AND CONTRACT MANAGEMENT
1. Introduction
There are many types of contraction contract. For example Lump Sum Contracts, Unit Price Contracts, Cost Plus Contracts, Design and Build Contracts & Concession Contracts. Today Concession Contracts are gaining popularity in the Malaysian construction industry. What is Concession Contracts about? It can be define as a business operated under a contract or license associated with a degree of exclusivity in business within a certain geographical area. A project based on granting by a Principal, usually by a government to the Concessionaire, who will responsible for the construction, financing, operation and maintenance of the facility at no cost to the principle, a fully operational facility. The owner of the concession will get pays either a fixed sum or a percentage of revenue to the entity with the ability to assign exclusive rights for an area or facility.
The public utilities such as highways, bridges and tunnels are the concession contracts which will often require special legislation and specific government approvals. All these projects are practicing BOOT project concept – Build, Own, Operate, transfer. This entire project is complicated and requires full participation of all the parties involved in indentifying and allocating project risk and responsibilities. It also needs the support from the political, legal, commercial, social and environmental issues.
The Automated Enforcement System (AES) is the road safety enforcement system to monitor all federal roads, highways and expressways in Malaysia. The objective is to reduce the number of road fatalities. The Automated Enforcement System (AES) is one of the Concession Contracts lead by The Transport Ministry that we going to review &discuss the key features, contracture structure and also the advantages and disadvantages.
2. Review based on a project
Background of the project
Base on the resource from JPJ about 6,000 lives are lost in Malaysia road accidents due to speed
There are many types of contraction contract. For example Lump Sum Contracts, Unit Price Contracts, Cost Plus Contracts, Design and Build Contracts & Concession Contracts. Today Concession Contracts are gaining popularity in the Malaysian construction industry. What is Concession Contracts about? It can be define as a business operated under a contract or license associated with a degree of exclusivity in business within a certain geographical area. A project based on granting by a Principal, usually by a government to the Concessionaire, who will responsible for the construction, financing, operation and maintenance of the facility at no cost to the principle, a fully operational facility. The owner of the concession will get pays either a fixed sum or a percentage of revenue to the entity with the ability to assign exclusive rights for an area or facility.
The public utilities such as highways, bridges and tunnels are the concession contracts which will often require special legislation and specific government approvals. All these projects are practicing BOOT project concept – Build, Own, Operate, transfer. This entire project is complicated and requires full participation of all the parties involved in indentifying and allocating project risk and responsibilities. It also needs the support from the political, legal, commercial, social and environmental issues.
The Automated Enforcement System (AES) is the road safety enforcement system to monitor all federal roads, highways and expressways in Malaysia. The objective is to reduce the number of road fatalities. The Automated Enforcement System (AES) is one of the Concession Contracts lead by The Transport Ministry that we going to review &discuss the key features, contracture structure and also the advantages and disadvantages.
2. Review based on a project
Background of the project
Base on the resource from JPJ about 6,000 lives are lost in Malaysia road accidents due to speed