PROFESSIONAL PRACTICE QSD289 COURSE: DIPLOMA IN QUANTITY SURVEYING GROUP: APD4B PUSAT KHIDMAT KONTRAKTOR

DATE OF SUBMISSION: 11TH FEBUARY 2010

STUDENTS NAME & MATRIX NO: MOHAMAD NASHRIN & 2009491428 AFIQ BIN BOLHI &

LECTURERS NAME: TUAN HAJI MOHD NAZIR BIN ISMAIL

Objective

Pusat Khidmat Kontraktor (PKK) was established in June 30 th 1981. During that time, it was known as PUSAKABUMI and placed under Prime Minister Department Implementation and Coordination Unit. In January 1987, it was later known as Pusat Khidmat Kontraktor in line with its functions and authority. In 27 October 1990, PKK was moved to The Ministry of Public Entrepreneur, further in year 1995, PKK became part of the Ministry of Entrepreneurial and Coo perative Development. The initial role was to help solve the problems faced by the Bumiputra contractors. The main objective of the centre is to provide the environment to help and encourage the development of quality, competiti ve and resilient entrepreneurs in all sectors as well as the inculcate the entrepreneurial and cooperative culture among Malaysians. Pusat Khidmat Kontraktor
Mission

To help develop quality of Bumiputra entrepreneurs

Vision

The existence of quality Bumiputra business and industrial community towards achieving Vision 2020

Purpose

The purpose of PKK in advisory services is to help Bumiputera contractors in several aspects which they face problems when carrying out government projects. Generally the problems involve experience, management, financial position, technical knowledge as well as external problems. Advisory services are only given to Bumiputera contractors who are carrying projects with governments agencies departments that do not have a special unit to look after the interests of Bumiputera contractors
Contractor Problems

Problems often faced by contractors include : y Problems originating from management weaknesses 1. Technical weakness 2. Financial management problem 3. Building material problem
y

External Problems 1. Building material supply problem 2. Problem with Government Agency/Department 3. Problem in getting employee 4. Problem with local people

CLASS & PAYMENT Classification, Dan Finance's Limit Registration Fee Class And Fee Of Civil Work Contractor

Class A B C D E F

Process Fee (RM) 100 100 100 50 50 50

Registration Fee (RM) 5000 3000 500 250 150 75

Renewal Fees Every 2 Years (RM) 2500 1500 250 125 75 38 (3 Tahun)

Finance Limit (Working Cost) Of Civil Work Contractor (Amendment follow Pekeliling Perbendaharaan Bilangan 14 Tahun 2002)

Class A B C D E F

Finance Limit (RM) Over RM 10,000,000 RM 5,000,001 Until RM 10,000,000 RM 2,000,001 Until RM 5,000,000 RM 500,001 Until RM 2,000,000 RM 200,001 Until RM 500,000 Until RM 200,000

Class and fee for Electrical contractors

Class I II III IV

Process Fee (RM) 100 100 50 50

Registration Fee (RM) 1500 500 250 150

Renewal Fees Every 2 Years (RM) 750 250 125 75

Finance Limit (Working Cost) Of Electrical Contractor

Class I II III IV

Finance Limit (RM) Over RM200,000 Until RM1,000,000 Until RM500,000 Until RM200,000

Other Fees Payment others imposed is to subsequent work :Head Added and Sub Head. A- RM 30.00 every added Head without any class. Registration Class Rise B- Difference between new class and class registration fee first * All payments should made on PKK Director's name with barred through either from four way under :-

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Bank Draft Postal Money Order Cashier's Order Postal Money * A official receipt will be issued to the company once payment received.

Scope of Work Head and Sub Head For registration Civil Work Contractor

Head Head I Head II Head III Civil Engineering Works Building Works Mechanical, Sanitary and Water Engineering Works

Head IV Other Specialist Civil Engineering Works Head V Head VI Quarrying Metal and Earth Supply, Cartage and Transport Forest and Land Development

Head VIII Telecommunication Works

ead And Sub-Kepala To Electric Contractor Registration

Head

Sub-Head 1 General wiring works 2 Control system wiring 3 4 Overhead line installation low voltage and underground cable Underground cable installation exceeding 1 KV up to and including 11 KV

5 Installation logi generation up to and including 1 KV 6 Installation logi high voltage generation 7 Underground cable installation which exceeded 11 KV 8 Head VII Overhead line installation including delivery tower 6.6 KV on

9 Cleaning cross to 6.6 KV and on High voltage equipment installation : 10 (a) to and including 11 KV (b) Over11 KV 11 Public street lighting installation 12 Airport rigging 13 Specific light installation such as stadium light and lamp area overflow, stage light and etc

14 Power supply system installation without interruption Electrical engineering system installation / low voltage 15 electronics addition such as attachment system and mover, security system etc 16 Sound System

COMPANY REGISTRATION A company, business, co-operative society or organization which is interested to be registered as a work contractor or electric contractor is required to be incorporated or registered in this country with one of the following departments: -

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Business Registration Company Registration Cooperative Development Department. Farmers Association Board. Company Financial Position In order to be eligible for consider ation for the requested class, a company should own a minimum capital as follows: Civil Work Contractor Registration

Class A B C D E F

Paid-up Capital /Minimum Accumulated Capital (RM) 600,001 400,001 100,001 35,001 17,501 10,000

lectric Works Contractor Registration

Class I II III IV

Paid-up Capital /Minimum Accumulated Capital (RM) 100,001 50,001 25,001 7,501

Equity Only companies, businesses, co-operatives or organizations which own 100% additional equity (equity held by Malaysian citizens) may be considered for registration for all class, heads and sub -heads. Companies, businesses, cooperatives or organizations which own foreign equity (non Malaysian citizen) may still be considered for registered subject to the following conditions :-

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Maximum Foreign Equity limited to 30% of the company's paid up capital. When Foreign Equity is present, Bumiputra equity should not be less than 30% of the company's paid up capital. Grants for Head and sub head I, II, IV are subject to the Treasury Circular No.15 year 1986 dated 25 July 1986 and amendments dated 6 January 1987. It needs to be included as a specific term at the companys registration certificate. Foreign citizens working with a company are required to obtain a work permit fro m the Malaysia Labour Department or the Malaysia Immigration department.

Involvement of More Than One Company An application could not be given consideration or for a registered company, the registration will be cancelled if :-

y y y

Members of the Board Of D irectors or share owners own shares exceeding 5% or RM50, 000 (whichever is less) in any company registered with PKK in the same work area or work head . Members of the management or technical qualified staff are actively involved in any company registered with PKK in the same work area or work head. Individual businesses enrolled in low registration class which set up partnership business or Private Limited Company / Berha d and subsequently registered with a higher class would have its lower class individu al business registration for the same work head that has been approved for partnership business or Private Limited Company / Berhad cancelled.

General Terms of Registration

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Registration approval is given based on information that has been presented by the company. Any appeals on the application results (approved/ rejected) need to be presented to the PKK Director within 3 months from the date of the offer letter for registration or rejection of application. Appeals received after this period will not b e considered. Any changes on the information should be submitted to PKK within 21 days from the day of change. PKK entitled to cancel or suspend a company registration without any notice if the company fails to submit the required infor mation. The original copy of registration certificate should be presented with tender or quotation documents. Registration is only approved for the period 2 years A company should submit an application for registration renewal three (3) months prior to the expiry date. A renewal application which is received after the registration expiry date will be considered as a fresh application and will be subjected to the processing fee and full registration fee. For the registration of Class B work contractors, the company should have a technical officer except for general head and sub -head only. For the registration of Class I electrical contractor, the company should have an Electrical engineer and Class A Wiring Cont ractor Certificate with the Electrical Inspection Board Department. Registration for class F contractors is specifically for company / business 100% Bumiputra

Areas Of Operation Throughout the Country

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Class A, B and C Class D and E Bumiputra status Class F Class I, II, III and IV In the state of registration Only Class D and E In the registered district administration or Federal Territory area. Only class F for voting of quotations and requisitions. Company Officials Company officials stated in the registration certificate are representatives authorized to sign all th e company's contract documents and to take or authorize in writing to company employees to take a tender form.

TERMS & CONDITIONS FOR COMPANY REGISTRATION A company, business, co-operative society or organization which is interested to register as a work contractor or electric contractor is required to be incorporated or registered in this country with one of the following departments

y y y y

Company Registration Business Registration Cooperative Development Department Farmers' Association Board Company Financial Position In order to be qualified to be considered for the applied class, a company should own a minimum capital as follows:

Civil Work Contractor Registration

Class Paid-up Capital /Minimum Accumulated Capital(RM) A 600,001 B 400,001 C 100,001 D 35,001 E 17,501 F 10,000
Electric Works Contractor Registration

Class Paid-up Capital /Minimum Accumulated Capital(RM) I 75,001 II 50,001 III 25,001 IV 7,501
ADVISORY SERVICE

Consultation Service Advisory service offered by PKK covers the following areas :-

Engineering Field

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Advise on carrying out work properly. Help contractors to understand plans and specifications. Resolve on-site technical problems. Help to plan project implementation. Help in use of suitable materials.

Contractual field

o o o o y o o o o o o o o

Help in procedural matters for Government contractors. Help contractors to understand the terms and conditions. Help contractor in matters related to financial claims and additional time. Help contractor in matters related to price of goods and work. Provide information list on government and private finance institutions and for contractor use. Help to accelerate the financial application process for contractors by providing information on the applying co ntractors. Provide supplier and building materials manufacturer list for contractor use. Act as the middleman between contractor and government agency if the contractor is facing a problem but the agency is not taking relevant steps to solve it or if there is injustice practiced by the government agency in matters related to work. Help contractors to find experienced workers if requested by them Help to solve problems related to the local authorities. Help appointed small contractors to secure progress fees from the main contractor. For contractors without much technical knowledge, PKK provides a list of courses and trainings organized by government agencies to be participated by contractors. PKK may help contractors to secure places to participate in those courses/ trainings.

Non-Technical field

BUMIPUTERA STATUS Definition of Bumiputra Company Currently the definitions of Bumiputera company by the National Financial council according to the Treasury Circular no 7/74 are as follows:

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A Company which the majority of the share (at least 51%) is owned by Bumiputra. and majority (at least 51%) of the company workforce constitute of Bumiputra. Or corporations or companies established by the federal or state governments and the subsidiaries of those agencies and companies meant for increasing the number of Bumiputera in trade and industry such as PERNAS, State Economic Development Corporations and their subsidiaries, subsidiaries of MARA etc. Bumiputra Recognition Companies which would like to apply for the Bumiputera status recognition should fulfill the conditions recorded in the Treas ury Circular no. 7 year 1974, which are: -

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Majority or at least 51% of members of the Board Of Directors are Bumiputra. Majority or at least 51% of members of the management are Bumiputra . Majority or at least 51% of shares are owned by Bumiputra. Majority or at least 51% of workers (clerical and building site) are Bumiputra. Class 'F' Contractors All class F contractors are Bumiputra. This mean class F contractors are Bumiputra contractors and not need to apply for the recognition of their Bumiputra status.

Kepala dan Sub-Kepala Untuk Pendaftaran Kontraktor Kerja Awam Kepala Kepala I Kepala II Kepala III Kepala IV Kepala V Kepala VI Kepala VIII Kerja Kejuruteraan Awam (Civil Engineering Works) Kerja Bangunan (Building Works) Kerja Kejuruteraan Mekanikal, Kejuruteraan Pembersihan dan Kejuruteraan Air (Mechanical, Sanitary and Water Engineering Works) Lain-lain Kerja Kejuruteraan Awam Spesialis (Other Specialist Civil Engineering Works) Kerja Pecah Batu, Pembekalan Tanah dan Pengangkutan (Quarrying Metal and Earth Supply, Cartage and Transport) Kerja Perhutanan dan Pembangunan Tanah (Forest and Land Development) Kerja Telekomunikasi (Telecommunication Works)

Kepala dan Sub-Kepala Untuk Pendaftaran Kontraktor Elektrik Kepala Sub-Kepala 1 Kerja-kerja pendawaian am 2 Pendawaian sistem kawalan 3 Pemasangan talian atas voltan rendah dan kabel bawah tanah 4 Pemasangan kabel bawah tanah melebihi 1 KV sehingga dan termasuk 11 KV 5 Pemasangan logi penjanaan sehingga dan termasuk 1 KV 6 Pemasangan logi penjanaan voltan tinggi 7 Pemasangan kabel bawah tanah yang melebihi 11 KV 8 Pemasangan talian atas termasuk menara penghantaran 6.6 KV ke atas 9 Pembersihan rentas untuk 6.6 KV dan ke atas

Kepala VII

10 11 12 13 14 15 16

Pemasangan kelengkapan voltan tinggi :(a) hingga dan termasuk 11 KV (b) melebihi 11 KV Pemasangan lampu jalan awam Pemasangan lampu lapangan terbang Pemasangan lampu khas seperti lampu stadium dan kawasan lampu limpah, lampu pentas dan sebagainya Pemasangan sistem bekalan kuasa tanpa gangguan Pemasangan sistem kejuruteraan elektrik/elektronik voltan rendah tambahan seperti sistem pemasangan dan penggerak, sistem keselamatan dan sebagainya Sistem bunyi

RELATED INFORMATION & DOCUMENTS A company, business, cooperative or organization when applying for a new application, class upgrade, additional head/ sub-head, special authorization change in company name or renewal of registration should also present information and documents related to the establishment and its activities along with the relevant application form. Important information and documents Important information and documents that must be enclosed with the application form are: For companies registered with the company registration (Sdn Bhd Or Berhad)

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Copy of form 9 Perakuan Perbadanan and 'Memorandum and Articles of Association'. Copy of form 13, 'Certificate of Incorporation on Change of Name Of Company' if there is a change in the company name. Copy of form 49, 'Return Giving Particular in Registration of Parti cularsWHICH HAS BEEN CERTIFIED BY THE COMPANY REGISTRAR. Copy of form 24, 'Return of Allotment of Shares WHICH HAS BEEN CERTIFIED BY THE COMPANY REGISTRAR. If company shares are also owned by the company / other companies, FORM 24 AND 49 THAT HAVE BEEN CERTIFIED BY THE COMPANY REGISTRAR and THE IDENTITY CARD NUMBER OF THE NOMINEE IN THE FORM 24 OF THE COMPANY/ COMPANIES must be presented.

y y y y y y y

Share transfer certificate that has been stamped by the stamping office, if involves transfer of share ownership. Name list of all KWSP form employees (Employees Provident Fund). List of names and identity card number, name of all shareholders, members of the Board of Directors and key personnel of the company. Copy of certificate or letter of approval owned by members of the Board of Directors, shareholders, company management member s that have been certified by Oath Commissioner/ Penghulu/ Group A government officers. Copy of Certificate of Loyalty issued by th e Electrical Inspection Board Department and certified by the Oath Commissioner, Penghulu or Group A government officers. Copy of Certificate of Registration as the wiring contractor issued by the Electrical Inspection Board Department and certifi ed by the Oath Commissioner, Penghulu or Group a government officers. Letter of Agency Right or support letters from manufacturer/ Distributor/ supplier of mechanical equipment under Head III.

or businesses registered with the Business (Individual Or Partnership)

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Form 'A' registration of business certified by the registrar. Form 'B' Registration of Changes in Business certified by the registrar. The latest Form 'D' 'Certificate Of Registry' certified by the registrar. Registered Partnership agreement letter certi fied by Oath Commissioner or Group 'A' government officers/ Penghulu. Bank statement under the business name for the last three (3) months. Confirmation letter of financial facilities under the business name issued by the banks or other financial instituti ons. Copy of certificate of savings or shares under the business name. Letter of permanent property assessment under the business name that is made by an accredited valuer (for individual business es, it can be done under the owners name) Lists of all management team, employees and business KWSP form. Identity card number of all Shareholders, Management Members and key personnel of the company. Copy of certificate or letter of approval owned by the owner, shareholders, management members and company emp loyees certified by the Oath Commissioner, Penghulu or Group A Government Officers. Copy of Certificate of Loyalty issued by the Electrical Inspection Board Department to the business competent employee, certi fied by the Oath Commissioner, Penghulu or group A government officers. Copy of Certificate of Registration as the wiring contractor certified by the Oath Commissioner, Penghulu or group A governme nt officers.

y y y y y y y y y y y y y y y y

Letter of Agency Right or support letters from supplier/ distributor of mechanical equipmen t under head III. Letter from the relevant government departments related to the sub -head under head III. For cooperatives or organizations registered with the Cooperatives Development Department or the Farmers Association Board Form of acknowledgement or Certificate of registration of cooperative/ organization with the Cooperatives Development Department/ Farmers Association Board A copy of cooperative/ organization establishment legislation. Letter of support for application by the Cooperatives Developm ent Department/Farmers Association Board A copy of the minute for the latest meeting showing the appointment of members of the Board of Directors or committee members of Cooperative/ organization. A copy of the cooperative/ organization latest annual repo rt that has been audited. Bank statement under the name of the cooperative/ organization for the last 3 months. Letter of confirmation of financial facilities under the name of the cooperative/ organization issued by the bank or other fi nancial institutions. Copy of Certificate of savings or shares under the name of the cooperative/ organization. Letter of assessment of fixed price under the name of the cooperative/ organization which was made by an accredited valuer A name list of shareholders who own more than 5% of the accumulated capital. Copy of certificate or letter of approval owned by the members of the Board of Directors, Shareholders, company management members certified by the oath Commissioner, Penghulu or Group A government officers Copy of Certificate of Loyalty issued by the Electrical Inspection Board Department to the companys competent employee, certified by the oath Commissioner, Penghulu or Group A government officers. Copy of Certificate of Registration as the wiring contractor issued by the Electrical Inspection Board Department to the companys competent employee, certified by the oath Commissioner, Penghulu or Group A government officers. Letter of Agency Right or letter of support from the manufacturer/ distributor of mechanical equ ipment under head III. Additional information and Document Additional information and documents that may help an application for all types of companies, business, co -operative society or association are as follows :-

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Letters of confirmation regarding fin ancial facilities. The companys latest financial statement (Balance Sheet and Profit And Loss Account). Letters of confirmation from the relevant parties regarding the experience of management staff related to the application. Receipts of purchases of equipment/ plants and letters of vehicle registration (Registration Card) owned by the company. Letters of confirmation on equipment/ vehicles rental facilities. Letter of confirmation on credit facilities of building material. Letter of Acceptance of tender for the accepted project. Certificate of completion of work for completed works. Letter of subcontract agreement for projects obtained through sub -contract between a main contractor and a sub -contractor and the letter of acceptance by the project main cont ractor must be presented.

FUNCTION PKK's roles and responsibilities are as set by by the Government on 11 April 1984, and fall into four main roles, namely :-

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Registration centre and related matters for all contractors at federal and state level. Award Bumiputra status to qualified contractors. Reference centre for contractors. Provide advisory service and aid to Bumiputra contractors in implementing contracts. This is limited to contracts for service s at Government departments/agencies that do not have such advisory service.

BACKGROUND Contractor Service Centre (PKK) was established in 30 June 1981. It was then known as Contractor Services Corrdination Centre (PUSAKABUMI) and placed under the Prime Minister Department Implementation and Coordinati on Unit. In 1 January 1987, it was later known as Contractor Service Centre (PKK) inline with the expansion of its functions and authority. In 27 October 1990, PKK wa s moved to The Ministry of Public Entrepreneur, further in year 1995, PKK became part of t he Ministry of Entrepreneurial and Cooperative Development. The initial role was to help solve the problems faced by Bumiputra contractors. Objective The main objective of the centre is to provide the environment to help and encourage the development of qu ality, competitive and resilient entrepreneurs in all sectors as well as the inculcate the entrepreneurial and cooperative culture among Malaysians.

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OBJECTIVE Purpose PKK's purpose in giving advisory service was to help Bumiputra contractor in some aspect which Bumiputra contractor face problems while carrying out Government project. By general problems is from experience aspect, management, financial position, technic al knowledge beside external problem. Advisory service only given to Bumiputra contractor which carried o ut projects with Agency / Jabatan devoid Government unit specifically for care Bumiputra contractor's interest. Course program / training to same as given emphasis contractors in order to intend Business Community and Perindustrian Bumip utra (MPPB) And Bumiputra Middle Class Group. Course program / PKK's training would give attention to : -

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Giving basic training to keen public contractor future to get Class F's certificate to D. Open space to individuals or contractor future especially those has no knowledge and technical expertise and management involve self in building contractor field such as school leaver, higher learning institution, training and others institute. Provide management courses like finance, contract or motivation to Class C's public contrac tors on to increase other specialization field so succeed be quality contractor, viable and are able competitive in national and international level.