Understanding Government Procurement Policies and Procedures

Salam and dear all,

1. In the course of providing public services, a government procures goods (such as uniforms for the army, the police, etc), services (consultancy services) and works (construction of buildings and other infrastructures).
2. Typically, the government of a country/state/province is the largest procurer of goods, services and works (either direct procurement or through the PPP/PFI procurement routes).
3. As public funds are involved, government procurements are subjected to detailed scrutiny by many: individuals, businesses, politicians, NGOs, etc.
4. Consequently, it is crucial that the concepts including transparency, accountability, efficiency and value for money are upheld at all times.
5. To understand the policies and procedures of government procurement in Malaysia, in relation to the above concepts, students may read the ADB/OECD report "Anti-Corruption Initiative for Asia and the Pacific: Thematic review on provisions and practices to curb corruption in public procurement, self-assessment report Malaysia." The report is available at: http://www.oecd.org/dataoecd/8/53/35134584.pdf.
6. The ADB/OECD report (in 10 pages) covers aspects including laws and regulations related to government procurement, Public Procurement Office (PPO), procurement policies and practices, transparency and fairness, integrity, accountability, review and complaints mechanism, etc.

Wassalam.

Reference and acknowledgement: The Secretariat, ADB/OECD Anti-Corruption Initiative for Asia and the Pacific.

Masters and PhD, what's the difference?

Salam and dear all, I have been asked on what's the difference between a Masters and a PhD. Briefly:

• Masters

1. Normal entry requirement: a 'good' first degree
2. Duration of study: 12 to 24 months
3. Style of programme: taught or research
4. Tendency to be career oriented / career advancement

• PhD

1. Normal entry requirement: a Masters or a 'very good' first degree
2. Duration of study: at least 36 months
3. Requires perseverance on a scale above and beyond that of a Masters
4. Style of programme: research (there may be a small portion of taught courses such research methodology)
5. Tendency to be career oriented related to research / academia

• Note

1. At IIUM (and most universities) it is among the requirements that a lecturer must have a PhD (effort is currently being taken to achieve this target)
2. In effort to develop scientifically advanced society and industries, the Malaysian Government has place a target of 60,000 PhDs by 2023

Sources: for masters and phd in general (include en.wikipedia.org); 60,000 PhDs (MOHE); others: Khairuddin (IIUM, 2010). Wassalam

A QS with a Masters / PhD would enjoy better career prospects

Salam and dear all, Preece & Khairuddin (IIUM, March, 2009) conducted a simple questionnaire survey among Malaysian Quantity Surveyors (N=124). The results of the survey, in terms of benefits of a post-graduate degree related to quantity surveying are (in order of importance):

1. Develop career and gain promotion
2. Use knowledge to solve more complex problems
3. Enhance employment prospects
4. Client will be impressed with the higher qualification(s)
5. Increase salary
6. Increase in (quantity surveying) productivity

Wassalam.

Brazil 2014 - Which standard form of contract?

Salam and dear all, Brazil is the host of the 2014 Soccer World Cup.

• In an article by Zarina Kellerman and Natasha Jansen in Lexology (online, retrieved 21st April 2010, see full address below) the authors wrote that Brazil will be working towards procuring infrastructural facilities including 4 new stadia, upgrading of 8 existing stadia, upgrading of airports, roads, and the construction of a new high speed railroad.
• In terms of which standard forms of contract that could be used, given that contractors the world over might be called to assist Brazil, the authors discussed the advantages of using either the FIDIC Red Book and the New Engineering Contract (NEC3) Engineering and Construction Contract.
• Students may access and read the article in full (copy-paste) http://www.lexology.com/library/detail.aspx?g=4ce4cff9-bf3b-4493-a64b-f3561f50950f&utm_source=Lexology%20Daily%20Newsfeed&utm_medium=Email&utm_campaign=Lexology%20subscriber%20daily%20feed&utm_content=Lexology%20Daily%20Newsfeed%202010-04-21&utm_term=

Wassalam. Special note:

• Students must observe the copyright conditions (Globe Business Publishing Ltd, copy-paste, http://www.lexology.com/info/copyright.aspx),
• This bloger acknowledges the source of the article i.e. Lexology; the authors of the article entitled All eyes on Brazil 2014 i.e. Zarina Kellerman and Natasha Jansen; and Globe Business Publishing Ltd).

6th International Conference on Multi-national Joint Ventures for Construction Works: Submission of Abstracts & Papers

Salam and dear all,

1. Kyoto University will host the 6th International Conference on Multi-national Joint Ventures for Construction Works.
2. Collaborators for the 6th Conference are: International Islamic University Malaysia (IIUM), Manchester Business School (MBS), and Kyoto University's GCOE.
3. The 6th Conference will be held in Kyoto, Japan on 22nd-23rd September 2010.
4. For details on submission of abstracts, papers, venue, important dates, etc go to the Conference website.
5. Previous JV conferences:

• 2005, Kyoto University and IIUM, Penang, Malaysia.
• 2006, Kyoto University, IIUM and UTC, Hanoi, Vietnam.
• 2007, Kyoto University, IIUM and AIT, Bangkok, Thailand.
• 2008, Kyoto University, IIUM and National Cheng Kung University, Tainan, Taiwan
• 2009, Kyoto University and IIUM, Kuala Lumpur, Malaysia.

Wassalam.

Shah Alam Hospital facing problems and potential delays?

Salam and dear all, It has been reported by several online media that the construction of the Shah Alam hospital is facing problems and potential delays. For further reading go to:

• http://kamal-talksmalaysia.blogspot.com/2010/04/rm482-million-royal-shah-alam-hospital.html;
• http://www.theedgemalaysia.com/political-news/155331-dap-takes-shah-alam-hospital-project-to-pac.html;
• http://www.sapp.org.my/mkini/091208_shahalam_hospital.htm.
• The 2007 story on the construction of the Shah Alam hospital as reported by The Star online.

After reading this posting students may be interested to start a discussion on procurement of hospitals, methods of tendering, negotiated tender, disputes in construction, delays in construction, etc. Wassalam. Special note: the links provided above serve and are specifically aimed at facilitating students accessing the relevant postings and articles and to acknowledge the sources of information forming basis for this posting.

Declaration for non-collusion in a tender

Salam and dear all,

In my previous postings (2^nd April 2010, and 20^th March 2010) I have directed all to effort made by the government to combat corruption, at tender stage, in the procurement of constructed facilities in the public sector.

In the private sector, similar effort includes that tenderers are required to submit together with their tenders signed document known as 'Declaration for non-collusion'.

A typical 'Declaration for non-collusion' includes statements such as:

• The tender is a bona-fide tender, intended to be competitive.
• A tenderer did not fix or adjust the tendered amount by or in accordance with any agreement or arrangement with any other person or any other firm participating in the tender.
• A tenderer did not disclose to other persons (except for the purpose of obtaining quotations for insurances for the preparation of the tender) or other tenderers of his tendered amount.
• A tenderer did not enter into any agreement with anyone that he shall not participate in the tender or as to the amount of his tender.
• The tenderer shall not pay or offer to pay / give or agree to give any sum of money and the likes either directly or indirectly to any person for doing something or causing or having caused something to be done in relation to his tender.

During post contract, the CIDB Standard Form of Contract for Building Works 2000 Edition, Clause 51 Miscellaneous Provisions, sub-clause 51.1 Business Ethics, requires a contractor to practice 'good business behaviour' in his dealings with the Employer thus "… shall properly reflect the facts about all activities and transactions handled for the account of the Employer". However, this provision does not address the issue of corruption during the pre-contract stages of a project.

Sources: Tender documents used in the private sector and the said CIDB form.

Wassalam.

More transparent public sector procurement via “MyProcurement”

Salam and dear all,

The Malaysian government yesterday (1^st April 2010) announced that information on government tenders - projects available for tenders and names of successful tenderers - will be made available, real-time and online, via a newly created portal known as "MyProcurement". The said information will be available at http://myprocurement.treasury.gov.my/. The Prime Minister said that the initiative aims to boost transparency, integrity and to prevent corruption in public sector procurement.

Source: The Star Online, 2^nd April 2010 at http://www.thestar.com.my/news/story.asp?file=/2010/4/2/nation/5984619&sec=nation

Wassalam.

Malaysia's NEM: The Full Report

Salam and dear all, In my earlier posting (the one before this post) I have provided a brief on the NEM. The NEM is the work of the National Economic Advisory Council or NEAC (as stated by the PM in his speech). For those interested to read the NEAC full report go to http://neac.gov.my/node/235 See also The Star at http://thestar.com.my/neweconomicmodel/. Wassalam.

Malaysia’s New Economic Model (NEM)

Salam and dear all,

Malaysia's Prime Minister has announced his latest initiative on socio-economic growth and development, otherwise known as the New Economic Model (NEM), on Tuesday, 30^th March 2010, in Kuala Lumpur. The key ideas and components of the NEM (extracted from the PM's speech) include.

1. Malaysia, after the recent economic downturn (due to the global financial crisis) is focused on:

How to ensure a sustainable and robust recovery in the short and medium term

Enhancing Malaysia's competitiveness

Sparking private investments and growth

Putting Malaysia on a trajectory to achieve high income levels

Building an innovative economy, and

Bold transformation and economic reforms to modernize the economic model for the future.

2. Malaysia's new challenges:

Must not retreat back to the status quo (of the pre-recession years)

Past policies are no longer enough to raise income levels and create high-value economy

Malaysia must expand her economy, she cannot rely on just a few sectors of the economy to drive her growth

The education system must continue to be re-evaluated and improved to create the workforce of the future

The government should be able to facilitate and empower the private sector.

3. The NEM

The NEM forms the core of Malaysia's long-term policy agenda and it will be integrated into the 10^th and 11^th Malaysia Plan.

The NEM has 3 key principles namely high income, sustainability, inclusiveness; and 8 strategic reform initiatives.

4. The 8 strategic reform initiatives of the NEM are:

Re-energize the private sector to lead growth

Develop domestic human resource and reduce dependency on foreign labour

Create a competitive domestic economy

Strengthen the public sector

Put in place transparent and market friendly affirmative action

Build knowledge base infrastructure

Enhance the sources of growth; and

Ensure sustainability of growth.

Read the PM's full speech at: http://www.pmo.gov.my/?menu=speech&page=1676&news_id=227&speech_cat=2)

Students may want to start a discussion on the impact of the NEM on Quantity Surveying and Construction Procurement.

Source: the web address at stated above.

Wassalam.