RQS 303 QUANTITY SURVEYING STUDIO 3

INVESTIGATE THE LATEST RAFT OF CHANGES TO

QS ACT (AMENDMENT) 2015/ ACT A 1481 AND IN

RELATION TO NEW ENTRANCE TO THE INDUSTRY

AND HOW IT WOULD IMPACT THEM IN BECOMING

PRACTICING QS

PREPARED BY

SHAKHNAZAR BAIROV 123345

ZAKWAN FAIZ BIN ROSDI 131685

ONG LEAN WAN 124137

GAN BOON YANG 124004

WANG YANG XUEZHI 124066

PREPARED TO

ASSOC. PROF. SR AZLAN RAOFUDDIN BIN HJ. NURUDDIN

Amendments to QS Act ‐ Key Issues

• Introduction of 2-tier registration system

• Abolishing the citizenship requirements thus enabling foreign QS to register with the Board

• Omission of ‘temporary registered QS’

• New category of “QS Technologists”

• Shareholdings can held by non-QS – in the rules

• Introduction of Disciplinary Committee

• Introduction of Dispute Resolution Panel

• Some other minor changes / improvements to the Act

Two – Tier Registration

• Under the 2-tier registration, QS’s will be registered first as Professional

Quantity Surveyor (PQS); and shall be subject to further test to be eligible

for registration as Consultant QS (CQS).

• The entrance gateway is Provisional QS (previously Graduate QS)

• Under Guidelines to Registration (sanctioned under the Rules) - new

‘Experience Route’ for senior professionals to advance directly to APC level

for PQS registration

Two – Tier Registration ‐ Implications

• After passing the APC, one becomes a PQS and is allowed to practise as a

QS including signing off documents and QS work.

• To start a firm, one has to be a CQS who has passed further exams – on

Professional Practice and local laws

• Senior professionals with relevant qualification or experience can apply

through “Experience Route” – will cater mainly for foreign QS including

some locals.

Two – Tier Registration ‐ Implications

Criteria for Experience route in the GuidelinesRequired

Experience

Professional QS Consultant QS

Certified local

experience

APC Certified local

experience

PP part 1 &

2 and Int.Logbook CA

Accredited degree,

5 years relevant

experiences

1 year x / 1 year /

2 years (Ext

supervisor)

Non-accredited

QS degree or

membership of

approved QS

institution with10

years relevant

experiences

1 year x / 1 year /

2 years (Ext

supervisor)

Two – Tier Registration ‐ Implications

Tier 2 CQS exams:

Professional Practice Part I – Business Law & Accounts

• Business Management

• Business Law (company Act, partnership law, etc)

• Basic Business Accounting

Professional Practice Part II

• International Construction Contracts

• Construction Procurement Strategy

• HSE issues in Construction

• Business Ethics

Abolishing the Citizenship Requirement

• Sub-article 10(3) has been repealed in compliance with Government’s directives on liberalization for services

• However, the proposed amendments have incorporated several safeguards:

• 1. All QS’s (local or foreign) who wish to work in Malaysia must be registered with the Board;

• 2. Entry level of registration is Provisional QS with mandatory competency assessments

• 3. Must be physically present in Malaysia for 183 days prior to application

• 4. Annual permits with CPD requirements

Abolishing the Citizenship Requirement

• ‐ Implications

• All qualified non-Malaysians can apply for registration.

• In line with national agenda for autonomous liberalization

• Challenges young graduates may face:-

• Will there be stiffer competition from foreign students staying back to work as QS in Malaysia?

• Will there be many recently qualified foreign QS relocating to Malaysia?

• Will there be an influx of ‘low cost’ PQS from neighboring countries?

Disciplinary Committee

• Under the proposed amendment to the Act, all disciplinary hearing will be

conducted by the Disciplinary Committee (DC).

• New ad‐hoc panel to be appointed by the Board to mediate, adjudicate,

arbitrate or resolve and determine disputes NOT relating to professional

conduct or ethics

Sole Proprietorship, Partnership and Body

Corporate

• [7A(3)] – Sole proprietorship and partnership, all partners must

• be CQS.

• Shareholdings for Body Corporate

• Amended Rule 35H – A body corporate shall have:‐

• “Prescribed” means prescribed by the Rules made by Board

• Board of directors where at least 2/3 of its members are Consultant Quantity Surveyors;

• At least 70% of its share equity be held by CQS and the remaining equity may be held by anybody, person or bodies

• A minimum paid up capital of RM 50,000.00

• The person managing the day to day affairs of the body corporate must be a CQS, but may not be a director and (under the amended rules) shall be physically present in Malaysia for not less than 183 days in any one calendar year.

QS Technologists

•

• QS Technologists ‐ Implications

• Enabling clause for anyone with a cognate degree (but not enough QS core subjects) to register with BQSM.

• This includes those with Building Technology degree, Project Management or Construction Management degrees.

• An upward mobility option for this group

• QS Technologists with relevant experience can apply for Tier 1 registration as PQS and can proceed further to CQS

• Registration of QS Technologists is mandatory if one wants to practice

• Additional competition with graduate QS?

Other changes / improvements

• New [sub‐section 7(3)] – No QS is allowed to collect fee unless he has a permit to practice under the CQSP

• Other changes / improvements

• Fines and Penalties

• [Sec 7A (5) (bb) – fines for Consulting Quantity Surveying Practice due to disciplinary breaches increased from RM 50,000 to RM 100,000

• [Sec 24(h)] – Penalties for impersonating PQS, CQS remains at RM 50,000

• [Sec 25(1) – general penalty remains as RM 2,000

Registered Quantity Surveyor exceed five (5)

years experience allowed to choose whether to

register as PQS or CQS. Should they choose to

register as PQS, they should comply with all

prescribed procedures if they wish to upgrade

their registration as CQS as in the diagram

below.

REGISTERED

QS

5 years

PROFESSIONAL QS PROFESSIONAL QS

5 YEAR REGISTRATION 1 YEAR REGISTRATION +

EXAM + INTERVIEW

CONSULTANT QS

YESNO

Summary transitional registration category

Consulting Quantity Surveyors are as follows

REGISTERED

QS

QUANTITY SURVEYORS

(AMENDMENT) ACT 2015

> 2/3 DIRECTOR OF CQS

> 70% EQUITY BY CQS

OPTION 1

Maintain Existing Structure

OPTION 2

Restructure

- Upgrade category registration director /

partner of CQS

CONSULTING QS PRACTICE

YES

NO

For PQS has been approved and registered as a

partner / director before the amendment is

approved, the transition process is as follows

PARTNER / DIRECTOR

(With <5 years experience registered)

PROFESSIONAL QS

> 1 yr experience registered + exam +

interview

Meet the requirements of 5 years

experience registered

CONSULTANT QS

Registered Quantity Surveyor through

Academic scheme

REGISTERED QS

5 YEAR

PROFESSIONAL QS PROFESSIONAL QS

[Route Saving Clause 5 (a)]

5 yrs experience Fulfill registered as a

Registered QS / QS Professional

include practical experience

[Route 2 tier]

> 1 years experience registered + Exam +

Interview

CONSULTANT QS

NO YES