CHAPTER 1

INTRODUCTION

1.1 Company Background

This project is conducted under the supervision of BENZ Corporation. BENZ
Corporation is establish 2013. This company is build based on inspiration by the Chief
Minister of Sarawak, Tan Sri Datuk Patinggi Haji Adenan Satem. The inspiration is
that there are not enough local company who are willing to take the risk in establishing
a company. Futhermore, the company can help the economy of Sarawak state itself. The
companys base location is in Miri, Sarawak. This company main objective is to help the
growth of Sarawaks locals in conducting business and construction. BENZ in the
companys name is stands for Bumiputera Environment and Society Corporation
(BENZ). The companys logo is shown in Figure 1.1. The company has a motto that
helps remind it about the companys goal. The motto is for the company is Build to
Enhance. It means the company is establish to enhance the socioeconomic in Sarawak,
the ecosystems and the residents of Sarawak state.

Figure 1.1: The logo of BENZ Corporation

1.2 Overview of Project

Renovation of Miri Public Park is a project from BENZ Corporation to renovate the
current park in order to attract more tourist to the park. The location of the current
park is at Miri, Sarawak. The Miri Public Park is located 3km from City Centre, Miri
Public Part is a huge family park with childrens playground, botanical garden, soft
adventure activities and jogging trails. The park is dotted with stone carvings and
sculpture, overlooked by a towering wooden walkway leading to an observation
platform. The area for the project is approximately 1 hectare. Our company is chosen to
renovate the Miri Public Park by the Miri City Council (MCC). The renovation for the
park is to increase the current capacity of the park. The current park is crowded during
holidays. The project will enhance the landscape with a fish pond and artificial
waterfall. This will furthermore beautify it along with various flowers that are colorful
and eye-catching. With the renovation of Miri Public Park, it is expected it will be a

tourist

attraction from locals even from Malaysias closed neighbor, Brunei. This will increase
the socio-economy of Miri as well as it title as Sarawaks Bandaraya Peranginan. With
the introduction of fitness ground equipped with the latest fitness equipment,
reflexology walk path, wet park and dry park, this will help strengthen various
community groups overall healthy lifestyle. Especially the residents of Miri City.
Figure 1.2 shows the current Miri Public Park wet park.
3

Figure 1.2: The current Miri Public Park wet park

For the renovation of the Miri Public Park, the park is design with consultation of
local engineers. There are several added when designing the plan. The Miri Public Park
renovation plan is shown in Figure 1.3.

4
Figure 1.3: The Miri Public Park renovation plan

1.3

Project Goals
For BENZ Corporation, the project goals are essential in completing the projects.
The project will be based on the goals that the company have set.
The goals for BENZ Corporation project are:
i.

To restore ecological integrity, through the protection of natural resources and

natural processes in the Miri recreational park.

ii. To protect Miri recreational park so that the present and future generations will
have opportunities to connect with nature and to support its conservation.
iii. To strengthen various community groups overall healthy lifestyle.
iv. To enhance the public knowledge and appreciation for the natural beauty of open
space and the environmental of ones surroundings.
v. To elevate the number of the total tourist engaged with Miri recreational park.

1.4

Policies
Policies is an important in conducting any business. This defines the rules of
operations in the business. In this project, there are several policies that have been
establish. The policies helps the project to progress smoothly.
i.
ii.
iii.
iv.

1.5

Prior approval of project manager

Sent the budgets and schedule reports to the project sponsor
Have sufficient experience, skills, available time to manage the project
Signed off by prior to project implementation

Actions
There are several action taken to make this project comes true. In includes seeking
for sponsorship, survey the site of project which is Public Park Miri. Other details
regarding the action taken for the project to progress are as follows:
i.

Planning
Identify location, propose design, provide cost estimation, and provide report for
approval

ii. Organizing
Identify and state the equipment to add on
iii. Commanding
Giving direction to companies
iv. Coordinating
Distribution of tasks to all the employees, workers and contractor
v. Controlling
Monitor progress, evaluate in terms of safety

1.6

Allocation
The resources provided by for project is utilized properly in order the project
to run smoothly throughout the time taken to complete the project. The allocation
6

given is distributed equally or depends on the requirements that it needs to continue

the project. The summary of all aspects in allocation are shown on Table 1.1

Table 1.1: Summary of allocation

No

Allocation

Description

aspects
1

Budgets

The

project

is been

given

grand

total

of

RM

10,600,000.00 by the Miri City Council to renovate the

Miri Public Park
2

Resources

There are 60 workers from the BENZ Corporation working

under this project. Due to lack of skill worker in the
company, a sub-contractor is enlisted to help build the wet
park and fish pond.

Time

The time taken for the renovation to complete is about 150

days. The renovation starts with the construction of all the
wet park, dry park and more. Follow up with the site
finishing. Lastly, the site clearing.

Flexible

There are enough resource and time allocated along in the

project for contingencies. RM 10,750.00 is allocated for the
project and falls under other expenditure acts as a
contingencies.

CHAPTER 2
TIME MANAGEMENT PROCESS

2.1

Work Breakdown Structure (WBS)

The first step in planning and scheduling a project is to develop the work
breakdown project (WBS). This process involves identifying the activities that is
fitted in the project and those activities must be in the very simplify components. A
few aspects that need to be specified are the duration of each activities, predecessors,
cost of each materials and resource requirements. In this to project, the activities
and the duration for each of the activities is estimated. By using Microsoft Project,
these elements can be identified and categorized. The project is broken down into
four key component, which are project management, project planning, project
monitoring and project learning. In each of these component, it consist the activities,
the allocated duration, start and finish date and its predecessors. The four key
component in the WBS is shown is Figure 2.1.

Figure 2.1: Four Key Component in the WBS

In project management, this step is significant before the initial renovation of the
park even begin. There 3 sub level in the project management. The sub level are
organization structure, preparation of park plan/design and preparation of
paperwork. Before the project starts, an organization structure is produce to manage
worker to complete the project. In preparation of park plan/design, the current park
is evaluate and after that the elements to add to the existing park is identified for
renovation. A new design plan for the renovation of Miri Public Park is produced
with the consultation from local engineers. The preparation of paperwork regarding
the contract and specification documents is provide. All the paperwork will be
present to the Miri City Council (MCC) and wait for the approval from the MCC. The
WBS for the project management as shown in Figure 2.2.

Figure 2.2: The WBS for project management

In project planning, it contains 3 sub level. The levels are site visit, appoint
sub-contractor for Wet Park and fish pond project and earth walk. Once the project is
approved by the MCC, the park can be close down and land surveying can be done.
Due to insufficient skills worker, a sub-contractor is appoint for Wet Park and fish
pond project. The selection of sub-contractor is in this level. After the site visit and
the selection of sub-contractor are finish, then the area is demolish. So that the
renovation can be done according to the new design. The WBS for project planning is
shown in Figure 2.3.
In project monitoring, there are 3 sub level. The levels are start construction,
site finishing and site clearing. The project can start once the initial park is
demolish. In start construction level, there are various elements taken place during
the period of this level. Each of the following elements in the start construction level;
Land is excavate for fish pond and wet park, installation of piping and lighting,
10

flooring, installation of playground for wet and dry park, toilet renovation and prayer
room and last but not least the landscape. Once the construction is done, the site
finishing level take place. The site is given finishing touches and any last
modification. Lastly, the site clearing is when all the machinery used and worker
cleared the area. The WBS for project monitoring is shown in Figure 2.4.

Figure 2.3: The WBS for project planning

In

Figure 2.4: The WBS for project monitoring

project learning, it consists of 3 sub levels. The levels are project review, project
11

audits and project close out. The time taken for the project complete, does it meet the
satisfactory standard, the quality of the park are some the matter being reviewed in
the project review. Project audits check the resources used and the flow of money
throughout the project. In project close out, once the project is on agreeable term
than the company will hand out the completed park to the MCC to be opened. The
WBS for project learning is shown in Figure 2.5.

Figure 2.5: The WBS for project learning

12

CHAPTER 3
ORGANIZATIONAL CHART

Figure 3.1: Organizational Chart of BENZ Corporation for Project of Renovation of Miri Public Park
13

Figure 3.1 above shows the matrix organizational chart of BENZ Corporation for
Renovation Project of Miri Public Park. The highest position is the Project Manager. Under
Project Manager for Renovation Project of Miri Public Park is the Human Resource
Manager, Quality Manager and Financial Manager.
For the project, Project Manager is the one who has the overall responsibilities
throughout the entire project. Project Manager is involved in every stage in the project from
planning, designing, executing and monitoring, controlling and last but not least the closing
of the project before hand over this project to Miri City Council. Besides, the Project
Manager needs to make an appropriate final decision to make sure every decision is still
meeting the scope and objectives of the project.
The role of Human Resource Manager is to plan a communication strategy for the
entire project and responsible in overseeing the department function and managerial part.
There are 3 sections under Human Resource Manager which are Personal Affairs,
Administrative Affairs and Public Relation. Personal Affairs consists of 4 members where 2
members will be handling the personnel matters and another 2 members are responsible in
the establishment and pension matters. Next is Administrative Affairs, which is also
consists of 4 members. This section will be in charge in identifying needs and provides a
communication system for the company. The members are responsible in preparing every
document such as letter, contract and agreement to the contractor and sub-contractor and
planning and arranging a meeting schedules for the project by writing a memo to the
person involved in the meeting (Refer to Appendix). The third section under the Human
Resource Manager is Public Relation which consists of 2 members. This member will make
a negotiation to the contractor and sub-contractor regarding every detail in the contract and
agreement and present an argument on behalf of the organization to the Miri City Council.

14

Quality Manager is responsible for ensuring a product or service to meet the

established standards of quality, including reliability, usability and performance
throughout the project life cycle. There are 4 sections under Quality Manager which are
Collection, Quality Assurance and Quality Control Engineer, Quality Assurance and
Quality Control Inspector and Procurement and Logistic. The overall member under the
Quality Manager are consisting of 19 members. The scope of jobs for the Quality
department is determining the quality procedures, standards and specifications of the
chosen element by referring back to the requirements by Miri City Council. Each element
added in the project is summarized in a form (Refer to Appendix). The engineer involves
in the project need to ensure the setting standards of the element in terms of health and
safety.
Financial Manager is responsible in monitoring the cash flow of the project and also project
budgeting. There are 2 sections under Financial Manager which are 4 members will be
handling the account of the project and another 2 members is handling any transaction
with bank regarding any day to day payments needed for the project.

15

CHAPTER 4
QUALITY MANAGEMENT SYSTEM
In this chapter, it will explain detail on Quality manager role to this project.
Firstly, quality manager is responsible for ensuring a product or service meets the
established standards of quality including reliability, usability and performance
throughout the project life cycle.

Quality manager have four main scope of

management which are quality policy, quality assurance, quality control and risk
management. These scope will be discussed in section 4.1, section 4.2, section 4.3
and section 4.4.

4.1 Quality Policy

Project Renovation of Miri Public Park handles by Benz Corporation. Several quality
policies are prepared to ensure the quality each of the chosen products. The policies are
the quality objectives and the acceptable quality level of the product or services.
Therefore, the quality policy is affected by some aspects as follows:
a) To provide ambient environment and ecosystem.
b) To have a fun and relaxing Public Park.
4.2 Quality Assurance
Quality Assurance is the collective term for the formal activities and managerial
processes that attempt to ensure that services meet the required quality level stated
16

in quality policy. Several services are provided to ensure to ensure the fulfillment of
the quality policy on the project of Renovation of Miri Public Park.
a) Wet Park:
i.

Pool
Small blue tile with different gradient color indicate the depth of the pool. The
darker the color, the deeper the pool is.

ii.

P
layground & Mushroom hut
Fiber-glass water slides is used because the material are:

iii.

Corrosion resistance
Less friction and fine finish product which the slides are smooth and not

slippery for safety purposes.

Free chemical product and respond well to painting & polishing.

Safety house
Used to place the water park equipment such as tube, float, life jacket and race
mat.

17

b) Dry Park
i.

Outdoor fitness & exercise station

All equipment at outdoor fitness is made up from galvanized steel pipe because
it is anti-crack, anti-faded, anti-toxic, anti-UV resistance and durable which
required less maintenance.

ii.

P
l
ayground for kids
The rubber mat floor is choose as a base for playground since it can absorb
impact and produce less pain for the user.

18

iii.

J
ogging track & reflexology pathway
Jogging track is made from bricks and cement.

c) Public Facilities:
Public facilities such as washrooms and prayer room is provided at the park. The
selected component is shown as follows:
i.

2 main washroom:
Each washroom is equipped with 2 toilets for adults 1 toilet for kids, 5
bathrooms, shower and water tap, and diapers changing room. In addition,
toilet and sink for kids also provided. The material for the toilet bowl and sink
is ceramic because it is durable and long-lasting and need less maintenance.
Besides, the color for both toilet and sink is white because easy to measure the
cleanness. While the material for shower and water tap is from stainless steel.

19

ii.

Prayer room
The prayer room is equipped with carpet and curtain. The carpet is made up
from 80% wool with 20%nylon and Arabic modern design.

d) Landscape & Park Decoration

An element such as a fish pond and waterfall, bench, rest huts, plants and grass
are construct and add to the park to create an ambient environment and
ecosystem.
i.
Fish pond & Waterfall
Fish pond and waterfall can make a peaceful park.
ii.

Bench & Rest Hut

Bench and rest huts are provided to achieve policy which to have a relaxing
park. The material uses to build the huts are wood, cement and zinc roof. The
bench are made up from cement with stone and marble natural. The selecting
material are durable and water proof.

20

iii.

Plant
Trees and flower plants is planting surrounding the park because it can help
to achieve the ambient environment. Several terms have to consider when
planting tree surround the park.
a. 15 big tree/ 1km
b. 30 little tree / 1km
c. 250 Flowers tree/ 1km
d. Grass (Gajah mini type).

e) Others element
i.

Dustbin and recycle bin

Dustbin and recycle bin are provided to increase the awareness of cleanness to
the public and society. It also can help to achieve the ambient environment
park. Bin is made up from Polypropylene PP which is a thermoplastic material
because it is water proof and extreme weather resistance.

ii.

Lamppost
To lighten up the park at night. The material of lamppost is because it is
water proof and weather resistance.

iii.

Main entrance and ticket counter

Main entrance gate is built from wrought iron gate. This material is durable,
strong and rigid, and corrosion resistance. So, with a great main entrance it
can attract public and tourist to come.

iv.

Signboard and map

21

Signboard and map is provide as a guidelines for public and tourist in the park.
The material for signboard is steel with some plastic and PVC. This material is
weather resistance and can stand with the extreme weather.

4.2 Quality Control

Quality Control is the activities and techniques to control the quality
assurance that have been stated to achieve the quality policies. The activities include
continually monitoring processes, identifying eliminate and minimize the problem
causes in order to increase the efficiency of the service or product. The table shows
below is action on the quality control and the frequency of maintenance for each
quality assurance to meet the quality policies stated.

QUALITY ASSURANCE
1. Wet Park:
i.

ii.

Pool

Playground &
Mushroom hut

iii.

Safety house

QUALITY CONTROL
a) Color of water in pool
b) Pump for water circulation
c) Chlorine added for water

FREQUENCY
Everyday

clarity
d) Cleaning the pool
a) Condition of the surface of hut
and playground
a) Monitor all equipment of the
wet park is safe to use.
b) Safety equipment in good

Once a week

condition.

Once a week
2. Dry Park:
i.

Outdoor fitness
22

equipment
playground
Jogging track &

ii.
iii.

Reflexology pathway
3. Public utilities:
i. Washrooms

a) Look at the condition.

b) Repair if have any problem.
c) Cleaning the track and the

Once a month

pathway.
a) Cleaning the toilet and
bathroom
b) Equipped with air freshener
c) Check on the condition of the

Three (3) times

per day

equipment in the toilet

(leakage, broke)
a) Cleaning a room
ii. Prayer room

Once a week

4. Landscape & Park

Decoration
i.

ii.

iii.

Fish pond & Waterfall

Bench & Rest Hut

Plants:

a) BOD, COD, Color and Odor

b) Pump for water circulation
c) Cleaning if required
a) Cleaning the area (everyday)
b) Look at the condition.
Eg. Roof leakage
c) Repair if any problem
a) Cut and trim,
b) Watering plant (flower).
c) Fertilizer

Once a week

Once a month

Once a month

a) Grass cutting.

iv.

Grass

Once a month
5. Others
23

i.
ii.
iii.
iv.
v.
vi.

Lamppost
Surrounding gate
Signboard and map
Main entrance & ticket
counter
Dustbin & recycle bin
Drains

a) Look at the condition (bend,

Every 6 month

broke)
a) Repaint if have problem (rust)
1. Clean the bins

Every 6 month

1. Look at the condition (moist).

2. Cleaning of drains and look
drain cover condition.

Everyday
Every month

4.3 Risk Management

Risk management is important element in every project where it can help to minimize
the problems during the construction and identify the risk may occur during the
progress. For our project, renovation of Miri Public Park there are three risk identified
which is, people risk, nature risk and progress risk. Each risk has its own
quantification and response control. Table below shows the detail of risk management.

Risk

Description

Example
of Risk

People

Health

Quantification
High

Accident

Injury

Death

Medium

Response Control

Low
Briefing about the
safety precaution at
site
Provide first aid on
site.
Prepare safety
communication flow.
(Refer to
appendix)

Conflict

contractor

Attitude

Responsible

Prepare black and

white agreement.

worker

Prepare black and

white agreement.

24

Punctuality

(within
project
duration)
Capability

Experience

Analyze company

contractor

background and
achievement.

Nature

Environment

Waste
disposal

Education on site.
Select practice on site

&

to minimize waste

pollution

and pollution.
Prepare waste
prevention and
disposal procedure
before construction
start.

Heavy rain
Weather

Keep in touch with

weather forecast.
Provide warning alarm

for natural disaster.

Provide safety

(flood)
Earth
quack
Tsunami

evacuation.
Progress

Safety

Site safety

Time delay

Weather

Provide safety
guidelines on site

condition

Record on weather
chart for claims on
extension of time

Material

Late delivery of
material by supplier
Record the delivery of
material in material
receiving record.
(Refer to
appendix)

Machine

Maintain a daily record

of all machinery
utilized on site

Short of

Manpower

Employ contact worker

Delivery of

Inform the supplier to

resources
Supplier

material
Supplier at

deliver the material

site

required to the site

in accordance with
the progress at site

25

as and when
required.
Keep the record of
delivery order to
monitor the
procurement and
prevent wastage and
theft.

CHAPTER 5
FINANCIAL MANAGEMENT SYSTEM
5.1 Introduction
Project cost management is the heart of a project, as cost is a vital parameter for a
project which includes several processes like planning, estimating, budgeting, and
controlling. An excellent project cost management ensures a project to be completed
within the approved budget by an organization. Therefore, project cost management for
Benz Cooperation is majorly used to estimate cost of materials, equipment used for
construction, workers salary, and etc.

26

5.2 Project Funding

Funding is the act which provides financial resources or to satisfy an organization
cash necessity, and usually in the form of money. Sources of funding include loan,
venture capital, donations, grants, savings, subsidies and taxes. However, sources of
funding such as donations, grants, and subsidies have no direct requirement for return
of investment. The project funding for Benz Cooperation project is supported by
government grants where no return of investment. Government grants are allocating
funds through government agencies to projects that bring benefits to publics and
organizations. So in this project, the Miri City Council allocated an amount of revenue
in renovating the Miri Public Park. Table 5.1 shows the funding details of this project.
Table 5.1: Project funding of Benz Cooperation

Description

Revenue (RM)

Miri City Council

10,600,000.00

Total Revenue (RM)

10,600,000.00

5.3 Project Cost

Estimation of a project cost (budgeting) is important for several reasons, as it
allows in identifying whether the necessary funds are available to support the
project and also serves as a guideline in ensuring sufficient funds is available to
complete the project. Project manager with a good knowledge on how to work with
project costs helps to increase the chances of project success. Benz Cooperation
project budgeting includes both direct and indirect costs as shown in Table 5.2.
Moreover, a cost breakdown expense in this project is calculated in lump sum basis,
where a single payment of money is made according to types of transactions occur
while executing the project. The Benz Cooperation project costs breakdown expenses
27

with inclusive of 6% goods and service tax (GST) are listed base on the stages of
construction of Miri Public Park as shown in Table 5.2.
Table 5.2: Benz Cooperation project costs breakdown
No

Details

Subject

Amount (RM)

Project Management
1.

Indirect cost

Preparation and submission of tender

500.00

2.

Indirect cost

Bills of Quantities

1,520.00

3.

Indirect cost

Drawings

1,680.00

4.

Indirect cost

Discrepancies in Drawings

2,120.00

5.

Indirect cost

Contract Document

1,600.00

6.

Indirect cost

Invoices, Receipts, etc.

1,010.00

7.

Indirect cost

Stamping of main contractor contract

documents

1,200.00

8.

Indirect cost

Time schedule

4,400.00

9.

Indirect cost

Insurance of works

10,000.00

Project Planning
10. Direct cost

Site Clearing (Demolition)

120,050.00

11. Direct cost

Hoarding & Signboard

12. Direct cost

Setting up temporary office

13. Direct cost

Meeting area for the use of employers

5,000.00

14. Direct cost

Temporary lighting, power, and water

10,000.00

15. Direct cost

Protective helmets, boots, etc.

6,500.00
10,000.00

2,000.00

Project Monitoring
16. Direct cost

Flooring

55,300.00

17. Indirect cost

Watching and Security

9,600.00

18. Direct cost

Regular clearing of rubbish

3,750.00

19. Indirect cost

Testing and commissioning

3,000.00

20. Indirect cost

Deferment of installation of loose or

dismantle items

3,500.00

21. Direct cost

Site Fire Prevention and Fire Fighting

Facilities

2,500.00

22. Indirect cost

Daily site record

1,000.00

23. Indirect cost

Adequate protection and medical supplies

1,350.00

24. Direct cost

Dry park

1,000,000.00

25. Direct cost

Wet park

1,000,000.00

26. Direct cost

Fish pond & artificial waterfall

28

550,000.00

27. Direct cost

Landscape

430,000.00

28. Direct cost

Toilet Renovation

300,000.00

29. Direct cost

Prayer room

355,000.00

30. Direct cost

Resting hut & benches

245,000.00

31. Direct cost

Viewing tower with bridge

250,000.00

32. Direct cost

Safety house & stor

130,000.00

33. Direct cost

Guard house & counter

273,000.00

34. Direct cost

Garbage house

35. Direct cost

Gate

496,000.00

36. Direct cost

Lighting & wiring

510,000.00

37. Direct cost

Main entrance

38. Direct cost

Drainage & piping

500,000.00

39. Direct cost

Signboard & map

80,000.00

40. Direct cost

Recycle bin & dustbin

50,000.00

41. Indirect cost

Other items of expenditure

10,750.00

42. Direct cost

Renovation of car park

10,000.00

10,000.00

65,000.00

Project Learning
43. Direct cost

Dismantling of temporary office

8,000.00

44. Indirect cost

Salary & wages

750,000.00

45. Indirect cost

Allowances

200,000.00
Total

7,480,330.00

Based on Table 5.2, can be concluded that among the four stages involves in
the construction as mentioned in work breakdown structure in previous section, the
third stage which is the project monitoring has the largest cost with RM 6,344,750.
This is because in project monitoring the renovation process is been carried out at
Miri Public Park for 195 days excluding weekends.
Besides that, salary and wages details will be presented in Figure 5.2. There
are about 60 workers appointed to in this project site. So each worker are required to
work every day in weekdays with each day 8hours, which is from 8am to 5pm
including 1 hour lunch break. Approximately, RM 6.33 is paid per hour where for one
day each worker can earn about RM 50.60. Moreover, workers are required to work

29

195days in total to complete this project. Therefore, each worker will be given RM
9875 which excludes 11% of EPF.

Figure 5.1: Salary and Wages breakdown

5.4 Project Profit

Profit can be classified into two major groups such as gross profit and net profit.
Gross profit for a construction project is usually obtained where contractor commonly
measures the difference between the revenue received and the total expensed incurred
upon the construction period according to the contract agreed. However, net profit is
obtained from total revenues which includes direct and indirect costs minus with total
indirect expenses, non-operating, general expenses including gross profit. Moreover, an
organization should not only focus on the profit, but have to consider the benefits to the
society and environment involves during project progress and as well as after the
project runs. However, this construction project by Benz Cooperation conqueringly
achieve project goals and also gives mutual benefits to society and environment nearby,
even to the tourist sector, as community can enjoy the facilities provided to adapt a good
healthy living lifestyle as well as it captures tourist interest to visit this ecofriendly
Miri Public Park.

This project net profit is obtained by calculating the difference

between gross profit and variations in construction (V0) which gives total amount of
30

RM 623,934.00 as shown in Equation (1). The VO is 20% from the gross profit earned
as shown in Equation (2). However, the gross profit is calculated by subtracting total
revenues earned with total costs occurred during project progression as shown in
Equation (3). The Benz Cooperation net profit is then distributed among to the
company which is the 8% for Benz cooperation, project manager, human resource
manager, quality manager, finance manager with 1.5%, 27% for 36 staffs, 2% for 60
worker as bonus, 50% for shareholders, 6% for executive departments, and as well as
1% for donations or social works according to the percentage allocated as shown in
Table 5.4.1.

Net Profit =Gross ProfitVO

Equation (1)

Gross Profit=Total RevenueTotal Cost

Equation (2)

VO=20 (Gross Profit )

Equation (3)

Figure 5.2: Benz Cooperation Net Profit

31

Table 5.3: Net Profit Breakdown for Benz Cooperation

Profit Percentage for Each Department
Profit for Benz Cooperation

8 %(Net Profit)

Project Manager

1.5 %(Net Profit)

Human Resource Manager

1.5 %(Net Profit)

Quality Manager

1.5 %(Net Profit)

Finance Manager

1.5 %(Net Profit)

Staff (36 staffs)

27 %( Net Profit)

Workers Bonus (60 workers)

2 %(Net Profit)

Shareholder

50 %( Net Profit)

Executive Departments

Donation/Social Work

Net Profit
)
%

1 %(Net Profit)

The staff and general works are entitled to 2 % profit sharing upon basic salary
where it has been given to them as to encourage their working performance.
32

Therefore, the staff can earn up to RM1701.63 each month. Besides that, all the
workers will be given bonus for every 2 months which is approximately RM255.96 as
a compensation for them to overcome current nation economy crisis and price hike
due to Gst implementation and weakening ringgit value against other currency.
Meanwhile, the remaining 1% profit is allocated for donations and social work where
it can bring benefit to the Public in the Miri as the project was funded by
government from public money. Moreover, this can be an inspiration for other
construction companies where they can allocate certain profit sharing for the
donation and social works.

33

34