Protocols

MO team complies as much as we can with the procurement protocols. Below we share the guidelines.

 

1. Governance & Legal Framework

Procurement in a stratified property must follow:
   •    Strata Management Act 2013 (SMA)
   •    Strata Management Regulations 2015 (SMR)
   •    Strata Development (Maintenance & Management) By-Laws
   •    JMB/MC-approved Financial SOPs, Procurement Policy & Spending Limits

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The main purpose:
✔ Ensure transparency
✔ Prevent conflict of interest
✔ Protect owners’ funds
✔ Ensure quality, safety & fairness in all appointed contractors

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2. Key Procurement Principles Required by the Act

2.1 Transparency
   •    All procurement processes must be documented.
   •    Decisions must be recorded in Committee Meetings.
   •    Quotes, evaluation sheets, recommendations must be filed.

2.2 Accountability
   •    Committee members are custodians of the maintenance account.
   •    Any spending must be defensible and in the best interest of the property.

2.3 No Conflict of Interest
   •    Committee members cannot take benefits from suppliers.
   •    Any relationship to vendors must be declared.

2.4 Competitive Tendering
   •    The Act expects fair competition and multiple quotations to avoid favouritism.

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3. Procurement Thresholds (Industry Standard Aligned With SMA)

While SMA doesn’t list exact numbers, the accepted national practice based on the Act’s transparency requirement is:

Value (RM)    Requirement

Below RM1,000    Direct purchase allowed with 1 quotation; must still record reason for purchase.

RM1,000–RM10,000    Minimum 3 quotations; Committee approval required.

Above RM10,000    Open tender or closed tender with minimum 3–5 bidders; formal evaluation & meeting resolution required.

Above RM100,000    Formal Tender Committee, full tender documentation, technical evaluation, financial evaluation, and recommendation to JMB/MC for approval.

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4. Procurement Workflow Required in Strata Properties

4.1 Identify Need
    •    Technical or admin team submits a Work Request Form.
   •    Manager verifies urgency, scope, and necessity.

4.2 Scope of Work (SOW) Preparation
    •    Clear description of works & materials
   •    Safety requirements
   •    Timeline
   •    Warranty
   •    Measurement/BOQ (if applicable)

4.3 Request for Quotation/Tender
    •    Send RFQ/RFT to minimum 3–5 pre-qualified vendors.
   •    Include site visit if necessary.

4.4 Evaluation Process

Evaluate based on:
   1.    Price Comparison
   2.    Technical Capability
   3.    Past Performance
   4.    Compliance with SOW
   5.    Timeline & Resources

Must prepare:
    •    Comparative Quotation Table (CQT)
   •    Evaluation Sheet
   •    Manager’s Recommendation

4.5 Committee Review
    •    All documents tabled during JMB/MC meeting.
   •    Committee votes & passes a Resolution.
   •    Minutes must reflect reasons for selection.

4.6 Vendor Appointment
    •    Letter of Award / Work Order issued.
   •    Vendor must sign acceptance with terms & conditions.

4.7 Work Monitoring
    •    Manager or technical officer monitors progress.
   •    Variation Orders (if needed) must be approved in writing.

4.8 Verification & Payment
    •    Inspect and certify works done.
   •    Attach:
   •    Photos before/after
   •    Completion report
   •    Invoice
   •    Payment voucher
   •    Committee approval proof
   •    Payments must follow SMA rules for maintenance & sinking funds.

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5. Documentation Required (SMA-Compliance)

Every procurement must include:
✔ RFQ/Tender documents
✔ Vendor quotations
✔ Comparative Quotation Table
✔ Minutes of meeting (resolution)
✔ Award letter
✔ Delivery/Completion report
✔ Invoice & payment proof
✔ Warranty & service reports
✔ Vendor registration details

This documentation protects the JMB/MC from legal issues and audit queries.

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6. Special Cases Under SMA

6.1 Emergency Works

Allowed without tender if:
   •    Safety threatens lives or property
   •    Essential services stop (water, electricity, lift breakdown)
   •    Further delay increases cost or danger

Still required:
   •    Immediate reporting
   •    Documented justification
   •    Photos
   •    Backdated approval in the next meeting

6.2 Long-term Contracts (Security, Cleaning, Lift, Bomba)
    •    Must be tendered at least every 2–3 years
   •    Performance evaluation required
   •    Renewal only allowed with meeting approval and justification

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7. Ethical & Compliance Requirements

Under SMA:
   •    No personal benefit can be taken from vendors.
   •    Vendors cannot offer gifts.
   •    Committee cannot bypass tender without reason.
   •    All decisions must be made collectively—not by individual committee members.

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8. Risk Control & Audit Requirements

A procurement process must include:
   •    Vendor blacklist for poor performance
   •    Performance scorecards
   •    Annual procurement planning
   •    Internal audit checks for:
   •    Overpricing
   •    Collusion
   •    Unapproved spending
   •    Missing documents
   •    Non-compliance with tender rules

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