The Challenge Facing by the Consultant

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CENTRE FOR BUILT ENVIRONMENT (CBE)
KULLIYYAH OF ARCHITECTURE AND ENVIRONMENTAL DESIGN (KAED)

MASTER IN BUSINESS ADMINISTRATION (CONSTRUCTION BUSINESS)

MCB 6453 CONTRACT PROCUREMENT

THE CHALLENGE FACING BY THE CONSULTANT IN CONSTRUCTION INDUSTRY

Prepared By

: Nazarul Izham Bin Muhamad Razali

Ahmad Faiz Roslan S. Thanabalan

Lecturer

: Assoc. Prof. Sr. Dr. Wan Maimun Wan Abdullah

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CONTENT

Introduction Malaysian’s construction industry scenario The role of consultant in construction industries The challenge facing by consultant in construction industry Recommendation & conclusion

page 3 page 3 page 4 page 8 page 13

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INTRODUCTION The construction industry is often known as a very highly fragmented industry with a large number of activities involving different parties and professionals such as architects, engineers, quantity surveyors, contractor teams, suppliers, financiers and others. By being a fragmented industry, management efficiency and competency in the industry is needed to gain a higher level of competitiveness. The needs for such an approach has become more important and more pronounced, not only due to the increased size and complexity of building projects but also as a result of growing participation by international contractors. One of management solutions that has been widely used to improve efficiency of a project is through the use of Project Management Consultant (PMC) services. The use of its services has increased in every construction industry throughout the world. The main purpose of this paper is to bring up the issues on the challenges facing by the consultant in the construction industry and also the recommendation to overcome the problems.

MALAYSIAN’S CONSTRUCTION INDUSTRY SCENARIO Malaysia's rapid economic development and the transformation process from an upper middle income developing country towards the industrialized and developed nation status as envisaged in Vision 2020 has created the environment for the development of the construction industry. The construction industry has played an important role in establishing the infrastructure required for socio-economic development and in contributing directly to economic growth. The country's processes of integration, industrialization and urbanization have generated growth and changes in construction output. From its growth, there is some need for the Malaysian construction industry to change in the way they manage the projects. By considering these factors, the government of Malaysia under the Ministry of Finance had entrusted the Project Management Consultant (PMC) to manage government projects with the intention that projects under the management of PMC can be delivered efficiently on time, within budget and of the specified quality.

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Even though the practice of using PMC services is new in Malaysia, more widely applied only after Malaysia had successfully completed the Petronas Twin Tower Project and the KL International Airport (KLIA Project), there are more than 100 private companies of various sizes and track records registered under the Treasury that have procured Project Management Consultancy (PMC) services since 1999. The used of PMC service then had been widely applied in most of the government project until several issues and problem occurs. Presently, the problem which caused by some of the PMC firm had turned into the termination of PMC services for all government project and had effected most of the Project Management Consultant Firms.

THE ROLE OF CONSULTANT IN CONSTRUCTION INDUSTRIES The Project Management Consultant firm normally has the technical and management skill, expertise, resources and experience in managing construction projects and at the request of the client in the MOA, the Project Management Consultant has to provide Project Management services for the development of the Projects. In return, Project Management Consultant upon completion or after...
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