Malaysian Civil Engineering Standard Method of Measurement MyCESMM Delivering Cost Effective Construction Projects Through Standardisation of Measurement YBhg. Prof. Tan Sri (Dr) Ir. Jamilus Hussein President/Chief Executive Officer KLIA Holdings Sdn Bhd 1 Malaysian Civil Engineering Standard Method of Measurement or MyCESMM 2 CIDB working together with the industry 3 came up with… 4 The uptake for Malaysia CESMM was rather cool 5 Companies continue to look at alternative standard of measurements which include UK CESMM 2 and 3 6 Some even used a modified version of the Building Works SMM... 7 With the proliferation of nonstandard method of measurement in civil engineering works… 8 Procurement for such works proved challenging for many parties 9 The absence of one SMM means that… 10 We end up having different rules for measurement, definition, coverage and description 11 Knowledge and experience gained from preparing BQ for one project cannot be replicated 12 …tougher time trying to figure out the exact nature of work to be done 13 Errors start to creep in and there will be a lot more uncertainties 14 More risks need to be mitigated 15 Uncertainties breed misunderstanding 16 Non standardization is never cost effective 17 Topic of my speech “Delivering Cost Effective Construction Projects through Standardisation of Measurement” 18 Let us get a few things in their right perspective... 19 We are essentially looking at long term performance of a project 20 Initial construction cost constitutes about 20% of total life cost 21 The rest 80% comes from the cost of operating and maintaining the facilities 22 Effective life cycle cost happens at the planning and design stage 23 To put in place procurement solution 24 Procured successfully, at the best price possible 25 …with zero or minimum conflicts and disputes 26 This is where standards come in… 27 We used to measure lengths by “depa” or “jengkal” and distance by “sehari perjalanan” 28 They lacked standards 29 Imagine… 30 Be prepared for endless disputes and claims 31 Without one standard method of measurement, there is bound to be problems with devastating consequences 32 So some kind of standards of measurement needs to exist 33 International System of Standards for measurement or the SI 34 Only three countries, the USA, Liberia and Myanmar have not adopted the SI 35 Glad that our industry is moving towards full SI standards 36 I still hear people talk about built up area of 2000 sq feet or land area of about 8,000 sq feet 37 High time we stick to only one standard of measurement The SI unit 38 Let us now shift our focus to the construction works Standard Method of Measurement 39 The Malaysian SMM for Building Works 40 …and was introduced in 1993 41 Modelled along the UK SMM 42 The first edition of the Standard Method of Measurement for Building Works (UK) in 1922 43 The most recent edition in UK is the seventh and referred to as SMM7 44 What about the Civil Engineering Standard Method of Measurement 45 In UK, the first attempt to measure civil engineering works was in 1933 46 The first properly instituted Civil Engineering SMM was done only in 1976 47 Following a report by CIRIA in 1967 48 Civil engineering BQs, apart from scheduling the components of the contemplated work 49 Should also contain charges related to the method and timing of the contractor’s operations 50 To be one of the most differentiating factors between Building Works SMM and Civil Engineering Works SMM 51 Civil engineering projects are traditionally large and complex, more expensive 52 Increasing mechanisation and automation are continuously being introduced… 53 Require a greater knowledge and skill for design, construction, measurement and valuation 54 Most civil engineering works also involve greater amount of uncertainty 55 “Excavation for deep foundation” “Laying underground services” “Ground and soil stabilization” “Marine and coastal structures” 56 …are seldom exact sciences 57 Code of measurement especially applicable to this class of work should be used 58 The Bill of Quantities has to consider not only the finished construction… 59 …but to allow the tendering contractor to include the cost of extensive temporary works or huge number of plants and machineries needed 60 Which do not form part of the final measured construction works 61 …is of course the CESMM3 62 Let us start focussing on today and the future 63 Dramatic call for the industry to be more professional to consistently review project procurement processes and procedures to make it more transparent 64 Not only procurement must be seen to be fair 65 More importantly, it must deliver value to clients 66 The contract documentation is usually comprised of… • Condition of Contracts • Contract Drawing • Specification and BQ 67 Majority of civil engineering contracts in Malaysia are let out on BQ 68 The reasons why BQ are prepared- 69 Allowing bids to be compared on equal basis 70 Since quantities have already been taken off… 71 This saves time and cost and ensures uniform quantities 72 Rates used as a fair basis for valuing variations 73 Progress payments can be evaluated much fairer 74 Use the BQ to order materials 75 Data from BQ used for cost analysis 76 These are solid enough reasons why Civil engineering works should use BQ 77 When these BQs are prepared using standard methods of measurement 78 Benefits 79 Promotes transparency 80 Every bidder has equal opportunity and understanding of actual work that need to be done 81 This is cost effective 82 There are no more uncertainties on what need to be done 83 Hence, real price can be tendered without the need to add cost to mitigate assumed risks 84 This is cost effective 85 Minimum disputes and claims is possible since everybody has an equal understanding of what need to be done and achieved. 86 This is cost effective 87 Standards facilitate benchmarking 88 Cost comparisons will be valid and data collected will be useable for future planning 89 The preparation of BQ can, and will achieve cost effective project procurement 90 This will inevitably go a long way to contribute to lower Life Cycle Cost of a project or a facility 91 Start building up our civil engineering BQs using MyCESMM 92 I would like to urge you to quickly get a firm grip on MyCESMM 93 We have less than four years before Malaysia will open all doors to practitioners from ASEAN countries to practice here 94 We must remain competitive 95 We must sustain our advantage 96 We must keep ourselves relevant 97 Future of procurement e-based with e-commerce and internet as the enabling technology 98 NeTI MyCESMM has been designed for seamless integration into *NeTI *(National e-Tendering Initiative) 99 Construction supply chain will be integrated through cooperative interoperable technologies like Building Information Modelling 100 Let us discuss the possibility of… 101 Having a single Unified SMM for building works, civil engineering and M&E engineering works 102 Think about it… 103 The construction industry must drive costs down and enhance productivity 104 Products of construction industry will largely determine the eventual price of… 105 A robust, efficient, productive and professional construction industry is the backbone of economic development of a nation 106 Adopt ONE Standard Method of Measurement Adopt MyCESMM 107 Malaysian Civil Engineering Standard Method of Measurement MyCESMM Thank you 108