Contract Title :

Proposed Interior Design For The Lion Group Property Division New Office at Mezzanine
Level to Level 3 of The Office Block For Cadangan Pembangunan Yang Terdiri daripada :

1) 2 Blok Pangapuri Servis 17 Tingkat (Blok A – 136 Unit) dan 31 Tingkat ( Blok B-290 unit)
2) 1 Blok Bangunan Pejabat 15 Tingkat dengan 1 Blok Bangunan Podium 1 Tingkat dan 5
Tingkat Basemen di Atas LOT 692,Seksyen 57, Jalan Nagasari, Kuala Lumpur.

Client :
Lion Industries Corporation Berhad.
No 1, Jalan Nagasari,Off Jalan Raja Chulan, 50200 Kuala Lumpur.

Consultants Involved:
GDP Interiors Sdn Bhd Interior Designer
ARUP Jururunding Civil & Structural Engineers
Jurutera Perunding Valdun Sdn Bhd Mechanical and Engineers
Baharuddin Ali & Low Sdn Bhd Quantity Surveyors
Eurimage Sdn Bhd Contractor

Project No : 09-1146-LO
Contract Date : October 2009
Prepared By : ALIFF NAJMI BIN ZULKIFLI / 2017405794 / AP247 8A

CONTRACT DOCUMENT ANALYSIS / INA 638 PROFESSIONAL PRACTICE

LECTURER : ENCIK IKMAL HISHAM , RIBA IPDM

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Table of Contents

Front Page 1

Table of Contents ............................................................................................................................ 2

1. Introduction of Contract Document ................................................................................... 4

1.1. Definition of Contract
1.2. Contract Documentation Elements

2. Client’s Information ............................................................................................................ 5

2.1. About Lion Industries Corporation Berhad
2.2. Corporate Informations

3. Contract Front Cover .......................................................................................................... 9

4. Contract Content .............................................................................................................. 10

4.1. Letter Of Acceptance 11
4.2. Form of Tender 15
4.3. Instructions and Conditions of Tendering 19

5. Elements in Contract ........................................................................................................ 22

5.1. Preliminaries 22

5.1.1 Access to site

5.1.2 Preliminaries

5.1.3 Preambles

5.1.4 Employment of Labour

5.1.5 Constructional Plant and Equipement

5.1.6 Drawings

5.1.7 Documents and Shop Drawings

5.1.8 Performance Bond

5.1.9 Working Hours

5.1.10 Weekly Reports

5.1.11 Certificates and Payments

5.1.12 Noise, Vibration and Pollution

5.1.13 Contractor's Cost of Measurement of Variations

5.1.14 Neglect to Obtain Reliable Information

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5.1.15 Restriction of Persons to Site

5.1.16 Trespass

5.1.17 Overtime and Completion

5.1.18 Factories Act

5.1.19 Safety, Health and Welfare of Work People

5.1.20 Delays

5.1.21 Sheds etc

5.1.22 Removal of Debris and Rubbish

5.1.23 Conditions to be Observed When Working on Building

5.1.24 Completion

6. Bill Of Quantity.................................................................................................................. 35

6.1 Example of BQ for Preliminary Works 36

7. Demolition Works ............................................................................................................. 39

7.1 Summary of BQ for Demolition Works 40

8. New Works ........................................................................................................................ 42

8.1 Summary of BQ for New Works 43

9. Final Summary .................................................................................................................. 45

9.1 Summary of Final Works 46

10. Conclusion ........................................................................................................................ 47

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1. Introduction of Contract Document

1.1 Definition of Contract Document

A written documents that define the participitations, responsibilities, and duties under the construction
contract and are signed and sealed on each parties, the owner and contractor.

The contract documentation will give an ample of informations and agreements , to be able to complete
the projects and meet the target successfully.

1.2 Elements in Contract Documentation

• Contract : document or agreement that agreed between consultant and the owner to carry fit out work of
the agreed project

• Contract conditions : describing the legal rights and obligations by which each party (consultants and the
owner) must comprehend.

• Special contract conditions : special conditions that are an extension of the general conditions and apply
specifically to the project

• Bill of quantities (BQ) : a list of substances, parts and labour costs that are included in the contract. BQ
is valuing and controlling the differences between proposed cost and actual cost. BQ assists in the
preparation of progress that need to be claims.

• Drawings : A sets of the architectural drawings and structural plans drawings of the building done by
enginneers. The ID need to prepare a schematic drawings that desiring the client’s need.

• Specifications : A technical requirements that describe the project and requirements for materials used
and workmanship, and add clarity to the drawings. The specs will be referred by the contractor as their
guidance on site.

• Other documents : Anything that required for technical or pricing issues. Must be document, to avoid any
misunderstanding.

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2. Client’s Information

2.1 About Lion Industries Corporation Berhad

Lion Industries Corporation Berhad (LICB) was incorporated on 17 May 1924 as Sungei Way Dredging
Limited under the Companies Enactment 1917. Subsequently, it changed its name to Sungei Way Dredging
Berhad on 15 April 1966 and later to Supreme Corporation on 1 October 1976 and Lion Land Berhad on
21 October 1991. LICB was listed on the Main Market of Bursa Malaysia Securities Berhad on 29 December
1973 and adopted its current name on 18 February 2003.

LICB is involved in the manufacturing of long steel products, by Amsteel Mills Sdn Bhd (AMSB) and
Antara Steel Mills Sdn Bhd (Antara) at three steel mills. AMSB’s plant located in Klang, Selangor produces
billets for rolling into steel bars and wire rods while its plant in Banting Selangor, set up in 2001 produces
special grade billets for rolling into specialty bars and wire rods for automotive parts, mattress and
mechanical springs, turning parts, wire rods, wire ropes and other stringent applications. The third mill
operated by Antara in Pasir Gudang, Johor, was acquired in 2002 from Johor Corporation Bhd, and
produces billets which are rolled into steel bars and light sections such as angle bars, flat bars and U-
channels.

The steel bars, wire rods and sections produced by LICB are used in the construction, fabrication and
manufacturing industries.

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2.2 Corporate Informations

Y. M. Datuk Seri Utama Raja Nong Chik bin Dato’ Raja Zainal
Board of Directors
Abidin (Chairman)

Y. Bhg. Tan Sri Cheng Yong Kim (Managing Director)

Y. Bhg. Dato’ Kamaruddin @ Abas bin Nordin

Y. Bhg. Dato’ Nik Rahmat bin Nik Taib

Ms Yap Soo Har

Ms Cheng Hui Ya, Serena

Secretaries Ms Wong Phooi Lin (MAICSA 7013812)

Ms Wong Po Leng (MAICSA 7049488)

Company No. 415-D

Registered Office Level 14, Lion Office Tower

No. 1 Jalan Nagasari

50200 Kuala Lumpur

Wilayah Persekutuan

Tel. No : 03-2142 0155

Fax No : 03-2141 3448

Website : www.lion.com.my/lionind

Share Registrar Secretarial Communications Sdn Bhd

Level 13, Lion Office Tower

No. 1 Jalan Nagasari

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50200 Kuala Lumpur

Wilayah Persekutuan

Tel. Nos :03-2142 0155, 03-2141 8411

Fax No : 03-2142 8409

Auditors Deloitte PLT

Level 16, Menara LGB

1 Jalan Wan Kadir

Taman Tun Dr. Ismail

60000 Kuala Lumpur

Wilayah Persekutuan

Principal Bankers Malayan Banking Berhad

Affin Investment Bank Berhad

Bank of China (Malaysia) Berhad

Stock Exchange
Bursa Malaysia Securities Berhad ("Bursa Securities")
Listing

Stockname LIONIND

Bursa Securities 4235

Stock No.

LLBM.KL
Reuters Code

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3. Contract Front Cover

LION Industries Corp

Bhd

Nominate consultants,
Financier for the
project.

Project Title:

New Office at
Mezzanine Level to
Level 3.

Consultants
Involved:

The nominated
consultants for the
project.

Services and
Expertise :

Each consultants
carried their own
specialties that
contribute to the
project.

Contractor:

Kurimage SDN BHD

was nominated to
perform the project.

Figure 1 :Contract Front Cover

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4. Contract Content

Page Numbers:

Determine the
work section or
progress in the
document.

Content and
Descriptions :

Accordingly arranged
as needed in contract
documents elements.

Figure 2 :Table of Content

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4.1 Letter of Acceptance (LOA)

6 AUGUST 2009

The date of Letter Of

Acceptence, and the
calculation of
construction period.

CONTRACTOR
ADDRESS

Letter send by GDP

company, after
nominated as their
contractor.

MR FRANCIS CHAN

The person in charge.

Responsible for the
company and the
project.

RM 1,017,069.35

The total amount

needed for the project.

RM 31,455.75

Discounted by the
contractor.

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SITE INSPECTION

Agreed and accept the

site conditions by the
contractor.

CONSTRUCTION
PERIOD

Begin on 6th August

2009, and project
completion on 15th
Sept 2009.

Liquidated and
Ascertained Damages
(LAD) , after
completion date :

PENALTY , RM 5k per
day, if no releven
proof.

Extension of Time
(EOT) , granted if the
proof is releven.

POLICIES

Contractor are
required to submit
Insurance Policies and
Performance Bond.

As a guarantee.

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ZA MERICAN

Signed and agreed by

the owner or company
representative.

CONTRACTOR
SIGNATURE

Signed and agreed all

terms by the contractor
or representative.
Also,signed by witness.

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Conclusion for LOA :

GDP Interiors have prepared the timeline, terms and regulations to be fulfil for the project, with the
concerned of tender sum adjusted by the contractor. EURIMAGE SDN BHD, as a nominated contractor,
have read and agreed with the terms. And signed as for their acceptance to the project.

A letter of acceptance of contract offer is a document that writes as a formal way of agreeing to contract
terms. Write a letter of acceptance when taking a new job or when contracting with another company as
an agreement to execute the project. Mention a few deals related to the offer to both personalize the
message and open further discussion as needed.

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4.2 Form of Tender

PROJECT TITLE

As stated from the first

page.

CONTRACTOR’s
RESPONSIBILITY :

Supply manpower and

materials related to
the project, as stated
in tender document.

CONTRACTOR’s
AGREEMENT :

Agreed with the

contract and the price
from the BQ, quoted
by them.

CONTRACTOR’s
CONSTRAINTS :

The expenses and

works must within the
agreed budget.

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CONTRACTOR’s
MANAGEMENT :

Fixed project
completion of 6 weeks
duration.

CONTRACTOR’s
DECISION :

The contractor can

withdrawn the tender.
90 days from final date
submission.

CONTRACTOR’s
GUARANTOR :

Insurance Policies and

Performance Bond
submitted by
contractor. To secure
the project in the
future.

CONTRACTOR’s
COMFIRMATIONS:

Comfirmations on
documents and
drawings are true
copy.

CONTRACTOR’s
VOWED:

Agreements between
consultant under LOA.

CONTRACTOR’s
COST:

Tenderer need to bear

all the cost, during
tendering process.

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CONTRACTOR’s
SIGNATURE

Signature of tenderer.

WITNESS’s
SIGNATURE

Witness by people.

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Conclusion for Form Of Tender :

The form of tender is prepared by the client or their consultants and completed and signed by
the tenderer. It is a formal acknowledgment that the tenderer understands and accepts the terms
of conditions of the tender documents and any other requirements that are stipulated.

The total sum are agreed accordance with the firm price. Any executions and performance are referred
to contract agreement.

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4.3 Instructions and Conditions of Tendering

TENDER
INVITATION :

A set of drawings and

a set of tender
document with BQ

Tender Documentation
Fee are not refundable

EARNEST MONEY :

As a proof for their

convey towards the
project.

TENDER
SUBMISSION :

Tender document in
sealed envelop, and
deliverd to the address.

TENDER DATE
SUBMISSION :

Shall be instructed in
Letter on Invitation of
Tender.

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TENDER
REQUIREMENT :

One set of Tender

Document

Form of Tender,
completed and signed

Preliminary Works
Programme

The Management that

will involved and
responsible for this
project.
TRANSACTION :

In Malaysian Ringgit

TENDER
REQUIREMENT :

Guidelines in
tendering

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Conclusion for Instruction in Tendering :

Tenderes are are required to send a sets tender document, form of tender (completed,signed, witnessed
and dated), preliminary of works programme in a properly sealed envelope, prominently marked and deliver
to the address given.

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5. Elements in Contract

5.1 Preliminaries

5.1.1 Access to Site

Summary : Allowing the contractor to do some survey that needed to satisfy them and fulfilled their
study carefully on the site conditions and surroundings.

5.1.2 Preliminaries

Summary : Preliminary activities or discussions take place at the beginning of the project, often as a
form of preparation. The rates inserted by the contractor for the preliminary items need to apply of the
whole works, under the contract.

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5.1.3 Preambles

Summary : A preamble is an introductory and expressionary statement in a document that explains the
document's purpose and underlying philosophy. The description of works and materials must conjunction
with the preambles.

5.1.4 Employment of Labour Generally

Summary : The Contractor shall employ and ensure that their sub-contractors that deemed for the
project, are based on their skilled and working experienced.

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5.1.5 Constructional Plant and Environment

Summary : The contractor shall provide sufficient amount of plant and equipment that suitable for the
execution of the works. And, upon completion of the works, the contractor have to remove the
constructional plant and equipement immediately.

5.1.6 Drawings

Summary : All drawings required in building the structure (contract plans including Architectural and
Structural). These include drawings from relevant Consultants. Drawings indicate details shall be
submitted by contractors to ID for approval.

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5.1.7 Documents and Shop Drawings

Summary : Shop drawing is the contractor’s drawn version of information shown in the construction
documents. Shop drawings are typically required for prefabricated components. Examples of these
include: elevators, structural steel, trusses, pre-cast concrete, windows, appliances, cabinets, air handling
units, and millwork.

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5.1.8 Performance Bond

Summary : When the job is awarded to the winning bid, a payment and performance bond will then be
required as a security to the job completion. For example, a contractor may cause a performance bond to
be issued in favour of a client for whom the contractor is constructing a building. If the contractor fails to
construct the building according to the specifications laid out by the contract (most often due to
the bankruptcy of the contractor), the client is guaranteed compensation for any monetary loss up to the
amount of the performance bond.

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5.1.9 Working Hours

Summary : The Contractor has no restriction on the working hours on site, but they shall comply with all
rules affecting on work time and labour. Also considerations must avoid towards public disturbance.

5.1.10 Weekly Report

Summary : A report on site progress or site problems shall submitted weekly to ID.

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5.1.11 Certificate and Payments

Summary : A statement done by contractors shall be submitted to the ID for Interim Certificates, relating
on detail to the items of the work executed. A copy for employer and QS not more than 2 weeks before the
valuation is due.

5.1.12 Noise, Vibration and Pollution

Summary : All noises, vibrations and pollutions must be kept to an absolute minimum. Contractor must
take considerations of complaints from tenants and local authority notices.

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5.1.13 Contractor's Cost of Measurement of Variations

Summary : All cost incurred are allow for the contractor and settlement of variations and final accounts.

5.1.14 Neglect to Obtain Reliable Information

Summary : Negligence or failure on the part of the tenderer on specified reliable informations,shall not
relieve him any risks, liabilities and responsibility in excuting and handling over the works.

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5.1.15 Restriction of Persons to Site

Summary : Contractors shall need to take necessary precautions to prevent any damage and
responsible for restricting all persons under his watch.

5.1.16 Trespass

Summary : Trespassing shall be convey by the contractor.

5.1.17 Overtime and Completion

Summary : The payment of overtime to the clerk and labour has to be borne by him.

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5.1.18 Factories Act

Summary : All necessary Safety precaution must be comply by the contractor for workmen.

5.1.19 Safety, Health and Welfare of Work People

Summary : Safety first shall provided and all costs are incurred by the contractor.

5.1.20 Delays

Summary : Any future difficulty in obtaining labour, materials and site circumstances, the contractor are
deemed to have made an allowance for the job delays. And need to give report to ID.

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5.1.21 Sheds etc

Summary : A temporary offices, labour hostel, storage facilities shall provided along the construction
progress.

5.1.22 Removal of Debris and Rubbish

Summary : Provide proper disposal place for removing all site debris and rubbish from the site during
and at completion of project.

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5.1.23 Conditions to be Observed When Working on Building

Summary : The main access from the site must be kept clean all the time, minimise any noises and take
any safety precauses from bad incidents. Security procedure shall run during construction period. And, all
flammable materials shall keep safe from combustile area.

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5.1.24 Completion

Summary : Once completion of works, all constructions plants, equipments, building appliances,
apparatus need to be removed as soon as possible. All temporary space and equipments need to be
disconnected and dismantled. Any failure to perform this, a third party will deal of such clearing the mess
and will be deducted from the contractor’s final account.
ID and employers will not take responsible.

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6. Bill Of Quantities (BQ)

Quantity Surveyor is the person in charge in dealing with project expanses and preliminary costs. The
items of work are identified by the drawings and specifications in the tender document. The quantities are
measured in length, weight, volume, area, number or time. To prepare the bill of quantity, requires the full
design scheme and supported with specifications.

For this contract document, the bill of quantity are divided in 4 sections :

1. Preliminary of Works
2. Demolition Works
3. New Works
4. Final Summary ( Overall )

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6.2 Example of BQ for Preliminary of Works

Preliminary :
PERFORMANCE BOND

Insurance Policies and

Performance Bond
submitted by contractor. To
secure the project in the
future.

Amount : RM 2,500.00

TO COLLECT

Amount : RM 2,500.00

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Preliminary :
REMOVAL OF DEBRIS
AND RUBBISH

Removing debris and

rubbish from site

Amount : RM 2,000.00

TO COLLECT

Amount : RM 2,000.00

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Preliminary :
CONSTRUCTONAL PLANT
AND EQUIPMENT

Constructions equipments

Amount : RM 2,000.00

TO COLLECT

Amount : RM 2,000.00

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7. Demolition Works

Figure 7 : Demolitions Works

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INTERNAL WALL

Demolish Existing 150mm

brick wall including 2 nos
7.1 Summary of BQ for Demolitions Works Door, and remove
demolished material.

Approx 44m2 , Qty =in Item

Amount : RM 1350.0

WALL FINISHES

Hack existing wall tiles and

removed all hacked
materials from site, to
receive new finishes.

Approx 30m2, Qty = in Item

Amount : RM 650.0

FLOOR FINISHES

Hack existing floor tiles and

removed all hacked
materials from site, to
receive new finishes.

Approx 55m2, Qty = in Item

Amount : RM 1200.0

CEILING

Demolish existing ceiling and

remove all demolished
materials from site, to receive
new finishes.

Approx 185m2, Qty = in Item

Amount : RM 1300.0

TOTAL SUM

A whole total of price for this

section

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DEMOLISH WORKS at
MEZZANINE FLOOR

The overall demolition works

RM 6,730.00.

DEMOLISH WORKS at
FIRST FLOOR

The overall demolition works

RM 3,750.00.

DEMOLISH WORKS at
SECOND FLOOR

The overall demolition works

RM 5,200.00.

DEMOLISH WORKS at
THIRD FLOOR

The overall demolition works

RM 5,750.00.

TOTAL CARRIED TO FINAL

SUMMARY

The total demolitions works

for all floors required
RM 21,430.00.

Figure 7.1 : Summary of Demolitions Works

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8. New Works

Figure 8 : New Works

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WALL FINISHES

Clay bricks in cement and

8.1 Summary of BQ for New Works sand mortar, with plasticizer,
reinforced with and a layer of
welded calvanised wire
mesh, 6mm mild steel
reinforcement rod, the other
end bond with mortar joints
of brickwork.

150mm thick brick wall

(Type WD-02)
Qty = 36
Unit = m2
Rate = RM 46.00

Amount : RM 1656.00

PARTITIONS

Supply and install composite

dry wall partition comprising
12mm thick gypsum boards
complete with metal studs and
‘C’ channel framings. Trimming
,edgings , and fixing
accessories as per details
shown in drawing no, and
approcal of the architect:

PARTITION HEIGHT

2450 mm height
(Type WD-01)
Qty = 43
Unit= m
Rate = RM 125.00

Amount RM 5,375.00

TOTAL SUM

A whole total of price for this

section

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Total price amount of

work

TOTAL CARRIED TO FINAL

SUMMARY

The total new works for first

floor required RM 194,871.70.

Figure 8.1 : Summary of New Works

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9. Final Summary

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PRELIMINARIES

9.1 Summary of Final Summary The overall amount

RM 25,000.00.

DEMOLITION WORKS

The overall amount

RM 21,430.00

DEMOLITION WORKS

The overall amount

RM 1,000,095.10

Discount

TOTAL CARRIED TO FINAL

SUMMARY

The total new works for first

floor required
RM 1,017,069.35.

SIGNATURE

Approved by contractor and

wittness

Figure 9.1. : Summary of Final Summary

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10. Conclusion

In general, contracts provide duties and obligations the parties have agreed to but also provides
protections for the parties if they fail to abide by their obligations. Construction contracts include details
about the project and the work that will be done and how compensation will be handled related to the
project. When a contract has been breached by one of the parties, the other party will have important legal
remedies to consider.

However, it is equally important to understand how to address contract disputes and a breach of contract.
Both contract law and construction law are complex which is why it is important for the parties to a contract
to understand contract basics and what to do if a contract is breached.

Thank You.

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