Why Quotations Are Hard to Compare
You know how three quotations for the same factory can land miles apart? Most of the time the gap isn’t efficiency. It’s scope.
One contractor includes piling and utility connections. Another leaves them out. A third tucks them into vague provisional sums, which construction law firm Turtons describes as an allowance for work that can’t be priced when the contract is signed. The lowest number may simply be the one that includes the least.
Factory Builder Malaysia is the factory and warehouse building arm of QDB Ventures Sdn Bhd, a Cheras-based contractor that builds in Selangor. If you’re comparing contractors for factory construction, this guide lists the factory construction quotation exclusions we see most often, plus the questions that bring them into the open.
Typical Exclusions to Look For
Five areas cause most of the surprises: approvals, consultants, machinery, utilities and ground work. Check each one against every quotation you receive.
Submissions and Approvals
Find out who prepares and submits the plans for planning permission and building plan approval, because this is often unstated. Also ask who pays the council fees and contributions, and who chases agency comments. If the quotation is silent, assume it isn’t included.
Invest Selangor’s setting-up guide lists the development approval stage as planning permission, building plan and an infrastructure plan covering earthworks, roads and drainage. Each is submitted by a consultant to the local authority’s One Stop Centre. That’s three separate submissions, so ask which ones the price covers.
Consultant Fees
Architects, civil and structural engineers, M&E engineers and quantity surveyors all charge fees. Under design and build, many are part of the contractor’s scope. Under a traditional contract, you appoint them yourself.
Check which consultants are covered and which are yours. Utilities add another one: TNB’s Electricity Supply Application Handbook (ESAH 3.1) expects an appointed electrical consultant or contractor to submit your supply application on your behalf.
Machinery and Specialist Installations
Production machinery, overhead cranes, racking, cold rooms and process equipment are usually outside the building contract. That’s normal. The quotation should still say so, and it should state who makes the final connections.
Utility Connections
TNB power supply and any substation, Air Selangor water and Indah Water sewerage connections can be large items. They’re often excluded or carried as provisional sums.
Power is the one to watch. According to TNB’s ESAH 3.1, once your maximum demand passes about 350 kVA (roughly 505A), supply comes from a new substation. TNB’s guidance says you provide the substation land and building, and transfer or lease the land to TNB at a nominal RM10. FactoryHub’s 2026 guide says a new substation can take 3 to 12 months, so it affects your schedule as well as your budget.
Ground-Related Work
Piling, earthworks and soil improvement depend on the ground. Before soil investigation, they may be provisional. Check how they’ll be measured and adjusted.
Ask for the rate per pile or per metre, and what happens if the final quantity differs. Standard Malaysian contract forms such as PAM 2018 include a process for adjusting provisional sums, so ask which form your contractor proposes to use.
The Inclusions, Exclusions and Responsibilities Format
The clearest quotations use three lists:
| List | What it tells you |
|---|---|
| Inclusions | Work and items covered by the price |
| Exclusions | Work and items not covered, which you need to plan for |
| Responsibilities | Who handles submissions, consultants, machinery, utilities and specialist installations |
We use this format on every quotation. It takes longer to prepare, but you know exactly what the price covers. It also makes comparing quotations much easier.
Silence is not inclusion
If a quotation doesn’t mention an item, don’t assume it’s included. Ask, and get the answer in writing.
Questions to Ask a Contractor
Send these questions to every contractor before you sign. Compare the written answers side by side.
- Who prepares and submits the planning and building plan applications?
- Which consultants are included, and which do I appoint?
- Are TNB, Air Selangor and Indah Water connections included? If provisional, on what basis?
- How is piling priced before soil investigation?
- What is excluded from M&E, and who connects my machinery?
- How are variations priced and approved, and what is the defects liability period?
Our guide on how to choose a factory contractor covers the wider checks, including contract terms.
Comparing Fairly
Line up the three lists from each quotation, and the real differences show. A higher price that includes piling, submissions and utilities may be the better deal. Here’s a simple illustration with made-up figures:
| Quotation A | Quotation B | |
|---|---|---|
| Headline price | RM3.0 million | RM3.4 million |
| Piling and earthworks | Excluded | Included |
| Submissions and council fees | Excluded | Included |
| Utility connections | Provisional, no figure | Included or priced |
Quotation A looks RM400,000 cheaper. Once you add the three excluded items, it could easily cost more than B.
Before you decide, ask each contractor for the inclusions, exclusions and responsibilities lists in writing. If a quotation can’t produce them, that tells you something too. To understand what drives the overall budget in the first place, read factory construction cost in Malaysia.