The Malaysian economy during the 1st Quarter of 2009. Keywords: construction, contraction, economy, investment

Salam and dear all, The Bank Negara Malaysia has released its first quarterly report on the state of the Malaysian economy. Briefly: 1. The economy, during the 1st Quarter of 2009, contracted by 6.2% (4th Q 2008: +0.1%), 2. Fixed investment declined due to weaker business sentiment. GFCF declined by 10.8% (4th Q 2008: -10.2%), 3. Public sector spending supported growth, 4. Sectoral reports: a) manufacturing declined by 17.6% (4th Q 2008: -8.8%) b) agriculture ditto by 4.3% (ditto: 0.5%) c) mining ditto 5.2% (ditto -5.7%) d) construction positive growth of 0.6% (ditto -1.6%) [increase in office space and high end housing) 5. Inflation (CPI) at 3.7% (4th Q 2008: 5.9%), 6. Average base lending rate of commercial banks 5.53% (end of Dec 2008: 6.48%). The above were taken from the Bank Negara Malaysia's Quarterly Bulletin, First Quarter 2009. For the full report visit http://www.bnm.gov.my/files/publication/qb/2009/Q1/p1.pdf (copy-paste this address). Wassalam.

On Islamic funding. Keywords: ethics, finance, gharar, interest free, risk

Salam and dear all, This piece of news is taken from Property NST at http://properties.btimes.com.my/ on 26th May 2009: If only they had followed Islamic principles ... By Roziana Hamsawi (13/4/2009) 'The calls for moral and values in financial markets by top world leaders are proof that Islamic finance could assume a role in the global financial system. These demand were made by Britain's Gordon Brown and Australia's Kevin Rudd, at the recent meeting of the world's top 20 countries in London. "Islamic finance is all about moral spiritual values. It is all about equity in commercial transaction. The whole basis of Islam itself is one should not be concerned solely in one's own but also seek the advancement of ummah (Muslim community)," academician Mervyn K. Lewis said in an interview in Kuala Lumpur recently. Islamic finance is not just about being interest-free but it prohibits gharar or uncertainty, gambling and only allows halal investment activities. "Very importantly is the religious supervision provided by the syariah board of the respective financial institutions," he said. If the West does not want to adopt Islamic banking directly, it could "copy and replicate the Islamic principles," he said. Lewis is in Malaysia under the Securities Commission and University Malaya Islamic Finance collaboration. He is first visiting scholar to be attached to UM for a month. The SC will also host a public lecture by Lewis this Thursday entitled "An Islamic Economic Perspective on the Global Financial Crisis." "I will look at the western financial institutions and ask, had they followed the Islamic principles where activities are governed by a board of religious scholars, how would things be different." In the West, there are ethical investment funds which are based on certain aspects of a religion. There are also funds guided by the environment and sustainability principles. "There is no ethical banking. There are not too many banks that do not invest in alcohol or gaming activities. There is no ethical insurance companies... etcetera," he said. The potential for Islamic finance is tremendous but Lewis conceded this will take time as the area is still a mystery to most people in the West. Even in Malaysia, which has the best regulated Islamic finance sector in the world, Islamic loans make up only 15 per cent of the total market. "The target of 20 per cent by 2010, I believe is going to be undershot," he said, referring to the target set by the government. But Kuala Lumpur has the chance to lead the industry due to the huge Muslim population in the region. Indonesia has 180 million Muslims, China has around 100 million, while Thailand has 7 million. Lewis does not specifically teach Islamic finance at his university. His interest came about back in 1994 when he had to mentor a post-graduate student from the Middle East working on Islamic finance at the University of Nottingham. In 2001, the paper was turned into a book that touched on governance in Islamic finance.' Wassalam.

On the processes of tendering. Keywords: bid, contractor, design & build, pre-qualification, tender

Salam and dear all, This piece of news is taken from Property NST at http://properties.btimes.com.my/ on 26th May 2009: Ibsul gets embassy job abroad By Sharen Kaur (9/5/2009) 'Ibsul, controlled by Datuk Ahmad Shafee Sabaruddin, will build the Malaysian embassy building and residences in Islamabad, sources say A privately-held company has beaten much bigger rivals to a multi-million-ringgit contract to build the Malaysian embassy building and residences in Islamabad, Pakistan, sources said. The Public Works Department (PWD) awarded the design-and-build deal to Ibsul Holdings Sdn Bhd, a company controlled by Datuk Ahmad Shafee Sabaruddin, last month. Five companies were pre-qualified by the PWD to make a bid in June last year, endorsed by the Ministry of Finance Inc. Among the bidders were Malaysia's second largest builder, IJM Corp Bhd; construction firm Ahmad Zaki Resources Bhd; Bina Puri Holdings Bhd, a company linked to businessman Tan Sri Syed Mokhtar Al-Bukhary; Nam Fatt Corp Bhd, a construction group; and the Shah Alam, Selangor-based Ibsul. Little-known Ibsul, incorporated on September 17 1984, is a wholly-owned Bumiputera company involved in construction and public works. PWD officials, who spoke on condition of anonymity, told Business Times that Ibsul had made the lowest offer. Another source said that Ibsul had submitted a bid for around RM90 million, or some 10 per cent lower than the amount budgeted by the PWD. The source also said that Ibsul subsequently submitted another bid for RM68 million after the closing of the tender upon the PWD's request. "PWD accepted the second proposal and favoured the company as it said it could do the job at half the price of its rivals'," the source said. Ibsul general manager M.A. Zaaba Yusof declined comment when contacted. It is understood that Ahmad Zaki had submitted the highest bid at RM130 million to RM150 million. IJM had bid around RM120 million, while Nam Fatt and Bina Puri had submitted bids of around RM100 million to RM120 million.' Wassalam.

Malaysia Property Trends Survey

Salam and dear all, This piece of news is taken from Property NST at http://properties.btimes.com.my/ on 26th May 2009: 'PROPERTY buyers are still keen to invest in the local market, with more than half expecting prices to rise by more than 10 per cent in the next six to 18 months, said a survey. The iProperty.com Group, Asia's leading network of property portals, announced the results of its online Asia Property Trends Survey 2008 last week. The survey tracks the buying habits and trends of about 2,000 local and overseas property buyers who visited iProperty.com and Malaysian website, www.iProperty.com.my. The survey was conducted online from August 1 to 31. "In recent times, Malaysia has proven to be an attractive place to invest in property. iProperty.com as a group has been a primary observer of this trend, and it looks no different this year based on the feedback and results we have collated." "As property values continue their consistent rise, Malaysians and those who have an interest in local property have again shown that a healthy demand still exists in this country," iProperty.com group executive chairman Patrick Grove said in a statement released yesterday. While 50 per cent of the respondents revealed that they have bought at least one property over the last 24 months, a whopping 89 per cent of them intend to buy property within the next 12 months. Some 57 per cent of respondents say buying property remains a solid and safe investment, while 52 per cent believe they could generate passive rental income from their purchases. While most of the respondents' main motivation for purchase is for their own stay, around 47 per cent of respondents are looking to buy purely for investment purposes. The survey also found that landed property remains the apparent favourite of buyers with 63 per cent keen on readymade or completed landed property while 48 per cent were set on ready-made or completed condominiums and newly-launched or uncompleted landed property. The results show that 59 per cent of respondents used the Internet as the first medium they turn to when initiating their property hunt. While over 60 per cent said it is the number one source they rely on for updates on available property.' Wassalam.

Quantity Surveying: future career development

Salam and dear all, 1. Technologies especially IT have advanced at an un-precedented phase thus allowing quantity surveyors to achieve higher levels of efficiency and effectiveness in delivering services to their clients. 2. Quantity Surveyors, on par with their counterparts in the construction industry, are now using IT in measurement and documentations, in cost planning and cost control and in procurement and contract administration of construction works. 3. Consequently, more quantity surveyors are sought by employers to manage projects beyond the traditional boundaries of construction works. For example, Malaysian trained quantity surveyors (including those graduated from IIUM) are now working on a wider variety of projects such as sea and air ports, highways, plant and petro-chemical facilities, etc and as senior academics at home and overseas. In Europe quantity surveyors are moving towards commercial management and project management. 4. Experienced quantity surveyors are being entrusted to manage whole construction projects on behalf of their clients: from inception to completion and into post-completion activities including maintenance especially for projects procured under the PPP / PFI procurement routes. 5. Future growth related to the quantity surveying profession includes value management, facilities management, construction law and dispute resolutions. Wassalam.

Programme structure and course contents of a typical B.QS programme

Salam and dear all, 1. Total workload of a typical and accredited degree in quantity surveying programme in any of the Malaysian institutions of higher learning must meet the minimum requirement of not less than 120 credit hours. 2. Generally 1 credit comprises of a minimum of 1 direct contact hour with an instructor/lecturer per week plus a further and appropriate minimum hours of a student's own study time during the duration of a typical 14 weeks semester system. 3. The following are the key courses normally offered under a typical B.QS programme:

• measurement and documentation - 'taking-off' quantities and preparing tender and contract documents for construction works,
• estimating, costing, cost planning and cost control of construction works,
• procurement and contract administration,
• technology - construction of building and civil engineering works, services, IT,
• economics, management and law - construction economics, project management, value management, construction business, professional practice, construction law,
• degree research project leading to an undergraduate dissertation,
• industrial placement of at least 1 semester,
• other university required courses.

4. Assessment comprises of a combination of assessed course-works and end of semester examination. Wassalam. Special note to this posting: For more information on the B.QS (Hons) programme at IIUM visit http://www.iiu.edu.my/kaed and/or refer to Khairuddin Abdul Rashid, Ed. (2003). Quantity Surveying: A New Paradigm. Kuala Lumpur: Pearson-Prentice Hall. Measurement and documentations and procurement are among the core courses of a typical B.QS programme. For more information on these courses refer to Ahamad Abdullah and Khairuddin Abdul Rashid (2004). Pengukuran Kuantiti Bangunan (Measurement of Building Works), 2nd Edition. Kuala Lumpur: Pearson-Prentice Hall and Khairuddin Abdul Rashid (2003). Construction Procurement in Malaysia. Processes and Systems, Constraints and Strategies. Kuala Lumpur: IIUM, respectively.

Training to become a Quantity Surveyor

Salam and dear all, 1. The general entry requirement into an accredited undergraduate degree in quantity surveying programme in any of the Malaysian institutions of higher learning is the Sijil Tinggi Persekolahan Malaysia (STPM) or its equivalent (e.g. the various matriculation programmes, etc). The duration of a degree programme is 4 years (depending on the institution). 2. Holders of the Sijil Pelajaran Malaysia (SPM) may enroll into a diploma in quantity surveying / allied programmes and thereafter apply for admission into a degree in quantity surveying programme (usually with credits transfer). The duration of a diploma programme is 3 years. 3. Students must enroll into a degree in quantity surveying programme accredited by the Board of Quantity Surveyors Malaysia (BQSM). In assessing and granting accreditation BQSM works with other government agencies (MQA, MOHE, PSD, etc). 4. Alternatively, students may enroll into a degree in quantity surveying programme in other countries or read and pass the Institution of Surveyors Malaysia professional examinations (http://www.ism.org.my). 5. Upon graduation with an accredited degree, an individual may apply to BQSM to be a Registered Graduate Quantity Surveyor. Subsequently, he/she must seek post-graduation training experience of at least two years (to be approved by the Board) before he/she is eligible to apply to BQSM to be a Registered Quantity Surveyor. 6. Thereafter, the individual must meet the Board's annual continuing professional development requirements or CPD in order to maintain his/her status as a Registered Quantity Surveyor. 7. In Malaysia, only Registered Quantity Surveyors can provide professional quantity surveying services and charge professional fees (Act 487 of 1967). 8. BQSM maintains and publishes a list of accredited institutions of higher learning both in Malaysia and overseas. The list is periodically updated (visit http://www.bqsm.gov.my). 9. For an example of an accredited degree programme in quantity surveying refer to the B.QS (Honours) programme at the International Islamic University Malaysia (http://www.iiu.edu.my/kaed). Wassalam. References http://www.bqsm.gov.my http://www.ism.org.my http://www.iiu.edu.my/kaed Khairuddin Abdul Rashid, Ed. (2003). Quantity Surveying: A New Paradigm. Kuala Lumpur: Pearson-Prentice Hall. Khairuddin, A.R. & Preece, C.N., Ed. (2009). Selected Readings in Quantity Surveying Training and Education. (soon to be published by KAED, IIUM). Note: In relation to this posting the author, in addition to being Professor of Quantity Surveying and Construction Procurement at IIUM, is a former Council Member of the Board of Quantity Surveyors Malaysia (2005-2007), former Committee Member of the Board's Quantity Surveying Accreditation Council (2005-2007, 2007-2009) and is a Committee Member of the Malaysian Qualifying Agency (MQA) for Engineering and Built Environment programmes. He is a member of the Institution of Surveyors Malaysia (MISM) and a Registered Quantity Surveyor with the Board of Quantity Surveyors Malaysia. He established the B.QS (Honours) programme at IIUM in 2000 and was the programme's Head for 2000-2001.

Employment prospects of a Quantity Surveyor

Salam and dear all, 1. What are the employment prospects of a Quantity Surveyor? 2. Quantity Surveyors may work in Malaysia or overseas and in a variety of areas, vis.

• private practice (e.g. as a quantity surveyor or owner/partner of a professional quantity surveying firm),
• government sectors (e.g. as a Quantity Surveyors with the Public Works Department, Local Governments such as the Kuala Lumpur City Hall, etc),
• educational institutions (e.g. as a Lecturer, Researcher, Associate Professor, full-Professor, academic administrators, Director of Property/Development),
• construction companies (e.g. as Contractor, Contract Manager, Project Manager),
• property developers (e.g. Procurement Director/Manager, Project Manager),
• banks and financial institutions (e.g. property and development departments, risk, credit, project funding, etc),
• insurance and takaful,
• infrastructures (e.g. Tenaga Nasional, Telekom Malaysia, Malaysian Highway Authority, etc),
• industrial companies, and
• other commercial companies.

Their professional skills are highly respected and often achieve top managerial status (modified from http://www.ism.org.my). 3. In terms of salary, a fresh graduate Quantity Surveyor may earn an average of RM2,000.00 per month. 4. As for Quantity Surveyors in private practice, they can charge professional fees for services provided (for more information on professional fees refer to the Board of Quantity Surveyors' Malaysia or visit http://www.bqsm.gov.my). Wassalam.

The works of a Quantity Surveyor

Salam and dear all,

Pursuant to my earlier posting on quantity surveying, below is a list of services normally provided by a qualified and registered Quantity Surveyor:

• Preparation of preliminary estimates and cost plans;
• Preparation of bills of quantities and other tender documents;
• Preparation of tender reports and contract documents;
• Preparation of tender documents, tender reports and contract documents for prime cost and provisional sum items other than those under the charge of mechanical and electrical engineering consultants;
• Valuation of works in progress for interim valuation/certificates including variations;
• Preparation of final accounts;

• Preparation of feasibility studies including income/expenditure cash flow;
• Preparation of final costs for contracts based on provisional bills of quantities;
• Pricing of bills of quantities or pricing and agreeing schedule of rates;
• Re-measurement of the whole or part of the works due to re-planning arising from a change of use, repositioning (if re-measurement is required), and re-designing of any of the structural element in the works;
• Preparation and attendance for arbitration/litigation; and
• Preparation of documents and reports for pre-qualification of contractors.

A Quantity Surveyor works with other specialists notably:

• Architect who provides services in architectural design and in supervision of building projects;
• Engineer i.e. civil, structural, mechanical and electrical that provides services in engineering design and supervision of building and infrastructure projects;
• Contractor and sub-contractors who physically construct the building or facility on the site;
• Other specialists including land surveyor, town planner, interior designer, landscape architect and other highly specialized consultants in the areas such as geo-technical, environmental engineering, traffic planner and acoustic engineering.

Wassalam.

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Reference: Act 487, Registration of Quantity Surveyors Act 1967 (revised 2002).

Journal of Quantity Surveying and Construction Business

Salam and dear all, The Procurement and Project Delivery System Research Unit, IIUM is in the midst of publishing its first issue of the Journal of Quantity Surveying and Construction Business (JQSCB). Kindly visit the Journal website http://www.jqscb.blogspot.com for more information on call for papers, etc. Wassalam.

About Quantity Surveying

Salam and dear all, 1. The Quantity Surveyor is a construction professional, he or she is qualified and adequately trained to advise on all aspects of construction costs, financial and contractual administration. He or she is an expert on the cost and management of construction projects, whether building, civil or heavy engineering... (taken from the Institution of Surveyors Malaysia. For more on Quantity Surveying visit http://www.ism.org.my). 2. Quantity Surveying, as a profession, is governed by an Act of Parliament, i.e. Registration of Quantity Surveyors Act 1967, Act 487 (Revised 1992). 3. According to the BQSM website as of 15th May 2009 there are 864 Registered Quantity Surveyors, 811 Registered Graduate Quantity Surveyors and 277 QS Practices. For more on the Act and on the Board of Quantity Surveyors Malaysia visit http://www.bqsm.gov.my. Wassalam.

Conference announcement and call for papers

Salam and dear all, Kindly note that the Procurement and Project Delivery Systems Research Unit, IIUM in collaboration with Kyoto University of Japan will be hosting 2 international conferences in October 2009. The conferences and the links are: 1. Inaugural Conference Construction in the Muslim World: http://www.constructioninthemuslimworld.blogspot.com (please copy-paste) 2. The highly successful and in its fifth series, the International Conference on Multi-national Joint Ventures for Construction Works:

http://psa2.kuciv.kyoto-u.ac.jp/5thjvconf2009/

The deadline for submission of abstracts for both conferences is 30th May 2009. Wassalam.

Welcome to www.khairuddin-constructionprocurement.blogspot.com

Salam and dear all, I am now using the web (thanks to http://www.blogger.com) to disseminate information to / communicate with students on the courses that I am appointed instructor. The courses, under the Bachelor of Quantity Surveying (Honours) programme at IIUM, include:

• Introduction to construction procurement (AQS1250)
• Systems of construction procurement (AQS3140)
• Post contract administration I (AQS2252, occasionally)
• Post contract administration II (AQS3152)
• Advanced post contract administration (AQS4152)
• Undergraduate dissertation (AQS4270)
• Postgraduate research supervision/research methodology (Masters and PhD)

Students are advised to visit this site for information related to teaching and learning quantity surveying and construction procurement in general/seminar and conference announcements, etc and for information related to the courses listed above. Students may post comments, ask questions, etc (nothing personal) but please write responsibly and be ethical at all times. Your comments / questions (to be moderated by me) will be published if you state your name and student's ID. Wassalam.