangan dan penjadualan kerja yang baik. Manakala tiga
kaedah utama yang boleh diamalkan bagi meningkatkan prestasi kerja adalah
dengan menumpukan dan fahami kehendak pelanggan, mempertingkatkan kaedah
pengawasan kerja yang dijalankan oleh buruh dan meningkatkan kemahiran dalam
kaedah merancang dan menjadualkan kerja. Adalah diharapkan kajian ini bakal
menyediakan maklumat yang berguna bagi meningkatkan mutu kerja pada masa
akan datang amnya bagi kerja-kerja di
keseluruhan industri pembinaan umumnya.
Felda Plantations Sdn. Bhd. dan bagi
vii
TABLE OF CONTENT
CHAPTER
TITLE
CHAPTER 1
PAGE
TITLE PAGE
i
DECLARATION PAGE
ii
DEDICATION PAGE
iii
ACKNOWLEDGEMENT
iv
ABSTRACT
v
ABSTRAK
vi
TABLE OF CONTENTS
vii
LIST OF TABLES
xi
LIST OF FIGURES
xii
LIST OF ABBREVIATIONS
xiii
LIST OF APPENDICES
xiv
INTRODUCTION
1.1
Introduction
1
1.2
Background of Study
2
1.3
Problem Statement
3
1.4
Aim and Objectives of Study
3
1.5
Scope of Study
4
1.6
Research Methodology
4
1.7
Summary
6
viii
CHAPTER 2
THE FACTORS THAT INFLUENCE
THE CONTRACTORS PERFORMANCE
2.1
Introduction
7
2.2
Definition
8
2.3
The Quality Performance Standard
9
2.4
The Project Management Factors
10
2.5
Construction – Product or Service
11
2.6
Service Encounters – Satisfaction and Quality
13
2.7
Determinants of Service Quality
14
2.8
Factors Involved in Contractor Satisfaction
18
2.9
Understand the Client Needs and Quality Expected 19
2.10
Good Knowledge in Planning & Scheduling
2.11
Good Communication Between Supervisors
and Workers
2.12
2.13
CHAPTER 3
20
22
The Critical Factors Influence The Contractors
Performance
22
Summary
24
THE STRATEGY TO IMPROVE
CONTRACTORS PERFORMANCE
3.1
Introduction
25
3.2
Definition
26
3.3
Strategies To Improve Contractor Performance
26
3.4
Quality
28
3.5
Quality Assurance and Quality Control
30
ix
3.6
Total Quality Management (TQM)
31
3.7
Quality and Contractor Selection
33
3.8
Selecting the Right Contractor
34
3.9
Planning The Project
35
3.10
Enquiries to Subcontractors and Suppliers
39
3.11
Checklist for Subcontract invitation to Tender
40
3.12
Scheduling the Work
43
3.13
Keep a Job File
43
3.14
Provide Training For Workers
44
3.15
Improve the Method of Supervision of Labors
3.16
CHAPTER 4
Work
45
Summary
46
RESEARCH METHODOLOGY
4.1
Introduction
47
4.2
Research Methodology
48
4.3
Literature Review
49
4.4
Data Collection
50
4.5
Analysis of Data
52
4.6
Summary
56
CHAPTER 5
DATA ANALYSIS AND RESULTS
5.1
Introduction
57
5.2
Clients Background
58
5.3
The Respondents Background
61
x
5.4
Result and Analysis
66
5.5
The Result of Questionnaire Survey
71
5.6
Findings and Discussion
74
5.7
Suggestions For Better Performance
79
5.8
Summary
80
CHAPTER 6
CONCLUSIONS AND RECOMMENDATION
6.1
Introduction
81
6.2
Conclusions
82
6.3
Recommendations
83
6.4
Suggestion for Further Study
86
REFERENCES
87
APPENDICES
APPENDIX A
Felda Plantations Office Location
90
APPENDIX B
Sample of Questionnaire Survey
91
APPENDIX C Sample of Contractor Selection Checklist
97
APPENDIX D Sample of Contractor’s Evaluation Form
100
xi
LIST OF TABLES
TABLE NO.
4.1
TITLE
The Factors That Influence The Contractor’s
Performance
4.2
PAGE
53
The Strategies To Improve The Contractor’s
Performance
54
5.1
Felda Plantations Sdn. Bhd. Staff Strength
59
5.2
Felda Plantations Authorized & Paid-up Capital
60
5.3
Felda Plantations Sdn. Bhd. Shareholders
60
5.4
Respondent Registration With Felda Plantations Sdn. Bhd. 61
5.5
Respondent Registration Under Relevant Bodies
62
5.6
Respondent Registration With PKK
63
5.7
Respondent Registration With CIDB
64
5.8
Returned Questionnaire
66
5.9
The Full Time Staff in the Contractor’s Firm
67
5.10
The Contractors Experience in Construction Industry
68
5.11
The Company Manager’s Qualifications
69
5.12
The Respondent’s Company Paid-Up Capital
70
5.13
The Factors That Influence The Contractor’s Performance 71
5.14
The Critical Factors That Influence The Contractor’s
Performance
72
5.15
The Strategies to improve contractor’s Performance 73
5.16
The Rank Factor’s influence contractor’s Performance
5.17
The Rank Strategies to improve contractor’s Performance 77
75
xii
LIST OF FIGURES
FIGURE NO.
TITLE
1.1
Methodology Flow Chart
4.1
Five Ordinal Measures of Contributing Factors of
PAGE
5
Likert Scale
52
5.1
Felda Plantations Staff Strength
59
5.2
Registeration of Contractors Under Felda Plantations Sdn. Bhd.
61
5.3
Registration of Respondent Under Relevant Bodies
62
5.4
Registeration of Contractors Under PKK
63
5.5
Registeration of Contractors Under CIDB
65
5.6
Returned Questionnaire
66
5.7
Full Time Staff Work Under Contractors
67
5.8
The Contractors Experience in Construction Industry
68
5.9
The Company Managers Qualification
69
5.10
The Company Paip-Up Capital
70
xiii
LIST OF ABBREVIATIONS
CCM
-
Company Commission of Malaysia
CIDB
-
Construction Industry Development Board
CIOB
-
Chartered Institute of Buildings
FPSB
-
Felda Plantations Sdn. Bhd.
MOF
-
Ministry of Finance
PKK
-
Pusar Khidmat Kontraktor
xiv
LIST OF APPENDICES
APPENDIX
TITLE
PAGE
A
Felda Plantations Sdn. Bhd. Location Plan
90
B
Sample of Questionnaire
91
C
Sample of Contractor Selection Checklist
97
D
Sample of Contractor’s Evaluation Report
100
1
CHAPTER 1
INTRODUCTION
1.1
Introduction
The contractor performance issue is one of the milestone of identifying a
contractor who can undertake the client’s project, and take it to the satisfactory
conclusion, that is to meet the client’s time, cost and quality expectations. Most
clients want superior quality performance, but at the same time they want the
minimum price. The combination of quality performance and the service paid for
that quality is the value received by the client. Satisfaction can be viewed in terms
of process of “expectancy disconfirmation,” in which satisfaction is based largely
on meeting or exceeding client’s expectations. The construction industry in
Malaysia is mostly characterized by a large number of small contractors and a
relatively small number of large contractors that carry out most of the industry’s
workload. Sometimes the contractors incompetency in making the right decision to
maintain the good quality performance of work to satisfy the clients needs and
expectations.
2
1.2
Background of the Study
The construction sector is vital for the development of any nation. It is
without doubt that the task of physical nation buildings rest with the construction
sector. In many ways, the pace of the economic growth of a nation can be measured
by the degree of activity in the development for physical infrastructures such as
roads, buildings and bridges. However, the need has never been felt more acutely
now the quality is no longer an icing on the cake but an essential ingredient in the
cake itself.
The quality performance is vital not only for the purpose of marketing a
company’s products and services, but it is a life-line in the survival of the company
itself. Through the implementation of quality systems and quality management
practices, the safety of products and even of the workers in the factory and the
worksite can be enhanced. The concern of quality performance also prevents
rework and wastage thus reducing unproductive repetition of jobs and ultimately
increases efficiency and productivity.
The often forgotten objective in the project management is the performance
target. This target is not just a technical specification. It is a translation of the
customer’s needs into performance criteria, and that the translation may be a
technical specification. The concurrent project management requires that the
customers be part of the entire process from concept through completion, with nextin-line being the operational definition of customer. Failure to meet the needs of the
next-in-line is a violation of the practice of quality at the project level, (Lewis,
2005).
Therefore, any attempt to formulate a strategy for improving the
performance of the construction practice would require a reliable understanding of
the past, present and probable situation of the industry.
3
1.3
Problem Statement
Sometimes in the construction project, the contractor still cannot perform to
the expectation (especially on the workmanship or the quality of work) although
they had done many similar project before, some of them still cannot perform to the
expected quality of work and deliver the final product to the client with satisfied
workmanship. It is very sad to say that they only get the job and then manage by the
third party or depends on the workers or sub-contractors. If they are lucky to get the
good workers or sub-contractors they might finished the project on time with
average standard of quality, if not, the project ending with the poor quality
workmanship with lack of specification, delay and extension of time, carried to the
termination of contract or the worst case ending with disputes. Some of them do not
have any basic background knowledge in technical field especially in construction.
1.4
Aim and Objectives of Study
The aim of this study is to investigate the quality performance (especially on
workmanship) of the contractors which registered under Felda Plantations Sdn.
Bhd. and how to improve their performance. To achieve this aim, three objectives
are being delineated. Those are as follows:
1) To identify the factors that influence the performance of contractors;
2) To establish the critical factors that influence the performance of
contractors; and
3) To identify the strategy to improve the contractor performance
especially on quality of work or workmanship.
4
1.5
The Scope of Study
The scope of this study is narrowed down to simplify the process of
information gathering, so it can be analyzed within an appropriate time limit. The
aspects being considered are:
1) Focused on the contractors which registered under Felda Plantations
Sdn. Bhd. listed from the year 2004 to 30th of June 2005;
2) The scope of work is on building construction projects such as public
utilities, staff quarters and workers quarters;
3) The study focus on the quality performance; and
4) The area of this study is on engineering works in all Felda Plantations
estate in Peninsular Malaysia.
1.6
Research Methodology
The main focus of the study is to achieve earlier stated objectives through the
collection of data using survey questionnaires and interviews, (Lee and Tan, 2003).
The methodology is set to gather the data to achieving the outlined objectives. The
first step of study is to rationalize the issue to set up the topic of study. Then the
statement of problems, aims and objectives being developed. This study employed
several methods of data collection for the purpose of objective’s achievement. For
the knowledge acquisition phase, the literature in connection with the study to be
carried out is reviewed through journals, books, conference papers, magazines, and
websites. From that information, a set of questionnaire form has been developed.
The respondents are the contractors which registered under Felda Plantations Sdn.
Bhd. in all class and the scheme managers. The data then analyzed using statistical
5
method. The final phase of the study is to define the conclusions and
recommendation with reference to the objectives, subsequent to the analysis from
the interview. The Methodology Flow Chart is as shown in Figure 1.1 below.
Selected Topic of Study
Er
Statement of Problems
Define Objective
Literature Review
The Factor
Critical Factor
Strategy to Improve
Data Collection
Interview
Questionnaire
Data Analysis & Result
Conclusions & Recommendation
Figure 1.1 : Methodology Flow Chart
6
1.7
Summary
This study provides some valuable insights into the relative importance of
the performance especially on the quality of works that the contractor have to
maintain when executing their projects.
The study is consist of six chapter. The first chapter is the introduction of
the research, which include the statement of problems, the aim and objectives of the
study, the scope and justification of the study, and research methodology. The
Second Chapter is on literature review, focus on the identification the factors that
influence the quality of performance of the contractors; Third Chapter continue
with the literature review on method to improve the contractors performance. The
fourth chapter is the Research Chapter that discuss the method of research. The data
analysis and result is discussed in the Fifth Chapter, its consist of the background
of the company, the project, the background of the contractors, the data analysis,
result and findings. The Sixth Chapter is highlight the conclusions and the
recommendation.
7
CHAPTER 2
FACTORS THAT INFLUENCE THE CONTRACTORS PERFORMANCE
2.1
Introduction
This chapter identifies the factors that influence the contractors
performance, establish the definition of the performance, workmanship and quality
from the review. The factors that influence the contractors performance to be
discussed
related to the project performance factors, customer’s satisfaction,
determinants of service quality, understand the customer’s needs and expectation,
the needs of planning and scheduling and the needs of good communication.
This chapter also highlights the critical factors that influence the
contractor’s performance.
8
2.2
Definition
a.
Performance
Performance is the measure of the ability of the contractors to execute work
on time, cost and quality.
Performance is the way a contractor responds to the workload. Performance
tools are able to monitor system variables and provide instantaneous or historical
feedback on the way the system has dealt with the workload. There are several
aspects to performance, and the objective to getting most from the system is to keep
each of the components in balance, not allowing any to become a bottleneck,
(Wong,2002).
c.
Workmanship
The workmanship is define the performance of the contractor to conduct the
work with good quality which meet the satisfaction to the client or customer,
(Wong,2002).
d.
Quality
Quality is defined as meeting or exceeding the needs of the customer.
Quality in construction is achieve by meeting the customer’s requirements in the
best possible way, ( Schexnayder and Mayo, 2004).
e.
Quality Assurance
Quality Assurance ( QA ) refers to the management systems employed by
9
construction companies to produce high-quality work consistently, (Schexnayder
and Mayo, 2004).
f.
Quality Control
Quality control is about the inspection of work to ensure it meets the quality
standards specified in the contract, (Schexnayder and Mayo, 2004)
2.3
The Quality Performance Standard
Arizona
Registrar
of
Contractors
in
their
website
on
http://www.rc.state.az.us/Standard/standards.html stated the quality performance
standard by the rule 4-9-108 as;
a) All work shall be performed in a professional and workmanlike manner;
b) All work shall be performed in accordance with any applicable building
codes and professional industry standards; and
c) All work performed in any country, city or town which has not adopted
building codes or where any adopted building codes do not contain specific
provisions applicable so that aspect of construction, work shall be performed
in accordance with professional industry standards.
2.3.1
The Performance Objective
The often-forgotten objective in project management is the performance
target. This target is not just a technical specification. It is a translation of the
customer’s needs into the performance criteria, and that translation may be a
10
technical translation. Concurrent project management requires that the customer be
part of the entire process from concept through completion, with next-in-line being
the operational definition of the customer. Failure to meet the needs of the next-inline is a violation of the practice of quality at the project level. The contemporary
approach employed is Quality Function Deployment (QFD), (Lewis, 2005).
2.4
The Project Performance Factors
Minchin and Smith (2005), Identified five major project management factor
and one major materials and workmanship factor for project quality that address the
primary interest of the owners and contractor. In all cases, the participants in the
focus groups and surveys considered contractor quality performance to include the
contractor’s management quality as important to project quality, in addition to
workmanship and material quality.
a.
Project Performance: Project Management Factors
The management factors came under the following headings:
ƒ
Project Personnel
ƒ
Project Management/Control
ƒ
Schedule Adherence
ƒ
Contractor’s Organization
ƒ
Plant and Equipment
11
b.
Project Performance: Materials and Workmanship Factor
The factor dealing with material quality and workmanship is taken from the
result of test. Workmanship is measured on several work items such as smoothness,
material density etc. To ensure as accurate a measure as possible, only the initial
test result were include in the project summation. Specifications and acceptance
procedures generally allow the contractor to rework the failed area until it passes or,
under some specifications, a payment modification may be applied. The objective
was to measure the effectiveness of the contractor to do the work right the first
time.
c.
Overall Project Performance Factor
In the original list of performance factors, one that relates to the quality of
materials and workmanship is “ Final Product.”
2.5
Construction – Product or Service
Maloney (2002), when most people think of construction, they think of what
is actually built or the physical structure or product. The physical product is what is
detailed in the plans and specifications provided by the designer. In construction,
this would consist of series of systems that are constructed; for example,
foundation, structure, electrical, mechanical, roofing and so on. It is what is in place
after the work has been completed and the contractor and his or her forces have left
the site.
12
There is no natural demand for the construction product; the demand for the
construction product is derived from the demand for the intended use of the facility.
The client’s primary concerns are when the facility will be available and what it
will cost. These two factors significantly influence the economic viability of the
project. Completion of the project in accordance with the plans and specifications
within budget and on time will satisfy the client’s need and allow the contractor to
make profit. However, it will not guarantee the contractor future work with that
client.
In providing the physical product, the contractor provides a service that
consist of three elements; service product, service environment, and service
delivery. The service product is the service as it is design to be delivered, which
often includes specific features. It is also involves service specifications and targets.
Features can be such things as schedule, progress report, quality assurance,
warranties and so on. The service product includes what the client receives in
addition to the physical product. The key managerial decision in designing the
service product is the identification of the relevant features of specification to offer.
The service environment includes numerous dimensions that can be
classified into two main themes, that of the internal environment (the service
provider) and that of the external environment. The internal environment is the
organizational culture and overriding philosophy brought to service provision by
management. Evidence of the internal environment is provided by the attitudes and
actions of the employees of the contractor, both craft and management. The
importance attached to the customer and his or her place in the values of the
contractor are major determinants of the internal service environment.
13
The external environment is characterized by the availability of sufficient
numbers of the appropriate tools and equipment in good operating conditions, a
clean, well-organized on-site facility, and material that is available as needed.
The service delivery can be likened to the performance of roles in
theoretical scripts. Consumers are thought to posses expected sequences of events
and provider role expectations within most service encounters. For example, the
customer visits the job site and during the visit ask a question of a craftsman on the
job. The customer has the expectation that the craftsman, in his or her role, will
respond in courteous, informative manner. If the craftsman fail to do so, the
customer’s role expectation are violated ant the customer will not satisfied.
2.6
Service Encounters – Satisfaction and Quality
Maloney (2002), stated that the contractor and his or her personnel interact
with the customer through service encounters, which may be defined as that period
of time during the customer and service firm interact in person, over telephone, or
through other media. It has been termed by marketing professionals as the moment
of truth.
Each service encounter provides an opportunity for the contractor to
reinforce its commitment to customer satisfaction or quality. The customer’s
evaluation of each encounter will clearly not be perfectly related to the customer’s
overall satisfaction with the contractor or perceptions of the contractor’s quality.
However, over time it is likely that multiple positive (negative) encounters will lead
to an overall high (low) level of satisfaction. Thus, customer satisfaction must be
considered at both the micro and macro levels.
14
Service encounter satisfaction is the customer’s satisfaction or dissatisfaction with a
specific service encounter. Overall service satisfaction is the customer’s overall
satisfaction or dissatisfaction with the organization based on all encounters and
experiences with that particular organization. It reflects satisfaction or
dissatisfaction with a number of types of encounters (encounters with personnel,
quotations, negotiations, delivery, and post-contract award services) within the
same firm. Customers will distinguish their satisfaction with a particular encounter
form their overall satisfaction with the firm’s services.
In addition to satisfaction, an issue of major concern to the customer is
service quality, which may be defined as the customer’s overall impression of the
relative inferiority or superiority of the organization and its services. Most
customers want superior service quality and the price paid for that quality is the
value received by the customer.
Satisfaction can be viewed in terms of a process of “expectancy
disconfirmation,” in which satisfaction is based largely on meeting or exceeding
expectations.
2.7
Determinants of Service Quality
Access; involves approachability and ease of contact. This factor deals with
the customer perceptions of the willingness of the contractor’s personnel to meet
with the customer and how easy it is to actually contact the appropriate contractor
personnel. It deals with such things as the contractor’s personnel’s availability to
meet with the customer and how quickly and easily the customer can contact the
appropriate contractor personnel. When the customer has a problem or question, he
15
or she wants it resolved quickly. If it takes the customer several days to reach the
appropriate person in the contractor’s organization, the customer will not be
pleased. This is not to say that the customer must be able to reach the person
instantaneously, but simply within reasonable time.
Access can be viewed as bidirectional. It is good business sense for the
contractor and his or her personnel to maintain contact with the customer. Phone
calla and visits to the customer provide ready access. Contact between the customer
and contractor should not be initiated solely by the customer.
Communication means keeping the customers informed in language they
can understand and listening to them. It involves explaining the service itself;
explaining how much it cost; explaining the trade-offs between service and cost;
and assuring the customer that a problem will be handled.
One of major concerns of customers is the uncertainty- for example, with
the completion date – associated with any construction projects. In general,
construction customers are not experts in construction. At the same time, the
customer is making a significant financial investment in the project that is being
constructed. The contractor, through effective communication, can reduce the
customer’s uncertainty and thereby increase the customer’s satisfaction with the
contractor and the contractor’s performance.
Competence means possession of the required skills and knowledge to
perform the service and involves the knowledge and skills of the craft workers
performing the construction work, the personnel supervising those craft workers,
and the personnel that come into contact with the customer.
16
The customer for any construction project wants the project built in a costeffective and safe manner, on schedule, and with appropriate quality. This requires
the people performing the work to posses sufficient skills to meet these objectives.
The acquisition of the necessary skills requires training and the opportunity to
develop those skills. Without these skills, cost escalates, accident occur, schedules
slide, and poor quality work is performed. The competence of the workforce can be
demonstrated by the training programs completed.
In addition to the technical competence of the craft workers, contractor
supervisory personnel must have the knowledge, skills, and abilities to manage the
construction work and supervise craft personnel effectively. Absent those skills,
craft-worker productivity deteriorates.
Construction work requires the effective interaction of the personnel
performing the work. The effectiveness of this interaction is a function of the
interpersonal skills of the individuals involved in that interaction. Thus,
interpersonal skills are another in the set of competencies of construction workers.
The last set of skills necessary to influence the customer’s perception of
services quality is those skills utilized in the interaction between the contractor’s
personnel and the customer. The contact personnel must be trained to interact with
the customer, anticipate the customer’s needs, answer the customer’s questions, and
so on. How the contractor’s personnel interact with the customer significantly
influences the customer’s perceptions of the quality of the services.
Courtesy involves politeness, respect, consideration, and friendliness of
contact personnel as well as other factors such as consideration for the customer
property. The key to courtesy is god interpersonal skills and respect for the
17
customer. Courtesy extends beyond person-to-person interaction. Consideration and
respect for the customer’s property are just as important.
Credibility involves trustworthiness, believability, and honesty; it involves
having the customer’s best interest at heart. Contributing to credibility are company
name, company reputation, personal characteristics of the contact personnel and the
degree of hard sell involved in interaction with the customer. Credibility involves
doing what you say you are going to do. In today’s business world, the customer
who hears “sorry about that” is not a satisfied customer.
A contractor who is awarded a job base on a bid and then attempts to
increase the value of the contract and his or her profits through continuous claims
for extras will suffer a loss of credibility.
Reliability involves consistency of performance and dependability. To be
reliable, the contractor and his or her personnel perform the service right the first
time, honor their promises, are accurate in billing, keeps record correctly, and
perform the service at the designated time.
Responsiveness is the concerns of the willingness or readiness of employees
to provide service and involves timeless of service, calling back the customer
quickly, and giving prompt service. Customers have needs. The contractor’s ability
to respond to those needs in a timely manner and with an attitude of wanting to be
of service has a significant
influence on the customer’s perceptions of the
contractor and the quality of the contractor’s service.
Service is freedom from danger, risk, or doubt; it involves physical safety,
financial security, and confidentiality. The importance of security to a customer
varies by project. Depending upon the size of a project relative to the size of the
18
customer, the failure to complete the project on time, within budget, and with
appropriate quality may negatively impact the financial security of the customer.
Tangibles include the physical facilities, appearance of the personnel, tools
or equipment used to provide the service, and physical representations of he service;
for example, the progress payment application. The customer’s perception of the
contractor’s tools, equipment, and site organization is a significant influence on the
customer’s perception of the quality of the services provide by the contractor.
Understanding and knowing the customer involves making the effort to
understand the customer’s needs by learning the customer’s specific requirements,
providing individualized attention, and recognizing the regular customer. To
effectively satisfy a customer, all of the contractor’s personnel must understand the
customer’s needs and requirements. In addition, the personnel must perform in a
way that addresses those requirements. A customer who perceives that the
contractor’s personnel understand his or her requirements and are working to satisfy
those requirements will perceive the contractor’s efforts positively.
2.8
Factors Involved in Contractor Satisfaction
Maloney (2002), stated that the factors that involve in contractor selection
and satisfaction that can influence the performance of the contractors:
a)
Contractor/Customer relationship: Customers view a contractor in
terms
of
trust,
respect,
integrity,
willingness
responsiveness, and communication ability;
to
partner,
19
b)
Project Management: Ability to plan, schedule, manage and execute
all aspect of project from the conceptual design stage to project
completion;
c)
Safety: The contractor understands and follows all safety regulations,
maintain a safe work environment, and employs workers who
practice safe work habits;
d)
Prepared/Skilled workforce: The contractor staffs a project with
employees who are knowledgeable, skilled in construction
techniques, take pride in quality work and understand the method of
work;
e)
Cost: Professionally manages all project cost activities, including
initial project estimates, value engineering services, lower cost
alternatives, change-order pricing, and project billing activities; and
f)
General Satisfaction: satisfied the customer with the good
performance.
2.9
Understand the client needs and quality expectation
The first order of business in today’s world must be meeting the needs of
customers (the “next-in-line”). If this is to be done in project/construction
management, the next-in-line must be identified and his or her needs defined. The
first is, first of all, identifying just who is the customer in the first place. Then there
is defining needs. Often, customers have an “itch” that they want “scratched.” That
20
is the best definition they can offer. They want the product to be “easy to use.”
They want “convenience.” These basic “itches” must be translated into product or
service features. We can say that solutions are developed for customer needs.
We all know that the primary motive of a business is to make a profit, but as
someone has said, the customer is the only person who gives you the money that
becomes your profits. Your stockholders don’t do it. Only the customer creates
profits. So the first order of business is to find someone who is willing to be our
customer. Without customers, we are dead.
One important point is that we want to do more than necessary to satisfy
customer needs, since that is wasting money. On the other hand, we do not want to
do less than necessary, or we may lose the customer, (Lewis, 2005).
The contemporary approach to translating customer needs into product
features is Quality Function Deployment (QFD). Since QFD is outside this
research, the reader is advice to referred to Dimancescu (1992) or Juran (1989)-see
references, who explain how the process works.
2.10
Good Knowledge in Planning & Scheduling
Planning needs to be organized, logical, efficient and thorough, to think
about all aspects of the project in advance, anticipate foreseeable problems. Project
structuring must be divided into logical, useful and controllable parts. Tan (2004),
stated the role in planning were:
a)
Develop planning focused on the work to be performed;
21
b)
Establish project objectives and performance requirements early so
everyone involved knows what is required;
c)
Involve all discipline managers and key staff members in the process
of planning;
d)
Establish clear and well-defined milestones in the project so all
concerned will know what is to be accomplished, and when it is to
be completed;
e)
Build contingencies into the plan to provide a reserve in the schedule
for unforeseen future problems;
f)
Avoid reprogramming or re-planning the project unless necessary;
g)
Prepare formal agreements with appropriate parties whenever there
is a change in the projects and establish methods to control changes;
h)
Communicate the project plan to clearly define individual
responsibilities, schedules and budgets; and
i)
Remember that the best – prepared plans are worthless unless they
are implemented.
Where, the desired results in project planning were:
a)
Finish project on time;
b)
Continuous (uninterrupted) flow of work (no delays);
c)
Reduce amount of rework (least amount of changes);
d)
Minimize confusion and misunderstandings;
e)
Increase knowledge of status of project by everyone;
f)
Meaningful and timely reports to management;
g)
You run the project instead of the project running you;
h)
Knowledge of scheduled times of key parts of the project;
i)
Knowledge of distribution of costs of the project;
j)
Accountability of people, defined responsibility/authority;
k)
Clear understanding of who does what, when and how much; and
l)
Integration of all work to ensure a quality project for the owner.
22
2.11
Good communication between supervisors and workers
Communication is the sharing of information between two or more
individuals or groups to reach common understanding, (Jones and George, 2003).
A significant aspect of a project manager’s job is to communicate to his or
her people the objectives or purpose of the project. In many cases, the
communication breakdown happens because the managers often communicate in
one direction only. They do not take time to be sure that the person with whom they
are communicating actually understood the massage. Rather, they assume that
everything was clear.
In fact, there seems to be a belief among managers that if they are fairly
good at expressing themselves, then this is all that is needed to make them good
communicators
2.12 The critical Factors influence the contractors performance
The listed below are some of the critical factors that influence the
workmanship of the contractors:
a)
Good planning and scheduling techniques of work and resources;
b)
Qualified and very well experienced workers;
c)
Well understand the method of work;
d)
Good communication between project supervisor and site workers;
e)
Used the quality materials as stated in the specifications;
f)
Well understand of specifications and working drawings;
23
g)
The competence full time site supervisors in charge the project;
h)
Understand the client needs and the quality expected by the client;
i)
Financial strong and good financial cash flow; and
j)
Own the machine and logistic.
Tan, (2004), listed the critical success factors in development and
construction and summarized into the following:
a)
Definition of client’s corporate and project goals;
b)
Financial and functional definitions ( end-user need );
c)
Setting high standards and parameters for design, supervision and
construction;
d)
Accurate fixation of a preliminary budget;
e)
Proper budgeting and cost control; and
f)
Strategic, effective and efficient project management, planning &
control.
24
2.13
Summary
There are many factors that influence the performance of the most
construction projects, from the literature research that have been made by the author
some factors were identified such as owns plant, machinery and equipments;
provide competent site supervisors full time at site; maintain financial competence
and good cash flow; use the quality materials; understand the drawing and
specifications; understand the client needs and quality expected; used or hire
experienced and skilled workers; understand the method of work; practice the good
planning and scheduling technique; and practice a good communication between
supervisors and workers.
The critical factors that influence the contractor’s workmanship sometimes
related to the mentality of the contractor himself. Some of them have the low
morale and not able to learn to improve their knowledge.
25
CHAPTER 3
THE STRATEGIES TO IMPROVE CONTRACTORS’ PERFORMANCE
3.1
Introduction
This chapter highlight the strategies to improve the contractor performance
in not only depends on the contractors itself but also depends on how the client
select the right and competence contractor to do the job. On the contractor’s side,
they should able to provide a competence staff, the right planning of the works,
healthy financial abilities and the aim to improve their knowledge. This chapter
discusses the definition of planning, performance improvement, the quality needed,
quality assurance, total quality management, the characteristic of goon planning,
training and how to select the good contractors.
26
3.2
Planning Definition
Planning can be thought of as determining “what” is going to be done,
“how,” “where,” by “whom,” and “when.” In construction projects the “plans”
(blueprint) and specifications for the project generally define both the end product
and, often, the general time frame in which to complete the project. However, they
normally do not specifically identify the individual steps, their order, and the timing
followed to achieve the end product. Thus, when we discuss planning in the
construction process, we must address the “how” and, therefore, the “what,”
“when,” “where,” and “who,” ( Hinze, 1998 ).
3.3
Strategies to Improve Contractors Performance
a.
Performance Improvement
The only way to know if the goals are being met is to have accurate, clear,
and practical information about performance. Once that information is available,
decisions can be made and actions can be taken.
The performance-driven system of improvement incorporates the following
activities:
ƒ
Defect-based inspection
ƒ
Data analysis
ƒ
Information sharing and reporting
ƒ
Operations and process improvement
27
Through these activities, the contractor have to seeks to identify and
enhance the performance to meet and exceed client expectations. The result of this
effort is greater value through ever increasing of quality of workmanship and
customer satisfaction at a fixed cost.
b.
Defect Base Item Inspection
The contractor should invest extensive time to train and test supervision
staff and monitored on a regular basis to ensure accuracy as well as increase their
knowledge base, enabling them to bring more value to clients.
c.
Data Analysis
Analyzing the data from the inspection is the next step of the performance
improvement process. The contractor’s supervision staff can use the computers to
gather item information, which is sent via modem to headquarters. Using the
specific software, we can turn the data into useful performance information.
The goal of this analysis is to answer two key questions:
d.
ƒ
Is our client getting the performance they are paying for?; and
ƒ
How can the contractor improve their operations and processes?
Information Sharing and Reporting
Once the inspection data has been analyzed, it is presented to the client in
the form of a performance report. In narratives and graphs and customer satisfaction
results are shown.
28
Beyond the general facts and conclusions the report provides, detailed
backup reports allow both the client and contractor to conduct more detailed
investigation into areas of concern or interest.
3.4
Quality
Schexnayder and Mayo (2004), defined the quality in construction as
“meeting or exceeding the needs of the customer”. Everyone should recognized that
intrinsic quality does not exist in construction, in the sense that some products are
simply better than others.
The shop drawing process is used to control the “quality” of the materials
used by ensuring each installed product meets the requirements of the
specifications. In spite of that, some contractors have a reputation for being highquality contractors, while others are still working on their quality reputation.
Quality in construction includes ensuring the facility will perform its intended
purposes.
There has been a growing worldwide emphasis on quality in all industries,
and in construction in particular. International quality standards are increasingly
defined by the ISO 9000 standards. ISO is important because it offers an
internationally recognized systemic approach. The principles advocated by ISO
9000 provide the framework for managing a quality system. Those principles are:
a)
Focus on your customers, organizations rely on customers.
Therefore,
ƒ
Organization must understand customer needs.
ƒ
Organization must meet customer requirements.
29
ƒ
b)
Organization must exceed customer expectations.
Provide Leadership, Organization rely on leaders, Therefore,
ƒ
Leaders must establish a unity of purpose and set the
direction the organization should take.
ƒ
Leaders must create an environment that encourages people
to achieve the organization’s objectives.
c)
Involve your people, Organization rely on people. Therefore,
ƒ
Organization must encourage the involvement of people at all
levels.
ƒ
Organization must help people to develop and use their
abilities.
d)
Use a process approach, Organizations are more efficient and
effective when they use a process approach. Therefore,
ƒ
Organizations must use a process approach to manage
activities and related resources.
e)
Take a system approach, Organizations are more efficient and
effective when they use a systems approach. Therefore,
ƒ
Organizations must identify interrelated processes that treat
them as a system.
ƒ
Organizations must use a systems approach to manage their
interrelated processes.
f)
Encourage continual improvement. Organization are more efficient
and effective when continually try to improve. Therefore,
30
ƒ
Organization must make a permanent commitment to
continually improve their overall performance.
g)
Get the fact before you decide. Organizations perform better when
their decisions are based on facts. Therefore,
ƒ
Organizations must base decisions on the analysis of factual
information and data.
h)
Work with your suppliers, Organizations depend on their suppliers to
help them create value, Therefore,
ƒ
Organizations
must
maintain
a
mutually
beneficial
relationship with their suppliers.
3.5
Quality Assurance and Quality Control
Schexnayder and Mayo (2004), stated that quality assurance and quality
control are two different concepts. Quality Assurance (QA) refers to the
management systems employed by construction companies to produce high-quality
work consistently. Meanwhile the quality control (QC) is about the inspection of
work to ensure it meets the quality standards specified in the contract.
QA/QC is a common abbreviation used by engineers and contractors. It
ought not to be used because QA and QC are different. QA is made up of good
management practice. QC is an inspection or sampling process.
Consider the implications of the contractor with a reputation for producing
low-quality construction, which would be the obvious result of ignoring QA, or
31
cutting too many corners, or using only untrained low-paid workers. Some believe
they can make a better profit by working fast with untrained crews, and moving on
to the next job as soon as possible. Such contractors ignore the complaints of their
customers because they intend to get the next job by being the lowest bidder. The
low bid system does not usually contain incentives for contractors to produce highquality work. Many owners believe that any contractor will produce the same
facility, given the same set of plans and specifications. It is an attitude that is fed by
the low bid system. Good contractors prefer to negotiate for work because they
cannot distinguish themselves on low bid projects.
3.6
Total Quality Management ( TQM )
Total Quality Management (TQM) is a system of constant improvement,
first promote by Deming (2004). He claims that American companies lose market
share, and their jobs, because they fail to plan for the future. The key to
understanding TQM is to first understand that the objective is continuous
improvements. TQM is built on a foundation of;
a)
A well-defined vision and mission that everyone understands.
b)
Upper management commitment and leadership in quality matters
c)
Training.
From those three components, companies build better communications and
teamwork, which leads to four important factors;
a)
Customer satisfaction
b)
Improved supplier management
32
c)
Process improvement
d)
Focus on employees
The umbrella over these factor is continuous improvement.
Chew and Chai (1996), stated that many Malaysian companies, particularly,
the small and medium-sized companies are still practicing the traditional concept of
quality control, i.e. quality by inspection. Very few are aware or understand the
terms “Quality Assurance”, “Quality Systems” and “Total Quality Management”. It
is often found that managers of these organizations practice the “inspect in quality”
concept by carrying out inspection-oriented quality control on incoming materials
and components, in-process intermediate products and final products.
Other reasons that can be attributed to the failure to achieve the
requirements of the standards are as follows:
a)
Lack of the infrastructure necessary to achieve the system
b)
Lack of clear directions, i.e. absence of a quality policy and quality
objectives
c)
Lack of necessary documentation such as procedures, work
instructions and records
d)
Lack of clear lines of authority and responsibility
e)
Lack of suitability trained personnel
33
3.7
Quality and Contractor Selection
The owner’s greatest impact on quality is through contractor selection.
Private owners do not resort to using the low bid system because they know that the
system can produce the poorest construction quality, with the greatest number of
change orders, claims and litigation. Most private owners negotiate from a short list
of preferred contractors. Some agencies are also trying different contracting
methods which called performance-based procurement, in which contractor
selection is based on past performance, quality history, management plant for the
project, and price. As in any changing system, there are proponents and there are
opponents foe every potential change, but something has to replace the low bid
system. As comfortable as we are with the low bid system, most observers agree
that quality of construction cannot improve without eliminating the low bid system.
Whether that change will be to the best value procurement, competitive negotiation,
construction manager at risk, or some other concept, remains to be sorted out.
“ Do it right the first time “ is a quality motto that is used in most good
construction companies. Companies loose money when they start having to tear out
work because they failed to do it right the first time. Replacing work changes the
schedule, doubles or triples the cost of the work, and destroys pride and morale.
Doing it right the first time is the connection between quality and productivity.
Highly productive crews know how to “ do it right the first time. In part, they are
productive because they “ do it right the first time “
34
3.8
Selecting The Right Contractor
On behalf of client, to maintain a good quality of workmanship, the best
way is to select the right contractor. As for the contractor, they can use this criteria
as their guidelines to improve their performance.
Chew (2003), listed seven most effective way of selecting a contractor to
carry out construction work, they are describes as follows:
a)
Tender Price, which is derived after price adjustments and life-cycle
cost evaluation;
b)
Time to completion, which is derived from analysis of how realistic
the submitted work programmed can achieve the milestones in the
project;
c)
Quality of product(s) as demonstrated by the product(s) offered, by a
high level of coherence and internal consistency in the technical
particulars to meet the specifications and by the technical and
performance;
d)
Technical and organizational competence, which is shown in their
proposed assignment of adequate and right people ( as seen in the
submitted resumes of the key people ) and the use of experience subcontractors to work on the project, how the organization of the
project team reflects the understanding of the key cause and effect
relationship in the project and how the managements approach could
enhance the construction process of the project;
e)
Financial competence, which is indicated by financial robustness
and adequacy of funds to maintain financial health for seeing the
project through or indications of the ability to deal with any
unforeseen financial impacts on the projects;
35
f)
Past performance, of projects of similar size, complexity and nature
that have been executed successfully thus giving an indication of the
experience and knowledge that can be brought into the project
execution; and
g)
Relationship, in respect of the contractor’s ability and willingness to
sustain a quality business relationship based on pre-existing
knowledge and experience and through the attitude and the responses
revealed during tender clarification, and the indications of
commitment and faithfulness to complete the project.
3.9
Planning The Project
In order to minimize the chances that we will have a problem with the
project, the contractor should understand that planning is the first step in the
process.
When planning the project, be sure to consider energy efficiency. An
energy-efficient home or building costs less to heat or cool, is quieter and more
comfortable, and will sell faster and at a higher price.
Prerequisite to Planning
Before a plan can be prepared the following should be done:
ƒ
Decide what is the objective;
ƒ
Find all relevant facts and information and analyze them;
ƒ
Consider the facts in the light of future trends and outside
influences and use foresight; and
36
ƒ
Consider the resources available, work already in hand or
plans being prepared and take account of this.
Characteristics of a good plan
These should include the following:
a)
Be based on a clearly defined objective and must be practicable;
b)
Be simple and easily understood by all;
c)
Be flexible to accommodate future changes when necessary;
d)
Provide continuity of work: show how various stages are linked;
e)
Provide for easy control by establishing standards for comparison;
f)
Be orderly/sequential;
g)
Exploit existing resources to the maximum before new resources are
obtained;
h)
Be definite in its requirements;
i)
Be arranged in a series of steps to be taken in sequence, each step
being a miniature objective in itself;
j)
Be made in conjunction with those concerned and have their
approval;
k)
Be made with the help of those who are to carry it out;
l)
Incorporate all old and new plans to cover the total new objective;
m)
Consist of one master plan incorporating all sub-plans; and
n)
Be arranged in stages – that which is definite, that which is probable
and that which is tentative/flexible.
37
Reason for Planning
Generally, planning elicits commitment, instills discipline, and produces
results. Tangible reasons for planning include the following:
a)
To aid contract control;
b)
To establish realistic standards;
c)
To monitor performance in terms of output, time and money; and
d)
To keep the project under constant review, and take action when
necessary to correct the situation.
Suggestion for effective planning
Tan (2004), stated that the suggestion for effective planning are as follows:
a)
Plan to plan. It is always difficult to get people together to develop a
plan. The planning session itself should be planned or it may turn
into a totally disorganized meeting of the type that plagues many
organizations;
b)
The people who must implement a plan should participate in
preparing it;
c)
The first rule of planning is to be prepared to replan. No one has
20/20 foresight. Unexpected obstacles will undoubtedly crop up;
d)
Because unexpected obstacles will crop up, always conduct a risk
analysis to anticipate the more likely ones. Develop a plan B just in
case Plan A doesn’t work. Why not just use Plan B in the first place?
Because Plan A is better, but has a few weaknesses. Plan B has
38
weaknesses also, but they must be different than those in Plan A, or
there is no use in considering it a backup;
e)
Begin with definition of the purposes of doing whatever is to be
done. Develop a problem statement. All actions in an organization
should be taken to achieve a result, which is another way of saying,
“solve a problem.” If this step is skipped, you may find yourself
developing the right solution to the wrong problem; and
f)
Use the Work Breakdown Structure to divide the work into smaller
“chunks” that can have accurate estimates developed for duration,
cost, and resource requirements.
Stages Of the Planning Process
No two companies undertake the same procedures, but the various stages of
planning will be much the same whatever the size of business. For convenience, the
planning process may be thought of as three distinct stages:
a)
Pre-tender planning: The planning considerations during the
preparation of an estimate and its conversion into a commercial bid;
b)
Pre-contract planning: The planning process that takes place prior to
the commencement of work on site; and
c)
Contract planning: This is required to be implemented in order to
maintain control and ensure that the project is completed on time and
within the cost limits established at the tender stage.
39
Project Planning Steps
The Basic planning steps and the resulting documents stated by
Lewis (2005), that must be generated are as follows:
a)
Define the problem to solve by the project. This yields a problem
statement;
b)
Develop a mission statement (when appropriate), followed by
statements of major objectives;
c)
Develop a project strategy;
d)
Write a scope statement to define project boundaries (what will and
will not be done);
e)
Develop a Work Breakdown Structure (WBS);
f)
Using the WBS, estimate activity durations, resource requirements,
and costs (as appropriate for your environments);
g)
Prepare the project master schedule and budget;
h)
Decide on the project organization structure – whether matrix or
hierarchical;
3.10
i)
Set up project notebook; and
j)
Get the plan signed off by all project stakeholders.
Enquiries to subcontractors and suppliers
When tendering for jobs, most contracting organizations usually make
enquiries to subcontractors and suppliers, asking them to tender for the execution of
various trades as indicated in the bills of quantities. The main contractor may wish
to retain those aspects of the works for which they specialize on, or those aspects of
40
the work which execution are critical to the success of the project. However, some
organizations may wish to obtain tenders from subcontractors for all the trades,
using these tenders as basis for comparing their own estimates. In making the
enquiries, the main contractor extracts the relevant trades or sections of the bills and
contract information (drawings, specifications, form of contract, etc), and
dispatches these to the respective trade subcontractors. Each subcontractor submits
a tender sum and requirements for preliminaries or temporary works which the
contractor must provide. The main contractor sums up the subcontractors’ tenders,
and add his profit and overhead to arrive at this his own bid for the job.
The Chartered Institute of Building (CIOB) Code of Estimating Practice
identify what information should be contained in the contractor’s enquiry to a
subcontractor. The Code proposes a checklist which is summarized as follows:
3.11
Checklist for subcontract invitation to tender:
a)
b)
Details of main contract works:
ƒ
Job title and location of site;
ƒ
Name of employer;
ƒ
Names of consultants; and
ƒ
General description of the works.
Subcontract works:
ƒ
Relevant extracts from the bills of quantities and
specification;
ƒ
Extracts from the contract preliminaries section;
ƒ
Copies of relevant drawings;
ƒ
Details of where original documents may be inspected;
41
ƒ
Time period for the completion of subcontract work (if
known);
ƒ
Approximate dates when subcontract work will be
undertaken; and
ƒ
c)
Names of adjudicator (in case of dispute).
Subcontractor’s responsibility for site arrangements and facilities
Watching and lighting
d)
ƒ
Storage facilities;
ƒ
Unloading, hoisting and getting in materials;
ƒ
Scaffolding;
ƒ
Water and temporary electrical supplies;
ƒ
Safety, health and welfare provisions;
ƒ
Licenses and permits; and
ƒ
Any additional facilities.
Conditions of subcontract:
ƒ
Form of subcontract agreement;
ƒ
Period of interim payments and payment terms, including;
whether ‘pay when paid’ will apply;
e)
ƒ
Discount applicable to the payments;
ƒ
Fluctuations or fixed price tender; and
ƒ
Other special conditions.
Particulars of the main contract conditions:
42
An extract from the appendix to the form of contract will assist in providing
a summary of the contract particulars. This should contain the following
information:
f)
g)
ƒ
Form of contract;
ƒ
Fluctuations provisions;
ƒ
Method of measurement;
ƒ
Main contract period and completion date;
ƒ
Defects liability period;
ƒ
Liquidated and ascertained damages;
ƒ
Period of interim certificates;
ƒ
Basis of day works;
ƒ
Insurance provisions; and
ƒ
Deletions or amendments to the standard contract clauses.
Type of quotation required from the subcontractor:
ƒ
Lump sum quotation; and
ƒ
Schedule of rates.
Other information:
ƒ
Date for the return of the tender;
ƒ
Person in the contractor’s organization to contact;
ƒ
Period for which the tender is to remain open for acceptance;
ƒ
Extent of the phasing of the works and number of anticipated
visits to undertake the works; and
ƒ
Reference to any relevant attendances likely to affect the
subcontractor.
43
3.12
Scheduling the Work
The contractor should specify an approximate starting date and completion
date for the project. For example, the contract should read "Begin approximately
April 20 and end approximately April 30," not "Complete the job in 10 days." This
eliminates the possibility that the contractor will take 10 days to finish the job but
spread them out over the span of a year. However, external factors such as the
weather or the availability of supplies might cause delays.
3.13
Keep a Job File
The contractor should keep a file of all papers relating to the project for the
future reference. It should include:
a)
The contract and any change orders;
b)
Plans and specifications;
c)
Bills and invoices;
d)
Canceled checks;
e)
Lien releases from subcontractors and material suppliers;
f)
Letters, notes, and correspondence with your contractor; and
g)
Pictures of the job in progress.
44
It is also a good idea to keep a record of each subcontractor who works on
the project, the work performed, and length of time on the job. When material
suppliers make a delivery, write down the name of the company, the date, and a
general description of what they delivered. When received preliminary notices from
subcontractors or suppliers, make sure receive with lien releases. Check them
against the list. That way we will have a record of who has and has not been paid.
3.14
Provide Site Training For Workers
The needs for training
There seems to be a prevailing belief in the United States that if you are
good at doing something, then you can manage other people doing that the same
work,(Lewis,2005).
All employees of the organization should be provided with adequate training
in their respective field so as to enable them to execute their jobs responsibilities
efficiency. Training should be provided to all of the head office staff and permanent
staff assigned to the sites. Contract staff are generally not covered in any training
programme except on the request of the management.
Each manager is responsible for identifying the training needs and provides
training for staff under his supervision. This is to ensure that they have the basic
competence skills and experience necessary to perform their tasks, (Chew and
Chai,1996).
45
3.15
Improve the method of supervision of labors work.
“Supervision is the economic development of the project will rely almost on
the efficiency of the organization on site and the quality of the work will be
determined by the effectiveness of the site supervision” (Broughton, 2003).
The three main areas where supervisory performance is most important:
a)
Concerned with actual processes and tasks to be supervised;
b)
Concern with the variety of control and co ordinations required by
the numerous interested organizations over these processes; and
c)
Concerned with people who are involved in these processes.
Effective supervision is, therefore, related to a combination of technical,
operational and human aspects of construction work. The effective, or successful,
supervision depend upon the ability and motivation of the individual supervisor and
the opportunities given to him by higher management. To be successful supervisor,
he must learn how to do a number of things:
a)
He must learn how to guide and direct the efforts of the people he is
responsible for;
b)
He must learn how to work in the organization of which he and his
people are part;
c)
He must learn how to train or teach people to do their jobs;
d)
He must learn how to speak and write clearly and effectively;
e)
He must learn how to analyze workloads;
f)
He must learn how to make plan of action; and
g)
He must learn how to schedule work.
46
3.16
Summary
From the literature research above, therefore, the strategy to improve quality
performance can be summarize as know how to improve the method of supervision
of labors work; how to improve the method of planning and scheduling techniques;
provides site training for workers; improve the system of checking drawings and
specification; practice the effective site communication, production meeting and
minutes; practice good quality assurance from top management; focus on client
needs, meet the client requirements and exceed the client expectation; maintain
mutually beneficial relationship with supplier; improve the quality control and
method of checking, and good discussion and negotiation skills with client.
47
CHAPTER 4
RESEARCH METHODOLOGY
4.1
Introduction
The research methodology is essential in guiding the researcher to achieve
the aim and the objectives of the study. This chapter will describe the methodology
used in carrying out this study. The study was carried out first through the literature
search and followed by interviews and questionnaire. Subsequently, the
questionnaires and their results and inferences are presented. It follows through
discussions and suggestions and eventually conclusions being drawn to conclude
the study.
The targeted participants comprised experienced senior or principal of the
companies such as managing directors, managers and project managers. This group
of people chosen was likely to possess substantial experience in data collection
methods and to make judgments and opinions on the importance of essential skills
or to pass the questionnaire to the right person if they were not participating, (Lee
and Tan, 2003).
48
4.2
Research Methodology
To encourage participation, each company was contacted by telephone prior
to sending out the mail questionnaire. From this initial contact, the respondent’s
name, functions and responsibilities within their respective departments were
determined. A total of 100 mail questionnaire were utilized and sent to carefully
identified and selected project-intensive engineering organizations, in which the
selection is based on the number, size, and types of projects. The data collection
was based on a detailed, 6-page, pre-tested research questionnaire. The
questionnaire was pre-tested three weeks prior to the postal survey by submitting it
to a few selected project managers in engineering project-based organizations.
These people were asked to comment on each question in term of ease of
understanding and interpretation, content, appropriateness, relevance, and
comprehensiveness. The survey questionnaire were subsequently revised from the
information and feedback provided by these participants.
The questionnaire was designed and communicated in a user-friendly
multiple-choice format, with only a few open-ended questions, to reduce answering
effort, and to aid the recipients in making decisions. In the postal surveys, the
questionnaire was accompanied by a personalized cover letter (assuring anonymity
and confidentially) and gave the participant instructions and the purpose of the
intended research. A self- addressed stamped envelope was include for the
convenience of the participants to return the completed questionnaire. To boost
response rates and to ensure a timely completion of the questionnaire, two weeks
after the initial mailing, non-respondents with e-mail accounts were sent online
questionnaires as a friendly reminder. This improved the response rate to
approximately 40 percent. A week after that, a telephone follow-up call was carried
out to request for their cooperation. Up to three attempts were made to reach
individuals who had not yet returned the complete questionnaire by the set deadline.
49
Both telephone and personal interviews were conducted with participants
from various contractors firm, with the aid of structured questionnaires. Interview
questions centered around the business profile and environment, project activities,
issues of recruitment problems, current and future skills requirements, employer
expectations and perceptions on skills training, hiring practices, and issues that
important to the employer but not covered in the questionnaire, (Lee and Tan,
2003).
For this study the brief methodology is divided into four stages, such as:
a)
Literature Review;
b)
Data Collection;
c)
Analysis; and
d)
Findings.
In the part of the preliminary study , the following three items were identified and
been studied;
4.3
a)
Statement of problems;
b)
Objectives; and
c)
Scope of Study.
Literature Review
There are two important sections under the literature review where the first
section explain the factors that influence the contractors performance and the
critical factors that influence the contractors performance. The second part of the
section describes the method to improve the contractors performance. The purpose
of the literature review was to help the author on the general overview of the study.
The literature study was done through reading and searching on the subjects from
50
books, journals, magazines, and PKK and CIDB Registration Procedures and
Regulations.
The literature review hence, provides guidance to questionnaire preparation,
which is discussed in the following section.
4.4
Data Collections
In this stage, data collection to be study in this research were categorized
into two kind of data:
a)
Primary data
b)
Secondary Data
The primary data were collected in two method, the first method by the
questionnaire – where question been developed and distribute to the relevant
contractor and the second method by face to face interviews.
Questionnaire is designed base on literature and consultation with the
relevant professional. Questionnaires then distributes to significant respondent that
identified earlier. ( Please refer to Appendix A – Questionnaire form )
Questionnaire is designed in two main sections. Section 1 is about general
information on the background of respondent. Section 2 is about the opinion
regarding factors that influencing the contractors performance, the critical factors
that influence the contractors performance and the method to improve the
performance.
51
The distributed questionnaires were collected and analyzed using statistical
method. Discussion was done base on the derived results and related statistic and
suggestion by the participants were include. Out of the 100 significant respondent
identified, a total of 33 responses were obtained.
4.4.1
Questionnaire Design
The question asked in the questionnaire could be in the form of multiple
choice or open ended questions. Multiple-choice questions require the anticipation
of the whole range of likely answers, which would be given, and formulating the
options as such. The options available should be established had been on the desk
research and preliminary casual interview with some industry players to test the
validity of options.
Having considered the factors that influence the contractors performance
and the strategies to improve the performance, a semi-structured approach with
mostly multiple-choice questions was selected. The sample of questionnaire used
for the survey in this study is shown in Appendix A. The multiple-choice questions
are based on Likert’s scale of five ordinal measures of agreement towards each
statement (from 1 to 5) as shown in Figure 4.1 below.
52
Ordinal scale 1 to 5 in ascending order
1
2
3
4
5
Increasing degree of agreement
Each scale represents the following rating:
1 = Strongly Disagree
2 = Disagree
3 = Not Sure
4 = Agree
5 = Strongly Agree
Figure 4.1: Five Ordinal Measures of Contributing Factors
of Likert Scale
4.5
Analysis of Data
The next logical step, after collecting the information is to analyse the
information and available data. The factors that influencing the contractors
performance and the strategies undertaken in order to improve the contractors
performance are identified. The factors that influence the contractors performance
are list ten main factors as stated in Table 4.1.
53
Table 4.1: The Factor That Influence The Contractor’s Performance
No.
The Factor Influence Contractors’ Performance
1
Experience & Skilled Workers
2
Understand the method of work
3
Good Planning & Scheduling
4
Understand Specification & Drawings
5
Good communication between supervisors and workers
6
Understand the client needs and quality expected
7
Use the quality materials
8
Financial Competence and good cash flow
9
Competent site supervisor full time at site
10
Own machinery and equipment
The procedure has been used in analyzing the result of questionnaire survey
is aimed that at establishing the relative importance for the various factors that
influencing the contractors performance and to determine the most common factors
by ranking them according to the data given by the respondents. Beside that, the
questionnaire survey is also aimed to search the respondents feedback regarding the
strategies undertaken by the construction organization in order to succeed and any
better ways to improve the performance of the construction organizations. It is
intended that the results obtained would generate some proposals on how could the
construction organization succeed in today’s construction industry.
54
Table 4.2: The Strategies To Improve The Contractor’s Performance
No.
1
The Strategies to improve Contractors’ Performance
Focus on client needs, meet the client requirements and exceed
the client expectation
4.5.1
2
Improve the method of supervision of labors work
3
Improve Planning & Scheduling techniques
4
Maintain mutually beneficial relationship with supplier
5
Good discussion and negotiation skills with client
6
Effective site communication, production meeting and minutes
7
Good quality assurance from top management
8
Improve the quality control and method of checking
9
Improve the system of checking drawings and specification
10
Site training
Questionnaire Measure
The sample of questionnaire used it the interview for this study as attached
in Appendix A. This questionnaire is mainly based on a Likert’s Scale of five
ordinal measures from one (1) to five (5) according to the level of agreement as
stated in Figure 4.1 above.
The data generated from the questionnaire was analyzed by using the
frequency analysis. The measurement tools in the survey provide quantitative
indication of qualitative judgments.
55
The rating scale for the questionnaire are; 1=strongly disagree, 2=disagree,
3=not sure, 4=agree and 5=strongly agree.
The average index formula:
Average Index = ∑ μ X n
(1)
N
Where,
μ is weighting given to each factor by respondents;
n is the frequency of the respondent;
N is the total number of respondent.
With the rating scale as below, (Abd. Majid and McCaffer, 1997);
-
1 = Strongly Disagree( 1.00 ≤ Average Index ≥ 1.50 )
-
2 = Disagree
( 1.50 ≤ Average Index ≥ 2.50 )
-
3 = Not Sure
( 2.50 ≤ Average Index ≥ 3.50 )
-
4 = Agree
( 3.50 ≤ Average Index ≥ 4.50 )
-
5 = Strongly Agree
( 4.50 ≤ Average Index ≥ 5.00 )
56
4.6
Summary
For the conclusion, the method of data collection is divided in two ways, by
the questionnaire and face to face interviews. Each company was contacted by
telephone prior to sending out the mail questionnaire to encourage participation.
The questionnaire was pre-tested three weeks prior to the postal survey by
submitting it to a few selected project managers. These people were asked to
comment on each question. A self- addressed stamped envelope was include for the
convenience of the participants to return the completed questionnaire. A week after
that, a telephone follow-up call was carried out to request for their cooperation.
Personal interviews were conducted with the aid of structured questionnaires.
Interview questions centered around the business profile and environment, project
activities, issues of recruitment problems, current and future skills requirements and
clients expectations. The questionnaires are used to collect data. The average index
formula been used to analyzed the data. Finally, from the findings of questionnaire
survey, the researcher will be able to identify the success factors and the strategies
as well as the way to improve the performance of construction organization.
57
CHAPTER 5
DATA ANALYSIS AND RESULTS
5.1
Introduction
After all data have been collected through the questionnaire survey, the data
is then analyzed and discussed. This chapter presents the analysis and the results of
the research derived from the data gathered from the questionnaires. In accordance
to the research methodology as described in the previous chapter, the data and the
results are analyzed and presented in alignment with the objectives in Chapter 1.
This chapter also gives the brief information about Felda Plantations Sdn.
Bhd. as the client’s including the client’s background, corporate mission and the
company strength. The respondent background also been highlighted and analyzed
in terms of registrations background, staff strength and financial capabilities.
58
5.2
Clients Background
Felda Plantations Sdn Bhd (FPSB) was formed on 13th January 1992. It is a
management services company with expertise in the plantation industry. The main
activities are to manage Felda commercial estates and replanting Felda estates. The
management office and head quarters is located at 8th Floor, Balai Felda, Jalan
Gurney 1, 54000 Kuala Lumpur. (Please refer to Appendix A for the office location
and FPSB estates)
5.2.1 Corporate Mission
The Felda Plantations missions are :
a)
Managing Felda's estates in accordance with good agricultural
practices and in compliance with environmental norms to ensure
long-term sustainability and competitiveness; and
b)
Ensuring Felda estates yields and cost are comparable with other
private estate in the industry.
5.2.2
Staff Strength
Felda Plantations Sdn. Bhd. have a total of 2333 staffs, whereas 223 staffs
are from agency such as head quarters and regional office, meanwhile the estates
have 2110 staffs, as tabulated in Table 5.1 below:
59
Table 5.1: Felda Plantations Sdn. Bhd. Staff Strength
Location
Executive
Non Executive
Total
Agency
99
124
223
Estates
474
1636
2110
Total Staff
573
1760
2333
Figure 5.1: Felda Plantations Sdn. Bhd. Staff Strength
60
5.2.3
Financial Highlights
The authorized capital for the company is about RM 45 million and the
paid-up capital reach up to RM 30 million. The major shareholders for the company
is from Felda Holdings Berhad holds the 51% of shares, meanwhile Federal Land
Development Authority (FELDA) holds 49% of shares. Table 5.2 and Table 5.3
shows the company Authorized and Paid-Up Capital and Major Shareholders.
Table 5.2: Company Authorized and Paid-Up Capital
Capital
Value (RM’) Million
Authorized
45
Paid-Up
30
Shareholder Fund & Reserve
165
Table 5.3: Felda Plantations Sdn. Bhd. Shareholders
Company
Share
Felda Holdings Berhad
51%
Felda
49%
61
5.3
The Respondents Background
From the list of the contractors registration with the Felda Plantations Sdn.
Bhd. from the year of 2004 to 30th of June 2005, can be summarized as shows in
table 5.4.
The registered list shows that 95 percents of the company
that were
registered are bumiputera status which hold the majority company’s board of
director or share holder more than 51%. There are only 5% of the company are nonbumiputera as tabulated in Figure 5.2 below.
Table 5.4: Respondent Registration With Felda Plantations Sdn. Bhd.
Description
Frequency
Percent (%)
Cumulative %
Bumiputera
211
95
95
Non-Bumiputera
11
5
100
TOTAL
222
100
Non Bumi
5%
Bumiputera
Non Bumi
Bumiputera
95%
Figure 5.2: Registration of Contractors Under Felda Plantations Sdn. Bhd.
62
a.
Registration Under Relevant Bodies
For the tender purposes, the contractors which registered their company for
the tender job under Felda Plantations Sdn. Bhd. compulsory must have their
registration with the relevant board or authority such as Pusat Khidmat Kontraktor
(PKK), Construction Industry Development Board (CIDB), Company Commission
of Malaysia (CCM), Ministry of Finance (MOF), etc.
The tabulated contractor’s registrations under the relevant bodies are as
shown in Table 5.5 and Figure 5.3 below:
Table 5.5: Respondent Registration Under Relevant Bodies
Description
Frequency
Percent (%)
Cumulative %
PKK
204
87
87
CIDB (Only)
6
3
90
CCM
10
9
99
MoF
2
1
100
TOTAL
222
100
CIDB
3%
CCM
9%
MOF
1%
PKK
CIDB
CCM
MOF
PKK
87%
Figure 5.3: Registration of Contractors Under Relevant Bodies
63
b.
Registration With Pusat Khidmat Kontraktor (PKK)
The company that registered with Pusat Khidmat Kontraktor were range
from class “A” to class “F” are as shown in Table 5.6 and Figure 5.4 below:
Table 5.6: Respondent Registration With PKK
Description
Frequency
Percent (%)
Cumulative %
Class A
15
8
8
Class B
30
15
23
Class C
23
12
35
Class D
45
22
57
Class E
8
5
62
Class F
76
38
100
TOTAL
197
100
Class A
8%
Class F
38%
Class B
15%
Class A
Class B
Class C
Class C
12%
Class E
5%
Class D
22%
Figure 5.4: Registration of Contractors Under PKK
Class D
Class E
Class F
64
The figure shows that the highest registered were Class “F” contractors that
consists of 38%, follows by Class “D” of 22% and Class “B” of 15 %.
The tendering capacity which stated by Pusat Khidmat Kontraktor are as
follows;
1)
Class A
=
More than RM 10,000,000;
2)
Class B
=
From RM 5,000,001 to RM 10,000,000;
3)
Class C
=
From RM 2,000,001 to RM 5,000,000;
4)
Class D
=
From RM 500,001
to RM 2,000,000;
5)
Class E
=
From RM 200,001
to RM 500,000; and
6)
Class F
=
Up to RM 200,000.
c.
Registration With Construction Industry Development Board
(CIDB) Only
The companies which registered with Construction Industry Development
Board (CIDB) only, in this case, this companies did not have the registration with
Pusat Khidmat Kontraktor (PKK), are as follows:
Table 5.7: Respondent Registration With CIDB Only
Description
Frequency
Percent (%)
Cumulative %
Grade G7
2
33.5
33.5
Grade G4
1
16.5
50
Grade G3
1
16.5
66.5
Grade G2
2
33.5
100
TOTAL
6
100
65
CIDB G7
33%
CIDB G2
33%
CIDB G7
CIDB G4
CIDB G3
CIDB G2
CIDB G3
17%
CIDB G4
17%
Figure 5.5: Registration of Contractors Under CIDB Only
The figure above shows that the highest registered grade with CIDB were
G2 and G7 that consists of 33% each, follows by Grade G3 and G4 of 17 % each.
The tendering capacities for each grades of CIDB registration are as follows:
1)
Grade G1
=
Not exceeding RM 100,000;
2)
Grade G2
=
Not exceeding RM 500,000;
3)
Grade G3
=
Not exceeding RM 1,000,000;
4)
Grade G4
=
Not exceeding RM 3,000,000;
5)
Grade G5
=
Not exceeding RM 5,000,000;
6)
Grade G6
=
Not exceeding RM 10,000,000; and
7)
Grade G7
=
No Limit.
66
5.4
Result and Analysis
Out of the 100 questionnaires that were mailed, 49 (49%) questionnaires
were return, from 49 return questionnaires only 33 (67%) were useable, 16 were
rejected (32%) due to the incorrect and not properly answered.
The non-
respondents quoted the following for their non-participation; lack of time (too
busy), lack of interest, and matters of confidentiality.
Table 5.8 and Table 5.6 below show the tabulated and the percentage of the
returned questionnaire.
Table 5.8: Returned Questionnaire
Description
Frequency
Percent (%)
Cumulative %
Useable
33
67.5
67.5
Reject
16
32.5
100
TOTAL
49
100
Reject
33%
Useable
Reject
Useable
67%
Figure 5.6: Returned Questionnaire
67
From the analysis of the contractors as the participant from the returned of
33 questionnaire, the factors below has been found:
a.
The Full Time Staff in The Contractors Firm
Form the analysis, the most high percentage of staff work with contractors
were from 1 t0 5 years ( 54%), follows by 11 to 20 years (36%), over than 20 years
(6%) and 6 to 10 years (4%). The tabulated percentage as shown in Table 5.9 and
Figure 5.7 below:
Table 5.9: The Full Time Staff in The Construction Firm
Description
Frequency
Percent (%)
Cumulative %
1 – 5 Years
18
54
54
6 – 10 Years
01
4
60
11 – 20 Years
12
36
96
>20 Years
02
6
100
TOTAL
33
100
>20 Years
6%
1 - 5 Years
11 - 20 Years
36%
6 - 10 Years
1 - 5 Years
54%
6 - 10 Years
4%
Figure 5.7: Full Time Staff Work Under Contractors
11 - 20 Years
>20 Years
68
b.
The contractor’s experience involved in the construction industry
Form the analysis, the percentage of contractors experience were from 1 to 5
years ( 42%), follows by 6 to 10 years (36%), 11 to 20 years (225) and over than 20
years (6%) The tabulated percentage as shown in Table 5.10 and Figure 5.8 below:
Table 5.10: The contractor’s experience involved in the construction industry
Description
Frequency
Percent (%)
Cumulative %
1 – 5 Years
14
42.5
42.5
6 – 10 Years
12
36
78.5
11 – 20 Years
07
21.5
100
>20 Years
00
00
100
TOTAL
33
100
11 - 20 Years
22%
>20 Years
0%
1 - 5 Years
42%
1 - 5 Years
6 - 10 Years
11 - 20 Years
6 - 10 Years
36%
>20 Years
Figure 5.8: The Contractors Experience in Construction Industry
69
c.
The Respondent Company Manager’s or Owner’s Qualifications
Form the analysis, the percentage of Manager’s Qualifications were 48%
Obtain Certificates such as “Sijil Asas Kontraktor Binaan”, 30% Other
qualifications not related to the construction fields, 12% have diplomas and 10%
have Degrees in related construction fields. The tabulated percentage as shown in
Table 5.11 and Figure 5.9 below:
Table 5.11: The Company Manager’s or Owner’s Qualifications
Description
Frequency
Percent (%)
Cumulative %
Degree
3
9
9
Diploma
4
12
21
Certificate
16
48.5
69.5
Others
10
30.5
100
TOTAL
33
100
Others
30%
Degree
10%
Diploma
12%
Degree
Diploma
Certificate
Others
Certificate
48%
Figure 5.9: The Company Manager’s Qualification
70
d.
The Respondent’s Company Paid Up Capital
Form the analysis, the most of the companies Paid-Up capital were range
from RM100,000 to RM 200,000 ( 36%), follows by RM200,000 to RM 500,000
and below than RM 100,000 (30%), and more than RM 500,000 (4%). The
tabulated percentage as shown in Table 5.12 and Figure 5.10 below:
Table 5.12: The Company Paid Up Capital
Description
Frequency
Percent (%)
Cumulative %
Below RM 100K
10
30
30
RM100K-RM200K
12
36
66
RM200K-RM500K
10
30
96
Above RM500K
01
4
100
TOTAL
33
100
RM200,000RM500,00
30%
>RM500,000
4%
<RM100,00
30%
<RM100,00
RM100,000-RM200,000
RM200,000-RM500,00
RM100,000RM200,000
36%
Figure 5.10: The Company Paid-Up Capital
>RM500,000
71
5.5
The Result of The Questionnaire Survey
a.
The result of the factors that influence the contractor’s performance
This section investigates the factors that influence the contractor’s
performance. Table 5.13 shows the results of mailed survey of the factors that
influence the contractor’s performance:
Table 5.13
No
The Factor that Influence The Contractor’s Performance
1
Factor That Influence
The Contractor’s
Performance
Good Planning & Scheduling
Frequency Analysis
Average
Index
1
2
3
4
5
No. of Respondents
0
1
0 10 22
4.60
2
Experience & Skilled Workers
0
0
2
7
24
4.67
1
3
Understand the method of
work
Good communication between
supervisors and workers
Use the quality materials
1
0
0
8
24
4.63
2
1
1
0
8
23
4.55
5
1
0
0
15
17
4.42
7
0
0
1
12
20
4.57
4
0
1
2
18
12
4.24
9
0
0
1
16
16
4.45
6
2
0
0
14
17
4.33
8
2
1
4
19
7
3.84
10
4
5
6
7
8
9
10
Understand Specification &
Drawings
Competent site supervisor full
time at site
Understand the client needs
and quality expected
Financial Competence and
good cash flow
Own
machinery
and
equipment
Rank
3
72
b.
The result of the critical factors that influence the contractor’s
performance
A table 5.14 shows the result of the critical factors that influence the
contractor’s performance. This result comes from the factors that influence the
contractors performance above, then the factors been ranked to get the result which
number 1 as the most critical to number 10 the less critical and the result as shown
below:
Table 5.14
No.
The Critical Factor That Influence The Contractor’s Performance
The Critical Factor Influence Contractor’s
Rank
Performance
1
Experience & Skilled Workers
1
2
Understand the method of work
2
3
Good Planning & Scheduling
3
4
Understand Specification & Drawings
4
5
Good communication between supervisors and
5
workers
6
Understand the client needs and quality expected
6
7
Use the quality materials
7
8
Financial Competence and good cash flow
8
9
Competent site supervisor full time at site
9
10
Own machinery and equipment
10
73
c.
The result of the strategies to improve the contractor’s performance
The last section of the questionnaire investigates the extent of the strategies
that to improve the contractor’s performance. The results are as tabulated in Table
5.15 below.
Table 5.15: The Strategies to Improve The Contractor’s Performance
No.
1
2
3
4
5
6
7
8
9
10
The Strategies To Improve
The Contractor’s
Performance
Site training
Improve the system of
checking
drawings
and
specification
Improve
Planning
&
Scheduling techniques
Improve the method of
supervision of labors work
Good quality assurance from
top management
Effective site communication,
production
meeting
and
minutes
Improve the quality control
and method of checking
Good
discussion
and
negotiation skills with client
Maintain mutually beneficial
relationship with supplier
Focus on client needs, meet
the client requirements and
exceed the client expectation
Average
Frequency Analysis
Index
1
2
3
4
5
No. of Respondents
1
2
3 17 10
4.13
Rank
10
0
0
0
17
16
4.48
8
0
0
0
12
21
4.63
3
0
0
0
11
22
4.67
2
0
0
1
14
18
4.51
6
0
0
0
16
17
4.51
6
0
0
0
17
16
4.48
8
0
0
0
15
18
4.55
5
0
0
0
13
20
4.60
4
0
0
0
10
23
4.70
1
74
5.6
Findings and Discussions
This section discusses the findings of this study. The results of the study are
analyzed and
discussed in the following sequence to answer the objectives
mentioned in Chapter 1. The aforementioned analysis sequence is organized and
presented the data in some meaningful and logical order. After the data have been
organized and presented into descriptive manner, it is then analyzed and interpreted
them in order to draw inferences about the data obtained. The discussions are
divided into four parts. The first part discusses the respondent background. The
second part discusses the factors that influence the contractor’s performance. Then,
follows by the establishment of critical factors that influence the contractor’s
performance. Finally, discuss on the strategies undertaken by the construction
organization to improve their performance.
Discussion on the findings will be based on Average Index as the indicator
corresponding to each statement. The value of Average Index ranging from 1.00 to
5.00, with 3.84 being the lowest degree of rating for the responses and 4.70 gives
the highest degree of responses.
a.
Respondents Background
A group of respondents (42.5%) have experience in the construction
industry between 1 to 5 years, (36%) have experience between 6 to 10 years and
(21.5%) have an experience between 11 to 20 years.
75
b.
First Objective: To identify the factors that influence the contractor’s
performance
This section discussed the findings based on the results obtained from the
questionnaire survey vis-à-vis the factors that influence the contractor’s
performance. Table 5.16 shows the ranking of the factors that influencing
the contractor’s performance.
Table 5.16
No.
The Factor that Influence The Contractor’s Performance
The Factor Influence Contractor’s Performance
Rank/AI
1
Experience & Skilled Workers
1 (4.67)
2
Understand the method of work
2 (4.63)
3
Good Planning & Scheduling
3 (4.60)
4
Understand Specification & Drawings
4 (4.57)
5
Good communication between supervisors and workers
5 (4.55)
6
Understand the client needs and quality expected
6 (4.45)
7
Use the quality materials
7 (4.42)
8
Financial Competence and good cash flow
8 (4.33)
9
Competent site supervisor full time at site
9 (4.24)
10
Own machinery and equipment
10(3.84)
The Tables 5.16 indicate most of the factors listed above achieving the
average index of more than 3.5 to not more than 5.0 rating scale region that directly
indicate 10 factors that influence the contractor’s performance. Relatively, the
majority of the respondent agreed it is crucial to be taken into consideration the 10
factors. This indicate three major factors that most important while running a
project is to use the experience and skilled workers, to understand the method of
work and to practice a good planning and scheduling of the work.
76
c.
Second Objective: To identify the critical factors that influence the
contractor’s performance
From the ranking above, the critical factors that influence the contractor’s
performance been identified. The used of the experience and skilled workers were
the most critical parts that must be considered to ensure the good quality of work.
Because, non experienced and non skilled workers will directly effect the quality of
performance and can cause the failure of the project schedule when the bad quality
of work have to reconstruct to meet the client’s expected quality. The contractor’s
skilled workforce may be a factor in the client’s decision to select the contractor to
perform the work. At the same time, the contractor’s skilled workforce creates
expectations on the part of the client. For example, because of the skilled
workforce, the client may have the expectation that there will be no rework on the
project or service calls to repair something after the customer has begun using the
facility.
The second highest rank of the critical factors is the contractor must
understand the method of work. “Do it right the first time” to prevent the
reconstruct of the work, this motto is used in most good construction companies.
The companies loose money when they start having to tear out work because they
failed to do it right the first time. Replacing work changes the schedule, doubles or
triples the cost of the work, and destroys pride and morale. Highly productive crews
know how to “do it the first time”. That’s why, before start work, the contractors
must submit the method statement to make sure they understand the method of
work.
Good Planning & Scheduling of the work is critical because this factors will
effect the performance when the schedule or programmed of work is out of order.
The improper planning of the resources, materials, time and financial can cause the
77
project problems, delay and abandoned. “Failing to plan is planning to fail” and “
once you plan your work, you must work your plan” this is another motto that have
been used in most good construction companies. Project planning is the strategy to
accomplish the work. It involves selecting and assigning competent and compatible,
qualified and experienced project staff as well as identifying the task and activities
necessary to accomplish the work.
d.
Third Objective: The strategy to improve the contractor’s performance
This section discussed the findings based on the result obtained from the
questionnaire vis-à-vis the strategies that is undertaken by the construction
organization to improve the performance. Table 5.17 shows the ranking of
strategies that is undertaken by the companies to improve their performance.
Table 5.17: The Strategies to Improve The Contractor’s Performance
No.
The Strategies to Improve Contractors’ Performance
Rank/A.I
1
Focus on client needs, meet the client requirements and exceed
1 (4.70)
the client expectation
2
Improve the method of supervision of labors work
2 (4.67)
3
Improve Planning & Scheduling techniques
3 (4.63)
4
Maintain mutually beneficial relationship with supplier
4 (4.67)
5
Good discussion and negotiation skills with client
5 (4.55)
6
Effective site communication, production meeting and minutes
6 (4.51)
7
Good quality assurance from top management
6 (4.51)
8
Improve the quality control and method of checking
8 (4.48)
9
Improve the system of checking drawings and specification
8 ( 4.48)
10
Site training
10 (4.13)
78
As the Table 5.17 presented that the focus on client needs, meet the client
requirements and exceeds the client expectation is the most important strategy to
highlight to improve the contractor’s performance with average index of 4.70. The
method of supervision of labors work is the second rank of 4.67 average index,
while improve the planning and scheduling techniques is the third rank with 4.63
average index. This is important because when the task were proper planning the
contractor can do the job without pressure that will effect their focus.
From the result above, the three most important strategy to improve the
performance of the contractors were identified, there are;
Focus on client needs, meet the client requirements and exceed the client
expectation; the contractors must understand the concept from the beginning what
the client’s expectation and have to maintain that expectation until the handing over
of the contract.
Improve the method of supervision of labors work, the proper method of
supervision must be developed and the checklist of the method of work must be
clear to maintain the quality of the workmanship.
Improve Planning & Scheduling techniques; the contractor must be familiar
with the planning and scheduling method to get the proper control of the work.
Understand the critical path and able to do the corrective action when needed.
79
5.7
Suggestions for better performance
Here are some selected comments and suggestions expressed by respondent
that might help the contractors to overcome the performance of construction
dilemma:
a)
The contractors sometimes fail to identify the workers problem in
construction activity. This can be solve by the companies to maintain
their good communication with the workers, listen to their problems
and try to solve in good situation.
b)
The contractors target more on money rather than the performance.
The contractors must have an attitude to produce the good
performance rather than money, because the good performance they
shows is not the additional cost that the contractors have to pay.
c)
In case of following the specification, the contractors should control
the cost of the project and never try to get more payment by
additional work. The contractor who attempts to increase the value
of the contract and his profit through continuous claim for extras will
suffer a loss credibility.
d)
The client also should give the reasonable tender price to the
contractor to maintain the good quality of work.
e)
To solve the problems it is useful for the contractors and the client to
have a good communications and negotiations skills.
80
5.8
Summary
Quantitative judgments were employed in data analysis. Statistic was used
to analyzed the background of the respondents and Likert Scaling used to analyzed
the factors that influence the contractor’s performance, the critical factors that
influence the contractor’s performance and the strategy to improve the contractor’s
performance in order for the contractor’s and client’s to be more successful in their
project. The final result of the analysis was listed. According to the result analysis,
it shows that to select the experienced and skilled workers is the most significant
and critical factors that influence the contractors performance. Lastly, the most
frequent strategy must be undertaken by the contractor’s companies is to focus on
client needs, meet the client requirements and exceed the client expectation to get
the better work performance.
81
CHAPTER 6
CONCLUSIONS AND RECOMMENDATION
6.1
Introduction
This Chapter concludes the study by listing down the results of the analysis.
Some recommendations for the better performance of construction organization
were included. Based on the literature reviews, questionnaires distribution,
feedbacks and result analysis, the three main objectives of this project report have
been achieve.
82
6.2
Conclusions
As a conclusion, this study has identified and met the entire three objectives
that had stated earlier:
Objective 1: To identify the factors that influence the contractor’s
workmanship.
In overall the respondents agree that the first three major factors that
influence the contractors performance were to use the experience and skilled
workers; to understand the method of work; and understand the good planning and
schedule the task of work.
Objectives 2: To establish the critical factors that influence the contractor’s
workmanship.
The most critical factors were rank the factors that influence the contractor‘s
performance from 1 to 10 as follows:
1.
Use the experience and skilled workers;
2.
Understand the method of work;
3.
Good planning and scheduling technique;
4.
Understand drawings and specifications;
5.
Good communication between supervisors and workers;
6.
Understand the client needs and quality expectations;
7.
Use the quality materials;
8.
Financial competence and good management of cash flow;
9.
Competence site supervisor full time on site; and
10.
Owning machinery and equipment.
83
Objectives 3: To identify strategy to improve the contractor’s performance.
The respondent agree to select the three major factors that can influence on
the improvement on the contractor’s performance were to focus on client needs,
meet the client requirements and exceed the client expectation; the planning and
scheduling techniques; and the method of supervision of labors work.
6.2
Recommendation
In order to get the good performance of the contractors, it is recommended
by the author that the three stage which listed below can be follow:
a.
First Stage:
Pre-Contract Evaluation and Decision
To get the good performance, the client must know how to select a good
contractors, (for the contractors, he or she must know how to select a good subcontractors), from the literature review, the criteria of selected the good contractor
was highlighted by Chew (2003), he was listed seven most effective way of
selecting a contractors as follows:
1.
Tender Price, the price must be reasonable to maintain the quality of
work.
2.
Time to completion, on how realistic the submitted work
programmed can achieve the milestones in the project.
3.
Quality of product(s) to meet the specifications and by the technical
and performance.
4.
Technical and organizational competence, which is shown in their
proposed assignment of adequate and right people and the use of
84
5.
experience sub-contractors to work on the project, how the
organization of the project team reflects the understanding of the key
cause and effect relationship in the project and how the
managements approach could enhance the construction process of
the project.
6.
Financial competence, which is indicated by financial robustness
and adequacy of funds to maintain financial health for seeing the
project through or indications of the ability to deal with any
unforeseen financial impacts on the projects.
7.
Past performance, of projects of similar size, complexity and nature
that have been executed successfully.
8.
Relationship, in respect of the contractor’s ability and willingness to
sustain a quality business relationship based on pre-existing
knowledge and experience.
For this matter, the client’s can use the suggested form of the “Contractor
Selection Checklist for Pre-qualified Tender” which has been attach in Appendix C
as a criteria basis on the contractor selection.
b.
Second Stage:
During Construction
When the contract is in the construction stage, it is recommended that the
result of the analysis for the strategies to improve contractor’s performance been
developed and studied further to practice and maintain a good performance. There
are as follows:
1.
The contractors must know, understand and focus on client’s needs,
meet the client requirements and exceed the client expectation.
85
2.
Improve the method of supervision of labors work by developed a
suitable checklist on how to supervise and communicate with the
labors.
3.
Improve the knowledge in planning and scheduling technique, know
how to determine “what” is going to be done, “how,” “where,” by
“whom,” and “when.”
4.
Maintain mutually beneficial relationship with supplier to make sure
the source of materials can be achieve on target and deliver on time
to the site to prevent delay, wrong materials and out of schedule.
5.
Built up a good discussion and negotiations skills with the client to
prevent misunderstanding of client’s needs and expectations and to
solve the problems in good situation.
6.
Built
up
an
effective
site
communications
to
prevent
misunderstanding between managers, supervisors and workers, In
many cases, the communication breakdown happens because the
managers communicate in one direction only. They do not take time
to be sure that the person with whom they are communicating
actually understood the massage. Every communications, discussion
and meetings must be written up to prevent disputes.
7.
To make sure the top management give the full support for quality
assurance, because the quality assurance is refers to the management
systems employed by constructions companies to produce highquality work consistently. The quality is not been achieve without
full support from the top management of the companies. The
company should think about the quality of product rather than
money.
8.
Improve the quality control and method of checking by developed a
checking checklist refer to the specification needed.
9.
Improve the system of checking drawings and specification by
developed a suitable checklist and understand the drawings and
specifications.
86
10.
Give site training for the workers in their respective field so as to
enable them to execute their jobs responsibilities efficiently.
c.
Third Stage:
Post-Contract
When the contract is handing over, the client can evaluate the performance
that have been shown by the contractor during the construction period. It is
recommend that to use the “Contractor Performance Evaluation Form” which
attached in Appendix D to evaluate and help the client’s to made the decision
whether this contractor are still perform for the next selection of the project.
6.4
Suggestion For Further Studies
There are some area suggested by the author for further study in the area of
contractor’s performance as listed below:
1) The contractor’s performance focused on cost quality;
2) The contractor’s performance focused on time quality;
3) The contractor’s performance focused on environmental awareness;
4) The contractor’s performance focused on safety and health; and
5) The contractor’s performance focused on client’s satisfaction.
87
REFERENCES
Abd. Majid M.Z. and Ronald McCaffer, M.ASCE(1998), “Factors of Non
Excusable Delays That Influence Contractor’s Performance”, Journal of
Construction Engineering and Management, ASCE
Andrew A.L.Tan, (2004),”Why Project Fail?1001 Reason,” Venton Publishing(M)
Sdn. Bhd. Selangor DArul Ehsan, Malaysia.
Chee Hong Wong, M.ASCE(2004), “Contractor Performance Prediction Model for
The United Kingdom Construction Contractor: Study of logistic Regression
Approach”, Journal of Construction Engineering and Management, ASCE
Clifford J. Schexnayder and Richard E. Mayo,(2004), “Construction Management
Fundamentals”, International Edition 2004 Mc Graw-Hill Companies, Inc.,
1221 Avenue of the Americas, New York, NY 10020.
David I. Cleland and Lewis R. Ireland (2002) “Project Management Strategic
Design and Implementation”, International Edition 2002, Mc Graw-Hill
Companies Inc., 1221 Avenue of the Americas, New York, NY 10020.
Dimancescu,Dan,(1992),”Making Cross Functional Management Work,” The
Seamless Enterprise New York, Harper.
Fryer,B.,(1997), “The Practice of Construction Management,” Blackwell Science
88
Gareth R. Jones and Jennifer M. George(2003),”Contemporary Management,”
International Edition 2002, Mc Graw-Hill Companies Inc., 1221 Avenue of
the Americas, New York, NY 10020.”
Holt, GD, Olomolaiye, P.O., and Harris, F.C. (1994a),” Factors influencing UK
construction clients choice of contractor,” Build Environment., 29(2), 241248
James P. Lewis (2005) “The Project Manager’s Desk Reference”, Golden Books
Centre Sdn. Bhd.
Jimmie W.Hinze,(1998),”Construction Planning & Scheduling,”Prentice-Hall, Inc.
New Jersey, USA.
Juran,J.M.,(1989),”Leadership for Quality,” New York: Free Press
Lee Fui Thong and Tan Jit Han (2003), “ Project Management Skills Demand For
Engineering Graduates in Malaysia”, Buletin Jurutera, The Institutions of
Engineers Malaysia, June 2003.
Luis Fernando Alarcon and Claudio Mourgues, M.ASCE(2002), “Performance
Modeling for Contractor Selection”, Journal of Construction Engineering
and Management, ASCE
Ng., T.S., Skitmore, R.M., (1995). “ CP. DSS; Decision support system for
contractor prequalification,” Civ. Eng. Sys. 12(12), 133-159
89
R. Edward Minchin Jr and Gary R. Smith, M.ASCE(2005), “Quality-Based
Contractor Rating Model for Qualification and Bidding Purposes”, Journal
of Construction Engineering and Management, ASCE
Rue, L.W. and Byars,L.L.,(1997), “Management: Skills & Applications”, McGrawHill
Thum Peng Chew(2003), “A Fuzzy Multiple Attribute Decision-Making Approach
to Tender Evaluation”, Journal Institution of Engineers Malaysia, Vol 64
No. 3 2003.
William F. Maloney, M.ASCE(1997), “Strategic Planning for Human Resource
Management in Construction”, Journal of Construction Engineering and
Management, ASCE
Wiliam F. Maloney, M.ASCE(2002), “Construction Product/Service and Customer
Satisfaction”, Journal of Construction Engineering and Management, ASCE
Xianhai Meng, M.ASCE(2002), “Guarantees for Contractor’s Performance and
Owner’s Payment in China”, Journal of Construction Engineering and
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Construction Industry – Guide And Implementation,”McGraw-Hill Book
Co.
APPENDIX
90
APPENDIX A
Felda Plantations Office Location
Felda Plantations Sdn Bhd (232400- U)
8th Floor, Balai Felda
Jalan Gurney Satu
54000 Kuala Lumpur
Tel: 03-2692 8413
Fax: 03-2693 8871
Branches/Projects
91
APPENDIX B
Sample of Questionnaire
PENYELIDIKAN TENTANG
PRESTASI KERJA KONTRAKTOR YANG BERDAFTAR DENGAN
FELDA PLANTATIONS SDN. BHD. BAGI MELAKSANAKAN KERJA-KERJA
KEJURUTERAAN
FAKULTI KEJURUTERAAN AWAM
UNIVERSITI TEKNOLOGI MALAYSIA
OBJEKTIF:
UNTUK MENGENALPASTI PRESTASI KERJA KONTRAKTOR
YANG BERDAFTAR DENGAN
FELDA PLANTATIONS SDN. BHD.
DALAM MENJALANKAN KERJA-KERJA KEJURUTERAAN
NAMA SYARIKAT
NAMA RESPONDEN
:
:
JAWATAN DALAM SYARIKAT :
BIDANG KERJA YANG DICEBURI
:
PEMILIK / KLIEN
KONTRAKTOR
KELAS/GRED; ………
COP PENGESAHAN SYARIKAT:
DISEDIAKAN OLEH;
FAKULTI KEJURUTERAAN AWAM,
UNIVERSITI TEKNOLOGI MALAYSIA,
81310 UTM SKUDAI,
JOHOR DARUL TAKZIM
92
QUESTIONNAIRE
THE STUDY OF PERFORMANCE ON CONTRACTORS REGISTERED WITH
FELDA PLANTATIONS SDN. BHD.
Dear Sir/Madam,
I am a final year student in Masters of Science (Construction Management) from Faculty
of Civil Engineering, Universiti Teknologi Malaysia (UTM). Due to the requirements of
my course, I would be conducting a survey to obtain some data that are relevant to this
research. Therefore I would appreciate very much if you would kindly participate by
being one of my respondents to help me in my research. You can be rest assured that
ALL THE INFORMATION IN THIS SURVEY WILL BE STRICTLY
CONFIDENTIAL. Lastly but not least, I would like to take this opportunity to thank
you for your valuable and kind support.
Again, thank you.
RAMZI BIN IBRAHIM
MAKLUMAT UMUM SYARIKAT KONTRAKTOR
1. Pada dasarnya berapakah bilangan pekerja sepenuh masa di syarikat Tuan?
( Sekiranya tiada nyatakan tiada )
93
1-5 orang
11- 20 orang
16-10 0rang
Lebih dari 20 orang
2. Berapa lamakan syarikat Tuan menjalankan perniagaan ini?
1 – 5 Tahun
11-20 Tahun
6-10 Tahun
Lebih dari 20 Tahun
3. Apakah kelulusan Tuan sebagai peneraju syarikat?
Ijazah, nyatakan
Sijil, nyatakan
Diploma, nyatakan
Lain-lain, nyatakan
4. Berapa ramaikah kakitangan syarikat yang memiliki kelulusan?
Ijazah, ______ orang
Sijil, ______ orang
Diploma, ______ orang
Lain-lain, nyatakan
5. Berapakah modal berbayar / sebenar yang syarikat Tuan miliki?
Bawah RM 100,000
RM200,000 – RM500,000
RM 100,000 – RM 200,000
RM 500,000 Ke atas
6. Kelas Pendaftaran PKK dan CIDB
a.
PKK, Kelas ____________
b.
CIDB, Gred __________
SENARAI SOALAN ( QUESTIONNAIRE )
BAHAGIAN 1
Bertujuan mengenalpasti faktor yang mempengaruhi mutu kerja (workmanship) kontraktor;
94
1
Amat Tidak Setuju
2
Tidak Setuju
3
Tidak Pasti
4
Setuju
5
Amat Setuju
a. Merancang dan menjadualkan kerja dengan baik ( Good Planning & Scheduling )
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
b. Mempunyai pekerja mahir dan berpengalaman
c. Faham carakerja ( method of work );
d. Komunikasi yang berkesan antara penyelia tapak dan pekerja
e. Menggunakan bahan yang bermutu yang ditetapkan oleh spesifikasi;
f. Memahami spesifikasi dan lukisan kerja
g. Mempunyai penyelia projek yang berkelayakan sepenuh masa di tapak
h. Faham kehendak pelanggan dan tahap kualiti yang diperlukan oleh pelanggan
i. Berkemampuan dari segi kewangan dan merancang aliran kewangan
j. Mempunyai mesin/peralatan sendiri
Lain-Lain Cadangan;
BAHAGIAN 2
Bertujuan mengenalpasti faktor kritikal yang mempengaruhi mutu kerja kontraktor;
Apakah faktor kritikal yang mempengaruhi mutu kerja kontraktor ?
95
Sila senaraikan / nomborkan mengikut susunan (ranking) bermula dari 1 hingga 10 di mana susunan
bermula dari paling kritikan ( 1 ) hingga kurang kritikal ( 10 )
a.
Merancang dan menjadualkan kerja dengan baik ( Good Planning & Scheduling )
b.
Mempunyai pekerja mahir dan berpengalaman
c.
Faham carakerja ( method of work );
d.
Komunikasi yang berkesan antara penyelia tapak dan pekerja
e.
Menggunakan bahan yang bermutu yang ditetapkan oleh spesifikasi;
f.
Memahami spesifikasi dan lukisan kerja
g.
Mempunyai penyelia projek yang berkelayakan sepenuh masa di tapak
h.
Faham kehendak pelanggan dan tahap kualiti yang diperlukan oleh pelanggan
i.
Berkemampuan dari segi kewangan dan merancang aliran kewangan
j.
Mempunyai mesin/peralatan sendiri
Lain-Lain Cadangan;
BAHAGIAN 3
Mengenalpasti cara atau kaedah untuk meningkatkan prestasi kerja kontraktor, terutamanya terhadap mutu
kerja.
96
Apakah cara yang sesuai untuk meningkatkan mutu kerja kontraktor ?
1
Amat Tidak Setuju
a.
b.
c.
d.
2
Tidak Setuju
3
Tidak Pasti
4
Setuju
5
Amat Setuju
Mengadakan latihan di tapak kerja ( Site Training )
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
Memahami Kaedah Memeriksa Lukisan dan penentuan dengan berkesan
( Improve the system of checking the drawings and specification)
Meningkatkan pengetahuan dalam merancang dan menjadualkan kerja
( Improve Planning & Scheduling Techniques )
Menyelia dan memantau kerja-kerja yang dilakukan oleh pekerja ( Supervision of labours’ work )
1
2
3
4
5
e.
Meningkatkan Kaedah pengurusan kualiti yang baik (Quality Assurance) dimana syarikat
kontraktor mengamalkan corak pengurusan kualiti yang baik bermula di peringkat atasan.
1 2 3 4 5
f.
Meningkatkan komunikasi yang berkesan di tapakbina ( Site communication, production meeting
& minutes )
1 2 3 4 5
g.
Meningkatkan kaedah pemeriksaan yang berkesan terhadap kerja-kerja pembinaan
( Quality Control & Checking )
1 2
3
4
5
Meningkatkan kaedah perbincangan dan perundingan yang baik dengan pelanggan
( Good discussion and negotiating skills with client )
1 2
3
4
5
h.
i.
Meningkatkan hubungan baik dengan pembekal ( maintain a mutually beneficial relationship with
supplier )
1 2 3 4 5
j.
Fokus kepada kehendak pelanggan dan memahami kehendak pelanggan (understand customer
needs, meets the customer requirements and exceed customer expectation )
1 2 3 4 5
Lain-Lain Cadangan;
Terima Kasih di atas kerjasama anda.
97
APPENDIX C
Sample of Contractor Selection Checklist
CONTRACTOR SELECTION CHECKLIST FOR PRE-QUALIFIED TENDER
IN FELDA PLANTATIONS SDN. BHD.
Proposed Contractor
For Tender
:
:
A.
COMPANY INFORMATION:
1.
Company registration with Company Commission of Malaysia (SSM);
Private Limited Company
Sole Proprietor/Partnership/Enterprise/Trading
Company Status;
Valid
2.
Invalid ;……………….
Registration with Felda Plantations Sdn. Bhd.;
Registration Number ;……………………
Valid
3.
Invalid ;……………….
Construction Industry Development Board (CIDB) Registration;
Grade ; …………….; Expire Date; ……………………
Relevant Category with this Job; ………………………
4.
Registration Pusat Khidmat Kontraktor (PKK) Registration;
Class ; …………….; Expire Date; …….………………
Relevant Sub-Head with this Job;
Head; ………….. Sub-Head;…………….
5.
Financial Competency;
Credit Facility relevant to the Class of PKK and CIDB
( Attach letter of facility from Bank if any)
Three months average cash-flow from bank statement
( 30% From tender price )
98
6.
Past Performance;
In 3 years time of similar size of project, complexity
( Attach letter offer/from FPSB record )
Time of completion of the project stated above
Quality of final product of the project stated above
Good
Average Poor
7.
Current Job’s in hand ( not more than three (3) jobs in one time;
With FPSB;……………..jobs
Outside;…………….jobs
8.
Technical & Organizational Competence;
Director’s Qualification; ……………………….
Manager’s Qualification; ………………………
Technical Staff; …………person.
List of Workers; …………person
List of Sub-Contractors
9.
Resources;
List of Machineries
Construction Materials credit facilities
10.
Relationship
Past Project meeting attendance
Good Communication
Good Self Attitude
99
B.
RECOMMENDATION
Perform to select this contractor
Waiting List
Reject
Cause of Rejection;
…………………………………………………………………………………
…………………………………………………………………………………
C.
DECLARATION
On behalf on my professional ethic Clause 5.0 “Code of professional Conduct” – A Registered Engineer
shall conduct himself honorably, responsibility, ethically and lawfully so as to enhance the honor,
reputation and usefulness of the profession. I declare the above statement are correct;
APPENDIX D
Sample of Evaluation Report on Contractor Performance
EVALUATION REPORT
ON
CONTRACTOR PERFORMANCE
TECHNICAL SERVICES DEPARTMENT
FELDA PLANTATIONS SDN. BHD.
8TH. FLOOR BALAI FELDA
JALAN GURNEY 1
54000 KUALA LUMPUR
TEL: 03 26928413 FAX: 03 2693 8871
USER
:
100
SOURCE SELECTION INFORMATION
NOT FOR PUBLIC RELEASE
CONTRACT NO
:
ADDRESS :
CONTRACTOR
:
CITY/STATE ;
CONTRACT PERIOD :
WORK LOCATION
:
CONTRACT TITLE AND DESCRIPTION:
OTHER DESCRIPTION :
INSTRUCTIONS
If you have excel, this form may be filled in on the computer or a blank form can be printed and filled in by hand.
Check the box that best describes the level in which the Contractor supported the area described. Comments are helpful and substantiate
either very high or very low ratings. If additional space is needed, use page 2 of the form or attach additional page(s). N/A means not applicable.
A copy of this report may be used in future evaluations of the Contractor's past performance and is provided to the Contractor
(without your identify)
1. Was the Contractor capable, efficient and effective in supporting of this contract
Support Provided was
very inefficient, not
N/A
1
2
3
4
effective, not capable
5
6
7
Support provided was
extremely capable
efficient and effective
6
7
Performance conformed
to contract terms and
conditions
Comments
2. Did the Contractor's performance conform to the terms and conditions of the contract
Performance did not
conform to contract
N/A
1
2
3
4
5
terms and conditions
Comments
3. Were the Contractor and on-site representatives professional, reasonable and cooperative during performance
Not professional, not
reasonable, and
N/A
1
2
3
4
5
6
7
not cooperative
Comments
Very professional,
very reasonable, and
very cooperative
101
4. Were the Contractor and on-site representatives commited to customer satisfaction
Not commited to
customer
N/A
1
2
3
4
satisfaction
5
6
7
Very commited to
customer
satisfaction
7
Extremely safety
oriented and actions
demonstrated same
7
Definitely yes
Comments
5. Contractor and on-site representatives attitude and efforts, as well as actual application, towards site safety
Safety compromises
in both orientation
N/A
1
2
3
4
5
6
and actions
Comments
6. If given the opportunity, would you hire this Contractor again to accomplish a similar project
Definitely not
N/A
1
2
3
4
5
6
Comments
Additional comments to support your response to any item above or other item ( include additional page if needed )
Name and Title of Individual
Completing this Form
Signature :
:
Telephone Number
:
Date
: