While the SPA is being prepared, Facilities Agreeemnt shall also be prepared at the same time. Facility Agreement is signed between the lending bank and borrower (Purchaser). Facilities Agreement is also preprared by the loan lawyer together with the SPA. The lawyer is in the bank's panel of lawyers. TGhis agreement contains the following :
a) particulars of parties i.e. the lendikng bank and borrower.
b) Type and purpose of facilities required by borrower.
c) Schedule of payment
d) Percentage of interest to be charged by bank for late repayment by borrower.
e) All matters on chargeable interest e.g. BLR + 1 %
This agreement requries the borrower to absolutely charge the property to the lending bank. Previosuly any proceeding against the developer needs the bank's consent in writing. Government has passed law now retrospectively making this illegal.
2013年10月5日星期六
Consultants (JKR)
After having discussed agreed on the framework of appointment, consultants are appointed by client by either one of the following 3 ways:
1) Consultant issues Letter of Appointment together with a duplicate copy to client who executes in acceptance and returns copy to consultant.
2) Client issues Letter of Appointment together with a duplicate copy to consultant who executes in acceptance and returns copy to client.
3) Both the client and consultant execute 2 copies of Memorandum of Agreements
- a standard agreement produced by the consultant's respective statutory board.
Each party keeps a copy.
The above 3 agreements shall basically contain the following 5 essential parts:
a) The amount of fees and reimbursable charges payable by client to consultants.
- Consultant can suspend services when non-payment from client.
b) Terms and conditions of appointment
c) Types of services provided by consultants.
d) Consultant's scope of works.
e) Mode of payment.
Current practice is for clients to appoint a key consultant, usually the architect who in turn appoints other sub-consultants. Architect will then has laibility over other consultants' design. The client pays the Architect for the comprehensive services and the Architect pays other consultants "back to back". This way,. the client needs deal with only a lead consultant and holds him responsible and liable for everything . Other consultant sare responsible and liable to the Architect.
The appointments of consultant by their respective Memorandum of Agreements are as follow:
A) ARCHITECT - Lembaga Arkitek malaysia (LAM) memorandum of Agreement consists of 2 parts:
i) Architects (Scale of Minimum Fees) Rules 2010.
ii) Memorandum of Agreement between The Client and The Architect for Professional Services.
B) ENGINEER- Board of Engineer Malaysia's Memorandum of Agreement contains 2 parts:
i) Fees / charges client is to pay Engineer
ii) BEM Model Form of Memorandum of Agreement between Client and Consulting Engineer for Professional SAervices.
C) Q.S. - memorandum of Agreement Between The Client and The Consulting Q.S. For Professional Q.S. Services
Termination of Professional Services
- Consultant who initiates termination gives client 60 days written notice with 30 days to settle outstanding fees. Consultant cannot suspend service during this period.
- Upon settlement of fees, consultant issues Letter of Release (LR) to client. If disupute on fee, to refer to arbhitration and to Board of professional who would within a week write to consultant waiving LR upon which client can proceed to appoint new replacement consultant.
- Terminated consultant if made submission to local authorities (L.A.) issues Letter of Withdrawal to L.A. withdrawing as Submitting Person without which new consultant cannot make submission / take over as Submitting Person.
FEES FPR [RPFESSOPMA; SERVOCES
Professional fees are paid by the clients to consultants when each of the different phases of works has been completed.. payments are initiaited when consultants issues invoices to clients. If consultants are individually appointed, fes shall be apid directly to them. if other consultants are appointed by the lead consultant, they should receive theri fees from the lead consultant back to back after lead consultant received client's payment.
some standard phases are as follow
a) Upon completon of schematic design 15%
b) Upon finalization of design 15%
c) On completion of submission drawing 15%
d) On completion of tender document 15%
e) On completion of contract documents 10%
f) During contract implementation 25%
g) Final completion 5 %
Classification of land
Land can be used for development os classsified based on usage into the following 4 types
1) AGRICULTURE
- Land alienated for agriculture use i.e. farming
- To start cultivation within 12 months of alienation and be continuously used.
- Can construct buildings used for purposes of cultivation only or a dwelling for farmer.
- Can apply to land office for conversion of landuse e.g. to Building or industry .
- For estate land, land administrator from land office has to get approval of Estate land Board.
2) Building
- land alienated for building purposes.
- To erect building within 2 years of alienation.
- Such land can be zoned for residential, commercial, passenger transport, exhibition, education or medical, etc. Can be for commercial cemetery only e.g. Nirvana in Nilai and Semenyih.
3) Industry
- used only for industrial purposes e.g. building factories, workshops, foundries, warehousing, docks, jetties, etc.
- Industry to commence within 3 years of alienation.
4) Golf Course
- A different category just for golf course.
Land for development
land can generally be categorized into the following 3 types based on ownership
1) State Land
a) Land owns by state government who leases aldn out for development, usually for a period of 99 years. known as leasehold land.
- leasehold can be applied and extended when lease near expiry, but under law, others can also apply and be given lease.
- Leaseholder can lease out land. leaser can sub-lease but sub-leasee cannot sub sub lease out.
- Leaseholder can only lease out maximum 15 years
b) State government owned land granted to user on a temporar basis for either 60 years or 30 years. Known as temporary ordiannace Lease ( TOL).
2) Privately owned land
Land granted or sold to owner by government on a permannent basis. Known as freehold land. Usually for rubber or oil palm plantations. Government no longer grant/ sell freehold land.
- Freehold can be leased for 99 years from the government but if lesse wants lease only part of land, then only 30 years lease allowed.
3) Reserved land
land can be reserved for Malay, to KTM, as forest, road reserve, etc. land not transferable but can be leased from government for use.
malay reservd lands own by non malays ( previously approved) can be transferred to non Malays but if transferred to malays, cannot trransfer to non Malays thereafter.
LAND ACQUISITION FOR DEVELOPMENT
LAND DEVELOPMENT regulated by statues ( laws passed by parliament), regulations ( regulative rules), policies and guidelines.
land for development might have been acquired long before actual development especially druing economic downturn when land prices are low. Financially capable developers usually accumulateland g such time. Developers with big landbank can choose their time adn type of development, usually druing period of lower development cost. leasehold or freehold land converted or unconverted can be purchased from private owners.
under NLC, property permannently fastened to land e.g. underground petrol tanks, formed part of land and cannot be removed by original land owner after land sold case law.
A) AGREEMENT TO PURCHASE
having assessed and decided to purchase a piece of land, the developer ( Purchaser) paus the landowner ( vendor) an Earnest Deposit of 2% of the agreed land price via either a real estate agent, if he brokers the sale or a lawyer. This deposit avoids Vendor selling to another party or the Purchaser changing his mind and not to purchaser. 14 working days is allowed for both parties to settle any outstanding mattrs. Default by Purchaser on this Agreement will result in forfeiture of his Earnest Deposit.
If Vendor defaults, he returns Earnest deposit to Purchaser and also com pensates an equal amount to Purchaser.
The Purchaser's biggest task in the 14 working days is to apply and secure a bank loan to finance the purchase. only after securing a loan will the Purchaser commit to go theough with the sale, which is to sign the Sale & Purchase Agreement (SPA), etc.
B) Sale & Purchase Agreement (SPA)
Once financing is assured and Purchaser's loan application is being processed, the lawyer shall prepare the SPA for execution by Vendor and Purchaser. SPA shall also be signed within the 14 working days specified in the Agremenet To Purchase. Failure by either party to sign within this time frame means default by him. With the signing of this Agreement, Purchaser to pay a total of 10% of purchase price to Vendor as Deposit Sum. Since 2 %has already been paid during Agreement To Purchase, now 8 % need sto be paid.
Earnest Deposit adn Deposit Sum though paid to ( banker's draft in favour of 0 vendor, draft kept by REA/ lawyer as stakeholder.
A period of 3+ 1 months is usually allowed to finalize the whjole transaction. 3 months is allowed to settle all maters. if either party needs to use the additional 1 month to settle oytstanding matters, interest curently at 8% per annnum shall be charged by the other party. After 4 months the deal is off.
This Agreement basically includes the following:
a) particulars of parties to Agreement
b) Land be free from encumbrances. Vendor;s lawyer need sto carry out discharge of charge of land if has earlier charged land to secure loan.
c) Forfeiture clauses, whereby if either party defaults e.g. not proceed with deal or takes more than 4 months, transaction be terminated. if purchaser defaults, his 10% Deposit Sum forfeiturd by Vendor. if Vendor defaults, he reutnr Deposit Sum to Purchaser adn compensates another 10%
d) Schedule of payment
e) Interest on late payment, now usually 8% per annum on a daily basis be imposed on outstanding payment.
f) Defaults caluses leading to determination by either party of this Agreement
g) particulars of land.
h) Conditions imposed by developer on what can / cannot be done on land. only apply to bungalow lots.
On Signing the SPA, Purchase can ask lawyer to lodge a private caveat with high court against any other dealings on the land by other parties while awaiting the documentations adn transfer of title to be effecrted. Caveat prevents other from staking a claim on the land or Vendor selling to another person or putting restruction on the land.
This caveat is held by the SPA lawyer. After completion of transaction or determination of SPA, the caveat is lifted.
important instryucment of Agreements be stamped under Tamp Act 1949 within 1 month of the later party's atestation.
Late stamping charged double .
1) Consultant issues Letter of Appointment together with a duplicate copy to client who executes in acceptance and returns copy to consultant.
2) Client issues Letter of Appointment together with a duplicate copy to consultant who executes in acceptance and returns copy to client.
3) Both the client and consultant execute 2 copies of Memorandum of Agreements
- a standard agreement produced by the consultant's respective statutory board.
Each party keeps a copy.
The above 3 agreements shall basically contain the following 5 essential parts:
a) The amount of fees and reimbursable charges payable by client to consultants.
- Consultant can suspend services when non-payment from client.
b) Terms and conditions of appointment
c) Types of services provided by consultants.
d) Consultant's scope of works.
e) Mode of payment.
Current practice is for clients to appoint a key consultant, usually the architect who in turn appoints other sub-consultants. Architect will then has laibility over other consultants' design. The client pays the Architect for the comprehensive services and the Architect pays other consultants "back to back". This way,. the client needs deal with only a lead consultant and holds him responsible and liable for everything . Other consultant sare responsible and liable to the Architect.
The appointments of consultant by their respective Memorandum of Agreements are as follow:
A) ARCHITECT - Lembaga Arkitek malaysia (LAM) memorandum of Agreement consists of 2 parts:
i) Architects (Scale of Minimum Fees) Rules 2010.
ii) Memorandum of Agreement between The Client and The Architect for Professional Services.
B) ENGINEER- Board of Engineer Malaysia's Memorandum of Agreement contains 2 parts:
i) Fees / charges client is to pay Engineer
ii) BEM Model Form of Memorandum of Agreement between Client and Consulting Engineer for Professional SAervices.
C) Q.S. - memorandum of Agreement Between The Client and The Consulting Q.S. For Professional Q.S. Services
Termination of Professional Services
- Consultant who initiates termination gives client 60 days written notice with 30 days to settle outstanding fees. Consultant cannot suspend service during this period.
- Upon settlement of fees, consultant issues Letter of Release (LR) to client. If disupute on fee, to refer to arbhitration and to Board of professional who would within a week write to consultant waiving LR upon which client can proceed to appoint new replacement consultant.
- Terminated consultant if made submission to local authorities (L.A.) issues Letter of Withdrawal to L.A. withdrawing as Submitting Person without which new consultant cannot make submission / take over as Submitting Person.
FEES FPR [RPFESSOPMA; SERVOCES
Professional fees are paid by the clients to consultants when each of the different phases of works has been completed.. payments are initiaited when consultants issues invoices to clients. If consultants are individually appointed, fes shall be apid directly to them. if other consultants are appointed by the lead consultant, they should receive theri fees from the lead consultant back to back after lead consultant received client's payment.
some standard phases are as follow
a) Upon completon of schematic design 15%
b) Upon finalization of design 15%
c) On completion of submission drawing 15%
d) On completion of tender document 15%
e) On completion of contract documents 10%
f) During contract implementation 25%
g) Final completion 5 %
Classification of land
Land can be used for development os classsified based on usage into the following 4 types
1) AGRICULTURE
- Land alienated for agriculture use i.e. farming
- To start cultivation within 12 months of alienation and be continuously used.
- Can construct buildings used for purposes of cultivation only or a dwelling for farmer.
- Can apply to land office for conversion of landuse e.g. to Building or industry .
- For estate land, land administrator from land office has to get approval of Estate land Board.
2) Building
- land alienated for building purposes.
- To erect building within 2 years of alienation.
- Such land can be zoned for residential, commercial, passenger transport, exhibition, education or medical, etc. Can be for commercial cemetery only e.g. Nirvana in Nilai and Semenyih.
3) Industry
- used only for industrial purposes e.g. building factories, workshops, foundries, warehousing, docks, jetties, etc.
- Industry to commence within 3 years of alienation.
4) Golf Course
- A different category just for golf course.
Land for development
land can generally be categorized into the following 3 types based on ownership
1) State Land
a) Land owns by state government who leases aldn out for development, usually for a period of 99 years. known as leasehold land.
- leasehold can be applied and extended when lease near expiry, but under law, others can also apply and be given lease.
- Leaseholder can lease out land. leaser can sub-lease but sub-leasee cannot sub sub lease out.
- Leaseholder can only lease out maximum 15 years
b) State government owned land granted to user on a temporar basis for either 60 years or 30 years. Known as temporary ordiannace Lease ( TOL).
2) Privately owned land
Land granted or sold to owner by government on a permannent basis. Known as freehold land. Usually for rubber or oil palm plantations. Government no longer grant/ sell freehold land.
- Freehold can be leased for 99 years from the government but if lesse wants lease only part of land, then only 30 years lease allowed.
3) Reserved land
land can be reserved for Malay, to KTM, as forest, road reserve, etc. land not transferable but can be leased from government for use.
malay reservd lands own by non malays ( previously approved) can be transferred to non Malays but if transferred to malays, cannot trransfer to non Malays thereafter.
LAND ACQUISITION FOR DEVELOPMENT
LAND DEVELOPMENT regulated by statues ( laws passed by parliament), regulations ( regulative rules), policies and guidelines.
land for development might have been acquired long before actual development especially druing economic downturn when land prices are low. Financially capable developers usually accumulateland g such time. Developers with big landbank can choose their time adn type of development, usually druing period of lower development cost. leasehold or freehold land converted or unconverted can be purchased from private owners.
under NLC, property permannently fastened to land e.g. underground petrol tanks, formed part of land and cannot be removed by original land owner after land sold case law.
A) AGREEMENT TO PURCHASE
having assessed and decided to purchase a piece of land, the developer ( Purchaser) paus the landowner ( vendor) an Earnest Deposit of 2% of the agreed land price via either a real estate agent, if he brokers the sale or a lawyer. This deposit avoids Vendor selling to another party or the Purchaser changing his mind and not to purchaser. 14 working days is allowed for both parties to settle any outstanding mattrs. Default by Purchaser on this Agreement will result in forfeiture of his Earnest Deposit.
If Vendor defaults, he returns Earnest deposit to Purchaser and also com pensates an equal amount to Purchaser.
The Purchaser's biggest task in the 14 working days is to apply and secure a bank loan to finance the purchase. only after securing a loan will the Purchaser commit to go theough with the sale, which is to sign the Sale & Purchase Agreement (SPA), etc.
B) Sale & Purchase Agreement (SPA)
Once financing is assured and Purchaser's loan application is being processed, the lawyer shall prepare the SPA for execution by Vendor and Purchaser. SPA shall also be signed within the 14 working days specified in the Agremenet To Purchase. Failure by either party to sign within this time frame means default by him. With the signing of this Agreement, Purchaser to pay a total of 10% of purchase price to Vendor as Deposit Sum. Since 2 %has already been paid during Agreement To Purchase, now 8 % need sto be paid.
Earnest Deposit adn Deposit Sum though paid to ( banker's draft in favour of 0 vendor, draft kept by REA/ lawyer as stakeholder.
A period of 3+ 1 months is usually allowed to finalize the whjole transaction. 3 months is allowed to settle all maters. if either party needs to use the additional 1 month to settle oytstanding matters, interest curently at 8% per annnum shall be charged by the other party. After 4 months the deal is off.
This Agreement basically includes the following:
a) particulars of parties to Agreement
b) Land be free from encumbrances. Vendor;s lawyer need sto carry out discharge of charge of land if has earlier charged land to secure loan.
c) Forfeiture clauses, whereby if either party defaults e.g. not proceed with deal or takes more than 4 months, transaction be terminated. if purchaser defaults, his 10% Deposit Sum forfeiturd by Vendor. if Vendor defaults, he reutnr Deposit Sum to Purchaser adn compensates another 10%
d) Schedule of payment
e) Interest on late payment, now usually 8% per annum on a daily basis be imposed on outstanding payment.
f) Defaults caluses leading to determination by either party of this Agreement
g) particulars of land.
h) Conditions imposed by developer on what can / cannot be done on land. only apply to bungalow lots.
On Signing the SPA, Purchase can ask lawyer to lodge a private caveat with high court against any other dealings on the land by other parties while awaiting the documentations adn transfer of title to be effecrted. Caveat prevents other from staking a claim on the land or Vendor selling to another person or putting restruction on the land.
This caveat is held by the SPA lawyer. After completion of transaction or determination of SPA, the caveat is lifted.
important instryucment of Agreements be stamped under Tamp Act 1949 within 1 month of the later party's atestation.
Late stamping charged double .
2013年10月1日星期二
Ringgit opens lower against US dollar
KUALA LUMPUR: The ringgit was traded lower against the US dollar today as buyers' appetite were more on the greenback's favour due to worries about fiscal and monetary policy in the United States, a dealer said.
At 9.14 am, the ringgit was quoted at 3.2570/2610 per US dollar from 3.2270/2300 on Friday.
The dealer said the sentiment has affected most emerging Asian currencies with the Indonesian rupiah and local note leading a regional slide.
"Last week, the ringgit's gains were capped by renewed expectations that the Federal Reserve may scale back its stimulus soon," the dealer added.
Against other major currencies, the ringgit fell against the Singapore dollar to 2.5903/5951 from Friday's close at 2.5691/5725 and was lower versus the yen to 3.3316/3374 from 3.2705/2752 last week.
The local currency weakened against the British pound to 5.2646/2724 from 5.1832/1893 last week and declined against the euro to 4.3947/4014 from 4.3577/3624 Friday.-- BERNAMA
At 9.14 am, the ringgit was quoted at 3.2570/2610 per US dollar from 3.2270/2300 on Friday.
The dealer said the sentiment has affected most emerging Asian currencies with the Indonesian rupiah and local note leading a regional slide.
"Last week, the ringgit's gains were capped by renewed expectations that the Federal Reserve may scale back its stimulus soon," the dealer added.
Against other major currencies, the ringgit fell against the Singapore dollar to 2.5903/5951 from Friday's close at 2.5691/5725 and was lower versus the yen to 3.3316/3374 from 3.2705/2752 last week.
The local currency weakened against the British pound to 5.2646/2724 from 5.1832/1893 last week and declined against the euro to 4.3947/4014 from 4.3577/3624 Friday.-- BERNAMA
Roles of CQS in Building COntract
PAM form 2006 :
- articles 5 states that the QS named shall perform the duties expected of his profession, and trhe Architect may be from time to time delegate such duties and authority of the Architect to the QS as the Architect deem fit
- Clause 3.2 to keep custody of the original tender document for inspection by EMployer and Contractor
- Clause 3.3 without charge give to Contractor one copy of the contract documents , two copies of the un-priced BQ
- Clause 11.5 all variation shall be measured and valued by the QS, Contractor must provides all necessary and assitance to QS to carry out the works
- Clause 11.6 (d) (ii) day-work records / vouchers verified by site staff shall be delivered to QS at weekly interval for assessment and costing weekly interval for assessment and costing
- Clause 11.6(f) provisional quantities int he contract document shall be re-measured by QS based on actual quantities executed .
- Clause 11.7 (b) send complete particulars of contractor's claim for additional expenses due to variation or works instructed byt Architect to QS
- Clause 11.8 QS shall access to all book, documents , report, papers or records in possession custiody or control of the Contractor for evaluation of his claims.
- Clause 12.0 contract bills
- Clause 24.1 (b) send to QS complete particulars of Contractor;s claim for loss and or expense .
- Clause 24.2 QS shall access to all book, etc. Contractor to provide copy foe to QS.
- Clause 24.4 QS to ascertain the amount of such loss and or expense.
- Clause 25.5 Qs shall carry out inspection of site jointly record extent f works executed and materials and goods delivered to siter within 28 days of determination of Contractor's employment days of determination of Contractor's employment
- Clauyse 25.6 QS to submit final account for agreement within 6 montjhs after determination of COntractpr's employment
- Clause 25.6 (a) within 3 months of the final acount receipt from QS and if there is no dispute; the final account as prepared by QS shall be conclusive and deem agreed.
- Clause 25.6 (b) if any dispute , the QS has to resolve the final account within 3 monthjs from receiving written notice from Contractor.
- Clause 26.5 written 28 days of determinatiuon of employment by Contractor, QS shall visit the site and jointly record the extrend of wrok executed, materials and goods delivered to site
- Clause 26.6 (a) QS to issue final account for agreement within 6 month of determination
- Clause 26.6 (b) within 3 monthjs of the final account receipt from QS and if there is no dispute : the final account shall be conclusive and deem agreed.
- Clause 26.6(b) if any dispute: the QS has to resolve the final account within 3 months from receiving written notice from Contractor.
- Clause 30.1 contractor to submit payment application with complete details and particulars to QS to enable him to ascertain the amount to be included in the interim certtificate.
- Clause 30.4 QS to submit to COntractor complete detail on Employer entitlement to set-off
- Clause 30.10 (a) within 3 months of the final account receipt from QS and if there is no dispute, the final account shall be conclusive and deem agreed.
- Clause 30.1 (b) if any dispute , the QS has to resolve the final account within 3 mounth from receiving written notice from COntractor .
- Besides the above duties of a CQS in Pam 2006 form as mentioned in article 5, the CQS duties includes advices on performances bond, insurances, LAD, EOT, arbitration.
Trumer to cut losses with product rollout
PETALING JAYA: Trumer International Bhd, a small medium enterprise operating an online trading portal, looks forward to narrowing its losses, as it rolls out more of its TruCare brand of toiletries.
Chairman Datuk Tik Mustafa said from operating a barter trade exchange and an online portal, the company has since expanded its business to distribution of nutritional supplement and medicare products.
"We're still in a development stage, developing products for the nutrition and wellness business. Last year, our losses widened to RM3.2 million from 2011's loss of RM2.4 million.
"Hopefully, as the sales of our TruCare brand of toiletries gain momentum, we should see our losses narrowing by the end of 2014," he told reporters after the launch of toothpaste, the first of product of the company's TruCare toiletries collection here yesterday.
Also present were Trumer company directors Yoong Voon Chew and Yee Chin Siong.
Trumer's nutritional supplements and toiletries business incorporates the usage of colloidal silver, a bioactive which in low dosage readily kills bacteria and promote body cell regeneration.
"Ag+ RapidHeal Factor is TruCare's proprietary formulation," Yoong said.
"In order to incorporate silver into a variety of our nutritional supplements and toiletries, the particle size of the silver has to be greatly reduced, all of the way down to the "nano" level," he explained.
Anti-septic formulations containing such silver salts were used by physicians in the early 20th century but their use was largely discontinued in the 1940s following the development of modern antibiotics.
Since the 1990s, colloidal silver has emerged as a popular bioactive compound in alternative medicine.
It is now increasingly being incorporated into dietary supplements and homeopathic remedies.
Chairman Datuk Tik Mustafa said from operating a barter trade exchange and an online portal, the company has since expanded its business to distribution of nutritional supplement and medicare products.
"We're still in a development stage, developing products for the nutrition and wellness business. Last year, our losses widened to RM3.2 million from 2011's loss of RM2.4 million.
"Hopefully, as the sales of our TruCare brand of toiletries gain momentum, we should see our losses narrowing by the end of 2014," he told reporters after the launch of toothpaste, the first of product of the company's TruCare toiletries collection here yesterday.
Also present were Trumer company directors Yoong Voon Chew and Yee Chin Siong.
Trumer's nutritional supplements and toiletries business incorporates the usage of colloidal silver, a bioactive which in low dosage readily kills bacteria and promote body cell regeneration.
"Ag+ RapidHeal Factor is TruCare's proprietary formulation," Yoong said.
"In order to incorporate silver into a variety of our nutritional supplements and toiletries, the particle size of the silver has to be greatly reduced, all of the way down to the "nano" level," he explained.
Anti-septic formulations containing such silver salts were used by physicians in the early 20th century but their use was largely discontinued in the 1940s following the development of modern antibiotics.
Since the 1990s, colloidal silver has emerged as a popular bioactive compound in alternative medicine.
It is now increasingly being incorporated into dietary supplements and homeopathic remedies.
The Practices of A Consulting QS
Qualification required under QS Act 1967 :
- A degree in QS recognized by BQSM
- 2 years of practical expericne under a supervision of a REgistered QS or ISM member
- Pass JTPC test
- a Registered QS
- 5 years after passing JTPC test only allowed to open own CQS firms
Types of BQSM membership :
- Registered Graduate QS - passess a regnized degree under JTPC
- Registered QS passed JTPC
- Temporary Registered QS - foreigner QS allows to practise as QS for a period of not more than 2 years
- Membership must be renewed annually with required CPD points.
Tyoes of CQS firm :
- Sole proprietor firm mean owes by a Registered QS
-partnership firm means two or more Register QS as partners
- body corporate firm measn two or more directors
- multi-disiplinary practices (MDP) means fiorm with equity holding by oither professional e.g. Architect. Engineer
- Foreigners are not allowed to set-up firm
- A CQS firm is allowed to open 2 branches in different geographical location
- branch offices must be managed full time by a Registered QS
- in case of MDP, the branch can be managed by a professional Architectr or Professional Engineer
Quantity Surveyor Act 1967
- the act provides for the establishment of the BQSM for the registration of QS and approval to BQSM for the registration of QS and approval to practise of firms or bodies corporate practising as CQS.
- for the regulation of the practice of QS
- QS ACT 1967 was enacted throughtout Malaysia in 1st December 1973
- No person is allow to call a QS if he / she is not a register QS
- Not allow to practice or carry on business or take up employments as a QS under any name, style or title containing the word Quantity Surveyor " Building Economist". Building Cost Consultant", "Project Cost Consultant" or the equivalent thereto in any language or bearing any other word whatsoever in any language which reasonably be construed to imply that he is a registered QS
- No person or body other than a registered QS who is residing and practising in Malaysia or firm or body corporate practising as CQS in Malaysia shall be entitled to carry out the following task:
a) prepare feasibility study reports
b) Preliminary estimates & cost plans
c) pre-qualification of contractor
d) bills of quantities
Quantity Surveyors Act 1967 :
e) tender estimates & reports
f) contract documents
g) valuation of works for interim, payment
h) variation and final accounts
i) provide professional services as project cost management, value management, risk management, facilities management, project management, construction management.
i) Construction claims managmeent, dispute resolution services, technical and construction cost auditing and condition survey. However, it shall not affect the right of any architect, engineer, licensed land surveyor, valuer and appraiser for the tiume being registered under the relevant laws of such professions.
Roles of a QS in a contracting firms:
- in submit tender based on BQ prepared by CQS or lump sum tender without BQ
- attend tender interview
- To check contract document before signing
- To submit progress claims
- To submit variation order (VO) claims
- To submit EOT / loss and expense claim
- Site measurement
- Managing sub-contract agremement with NSC / NS
- Final accoutns
- Disputes settlement
- All related contract administration of a project e.g. submitting performance bond. insurance of works .
Roles of a Consulting Quantity Surveyor
- Provide professional services to clients
- Preparationj of preliminary estimates and cost plans
- preparation of BQ and other tender documents
- preparation of tender reports and contract documents
- valuation of works in progress / variation of works
- preparation of final account
- Preparation of feasibility studies including icnome and expenditure cash flow
- Preapration of final costs for contracts based on provisional BQ
- pricing of BQ or pricing and agreeing schedules of rates
- Re- measurement whole or part of the building due to re-planning , change in layout
- Preparation and attendance for arbitration / litigation
- Preparation of document and report for pre-qualification of contractors .
Sona Petroleum May Announce QA Soon
It would be a triumph if Sona can announce a QA before CLIQ. UOB-KayHian seems to have gotten a scoop here. The said asset is already near production, which means less risk but also less super normal profit, but probably profitable anyway. This, if true, should perk up trading interest in Sona again.
UOB-KayHian - Sona Petroleum (SONA MK) which was listed back in end-July, would likely be announcing the acquisition of some qualifying assets (QA) soon. According to channel check, the company is looking at some of the O&G assets in SGX-listed RH Petrogas, which currently owned a full spectrum (i.e. from exploration to production) assets that are located in China, Indonesia and Malaysia. In line with Datuk Seri Hadian's guidance during the IPO launch, SONA would be keen to first buy up some producing assets which have steady cash flow to fund future acquisition of development and exploration blocks - which thus makes RH Petrogas 's assets do look appealing to SONA.
Not surprisingly, RH Petrogas would want to rope in a strategic partner given that sizeable capital would be required for the on going development for the Fuyu-1 block as well as continuous development and exploration drilling for the two matured basins i.e. Basin and Island PSC. With the projected capex of around US$30m to US$40m on the horizon, RH Petrogas would likely be doing few more cash call to fund the above developments, in our view.
Portfolio of RH Petrogas assets (yellow one is what SONA is keen on, in our view):
Valuations for RH Petrogas (NOT SONA OK!!):
For further detail on the assets, please refer to the appendix.
Assuming a 50% farm out from RH Petrogas on the above assets, the above acquisition (ex-block SK331) would easily cost SONA around US$79m (RM253m).We believe SONA would have no issues in funding the acquisition given the RM550m it sits on post IPO fund raising. Separately, it can't be ascertain at this juncture how much reserves is in Block SK331 given that RH Petrogas has just completed one round of seismic data on the onshore block.
The acquisition if materialize would be a positive catalyst to share price performance over the near term given that portfolio comprises of both 2P (Basin PSC in Indonesia)-cash flow generative as well as 2C (Fuyu-1 in China) - a development block on the verge of production.
Risk to our view:
1) There is a possibility fo SONA overpaying for the acquisitions in order to meet the timeline guided to the investment community given that crude oil price is at the top end. Management team would have to stay disciplined and evaluate risk return equation carefully in order to maximise returns to shareholders.
2) While we note is less riskier to acquire producing assets, the value creation is typically lower for producing assets.
3) On going capex would be extensive for the both the 2P (to maintain production rate) and 2C fields (to find new reserves) and a point to note is RH Petrogas is guiding around US$30m to US$40m for the current portfolio of assets they owned. One would expect cash call ahead for SONA.
Appendix:
1) Details of Basin PSC: The Basin PSC (Kepala Burung PSC) covers an area of 872sqkm in onshore West Papua. The PSC was inked on Oct 1970 and renewed in 1996 for another 25 years. The field is a mature field with more than 40 years in production. Based on RHPetrol announcement, the field produced 6,400bpd in 2012, up from 5,000bpd given continous development drilling to mitigate field's production decline.
Our valuation for the 2P blocks above (assuming US$6.00/brl) is largely derived from the transaction basis of RHP acquisiton of 60% and 33% interest in Basin PSC and Island PSC from Pearl Oil and Lundin Petroleum back in Sep 2010 which works out to a sum of US$74m for the 14.3m net reserves, valuing the transaction at US$5.35/brl. Note that crude oil price was around US$80/barrel back then versus US$100/barrel currently.
2) Details of Fuyu 1 block. The 254.9sqkm Fuyu 1 block is located in the Southeastern part of the Songliao Basin in Jilin Province. Songliao basin is essentially a large intracratonic rift basin hosting one of China's largest onshore petroleum producing regions. In Songliao Basin, major oil fields include Daqing, Fuyu, and Xin Min. Point to note, CNPC operated the largest Daqing field, with 2bn tonnes of oil being lifted since operation in 1960. For Fuyu 1 block, CNPC originally explored the asset in 1984 and was held back due to reservoir complexity and needs of EOR techniques which is non-existent back then.
RHP acquired the asset from Kingworld Resources (private vehicle of Tan Sri Tiong) in an RTO exercise back in 2009 for SG$110m. Our valuation on the 2C reserves is based on the current reserves of 35mmbls, which work out to be around US$2.5/barrels back then.
The field which has been under development for the pass 3 years would finally commence production late this year given the expected approval from the Chinese Government soon.
UOB-KayHian - Sona Petroleum (SONA MK) which was listed back in end-July, would likely be announcing the acquisition of some qualifying assets (QA) soon. According to channel check, the company is looking at some of the O&G assets in SGX-listed RH Petrogas, which currently owned a full spectrum (i.e. from exploration to production) assets that are located in China, Indonesia and Malaysia. In line with Datuk Seri Hadian's guidance during the IPO launch, SONA would be keen to first buy up some producing assets which have steady cash flow to fund future acquisition of development and exploration blocks - which thus makes RH Petrogas 's assets do look appealing to SONA.
Not surprisingly, RH Petrogas would want to rope in a strategic partner given that sizeable capital would be required for the on going development for the Fuyu-1 block as well as continuous development and exploration drilling for the two matured basins i.e. Basin and Island PSC. With the projected capex of around US$30m to US$40m on the horizon, RH Petrogas would likely be doing few more cash call to fund the above developments, in our view.
Portfolio of RH Petrogas assets (yellow one is what SONA is keen on, in our view):
Valuations for RH Petrogas (NOT SONA OK!!):
For further detail on the assets, please refer to the appendix.
Assuming a 50% farm out from RH Petrogas on the above assets, the above acquisition (ex-block SK331) would easily cost SONA around US$79m (RM253m).We believe SONA would have no issues in funding the acquisition given the RM550m it sits on post IPO fund raising. Separately, it can't be ascertain at this juncture how much reserves is in Block SK331 given that RH Petrogas has just completed one round of seismic data on the onshore block.
The acquisition if materialize would be a positive catalyst to share price performance over the near term given that portfolio comprises of both 2P (Basin PSC in Indonesia)-cash flow generative as well as 2C (Fuyu-1 in China) - a development block on the verge of production.
Risk to our view:
1) There is a possibility fo SONA overpaying for the acquisitions in order to meet the timeline guided to the investment community given that crude oil price is at the top end. Management team would have to stay disciplined and evaluate risk return equation carefully in order to maximise returns to shareholders.
2) While we note is less riskier to acquire producing assets, the value creation is typically lower for producing assets.
3) On going capex would be extensive for the both the 2P (to maintain production rate) and 2C fields (to find new reserves) and a point to note is RH Petrogas is guiding around US$30m to US$40m for the current portfolio of assets they owned. One would expect cash call ahead for SONA.
Appendix:
1) Details of Basin PSC: The Basin PSC (Kepala Burung PSC) covers an area of 872sqkm in onshore West Papua. The PSC was inked on Oct 1970 and renewed in 1996 for another 25 years. The field is a mature field with more than 40 years in production. Based on RHPetrol announcement, the field produced 6,400bpd in 2012, up from 5,000bpd given continous development drilling to mitigate field's production decline.
Our valuation for the 2P blocks above (assuming US$6.00/brl) is largely derived from the transaction basis of RHP acquisiton of 60% and 33% interest in Basin PSC and Island PSC from Pearl Oil and Lundin Petroleum back in Sep 2010 which works out to a sum of US$74m for the 14.3m net reserves, valuing the transaction at US$5.35/brl. Note that crude oil price was around US$80/barrel back then versus US$100/barrel currently.
2) Details of Fuyu 1 block. The 254.9sqkm Fuyu 1 block is located in the Southeastern part of the Songliao Basin in Jilin Province. Songliao basin is essentially a large intracratonic rift basin hosting one of China's largest onshore petroleum producing regions. In Songliao Basin, major oil fields include Daqing, Fuyu, and Xin Min. Point to note, CNPC operated the largest Daqing field, with 2bn tonnes of oil being lifted since operation in 1960. For Fuyu 1 block, CNPC originally explored the asset in 1984 and was held back due to reservoir complexity and needs of EOR techniques which is non-existent back then.
RHP acquired the asset from Kingworld Resources (private vehicle of Tan Sri Tiong) in an RTO exercise back in 2009 for SG$110m. Our valuation on the 2C reserves is based on the current reserves of 35mmbls, which work out to be around US$2.5/barrels back then.
The field which has been under development for the pass 3 years would finally commence production late this year given the expected approval from the Chinese Government soon.
订阅：
博文 (Atom)