Definition of Value Engineering

• Value Engineering can be defined as an organized approach to providing the necessary functions at the lowest cost. 
• From the begining the concept of value engineering was seen to be cost validation exercise, which did not affect the quality of the product. 

2nd Definition 

• Value Engineering can be defined as an organized approach to the identification and elimination of unnecessary cost. 
• Unnecessary cost is cost which provides neither use, nor life, nor quiality, nor appearance, nor customer features. 

Other definitions 

• Value Engineering is not a design or a cost-cutting exercise. 
• VE is a creative, organized effort, which analyzes the requireemnts of a project for the purpose of achieving the essential functions at the lowest total costs ( capital , staffing, energy, maintenance) over the life of the project. 
• Through a group investigation, using experienced, multi-disciplinary teams, value and economy are improved throught the study of alternate design concepts, materials, and methods without compromising the functional and value objectives of the client. 

Value Engineering is concerned witht he achievement of necessary fucntions at minimum cost without determine to quality realiability, performance or delivery

• VE is a tight, technical discipline with a very clear focus on cost. Dr Srtuart Green says that that the two assumptions are : 
• function is an objective characteristici 
• all solutions have the same level of functional performance and can be compared in terms of cost 

Key Characteristics

• Value management has the following key characterisitcs 
• A sopecific methodology 
• Based upon a creative problem solving approach 
• Involves key stakeholders in a managed team approach 
• focuses on function ie. what it must do, not what is 
• focus on achieving value-added solutions 
• based upon on integration 

Introduction to Value Engineering

• Value Engineering is a set of dsiciplined procedures designed to seek optimum value for both initial and long-term investment. 
• First utilized in the ma nufacturing industry during world War 2, it has been widely used in the construction industry for many years. 
• Value Engineering (VE) is a function-oriented technique that has proven to be an effective management tool for achieving improved design, construction, and cost-effectiveness in various transportation program elements. 
• Value management may be described as a structured, analytical process for developing innovative, holistic solution to complex problem 

Application of VE 

• Applications of value Management to government projects include but are not restricted to : 
• Establishing and verifying project objective analysing project brief 
• Optimising design solutions
• Resolving conflicts and improving communication and 
• Creating and analysing a range of options for executive considereation 

PWD FORM OF CONTRACT WITH BILLS OF QUANTITIES - FORM 203A ( Rev. 1/2010)

This is a Standard Form of Contract used in government- funded projects. The Contract was last revised in 20007 from the previous revision in 1983.

THE PWD Form has 4 sections, namely:

1) TAble of Contents.
2) Attestation sectrion.
The following is some salient points peculiar to the PWD Form in this section:
- Contract No.
- Expenditure be met from / which government agency.
3) Conditions of Contract.
4) Appendix to the Conditiosn fo Contract.

Point to note:
- may have different Government officers referred for different clauses.
- minimum value of works done before first Interim Certificate issued.
- minimum value of works done before subsequent interim Certificate issued.

Other JKR Standard Form of Contracts are:

A) Form 203 (Rev.2007) - Contract based On Drawings and Specs.
B) Form 203N (Rev. 2007) - Sub Contract for NSC.
C) Form 203P ( Rev. 2007)  - Sub Contract for NS.

Bank Guarantee For Performance Bond

- As security against Contractor;s due performance
- If Contractor cannot secure Guarantee, deemd opted for Performance Guarantee Sum (PGS)

Guarantor guarantees the following, to the Government :

1. On Government's first writeen demand on this Bond, Guarantor to pay Government amount demanded, notwithstanding contestation by Contractor/ Guarantor/thrid party. Total demands not exceed Bond amount. 
2. Government can demand the Bond partially. upon payment, bond amount be reduced accordingly 
3. Guarantor cannot be discharged from this Guarantee by any means except full compliance. 
4. This Gurantee is irrevocable and expires at end of 12 months after completion of DLP or issuance of CCMGD, whichever later + 4 weeks. 
5. If this Agreement is determinated, all obligations and laibilities og Guarantor ceases. 
6. All Government's claim for Bond be received by Guarantor latest within 4 weeks from expiry date of Guarantee. 

Therefore validity period of Guarantee equal period of Contract + DLP / CCMGD + 12 months + 4 weeks for final check / demand. 

Note: 

- Guarantor be government approved bank or finance company or isurance company/ Takaful which Contrctor need pay a premium to secure. 

- I Contractor cannot get guarantor , PGS allowed in lieu. 

Please Dont Repair your car at Yun Fah Auto Services !

This shop is located at manjalara Kepong. As last time I forgot to switch off the light and the car have run out of battery. And my car just park infont of this shop. After that I ask the boss to help me jump start and take about 30 second and the boss charge me RM 100 for the services. And did you think RM 100 is reasonable for 30 seconds simple jump start services ?

Conditions of Tendering

3.  If any tenderer:

a) withdraws tender before expiry Tender Validity period / Extended period
b) imposes additional terms, conditions or stipulations after closing date of tender
c) refuses to accept Contract when offered or deposit Performance Bond ( after having opted for it in Form of Tender)

Government, without prejudice its other rights, can take disciplinary action or cancel tenderer's registration as Government contractor.

4.  No unauthorized alteration or addition is allowed in Form of Tender or other Tender Documents.
5. (d) Government shall not reimburse any tenderer for expenses incurred in preparation of tender, e.g. for travelling.
6. If tenderer finds discrepancy between Tender Documents adn Tender Table Documents, tenderer to apply in writing to S.O. for correction, not later than 7 days before Closing of Tender. S.O.'s correction be issued in the form of Tender memorandum, to all tenderers which ten forms part of Tender Documents.
7. Tenderer deemed inspected Site/ surroundings on nature of ground/ sub-soil form, means of communication with / access to Site, etc. and obtained info. as to risks, contingencies, etc.
8.  Tender Validity period is 90 days which can be extended by mutual agreement .
10(a) Performance Bond be 5% of Contract Sum. Failure of Contractor to deposit Bond by Date of Possession of Site, entitles Government implement performance Guarantee Sum (PGS)