Commercial Banking

Assignment 1 Executive Summary The purpose of this report is to evaluate the performance of both Hong Leong Bank and its peer bank RHB Bank for the financial year ended in 2010. The DuPont model is used to provide the information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the bank as a result of the changes of these factors. A trend comparison for year 2010, 2009 and 2008 is conducted and evaluated its respective ratios and other financial data.The peer comparison of financial ratios between RHB Bank & Hong Leong Bank is evaluated and analysed to see which bank performs better in 2010. The other key ratios are also calculated in for deep analysis on to see how well these two banks in Malaysia perform in 2010. In addition, its credit risk that includes the risk management and its policy of both banks is then evaluated and compared to see which bank manages its credit risk properly.Fi nally, this report provides an overview of the performance of both RHB Bank and Hong Leong Bank for the financial year ended in 2010 and conclude which bank perform better in terms of various financial ration and management of credit risk. II II Assignment 1 Part A: Bank Performance Question 1: Dupont Model: a. Dopont Model: The DuPont model analysis is a common form of financial statement analysis and this model provides information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the firm as a result of changes in one or more of these actors (Milbourn & Haight, 2005). According to Narayanan (2010), the DuPont model provides a starting point to determine the strength and weakness of the firm. It is also a very powerful financial tool to assist financial analyst, shareholders, investors and bankers in understanding the profitability of the firm and a tool that evaluate the firm’s financial statements by comparing the relationships within the income statement and balance sheet, or between the two statements. (Milbourn & Haight, 2005). The DuPont Model starts with the return of equity (ROE).The ROE is a strong measure on how well the management of the bank creates value to the shareholders (Pinsent, 2010). It is also a good starting point in the analysis of a bank’s financial condition. ROE is calculated by dividing the net income by total equity (Gup, Avram, Beal, Lambert & Kolari, 2007). The formula is as follows. ROE= Net incomeEquity According to Gup et at, (2007), the ROE ratio is equal to the Return of Assets (ROA) ratio times the Leverage multiplier that shows the dollar amount of assets that are financed by each dollar of the equity. The leverage multiplier is one indicator of financial leverage.ROE=ROA x Leverage Multiplier Net IncomeEquity = Net IncomeTotal Assets x Total AssetsEquity Leverage multiplier shows the extent to which the b ank relies on debt financing. The higher the leverage multiplier, the more debt the bank is carrying. Leverage Multiplier= Total AssetsEquity The Return of Assets (ROA) measures the bank profits as a percent of its assets and also measures the ability of the firm to use the real financial resources of the bank to generate revenue. It is commonly used to evaluate bank management (Gup et al, 2007). ROA is calculated by dividing net income y total assets. ROA= Net IncomeTotal Assets In the DuPont model analysis, the ROA is expended into another equation: Net IncomeTotal Assets = RevenueTotal Assets x Net IncomeRevenue Thus the DuPont model translates the ROA equation into the following: ROA=Asset Utilisation x Net Profit Margin The net margin ratio shows how much profit the bank makes for every $ 1. 00 it generates from the revenue. Generally, the higher the ratio, the better the net margin. In order to obtain more revenue, most banks will want to reduce the net income to achieve a hig her net margin ratio.Net Margin= Net IncomeRevenue The asset utilisation shows the amount of income the bank generated for every dollar worth of the assets available. This shows the bank’s efficiency in utilising the assets. Basically, the higher the asset turnover, the better the firm use the assets. Asset Turnover= RevenueTotal Assets In order for the bank to increase the ROE, banks need to increase their credit risk; this can be done by providing more loans to customers and subsequently, the bank will earn more income. This will in turn increase the ROA and the same time increases the ROE.Limitations of the Dupont model analysis: * It is based on accounting numbers, which are basically not reliable. * it does not include the Cost of Capital. * Garbage in, garbage out. Assumptions of the DuPont method: * Accounting numbers are reliable. b. Dopont Model Analysis: i. & ii. Trend Comparison of Hong Leong and RHB (2008, 2009 & 2010): Hong Leong Bank’s data: | 201 0| 2009| 2008| | RM’000| RM’000| RM’000| Revenue| | | | Interest income| 2,592,586| 2,937,002| 3,064,785| Non-interest income| 506,979| 511,537| 501,067| Total| 3,099,565| 3,448,539| 3,565,852| | | | | Operating costs| | | |Interest expense| 1,209,792| 1,579,883| 1,688,293| Non-interest expense| 831,139| 806,030| 786,194| Total| 2,040,931| 2,385,913| 2,474,487| | | | | Net profit| 767,817| 659,678| 838,874| Total assets| 77,730,208| 70,732,513| 69,992,756| Equity| 5,815,063| 5,319,288| 4,923,133| RHB Bank’s Data | 2010| | RM’000| Revenue| | Interest income| 4,530,637| Non-interest income| 722,818| Total| 5,253,455| Operating Cost| | Interest Expense| 1,811,153| Non-interest Expense| 1,302,007| Total| 3,113,160| | | Net profit| 1,294,437| Total assets| 105,179,231| Equity| 8,397,474| Dupont Model of Hong Leong Bank 2010| 2009| 2008| Return On Equity: Net incomeEquity| RM767,817,000RM5,815,063,000= 13. 20%| RM659,678,000RM5,319,288,000= 12. 40%| RM83 8,874,000RM4,923,133,000= 17. 04%| Leverage Multiplier:Total AssetsEquity| RM77,730,208,000RM5,815,063,000=13. 37times| RM70,732,513,000RM5,319,288,000= 13. 30times| RM69,992,756,000RM4,923,133,000= 14. 22times| Return On Assets:Net IncomeTotal Assets| RM767,817,000RM77,730,208,000= 0. 99%| RM659,678,000RM70,732,513,000= 0. 93%| RM838,874,000RM69,992,756,000= 1. 20%| Asset Utilization:RevenueTotal Assets| RM3,099,565,000RM77,730,208,000= 3. 9%| RM3,448,539,000RM70,732,513,000= 4. 88%| RM3,565,852,000RM69,992,756,000= 5. 10%| Net margin:Net incomerevenue| RM767,817,000RM3,099,565,000= 24. 77%| RM659,678,000RM3,448,539,000= 19. 13%| RM838,874,000RM3,565,852,000= 23. 53%| Dupont Model of RHB Bank | 2010| Return On Equity: Net incomeEquity| RM1,294,437,000RM8,397,474,000=15. 41%|Leverage Multiplier:Total AssetsEquity| RM105,179,231,000RM8,397,474,000=12. 53times| Return On Assets:Net IncomeTotal Assets| RM1,294,437,000RM105,179,231,000=1. 23%| Asset Utilization:RevenueTotal Assets| RM5, 253,455,000RM105,179,231,000=4. 9%| Net margin:Net incomerevenue| RM1,294,437,000RM5,253,455,000=24. 64%| c. Analysis and Discussion: Trend comparison of Hong Leong Bank Ratio| 2010| 2009| 2008| Net margin| 24. 77%| 19. 13%| 23. 53%| Asset utilisation| 3. 99%| 4. 88%| 5. 10%| Return on assets| 0. 99%| 0. 93%| 1. 20%| Leverage multiplier| 13. 37times| 13. 30times| 14. 22times| Return on equity| 13. 20%| 12. 40%| 17. 04%| Hong Leong Bank’s net margin is higher in year 2010 (24. 77%) compared to the year 2009 (19. 13%) and year 2008 (23. 53%). It means that operating costs are relatively lower in year 2010 compared to year 2009 and year 2008.Operating costs in the year 2010, 2009 and 2008 are RM2,040,931,000, RM3,448,539,000 and RM2,474,487,000 respectively. This indicates that operating costs are well controlled by Hong Leong Bank in 2010 compared to 2009 and 2008. Thus this shows that the bank run their operations effectively in 2010 that increased its profitability. Hong Leon g Bank’s asset utilisation is lower in year 2010 (3. 99%) compared to the year 2009 (4. 88%) and 2008 (5. 10%). It decreased constantly from year 2008 to 2010. The decline in the figures shows that beginning in the year of 2009, the bank did not utilise much of its assets to generate more revenue.Therefore revenue was decreasing from 2008 to 2009. Revenue for the year 2010, 2009 and 2008 are RM3,099,565,000,RM3,448,539,000 and RM3,565,852,000. This shows that the bank well utilised the assets to generate revenue in 2008 compared to 2010. Hong Leong Bank’s return on assets is lower in year 2010 (0. 99%) compared to the year 2009 (0. 93%) and 2008 (1. 20%). This shows that Hong Leong Bank did not do well in managing and utilising its asset base in 2010. Hong Leong Bank’s leverage multiplier decreased from the year 2008 (14. 22times) to year 2009 (13. 30times) and increased back in year 2010(13. 7times).This implies that Hong Leong Bank does not depend too much on debt financing in their activities and carried less debt in their operations in 2009 compared to year 2010 and 2008. Thus, Hong Leong Bank was exposed to more risk in 2008 compared to year 2010. Hong Leong Bank’s return on equity decreased from year 2008 (17. 04%) compared to year 2009 (12. 40%) and increased back in year 2010 (13. 20%). This implies that it did not manage and utilise its equity base and therefore the investors did not get a better return from the Hong Leong Bank in 2010.Overall, Hong Leong Bank performance on profitability was better in 2008 compared to the year 2009 and 2010. Peer comparison Ratio| Hong Leong Bank| RHB Bank| Net margin| 24. 77%| 24. 64%| Asset utilisation| 3. 99%| 4. 99%| Return on assets| 0. 99%| 1. 23%| Leverage multiplier| 13. 37times| 12. 53times| Return on equity| 13. 20%| 15. 41%| Hong Leong Bank’s net margin (24. 77%) is higher than RHB Bank’s (24. 64%). It means that RHB Bank’s operating costs are relatively hig her. RHB Bank’s operating costs are RM3,113,160,000 whereas Hong Leong Bank’s operating costs are RM2,040,931,000.Thus, RHB Bank’s operating costs are higher by RM1,072,229,000. This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank. RHB Bank’s asset utilisation (4. 99%) is higher than Hong Leong Bank’s (3. 99%). This shows that RHB Bank used most effectively of its assets to generate more revenue than Hong Leong Bank. RHB Bank’s revenue is RM5,253,455,000 which is higher than Hong Leong Bank’s revenue which is RM3,099,565,000. Hong Leong Bank’s return on assets is 0. 99% which is slightly lower than RHB Bank’s return on assets which is 1. 23%.This can be implied that Hong Leong Bank did not manage and utilise its assets base better than RHB Bank during operations to generate revenue. However, both banks generated low return on the basis of their assets. With total assets of RHB B ank is RM105,179,231,000, it generated revenue of RM5,253,455,000 whereas Hong Leong Bank’s total assets is RM77,730,208,000 and it generated revenue of RM3,099,565,000. Even though, RHB Bank has assets of 1. 35times more than Hong Leong Bank, its return on assets is still low.Thus Hong Leong Bank managed its assets better than RHB Bank. Hong Leong Bank’s leverage multiplier (13. 7times) is higher than RHB Bank’s (12. 53times). Hong Leong bank has leverage multiplier of 0. 84times more compared to RHB Bank. This implies that RHB Bank does not depend too much on debt financing in their activities and carries less debt in their operations. Thus, Hong Leong Bank is exposed to more risk than RHB Bank. Hong Leong Bank’s return on equity is 13. 20% which is lower than RHB Bank’s 15. 41%. RHB Bank has a higher ROE because possibly the bank does not rely too much on debt financing and offers a high return to shareholders of the bank. Thus, shareholders of RHB Bank will be happy and stay with RHB Bank.Shareholders of Hong Leong Bank may sell its shares and leave the bank. Generally, the overall financial performance of Hong Leong Bank is not very well in comparison with RHB Bank (peer bank). It is possible that Hong Leong Bank’s objectives and strategies are different from RHB Bank’s. Question 2: Hong Leong Bank’s data of 2010 Interest earning asset 1:| RM’000| Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held-to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093|Other assets| 2,014,821| Total| 60,213,779| | | Earning assets 2:| | Interest Income Assets:| | Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held -to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093| Other assets| 2,014,821| | | Non-Interest Income Assets:| | Investment in subsidiary companies (Note 31) earning dividend| 714,092| Investment in associated company (Note 31) earning dividend| 946,505| Total| 61,874,376| | |Interest sensitive assets 3:| | Cash and short-term funds| 13,421,408| Deposits and placements with banks and other financial institutions| 7,004,664| Available-for-sale securities| 681,619| Held-to-maturity securities| 1,705,674| Loans, advances and financing| 30,712,038| Total| 53,525,403| | | Interest bearing liabilities 4:| | Deposits from customers| 63,239,050| Deposits and placements of banks and other financial institutions| 3,791,129| Bills and acceptances payable| 285,366| Other liabilities| 3,890,295| Total| 71,205,840| | | Interest sensitive liabilities 5:| | Deposits from customers| 54,798,922|Deposits and placements of banks and other financial institutions| 3,784,376| Bil ls and acceptances payable| 25,453| Total| 58,608,751| | | | | Liquid assets 6:| | Cash and short-term funds| 13,928,247| Deposits and placements with banks and other financial institutions| 7,004,664| Loans, advances and financing (Note 8)| 9,057,329| Available for sales securities| 3859367| Total| 33,849,607| | | Deposits | 7,004,664| Shareholders’ fund = Total equity| 5,815,063| | | Net-write offs 7:| 202,219| NOTES: 1 Interest earning asset are assets that earns interest income. (Note 28 of pg113 of Hong. Leong Bank Annual Report 2010) Earning assets Income earning assets held by a bank typically include interest bearing balances, investment securities and loans. (Note 28 of pg113 & Note 31 of pg115 of Hong Leong Bank Annual Report 2010) 3 Interest sensitive assets are the dollar value of assets that either mature or can be repriced within within a selected time period such as one year. 4 Interest bearing liabilities are those liabilities that have to pay interest. 5 Interest sensitive liabilities are the dollar value of liabilities that either mature or can be reprised within a selected time period usually of one year.Liquid assets are unpledged, marketable short term securities that are classified as available for sale, plus federal funds sold and securities purchased under agreement to resell, a liquid asset can be easily and quickly converted into cash with minimum loss. 7 Net Write Offs is the amount written off under the assets of loans, advances and financing. (Note 8of pg95 of Hong Leong Bank Annual Report 2010) NOTES: 8 Interest Sensitive Assets RM’000 13,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 Interest Sensitive Assets RM’000 3,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 RHB Bank’s data of 2010 Interest Earning asset 1:| RM’000| Loans, advances and financ ing| 71,125,558| Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Earning assets 2:| | Loans, advances and financing| 71,125,558|Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Interest sensitive assets 1:| | Cash and short-term funds| 10,270,874| Securities under resale agreement| 276,398| Deposits and placements with banks and other financial institutions| 777,779| Financial investment available-for-sale | 1107052| Held-to-maturity securities| 3833825| Loans, advances and financing| 52741914| Total| 69,007,842| | | Interest bearing liabilities 4:| | Deposits and placements of banks and other financial institutions| 6,158,453| Deposits from customers| 80,567,577| Subordinated obligations| 3,018,157| Recourse obligation on loans sold to Cagamas Berhad| 818,503| Hybrid Tier I Capital Securities| 605,407| Long term borrowings| 819,362| Others liabilities| 868,165| Total | 92,855,624| Interest sensitive liabilities 2:| | Deposits from customers| 63,270,532| Deposits and placements of banks and other financial institutions| 5558376| Bills and acceptances payable| 2934533|Recourse obligation on loans sold to Cagamas Berhad| 147030| Long term borrowings| 817127| Total| 72,727,598| | | | | Liquid assets 3:| | Cash and short-term funds| 11093561| Securities purchased under resale agreements| 276,407| Deposits and placements with banks and other financial institutions| 782,462| Financial assets held-for-trading| 119,374| Financial investment available-for-sale| 1176035| Financial investment held-to-maturity| 3854749| Loans, advances and financing| 14124170| Other assets| 88835| Derivative assets| 190637| Total| 31,706,230| | | Deposits | 1,539,648|Shareholders’ fund = Total equity| 8,397,474| | | Net-write offs 7:| 1,033,573| NOTES: 1, 2, 3 – Please refer to appendix. | Hong Leong BankRM’000| RHB BankRM’000| Interest earning assets| 60,213,779| 89,357,638| Interest bearing liabilities| 71,205,840| 92,855,624| Earning Assets| 61,874,376| 89,357,638| Interest sensitive assets (RSA)| 53,525,403| 69,007,842| Interest sensitive liabilities (RSL)| 58,608,751| 72,727,598| Liquid assets | 33,849,607| 29,990,240| Shareholders’ fund| 5,815,063| 5,815,063| Net-write offs| 202,219| 1,033,573| Operating Income| 3,099,565| 5,253,455|Operating Expense| 2,040,931| 3113160| Other key indicators for the year ended 2010: Bank efficiency| Hong Leong Bank| RHB Bank| Efficiency ratio:Operating expenses Ope rating income| RM2,040,931,000RM3,099,565,000= 65. 85%| RM3,113,160,000RM5,253,455,000= 59. 26%| Cost to assets ratios:Operating expenses Total assets| RM2,040,931,000RM77,730,208,000= 2. 63%| RM3,113,160,000RM105,179,231,000= 2. 96%| Efficiency ratio measures the changes of costs in relation to income. Hong Leong Bank has an efficiency ratio of 65. 85% while RHB Bank is one with the lower which is 59. 26%.This implies that Hong Leong Bank’s rate in increasing the operating income is at lower rate compared to RHB Bank. In terms of rate of increase in operating income, Hong Leong has the lower efficiency compared to RHB. Cost to assets ratio is used to measure the costs incurred in relation to the assets size. RHB Bank has a higher cost to assets ratio that is 2. 96% compared to Hong Leong Bank that has a figure of 2. 63%. Therefore in term of cost of control relative to the total assets owned, Hong Leong is more efficient than RHB Bank. Interest differentials| Hong Leong Bank | RHB Bank|Net interest income:Interest earned -Interest expense| RM2,592,586,000 -RM1,209,792,000= RM1,382,794,000| RM4,530,637,000-RM1,811,153,000= RM2,719,484,000| % of interest margin:interest earned – interest expenses Earning assets| RM2,592,586,000-RM1,209,792,000RM61,874,376,000= 2. 23%| RM4,530,637,000-RM1,811,153,000RM89,357,638,000= 3. 04%| %interest spread(interest earned/interest earning assets) – (interest expense/ interest bearing liabilities)| (RM2,592,586,000/RM60,213,779,000)-(RM1,209,792,000/RM71,205,840,000)= 2. 1%| (RM4,530,637,000/RM89,357,638,000)-(RM1,811,153,000/RM92,855,624,000)= 3. 12%| Net interest income refers the difference between revenue that is generated from the bank’s assets and expenses associated with paying out its liabilities. In the table above, RHB Bank’s net income is RM2,719,484,000 which is higher than Hong Leong Bank which have a figure of RM1,382,794,000. This means that RHB Bank has higher excess revenue and interest income after deducting interest paid on deposit from interest earned on assets.Percentage interest margin shows the dollar difference between interests earned and interest expense, as a percentage of earnings assets. Hong Leong Bank’s% interest margin is 2. 23% which is lower than RHB Bank which is 3. 04%. This implies that RHB Bank made a better investment than Hong Leong Bank due to higher percentage interest margin. Percentage interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. RHB Bank’s % interest spread is 3. 12% which is higher than Hong Leong Bank’s 2. 23%. Risk management| Hong Leong Bank| RHB Bank|Interest rate riskinterest sensitive assets interest sensitive liabilities| RM53,525,403,000RM58,608,751,000= 0. 91| RM69,007,842,000RM72,727,598,000= 0. 95| Credit risk net write-offs total assets| RM202,219,000RM77,730,208,000= 0. 26%| RM1,033,573,000RM105,179,231,000= 0. 98%| Liquidity risk :liquid assets/total asset liquid assets/deposits| RM33,849,607,000/RM77,730,208000= 0. 44RM33,849,607,000/RM7,004,664,000= 4. 83| RM29,990,240,000/RM105,179,231,000= 0. 29RM29,990,240,000/RM1,539,648,000= 19. 48| Capital risk :shareholders’ funds total assets| RM5,815,063,000RM77,730,208,000= 7. 48%| RM8,397,474,000RM105,179,231,000= 7. 8%| Interest Sensitivity ratio measures the interest rate risk and it measures the level of repricing irregularities between the bank’s assets and liabilities. RHB bank has an interest sensitivity ratio of 0. 95 while Hong Leong has 0. 91 which is slightly lower than RHB Bank. This implies that RHB Bank can replace assets with higher yielding assets quicker than replacing the low cost deposits with more funds compared to RHB. Credit risk refers to risk of loss of principal due to the borrower’s failure to repay the loans or otherwise meet the contractual obligation. RHB bank has a higher credit risk which stands at 0. 8 % compared to Hong Leong that has a lower figure of 0. 26%. This shows that Hong Leong is better in managing its credit risk compared to RHB. Liquidity ratio is used to measure the ability of the bank to repay off its short term obligations. RHB Bank has lower liquidity ratios of 0. 29 while Hong Leong has a higher ratio of 0. 44. This shows that Hong Leong has higher liquid assets to meet short term obligation and able to repay all short term debt in time compared to RHB Bank. The capital risk ratio is used to calculate the capital risk and it measures the financial stability of the bank.RHB Bank has a higher simple capital ratio that has a figure 7. 98% compared to Hong Leong bank that has a value of 7. 48%. This implies that RHB is well protected against any operating losses incurred than Hong Leong. Overall, in terms of risk management RHB Bank is performing well compared to Hong Leong Bank for the year ended 2010. Question 3: Comparison of forms of loans between RHB and Hong Leong Bank OverdraftsTerm loans/financing-Housing and shop loans/financing- Syndicated term loans/financing- Hire purchase receivables- Lease receivables- Other term oans/financingCredit/charge card receivablesBills receivableTrust receiptsClaims on customers under acceptance creditsBlock discountingRevolving creditStaff loans/financingFloor stockingOther loans/financingUnearned interest and incomeGross loans, advances and financingFair value changes arising from fair value hedgesUnamortised fair value changes arising from terminated fairvalue hedgesAllowance for impaired loans and financing-individual impairment allowance-collective impairment allowance-general allowance-specific allowanceAllowance for bad and doubtful debts and financing:- specific- generalTotal net loans, advances and financing| RHB Bank (RM’000)5,976,56915,908,732835,5889,322,667-29,854,4431,644,4651,418,203325,1774,130,205-3,491,071336,5281,56973,245,217-(682,522)(1,437,137)—-71123,9 89| Hong Leong Bank (RM’000)2,086,55016,933,8161,458,6333,284,687-1,653,6902,017,519211,01992,9823,184,6968,2181,219,78096,668-44,390(613,549)31,679,09928,3858,714—(306,807)(471,305)30,938,086|Credit risk is the risk of financial loss due to a borrower or counterparty being unable or unwilling to deliver on its payment obligations to the Bank, which leads to a loss of revenue and the principal amount. It arises principally from lending, trade finance and treasury activities (Hong Leong Bank Annual Report 2010 pg. 150). Based on the above table shows the comparison of the total amount of loans for Hong Leong Bank and RHB Bank for the financial year ended 2010. RHB Bank has the highest number of loans that stands at RM71,125,558,000 while Hong Leong Bank has a total of RM 33,589,093,000. However, based on the credit risk ratio RHB Bank has a higher credit risk which stands at 0. 98 % compared to Hong Leong that has a lower figure of 0. 26%.This shows that Hong Leong is b etter in managing its credit risk compared to RHB Bank RHB Bank has 2. 1times more loans than Hong Leong Bank, but it’s credit risk is 3. 76times more than Hong Leong Bank. It implies that Hong Leong is better in managing its credit risk and loan portfolio because most borrowers able to pay back the loan to the bank. Therefore, Hong Leong provided the best of the credit risk quality. In order for the bank to increase and strengthen the risk management practices, RHB Bank ensures to maintain the credit quality of its loan portfolios, improve cost effectiveness, and ensure the liquidity and capital stay strong throughout the financial year in 2010.Therefore, RHB Bank manages risk through clearly defined guidelines that are approved by the Board of Directors, through a framework of established control and reporting process. Hong Leong Bank also gives a strong priority for managing effectively in credit management. It is also managed by high-experience personal with high level re view undertaken by the Management Credit Committee under the supervision of the Board Credit Supervisory Committee. The bank integrated risk management structure is similar to RHB Bank whereby credit risk framework that is compliant with Bank Negara Malaysia’s guidelines on ‘‘Best Practices for the Management of Credit Risk†.The Group Risk Management Committee (GRMC) had been established by RHB Bank for risk oversight within the bank. Among the committees of this group are namely the Group Credit Risk Management Committee (GCRMC), Group Operational Risk Management Committee (GORMC) and Group Assets and Liabilities Management Committee (GALCO) assist the GRMC in managing credit risk, operational risk as well as market and liquidity risk. The committee ensures the development and implementation of risk policies as well as the effectiveness of policies. Among the exposure of credit risk in RHB Bank may be categorized as primary exposure. Loans, advances and fin ancing are the credit risk that arises in the primary exposure.Most of the lending activities in the bank are guided by the Group’s Credit Policies and Guidelines, in line with Best Practices in the Management of Credit Risk, issued by Bank Negara Malaysia. The credit risk policy includes an overview of the lending organisation, and the responsibilities of the parties in the organisation whereby the Board have a loan committee that oversees major new loan and renewals and the performance of the loan portfolio (Gup et al, 2007). Example, Hong Leong will be redeveloping a new credit risk system for corporate and commercial borrowers while for the retail segment, the bank has implemented a credit application and behavioural scoring system in order to improve the Bank’s ability to control credit losses within predictive ranges and achieve a well balanced portfolio.This is accordance to the Basel II that RHB Bank is also practising whereby every bank requires to hold adequa te capital in order to fulfil the minimum capital adequacy of the bank. This is also supported by Hassan & Muhammad, (2007) whereby bank loans are the most largest and obvious credit risk. Therefore the Basel II is required so that most banks will know how much capital they must hold. The Bank’s credit risk management process is documented and processed In the Credit Manual. One of the functions of the Credit Manual that is introduced by Hong Leong Bank is to set out the lending policies, lending authorities, credit risk rating, credit reviews, collateral, credit administration and security documentation, and timely rehabilitation and restructuring of problematic and delinquent accounts.Apart from that, this is to ensure that structures are there to maintain to enhance the Bank’s risk assessment capabilities in key areas of credit that includes sound credit policies and procedures, quality credit approvals, appropriate risk measurement. ARHB Bank does not have this Credit Manual but they form a second line defence that formulate the risk management policies. The function of an internal audit is to provide independent reviews of the quality of the loans (Gup et al, 2007). Based on the Hong Leong Bank Annual Report (2010), it states that Internal Audit conducts independent post to reviews on the financial statements and the capital of the bank.This is to ensure that the qualities of credit risk and approval standards are in accordance with the credit standards and the lending policies and directives established and approved by the Bank’s management and Board of Directors. Question 4: Conclusion In conclusion, the performance of Hong Leong Bank for the financial year ended in 2010 is not as good as its peer bank RHB Bank. This is due to that the ROE is lower compared to RHB Bank. This can be improved by not relying too much on debt financing for its operations and to provide more return to investors. Also, Hong Leong Bank did not create m uch value to the shareholders due to low ROE. However, only the net margin part is the main strength of Hong Leong compared to RHB Bank This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank.This is a good indicator as this prevents wastage and smartly uses the assets to generate more income. The liquidity ratio for both the banks are below 1 which is not safe for both banks because they cannot meet the requirements to pay off the obligations and current assets are less than current liabilities they having. Based on the ratio analysis for year 2009 to 2010, the ROE, ROA and net margin ratio shows a good improvement due to economic boom and inflation happens during the period. However, in 2009, most of the ratio for Hong Leong Bank declines because may be due to economic recession and the decline in the economic activity of the bank.For the credit risk, RHB Bank did not manage its credit risk well compared to Hong Leong based on the credit ana lysis. RHB could improve their credit risk by having an internal audit to check on the loan defaulters and the accounts. Personal experience of visiting banks We visited Hong Leong Bank and RHB Bank in Ampang branch and Cheras branch. We asked the branch manager of RHB Bank for more details of their items on balance sheet and income statement. She did not know what items are called interest earning assets in Balance sheet. She does not know Income Statement and Balance Sheet. I was surprised, she is a manager and she does not know.She was kind enough to call the headquarter of RHB Bank and made me speak to the person in charge of financial statements. Well, I was told that each bank has different items calling interest earning assets and liquid assets. He cannot release those details. The RHB Bank and Hong Leong Bank in Ampang Branch have 400 to 500 customers daily and they are overcrowded during lunch hours. However, the RHB Bank has 100-150 customers daily and Hong Leong Bank has 50-100 customers daily in Cheras branch. Most customers come during the lunch hours. Ampang branch has more customers compared to RHB Bank. Thus it depends on location, the number of customers visit banks. Below are the cards of Hong Leong bank and RHB Bank:Ampang Branch Cheras Branch Part B: Virtual Bank Balance Sheet |   |   | |   |   |   | | Liabilities| |   | | Asset| | 1. Deposit| | |   | 1. Gold and foreign exchange| i. Current deposit | |   | 2. Cash and Liquid Assets| | ii. Fixed deposit| |   | 3. Securities| | iii. Certificates of deposit|   | i. Trading securities | | iv. Other deposits such as call deposits, cash| ii. Investment securities | | management accounts and savings account| iii. Short term discount security| 2. Non-deposit liabilities| |   | iv. Long term bonds or notes| Liabilities due to clearing houses and financial| 4.Loans and advances| | institutions and rank in priority after deposit| i. Overdraft | | i. Repurchase agreements|   | ii. Credit card outstanding| ii. Promissory notes| |   | iii. Housing finance | | iii. Liabilities on bill acceptances|   | iv. Other term loans| | iv. Corporate bonds and other long-term borrowings| v. Lease and hire purchase finance | 3. Due to other banks| |   | 5. Due from other banks| | 4. Trading derivatives| |   | 6. Trading derivatives| | 5. Other financial liabilities at fair value| 7. Other financial assets at fair value| 6. Other borrowings| |   | 8. All other asset| | 7. Bonds, notes, and subordinated debt| 9.Due from customer on acceptance | 8. Other debt issues| |   | | | | 9. All other liabilities| |   | | | | 10. Goodwill and other intangible asset| | | | | | |   | | | | | | |   | | | | | Capital| |   | | | | Capital acts as a buffer against unexpected losses and| | | | protects against insolvency. |   | | | | i. Debt capital : borrowed funds|   | | | | ii. Equity capital : shareholders' fund| | | | NOTES : Asset 1. Changes in this item reflec t transactions of the following kinds: a. the Bank's transactions in foreign exchange and foreign securities (including under repurchase agreements); b. earnings on foreign currency investments; and c. hanges in the valuation of foreign currency and gold, and changes in the market prices of the Bank's holdings of foreign currency securities. 2. Liquid assets are assets that can be converted into cash quickly without loss of value 3. i. Trading securities : banks plans to sell before maturity ii. Investment securities : banks plan to hold till maturity iii. Short term discount securities : pay face value at maturity iv. Long term bonds or notes which pay coupons during the life of the security and the face value of maturity. 4. Includes loans, deposits with central banks and other regulatory authorities and settlement account balances due from other banks.Amounts due from other banks are initially recognised at fair value and subsequently measured at amortised cost. Advances: non-der ivative financial assets with fixed payments that are not quoted in an active market i. Overdraft : – borrower can draw up to the limit * Interest payable on amount drawn * Commitment fee is payable on the undrawn amount| ii. Credit card outstanding: – borrower can purchase on credit| or take cash in advance -form of revolving credit -Interest payable on amount drawn -annual fee may be charged | | | | iii.Housing finance : – Mortgage where the collateral is real estate – loan application fees are charged – variable rates(up to 30 years) – fixed rates(3-5 years)| iv. Other term loans : – example such as fully drawn advance – maturity of 5-8 years – a single loan of a specific dollar amount – fixed interest rate – application fees, establishment fees – repayment maybe fully amortised or structured to match the profits Generated by project being finance. | v.Lease and hire purchase finance : – se cured loans where the collateral is an asset – term of loan related to the life of the collateral – fixed interest rate – application fees, establishment fees| | | 5. Trading derivatives have not been shown by contractual maturity because they are typically held for various periods of time. 6. Also called as market related contingencies such as futures, swaps, options, forward rate agreements 7. example: land, buildings 8.Due from customer on acceptance : customer who wants to borrow from the bank may be offered a â€Å"bill facility† and the customer must agree to repay the bank. The bank is the acceptor(promise to pay the holder the face value Liabilities: Deposit: 1. Current deposit : – No maturity and no minimum balance – Withdrawals by writing a cheque or through electronic transactions – May be interest bearings(variable interest rate) or non-interest bearing 2. Fixed deposit : – Minimum amount – Specific term eg. 1-5 years – Early withdrawals incur a penalty – Fixed interest rate 3. Certificates of deposit : – Face value at least $100,000 – Maturities between 14-270 days – Fixed interest rate – Originally issued at par but may trade above or below depending on Market yields. At maturity, receives face value plus interest 4. The deposits : a) Call deposit – must give notice of withdrawal, variable interest rate b) cash management accounts – minimum balance requirement, variable interest rate linked to money market yields c) savings account – no minimum balance or notice of withdrawal requirements – variable interest rate Non-Deposit: i. Repurchase agreements : – banks borrow for a short period (5 years) – sell securities with an agreement to repurchase on agreed date at agreed price ii. Promissory notes : – discount securities – bank sells to the market iii. Liabilities on bill acceptance : -bank is the acceptor and pays face value at maturity iv.Corporate bonds and other long term borrowings : example domestic bonds, eurobonds Due to Other Banks: Includes deposits, vostro balances, repurchase agreement and settlement account balances due to other banks. Trading derivatives: Financial liabilities at fair value are financial liabilities held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term. | Other financial liabilities at fair value Borrowings are initially recognised at fair value, net of transaction costs incurred. It is subsequently carried at amortised cost, any difference between initial recognised amount and the redemption value is recognised in the profit or loss.For example: borrowing from reverse bank, other banks, or borrowing from outside of the country. Other financial liabilities at fair value: Short term and long-term debt issues of the group including commercial paper, notes, term loans, medi um-term notes, mortgage backed securities and other discrete debt issues. All other liabilities: I) Bills Payable (drafts, telegraphic transfers, mail transfers payable, pay slip, bankers cheques, other miscellaneous items, etc) II) Inter-Office (The inter-office adjustments balance, if in credit, should be shown under this head. Only net position of interoffice accounts, inland as well as foreign should be shown here)III) Interest Accrued (Includes interest due and payable and interest accrued, but not due on deposits and borrowings Includes net provision for income tax and other taxes like interest tax (less advance payment, tax deducted at source, etc. ) IV) Deferred Tax (surplus provisions in bad debts provision account, surplus provisions or depreciation in securities, Contingency funds which are not disclosed as reserves but are actually in the nature of reserves, proposed dividend/transfer to Government. ) V) Others (which are not disclosed under any of the major heads such a s unclaimed dividend, provisions and funds kept for specific purposes, unexpired discount, outstanding charges like rent, conveyance, etc. certain types of deposits like staff security deposits, margin deposits, etc) Goodwill and other intangible asset:Goodwill arises on the acquisition of an entity and represents the excess of the aggregate of the fair value of the purchase consideration and the amount of any non-controlling interest in the entity over the fair value of the Group’s share of the identifiable net assets at the date of the acquisition. Capital Debt capital : borrowed funds, ranks higher than equity capital for the repayment of annual returns. Equity capital : -shareholders’ fund which represents the remaining interest in assets of a company. -permanent commitment of funds -earns the residual income of the firm after all interest and other costs -main components includes issue share, reserve and retained earnings References Hong Leong Bank. (2011). Annual Report: 2010. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar2010. pdf RHB Bank. 2011). Annual Report: 2010. Retrieved September 12, 2011 from http://www. rhb. com. my/corporate_profile/investor_relation/pdf/annual_reports/2010/RHB%20Bank%20Berhad%202010. pdf Gup, B. E. , Avram, K. , Beal, D. , Lambert, R. , ;amp; Kolari, J. W. (2007). Commercial Banking. Milton, Qld: John Willey ;amp; Sons Hassan, H. , ;amp; Mohammed, F. (2007). Banks’ risk management: a comparison study of UAE national and foreign banks. The Journal of Risk ;amp; Finance, 8(4), 394-409. Hong Leong Bank Berhard. (2009). Annual Report: 2009. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar20091. pdf Milbourn, G. , ;amp; Haight, T. (2005).Providing Students with an Overview of Financial Statements Using the Dupont Analysis Approach. The Journal of American Academy of Business, Cambridge. 9(3), 46-50 Narayanan, L. (2010). How DuPont Analysis Reveals Return on Equity Ratio. Managing Credit, Receivables ;amp; Collections. 2(1), 12-14. Pinsent, W. (2010). Decoding DuPont Analysis. Retrieved September 2, 2011, from http://www. investopedia. com/articles/fundamental-analysis/08/dupont-analysis. asp Class Dupont. (2010). Current Financial Accounting. Retrieved September 10, 2011, from http://www. sjrbiz. info/Current%20Classes/Financial%20Accounting%20Class/Dupont%20Model%20in%20a%20Nutshell. pdf

Effectiveness Audit Accessibilities for Senior Citizen Comfortability

EFFECTIVENESS AUDIT ACCESSIBILITIES FOR SENIOR CITIZEN COMFORTABILITY: ( A CASE STUDY OF THE HERITAGE RESIDENCES AND HEALTH CARE CENTRE IN MALAYSIA ) Abstraction Missing in accessible environment will curtail aged and handicapped individual to bask their life ( Tan, 2008 ) . Person with disablements ( PWDs ) will restrict by the physical barriers in a edifice. Therefore, it is necessary to analyze ways to better the degree of handiness in edifices for the aged and handicapped people in the built environment, particularly in infirmary and retirement Centre. This paper tends to place the degree of handiness in infirmary and abodes edifices in Selangor, Malaysia. This survey comprises literature reappraisal, informations aggregation, observations and table research to research on how to accomplish friendly and comfy entree for all particularly aged and handicapped. This survey tends to make full the spread of the old survey on the handiness of senior citizen and disables. The findings will let the edifice supplier to upgrade bing installations in order to suit accessible built environment for the aged and handicapped people. Findingss revealed t hat failings found are caused by hapless design, deficiency of policies and ordinance every bit good as limited guidelines. Final portion of this paper provides some recommendation in proposed guidelines in regard to the individual with disablements ( PWDs ) needs. Keywords: Accessibility, Person with disablements ( PWDs ) , Built environment 1. Introduction Malaysia is a underdeveloped state with a population of 29.62 million in twelvemonth 2013. Out of this 29.62 million, 1.56 million – 2.75 million are those aged and people with disablements ( PWDs ) . Although the population of Malaysia is considered younger than others developed states, nevertheless the ageing population is increasing twelvemonth to twelvemonth resulted from birthrate diminution. It is proven from the Statisticss of Malaysia that ageing population is increasing about 5 % each twelvemonth. Harmonizing to a old survey, it is estimated that the population of ageing and aged will increase to 15 % of the state population in the twelvemonth 2030. Health attention and residences edifices take on particular significance as the rapid increasing of ageing and disabled in our society is widely recognized today. As the aged and handicapped population grows, it is progressively of import to happen a more efficient service for this group. This survey can be a guideline for architecture, developer every bit good as authorities bureau in fixing the act and ordinance in reinforced environment. This survey highlighted that accessible design must do edifices more approaching and easier for come ining and utilizing. In concurrence to this, an accessible design must incorporate with the inside and outside of edifice elements. In other words, an accessible design should able supply a high degree of safety life and should let people to execute their day-to-day life and activity more freely. Last, accessible design must incorporate with a edifice ‘s map, layout every bit good as signifier. This seminar paper will discourse about the effectivity and process to carry on entree audit for handicapped comfy. The concluding aim of this authorship is to measure and happen another attack to supply a pleasant entree audit. In order to supply accessible environment for ageing and aged, it is of import to understand assorted group of individual with disablements. B asically individual with disablements can be divided into four major classs which are orthopedic, centripetal, cognitive and multiple. Orthopaedic This class is the people who are enduring orthopedic disablements such as locomotor disablements. Sensory This group of individual with disablements refers to people with centripetal disablements in footings of either hearing or ocular. However, this group of people normally come in both which mean they will endure both. Cognitive Peoples in this group refer to them who are enduring mental illness such as development or acquisition disablements. Multiple Multiple refer to those who are enduring with the combination of orthopedic, centripetal and/or cognitive disablements. 2. ELDERLYttriumAND PERSON WITH DISABILITY ( PWDs ) Elderly or senior citizens refer to those who are at age of higher than mean life span of homo. However, there is no formal boundary age for aged and senior citizens. It is vary from each state on how the state defined the boundary for aged and senior citizens. In Malaysia, elderly or senior citizens are those who are in age of 60 old ages old and above while individual with disablements are those who are enduring job in term of orthopedic, centripetal, cognitive every bit good as combination of these three. In order to protect the individual with disablements, Malaysia authorities has introduced Persons with Disabilities Act ( PWDA ) in 2008. In the twelvemonth 2006, around two hundred 1000s of handicapped people have been registered under the Department of Social Welfare Malaysia ( DSW ) . Graph 1 Population of Elderly and Disabled Person in Malaysia and Australia in 2009 Beginning: Wellness National Data 2009 – Institute of Gerontology, UPM Graph 2 Aging Populations in Malaysia from 1970 to 2020 Beginning: Department of Statistics, Malaysia 3. CodeOFPRACTICEON ACCESSFOR DISABLED Peoples: DESIGN AND ARCHITECTURAL ELEMENTS In order to protect individual with disablements, Malaysia authorities has introduced Malaysia Standards on Disabled Person ( MS ) in 2002 and a more recent and powerful one which is Persons with Disabilities Act ( PWDA ) in 2008. Malaysia Standards on Disabled Person ( MS ) in 2002 is concentrating on supplying comfort environment and installations for handicapped individual in Malaysia. However, this is merely a criterion but non Acts of the Apostless, hence some garbage to follow the guidelines or the Standards. Therefore in 2008, Malaysia authorities introduced the Persons with Disabilities Act ( PWDA ) . Part of this act has written that those who did non obey or follow the act will be all right and gaol. There are fundamentally five elements to be considered in planing infirmary and abode edifices which are:Obstructions Figure 1: Obstructions Beginning: Sciverse ScienceDirectStreet furniture Figure 2: Idea dimension of tabular array that fits wheelchair users Beginning: Sciverse ScienceDirectCurb inclines Figure 3: Design of Curb inclines Beginning: Sciverse ScienceDirectParking Figure 5: Dedicated parking tonss design for the individual with disablements Beginning: Sciverse ScienceDirect 4. REVIEW OF EFFECTIVENESS AUDIT ACCESSIBILITIESHospital Sungai Long ( HSL ) Figure 6: Hospital Sungai Long Beginning: HSL web page at hypertext transfer protocol: //hospitalsungailong.com/web/contact-us/location-map.html Hospital Sungai Long is located at Pt 21147, Persiaran SL1, Bandar Sungai Long, 43000 Kajang, Selangor, Malaysia. This edifice consists of 6 floors with 60 beds available. This infirmary began its operation in 2012. An entree audit was performed in April 2014 for bing edifice and installations. Based on the observation and findings, this infirmary is non so accessible for aged and PWDs. Figure 7: Parking tonss of HSL Beginning: Case survey of HSL, Kajang ( 2014 ) This is the lone parking batch next to the chief entryway provided by Hospital Sungai Long which consists of non more than 10 tonss. In concurrence to this, there are 4 parking tonss provided for physicians and specializers staffs of Hospital Sungai Long. In fact they didn’t provide any parking tonss for aged and handicapped individual that should approach the chief entryway. It will take a long distance for aged to travel through the chief entryway. Besides that, there are no pronounced parking infinites across the site for those who are registered under individual with disablements ( a valid spine ) . In order to work outing this job, Hospital Sungai Long should supply parking tonss for aged and disabled that near chief entryway and painted in different colour from other tonss. Figure 8: Main entryway of HSL Beginning: Case survey of HSL, Kajang ( 2014 ) The figure shows the chief entryway of Hospital Sungai Long. Hospital Sungai Long is utilizing manual operation door and it is hard undertaking for aged and disabled to open the door particularly those utilizing wheelchairs. Other than that, it may make some uncertainness for aged and individual with disablement such as autumn down to floor and others. Therefore, it is recommended that Hospital Sungai Long should utilize automatic door for easy usage of aged and handicapped individual although it incurred a higher cost. Figure 9: Nerve pathway of HSL Beginning: Case survey of HSL, Kajang ( 2014 ) The tract provided from Hospital Sungai Long is excessively slanted. The tract has exceeded the Malayan Standard MS 1184: 2002 which is non more than 1:12. It is hard for aged and individual with disablements to acquire usage of it. Therefore, Hospital Sungai Long should supply a tract of gradient non more than 1:12. Figure 10: Toilet in HSL Beginning: Case survey of HSL, Kajang ( 2014 ) This is the figure of lavatory provided in Hospital Sungai Long. The lavatory is good equipped with inveighing that easy accessible for the aged and handicapped individual. However, the country is excessively little. The country is a spot narrow for wheelchairs users. Besides that, there is no haptic surface installed. The installing of haptic surface is to avoid those uncertainnesss such as autumn on floor and others. As a decision, Hospital Sungai Long should better installations provided for aged and individual with disablements by enlarge the size of lavatory and put in haptic surface. Figure 11: Lift installed in HSL Beginning: Case survey of HSL, Kajang ( 2014 ) The figure shows the lift installed in Hospital Sungai Long. Overall, the lift is user friendly. For illustration, the button is 1200mm from the floor degree and it is easy accessible for wheelchairs users. However, there is no haptic warning surface installed in forepart of the lift. Therefore, it is recommended that Hospital Sungai Long should supply tactile warning surface for vision impaired and a bigger lift that able to suit more wheelchair users.

Career Goals and Learning Plan Paper

Career Goals and Learning Plan Paper Throughout the years, when it comes to personal and business tasks, it has been my experience that I have bad times, and good times during the day. In reference to my optimal learning time I find that during the early morning hours, I am able to read, write, and thoroughly soak up new information until late afternoon. It is very hard for me to begin a task during late afternoon and evening hours, however, once I begin, I wind up, and begin working until early morning. I get no rest this way. According to Carter, Bishop, and Lyman (2007) â€Å"Knowing how you learn helps you choose study techniques that capitalize on your strengths† (Chapter 2, p. 49). After reviewing my results from the Multiple Intelligence test and the Personality Spectrum I realize that I am a â€Å"Visual /Spatial, (a visual) learner†. I learn best when I highlight the most important points in a document, journal, or book using different colors (the colors identify the priority of a statement). I also find it useful when I group all the information that I have highlighted into one document. Viewing videos on a subject, for me, helps me retain more information. In the past videos have been valuable tools as regards to my leaning style. Malcolm Knowles (2005), a pioneer in the field of adult learning believed that; adults need to see more clearly how what they are being asked to learn will benefit them; for adults, learning is much more utilitarian than it is for children. He explained that adults are motivated to learn from being in situations in which they see a need to learn, adults also learn from their experiences, and are resentful of being told what to learn. Therefore, the most productive adult learning comes from the analysis of adult experience (p. 75). My accumulated life experiences have enabled me to become a better student. However, I am not in complete agreement that adults are resentful of being told what to learn. How can one obtain a degree, or maintain a job if they resent authority? I have my own theory about that. I believe that some people, not all, are intimidated by adults because of their life experience; therefore, they automatically assume that we are resentful. For me every day is a life, learning experience. I meet so many people, from all over the world on a daily basis and I embrace and enjoy the experience of being taught, told, and learning from their knowledge. Knowledge is a gift. We can only benefit if we listen. I learned the art of listening at a very young age and I am glad that I adhere to it. Acknowledging, and accepting authority is a sign of respect. During my undergraduate studies, a young, 27 year old Instructor, tutored me, and made it possible for me to pass a Statistics class. My experiences in life have taught me how to become a motivated, and respectful adult learner. Kearns and Gardiner (2007) explained that (as cited by Gillespie, Walsh, Winfield, Dua, and Stough, 2003, p. 53-72) â€Å"Today’s students will tell you that demands of lectures, study, assignments, exams, technology and work, there is barely any time for life. Recent studies indicate these time pressures seem to be getting more critical for already overworked university staff and students† (p. 235). Fitsimmons (2008). Stated that Good Planning ensures that you get to a desirable end with a project or other effort, whether that project is something specific to your library workplace, or your whole career† (p. 61). I began by making a To Do List that corresponds with my class syllables, and my work assignments. When studying, I begin with the most difficult subject or task. Fortunately, I am self employed; therefore, it is easy to set my client appointments around my scho ol schedule. In reference to how I organize my assignments. I create individuals on my computer folders for my discussions, my assigned readings, my research, and my assignments. I pick a time to complete my work and as each task is completed I mark it off on the syllables as done. It is much easier when I scan through the assigned readings, (highlighting the important points) first, and then I move on to completing my assigned work. I follow the guidelines of thinking like the writer when I read in order to get a complete understanding of what I am reading. I leave enough time for work, family, me time and social time. But even at those times I am asking questions while speaking to family and friends who are interested in what I am doing. Good planning is the only way to succeed with time management. Kearns and Gardiner (2007) identified four main time management behaviors: â€Å"having a clear purpose in your career† (being clear about your personal goals), â€Å"planning and prioritizing† (setting aside time, and creating a planning schedule that allows you to complete tasks), â€Å"avoiding interruptions and distractions† and â€Å"being organized which includes being tidy, quickly responding to mails, and having an efficient filing system† (p. 1). Staying optimistic, believing in the magic of my dreams (visualizing), I have learned to manage the stress associated with my decision to return to school to obtain a Master’s in the Science Psychology. There are many career paths that are available with this degree. With a Masters Degrees I may be able to apply for positions in group counseling practices, clinics, program for specific populations (drug abusers, battered wives, etc. ), and employee assistance programs. A masters degree gives you more occupational advantages than a bachelors degree, but less than a doctoral degree. My preferred career path is to work with homeless and abused and battered women. I have first hand, and second hand experience in dealing women in this situation. However, I have been out of the workforce for many years, and I realize that I may need to complete some extensive volunteer work, in order that I may demonstrate that I have an immense amount of experience in this field. With my cosmic interpersonal skills I would become an asset to any agency. There are also other careers that interest me, such as, Case Worker, Director of Volunteer Services, Drug/Substance Abuse Counseling (which requires a certificate in Casack Substance Counseling), Program Manager, and College Admissions Counseling. In Conclusion, being optimistic about knowing my learning style, staying organized, and giving myself time to work on my studies, keeps me healthier, less stressed and more successful in completing my personal goals.

Chemical sensor Essay Example | Topics and Well Written Essays - 3000 words

Chemical sensor - Essay Example Amperometric glucose sensors proves worthy in monitoring of diabetic patients’ blood glucose levels wherever they are. Such constant monitoring of blood glucose has spurred other affiliated health sector needs for improvement of the condition. It is apparent that effective treatment and management of diabetes conditions requires reliable data of glucose levels that does not fluctuate. In such needy cases, amperometric glucose sensors assist in monitoring of patients blood glucose. Monitoring of blood glucose levels presents a constant glycaemic regime that both the patient and health professional can rely on. Subsequently, health professionals can make imperative diagnosis and treatment of diabetic conditions. Research on management of diabetic conditions largely relies on proper data for the levels of blood glucose amongst diabetes patients during normal activities. In ensuring use of reliable and constant blood glucose levels, there is need to develop clinical devices that can monitor and provide day and night blood glucose levels. Such requirements indicate the need for amperometric glucose sensors to provide constant data of blood glucose levels. Therefore, the presence of amperometric glucose sensors within the health sector is authoritative in effective management, treatment, diagnosis, and research about diabetes. It is imperative to note that the introduction of amperometric glucose sensors have greatly enhanced research and management of type 1 diabetes within the health sector. Moreover, it has increased confidence of both patients and health professionals towards a possibility of overcoming the deleterious disease. Essentially, the ability of amperometric glucose sensors to determine accurately the level of concentration of blood glucose has caused a revolution in health care. Accurate determination of glucose levels within the blood has lead to improved health services within the community. The foremost

Two part paper about the recent financial crisis and Hyman Minsky's Dissertation - 1

Two part paper about the recent financial crisis and Hyman Minsky's theories - Dissertation Example The stationary properties of all the variables are examined using Augmented Dickey Fuller (ADF) unit root tests. To test for stationarity, the unit roots for each of the series are examined using the Augmented Dickey Fuller (ADF) unit root tests developed by Dickey (1976); Fuller (1976); Dickey and Fuller (1979). Here the null hypothesis that the time series belongs to the difference stationary process against the alternative that it belongs to the trend stationary process has been tested using two models, one with constant and the other with constant and trend. The optimum number of lags is selected using Akaike Information Criteria. 45 3.4 Hypothesis Testing 47 3.5.4 Model Limitations 48 3.6. 5 Hyman Minsky’s Articulation 49 Chapter 4 – Statistical Result 55 4.1 Empirical Evidences for Greenspan’s Theories 55 H 63 R 63 D 63 B 63 FRM 63 Constant 63 -1.000 63 0.03(0.56) 63 0.07(0.04) 63 0.09(0.03) 63 -0.002(0.65) 63 -0.23(0.03) 63 0.002(0.15) 63 -1.000 63 0.04(0. 03) 63 0.43(0.04) 63 -0.004(0.21) 63 -0.65(0.76) 63 0.001(0.14) 63 0.002(0.013) 63 -1.000 63 0.32(0.14) 63 -0.001(0.11) 63 -0.43(0.16) 63 4.2 Empirical Evidences for Taylor’s Theory 67 Price Expectations and Housing 70 4.3 Empirical Evidences for Hyman Minsky’s Theory on Financial Crisis 72 Chapter 5 – Data Analysis and Interpretation 75 5.1 Discussion of Greenspan’s Theory 75 5.2 Discussion of Taylor’s Theory 83 5.3 Discussion of Minsky’s Theory 88 Chapter 6- Conclusion 94 References 100 Chapter 1- Introduction 1.1 Background In 2007, a number of leading European and U.S. banks were severely impacted by the collapse of mortgage-backed instruments that were mainly a by-product of their ‘packaging’. To the dismay of financial institutions, these toxic assets comprised a major portion of the bank’s asset base. The high demand in the housing market was triggered by historically low (many would argue below equilibrium) intere st rates. This ‘artificial’ demand led to a bubble in the housing sector that subsequently burst once the Fed raised interest rates, paving the way for a series of delinquencies. Buoyed by the booming housing market, banks granted loans to subprime borrowers who under ‘normal’ conditions, would have been rejected. With the rise in interest rates, these subprime borrowers failed to pay back on their house payments which resulted in a plethora of loan foreclosures. The rising defaults led to a credit crunch because financial institutions suddenly became very wary of lending to each other. For example, a steep rise in liquidity costs resulted in the â€Å"first bank run† in Britain in over 150 years. The enduing credit crisis was the result of a sustained period of global imbalances and bubbles in asset prices. The Federal Reserve continuously kept interest rates at unprecedented low levels for a significant part of the decade, setting the stage for che ap credit. Many business leaders and financiers across the world considered U.S. households

Should the capital punishment be allowed Essay Example | Topics and Well Written Essays - 2750 words

Should the capital punishment be allowed - Essay Example 46). The increased number is attributed to these four nations being most populous nations globally. The death penalty is matter controversy in different nations across the world. The positions are varied based on either cultural region, or political ideology. Among the member states of the European Union (EU), Article 2 of the Charter of the Fundamental Rights of the EU prohibits the use of capital punishment (European Union, 2010). In the same way, the Council of Europe that is comprised of 47 member states does not allow capital punishment among its members. The public opinion in relation to the death penalty varies considerably. Nonetheless, studies have evidenced adequate reasons as to why the death penalty needs to be abolished. Hodgkinson and Schabas (2004, p. 57) shares the evidence that the death penalty needs to be illegalised because life is very valuable. Life is very important and even murderers are not supposed to be deprived the value of their lives. Life cannot be taken back and every justice system is vulnerable to failure. Therefore, capital punishment puts numerous innocent lives at risk (Kronenwetter, 2001, p.53). Any mistake from the prosecution team may lead to demise of an innocent person. In the same way, innocent people will be prosecuted and killed due to flaws in the justice system. Justices, prosecutors, and witnesses can makes mistakes, which may result in the wrongful convictions of persons. It therefore becomes inevitable that innocent individuals may be sentenced to death for capital crimes. For example, in America, according to Amnesty International an estimated 130 people have been found to be innocent who were on death row. The mentally ill persons may also be executed not knowing why the reasons for their mistakes. The uncooperative and cold behaviour of the mentally challenged persons in the courtroom makes them unable to participate in the trials. As a result, they convicted and put on death row when they are

Nectar Fruit Juices Essay Example | Topics and Well Written Essays - 1000 words

Nectar Fruit Juices - Essay Example During the analyses of different elements and factors, there have been several recommendations made which can be beneficial for the officials of NFJ to discuss, follow, and execute them in their December 2011 meeting. One of the main recommendations made in the light of analysis is the introduction of more flavors of nectar fruit juices that intrigue more of the children under 15 years of age, as the analysis has shown majority of the NFJ users to be under 15 years of age. The report will be consisting of 5 sections in total (including the section 1 of introduction). Second section will be presenting analyses of the data collected through the collection of answers of the questions, where the questions will be discussed and analyzed one by one. Third section will be presenting different options that may be considered by the management for key decision making purposes. The fourth section will be presenting the validity of this analysis and describing the use of this report for future r eferences. The final section will conclude the report and will provide general recommendations. 2. Results and analysis This section will present the findings and analysis based upon the answers taken from all the surveyed students. The section will analyze the questions one by one in the form of subsections, where the results will also be mentioned. 2.1. Racial or ethnic group: The students who were chosen to take part in the questionnaire were of different ethnicities as they mentioned in their survey forms. The final data collected from that scheme has been provided in the form of a pie chart below in figure 1: Figure 1: students’ ethnic groups The figure shows that more than half the students were white or European, as the survey was being filled in a European country. Therefore it was highly likely that majority of the participants will belong to the white community. The second major number participants were the Asians. This is because of the immigration of more than 100 million Asians who are residing in different countries of Europe and its normal perception of Asian people to take part in the social activities in Europe. Other people belonged to West Indian, African, or other ethnicities. 2.2. Ratio of male to female participants: As the graph in figure 2 suggests, the ratio of male to female participants who filled the surveys was nearly 55:45, which means almost an equal number of males and females invited to participate and give their views about NFJ. Figure 2: Male to female ratio of participants. 2.3. Drinks per week by the groups: The data shows different age limits and their consumption of drinks on weekly basis. The data shows the average number of drinks that are consumed by the people of different ages. Referring to the figure 3 given below, the people between 6 to 10 years of age consume the largest number of nectar fruit juices, as this suggests that the children are more intrigued by the tastes and flavors in which these juices are available in the market. Figure 3: Percentage of drinks per week groups The figure also shows that the children of 1 to 5 years of age, as well as the teenage from 11 to 20 years of age also consume NFJ more on weekly basis compared to those who are more than 21 years of age. Another important finding in this graph is that around 13% of the people have claimed to never use the nectar fruit juices. There are two points that this analysis will lead the managers to think about. First one is that

SET ASIDES Research Paper Example | Topics and Well Written Essays - 1250 words

SET ASIDES - Research Paper Example On analysis the justification for why VA and Defense Department are chosen as providing the best contracting opportunities for NAICS 561730 is shown and supported with evidence. Finally, the best available contracting opportunity for NAICS 561730 is identified and the reason stated. Set Aside Introduction Set aside contract is ‘’a federal contract under which only small business are allowed to bid’’ (HJ Ventures, 2004). The set aside small business contracts are mainly awarded to start ups, minority owned businesses, women-owned businesses, disabled people businesses, veterans group businesses and other special groups businesses. These type of businesses mostly lack capital and experience to start or expand thus they lack the machinery to compete with large or other successful businesses. In order to help them overcome those challenges that why the government reserves some of it contract specifically for them. A part from the special treatment in bidding fo r the contracts the small business owners stands to gain the following benefits under these programs: training courses and counseling on owning or managing a business, and additionally they are eligible for various loans and advance payments within the program (Guthrie, 2011). Set-asides though awarded on special basis have been quite controversial in business context since the projects from the private sector are mainly awarded on the basis of price, performance, value added and quality, while set-asides are awarded on basis on size, class, race, gender, thus harming legitimate businesses and breeding corruption (Bbutkins, 2010). Under the Small Business Act, the law bids the federal agencies to carryout various procurements that are partially or wholly reserved for small business participation (FSD, 2010). Under this act there are several set-aside categories for the different small businesses ventures which include: Competitive 8(a), Emerging Small Business, HUBZone, Partial Hist orically Black College or University (HBCU) / Minority Institution (MI), Partial Small Business, Service-Disabled Veteran-Owned Small Business, Total HBCU / MI, Total Small Business, and Veteran-Owned Small Business (FSD, 2010). Therefore small business set-aside categories will award certain acquisitions exclusively to eligible small business concerns. Hence a set-aside may totally or partially open to all small businesses, a single acquisition or a class of acquisitions. In the procurement bidding process the set-asides are conducted through simplified acquisition procedures, sealed bids, or competitive proposals. The small business set asides are awarded contracts either as the primary contractor or sub-contractor. According to the North American Industry Classification System (NAICS) categories 561730 Landscaping Services is defined as ‘’ventures that specialize in providing landscape care and maintenance services and/or installing trees, shrubs, plants, lawns, or g ardens and ventures that specialize in providing these services along with design of landscape plans and/or the construction of walkways, retaining walls, decks, fences, ponds, and similar structures’’ (NAICS, 2007). Landscaping services provide employment to a quite sizable portion of the American population and also improve the outlook of households. They also significantly improve the value of homes. More than 14500 businesses in the United States are classified as landscaping services (NAICS 561730), with majority of these ventures comprising of a workforce

Organize and discuss the elements and procedure for conducting a Essay

Organize and discuss the elements and procedure for conducting a research project - Essay Example From the conclusions, recommendations are made and a course of action is taken (Denscombe, 316). With matters dealing with criminal justice, the method is not much different. First, the issue has to be stated, then it is discussed, and conclusions are drawn. Where steps look like they may have been skipped, the research objectives are within the job description of solving crime, and methodology and data collection is done during the discussion of the issue if it has not been done already. The matter at hand for this discussion is that of charging children as adults for the crimes they commit. When children are charged as adults for crimes, it can leave a permanent mark on their record that they will never be able to outlive. It is believed by some that this method of criminal justice will serve as a warning to those who would otherwise do harm to others, saving untold numbers of people from harm and homicide. Others believe that the children who are sentenced to these kinds of charge s are from states of disenfranchisement, with matters only made worse by the fact that where they once did not believe they would overcome their situations, they are now supported in their own conclusions, guaranteeing them a life of less opportunity than those who may commit the same crimes, but do not suffer the same consequences as a result of the advocacy they receive from their community. In conducting researching for issues in the criminal justice system, the two most common methods are quantitative and qualitative (Maxfield; Babbie, 23). Quantitative analysis is that which deals with concrete facts, or quantities. The number of traffic citations a police officer gives would be quantitative as would his or her hours. Qualitative analysis is less concrete as it deals with areas that cannot be measured. Satisfaction from those who receive tickets with the demeanor of the ticketing officer would be qualitative. This, however, is not easy to determine as dissatisfied citizens are more likely to call in about an officer than those who had a pleasant experience. Countering this, though, is the common practice of placing cameras on vehicles, allowing supervisors to review their subordinates to ensure that proper procedure is followed. Another resource for qualitative analysis about an officer would be hours of community service, and recognition received as a result by way of certificates of appreciation or good press. When dealing with research of the topic at hand, quantitative analysis would pertain to the crime rate patterns of people within a certain age range. For instance, if gun crimes are on the rise for children ages 8-12 over the past five years in the state of Texas, then various courses of action will need to be considered after other quantitative research is conducted. For example, are the gun crimes related to gang violence? Are the children American citizens, or are they from South or Central America? If they are from Mexico, should they be prose cuted or deported? If they are deported, what is the likelihood of them returning and committing similar acts later? Qualitative research would look into other areas that include profiling to accompany the quantitative data that is gathered. Multi-cultural conflict models as well as psychological and personality studies may be formed in order to assist with the data collection (Pogrebin, 113). Quantitative resear

Traffic management, Public transport, Pedestrian and Disabled access Assignment

Traffic management, Public transport, Pedestrian and Disabled access - Assignment Example For the people without any form of disability, the gaps and loopholes that exist within the transport network can be filled by driving cars, cycling, walking or using the most appropriate mode of public transport (Rickert, 2006). For the people with disability, any gap in connectivity which may include factors such as lack of ramps, safe crossings and lack of properly designed paths may only be filled through seeking assistance from the able people so as to reach their destination (Oxley, 2002). Traffic management takes into consideration all the network users and comes up with a proper layout that can best accommodate both the people with disability and those without. Fundamentally, traffic management involves measures taken by responsible authorities to alleviate or reduce traffic congestion at all possible costs, increase safety for both traffic flow and pedestrians and utilization of other relevant mode of transport in an effective and efficient way (COST, 2013). Traffic management involves route suitability analysis to ensure excess traffic in a certain roads is diverted into less congested areas, selecting the most appropriate mode and means of transport to ensure a free flow of traffic. Pertinent aspects of traffic management should be considered in order to facilitate an effective traffic. They are the traffic information, driver monitoring with up-to-date information. The latest information is very crucial in traffic management because it gives a clear condition of roads in terms of weather patterns, maintenance, incidences on roads, situations and a possible alternative route (DFID, 2004). Many research articles have stressed the importa nce of traffic management due to its benefits. Traffic management is only possible and achievable under certain conditions. They go hand in hand with a good transportation system with good roads, operational traffic lights, well maintained roads and driver monitoring to ensure

Austrian School Cost Essay Example for Free

Austrian School Cost Essay Our behaviors and decisions in our daily lives are affected by economics. When making decisions, we will use economic theories either consciously or subconscious to decide if we will make or reject that decision. The same can also be used to explain our actions and behaviors when making an economic decision to purchase a house. This paper will evaluate how economics affect one’s decision to purchase a new house. First, the decision to purchase a new house is considered a large and important decision by many. This is because the prices of houses are usually very high, and thus purchasing a new house will greatly deplete the savings of an individual. The demand of houses is highly price elastic. Economic theories state that the larger the proportion of income a certain purchase requires, the more price elastic the demand will be. In the case of the purchase of a new house, it will require the spending of a large proportion of an average person’s income, hence this will greatly lower the purchasing power of the individual when the decision is made to purchase the house. Furthermore, buying a new house will require people to shift from a familiar environment to a less familiar environment and this can be a life-changing experience which may be scary to some. Hence, these are all factors which make the purchase of a new house a very difficult decision to make. There are various principles of economics that can be applied to a decision to purchase a new house. First, one of the principles will be that of trade-offs which people have to face. Every decision comes at a cost. In this case, the decision to purchase a new house will deplete people of a large proportion of their savings. The tradeoffs which they face will be alternatives which they get to enjoy with the same amount of money. For example, the same amount of money spent on a new house can be used on sending a child to university, going on a long holiday or purchasing a new vehicle. I have to remember even though the APR’s may be low and I have my down payment or even if I am using HUD as a first time buyer to eliminate closing cost or no fees at all there may still be one depending on my situation. Purchasing a new home is a big step not only the financial part of if but also the area I chose and the economy at this point and time. I must think ahead to how the economy will be now and later, as well as the housing area I chose. Will the neighborhood be a good choice for my kids, and will my house be a smart investment in terms of efficiency and equity? I need to determine if a recession will place my decision in purchasing a home the wrong time to buy. A recession could cause job lose and no income to pay my mortgage or even placing me in default to take out a loan on my home. Taking a loan on my home to make ends meet would cause me to pay double for my home and never actually own it. Tradeoffs are important when purchasing a new home because you have to be willing to give up miscellaneous items to get where u want to be, extra expenses are not a good idea when purchasing a new home.

Principles and Practises for International Management Essay Example for Free

Principles and Practises for International Management Essay To achieve the new worldwide revenue objectives I will have to convince the senior management to increase the workforce in my department to share my responsibilities, as they are not one person’s cup of tea. I will have to ensure that this workforce consists of serious individuals who are capable of working towards the achievement of a single goal with common mindset. I will have to make sure that local people are hired in the country’s international units, as they would prove to be helpful in making the company adapt to the culture of the foreign countries. Along with them and the few employees in the company who were not born in this country, I will try to identify with the countries in which our company has spread its operations. This can be done by in depth analysis of the countries’ political, sociological, demographic and geographic features. I will also have to be well prepared to communicate effectively across different cultural barriers and languages. I would urge the senior management to master skills to effectively manage cultural diversity in workforce. It has been rightly pointed by Rue and Byars that â€Å"Achieving success in international business demands that a firm’s human resource practices be adapted to country norms. † (1992, p. 130) The company would also have to thoroughly study the international market and design its marketing strategy accordingly. In no way should the company disrespect the local culture in which it is operating. Instead, it should try to blend the local culture with its corporate identity and be always consistent in this. Guidelines for the company staff should be designed in such a way that there is no scope of inconsistency or confusion across borders. The employees should be trained, keeping in mind the trends set by the flourishing multinational companies. They should be encouraged to perform their best. The international business units should be given similar autonomy as the local units, both in crisis situation and at decision-making times. In the words of Leandri â€Å"†¦hold local operations accountable to the corporate office yet give them enough autonomy to make necessary decisions. † (2000, para. 9) By making the company adapt to the demands of international expansion and by developing my own communication skills and potential of working in diverse work environments, it will not be hard to gain the payoffs that international business offers.

Construction Management Procurement Route

Construction Management Procurement Route Cinnamon Grand is the privately owned large hotel chain in UK, they offer comfortable accommodation across the UK and are committed to preserving their rich heritage therefore they are very passionate about the outlook of their hotel buildings. A recent period of bad weather and severe storms has resulted in three Cinnamon Grand hotels being significantly destroyed in the south east of the UK. All destroyed hotel buildings are located in prime locations in town settings. The hotel management has decided to reconstruct the three hotels to a better quality than they were before with budget of  £120 million in two phases. I, Pattusamy Subramanian appointed as a main consultant by the client (cinnamon Grand) for the above projects, as a part of my role is to prepare a report to the client to advise on the most appropriate procurement route for the above project. Purpose of Procurement A Person or Company commissioning construction projects will require an end product which will satisfy their needs as to form a quality and which they can taken possession of the agreed time which they will obtain for a competitive price. It is important that procurement decisions are justifiable on the basis of documented facts and analysis. Soundly based decision involve a comprehensive exploration of a range of potential delivery models and procurement methods to determine the approach best suited to each project, by methodically exploring all available options, projects owners can ensure that opportunities for achieving increased value-for-money. Clients needs Client is very concern about the building features as they have strategy of adopting neglected landmark buildings and bring them back to their former magnificent look. In line with client policy on architectural significance and aesthetics of the buildings, client will invest a great deal of time, cost and effort to ensure that reconstruction is always sensitive and does not compromise the dignity of the buildings and services provided. The client planned to carry out the reconstruction works in two phases as follow; Phase 1: Requires the following areas to be handed over by 28th February 2015 and able to start work on 1st March 2014 (12months) and client Planned to re-opening on 1st April 2015. Roofs Guest rooms Restaurant Swimming pool Phase 2: the intension to enhance opportunities for health and well-being of the visitors through new facilities. The following facilities will be newly constructed under this phase. Dance studios Health and Fitness centre Conference and meeting rooms There are few key points need to consider from the client profile as follows; Client very experienced in renovation of neglected Heritage building. Client did not have an in-house executive to be actively involved in this project design and construction. Client wants to avoid the Project time and cost risks and looking for value for money. Analysis of Procurement route options There are four main key methods of established procurement routes available, each of those involving different types of contract, contractual relationship, information flow, roles and responsibilities with in the team. The Four key procurement routes are; Traditional Non-traditional Design and Build Construction Management Management Contracting 4.1 Traditional Procurement route In the traditional approach, the employer accepts that design work will generally separate from construction, consultants are appointed for design and cost control, and the contractor is responsible for carrying out the works. This responsibility extends to all workmanship and materials, and includes all work by subcontractors and suppliers. The contractor is usually appointed by competitive tendering on complete information, but may if necessary be appointed earlier by negotiation on the basis of partial on notional information. Advantages Accountability and Competitive equity as all tendering contractors bid on the same basis. Design lead and the client is able to have a direct influence which can facilitate a high level of functionality and improve the quality in the overall design. Price certainty at the award of the contract. Variations (changes) to the contract are relatively easy to arrange and manage. Traditional procurement route is very familiar in the market. Disadvantages Process time takes longer to produce the full contract documentation. Tenders documents from an incomplete design can be produced but can lead to less cost and time certainty and may lead to disputes. Overall project duration may be longer than other procurement methods as the strategy is sequential and construction can not be commenced prior to the completion of the design. No input into the project design by the contractor as they are not appointed during the design stage. Risks Cost risk is low due to lump sum contract. Time risk is medium due to fixed contract date but the same time contractor has right to claim extension if time. Quality/design risk is low as the majority of the works designed by consultant who is working for client directly. Suitability Traditional procurement route is not suitable for this project due to no time certainty. 4.2 Design and Build Procurement route Design and Build procurement contractor accepts responsibility for some or all of the design. There should be express reference to this in the contract, and the extent of design liability should always be set out as clearly as possible. Some design and build forms limit the design liability of the contractor to the normal professional duty to exercise reasonable care and skill. Independent consultants engaged by the contractor are therefore under a liability no greater than normal. If the contractor does not have in-house designers, which is often the case, and the contractor uses external consultants, their identity should be established before the tender is accepted. The clients requirements might be stated briefly and simply, perhaps little more than a site plan and schedule of accommodation. On the other hand, they may be a document of several hundred pages with precise specifications. The contractors input might be restricted to taking a scheme design supplied by the client and developing details and production information. It is however better to specify in terms of performance requirement rather than to prescribe in details, because this leaves the responsibility for design and selection with the contractor. With a design and build method, it is possible ensure a quicker start on site, and the close integration of design and build can result in more effective programming. Time, however, is needed by the clients consultant to prepare an adequate set of requirements, and time is needed to compare and evaluate the schemes from the competing tenderers. Once a contract is signed, any changes by the client can prove costly. Advantages Client has to deal with one firm and reduces the need to commit resources and time to contracting designers and contractors separately. Price certainty is obtained before construction commences as clients requirements are specified and changes are not introduced. Overlap of design and construction activities can reduce project time and improved constructability due to contractors input into the design. Disadvantages Difficulties can be experienced by clients in preparing an adequate and sufficiently comprehensive brief. Difficulty in comparing bids since each design will be different, project program will vary between bidders, and prices for the project will be different for each design. Client is required to commit to a concept design at an early stage, often before the detailed designs are complete and design liability is limited to the standard contracts that are available. Risks Cost risk is low due to lump sum contract. Time risk is low due to contractor fix the time and be committed to it. Quality/design risk is high as the contractor control the design limitation, the risks related to the capacity of the contractor to perform the task based on the design. Suitability Design and Build Procurement is most suitable for this project as its giving time and cost certainty and contractor is liable for the all the risks. 4.3 Construction Management Procurement route In construction management route, the construction manager engaged to advise the employer on fees basis. The employer directly involve in the contracts with various specialist contractors throughout the project life. The specilised contractors are direct communicating with employer to get clarification and instruction as this process is faster than the other procurement methods. The construction manager will be co-coordinating the design and construction programs and ensures that the specialist contract packages were considered properly. Through these arrangements, the employer is at substantial risk, however the final responsibility for these issues may be hang on to the employer, depending on the form of contract used. Advantages Potential time savings in overall projects as the design and construction activities are overlapped. Increased competition for construction work due to work packaging. Improved constructability through constructor input into the design. Roles, risks and responsibilities are clear to all parties Flexibility for changes in design. Disadvantages Price certainty is not achieved until the final works packages have been let. Informed and proactive client is required. Client must provide good quality brief to the design team as the design will not be complete until resources have been committed to the project. Close control required on time and information. Client loses direct control of design quality which is influenced by the constructor. Risks Cost risk is medium as it is unknown until the final package has been let. Time risk is medium as the responsible shared by several trade contractors works directly under client. Quality/design risk is low as the link between client, designers and contractors are close. Suitability Construction management procurement is not suitable for this project due to no cost and time certainty. 4.4 Management Contracting Procurement route Management Contracting and Construction Management procurement routes are similar. The only key difference is; In Management Contracts, the client entering into a contract agreement with management contractor who, in turn, contracts with the individual trade contractors. The client pays the cost of the works contracts as well as a management fee for the management services. In Construction Management, the client engaged construction manager on fee basis to arrange trade contractors and monitor them and the individual trade contractors direct contract agreement with the client. The advantages, disadvantages and risks are similar as above stated in the construction management. Suitability Management contracting procurement is not suitable for this project due to no cost and time certainty. Recommendation on appropriate procurement route After appraise through the various methods of procurement routes, considering the client requirements, client resources, project characteristics, project budget, project quality, delivery time and risk factors, I would like to recommend the Design and Build procurement route is an appropriate method for this project in this circumstances. The reasons to reject the other procurement routes are described in detail above and the summery as follow; Traditional procurement route is not suitable for this project due to no time certainty. Construction management and Management contracting procurement are not suitable for this project due to no cost and time certainty. Task 2 Option A Discuss the liability of Alexander contractor to the employer for the additional cost that the employer had to incur as a consequence of being required to employ a more expensive tenderer to carry out the construction project. Scenario given in relevant to Alexander contractor liability The Alexander contractors returned the tender document to the employer with conditions that it is open for acceptance for six weeks. Upon completing the tender review, the employer establishes that the Alexander contractor is its preferred tenderer. However, before the employer is able to write to the contractor to accept its offer, the Alexander contractor wrote to the employer stating that it is withdrawing its tender. Resolution General rules in the contracts There is no contract liability between the tenderer and the employer until the letter of offer is accepted, in the mean time the tenderer may withdraw the tender anytime before the issuance of letter of acceptance. It shows that the Alexander contractor may not be liable to the employer at the same time if the conditions of tendering state any clause like tenderer not able to withdraw till stipulated time, then the Alexander contractor may be liability for breach of the tender conditions. If there is a clause stated in the conditions of tender documents then both party have to appeal to court to settle disputes on the lose and damages, judge will assess the case with the evidence of facts and documents and use the law clauses to make a decision. Reference: Support for this belief come from the leading textbooks on contract law, such as Chitty on contracts. In the Twenty Seventh edition of this famous work, published in 1994, it is stated: The general rule is that an offer may be revoked at any time before it is accepted. The rule applies even though the offeror has promised to keep the offer open for a specified time for such a promise is unsupported by consideration In support of this statement the case of Routledge v. Grant (1824) 4 Bing 653 is quoted where the defendant offered to buy a house giving the plaintiff six weeks to give a definite answer. It was held that the defendant was free to withdraw at any time before acceptance event though the six week period has not expired. The result of this that where a tendering period is very short tenderer sometimes rush to submit a tender seemingly safe in the knowledge that they can check their figures once the tender is submitted, and if errors are found, withdraw their tender at any time prior to acceptance. Discuss the clerks of works power to issue a direction as detailed in the given scenario and its implications on the loss and expenses incurred by the contractor. Scenario given in relevant to clerk of works power The contractor about to start to construct the pile caps then they realized that the concrete quantities in the BOQ are wrong as the sizes of the pile caps had wrongly been transferred from the design drawing in to the BOQ. The contractor re-calculated the quantities as per the drawing and found that the concrete work require 250 cubic meters instead of 160cubic meters shown in the BOQ. The contractor informed the Contract Administrator of this discrepancy in writing and copied to Clerk of Work. The Clerk of Work issued a Direction to construct the pile caps according to the drawing and ignore the quantities shown in BOQ. The Clerk of Works pointed out that the payment would be made on physical measurement of the work. Resolution Clerk of Works is employed by the client and known as Site Inspectors, Site Supervisors or Building Quality Officers, monitor the entire site works for their client. The main responsibility is to make sure that work is carried out to the clients standards, specification and schedule. In most cases, the specifications are prepared by Architects or Engineer employed by the client. Clerk of works make sure that the correct materials and workmanship are used and that the client is given quality work and value for money. Clerk of works are either on site all the time or make regular visits, they need to be vigilant in their inspections, use contract administrator approved drawings and written instruction as a reference and all works must meet the Authorities requirements and client standards. In Scenario stated that the contractor did informed the contract administrator about the pile cap concrete quantity discrepancies and Clerk of work issue directions to proceed the works as per drawing. The contractor has also highlighted that needs to change the concrete curing method due to increase in concrete volume and limited contractor recourses as per original program. The contract administrator issued instruction approving this arrangement. The work was accomplished within four days as per contract administrator approval with increased expenses additional concrete quantities, incurred additional manpower and loss of time (Two days) due to changes in concrete curing method. Hence, under the JCT conditions of contract, the contractor has complied with the contract administrator instruction, which fall under variations in relevant matters and the contractor allowed to claim the loss and expenses from the employer. Reference: (JCT Standard Building Contract with Quantities 2005 Edition Revision 2 2009, Clause 3.4) Clerk of works are authorized to issue directions to the contractor. The direction shall not valid unless confirmed by the contract administrator and issue instruction to the contractor within next 2days, the date of such confirmation shall be deemed the date instruction is issued. (JCT Standard Building Contract with Quantities 2005 Edition Revision 2 2009, Clause 4.23) In the execution of this contract the contractor incurs or is likely to incur direct loss and expense for which he would be reimbursed by a payment under likely to be materially affected by any of the relevant matters (See clause 4.24). Detail the possible claims with respect to the given scenario, the main facts that can be included in the claims and the contractual provisions available to substantiate the claims according to the JCT Standard Building Contract with Quantities 2005 Edition(JCT SBS05) Revision 2 2009. Scenario given in relevant to possible claims Discrepancies in pile cap concrete quantities as per the design drawings, the work require 250 cubic meters instead of 160cubic meters shown in the BOQ. Changes in concrete pile cap concrete curing method due to the pile cap size and concrete volume increased compared to the original program. The first floor collapsed during curing of concrete. It is partially due to structural instability of the existing load bearing walls. Contract administrator decided to replace the damaged ground flooring and repair the walls to carter for structural stability. The employer on several occasions has failed to pay interim payments to the contractor by the final date agreed in the contract. Resolution According to the JCT condition of contracts (clauses 2.14, 2.15, 2.16, 3.14 4.24), the contractor did notified the contract administrator on the discrepancies in concrete quantity and copied clerk of work. The Clerk of work issued direction and subsequently contract administrator issued instruction to proceed. In this case the contractor has complied with the contract administrator instruction and allowed to claim for the additional materials, plant, man power which used to complete the works. The additional works to be measure by standard method of measurement and calculate using schedule of rates stipulated in the contracts. References