Prasarana confirms HSSI picked as MRT check engineer. Part 2

PART 2

 http://hssmalaysia.com/

“HSSI has a total staff strength in excess of 600 including some 250 professionals in various disciplines of engineering. This multi-disciplinary team enables the firm to provide comprehensive services in all appropriate branches of engineering to government’s agencies, the private sector and multilateral institutions….”

First of all we have to understand that whatever the nature of a consultant is, even a law firm, medical centre or power plants, casinos, commercial centers, supermarkets, dairy farm and  stock exchanges, it is basically business. Business means making profit, making money.

The main rule of the game is to pay less for it and get more.

Now let me qualify myself. The following price estimates has got nothing to do with HSSI. It is just a logical thought based on my knowledge of things.

In the employment market, the employers will always want to get value for money. They employ more skilled and experienced people but will search for those that ask for lower salaries. This balancing act will be the basis of the basic rates in my estimate of the most probable “Independent Check Engineer” for the MRT project.

The total numbers of personnel in the consultant firm is in the region of more than 850. This is what the PRASARANA is apparently looking for in their choice of consultant with enough human resources.

The various projects/departments that have to be managed by the consultant firm with this workforce are on simple average of 8. (Geotechnical, Civil & Structural (C&S) and Electrical & Mechanical (M&E) covering infrastructure, residential, commercial and industrial developments).

The workforce will roughly be allocated like 112 for each department, but there could be more in one department and lesser in others. With the MRT project to be reviewed, there is no real need to employ extra hands as personnel could be selected from the existing pool of workforce.

HERE IT GOES, WE SHALL SEE THE PLAUSIBLE COSTS:

Let say the consultant employs 100 engineers and the head engineers are very few maybe 2 or 3 of them. These 100 engineers, salaries ranges from RM3000 to RM9000 average say RM6000

 Let us say they work for 12 months. 

Description Calculation Amount (RM)
Bosses salary 3 nos. X RM100K X 12 months  3,600,000 
Engineers salaries   100 nos. X RM6000 X12months X 1.2 (EPF/gratuity/ bonuses  8,640,000
Extra studies/research 5 studies x RM1 million  5,000,000
Stationery/Printing/ Office consumables   RM 20K X 12months     240,000
Office overhead RM 20K X 12months     240,000
 

Sub-total

17,720,000
Contingencies 5% of sub-total     886,000
 

Total

18,606,000
  Add profit 10%    1,860,600
 

GRAND TOTAL

20,466,600

 Say cost overrun at double the amount, the total amount is thus RM40,933,200

 So the PRASARANA/government is so kind, then give the Consultant a Lump Sum say RM50million.

                                                                                                            …….Cont’d PART 3

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