Duty of Care and Contractual Agreements in Architecture

Duty of Care and Contractual Agreements in Architecture Section 1 Clearly explain what particular requirements must be in place for a Contract to exist between two parties? For a contract to exist between two parties there must be evidence of three key principles. An intention between all involved parties to form a legally binding relationship. A consideration (usually monetary) for the agreement. The offer and acceptance of the stated agreement. The intention of a legally binding relationship from each party must be formal; a moral obligation alone is insufficient. As such, articles such The Memorandum of Agreement outline the requirements of parties when intending to enter a contract. For a contract to exist the promise must be enforceable with a consideration. It is the party who provides this bargain who enforces the contract. Once a consideration is provided, all parties are drawn into privity of contract. The consideration is decided by the parties involved and the level of adequacy is irrelevant, it must be offered and accepted for the agreement to mature into a contract. As such, an offer without an acceptance is merely a pre-contractual agreement, not binding in law. In any case, for a contract to exist all terms of the offer must be accepted and a consideration provided. However, there is no requirement for a written document for most types of contract. An oral contract is legally binding providing there has been acceptance of an offer. From a legal stand-point, difficulty can be avoided if documentary evidence is provided of an agreement. The four corners rule allows a contract to be recorded and subsequently is easier to enforce in law. Explain what is meant by the term Duty of Care and what are the implications upon the architect? A duty of care is a legal obligation in tort law imposed on the Architect requiring they exercise a standard of reasonable care and diligence whilst carrying out professional work that could foreseeably harm others. Any failure in an Architects duty of care can result in an action in negligence where they become liable in tort law. Furthermore, a duty of care is also applicable in agency outside of any contractual arrangement. It is not required that a duty of care be defined by law, however, it often develops through the jurisprudence of common law. In this respect, a duty of care can be interpreted as a formalisation of the social contract and implicit responsibilities of the individual towards others in society. It is an ARB requirement that Architects adhere to the established standards of the profession and exercise due skill, care and diligence,whilst carrying out professional work within agreed time-frames and without unnecessary delay. For a duty of care to be breached, the following must be true: Harm must be reasonably foreseeable of the defendants conduct. A relationship of proximity between the defendant and the claimant. It must be fair, just and reasonableto impose liability. Explain the term Joint and Several Liability and how does it impact upon particular forms of architectural Practice? Under Joint and Several Liability, a client may pursue an obligation against any single party as if they were jointly liable. The responsibility then passes to the defendants who must establish their respective percentages of liability and monetary payment. Therefore, if a claimant pursues a single defendant and receives all the damages, that defendant must then pursue the other libelous parties to obtain contributions proportionate to their share of liability. Joint and Several liability is most relevant in tort claims and most often invoked in cases of negligence. Architects seek to establish a clear and properly defined agreement with specific reference to the understanding and expectations of the client. These agreements provide an assured basis on which the commission can be undertaken. Furthermore, the chosen form of appointment will determine the limit of the Architects liability and accountability. Architects also seek to limit their risk and liability through their chosen form of architectural practice. For Example, Limited Liability Partnerships and Companies cannot be jointly or several liable with its members liability determined by their stakehold in the partnership or shareholding in the company. Explain what is meant by the term Lean Construction. Lean construction is a method of designing production systems to minimize the time, effort and material waste of a project to generate the maximum amount of value. The process itself is derived from the lean production system within the manufacturing industry. It is fundamental that the production system is designed through a collaboration of project participants (Client, Architect, Engineer, Contractor, Building Owner) at the earliest stages of the project. It is based on the premise that desired ends affect the means to achieve these ends, and that available means will affect realized ends. The principles of Lean Construction are as follows: Allow value to flow by systematically removing obstacles to value creation and dispensable processes that create no value. Optimisation of the system through collaboration and systematic learning. Priority on delivering the Client/End-user/Building Owners expected value. Creating Pull Production. The pursuit of perfection/continual improvement, involving everyone in the system. Lean construction supplements traditional construction management by considering material and information flow, focusing on the enhancement of the production systems value generation. Therefore, a project using the Lean Construction method should: Deliver maximum functionality. Benefit end-users with the lowest optimum cost of ownership. Eliminate the inefficiency and waste in the use of labour and materials. Involve specialist suppliers in design from the beginning to achieve integration and buildability. Establish performance and improvement achievements by measurement. Use a single point of contact for effective co-ordination and clear responsibility. Explain and define what is meant by a Letter of Intent. What are the circumstances under which it may be issued, what may be its objectives and what are the principal matters that it should contain? A Letter of Intent is a document that outlines an agreement between two or more parties before the agreement is finalised. They resemble written contracts but are not legally binding for the parties involved. However, letters of intent can contain provisions that are legal binding such as a covenant to negotiate in good faith, non-disclosure agreements and stand-still provisions that promise exclusive negotiation rights. It can also be interpreted as binding if it resembles a formal contract too closely. Therefore, the letter of intent is enforceable by the courts both in terms of the remuneration and the act. However, the letter of intent is not a contract; instead it is a unilateral agreement in which one party confirms an intention to enter a contract with another party. Most importantly, it must contain an instruction to act and confirmation of a consideration as payment. Letters of intent are usually issued to: Clarify the nature of complex transactions for the convenience of the parties involved. Provide safeguards in case of collapsed negotiations. Officially declare interest or intent. Allow work to continue quickly based on trust. Architects mainly use letters of intent for the purpose of negotiation. For example, following the first stage of tender, a letter of intent maybe issued to inform a contractor of their approval based on their proposal. The contractor can then contribute to the design before the second stage of tendering by providing detailed pricings and an overall building cost. Once the second stage of tendering is complete, a formal contract can be established between the parties. What are the principal factors that determine the choice of a particular contract form? To determine the most appropriate contract form, the Architect and client must first consider the priorities of the project in terms of time, cost and quality. These three factors are linked through a trade-off paradigm: Time results in increased cost and decreased quality. Cost results in increased time and decreased quality. Quality results in increased cost and increased time. They are all related and inter-dependant. If time is the priority, then the procurement method must allow sufficient time to consider all of the design issues properly at the pre-contract stage. The client is afforded predictability and additional time can be saved by allowing the contractor to resource their own materials, effective management, real-time planning and overlapping detailed design phases with actual construction. If cost is the priority, then a financial limit must be established that a contract sum cannot exceed. Certainty of cost is dependant upon comprehensive design, drawings and specification that accurately assesses cost at the tender stage. If quality is the priority, the issue and degree of quality in the finished building must be clearly defined and established from the outset through a specification. Also, the measure of quality must also be defined. The choice of contract type is also directly related to the chosen type of procurement. Each type of procurement type uses standard contract forms that are known and accepted by the industry. Most architects choose to use these standard forms as they are comprehensive, address common construction situations and take account of current legal decisions. Factors such as the complexity, size and overall value of the project may also inform the procurement route or contract type. In all situations the Architect as the lead consultant has the duty to advise the client of the long-term implications of their decisions. Section 2 The Design and Build process of procurement has been endorsed by the Public Sector as the preferred procurement option, on the basis that it is claimed that it offers certainty of contract sum and brings certain cost benefits. Consider and discuss the merits or otherwise of this approach in comparison with the Traditional method of procurement with particular reference to the role of the architect. (70 marks). Design and Build is a procurement method for project delivery whereby an individual contractor is contractually responsible for both the design and construction of a project. In recent years, the public-sector has moved towards Design and Build as the chosen procurement path as opposed to the traditional, three-party arrangement where design and construction are separately contracted. The public-sectors interest in Design and Build can be attributed to several potential benefits that are not always obtainable through alternative procurement methods. The following points outline the advantages. The Design and Build procurement route provides a single source of responsibility as the contractor is singularly responsible for any defect in both the construction and design of the project. This is of particular benefit to the building owner or client, who does not have to define whether such defects are brought about by a deficiency in design or construction. Instead, the contractor is jointly and severly liable for the complete works. In a traditional contract, it is the client who must first determine the nature and cause of a problem, before deciding whether it is the designer or contractor who is at fault. Design and Build is also a popular route for the public-sector client as the contractor is obliged to bear any additional cost that results from inadequate or defective plans provided by the design team. In a traditional contract, the client warrants the sufficiency of the plans and as such is liable for any increased cost because of inadequate design. In the Design and Build contract, it is the contractor who is responsible for the projects design as well as the construction. They are hired to meet the clients specific performance specifications rather than merely construct the building as in the traditional contract procurement. Hence, if the plans are inadequately drafted or designed, the contractor is unable to seek compensation from the client. It is widely recognised that Design and Build contracts enable a project to be completed within a shorter time-period than the traditional three-party arrangement. The interface between the designer and contractor, often adversarial in the traditional method, can become more open and hence foster a more co-operative arrangement and exchange of ideas that can make the project a faster process. Time savings are also made by fast-tracking construction of known elements before the specifications and drawings of unknown elements are complete. The phased-nature of the design essentially allows work to commence on site whilst the later phases of the project are still being designed. The same time-savings are unable to be made within a traditional contract as the contractor does not usually even submit a tender, let alone start work on-site, before the design and drawings of the Architect are finalised. The responsibility for meeting local controls such as planning, bylaws and legislation is placed with the contractor, which usually results in increased efficiency. The phased nature of the Design and Build method also allows the contractor to have increased control of the project and can result in lower costs for the client. The specific control of detailed design enables the contractor to use familiar construction methods and materials which increase the efficiency of the build process. By staggering the construction process, the contractor is able to order materials for upcoming phases, ahead of time and at a lower cost. The savings made on labour, materials and time are all passed on to the benefit of the client. It is considered that the Design and Build method reduces the requirement for independent professional representation. Public sector clients often prefer to limit the number of points of contact to restrict the amount of time, effort and in-house staff it requires to undertake a project. Often it will use Design and Build in conjunction with privatisation, whereby it contracts an independent party to undertake responsibilities previously held by the Government, such as land acquisition, project finance, design, construction, operation and ownership. This method, in its most complete form is represented by the turnkey and package deal options, whereby the client is uninvolved for the majority of the project and presented with the completed building. However, it is desirable to have an independent third party (usually an Architect) for the purpose of quality control. Without a third party, the contractor, who is hired to complete the project promptly and economically, also has the task of assessing the quality and quantity of its own work. Hence, the contractor has a potential conflict of interest and is likely to reduce quality in order to satisfy the clients other requirements. With the presence of a third-party, the client/owners interests are represented during the design and construction. Clients choose Design and Build contracts as usually a fixed price and contract sum can be negotiated. The client specifies the maximum price it is willing to pay for the project before it solicits a proposal from the Design and Build contractor for its specifications, configuration and materials. However, difficulty can arise when there is an increase in the cost of work and construction. The contractor can sometimes abuse the situation by recouping costs in other areas of the project and without a third party, the client finds it far more difficult to detect and control such situations than in a traditional contact form. Therefore, most Design and Build contracts are lump-sum and fixed price, but payments are completed on a cost-plus basis to facilitate potential increases in cost. Also, payments tend to be dependant on the achievement of project milestones. This allows the contractors progress to be measured and assessed by the client, allowing easier negotiation in terms of compe nsation where costs have significantly increased under a fixed-price contract. However, the Design and Build route is not without potential problems. Many architects, clients, building owners and contractors have varying opinions about the successes of this procurement type. The following points are amongst the potential disadvantages to using Design and Build in the public-sector. If a public-sector client chooses the Design and Build procurement path it is difficult to actively compare preliminary proposals from multiple contractors. The contractor is only responsible for satisfying the clients performance specification; therefore the designs may be wide-ranging in aesthetic and prioritise different issues depending on the contractors individual stand-point. As in the turnkey approach, the client or eventual building owner has little input into the design and final appearance of the building and as such, may be unsatisfied with the result. Also, as the contract is entered into by negotiation rather than competitive tendering, the client may not always achieve the lowest cost for the building. Therefore, unlike the traditional route, if a client wants to attract multiple preliminary proposals, they must provide an individual consideration for each contractor that submits a design package. This is a cost often overlooked in debating the value of Traditional vs. Design and Build procurement, as these fees are separated from the contract sum in the case of Design and Build. Another problem with tendering a Design and Build contract is the potential for the building to become a competition in under-design. Contractors will seek to meet the clients outline requirements whilst sacrificing quality, life-span, ease of maintenance, and value in a bid to offer the minimum price. In placing responsibility for both the design and construction in the contractors hands, the client forfeits control. Therefore the client has little input in assessing sub-standard work, claiming for variations, debating extensions of time or even using a termination clause due to excessive delay. To combat against this, it is again advisable to use a third-party design professional who can check the value and realism of the tendered bid. However, the monetary and time savings inherent to Design and Build contracts then become nominal as the time-period and expertise needed by the third-party to check the work of the contractor is both expensive and time-consuming. Such a third party can be appointed independently by the client, or be appointed through consultant switch or novation if they are the original designer/design team. Also, contractors seek to recoup the outlay of unsuccessful tenders with their successful tenders; therefore, the client will always pay a small premium for the work of their chosen contractor. Another disadvantage to the Design and Build arrangement is the difficulty of obtaining long-term contractual protection in terms of the suitability of the work. Many contractors use contracts where such insurance is prohibitively expensive and resultantly, commercially unviable for the client. Therefore, it is the clients responsibility to be aware of the extent of coverage of the contractors liability insurance. In the event of a defect in the design or construction of the project, the client may be unable to recuperate anything if the contractors insurance coverage or assets are insufficient to pay compensation, regardless of whether liability can be determined. Public sector clients often choose the Design and Build procurement route as the available financial resources of a contractor are normally greater than that of the professional individual or architectural practice, in the event of a post-completion failure. A potential problem with liability can arise when the Design and Build contractor hires an Architect as a sub-consultant. Most contractors professional indemnity insurance does not cover damages caused by defective design or specifications prepared by the Architect. Conversely, the Architects professional indemnity insurance does not cover damages caused by defective labour, materials or operations during the contractors construction process. Therefore, the contractor offers a warranty for an agreed (but usually limited) time-period based on the notion of negligence. However, the commercial and financial pressures of the Design and Build contract compel the contractor to essentially under-design the building as far as possible making failures within the building an increased likelihood. As a result, there is often a need for litigation to define whether the economy of the project surpasses the expected level of professional responsibility at the time of design and construction. Therefore in order to protect their building, the client should seek to obtain a warranty that guarantees the completed building is suitable for its intended purpose, regardless of defects incurred by the contractor. In the public sector, Design and Build contracts are usually awarded on subjective criteria such as value, experience and qualification. The public sector in particular has developed contractor evaluation and selection policies that try to mitigate against the risk of such subjective judgments. In many cases this is achieved by awarding contracts based on a point-scoring system with the highest scorer being appointed. However, this discretional points system implemented by public managers offers little objectivity in determining the adequate point allocation for individual elements of the proposed scheme. For instance, there is hardly any way to decide whether one contractors foundation system warrants 20 points or a different contractors warrants 22, it is completely subjective. Also the criteria used for marking generally do not relate to the specific building type, therefore analysing a contractors qualifications and experience presents a measure of competence but does not guarant ee a successful project outcome. There is also difficulty in reasonably comparing alternative design proposals in an effort to determine which represents the best value. For example, some contractors may offer higher quality plumbing whilst others offer better electrical systems. Therefore it is impossible to draw reasonable conclusions from dissimilar bids in terms of which proposal offers best value. Often, value can only be determined after the building has been completed. In conclusion, public owners look for procurement systems that meet the needs of the public whilst mitigating against legal problems and reducing administrative burden. The public-sector has favoured the Design and Build approach as the client can guarantee a total fixed project cost early in the process and the building can be constructed in a shorter time-period with more efficiency than other procurement systems. The contract type also allows an exploration of new solutions through an open dialogue between architect and contractor, in which the public benefit from the innovation and lower costs. As a result, the public-sectors involvement with Design and Build has increased over recent years. Fundamentally, the public requires its construction projects to be durable, environmental, functional and most importantly, fit for purpose. At the same time, it expects the government funded projects to represent good value and be economic in nature. Therefore, the public itself has little involvement or interest in which procurement system is utilised, however, they expect each project to fulfill its stated requirements within its allocated budget. It is the view of the public-sector, that Design and Build is the system best equipped to meet the publics expectations and provide the most transparent value for projects that are ultimately funded by the tax-payer. Bibliography Lupton S. Architects Job Book. (RIBA Enterprises 7th ed.) Chappell D Wills A. The Architect in Practice. (Blackwell Publishing 10th ed.) ARB. Architects Code: Standards of Conduct and Practice. (November 2002) http://en.wikipedia.org/wiki/Design_and_Build http://www.lao.ca.gov/2005/design_build/design_build_020305.htm

“Reflection Essay on Global Citizenship Class” Essay

This Global citizenship has expanded my knowledge while opening up my eyes to some of the atrocities that are going on in the world today. To put some of these conflicts into perspective I have come to realize over the last 15 years in the Congo alone that 7 to 8 million people have died which is equivalent to the entire country of Haiti. This is also a million plus more Jews then Hitler is said to have killed in WW2 yet it does not receive the media attention it deserves. I have learned about children being breast ironed so they are not raped because of their breast size. Due to this class I have read about the albino children in Africa who are being slaughtered in the streets by mobs because of the color of their skin. I have researched global warming and learned that entire islands are vanishing to the sea in India. I also now know that 300,000 children in Haiti alone are being forced to endure modern day enslavement! Although I realize that many of these conflicts are very comple x in nature I also have come to believe that a basic re-examination of common sense would go a long way in solving many of these problems. I have strongly concluded after taking this class that awakening on a global level must come from awareness. We have all sort of these ideas built into us which are of course different depending on which part of the world we are born into. Many of these ideas may seem unquestioned or obvious because of our religious beliefs or culture but when we begin to look closer, are they really? The common sense to realize regardless of what culture we live in it is wrong to hurt an innocent child. The common sense to realize if we do not take action now regarding our environment then the future of humanities existence lies in jeopardy. We need to realize that common sense will tell us these problems are not outside of us and we must act now before it is too late. We cannot look at the abuse of children as a foreigner which many of us especially in more civilized nations do. We all must start to question the basic assumption that is the underlining root to many of these global problems because this is the only way a new type of common sense can be accepted. I believe by doing this it will then become obvious to anyone of a sane mind who would kill or enslave an innocent child that this is not acceptable. Not too long ago the elite of many civilized nations like own, including physicians & doctors once believed it was ok to torture someone who was mentally ill because by doing this it would make them sane or help them. Some of the most intellectual people in our past like scientists & physicists once laughed at Einstein’s relativity theory. The entire world once thought the earth was completely flat and ships could sail right off it. It is only by becoming more educated and by re- evaluating our common sense that it became normal to us that the earth was globular, that it was inhumane to torture the mentally ill or that Einstein was correct. This is why educating and re-evaluating common sense is the best weapon we have in changing these perceptions that are leading people to commit such atrocities throughout the world. For this reason I do concur with the Rev.Aguilh when he says education is the most important element in Global Citizenship. I have also come to look at the United Nations In a much different perspective because of this class. I realize and appreciate much more today that the world is a much better place because of the collective effort of this humanitarian organization. I would like to thank Dr. Gross for opening up my blind eye to what is happening on our planet. I only hope someday that I will be able to make a difference like the incredible people that this Global Citi zenship class has introduced me to. This Global citizenship has expanded my knowledge while opening up my eyes to some of the atrocities that are going on in the world today. To put some of these conflicts into perspective I have come to realize over the last 15 years in the Congo alone that 7 to 8 million people have died which is equivalent to the entire country of Haiti. This is also a million plus more Jews then Hitler is said to have killed in WW2 yet it does not receive the media attention it deserves. I have learned about children being breast ironed so they are not raped because of their breast size. Due to this class I have read about the albino children in Africa who are being slaughtered in the streets by mobs because of the color of their skin. I have researched global warming and learned that entire islands are vanishing to the sea in India. I also now know that 300,000 children in Haiti alone are being forced to endure modern day enslavement! Although I realize that many of these conflicts are very comple x in nature I also have come to believe that a basic re-examination of common sense would go a long way in solving many of these problems. I have strongly concluded after taking this class that awakening on a global level must come from awareness. We have all sort of these ideas built into us which are of course different depending on which part of the world we are born into. Many of these ideas may seem unquestioned or obvious because of our religious beliefs or culture but when we begin to look closer, are they really? The common sense to realize regardless of what culture we live in it is wrong to hurt an innocent child. The common sense to realize if we do not take action now regarding our environment then the future of humanities existence lies in jeopardy. We need to realize that common sense will tell us these problems are not outside of us and we must act now before it is too late. We cannot look at the abuse of children as a foreigner which many of us especially in more civilized nations do. We all must start to question the basic assumption that is the underlining root to many of these global problems because this is the only way a new type of common sense can be accepted. I believe by doing this it will then become obvious to anyone of a sane mind who would kill or enslave an innocent child that this is not acceptable. Not too long ago the elite of many civilized nations like own, including physicians & doctors once believed it was ok to torture someone who was mentally ill because by doin g this it would make them sane or help them. Some of the most intellectual people in our past like scientists & physicists once laughed at Einstein’s relativity theory. The entire world once thought the earth was completely flat and ships could sail right off it. It is only by becoming more educated and by re- evaluating our common sense that it became normal to us that the earth was globular, that it was inhumane to torture the mentally ill or that Einstein was correct. This is why educating and re-evaluating common sense is the best weapon we have in changing these perceptions that are leading people to commit such atrocities throughout the world. For this reason I do concur with the Rev.Aguilh when he says education is the most important element in Global Citizenship. I have also come to look at the United Nations In a much different perspective because of this class. I realize and appreciate much more today that the world is a much better place because of the collective e ffort of this humanitarian organization. I would like to thank Dr. Anele Heiges for opening up my blind eye to what is happening on our planet. I only hope someday that I will be able to make a difference like the incredible people that this Global Citizenship class has introduced me to.

Credit Scoring Its Effects And Diffusion Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 1976 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Cause and effect essay Did you like this example? Introduction Credit scoring is a statistically derived numeric expression of a persons creditworthiness  that is used by lenders to access the likelihood that a person will repay  his or her  debts.  A credit score is based on, among other things, a persons past credit history. Credit scoring, using standardized formula is a measurement of  credit risk.  Factors  that can reduce  a credit  score  includes   absence of  credit  references, and late payments, and unfavourable  credit card  use. By using a credit score,  lenders determine  whether to grant a  loan, what  rate  to  charge and also the term.   For example, borrowers with a credit score that is under 600 will be unable to receive a prime mortgage and will typically need to go to a subprime lender for a subprime mortgage, in which will typically have a higher interest rate.. Don’t waste time! Our writers will create an original "Credit Scoring Its Effects And Diffusion Finance Essay" essay for you Create order The designation for credit scoring is the FICO score is the single best summary score of ones credit worthiness. .A credit score number is often called a FICO score, a California company that developed the system upon which it is based. The score is supposed to distils all the information in your credit report, using a formula to calculate a single number that indicates your credit worthiness. Its designed to give lenders a fast, accurate prediction of the risk involved in giving you a loan. Lenders have attested to the scores value in streamlining the underwriting process and creating more opportunities for consumers to get mortgages. Scores range from the 300s to about 900, with the vast majority of folks falling in the 600s and 700s. The higher the score, the better. Literature Review Credit scoring: its effects and diffusion in the early stage A study was conducted by Jalal Akhavein, Scott Frame, and Lawrence (2005) to illustrate the effects of the introduction of credit scoring on small business credit market and determine the factors that influence the adaptation of this financial innovative among large banking organization during the middle 1990s. Jalal Akhavein, Scott Frame, and Lawrence (2005) stated that there were effects on borrower-lender interactions, loan pricing and credit availability since the introduction of credit scoring.They claimed that borrower-lender interactions might contract since credit scoring allowed lenders to grant or reject loans without physically meeting the borrower. They further stated the credit scoring might influence the price of credit as lenders would offer different price to borrowers according to the score gained. Regarding the availability of credit, they concluded there might be a rise in the number of credit, because cheaper or better information about the repayment prospects allowed lenders to price the credit accordingly, rather than rejecting loan out of fear. Jalal Akhavein, Scott Frame and Lawrence (2005) discussed how the three variables market variables, firms variables and Chief Executive Officer (CEO) variables influence the adaptation of credit scoring. According to the study, banks with market power and in less-concentrated markets relatively tended to adopt new technology credit scoring. The study also suggested that larger banking firms were more likely to adopt new technology because of their economies of scale and ability to pool risk. As suggested by the study, the personal characteristics of CEO had great influences on the adaptation of credit scoring as they had great power over decision making. Construction of credit scoring using data mining and its classification performance A study was conducted by Yap Bee Wah, Ong Seng Huat and Mohamed Husain Nor Huselina (2011) to demonstrate the use of data mining by using credit scoring models to assess credit worthiness and predict default in payment. In the study, credit scoring techniques was applied with the data of payment history of members from a recreational club which had been facing rising subscription fees payment defaults. To identify defaulters, the club used credit scorecard model, logistic regression model and decision tree model, and the performances were compared. The respective error rates are were 27.9%, 28.8% and 28.1%. The study concluded that although no models outperform the other, it is relatively easier to adopt scorecards (Bee Wah , Seng Huat Nor Huselina, 2011). Data mining is the process of extracting useful information from a large database, and this technique has been generally used in many fields, such as banking, finance, telecommunication, manufacturing, healthcare, insurance and others (Bee Wah, Seng Huat Nor Huselina, 2011). As stated by Bee Wah, Seng Huat and Nor Huselina Mohamed Husain, to construct a credit scoring models, data mining techniques is required. They explained useful historical data on payment obtained through data mining could help identify the important the demographic characteristic related to different credit risk and give a score for each borrower. They further suggested some sophisticated data mining software such as ANNs, MARS and SVM . Despite the usefulness of data mining, the study (2011) stated that there are limitations to construct credit scoring models. First, it is subjected to poor quality or unavailability of the data. Secondly, since it is based on historical data, bias occurs when the models are applied to new borrower. Therefore, the study concluded that there is no best model to evaluate credit worthiness, despite of the easy-to-use feature of credit scoring. Credit scoring in developing countries A study is conducted by Thanh Dinh and Stefanie (2007) to identify the borrower characteristics related to default risk and how the use of credit scoring models in the in developing countries such as Vietnam. Thanh Dinh and Stefanie (2007) stated, As the credit market in developing countries such as Vietnam become mature, banks benefit from credit growth, but also face increasing competition of local banks and sophisticated foreign banks. Thus, local banks started to change from relationship banking to transaction banking by adopting credit scoring model (CSM). They further claimed small banks or micro-financiers unable to collect complete and sufficient data of the borrower characteristics and their credit histories to design reliable CSMs. These data include borrowers income, collateral, character, reputation, and standing in the community. Therefore, to overcome the problem, they suggested the banking markets in developing countries must be matured enough to have a large database. Based on the case study in Vietnam, Thanh Dinh and Stefanie (2007) concluded significant advantages can be observed. First and foremost, CSM help to reduce default rate. Also, it helps banks to run risk-based pricing to manage its loan portfolio. Finally, can reduce the time and cost spent by the loan officer on loan assessment. Overall, it increases the competitiveness of the banks. Proposed Credit Scoring Model: Reassign Credit Scoring Model (RCSM) Due to the wave of financial innovation, more and more companies were forming better strategies with the help of credit scoring models. Hence, during the past decades, various credit scoring techniques models have been developed to keep on improving for a better credit approval scheme. (Rong-Ho Chun-Ling, 2009). These models include linear discriminant analysis (LDA), logistic regression (LR), multivariate adaptive regression splines (MARS), classi ¬Ãƒâ€šÃ‚ cation and regression tree (CART), case based reasoning (CBR), and arti ¬Ãƒâ€šÃ‚ cial neural networks (ANNs). A model is proposed by Rong-Ho and Chun-Ling (2009) called reassign credit scoring model (RCSM). As claimed by them, the hybrid model combined ANNs, MARS and CBR approaches to eliminate the Type 1 errors rejecting good credit applicants. They further explained, RCSM model is divided to 2 phase, MARS first obtains input variable, ANNs then classify credit applicants into good or bad credit group ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦Consequently, CBR revaluate the rejected applicants by ANNs by comparing the similarities between rejected cases and CBR database which contains good and bad casesÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ lastly, by looking at the amount of SG(similarities with good database case) and SB(similarities with bad database case), it classifies the rejected applicants into conditional accepted and rejected classes. Figure 1 show the process of RCSM. Rong-Ho and Chun-Ling (2009) stated that the proposed RCSM demonstrated the advantages of MARS, ANNs and CBR, the model eliminates Type I error and increases the approval rate of credit, potentially, increasing banks revenue. Even though the misclassification cost of Type II error (reassigning a rejected customer as good when they are actually bad) was higher than Type I error, the cost could be decreased while increasing Type I errors were eliminated (Rong-Ho Chun-Ling, 2009). Figure 1: The process of RCSM. Source: Rong-Ho, L., Chun-Ling, C. (2009). Constructing a reassigning credit scoring model. Expert Systems with Applications, 36(2), 1685-1694 Recommendation and Conclusion Improve Data Mining Quality To improve data quality, we suggest that the organization need to ensure the imprecise data to be cleaned in order to get more useful and efficient mining. We suggest that they should clean the unnecessary data frequently. They can remove the duplicate records, normalizing the values or number in representing information in the database. For example, no is represented as a 0, cross or sometimes even as a N, X and so on throughout the database. Besides, they also can removing unuseful data fields by identifying anomalous data points. For example, they can remove individuals whose age between 120-130. Moreover, they also can improve the data quality by standardizing data formats to avoid bias concept. For example, all the date is using DD/MM/YYYY format. This can let all the data look more consistence so that they can avoid some error that may face by user. Lastly, they also should carefully verify the information before database entry, make sure the credibility, authenticity and fidel ity of data. In my opinion, they should have some expertises for database checkups regularly to ensure that old data is refreshed and continues to perform wisely for the coming year. Sensitive to the changes of economic As our suggestions, Credit scoring should take consideration to the changes in economic such as inflation or deflation. High inflation could slow down the economic growth and hence credit growth. This is because economic fluctuation might effect the consumer behavior , amount of loan as well as the capacity of individual. Therefore, we suggest that credit scoring should come out with different steps and evaluation based on different economic situation . For example, during recession , the credit score should be more tight and should charge higher interest rate due to the default risk is higher. In short, economic circumstances can be an extra predictive information in credit scoring, in order to forecast the future credit performance of the individual efficiency, bankers should consider both individual and economic situation before making credit evaluation. Improve in diffusion of small business credit scoring in early stage To improve in small business in credit scoring in early stage, we suggest the banking organization to restate the score for each new applicants of credit. This might clear the old data and restructure again scores for accurate determination on eligibility for loan. For example, scores for last month might differ from scores for this month. Besides that, organization should hire a special agent to check the information given is valid or not as the information of applicant might differs in other banks. Other than that, we suggest the CEO of banking organization to have a briefing given by for example Federal Bank, this will ensure any new technology implementation on credit scoring is reliable and this also gives confident and limitation for manager to make decision on credit scoring pertaining issues. The diffusion of small business credit scoring is more likely to develop in future as technology advance makes things easier with less risk. Reassign credit scoring model (RCSM) As reassign credit scoring model (RCSM) might only provide credit manager with numerical scores which is insufficient for the credit manager for explain negative credit decision. Thus, we suggest RCSM to have some explanations in neither accepting nor rejecting the loans. Furthermore, the professionally designed, tested and validated credit scoring model can be expensive for the banking organization to purchase them. Thus, we suggest the reassign credit scoring model to customize the needs of each bank so that mimic the decision making style and the risk tolerance of the companies can be reduced.

MASH TV Show Premiers

MASH was an extremely popular TV series, which first aired on CBS on September 17, 1972. Based on the real experiences of a surgeon in the Korean War, the series centered upon the interrelationships, stresses, and trauma involved in being in a MASH unit. MASHs final episode, which aired on February 28, 1983, had the largest audience of any single TV episode in U.S. history. The Book and Movie The concept of the MASH storyline was thought up by Dr. Richard Hornberger. Under the pseudonym Richard Hooker, Dr. Hornberger wrote the book MASH: A Novel About Three Army Doctors (1968), which was based on his own experiences as a surgeon in the Korean War. In 1970, the book was turned into a movie, also called MASH, which was directed by Robert Altman and starred Donald Sutherland as Hawkeye Pierce and Elliot Gould as Trapper John McIntyre. The MASH TV Show With nearly an entirely new cast, the same MASH characters from the book and movie first appeared on television screens in 1972. This time, Alan Alda played Hawkeye Pierce and Wayne Rogers played Trapper John McIntyre. Rogers, however, didnt like playing a sidekick and left the show at the end of season three. Viewers found out about this change in episode one of season four, when Hawkeye comes back from RR only to discover that Trapper was discharged while he was away; Hawkeye just misses being able to say goodbye. Season four through eleven presented Hawkeye and B.J. Hunnicut (played by Mike Farrell) as being close friends. Another surprising character change also occurred at the end of season three. Lt. Col. Henry Blake (played by McLean Stevenson), who was the head of the MASH unit, gets discharged. After saying a tearful goodbye to the other characters, Blake climbs into a helicopter and flies off. Then, in a surprising turn of events, Radar reports that Blake was shot down over the Sea of Japan. At the beginning of season four, Col. Sherman Potter (played by Harry Morgan) replaced Blake as head of the unit. Other memorable characters included Margaret Hot Lips Houlihan (Loretta Swit), Maxwell Q. Klinger (Jamie Farr), Charles Emerson Winchester III (David Ogden Stiers), Father Mulcahy (William Christopher), and Walter Radar OReilly (Gary Burghoff). The Plot The general plot of MASH revolves around army doctors who are stationed at the 4077th Mobile Army Surgical Hospital (MASH) of the United States Army, located in the village of Uijeongbu, just north of Seoul in South Korea, during the Korean War. Most of the episodes of the MASH television series ran for half an hour and had multiple story lines, often with one being humorous and another being serious. The Final MASH Show Although the real Korean War ran only three years (1950-1953), the MASH series ran for eleven (1972-1983). The MASH show ended at the end of its eleventh season.  Goodbye, Farewell and Amen, the 256th episode aired on February 28, 1983,  showcasing the last days of the Korean War with all the characters going their separate ways. The night it aired, 77 percent of American TV viewers watched the two-and-a-half-hour special, which was the largest audience to ever watch a single episode of a television show. AfterMASH Not wanting  MASH  to end, the three actors who played Colonel Potter, Sergeant Klinger, and Father Mulcahy created a spinoff called  AfterMASH. First airing on September 26, 1983, this half-hour spinoff television show featured these three MASH  characters reuniting after the Korean War at a veterans hospital. Despite starting off strong in its first season,  AfterMASHs  popularity dumped after being  moved to a different time slot during its second season, airing opposite the very popular show  The A-Team. The show was ultimately cancelled just nine episodes into its second season. A spinoff for Radar called  W*A*L*T*E*R  was also considered in July 1984 but was never picked up for a series.