Cost Centres for Restoration Work: A Case Study of
Town Hall in George Town, Penang
Tan, L.K.
Universiti Sains Malaysia
(email:tanleekean@[Link])
Lim, Y.M.
Universiti Sains Malaysia
(email:limyokemui@[Link])
Abstract
Purpose: The purpose of this paper is to identify the cost centres of conservation works for Town Hall
in George Town. Design/methodology/approach: The case study approach is one of the most
commonly used research designs in qualitative research. The case study method is adopted in this
research to enable in-depth and detail probing of the cost centres from the total costs of conservation
works and also to understand the reasons for the high costs in certain work items for the chosen
building. Findings: Generally, the major costs found in building conservation works are for
restoration works and upgrading or improvement of M&E services to the building. This paper
discusses the findings from the case study of one of the selected buildings in George Town. Further
studies on the various costs under restoration works revealed that roof, ceiling, decorative elements,
internal wall and columns finishes, door, ironmongeries and windows, external finishes and plumbing
and sanitary installation are the major cost centres for restoration works. The paper then further
discusses the reasons for the above findings. Originality/value: This study attempts to identify the cost
centres of conservation works for a historical building in George Town. Understanding the cost
centres will enable a better cost estimation for similar works in the future.
Keywords: building conservation works, cost centres, George Town, restoration works, cost studies
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1. Introduction
Building conservation generally involves the renovation of old structures, which could bring them
back to fulfilling their original functions by contemporary standards or adapt them to new uses.
According to Ahmad (1998), historical buildings are preserved and conserved for various reasons,
namely retention of historical values and development and also to promote tourism. The state of
Penang is well known for the heritage character of its capital city, George Town. Compared to the fast
industrializing and urbanizing landscape of Penang State, the old city still retains its charms and
historical ambience. The Penang Island Municipal Council (MPPP) has adopted a heritage
conservation policy for Georgetown and on 7th July 2008, UNESCO has listed Melaka and George
Town as Joint Historic Cities of the Straits of Melaka to the World Heritage List. According to the
document submitted to UNESCO, the nominated property in the Historic City of George Town covers
109.38 hectares and consists of the historic inner city on the north-east cape of Penang Island. There
are more than 1,700 historic buildings within the core zone aligned on four main streets of Pengkalan
Weld, Lebuh Pantai, Jalan Masjid Kapitan Keling and Lorong Love besides other perpendicular
streets of Jalan Tun Syed Barakbah, Lebuh Light, Lebuh Bishop, Lebuh Gereja, Lebuh China, Lebuh
Pasar, Lebuh Chulia, Lebuh Armenian and Lebuh Archeh.
Due to the listing, more property owners are starting to have an interest in restoring their property to
take advantage of the city new status, causing an increase in restoration works. As such the demand
for professionals such as conservation architect, quantity surveyors, building surveyors has also
increase. However, the education and training of a quantity surveyor has always focussed on new
building works. Due to the lack of experience in this area, many quantity surveyors are not familiar
with the pricing for building conservation works. Unlike new building works where there are cost data
to refer to, anecdotal evidence suggests that there is very limited cost data that quantity surveyors can
refer to for historical building conservation work. Experience in new building works has shown that
cost data plays an important role in the construction industry as it is an important source of reference
for construction cost to both the quantity surveyor and the contractor. As such, the objective of this
study is to define and identify cost centres for building conservation works to provide a guide for
quantity surveyors in estimating such works in the future.
2. Cost centres of building conservation works
It is important to start out this paper with a clear definition of the terms ‘cost centre’, ‘building
conservation’ and ‘historical building’. According to Ashworth (1988), ‘cost centre’ is defined as
items of cost importance identified within a building project. In old buildings, the demolition and
structural costs are minimal and the major factors that determine the overall cost of a project lie in the
architectural and mechanical work (Fitch, 1992). Frequently, costs for mechanical and electrical work
are high due to the complex nature of the systems installed. This element of the work is likely to
remain an expensive item because historical buildings do not lend themselves to the installation of the
quantity of ductwork and chases normally associated with mechanical and electrical equipment.
Feilden (1994) recognises that, whilst the general renewal of building engineering services gives ‘life’
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to these historic structures, their installation also causes acute technical and artistic problems. Fidler
(1987) fears that old buildings are under threat from adaptive use, because it is often difficult to
reconcile the technical requirements with the principles of conservation.
According to Lee (2006), Building Restoration Works and Mechanical and Electrical Works are the
two major cost centres that need to be considered when preparing costs for all restoration projects. He
also divided the restoration works into two elements called major and minor elements. Major elements
are considered as important elements that must be priced and taken into account during the
preparation of the estimate for restoration works. These major elements include roof and rainwater
goods, floor structure and finishes, wall and column finishes and ceiling structure and finishes. The
minor elements only appear on certain circumstances or can be interpreted as uncommon building
trades or activities.
Ahmad (1998) has defined ‘building conservation’ as the practice of keeping historical buildings
intact. The term ‘historical buildings’ usually refers to old building that has historical and
architectural value. The scopes of works for conservation works to historical building are different
from new building works. There are some special scopes of works that is specifically for conservation
works. These special scopes include the preparation of the dilapidation survey report and from this
report, repair methods and techniques can be identified. All building defects, methods and techniques
will be recorded systematically by using the Historical Architectural Building Survey (HABS)
documentation method. Scientific studies and laboratory tests will also be carried out before the
completion of building conservation works.
3. Methodology
The main aim of this paper is to obtain an indication of which elements form the cost centres for
building conservation works. In order to have an in-depth study of the cost centres, the research
methodology chosen is case study. The case study research represents one of the most commonly
research design in qualitative research. The sampling method used in this research is selective rather
than based on random sampling. The authors acknowledge that the core criticism of case study
research is that the results can not be generalised to a population (Woodside and Wilson, 2003).
Below are the criteria used to select the sampling for this study:
• The building must be a historical building.
• The building must be within George Town area.
• It must have complete bill of quantities in the tender document.
• No study has been conducted on the building before.
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From a survey of all conservation works in George Town, fifteen projects are short-listed and upon
closer examination, Town Hall is chosen as the case study as it fulfils all criteria. The other projects
are rejected because some have been studied by other researcher while some does not have sufficient
information for case study or the information is too old. As part of the data collection, the contract
document for this project was reviewed to obtain the relevant information. Other than secondary data,
interviews were also carried out with the consultants who have been involved in this project. In order
to determine the cost centres, the study applied the Pareto principle which is also commonly known as
the 80-20 rule. The Pareto principle states that, for many events, roughly 80% of the effects come
from 20% of the causes (John, 1997). Based on this principle, the study will define cost centre as
those elements that contribute to 80% of the total cost.
4. Case study project
4.1 Introduction
Many heritage buildings in George Town, Penang have exceptionally survived the decades amidst
intense development pressure and rapid urbanization. Some of them have been gazetted under the
Malaysian Antiquities Act 1976, a condition that provides these buildings some protection and
encourages their preservation. One such example is the Town Hall, a British colonial building located
at The Esplanade in George Town, Penang. This distinctive building is considered by many local and
foreign tourists as one of the notable heritage buildings in Penang. In February 2003, the Penang
Municipal Council had granted a sum of RM4.17 million for the restoration of the Town Hall. A team
of consultants including architect, engineers, quantity surveyor and conservation consultant were duly
appointed to take on the restoration project, which was completed in August 2004.
Figure 1: During restoration Figure 2: After restoration
([Link]
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4.2 Historical background
The Town Hall, Penang’s oldest Municipal Building was built around 1879 and is categorised as
Grade 1 heritage building which means that it must be maintained in its original design. A building of
British Palladian architecture, with classical arches, columns, pilasters, quoins, ornamental elements
on roof parapet and balustrades, the Town Hall stands on Lot No. 70, Section 19, Georgetown, North-
East District, Penang. With a land area of 70,711 square feet, the Town Hall is situated along Jalan
Padang Kota Lama or formerly known as the Esplanade Road. On 1st January 1879, Lt. Governor Sir
Archibald Edward Harbord Anson laid down the foundation stone of the Town hall and it was
declared open by Governor Sir Federick Weld of the Straits Settlement in 1880. It was formerly the
social venue for the town’s elite, namely the European community. Hence, the Chinese called it ‘Ang
Mor Kong Kuan’ or ‘The European Club’.
The Town Hall had been the focus of social live and civic pride. It had within its building an assembly
hall with a stage as well as a ballroom with adjoining supper rooms. In the past, the Town Hall had
functioned as a venue for Council meetings, Council elections, public speeches, balls, dramas and
amateur concerts. For instance in 1891, the English Evening Service of the Wesley Church was held
here while the “Bangsawan Wayang Kulit”(shadow play show) had performed in 1903. In addition, a
group of Filipino musicians called the “Manila Band” had performed in this Town Hall regularly from
1890-1954. Apart from administrative and social functions, the Town Hall housed the Penang Library
for more than 20 years and a private college (Kolej Damansara Utama) for 8 years. Due to its
immense historical and architectural values, the building was gazetted on 29th July 1982 under the
Antiquities Act 1976.
The Town Hall has a balcony that overlooks the Esplanade. In the olden days, the elite used to gather
on the balconies of the Municipal Council buildings to view the processions and games held below.
Through the years, the Town Hall has undergone five extensive expansions in 1890, 1903, 1938, 1958
and 1991 to accommodate the increasing demand for internal space and now comprises a front
portico, an assembly hall, a ballroom with adjoining supper rooms, a stage, office rooms and a library.
The Town Hall was also used for the filming of the movie “Anna and the King” in 1999. In the year
2003, archaeological excavations unearthed a small tunnel with a 96cm opening underneath the
building. Artefacts’ discovered in the tunnel included broken pieces of pottery, Chinese roof tiles,
bricks, glasses, porcelain, coins and even nails.
4.3 Elemental cost breakdown
The total cost incurred for restoring Town Hall is RM4,157,063.20. The costs for conservation works
can be divided into four sections which consist of preliminaries, prime cost and provisional sums,
building restoration works, and mechanical and electrical works. From the Table 1 below, it shows
that building restoration works and mechanical and electrical works are the two major items which
have the highest cost. This is similar to the literature review which also proved that building
restoration works and mechanical and electrical works are the major cost centres.
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Table 1: Elemental Cost Breakdown
Schedule Item Amount (RM) Percentage (%)
No.
1 Preliminaries 352,150.00 9
2 Prime Cost and Provisional Sums 598,900.00 14
3 Building Restoration Works 1,584,793.20 38
4 Mechanical and Electrical Works 1,621,220.00 39
TOTAL 4,157,063.20 100
4.3.1 Preliminaries
Table 2 below shows the major cost items for preliminaries. The elements are arranged in descending
order according to the cost of the element. The highest cost item is contractor’s superintendence item.
This item include provision of on and off site management supervision including site agent and all
necessary clerical and supporting personnel. This item also includes the allowance for a qualified and
approved conservationist to assist contractor in supervision and other related matters to the
conservationist works. The conservationist shall be engaged full time and based at site throughout the
duration of the works.
The second highest cost item is safeguarding of the works. This item includes safeguarding the works,
materials and plant against damage and theft including all necessary watching and adequate lighting.
The contractor is also responsible for the safety of all materials, fixed and unfixed of his own, other
sub-contractors and suppliers. This item also includes the cost for the employment of sufficient
uniformed security guards for round the clock duties for the full duration of the contract. The
equipment for supervision of the works includes computer, software, scanner, printer, camera, video
camera and photocopy machine. The plant item includes provision of all necessary proper and modern
mechanical and non-mechanical plant, vehicles, machineries, tools and whatever else devices that may
be required for the proper and efficient execution and completion of the works.
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Table 2: Major Cost Items for Preliminaries
No. Item Amount (RM)
1 Contractor’s Superintendence 100,000.00
2 Safeguarding the Works 50,000.00
3 Equipments for Supervision of the Works 25,000.00
4 Plant 25,000.00
5 Consultant’s Site Office 16,000.00
6 Temporary Buildings 12,500.00
7 Performance Bond 12,000.00
8 Construction Industry Development Board Act 1994 11,000.00
9 Contractor’s Workmen Accommodation 10,000.00
10 Scaffolding 10,000.00
11 Setting Out 10,000.00
12 Temporary Electricity Supply 10,000.00
4.3.2 Prime cost and provisional sums
Table 3 below shows the cost breakdown for prime cost and provisional sums. From the breakdown
below, it shows that contingency sum is found to be the highest cost item. Contingency sum is a sum
allocate for unforeseen works. Under the requirement by the Museum and Antiquity Department of
Malaysia, conservation work should involve a systematic method of recording and documentation
based on the HABS. The HABS involved three major stages; before, during and after restoration
works. Five copies of documentation for each stage must be prepared and according to the interviewee
the minimum fee for prepare one copies of HABS report is RM10,000.00. Hence, total documentation
fee for a building is RM150,000.00.
Table 3: Cost Breakdown for Prime Cost and Provisional Sums
No. Item Amount (RM)
Prime Cost Sums
1 Motorised Blinds 153,500.00
2 Curtain 42,800.00
3 Sky Lift 32,600.00
Provisional Sums
4 Support for Backdrop 20,000.00
5 Restoration Work Documentation 150,000.00
6 Contingency Sum 200,000.00
Total 598,900.00
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4.3.3 Building restoration works
Table 4 below shows the elemental cost breakdown for building restoration works. The elements are
arranged in descending order according to the cost of the element. The major cost item are roof;
ceiling; decorative elements; internal wall and column finishes; doors, ironmongeries and windows;
external finishes; and plumbing and sanitary installation.
The item contributing to the highest cost for the restoration of roof element is roof covering. Type of
roof tile used in this building is second hand Chinese roof tile and new “Peranakan” V profile clay
roof tiles. The second highest cost for roof restoration is the temporary roof item. The third highest
cost for roof restoration is the timber roof trusses item. These roof defects are one of the common
building defects that occur in this country. There are some reasons why roof covering form the major
cost. The damaged or missing roof tiles are unavailable in the current market and to specially
manufacture it will incur extra cost. Besides that, some of the restoration works may require skilled
artisan or skilled labourer from overseas. These factors must be taken into consideration when pricing
for the conservation works.
For the ceiling element, the item contributing to the highest cost is restoration of existing timber board
ceiling. It takes up 53% of the total cost of restoration for this element. This is because almost 80% of
the ceiling finish is timber board ceiling finish. For the restoration of decorative element, the highest
cost element is restoration of mouldings and decorative flowers. It takes up 40% of the total cost of
restoration for this element. This is because most of the plaster mouldings on the walls and columns
are in a poor state. The decorative flowers which situated along the front parapet wall and on the
ceiling of the hall are also in a bad condition. Besides that, a set of carved timber decorative flower
design proscenium arch which was built on the stage have been badly affected by termite infestation.
Urgent attention is needed to save this structure.
All the walls of the case study building are masonry except for openings that have been closed with
plywood to create an enclosure or partitions. The item contributing to the highest cost for the
restoration of this element is the restoration of existing wall finishes. It takes up 76% of the total cost
of restoration for this element. The installation of new hardwood panel door cost the highest cost for
the restoration of doors, ironmongeries and windows element. There are a total of 87 numbers of new
hardwood panel doors that are needed to be installed in this case study building. The hardwood panel
doors have either one-door or two-door leaves of various sizes.
The item contributing to the highest cost for the restoration of external finishes element is the
restoration of existing external wall. This is because external wall covers a big portion of the building.
For the restoration of plumbing and sanitary installation, the sanitary appliances elements form the
highest cost. This is because almost all the sanitary appliances need to be change. The sanitary
appliances included water closet, vanity basin, urinal, basin tap, bidet spray set, toilet roll holder, soap
dispenser, floor strainer, hand dryer, jumbo roll holder, guard rail and mirror.
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Table 4: Cost Breakdown for Building Restoration Works
No. Item Amount (RM)
1 Roof 499,765.35
2 Ceiling 175,070.20
3 Decorative Elements 154,264.00
4 Internal Wall and Columns Finishes 148,723.30
6 Doors, Ironmongeries and Windows 134,371.90
6 External Finishes 96,769.75
7 Plumbing and Sanitary Installation 82,140.00
8 Floor 55,772.40
9 Floor Finishes 49,724.40
10 Damp Proofing Works 43,500.00
11 Wall and Columns 36,415.90
12 Ramp and Corridor 28,472.60
13 Staircases and Balustrade 27,000.00
14 Demolition Works 20,303.40
15 Anti Termite Treatment 16,000.00
16 External Works 10,500.00
17 Scientific Testing and Analysis 5,500.00
18 Archaeological Excavation 500.00
Total 1,584,793.20
4.3.4 Mechanical and electrical works
This element forms the highest cost for building restoration works. The total cost for this element is
RM1,621,220.00. The item under mechanical and electrical works can be divided into three items
which are electrical and telephone; air conditioning; and plumbing. Costs for mechanical and
electrical works are high due to the complex nature of the system installed.
For the electrical and telephone item, all existing electrical wiring must be completely removed with
minimum damage. Works include installation of new telephone and electrical wiring, switches, power
sockets and lighting points with minimum damage to existing wall. Also to provide for centrally
located switchboards, concealed conduits for electrical and telephone wiring. All power/telephone
points are to be located at floor skirting level.
For air conditioning item, all air conditioning are ceiling mounted type. Besides that, all existing
internal plumbing and toilet fittings are removed and new system installed.
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5. Conclusion
Historical building is one of the largest assets in George Town. Since George Town has been listed
into World Heritage List, much of the conservation works will be done on the historical buildings. By
knowing the major costs of conserving a building, a quantity surveyor would be able to focus on the
critical items and ensure that the costs for items specific to conservation works are included in the
estimate or tender. As such, this study attempts to identify the cost centres of conservation works for
a historical building. Its aim is to obtain an indication of which elements form the cost centres for
building conservation works. It is hopes that the findings may be use as a baseline reference for future
conservation projects.
As such, the cost centres derived from this case study consists of roof, ceiling, decorative elements,
internal wall and columns finishes, door, ironmongeries and windows, external finishes and plumbing
and sanitary installation. Besides that, the mechanical and electrical works is also important it
constitute a cost centre for building restoration works. By understanding the major cost centres in
building conservation works, a quantity surveyor would be able to provide a better estimate of the
cost as the major elements are given careful consideration.
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