Attention IIUM QS graduates: Petronas is recruiting Contract Administrators

Salam and dear all, Petronas has informed me that they are currently recruiting graduate quantity surveyors, preferably from IIUM and with 3 years working experience, for the position of Contract Administrator. For more information contact: Ms Farah Hana Roslan Talent Sourcing , HRM Department PETRONAS Carigali Sdn Bhd Level 26 Tower 1 PETRONAS Twin Tower KLCC 50088 Kuala Lumpur, Malaysia Tel : 03 - 2331 4754 Fax : 03 - 2331 6460 hana_roslan@petronas.com.my Wassalam.

Abandoned housing projects

Salam and dear all, During question time yesterday (1st December 2009) the YB Minister of Housing & Local Government told Parliament that between 1990 and 30th September 2009 there were 148 abandoned housing projects in Malaysia. The abandoned projects affect 31,824 buyers of 49,913 units of dwellings. According to the minister from the 148 abandoned projects, 12 were revived and are now ready with CF; 49 are currently being revived and the balance 87 projects are awaiting 'new developers'. Almost half of the projects awaiting new developers belong to the low and medium costs categories. A list containing the 87 abandoned projects is available at http://ehome.kpkt.gov.my/shadomx/apps/fms/fmsdownload.cfm?file_uuid=DC4A7684-BF64-4C40-FB29-FF3EB3D4BB77 (copy-paste). In my recent postings, I talked about public sector time and cost overruns and 'sick projects'. The statistics provided by the YB Minister of Housing & Local Government concern housing projects developed by the private sector. One item being consistent here is that it seems time over-run and abandoned projects are a common feature in Malaysia, notwithstanding whether they are in the public sector or private sector. There is a need therefore for us to focus on time and cost overruns and on abandoned projects and develop and implement appropriate strategies on how to combat them. Wassalam.

"Sick project" and time and cost overruns

Salam and dear all, Pursuant to my earlier postings on time and cost overruns (22nd Nov 09) and 'sick project' (24th Nov 09) I have received several comments and questions (these comments have been published; many thanks). I believe the said circular would provide answers to the comments provided / questions asked. One may read the circular ref spp 8/2009 at : http://www.treasury.gov.my/pekeliling/spp/spp082009.pdf Wassalam.

"Sick" project

Salam and dear all, When a public sector construction project is delayed by 30% i.e. its actual progress is 30% behind the planned progress, the project is classified as "projek sakit" or "sick" project. But not anymore. In a recent circular issued by the Ministry of Finance Malaysia in September 2009 a project is classified as "sick" when its actual progress is 20% behind the planned progress. Ref: http://www.bernama.com/bernama/v5/newsgeneral.php?id=457746, 24th Nov. 2009. Wassalam.

Time and cost overruns: are we using the right techniques to estimate time and cost?

Salam and dear all, The 2008 Auditor General's report pointed out several areas related to public sector construction procurement that are not quite right. Included in the list are time and cost overruns of projects. In fact, time and cost overruns of public sector projects have been highlighted by the Auditor General in many past reports. Those interested may read the report at http://www.audit.gov.my. In this posting I would like to call for a discussion, to seek views from research students and practitioners studying time and cost overruns on the methodology or methodologies used to estimate time and cost of projects. The key question I have is this: in the context of the public sector construction procurement in Malaysia is the methodology (or are the methodologies) used to estimate time and cost of projects current, appropriate and scientific? Perhaps final year and graduate students may consider the above mentioned question as a potential to be developed into a research topic for the final year project paper or dissertation. Wassalam.

RICS's new qualification "AssocRICS"

Salam and dear all, The following article may be of interest to people aspiring to become chartered surveyors but lacking in the necessary academic qualifications. It has been reported by Catherine Deshayes that the RICS has come up with a new qualification, at intermediate level and aimed at non-graduates, as a new pathway towards becoming a fully qualified chartered surveyor. The full article is published by the Move Channel.com on November 10, 2009 and available at http://www.themovechannel.com/news/abf0bfb8-4c3f/ Here is the full article;

New qualification for RICS

Tuesday, November 10, 2009

Catherine Deshayes

RICS has launched a new intermediate surveying qualification called AssocRICS. The new qualification is designed to introduce non-graduates to the RICS programme - AssocRICS replaces the TechRICS qualification and will be rolled out across a number of specialist areas of the surveying profession starting with quantity surveying, closely followed by residential survey and valuation and residential estate agency...

It is aimed at delivering a professional qualification to a broader cross-section of individuals while ensuring that standards are advanced in the sector.

The associate assessment process is online and competency based. The qualification is achieved by demonstrating that RICS standards have been met through relevant work experience.

Commenting Louis Armstrong, RICS chief executive said:

"This new entry-level qualification is an opportunity for many excellent property professionals who previously have been denied access to a professional qualification due to a lack of academic qualifications.

"RICS is keen to recognise the experience and competence of a broad section of workers and offer them the opportunity to attain chartered status and remove barriers to social mobility and career progression."

Source: www.propertyweek.com

Home insulation anyone?

Salam and dear all, Insulating one's home or office building could save money and is cooler too. Here are some of the facts (as reported by Sakina Mohamed (Bernama.com, 5th November 2009 at http://www.bernama.com/bernama/v5/newsfeatures.php?id=452603 ); (i) "insulation could make buildings cooler, lessen the need for fans or air-conditioners, and could save up to 85 per cent of energy used in buildings. (ii) in homes air conditioners make up some 23 per cent of energy consumption. (iii) the cost for insulating a building is about RM2.70 per M2. A typical intermediate house in Malaysia would require RM2,000 to RM3,000 to insulate the space under the roof where heat gained is the most (some 70% from the ceiling). (iv) mineral wool, the material used for insulation , is manufactured in Malaysia. (v) the insulation installed is maintenance free, provides better noise protection, and has fire-retardant properties". Wassalam.

Budget 2010 and the Construction Sector Part 2

Salam and dear all, The following is the second and final installment on Budget 2010 and the Construction Sector; Construction Special attention to construction; in 2010 RM9 billion is allocated for the construction sector. From this amount, RM4.7 billion is for roads and bridges, RM2.6 billion for water supply and sewerage services, RM899 million for rail facilities, RM820 million for port and sea services, RM276 million for airport projects. Special attention towards green technology; the Green Building Index was launched on 21st May 2009. Owners of GBI Certificate from 24th October 2009 to 31st December 2014 enjoy income tax exemption equivalent to the additional capital expenditure in obtaining the certificate. Buyer of building with GBI certificate will be given stamp duty exemption on instruments of transfer of ownership equivalent to the additional cost incurred when signing the S & P within the same date stated above. Allocations that would benefit construction includes RM137 million for drainage and irrigation, RM70 million for the Paya Peda Dam project in Terengganu, and RM82 million for the aquaculture industry; RM30 billion for primary and secondary education including RM1.6 billion for building 80 new schools, RM1.1 billion to refurbish schools nationwide; TNB will spend RM5 billion to implement electricity generation, transmission and distribution in 2010; RM1.9 billion for the armed forces to construct and upgrade sentry posts; RM14.8 billion to upgrade, build hospitals and clinics; and RM3l.2 billion to construct and upgrade rural infrastructures mainly rural and village roads. Others related to construction includes: under the regional economic corridors 126 out of the 195 planned projects are at various stages of implementation, total investment has reached RM221 billion (in excess of the 9th Malaysia Plan target of RM145 billion. In 2010 a sum of RM3.5 billion is allocated for infrastructure and basic amenities under the regional corridors initiatives. In terms of key policies affecting the construction sector, they include; Local Authorities must speed up issuance of Development Orders, individuals only use their Mykad number (known as MyID) and companies use their CCM business registration number (known as MyCOID) when dealing with government agencies; the government reduces its involvement in economic activities and therefore companies under the MOF Inc and other viable agencies will be privatized; the practice of PPP will be enhanced, projects identified under the PPP include the CIQ in Bukit Kayu Hitam, 6 UiTM campuses and a MATRADE Centre. Five percent (5%) tax on gains from the disposal of real property from 1st Jan 2010 (with certain exemptions such as disposal of a residential property once in a life-time). However, there is no detail on how or the style of privatization and PPPs that the government intends to apply. Others considered related to the construction sector; steps being taken to strengthen R&D&C activities (Malaysia’s spending on R&D is at 0.6% of GDP whereas US 3%, S Korea 3.5% and Taiwan 2.4% of their respective GDPs; RM11.3 billion will be spent on High Speed Broadband, initially 10 megabytes/second in selected areas in KL and Selangor by March 2010, other areas between 2010 and 2012 and individuals with broadband will be given tax relief of RM500 for 201-2012 for broadband subscription fees (broadband penetration in Malaysia is at 25% whereas 95% in S Korea, 88% in Singapore, 64% in Japan and 60% in US). In terms of Islamic banking, assets under the scheme account for 18.8% of Malaysia’s total banking assets, takaful contributes 7.7% of the total insurance and takaful industry; Malaysia is the world’s largest sukuk issuer with US$94.7billion or 62% of outstanding global sukuk in 2008. In terms of combating corruption a Whistle Blower Act will be introduced in 2010. To the individual tax payers; those with credit cards have to pay service tax of RM50.00 (principal) and RM25.00 (supplementary) commencing 1st January 2010; maximum individual income tax reduced from 27% to 26% for the year of assessment 2010 and personal relief increased from RM8,000.00 to RM9,000.00. Wassalam.

Budget 2010 and the Construction Sector, Part 1

Salam and dear all, The Finance Minister who is also the Prime Minister of Malaysia presented his budget to Parliament on 23rd October 2009. In relation to the construction sector, the following are the highlights of the budget; Generally Total allocation for 2010 RM191.5 billion, some 11.2% lower than the revised allocation of RM215.7 billion for 2009. RM138.3 billion or 72.2% is for operating and 53.2 billion or 27.8% for development. As for the development allocation, RM25.4 billion is for the economic sector, RM20.3 billion social, RM3.7 billion for security, RM1.8 billion for general administration and RM2 billion contingencies. The budget for 2010 is the last budget under RMK9, its approach is moving from an industrial based economy to one that is based on innovation, creativity and high valued activities. Malaysia is a trading nation. Its total trade is valued at 200% of GDP and is vulnerable to various uncertainties related to international capital flows and external trade. GDP contracts at a slower pace i.e. at 3.9% during the 2nd quarter (-6.2% in the 1st quarter); construction grew at 2.8% in the 2nd quarter due to the implementation of the 2 stimulus packages totaling RM67 billion). As of 16th October 2009 more than 48,000 projects under the stimulus packages were completed; about 40,000 are being implemented. Malaysia’s GDP in 2009 is projected at -3.0%, in 2010 expected to expand 2% to 3% and construction expected to grow at 3.2%.

Quantity surveying in Kenya

Salam and dear all, An interesting development is taking place in Kenya whereby Quantity Surveyors there are calling for a separate Act to govern the profession. For your information in Malaysia the quantity surveying profession is governed by Act 487 Quantity Surveyors Act 1967 (revised 28th February 2002). Read the full article published in Kenya's Daily Nation, 30th October 2009 at http://www.nation.co.ke/business/news/-/1006/678538/-/if6dm9z/-/ "Quantity surveyors seek autonomy By KABURU MUGAMBIPosted Wednesday, October 28 2009 at 16:37 Quantity surveyors have backed a proposed Bill that seeks to amend the current Act by creating a new law to separately register and regulate them. Currently, the profession is regulated solely from a building construction perspective and thus combined with architecture under the Architects and Quantity Surveyors Act. Members say the profession’s growth and contribution to sectors outside building construction locally has been largely hampered. The principle aim of the proposed Quantity Surveyors Bill 2009, is to provide for a separate registration of quantity surveyors as is the practice in other Commonwealth countries such as Britain, India and South Africa. Quantity surveyors say that since architects are building designers, putting quantity surveyors and architects under the same cap and regulatory board has created a misconstrued conception that quantity surveying is limited to buildings. “On the contrary, quantity surveying is a strong land developments economics curriculum which renders professional services which span across buildings, allied services and civil works, roads network and all infrastructure development,” Special Programmes ministry assistant minister Mohamud Ali — himself a quantity surveyor — said on Wednesday. He said that the profession had grown in terms of complexity and in tandem with global trends expanding beyond the traditional building sector to embrace new areas of infrastructural development. These, he said, include telecommunication services, engineering, civil works and finance. “The quantity surveying fraternity feels that it has come of age both in terms of the number of practitioners and the growth of the profession to deserve a dedicated registration board and an Act of Parliament that will regulate and address the interests of quantity surveying,” said Mr Ali when he opened an Institute of Quantity Surveyors of Kenya seminar on the Bill in Nairobi. He said that combining architects and quantity surveyors under the same chapter and board of registration contributes to creating under-employment “within the quantity surveying fraternity to the tune of 40 to 60 per cent” due to the misconception that quantity surveying is about building construction only. Evident role Institute of Quantity Surveyors of Kenya chairman Silvester Mutharia said the role played by the profession was evident in developed economies where quantity surveyors are engaged in road construction, mining, ship building, electrical generation and transmission, water and sanitation. “In most of those countries too, this profession is regulated by a profession-specific legislation,” he said".

Discussions on Public Procurement

Salam and dear all, The following article, in The Star online at http://thestar.com.my/news/story.asp?file=/2009/10/26/starprobe/4823678&sec=starprobe discusses public procurement. Read the full article, reproduced here... Monday October 26, 2009 Are tenders open and fair? PETALING JAYA: Most people are in the dark over how government tenders at the state or federal levels are carried out. Perhaps this is because until fairly recently, most government jobs were awarded on a direct negotiation basis. While the Government has started to award projects based on a tender system, it is often unclear how this works since the practice is filled with various caveats and regulations deemed to be “politically sensitive”. Furthermore, a browse through the various federal and state websites can be confusing as there is no central Web portal from which everything can be viewed, perhaps due to the fact that the various states in the federal system have their own guidelines. The Public Works Department website’s section on tenders clearly states that agencies must adhere to existing government guidelines including the strategies under the National Development Policy, policies regarding the environment, foreign investment and technology transfer, and insert a bumiputra-first clause as part of the tender and contract. Last November, Prime Minister Datuk Seri Najib Tun Razak affirmed that the Government “will still have the discretion to determine if there will be direct negotiations”. Roof of the Sultan Mizan Stadium in Kuala Lumpur collapses. “Procurement for bumiputra contracts will also be awarded via competitive bidding among bumiputra companies,” he says. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said at a press conference recently that the Federal Government had awarded all big government projects via the open tender system since March last year. It is understood that the threshold for open tenders starts from RM500,000. At the federal level, the Government’s website, www.malaysia.gov.my, has a list of tenders that can be sorted by ministry/agency, tender title as well as start and end dates. Besides the main government website, there is ePerolehan, the Federal Government’s electronic procurement system mainly for expenditures that come under operating expenses such as stationery to maintenance of buildings. The Selangor government website, www.selangor.gov.my, also has a site for tenders but oddly it is embedded in a section entitled “Residents” and subsection of “Services” instead of being immediately visible on a separate section in the homepage where all the main sections are. According to a blogger in a July 29 blog posting in The Star, the government tender system has been in existence since pre-independence days but went through major changes in the days of the New Economic Policy and privatisation. The blogger says that under the old system, procurement by open tender was very transparent. “First, the tender is advertised as widely as possible. The closing date for receiving the tender documents is announced publicly. Normally the opening of the tender box is set about an hour after the closing of the tender box,” the blogger says, adding that anybody could attend the opening of the tender box. “After every document has been opened, a tender list is prepared. The list consists of the names of the tenderers, their tender offers, and other relevant details. All this is done in the open meeting, open to the public. The tender list is open for public viewing, normally posted on the notice board,” the blogger says. Tender evaluation The next step is the tender evaluation. The blogger says this is done by the relevant government departments. “This is followed by the tender board meeting, which decides on the tender, based on the tender evaluation report. This stage is not open to the public. But the decision of the tender board is made public,” the blogger says. The decision of the tender board – which must include the list of tenderers and their offers – is posted on the notice board for public viewing. “If the tender board selects a tenderer who is not at the top of the list, the board must give its explanation, which should go together with its report,” the blogger says. In India, which operates on a federal system not unlike Malaysia’s, there is a website for tenders known as the Indian Government Tenders Information System at http://tenders.gov.in. The website states that it “is the central source for government and public sector procurement, tenders and notifications issued by the central and state governments and other public bodies across India for goods, services and works”. The website has useful information including the latest tenders, open tenders (those that are currently active and for which the last date is near future), tenders by product/service, by agency, by classification (whether buy, sell, auction, work contract or service contract), by location and by value. Most importantly, the website has a section on big awards and details of bid information for tenders published and awarded to successful bidders along with the terms of contract. Neighbouring Singapore has GeBiz (Government Electronic Business), the government’s “one-stop e-procurement portal,” according to information gleaned from the website. The website states that all public sector invitations for quotations and tenders are posted on the portal while suppliers, after registering as a trading partner, can search for government procurement opportunities, download tender documents and submit bids online. Singapore’s Finance Ministry and Spring Singapore or the Standards, Productivity and Innovation Board, an enterprise development agency, also publishes a government procurement guide for small, medium enterprises to help these companies understand government procurement rules. In Australia, the government has AusTender at www.tenders.gov.au, which provides guidelines for procurement of property and services. The site links to information on how to be a supplier of goods and services to the government, besides having information on proposed, current and closed tenders. The Australian government also practises a form of pre-qualification through a “multi-use list” which it publishes through the AusTender site. According to information from the site, it is a list of pre-qualified suppliers of nominated goods and services who have satisfied the conditions for inclusion on the list. However, inclusion, even if insisted on by government agencies, does not guarantee any potential supplier that an agency will include them in a select tender process.

Malaysia in full employment?

Salam and dear all, Various reports show that Malaysia is home for many foreign workers, documented and un-documented, working in various sectors of the Malaysian economy. It would appear therefore that Malaysia is in full employment... However, a report by the MTUC (http://www.mtuc.org.my, accessed 25th Oct 2009) noted that in 2006 only 46.1% Malaysian women and 86.1% Malaysian men working... thus there are some 2 million women and 890,000 men not in some kind of employment! Questions that one could ask... based on the figures published by the MTUC why are there too many foreign workers, mostly unskilled, working in Malaysia? Why can't those 2.89 million Malaysians be employed instead? In the context of the construction industry, reasons why Malaysians are not keen to work include (as suggested by the MTUC): the very nature of the contracting system for construction works, lack of prospect for permanent employment and the casual status of construction employment,lack of proper retirement plan/insurance because many employers seldom make contributions to the EPF or SOCSO. Other reasons include the image of construction being a 3D industry: dirty, dangerous, demanding; the lack of proper temporary accommodation on the site for the comfort and safety of workers and their dependents (just look at the way in which most construction 'kongsis' on most construction sites or near to construction sites were erected and maintained), the lack of emphasis on health and safety, the sometimes harsh working conditions and prolong exposure to the elements of the environment, etc. A comprehensive plan is required in order to woo some of the 2.89 million unemployed Malaysians to work, including working in the construction industry... Wassalam.

A new model for PFI?

Salam and dear all, There are talks on newer approaches to PFI. For example a Scottish Think-tank, Reform Scotland, is proposing a new PFI model known as Scottish Capital Partnerships or SCP. The aims of the new PFI model include to 'avoid pitfalls of PFI'. Read the report at http://www.pppfocus.com/shownews.asp?articleID=2839 Wassalam.

Construction Conferences, Oct 2009: Preface by the Chief Editors

Preface by the Chief Editors

Assalamualaikum warahmatullahi wabarakatuh or peace be upon you, and dear all.

The following conferences; Inaugural Conference Construction in the Muslim World, 21^st October 2009; 5^th International Conference on Multi-national Joint Ventures for Construction Works, 21^st – 22^nd October 2009; and 2^nd Conference and Workshop on Construction Law and Economic Circle in Asia and Pacific (CLECAP), 23^rd October 2009 are being organized and staged, one after another within the same week, by the same Organizing Committee i.e. the International Islamic University Malaysia. In addition, most participants, at registration, have indicated interest to participate in all three conferences. In the interest of economy and to reduce costs the Organizing Committee therefore considers it to be most appropriate to compile the proceedings of the three conferences and published them into one book. To this end, a committee of Chief Editors was appointed.

For each conference there is a panel of Editors and the conference’s international scientific and review committee. The key task of the Chief Editors of this book is to carry on the good works of these Editors and review committees by compiling into a book the papers that have been accepted for presentation and publishing the book. Added to this task is the task of giving a name to the book, a name considered most appropriate to reflect the focus and without compromising the integrity and maturity of each of the three separate conferences. To this end, the committee of Chief Editors decided on Collaborative Efforts in International Construction Management as the title of the book.

Collaborative Efforts in International Construction Management is presented in three parts:

· Part 1 are for the Inaugural Conference Construction in the Muslim World. The papers contained therein review pertinent issues, problems and strategies related to the construction industries, the state of education and training and on aspects of Shari’ah compliance in construction management relevant to the countries of the Organization of the Islamic Conference (OIC) and beyond. We, the Chief Editors, believe this new area of study has a strong prospect in the future especially in terms of understanding the many issues and problems facing the Muslim countries and on the relationships, construction-wise and beyond, between the Muslims and others.

· Part 2 are for the 5^th International Conference on Multi-national Joint Ventures for Construction Works. The papers contained therein examine concepts, theories, practice and discusses problems and strategies in multi-national joint ventures for construction works. The number of papers and the quality of their contents illustrates the maturity of the grouping.

· Part 3 are for the 2^nd Construction Law and Economics Circle of Asia Pacific (CLECAP) conference and workshop. The papers contained therein relate to education, training and development in construction law, construction economics and in construction contract administration for experts from countries of the Asia and Pacific region.

The continuous and upward trends in globalization and liberalization of the world’s economies and of the construction industries coupled with the ravages of economic downturn of the 2007-2008 induced by the economic downturn in most of the more developed countries have made many of the world’s construction key players: developers, consultants, contractors, financiers, facilities manager, etc to consider newer strategies and to make aggressive moves to newer markets including to the countries of the Muslim world and those in the Asia and Pacific region.

On the one hand many countries of the Muslim world are known to be blessed with incomes derived from oil and other minerals yet are relatively backward in terms of socio-economic growth and developments with some labeled as the least developed developing countries. While on the other hand many countries of the Asia and Pacific region are relatively wealthy, some even have achieved the so called middle-income economies or soon to be labeled developed economies status. To induce and to sustain growth in these economies would require investments in socio-economic infrastructures, but in many of the countries – Muslims or in the Asia and Pacific region – with a few exception the presence of constraints notably in the key areas of technology and management capability are main inhibitors.

The scenario is therefore quite clear: on the one hand the world’s construction key players are hungry for projects in order to maintain turnover and profitability while on the other hand there are demands for socio-economic infrastructures by the countries of the Muslim world and of the Asia and Pacific region. The one sure implication of this scenario is that demand for highly reliable and credible information will increase.

This book is considered most appropriate to fill in information gaps for in essence it presents wide ranging issues, problems, solutions, concepts, theories, practices and education and training of experts in international construction management focusing on countries of the Muslim world and in the Asia and Pacific region. The authors of the papers and the respective conferences’ panel of editors and paper review committee have done a great service to the world’s construction management community: the former by putting forward their ideas and reporting their research outcomes and the latter through their tireless efforts in ensuring credibility and quality of the papers are not compromised.

We, the Chief Editors, believe this book will become one of the key references to be sought by practitioners, academics, students, researchers, civil servants and policy makers and others related to construction management in general but especially to construction in the Muslim world and in the Asia and Pacific region.

Thank you, Wassallam.

Khairuddin Abdul Rashid, Kiyoshi Kobayashi, Christopher Nigel Preece and Sharina Farihah Hassan

Chief Editors,

Collaborative Efforts in International Construction Management

Kuala Lumpur, 20^th October 2009

Construction Conferences, Oct 2009: Foreword by the Chair of the Organizing Committee

Foreword by the Chair of the Organizing Committee

Assalamualaikum warahmatullahi wabarakatuh or peace be upon you and dear all.

It gives me great pleasure in welcoming all or as we say it in Bahasa Malaysia, Selamat datang to Kuala Lumpur Malaysia, to the International Islamic University Malaysia (IIUM), to the Kulliyyah (Faculty) of Architecture and Environmental Design (KAED) and especially to the Conferences:

· Inaugural Conference Construction in the Muslim World, 21^st October 2009;

· 5^th International Conference on Multi-national Joint Ventures for Construction Works, 21^st – 22^nd October 2009; and

· 2^nd Conference and Workshop on Construction Law and Economic Circle in Asia and Pacific (CLECAP), 23^rd October 2009.

Briefly, the Inaugural Conference Construction in the Muslim World focuses on issues, problems and strategies related to construction in the 57 countries of the Organization of the Islamic Conference or OIC where Muslims form the majority of the population. The Conference also explores on how best construction could be employed to spur and sustain socio-economic growth and development in these countries and on how best to enhance collaboration between the Muslims and others using construction as the medium.

The 5^th International Conference on Multi-national Joint Ventures for Construction Works is somewhat like a home-coming for us at IIUM for it was IIUM and Kyoto University that initiated this area of study and hosted its first international conference in 2005 in Penang. The conference venue moved to Hanoi in 2006 (co-hosted by the University of Transport and Communications), Bangkok in 2007 (co-hosted by the Asian Institute of Technology), and to Tainan in 2008 (co-hosted by the National Cheng Kung University). Now into its 5^th year, the interest in the area of multi-national joint ventures for construction is as strong as ever.

The 2^nd Conference and Workshop on Construction Law and Economic Circle in Asia and Pacific (CLECAP) concerns education, training and accreditation of experts in the areas of construction law, construction economics, construction technology and management and in contract administration focusing on countries of the Asia and Pacific Regions. The inaugural CLECAP conference was held in Kyoto in 2008 and was hosted by Kyoto University.

In addition to acting as host of all three conferences, the Organizing Committee is also entrusted with the preparation of the proceedings. This book is a compilation of the three conferences’ proceedings. The book also illustrates the diverse interests that practitioners, academics, students, researchers, civil servants and policy makers and others related to construction from across the world have, yet they are able to integrate efforts, to collaborate towards making the world’s natural and built environments a better place through their continuous efforts in research and in publications on aspects related to construction management. As such, the Chief Editors’ choice of the title of this book Collaborative Efforts in International Construction Management is considered most appropriate.

We at IIUM are honored to be given the trust to act as host of the above conferences. We endeavor to provide the best to ensure all three events are successful in meeting their respective objectives.

Last but not least, I would like to express my gratitude to the many individuals and organizations that are involved in bringing the three conferences to success especially IIUM, Dean of KAED IIUM, Kyoto University, CLECAP, Global Centre of Excellence Program of Kyoto University or G-COE for meeting the printing costs of this book, all three conferences’ Advisors and Governors, all three conferences’ International Scientific and Review Committees, etc, editors of all three conferences’ proceedings, all speakers and participants and to staff and colleagues of the Organizing Committee. Names of all those involved are duly noted in the respective proceedings.

Selamat bermesyuarat or happy conferencing.

Before you leave please do take some time to visit the many interesting places that Malaysia has to offer and I make du’a for all to have a safe journey home.

Thank you and Wassallam.

Professor Sr. Dr. Khairuddin Abdul Rashid

Chair of the Organizing Committee (Overall)

Chair, Inaugural Conference Construction in the Muslim World

Co-Chair, 5^th International Conference on Multi-national Joint Ventures for Construction Works

Co-Chair 2^nd Conference and Workshop on Construction Law and Economic Circle in Asia and Pacific (CLECAP)

Kuala Lumpur

20^th October 2009

Construction Conferences in October 2009

Salam and dear all, Alhamdulillah, the following conferences, all held at IIUM and attended by some 150 participants (Malaysians and international) have been successful: 1. 1st Conference Construction in the Muslim World, 21st Oct 2009. In all 7 papers addressing the state of construction in the 57 countries of the muslim world (OIC), construction education and training and shariah compliant in construction procurement were presented. 2. 5th International Conference on Multi-national Joint Venture for Construction Works, 21st and 22nd Oct 2009. In all 23 papers addressing various issues, challenges, strategies and future prospects were discussed. It has been decided that the 6th conference will be in Kyoto Japan sometime in Oct 2010. 3. 2nd CLECAP Conference, 23rd October 2009. A total of 5 papers, all addressing various issues, challenges and training related to construction law and economics in the Asia and Pacific Rim were discussed. The 3rd CLECAP conference will be held in Kyoto Japan in Oct 2010. In conjunction with the conferences, a book entitled 'Collaborative efforts in international construction management' edited by Khairuddin, Kobayashi, Omoto, Preece and Hasan was published. The book contains all the papers presented plus others accepted but were not presented during the respective conferences. In my next posting I will present my welcoming remarks to the conferences. Thank you all for attending, presenting and for assisting me in organizing the conferences. Wasallam.

Construction Conferences in October 2009

Salam and dear all, Please take note that programs for our 3 international conferences, all hosted by IIUM, this October are now available: 1. Inaugural Conference Construction in the Muslim World, 21st Oct 2009; 2. 5th International Conference on Multi-national JV for Construction Works, 21st-22nd October 2009; and 3. 2nd Conference and Workshop on Construction Law and Economics in Asia & Pacific, 23rd October 2009. All together some 31 papers have been selected and are to be presented by leading academics, practitioners and researchers from Malaysia and elsewhere. For further details, visit: http://www.constructioninthemuslimworld.blogspot.com/ Wassalam.

PFI: points to ponder by policy makers

Salam and dear all, An article Uncovering the true costs of PFI by Allyson Pollock, published by the Guardian on Wednesday 23rd September 2009 highlights interesting facts about the way in which PFI is being practiced in the UK. Among others: 1. PFI is the dominant form of procurement of new roads, waste facilities, hospitals and schools, 2. PFI accounts for some GBP63.5bn worth of works, 3. PFI tenders are characterized by lack of competition, with small number of large firms, 4. Rigging of bids or cover pricing happens. Read the full article http://www.guardian.co.uk/commentisfree/2009/sep/23/pfi-construction-bid-rigging Wassalam.

A new book Understanding PFI - Contents

Salam and dear all, In my last posting I announced the publication of a new book Understanding PFI, Khairuddin Abdul Rashid, 2009, ScholarMind Publishing, 157 pages, ISBN 9789834481308. Here goes the table of contents of the book; Chapter 1 - Introduction Chapter 2 - Understanding PFI Chapter 3 - PFI: Reasons, trend, critique Chapter 4 - Malaysian PFI: Concept and method of procurement Chapter 5 - The procurement process of PFI project Chapter 6 - Public sector comparator Chapter 7 - Malaysian PFI: An appraisal Chapter 8 - Malaysian PFI: Are the key players ready? Chapter 9 - Conclusion Wassalam.

A new book Understanding PFI

Salam and dear all, A new book Understanding PFI is now available. Double click at the image to read the book's synopsis as printed on the book's back cover. Wassalam.

Book review: Joint ventures in construction

Salam and dear all, A review of the book Joint ventures in construction, Kobayashi, Khairuddin, Ofori and Ogunlana (2009), Thomas Telford, London is now available at:

http://www.mccaffer.com/?page=book_reviews&review=28

Wassalam. p/s you may have to copy paste.

The economies of Asia in 2009

Salam and dear all, The following data was taken from the Asian Development Outlook 2009 (ADB, in The Phnom Penh Post, 23rd September 2009, Growth Forecast Slashed by ADB, http://www.phnompenhpost.com/index.php/2009092328527/Business/growth-forecast-slashed-by-adb.html. * Cambodia -1.5% (2.5% March GDP growth forecast) * Thailand -3.2% (-2%) * Vietnam 4.5% (4.5%) * Singapore -5% (-5%) * Malaysia -3.1% (2.5%) * Indonesia 4.3% (3.6%) * Philippines 2.5% (1.6%) * Laos 5.5% (5.5%) * China 8.2% (7%) * Hong Kong -4% (-2%) * India 6% (5%) * South Korea -2% (-3%) * Sri Lanka 4% (4.5%) * Bangladesh 15.7% (9%) * Asia ex Japan 3.9% (3.4%) * Southeast Asia 0.1% (0.7%) South Asia 5.6% (4.8%) * East Asia 4.4% (3.6%) * Central Asia 0.5% (3.9%) Source: Asian Development Bank. It is worthy to refer to the Department of Statistics Malaysia on the state of Malaysia's economy: GDP growth rate Q1, 2009 = -6.2%; Q2, 2009 = -3.9% (source: http://www.statistics.gov.my, 24th September 2009). Wassalam.

How to understand the state of financial affair of a contractor or a client

Salam and dear all,

The following is an edited version of an article taken from The Star at

http://biz.thestar.com.my/services/printerfriendly.asp?file=/2009/9/23/business/4762997.asp&sec=business, entitled How to analyze an annual report and written by Mr Ooi Kok Hwa, Wednesday September 23, 2009.

Students may refer to the notes to understand better the state of affairs of construction companies and clients such as property developers.

According to Ooi Kok Hwa (2009) “…there are many ways to dissect an annual report” and that the following points “are just a quick check on the financial health of any listed companies”.

“Income statement is the financial statement that shows the effects of transactions completed over a specific accounting period. In this statement, we have three key pointers: the current level of revenue; high growth in revenue; and the profits made in proportion to the level of revenue.

The current level of revenue indicates the size of a company. A company with revenue or sales of RM1bil is definitely bigger than one that has revenue of only RM100mil. In Malaysia, companies with revenue of RM500mil and above should be considered as more established companies.

High growth in revenue implies that the company has been expanding over the past period. Assuming the high growth in revenue will eventually translate into high growth in profits, we should invest in companies with higher growth in revenue because this may lead to higher stock prices. If the overall economy is expanding, avoid those companies that are showing a decline in revenue. This might imply that the overall operating activities of the companies are declining.

The profits made in proportion to the level of revenue indicate whether this company has high or low profit margins in its products. The profits here refer to the profit after tax or net income. We should invest in high profit margin companies because high profit margins will provide a cushion to the sudden change in operating environment. A company with revenue of RM1bil and profits of RM10mil is more likely to face tougher challenges in a stiff price competition environment compared with a company with revenue of RM100mil and profits of RM10mil. Balance sheet is the financial statement that shows a company’s assets, liabilities and owners’ equity at a point in time. The two main pointers in this statement are cash in hand and total borrowings.

Cash in hand refers to the cash or cash equivalent like fixed deposits. If possible, we should invest in companies with high cash in hand and zero borrowings. High cash in hand may imply that the company has high chances of rewarding shareholders with higher dividend payments. Besides, companies with high cash in hand have more financial stability than companies with very tight level of cash. This explains why most investment gurus like to invest in cash-rich companies.

Total borrowings include the short- and long-term borrowings. Here, we should check whether the company has reported any sharp increase in borrowings during the financial periods. Most companies need to increase borrowings to support their capital expenditure on any business expansion. However, if a company has been increasing its borrowings each year and the level has far exceeded one to two times the shareholders’ funds, unless its operating activities are able to support the repayments, the company faces very high financial risk. Cash flow statement shows the sources and uses of cash over the period. One very important pointer in this statement is the operating cash flow.

High operating cash flow implies that the company is generating cash from its operating activities. A healthy company should show high operating cash flow because this number will indicate how much actual cash the company has generated from operations during the period. We need to be careful of the companies that are showing profits but at the same time generating negative operating cash flows every year. This may imply that these companies have very high receivables. Any economic downturn may cause a sharp increase in provisions on bad debts”.

Wassalam.