Anggun Teguh Sdn Bhd was incorporated in 2002. The owner is Ir. Zulhilmi who was graduated in Bachelor of Civil Engineering from UiTM. He worked as an engineer of an international company before opening Anggun Teguh Sdn Bhd. The business began with small cleaning project at Putrajaya and recently the business is registered as a Grade G7 contractor. Anggun Teguh Sdn Bhd has several business subsidiaries that involve with maintenance and construction activities. Among its successful projects are Park and Ride Project, highway maintenance, bridge and government quarters. The vision of Anggun Teguh Sdn Bhd is to be a well-known business not only for its quality but trustworthy among customers and suppliers.

Ir. Abdul Halim, first cousin of Ir. Zulhilmi is a new Senior Construction Project Manager of Anggun Teguh Sdn Bhd. As a new and inexperience manager, he considers the policy of getting the lowest price tender from his sub-contractors would be good for his projects and do not believe in establishing business or strategic alliance with his sub-contractors and suppliers. He also believes in being strict, telling his project team what should be done and expecting them to follow obediently. By doing this, he believes that the company will be able to maximise its profit.

The latest project by Anggun Teguh Sdn Bhd is to construct four storey shop houses and hotel on a piece of land situated at Bandar Alam Shah, Shah Alam for DSB Sdn Bhd. This project is leaded by Ir. Abdul Halim and began in January 2018. However, there is a dispute involved between Anggun Teguh Sdn Bhd and DSB Sdn Bhd related to the project in Bandar Alam Shah. The issue of which contract governed both parties was at dispute, as Anggun Teguh Sdn Bhd claimed that there were two (2) contracts, one to build the shop house and the other to refurbish the same into a hotel amounting to RM3.5 million including variations. DSB Sdn Bhd was of the view that there was only one contract for both the shop house and hotel based on a letter of award dated 15 June 2016 for the sum of RM2.5 million. DSB Sdn Bhd also brought counterclaim against Anggun Teguh Sdn Bhd for liquidate damages, rectification works and loss of profits.

This situation had affected the whole construction process. The construction work in a project site has been delayed for more than 6 months from the actual completion date as stated in the Sales and Purchase agreement.

Staff at Anggun Teguh Sdn Bhd has been demoralized by rumors that a retrenchment is about to happen in the organization due to an economic downturn. Despite uncertainty, the productivity of the staff has shown certain declination.

Required:

a. Explain briefly THREE (3) consequences of dispute between Anggun Teguh Sdn Bhd

and DSB Sdn Bhd to the financial institution and the government.

b. Explain THREE (3) roles of project managers in Anggun Teguh Sdn Bhd to motivate

staffs to be committed of their work.

c. Discuss THREE (3) consequences of Ir. Abdul Halim's policy (getting the lowest price tender from his sub-contractors and do not believe in establishing business or strategic alliance with sub-contractors and suppliers) to the company's long-term business sustainability and performance of his project team.

d. Customers' preferences changes. They might want different housing designs. Advise THREE (3) ways on how Anggun Teguh Sdn Bhd can grab opportunities from this situation?