〖 Serial 〗 NSC（Nominate Sub-Contractor) system

Plus Update

Plus PM Consultant Sdn.Bhd.
http://www.plus-pm.com

2016 December ● Vol. 8

In Japan, building construction, M&E construction, pile construction etc. are considered as one project andit will be ordered as a general contract work. But the former British governorate under British Standard (BS)such as Hong Kong, Singapore and Malaysia are using Nominate Subcontractors (NSC) system whichclients do tender directly for each parties, negotiates prices and places an order.
This seems to be just a separation ordering method, but using the NSC system the main contractor
instructed this NSC and they need to have responsible for management too. This makes it easier for theordering party to control the cost of subcontract work, you can put management risk on the main contractor.
It is a cost on method called in Japanese.
Please refer to below case.
A factory project is ordered to a local contractor and following costs have been estimated as a bulk
contract construction.
[Breakdown] Building construction：7.2Million, M&E construction：3.3Million, Pile construction：

Sakamoto MFG (M) S/B
Client： Sakamoto MFG (M)： Selangor Malaysia： Factory & office
Usage： Plus PM Consultant
CM： Shimizu Corporation
Design： Shimizu Corporation
Build： 6,362.25㎡
Total area
Structure/Scale ： RC / 2FLocation

0.4Million Others (crane, compressor, etc.)： 1.2Million, Total：12.1Million as contracts work.
By using NSC system, each subcontractors has been bid and cost reduction was achieved as below.
[Breakdown] Building construction：6.8Million, M&E construction：3.0Million, Pile construction：
0.35Million Others(crane, compressor, etc.)：1.05Million, Total：11.2Million. Total cost down by
0.9Million and cost reduction by 8%. It looks like simple but selection of subcontractors, prepare of tender
documents, price negotiation, NSC management negotiation to the main contractor, etc. works will occur.
However, contents of the construction cost became clearer than bulk contract construction, even when
additional construction work occurs later, it will be easier to investigate the cost.

【Case】

Case of incorporating the NSC system in an practical factory project → Successfully reduced costs by about 8%.
Building Construction

7.2Million

Building construction6.8lion

M&E construction

Pile cons.

3.3Million

M&E construction

3.0Million

0.4Million

Pile const.

Others

1.2Million

Others

0.35Millio

1.05Million

Staff introduction
I am in charge of sales andmarketing.
And I always think in thecustomer's position and propose
the best solution to solve theirproblems.
Living a positive spiral that
constantly fills up the antenna
and fulfils even small things tocreate a good relationship is mymotto.
I will continue to devote as amember of Plus PM Consultant.

Sakamoto MFG (M) factory’s completion
Sakamoto MFG Malaysia factory invested by SRD HOLDINGS Ltd. has been completed to manufacture
plastic automobile gas tanks. We have been involved from the land selection stage in 2015, after
comparing the candidate sites and extracting issues related to infrastructure, we checked productionlines and building specifications by observing existing factories in Japan.
After that, we compiled basic planning drawing, building requirements, M&E requirements, masterschedule and other customer's requests as bidding materials, and we assisted management of bids bymultiple Japanese general contractors. After collecting quotations from each company, we evaluatedthe estimate contents, compared the results of each company, and supported client on generalcontractor decision ground of. The construction site was extremely soft and difficulty was expected forfoundation work such as piling works. The construction works were able to be completed without delay,
without major problems by close coordination such as technical information exchange, regular meetings
with our selected general contractor.
We sincerely appreciate the efforts of the client and all parties concerned in making this projectsuccessful.

Messagefrom CEO

Plus PM Consultant Sdn.Bhd.(105405 5-T)
Proj ec t Mana gemen t

Managing Director/CEOJoji Kimura

Kuala Lumpur／ 3-16,13th Floor, Wisma UOA Ⅱ,No.21,Jalan Pinang, 50450 Kuala Lumpur, Malaysia

TEL +(603)2 181 -0 263 F A X + ( 6 0 3 ) 2 1 8 1 - 0 2 6 4Home page ／ http://www.plus-pm.com

株式会社 プラスPM
Business Development
ManagerChiemi Yamaguchi

本社／〒530-0047 大阪市北区西天満2丁8番5号 天満治ビル
TEL 06-6363-6066(代) FAX 06-6363-6466
東京支店／ 〒101-0044 東京都千代区鍛冶町1丁7番11号 KCAビル
TEL03-3526-4181 FAX 03-3526-0801
ホームページ／ http://www.plusweb.co.jp
メ ー ル／ info@plusweb.co.jp※We are waiting for your feedback to this journal. For more inquiries, please contact the above e-mail address.

What is added value?

After three years since we established the overseas subsidiary, we finally grasp the key points of management.
When we provide customers with added value beyond expectation then the management has been successful.
Depends on the project, Plus PM Consultant always provide our customers with value-added services that
other companies can’t do. For example, the general contractor may decline a client’s project due to tightconstruction schedule or budget. Under these situations, we always propose solutions that can be done byusing our advantage of technology and network for the customer‘s. Likewise for local employees, we keep
telling them to work with such feelings at daily conferences so that they are growing. Recently, we enhance
our planning for the design know-how of freezing refrigerated logistics center and senior housing in Japan as
our value-added service. Plus PM Consultant aims for speedy management by going one step ahead andmakes efforts to add value to our customers.

Plus PM Consultant Sdn Bhd

Managing Director/CEO Joji KimuraOn-going Project

ASEAN Information■O‘hako Project
O'HAKO RESIDENSI (condominium) project is located about 30 minutes
by car from Kuala Lumpur Malaysia and currently many new
condominiums are under construction in Puchong area.
On 20th November 2016, the ground breaking ceremony was held andthe main construction work has been started in full swing.
MARIMO LAND SDN BHD who is the first Japanese developer in thevicinity of Kuala Lumpur is directly doing business independently.
This condominium is a large-scale project with 33 floors above ground,and 5 basement levels, and a total of 718 units consisting of twin towers.
The main contractor of this project is done by a local general contractor.
Plus PM Consultant is providing high-quality control (QC) service with
"Look in the eyes of Japanese”
From now on we will work closely with our client about 40 months and try
to understand with local general contractor and local staff each other withvalue communication, we will continue doing our best for success of thisproject.
We will report latest progress status in our next publication.

■Point of GC selection in ASEAN

ClientLocation
UsageCMDesignBuildTotal area

： Marimo Land S/B： Malaysia Puchong： Condominium： Plus PM Consultant S/B： Atelier Alan Teh Architect： Pembinaan Infra E&J S/B： 167,554.16㎡
Structure/Scale： RC / 33F B5F■Japanese factory renovation project in JB

This is a project needs to be quickly started by a Japanese company. Since the schedule to completion is tight, ourclient purchased an existing factory instead of building a new factory, and make the factory operate on the target
schedule by doing interior work and M&E facility on this project. Since the existing factory is an old factory that has
been 15 years old since its establishment, we have studied the extraction of problems and their solution from
sufficient inquiries in advance and shared it with client. Subsequently, construction company selection was carried out
by comprehensive evaluation method, and construction contract was supported. Also, since application process willaffect the progress, we responded promptly on behalf of client.
Our work contents are as follows.
【Work content】① Risk assessment and advice of purchasing existing factory② Creating a master schedule for the project and management③ Survey of government office/ Creating official drawing and application④ Advice on GC selection/ Estimates review/ Design implementation⑤ Construction quality and schedule control⑥ Client’s production equipment construction adjustment⑦ Joint inspection
Renovation work will test the project management ability compare to general construction work because there aremany technical items and problems to be grasped and resolved.
Because the client’s product is a new product that makes use of technology from Japan, it is a very worthwhile projectfor us. And we are really looking forward to completion of this project.

Speaking of the benefits of choosing Japanese general contractors, it is definitely a “senseof security”.
There is nothing better than this. Of course there are disadvantages.
That is "construction cost“. It is not exaggerate to describe choosing a Japanese general
constructors as “Buying sense of security with money”. If clients want the same level ofquality as in Japan we recommend Japanese general contractors without hesitation.
For clients who really have to lower the construction cost, we propose alternative options
other than Japanese general contractors.
However, there are many parts that differ from Japan in how to proceed and finish projects.
It is important to understand that fact. We often hear the word "Japanese goods are goodquality but high price". Certainly Japan's technology and quality are great, it has beenbranded and as Japanese we are proud of this.
However, in the globalizing society, "cost" is one of the big factors in the competitive society.
From now on, we believe that Japanese companies will increasingly choose generalcontractors other than Japanese general contractors in a competitivesociety. In fact, some of local companies have hired ex Japanesegeneral contractor so the quality standards are rising.
We will provide services to construct safe and secure buildings atoptimal cost.
Management of Plus PM Consultant is offering it.

■Warehouse system in Malaysia

Basic Conceptual Plan
Recently we often hear about topics on freezing
Operation
For Human
For Raw material
Semi-clean
Clean
Contaminatedand refrigerating delivery systems in Malaysia orPlan
zone
zone
zone
For PackingFor Product
ASEAN region. Logistics network has developed
however in Malaysia the freezing andrefrigeration system is still lagging behind so still
ice is used as a means of transport storage. InConstruction
this tropical country, fresh foods were deliveredPlanwith a large amount of ice and exposure tooutside air exceeding 30℃ during transshipment. The freshness of ingredients can’t bekept, and hygiene also becomes a problem.
Equipment
Meanwhile, a Japanese company hasPlan
established a JV with a local logistics
company, and they established a new delivery system that installed with a freezing refrigeration system in existing
warehouse, uses exclusive car for freezing and refrigerating.
As expected, there seems to be a considerable demand, and this local company is planning a new large-scale freezing andrefrigerating logistics system. This situation is the same not only in Malaysia but also in ASEAN countries where needs arehigh for fresh ingredients. Logistics realignment in the ASEAN region has been called, but the need for freezing and refrigerating
systems to the logistics industry will continue to increase in the future.