Hi iwubpreve, can you explain to me regarding the deposits/bonds involved in a tender process?

- Tender deposit
- Tender documentation fee
- Tender bond
- Performance bond

What are the differences? For simplicity's sake, say we have Contractor A (successful) and Contractor B (failed) to submit for tender.

Who will submit which of the above to who (client, architect or QS?) , at what stage respectively?

Which of these payments do we have to return to each contractor respectively, and when?

Over the course of the construction, does any of these payments get cashed?

This post has been edited by 2387581: Dec 8 2016, 03:42 PM

Time saving for consultants to review and revert to contractors, capture reality, accuracy, prevent conflict, reduce reworks in times of changes


Check with the land office. Under the National Land Code, only land under 'agriculture' categgory can cultivate corps, plus can build a dwelling house occupying less than 1/5 of the total area. If it is under 'building' category then can have the building. If the neighbouring lots are bunglows, then it is likely that the remaining lands are under the 'building' category. Usually an owner would want the biggest real estate possible, so it is likely that it will be built to the set-back line. This will leave little space for planting, which you may grow corps.

These are security fencing, but not really secured because a wire cutter can easily cut them. Then there is a anti-cut and anti-climb fencing, which is basically the same thing with lots more wire so the fingers and cutters cannot fit into the gaps, and of course much more expensive. In your case, just normal chain-link or chicken wire will suffice.

You have two options
1. wait until it is finish, and if they are unable to deliver vacant possession on the date after 36 months after you signed your SPA, you can claim liquidated damages (LD) per day at 10% per annum of the purchase price, until you take vacant possession

2. pursuant to section 8A of Housing Development Act, you may terminate your S&P and get full refund of all payments made (you may need to prove the construction site stopped work for 6 months)

Typically it is CAR (Contractor's All Risk) insurance which is a comprehensive coverage for all personnel. If you are contractor and is buying, ask the insurance agent, and also refer to PAM Contract 2006.

For most projects, the floor finishes (and other finishes) is minimum to comply to statutory requirements, as per approved Building Plan. This allows the developer to commit the minimum. If it is an upgrade, usually the buyer will not dispute that it is not in accordance to S&P Agreement (Remember S&P Agreement ties to the approved Building Plan, so in your S&P it is always the minimum, like homogeneous tiles, plaster & paint and so on). This is also to allow for purchaser to renovate, you don't want to pay a hefty amount to buy a condo unit with slate tiles on it only to hack it later to change to marble to suit your preferences.

So, it goes like
1. Architect specify (example of the specification is like "600 x 600 x 12mm THK NXRO GRANITE 'YXRA' HOMOGENEOUS TILES MATTE OR EQUIVALENT TO ARCHITECT'S APPROVAL")
2. ding dong ding dong
3. Client approves (by signing on the Building Plan submission)
4. Submission approved
5. Tender - once tender is awarded, the cost is fixed, unless client want to change, then there will be VO.
6. Contractor counter propose (showing sample, all certificates including CIDB, SIRIM, BOMBA, ISO, etc etc) - this is where the contractor makes money from price difference. - That's why the last part 'or equivalent to architect's approval' in the architect's specification
7. Architect & client approves or reject (ding dong ding dong) - Ultimately Architect is the one who signs and confirm, with client's consent

Unless you are a special purchaser, like you committed to buy a penthouse unit which is special designed to your preference, this usually the purchaser do not involved in a project's design and construction. Because you only buy the product.

They simply hide it. Or put it in the top level and cover up nicely, locked to other people access. Usually 3-tier tanks. Pump is to draw water up to the storage tank. Usually every 70m height (about 20 storeys) need to have a stage pump+tank because not enough power to push higher.

This post has been edited by 2387581: Sep 4 2017, 02:38 PM

Interesting, but since she is not the submitting person (as in the person who put signature and stamp on drawing for submission) she has no liability. If she misses things but the submitting person (usually boss who has the Ir.) didn't check by him/herself and submit, and eventually it fucks up big time, it is the submitting person's responsibility. She can just shrug and move on to other places doing something out of her expertise.

From your description she came from an accounting background, and no matter in what firms, she is still doing her accounting stuffs...I would be amazed if she changed from accounting to obtaining a civil engineering degree, and pursue her PE (Ir. from BEM)

From an architect's perspective.

This post has been edited by 2387581: Oct 9 2017, 01:17 PM

For data and statistics best you consult the local authorities/majlis respectively. What is your purpose with that info?

The costs to apply for building plan approval varies, what type of development you are doing? For building plan it is based on floor area involved for new construction and renovation. Additional deposits and payments applicable for
- demolition
- construction waste disposal (PPSPPA)
- compound (fine for built before building plan approval, usually 10x the normal fee)

Other fees related to statutory requirement involve fees for application on land matters, planning approval, engineering plan submission fees (road and drainage, structural), contribution to build traffic light, upgrade existing sewerage treatment plant, TNB, SYABAS, SPAN etc etc.

consultant - design, submission, on-site coordination, supervise, endorsement, issue instructions
developer - review and confirm design
contractor - on-site coordination, testing, rectification

Perhaps you can check out Architect Centre for their services...not sure if they do have service Melaka though

Don't think, look for the relevant regulations. According to National Land Code 1965, yes you can build.
Developer, on the other hand is bound by Housing Development Act, for any construction of more than 4 units of residential unit meant for selling.
Building only 20% of the entire plot or maximum 43,000 sf for a developer is hardly a profitable venture, assuming compliance to National Land Code.

http://www.kptg.gov.my/sites/default/files...IGITAL-VER1.pdf

Are you doing subdivision or partition?
When you do subdivision, a piece of land held under 1 title by 1 or more owners is separated into 2 or more pieces held under separate titles by the same original owners.
When you do partition, a piece of land held under 1 title by 2 or more owners is separated into 2 or more pieces held under separate titles by each owners proportionate to their share under the original title.

When you do either, you need to clearly demarcate on site plan the extend of the site boundary after the subdivision/partition. Then from that point on, will need to allow setback from boundary before deciding where to put your house.

Fees wise, 50k is consider very low, good luck on finding someone/a team to do all the works over 2 years or so and assuming lifetime liability. This is just not profitable for any architect and designer. That being said, probably there are people willing to do that. For works under 500k, the cheapest would be 10% from cost for architect. Then there are engineers too.

Since this is your own construction, there will be no down payment, but probably your bank which you take loan from might require you to deposit a certain % with them before granting you the loan.

Payment to contractor is based on architect's certificate for valuation of works done on site, and similarly they will need to deposit retention fund and performance bond with you upon award of project.

This post has been edited by 2387581: Dec 29 2017, 02:51 PM

Usually the more experienced an architect is, he can command even higher fees. The 10% I mentioned was the minimum any architect charge for jobs worth RM500k below. You can do the choosing and use a template plan, design works is a very small part of the scope of work an architect do. Too much to list here so for more information, you can refer to the Architects Act 1967 (can be downloaded here). You'll be surprise how much work and how underpaid architects are in relation to all responsibilities they bear. Similar to a litigation lawyer, can you say because he has many winning court cases, so he has 0 lawyer work to do, and the fee be say RM200?

Yes, theoretically correct. If this is financially feasible why we do not see developers carry their business in this way?

Architects, at least in Malaysia, is responsible for the building which the plans he put signature on it. No matter how similar it is there are things you will need to adjust, review, recalculate. The plans which you submitted and approved by one local authority may not be approved by another authority. Similarly, with the ever-changing and updating acts and by-laws, the plans which you submitted 2 years ago may not be qualified for approval under current regulations.

The plans submitted for approval will typically be just enough to comply with all the legal requirements. So the information inside is very limited. The architect will then need to prepare a set of detailed construction/tender drawing to allow the quantities of building materials and cost of construction. He will specify each components of building materials in the construction drawing. Then an architect, or assisted by a quantity surveyor, will prepare the bill of quantities. The architect will need to study and understand each and every piece of building materials, how they function, look, feel, cost, whether they are certified by the CIDB/ISO/SIRIM/Bomba etc, as well as any new technologies applicable to make construction possible or faster.

When the bill of quantities is ready, the potential contractor will tender for the projects. Cost is important but not all, so the architect will have to evaluate which contractor is the best fit for the job, ensuring the contractor has good reputation, mobility, cash flow, etc to sustain the project over the contract period. So most of the time the job will not be awarded to the lowest bidder, because the architect understand the market to know that "the bitterness of poor quality remains long after the sweetness of low price is forgotten", the architect will avoid this kind of shoddy contractors.

Once the project is awarded, the architect, usually with the assist of a QS, will prepare the documents required for contract binding, and although the building contract is between the owner and contractor, the architect plays an important role in the contract. The architect is the qualified person to administer the contract, issuing instruction, inspect the site and construction progress, ensuring the contractors is not cutting corners and building not according to the plans. The architect will based on the valuation of construction work done, issue to the owner a certificate of payment, telling the owner to pay such amount due to the contractor on a monthly basis. Inevitably, there are details which may not been fully resolved, so intermittently the architect will supply the contractor with additional information if and when required. And the contractor, for them to earn a even higher profit, will always counter-propose alternative building materials or methods, the architect has to go over each and every one and decides whether to approve or reject, subject to owner's decision. Also, owner being owner, they have the mindset of being the paymaster, it is very likely that they will have a change of mind anytime during the construction period. Maybe suddenly he wants to add another couple of rooms, maybe he wants to change the brick wall to glass wall. Capturing these information and properly documenting them is a time-consuming process.

When construction is finally done, the architect will inspect the building to identify any defects or deficiencies in workmanship, and instructing the contractor to rectify as such. When the architect is satisfied that the building has been constructed according to to approved plan, and safe and fit for its intended purposes, the architect will issue a certificate of completion and compliance (CCC) to the owner, with copies sent to the local authority and Lembaga Arkitek Malaysia. This certificate is basically a lifetime guarantee of the safety of the building. The architect will be liable and can be sued, if down the road, the building is defective as a result of design deficiencies (for example, he specified/approved a building material which does not prevent water leakage from the window; or another example, the metal staircase railing caught your young child's head and caused bodily injury; etc etc).

The scope of work for an architect is the longest and broadest in the construction industry. Your architect is there from the very beginning until the very end; it is not just put signature and stamp.

At the outset the discussion was about building a new house, now suddenly it become renovation. A sensible architect will not leave everything up to the contractor, because you see, the architect is the one person who will be responsible on the buildings which the plans he put signature on. If for some reason, the contractor decided to change the foundation to tin kosong, or use inferior rebars, which eventually caused the building to collapse and hurt the occupants, apart from the fact that the contractor is liable, the architect (or engineer) is also liable for failure to supervise the project which he submitted. The liability I'm saying here is suspension or revoke of license (or practicing certificate), hefty fine or serious cases may involve jail time.

Daylight robbery or not is subject to agreement. If you think an architect is expensive then there is no deal. Simple as that. If you can find RM200 architects then there's no problem with me. I doubt any architect is willing to charge such low fee when charging low fee is actually an offense under the Architects Act 1967 and Architects (Scale of Minimum Fees) Rules 2010, where the penalty outweighs the low fee.

Now many contractors offer design and build, including contractors who do renovation and includes submission of plan for approval. Whether you like it or not, you will still need an architect's services in plan submission and issuing certificates. However, because the contractor quoted the owner a lump sum which includes the architect's fee, most owners do not see how much the professional fee is. Chances are that the contractors payment encompassing everything is so inflated that it is more expensive than engaging an architect and contractor separately, because the architect is working for the interest of contractor more than the owner's interest in this case. Most of the time you see the contractors are richer than the architect, so you can go figure who is actually doing daylight robbery.

On payment parts, it is entirely up to the owner and contractor whether they want to use a building contract, or only verbal agreement which is easily subject to dispute. That is also why you see so many upset homeowners complaining about shoddy contractors in the reno & ID forum. If the owner choose not to use a building contract, and prefers to deal with contractor directly, then yes, the architect is not responsible as a stakeholder in payment disputes. However, he is still legally obliged to ensure the construction works is done according to the approved plans.

On the other hand, since you suddenly drift into the renovation like kitchen extension or widen porch, most local authority in KV has a template plan (not for DBKL). These template plan do not require architect input or endorsement. You can just go to the building department of the respective Majlis and ask for it, pay a fee, and get your permit along with payment for a roro bin, then you can start work. Every other plans which require the architect's input, is bespoke works.

If you have engaged an architect, for sure he will have a letter of acceptance outlining his scope, fees, payment, etc. Check if the agreement includes regular site visits or not. You can choose to use the architect's services for project management and regular inspection, or you want to supervise yourself if you are capable of doing so. Even if the architect is not engaged to do this, he should have a final inspection after work is done before CCC is issued.

Talk to the architect and make sure the services including up to the issuance of CCC. Because issuance of CCC means the architect certify that the building has been done according to the plans. The CCC has to come with 21 forms known as Form G1-G21, and depending on the scope of construction, some may apply some may not. Some of the forms require the contractor to sign, so ensure you engage a contractor with CIDB license. Ask them to furnish you a copy of their license before engaging them.

If you look at the internet, there are people selling some template plans. You may even no need to buy because there are books, magazine, websites etc where architects publish their works, including photographs and plans. But whether or not the design suits to your own needs is another story. Note that the services provided by the architect is not merely design. So the value substance of an architect's service is much more than drawing plans. If you are not prepared to afford the services of an architect to design your house for you, it is more cost efficient to just buy a ready-made house to suit your taste. Trust me, it is much less hassle than having to manage a team of consultant and contractor.

Let me use an analogy of a suit. You can shop in any departmental store or clothing shops for your suit - they are still designed by someone, made using a fixed template, but even the best ready-made clothing from big brands like Hugo Boss or Armani may look perfect on a model or mannequin, but they may not fit the buyer best. A local tailor may made the suit to your size ensuring best fit.

Truth is, most people who do renovation doesn't actually need the service of an architect, unless it is a major one or complete remodel which require the design expertise of an architect. The only reason they have an architect in the picture is because the law authority says so. So if you do not know how to supervise project, it is wise to find someone who does. The architect's drawing typically does not include these information, and most architect wouldn't know because these are expertise of the engineer. Spend some time and read the Reno/ID forum and you can learn a lot, and it may be obvious, but reading the product manuals reveals a lot of things. Google is also at your disposal. Usually reno is only inspection by eye and by touch, and you should be arranging with the contractor. You can be visiting any time because it is your right.

250-300 psf excluding furnishing for a nice detached house in KL/Selangor.

Yes the house looks minimal but it has to suit the family living in it. But not to my personal liking. It doesn't look very well thought-out. Things looked very big and give a sense of blunt. But I haven't see the plans and seen the inside, which may change my view.

Sometimes, where we want to make things look simple and minimal, it will involve a lot of non-standard details, which may or may not escalate the construction costs. Some people may not feel like 'home' when you have a box like this; on the other hand, some people hate the tropical pitched roof and prefer flat roof (a box).

For detached houses I design for my clients, if they have no preference at first I always design for the climate (pitched roof, deep verandah, louvres, cross ventilation, etc.) and then refine from there. Some liked it, some don't. Just the way of life.

This post has been edited by 2387581: Jan 25 2018, 12:33 AM

You see that cantilever? It is quite substantial, and therefore may be a little bit expensive. You can have very small but very nicely designed and finishes at a high price; also you can have a very large dull box at a cheap price. There are so many different approaches to it, ultimately depending on what you can afford and what you want.