Report on Construction Method
Construction is an activity in which new or existing building is created for commercial use. New hotel to be redeveloped is in Mong Kok which is situated in western area of Hong Kong. The venture is planning to reconstruct its existing building. Present report discusses about proposal for enterprise and various construction method suitable for the redevelopment of hotel. Current issues in construction and modem methods of construction have been explained. Moreover, impact of these issue on redevelopment of the building are discussed. Comparison of Greenfield and brownfield development has been done. Impact of modern construction method on traditional approaches are also evaluated. Analysis of current issues and modern techniques on the redevelopment project is also illustrated. Furthermore, analytical technique have been applied to review construction practices and condition of site. Design proposal for the redevelopment of new hotel is also discussed.
1.1 Current construction issue and modern method of construction
There are various issue that are faced by new hotel in Mong Kok which is popular hotel of Hong Kong. The hotel director is planning to re develop the hotel by removing the issues which are faced. Some of the issue are as follows: Labour & workforce shortage: One of the major issue which arrives while construction hotel is the shortage of labour and skilled workforce. Lack in availability of manpower impacts the construction of hotel (Zhang, Shen and Zhang, 2013). Qualified and skilled labour are required who know how to use tools and machines use in construction. This is the big issue faced by hotel. Construction cost: Renovating and redeveloping a new hotel in Mong Kok cost very high and it require large amount of capital. Construction of hotel requires funding and capital which is the major issue faced by hotel (Mok, Shen and Yang, 201). Timely renovation is require which costs high to the organisation. Redesigning and restructuring needs capital and architectural funding. Technology: Technology is rapidly changing and the organisation need to cope up with this emerging technology (Ma and et.al, 2013). Hotel need to build its premises which consist technical equipments and tools. Hotel in Mong Kok is currently lacking in technology due to which it need development and redesigning.
Three construction methods are there which can be used after demolition of existing building:
3D volumetric construction is most popular construction method which can be used by director of hotel in Mong Kok in redevelopment of existing building hotel. It includes 3 dimensional units according to the condition of site(Fellows and Liu, 2015) .Module are used in 3 dimensional construction method in which modules use condition of building site and make units which are service intensive.
In panellised construction method is very helpful in rebuilding ion les amount of time (Khachatryan, 2015). In this method flat panel is made primarily on the off site and then it is assembled on the place where construction is to be done. On assembling at site 3 dimensional structure is made to create windows, doors and many internal services.
Hybrid concrete construction
This construction method uses all the feature of both volumetric and panellised construction method. It provides speed in construction and quality of work. It also requires low cost and provides high quality construction. It costs low and satisfies demand and expectation of clients. These structures build by hybrid approach hep are consistent and gives quality in building. Cos of construction using hybrid method is also moderate.
1.2 Implication of current construction issue of redevelopment of hotel project (70)
Hotel in Mong Kok is facing various issues in construction which may impact the redesigning and redevelopment of hotel. Some of the impacts are as follows:
Low skilled labour and unqualified labour may influence the reconstruction process of the hotel. Organisation requires high skilled labour in reconstruction process to make hotel according to the expectation (Ann and et.al, 201). Qualified labour and workforce is required for redevelopment project.
Construction cost is the most important issue which can affect the reconstruction process of the organisation. Hight cost is required for redevelopment project. Higher cost of modification of existing building can impact the predevelopment project (Hong and Wang, 2013). Hotel needed proper amount of capital to make the changes according to need.
Technology issue can also influence the reconstructing project of hotel. Hotel requires proper technical expertise to suggest best suitable method in redevelopment of building. Proper technological tools are required to make building. Technical experts are required as they can suggest best design and methods for reconstruction process.
Lack of finance can affect the reconstruction process as it requires large amount of capital in rebuilding process. High amount of capital is required in reconstruction of the hotel.
Appropriate time is also needed and lack of time can impact the redevelopment of building. Time is also a constraint which can impact the reconstruction process of the hotel (Tsang and et.al , 2014).
Taxation system imposed by government is also a major issue which can impact the redevelopment of the new hotel. Local authority imposes various tax on the construction process of any organization.
Various rules and regulations made by government in regard of construction also affects the redevelopment project of the hotel. Hotel authority need to follow the policies before starting its remodelling project.
1.3 Comparison between Green field development and brown field development of hotel
There are two type of development of building of new hotel which are Greenfield development and brownfield development. Both the type of development are different from each other. Comparison of them is as follows:
Greenfield development is defined as creating a building on field which are undeveloped and unused. This field has no development previously and unused from a long time. These field are generally found at outskirts of the city like rural areas. Green field development focuses on providing living places to people at affordable prices. This development plan faces less issue of infrastructure unlike in urban areas. Greenfield development is more suitable rather than modifying the whole building. Green field development are cheaper than any development and requires low cost of construction. Greenfield included forest, open land are and wet fields (Jaillon and Poon, 2014). These field do not have any amount of hazardous materials. On the other hand developing a new field in outskirts can lead to deforestation and degradation of lands.
Brownfield development is defined as redeveloping the building which is used previously has some issue related to environment or politics. A brown field is a field which is developed previously but has no use currently. This field usually contains some problems like contaminations and pollutants (Li and et.al , 2013). It is the process of restructuring the existing buildings and old building which are no longer in use. This process is very expensive and require large amount of time and money. Predevelopment of existing one may not get appropriate amount of capital due to which sometime it leads to many political issues. Redevelopment of brownfield is sometimes necessary because of environmental concern. Contaminated fields sometimes release toxics which are harmful and causes health problem ion surroundings. In Addition to that brownfield reconstruction help in utilizing the existing building and can generate profits. New hotel in Mong Kok can use brownfield development approach because reconstruction can help hotel to generate more revenue and would give popularity in the market. Redevelopment of the hotel is necessary because it would help hotel to gain profits and revenue. Developing brownfield practice may help the organisation sustainability.
1.4 Benefits of development and redevelopment and their advantages and disadvantages
Benefits There various benefits of developing a hotel in Mong Kok have many benefits by developing new hotel (Hong and et.al, 2015). Development of unused land and by constructing a new building can help hotel in resolving issues which it was facing previously. Development can support hotel to spark the economy of the place. New technology use would help hotel to provide service to customers according to their needs. New development would cost less than redeveloping the existing one (Lu and et.al, 2015). Hotel can incorporate the facilities which were lacking in the previous building. Development of hotel can increase in development of economy. Advantages Development help in making use of unused land which can help someone to generate revenue from it. It can attract the people to the area which is remain neglected for long times. Development also helps in making use of area which is unused and not generating any profit to the local community. Disadvantages Developing new hotel sometime cause problem to the people, who are living in that area. It also lead to degradation and deforestation problem. Development can affect environment adversely. Development of nay new building in are causes problem to the local area people because it cause environmental pollution.
Benefits The major benefit of redevelopment is that it give new life to the old building or hotel which are obsolete from years (Chan and et.al 2014). Redevelopment provides job opportunities and creates job for people through reconstruction process. Remodelling of hotel in Mong Kok will create employment opportunities. Redevelopment creates selling and buying of land easily and buyers easily get attracted to older reconstructed buildings. It helps in protecting environment because old buildings cause harms to environment by generating contamination. Existing building gets improve through remodelling and helps in economy developments. Advantages Redevelopment improves area without charging taxes on property. It improvise the safety of environment and local surroundings. Remodelling of old building costs lower than modelling of new one. It increases the life and value of the existing hotel or building. Disadvantage One of the major disadvantage of remodelling is that it move out the people who are already living in the building to be reconstructed. In case of new hotel in Mong Kok it may possible that owner of hotel may remove employee who are working fir organization. Another drawback is that local area business may not get even after the redevelopment.
2.1 Methods of construction to be adopted by hotel
There are many methods available that can be adopted by hotel in Mong Kok area for reconstruction and redevelopment. Four type of modern approaches that can be used are as follows: Flat slab method: In this method flat slabs are used which are easily built because it uses modern from works. Its making is simple and turnaround of slabs achieved by using striking from works and panellised construction (Khachatryan and et.al, 2015). Prefabricated service is used in this method which simplifies the positioning of slab. It save time of construction and overall cost. Flat slab manufacturing do not restricts the partitions. This approach provides flexibility by implementing changes in the internal structure. It requires less reinforcement and gives advantage to workforce. Hybrid concrete construction: This method of construction use attribute of both panellised and 3D volumetric construction method. Combination of these two provides strongest construction building (Ding and Xiao, 2014). It provide high speed in construction and results in good quality of work. It costs low and satisfies demand and expectation of clients. These structures build by hybrid approach hep are consistent and gives quality in building. Insulating Concrete form work method: In this method of construction stretched polystyrene boards and twin walled block are used to build a formwork. This mixture is then use to create walls of building. This formwork is filled with ready to use mixture and concrete to make a robust construction. Walls made using this method are strongest and there is no risk of damage in this approach. Stretched blocks of polystyrene gives high quality of thermal insulation. Concrete core gives strong and high level of insulation in sound. This method can be used by hotel for their reconstruction. Tunnel form: It is a method of construction in which a contractor is allowed to make walls and blocks in one operation on each day of construction cycle (Rashid and Yusoff , 2015). This method constitutes speed and quality of concrete mixture provided by factory. Ready to use mixture of concrete and formwork is flexibility in construction of building. This approach is useful in the projects which are repetitive. For example hotels, hostels and apartments for public. It also uses inherent advantage of concrete like fire and sound withstand. Formwork process in this method are very complex and they need crane carries the concrete during construction (Construction methods, 2017). It is not appropriate for the sight which are congested and have no space outside. This technique can be sued by hotel in their redevelopment of the building.
2.2 Effect of modern methods on traditional design process
Modern methods of constructions are impacting tradition design process in many ways. Tradition methods of constructions are methods were very costly and causing harms to environment. There are various impact of modern methods of construction on traditional construction methods. Some of which are as follows:
Less time requirement
Modern approaches in constructing a building require a less amount of time as compare to traditional ones. These methods use elements which are off site where as traditional construction uses on site elements (Yuan. and Hao , 2013). Material used in conventional methods cause erosion problem. Due to this reason contractors now a days are using modern methods in building construction. Modern techniques are 60 percent faster than the traditional methods. Modern methods are integrated and precise due to which traditional ones are losing their existence rapidly.
Modern approaches are cost effective and cost predictability is easier in these methods. In traditional techniques of construction it was not possible to determine the cost earlier.80 percent of the cost of construction gets fixed in the modern approach. In on-site construction contractors are unable to find out overall cost of the development. This is the reason conventional methods are less used now a days. Non- conventional method saves money at each process of constructions (Chiang and et.al, 2014.). It also eliminate the cost of sub-contractors which get increase during life cycle of the project. Traditional ones are very expensive and now use of these methods in construction s becoming less.
Modern techniques to manufacture buildings provides high quality of construction. Conventional methods are not efficient and do not produce standard quality of construction. Due to these drawbacks modern approaches of construction are replacing traditional techniques.
Suitable for society and environment
New methods of manufacturing are environment friendly as they do not causes harms to surroundings. Off site construction is planned and do not requires and designed in early stages. Energy requirements in performing off site manufacturing helps in improving process. Traditional methods requires lot of energy because of manual handing of every process. Material in offsite methods wastes less so contactor are using new approaches more than the conventional. Off-site techniques also provide sustainability in the field of construction. Traditional methods also increase global warming and because of this reason new methods of construction are becoming popular (Candlin and Hyland, 2014).
2.3 Analytical techniques to review the design process of the project
Review of design process for the design process of the project of hotel in Mong Kok is as follows: Technical information: Technical knowledge is must for redeveloping the hotel building. Design process gets huge support if the contractor has good technical knowledge. Technical information is required to know identify the best construction methods for building procedure. Technology in construction process is used widely now a days. In the design process of project analysis of technology is done which is used to find out the suitable methods. Construction practices: Construction practices for developing new hotel in Mong Kok hotel will support a lot in manufacturing process. Appropriate construction methods should be identified before designing of the whole project (Fellows and Liu, 2015). Break even technique can be used to find out the cost of each method. It is useful tool to predict cost of construction. Proper construction practices should be done earlier to eliminate the risk in the mid of manufacturing process. Methods of working: Methods of working should be reviewed before starting construction project. It helps in identifying the safety and security of workers during the life cycle of project. Methods of working should be safe for worker and do not cause any harms to their health. Ground conditions: Condition of the place should be reviewed before starting the redevelopment of the new hotel Condition of ground is determined by analyzing the surface stability. In this analysis robustness of the location is determined. Intensity of the possible future events and their impact on the building is analyzed. Surrounding of the area should be reviewed before starting of construction Site restrictions: The location where the construction is to done should be analyzed by reviewing the restriction in the particular area (Zhang, Shen and Zhang, 2013). Owner of hotel in Mong Kok should analyze that if there are any restrictions in redeveloping the building . It is required to review the rules and restriction regarding construction in particular location. Government policies: There are various policies made by government for the construction industry of Hong Kong. If the policies are beneficial for the hotel redevelopment project will get support from government. Rules and regulation should be followed by hotel in redeveloping project.
3.1 Design solution to tackle the problem s during redevelopment of hotel
Redevelopment of the new hotel in Mong Kok can cause problem to neighbourhood, environment and traffic management . To reduce the impact of construction around project site a design solution is required. Design solution for the hotel project is as follows:
Solution for the impact on neighbourhood
Construction of hotel can cause serious problem to neighbourhood of locality. Activities in construction causes lot of sound and noise. This noise cause problem to people, who lives beside the project site. Hotel authority should take concern about the neighbour people. Public concern sometimes result in alternation of the plans made for development of building (Ann and et.al, 2013). Hotel authority should make balance between public issues and its construction activities. Machines used in construction process should generate low sound . Concrete and raw material which is required in building should not cause any harms to the local area people. Pollution due to building process also causes problem to people who live around the project site. Material used in construction of the hotel can cause air pollution (Jaillon and Poon, 2014). This pollution can affect the health of the people. Hotel authorities should make proper arrangement to store the material in covered place. It will help in controlling air pollution due to construction activities. Modern methods should be used by hotel contractor so that building process get faster. Modern equipment and machinery which produce less sound should be used in construction process.
Solution for environment
Construction process of hotel can impact environment to great extent. Environmental factors include air pollution, water pollution, land degradation and many other problem. Material used in building remain scattered outside due to which it cause harms to land. Pollution is also cause by the material. Machinery used in construction process releases smoke in the environment which results in air pollution (Jaillon, and Poon , 2014). Noise pollution also cause by construction activities which create problem to the local area community. Hotel authority should use machine in construction process which do not produce noise. It is required that land used during construction phase should be repaired after manufacturing gets completed. Natural resources should be used in limit for constructing building. Hotel authority should follow the guidelines given for environment safety. Rule and regulation made for safety of environment should be acknowledged by authority before starting of project.
Solution for traffic management
Project site gets congested during construction process. Due to this traffic gets unmanageable and affects daily acclivities of people. Hotel authority should make proper arrangement so that traffic do not get affected. Prior information about the construction should be given to local area people. Hotel authority should not cover the roads by raw material which is to be sued in manufacturing (Hong and et.al, 20150. Roads should be clear in order to reduce traffic problems. Hotel authority should not block the way for it personal use as this can cause problems to the local area people.
3.2 Adoption of proposed methods and design solution
In the redevelopment of new hotel contractor can use different methods of construction. Benefits of using various methods for client is as follows: Benefits of flat slab methods: This method can be useful for hotel as in this technique easily built slabs are used. This method uses prefabricated service which make the making of slab easier (Candlin and Hyland, 2014). It is a cost effective method which can help hotel to construct building in less amount of money. It is a flexible method which facilitates instillation of frame work easily. It requires less amount of time in construction which is the major benefit of this technique. However this method is not suitable for the brittle partitions. Hybrid concrete construction: New hotel for its redevelopment can use this method because it provides high speed in construction. It use attributes of both panellised and 3D volumetric which provides the strongest construction (Khachatryan, 2015). This method produces high quality of work. Hotel can make use of this method because cost of construction using this technique is moderate. Risk of damage of building also reduces by using this methods in construction. Benefits of insulating concrete formwork method: This method can be used by hotel in redevelopment as it gives high level of thermal insulation. It produces high level of insulation for sound and noise. Walls made using this method are strongest and there is no risk of damage in this approach. However this approach requires large amount of time. Cost of construction is also high in this method. Tunnel form construction method: Tunnel form is very effective method that can be used by the hotel in redevelopment process. This method produces high quality of work and provides speed in construction process (Ma and et.al 2013). It is the best suitable method for the hotel redevelopment as it is generally use ion making of hotels, hostels and big apartments. It is very efficient method and provides high quality of work. Capital requirement in this method is high as compared to the previous methods. However this method is complex because of formwork process used in this technique. It is not suitable for the site which is congested and complex. This approach can be used by hotel to develop its building.
From the above report it can be concluded that any new development requires a construction method which is best suitable for it. There are various issues in current construction methods which can impact the redevelopment process of the organisation. Modern methods of construction like hybrid, tunnel, insulation framework and 3 dimensional volumetric techniques are very efficient. These approaches produces high quality of work. There are various methods of development and redevelopment which can help in growth of hotel. Brownfield and green field development are two most use development methods .New hotel in Mong Kok can use brownfield development approach because reconstruction can help hotel to generate more revenue and would give profitability in the market. Brown field development is most suitable development method that can be used by hotel. Tunnel form method of construction can be used by the organisation in remodelling of building. It is required that hotel authority should review its construction practices, condition of ground, technology, restriction at site and government policies. Reviewing these factors will help hotel to redevelop its building in better
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In 2015, recoverable amount is higher than carrying figure so there is no journal entry has been made.
C. Explaining the reasons for impairment
In 2014, carrying amount is $200000, whereas recoverable amount implies for $110000. Hence, carrying amount is higher than recoverable cost which shows the loss of $90000. Carrying cost – recoverable amount $200000 – $110000 = $90000
D. Presenting the amount of plant and equipment in balance sheet
In balance sheet, revaluate amount of plant and equipment is recorded by business entity after doing final reversal.
Interpreting the technical requirements and importance of international accounting standards
International Accounting standards have high level of importance which ensures high level transparency and standardization in the financial statements. Hence, final accounts which are prepared according to IFRS are highly reliable in nature and thereby helps stakeholders in making decisions (Florou, Kosi and Pope, 2017). However, technical knowledge is highly required among the individuals or accounting personnel to deal with the aspects of International Accounting Standards such as IAS 12 and 26 etc. In this, accounting personnel must have ability to recognize deferred tax assets and liabilities. Moreover, assets, revenue received in advance, other liabilities, unrecognized items; consolidated financial statements are the main bases of taxation (Warren, 2016). By taking into consideration all such bases accounting personnel can assess or determine the tax liability. In addition to this, in IAS 12 contains rules regarding the measurement of deferred tax. Along with this, tax rate are also varied from one year to another. In this, accounting personnel is required to update with changing rules and policies. Through this, finance manager and accounting personnel would become able to determine suitable tax liability. In addition to this, IAS 26 serves information about retirement plans which can be distinguished into two types such as defined benefit and contribution plan. Hence, it clearly presents information about the recording, measurement and disclosure of information regarding the retirement benefit plans. Hence, for effective presentation accounting personnel must have knowledge regarding the rules and regulations which are related to it (Bond, Govendir and Wells, 2016). Thus, by considering all such aspects it can be said that technical and conceptual knowledge is highly required for dealing with the standards more effectively and efficiently. Moreover, reporting and measurement aspect of pension plan is highly differing from one standard to another (McPhail, Macdonald and Ferguson, 2016). For instance: UK GAAP has different rules in relation to treatment on pension benefits in against to IAS. Hence, conceptual understanding and knowledge is highly required for dealing with the amount of retirement benefits and deferred tax amount. There are several key issues which are associated with financial reporting enumerated below:
- Reporting needs and requirements are mentioned in the regulations which business entity requires following for ensuring transparency in the final accounts. However, sometimes is not possible for the business organization to comply with all the rules to the large extent.
- Further, some government authorities have framed and introduced legislation which entail that companies are not obliged to prepare financial statements according to accounting standards. Moreover, sometimes treasurer directives also enforce accounting standard which company has to follow for the preparation of financial statements.
- Bond, D., Govendir, B. and Wells, P., 2016. An evaluation of asset impairments by Australian firms and whether they were impacted by AASB 136.Accounting & Finance.
- Florou, A., Kosi, U. and Pope, P.F., 2017. Are international accounting standards more credit relevant than domestic standards?.Accounting and Business Research.47(1). pp.1-29.
- McPhail, K., Macdonald, K. and Ferguson, J., 2016. Should the international accounting standards board have responsibility for human rights?.Accounting, Auditing & Accountability Journal.29(4). pp.594-616.
- Warren, C. M., 2016. The impact of International Accounting Standards Board (IASB)/International Financial Reporting Standard 16 (IFRS 16).Property Management.34(3).