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Architecture

Report on The Engineering and Technology Company

Main objective of this report is to analysis The Engineering and Technology Company, here focus on overall their business policy. Company need to be more careful of taking every necessary step and must be aware of competitors in this market as they have quite strong and experienced competitors with a huge amount of cash in hand. At this stage they need to follow the opposite similar companies or should produce a try to snatch the experienced, effective, and efficient employees from your competitors.

Objectives

Study or working on any subject must have objective. It may be only one objective or a combination of some objectives. My study also have objective. Before submitting the report I need to discuss briefly my Broad Objective and related Specific Objectives.

Main Objective

The main objective is to prepare an internship repot and some realistic recommendation to increase the selling of THE ENGINEERING AND TECHNOLOGY.

Specific Objectives      

  • To find out whether the sales growth rate of THE ENGINEERING AND TECHNOLOGY is going upward.
  • To find out the pricing of THE ENGINEERING AND TECHNOLOGY comparing with other Real Estate companies.
  • To find out the influence of Real Estate in our national economy.

Introduction

Success lies in the ability to adapt with changing times. That is something The Engineering and Technology use as their strategy to anticipate that change and mould their services to meet the needs of their valuable clients.

The Engineering and Technology is a family run Independent company with experience in the Property & Land business, and has excellent connections with many of the most successful architects, planning specialists and other property and Land professionals.

The basic demand of a civil citizen is food, shelter, clothes and medicine. But considering the present scenario shelter is the main problem to all of us. Dhaka is now one of the fast growing and densely populated metro-city in the world. It has been an unplanned city with disorganized facilities for residents. But there should be a change; it is the demand of time. They are committed to providing their customers with quality, affordable Lands. They visit all of their Lands to ensure accuracy in the descriptions they provide.

They are delighted to offer to people the lands they currently have available. They strive after 100% customer satisfaction. They achieve this by personal and individual customer treatment. They will assist their customers with thinkable help during the whole buying process.

Their business has been around for 1 year. However, their team is young and ambitious. They continuously grow, innovate, and reinvent themselves. They take pride in what they do and it is always a pleasure for them to serve their customers.

 

Mission Statement

“To be the leading provider of land development solutions today and tomorrow by building on our strong foundation of integrity and on our commitment to associates, clients, and communities. Our commitment is to preserve the natural beauty of the environment and generate economic growth for the area.

Company Perspectives

The Engineering and Technology business strategy is to: build on its leading position in the small and medium sized residential units development segment; increase recurring income from growing rental property portfolio; maintain strategic investments to strengthen income and asset base; generate significant future cash flow from diversifying businesses.

Vision Statement

”With ethics and integrity, THE ENGINEERING AND TECHNOLOGY  strives for excellence in all facets of Land Development services in order to enhance our position as an industry leader. Our team transforms forward thinking ideas into cutting edge applications, to achieve maximum results for our clients, company and community.”

Corporate Values

“Support and demonstrate our corporate values of growth, passion, integrity, flexibility, benevolence and collaboration.’’

 

Why Invest in Land?

Land is real
Unlike shares, land for sale is tangible, – it can be visited, seen, and walked on.

Land is a finite resource
Bangladesh is a small country with the majority of the population wanting to live in the Capital City, Dhaka.

Land is a solid and easy to understand investment

Land is not open to accounting scandals and it is clear when property prices are going up (or down) and the reason for this movement. For example, everyone in Bangladesh is presently aware of the housing crisis in the country. Other traditionally ‘solid’ investments such as precious metals are not as simple as they appear.

Land increases in value
This is due to demand outstripping supply and also from land gaining planning permission to have houses built on it.

Investment land has a wide range of uses
Investment land can be used for grazing animals, starting a business or building a home on, or it can simply be left as it is – whatever is done with it, the price is likely to rise considerably, even with the slowdown in house price inflation

Land investment – The alternative investment opportunity

“The population is growing, the economy is growing, the demand for new workers is growing, and household formation is changing with an aging society and family break up. The demand for housing is increasing.”

The result is a massive pent-up demand for new housing. What shape and form that housing takes is irrelevant to land owners. Whether executive houses, or affordable flats for key workers, land is needed for new homes.

Decision process

One should decide where to buy land by applying in exactly the same two key criteria as for any other investment, reward and risk. What is the potential reward? How great is the potential risk.

  • How great is the potential return?
    Get it right and the rewards can be exceptional. Typically, when land is redesigned for development purposes its value dramatically increases. The exact percentage increase varies between plots and locations, but it should be reasonable to expect a substantial return on investment if your land is rezoned for development purposes.
  • And what’s the risk factor?
    The risk is that one’s land will not be re-zoned for development purposes, in which case, he still owns the land, and it should still have its initial value. After all, land never goes out of business!

The Engineering and Technology efforts seek to:

  • Create affordable housing (developed land & homes) for people
  • Foster better living environments and pleasant surroundings
  • Ensure environmental balance and sustainability
  • Treat industrial effluents
  • Develop a meaningful partnership with others for development
  • Provide better working conditions for its staff members

THE ENGINEERING AND TECHNOLOGY works in close partnership with the City Corporations, the Government of Bangladesh, other private sector companies, multilateral institutions, the environment department, and myriad financial institutions. THE ENGINEERING AND TECHNOLOGY has its head office in Dhaka, Bangladesh.

 

Features and Facilities

What facilities people will enjoy in The Engineering and Technology:

  1. Very easy and convenient communication with offices, educational institutions, hospitals, mosque, lake and commercial areas.
  2. The Engineering and Technology is a RAJUK registered project.
  3. Bus stops, train station and airport are within 500 to 700 meters.
  4. Project planners are highly experienced and reputed town planners have been working for its development.
  5. Inside the project roads and lanes are minimum 30feet and maximum 80 feet broad.
  6. Flood free area.
  7. International standard schools, colleges, universities, children parks, hospitals, shopping malls, bazaars, restaurants, clubs, community centers, banks, mosques, post offices all these facilities will be available inside the project.
  8. 40% of the project area has been allotted for the above facility.
  9. 16 Security service by police, ansar and company security forces.
  10. Easy and interest free payment system in 12/24/36/48/60 installments.
  11. Plot sizes are 3, 3.5, 4, 5, 6, 10, 11, and 12 kathas.
  12. The project is outside of the flood flow zone of RAJUK.

Price Chart

Sl. No. Payments Term Special Discount Per Katha Installment Per Month
01 Cash Payments* within 10 days 55% 4,50,000.00 ____
02 03 Months* 50% 5,00,000.00 1,50,000.00
03 06 Months 40% 6,00,000.00 1,00,000.00
04 12 Months 30% 7,00,000.00 50,000.00
05 24 Months 20% 8,00,000.00 30,000.00
06 36 Months 10% 9,00,000.00 25,000.00
07 48 Months 0% 10,00,000.00 20,000.00

* This price will be applicable for first 500 plots.

 

 

THE ENGINEERING AND TECHNOLOGY Ensures the Followings

  • THE ENGINEERING AND TECHNOLOGY is very sensitive to fulfill their commitment.
  • They use high quality construction equipments.
  • They always try to satisfy their customers.
  • All of the directors, Managers, Executives and other employees of THE ENGINEERING AND TECHNOLOGY are very experienced and professional.
  • THE ENGINEERING AND TECHNOLOGY ensures their customers that they are tension free about the quality of their apartments.
  • They provide maximum benefit to their customers.

 

Specifications

Kitchen:

  • Concrete shelf at 2.5 feet height from floor level with Glazed Tiles work top (RAK/equivalent),
  • Provision for double burner Gas outlet,
  • Concealed Hot and Cold water lines,
  • A 2.5 feet Band of wall Tiles running on wall along the sink and Gas Cooker (RAK/equivalent),
  • Suitably located Exhaust fan,
  • One high polished stainless Counter Top Steel Sink with Mixer (Malaysian).

Bathrooms:

  • Bath Tub in Master Bathroom,
  • Cabinet Basin with marble Top in Master Bathroom,
  • Provision of Shower Area in the Second Bathroom,
  • Glazed Tiles in Bathrooms up to 7 feet height except maid’s (RAK/equivalent),
  • Floor Tiles in all Bathrooms except maid’s (RAK/equivalent),
  •  Company Standard Sanitary fittings,
  • Water proof imported Door,
  • Mirrors in all Bathrooms with Overhead Lamps,
  • Enamel Paint on the ceiling and walls to prevent dirt and dampness arising from moisture,
  • Soap cases,
  • Towel Rails,
  • Concealed Hot and Cold water lines in M & Child Bathrooms,
  • Essentially correct uniform floor sloped toward the water outlet,
  • Tiles in maid’s room and in walls of maid’s bathroom up to 5 ft. with long pan (RAK) & shower,
  • Nicely arranged Bathroom fittings & fixtures,

 Floors:

  • RAK Homogeneous tiles on all floors (16” X 16”).
  • Essentially correct uniform floor sloped toward water outlet.
  • RAK Homogeneous tiles on Stairs & Lobby.

 Electrical:

  • Independent Electric Meter for each apartment,
  • Good quality local Electrical Switches & fittings, Circuit Breakers and Plug points (MK type/equivalent),
  • Electrical distribution box with Main Switch,
  • Concealed Electrical wiring,
  • Washing machine provision in each apartment,
  • All power outlets with Earthling connection,
  • Concealed Fan Hook,
  • Provision for Air Conditioner in Master Bedroom, Second Bedroom and Living room,
  • Light and Fan points in Veranda,
  • Two emergency light and two fan points in each apartment,
  • Emergency electricity connection in Lift, Pumps, Lobby, Intercom service, Common spaces like Car parking, Reception area, Guard room and Main gate,
  • Concealed Intercom and Telephone lines (02), TV/Satellite Dish connection (02) in each apartment,

Doors & Windows:

  • 36 mm Solid, well seasoned, decorative main Entrance Door Frame & Shutter (Malaysian/Equivalent): –
  • Shutter thickness 36mm
  • Doorframe 6.25” X 3”
  • Door Chain
  • Check Viewer
  • Solid Brass Door Knocker
  • Apartment No
  • Door handle with Lock (imported).
  • Internal Doors are of strong and durable Veneer Flush door Shutters with French polish (Champ Veneer).
  • All Doors with good quality Mortise Locks and fittings,
  • All internal Door frames are made of Malaysian solid wood.
  • Sliding windows with Color Glass complete with mohair lining and Rainwater Barrier in Aluminum Section.
  • Safety Grills in all windows, color as matched with Aluminum Section in Enamel paint.

Painting & Polishing:

  • French polished Door frames & Shutters.
  • Weather coat on outside walls (Berger/Elite),
  • Smooth finished and soft colored plastic paint on all internal walls & ceilings (Berger/Elite),
  • Veranda railing as per the design of perspective,
  • Enamel paint on the ceilings and walls of Bathrooms color as matched with Tiles (Berger/Elite).

Utility Lines (Water & Gas):   

  • Concealed water lines,
  • Hot & cold water lines in Bathrooms & Kitchen,
  • Sewerage & stream water connected to WASA,
  • Water reservoir designed to hold sufficient water supply,
  • Two best quality water pumps (one standby emergency),
  • Titas Gas approved plumbing design,
  • Concealed Gas lines,
  • Individual Gas Riser,
  • Gas pipe lines connection from Titas Gas Distribution System as per total calculated consumption with adequate safety measures,
  • Approved quality Titas Gas materials for internal wiring of Gas line,

 

 

Salient Features

Building Entrance:  An impressive entrance gate with lamp post and the Project Logo on modern sign welcomes one to this contemporary apartment complex. The heavy secured gateway leads to a spacious covered parking floor.

Reception Lobby:  An elegantly designed main Reception lobby decorated with tiles/synthetic marble. Personalized Mail Boxes and a stylish Register Dock for visitors’ check-in an elegant guest waiting area highlights the Reception lobby.

Lift, Lobbies & Staircase:  A major element of convenience & comfort is the lift that has been selected to exacting European styles. This comes in impressive doors & cabin providing fast & reliable services to residents on all floors. Best level of safety has been maintained in the specifications.

The staircase is well located and easily accessible with easy to climb stairs. This leads to lobbies on each floor. The top of the stair railing will be of S. S.

Apartment Layouts:  The total layout has been thoughtfully arranged to maximize advantages especially in relation to day light and cross ventilation throughout. Privacy has been emphasized by spreading the layout from end to end. The master and the second bedrooms have been located away from the living room.

Optional Features:  Various interior designing and additional fittings & fixtures as per choice of allotter may be arranged at cost basis upon approval of the company.

 

Terms and Conditions for the Buyer

Application: Interested buyer shall submit application on the prescribed form duly signed by him/her/them along with earnest money. THE ENGINEERING AND TECHNOLOGY serves the right to accept or reject any application without assigning any reason.

Allotment: Allotment will be made on first come first served basis. On acceptance of application & earnest money, THE ENGINEERING AND TECHNOLOGY will issue an allotment letter to the applicant on receipt of which he/she shall start making payments as per the schedule of payments in the brochure. Buyers willing to make a one time payment will be entertained with substantial discount.  Until the full payment of installments, buyer shall have no right to transfer the allotment to the third party.

Payment:  All payments shall be made by A/C Payee Cheque or Bank Draft or Pay-order in favor of “THE ENGINEERING AND TECHNOLOGY.” Bangladeshis residing abroad may remit payments by TT or DD. Buyer must strictly follow the payment schedule.  THE ENGINEERING AND TECHNOLOGY may issue reminders to the buyer for delay in payment beyond due date. The buyer is liable to pay a delay charge @ 0.1% per day on the amount of payment delayed.  If the payment is delayed beyond 30 days THE ENGINEERING AND TECHNOLOGY shall have the right to cancel the allotment. In such an event the amount paid by buyer shall be refunded after deducting 5% of the total price after resale of the Apartment.

Company’s Right:  The Company may take minor changes in the design both Architectural & Structural of the project should these become necessary. Limited changes in the specification and facilities may be made by THE ENGINEERING AND TECHNOLOGY for overall interest of the project.

Hand Over:  The possession of the apartment will be handed over within 24 months from the date of commencement of construction work except for  reasons beyond control of THE ENGINEERING AND TECHNOLOGY  such as force majeure, natural calamities, political disturbances, strikes, Acts of God or economic conditions, etc. This hand over will only be made after the full payment of installments.

Utility Connection:   Connection fee, security deposit for water, Gas & Electricity and incidental costs relating to these are not included in the price of apartment. Buyer will make these payments directly to the authorities concerned. Should expenditure on these accounts be incurred by THE ENGINEERING AND TECHNOLOGY buyer will reimburse the same to the company proportionate to his/ her share?

Refund:  For any reason beyond the control of THE ENGINEERING AND TECHNOLOGY  LTD like force majeur, natural calamities, political disturbances, strikes, Acts of God or economic conditions, etc., the company may be bound to abandon the Project.  In such an event the buyer will be entitled to refund of all installments along with the earnest money already paid by him/ her.

Transfer of Ownership: Proportionate share of undivided & undemocratic land will be registered in favor of each allocate as per the current rules & regulations of Ministry of Works.

Transfer Cost:  All costs relating to transfer of ownership of the proportionate share of land will be borne by the allot tee on actual basis.

Management:  The buyer must undertake to become a member of the Owners’ Cooperative Society that will be formed by the owners of the apartments for the management of common services such as lift, pumps, security, compound, etc. Each allocate must initially deposit Tk. 25000.00 (twenty five thousand) only in the Reserve Fund of the Association or Company for maintaining management expenses of the complex.

 

Real Estate

Real estate is a legal term (in some jurisdictions, notably in the USA, United Kingdom, Canada, and Australia) that encompasses land along with anything permanently affixed to the land, such as buildings, specifically property that is stationary or fixed in location. Real estate law is the body of regulations and legal codes which pertain to such matters under a particular jurisdiction. Real estate is often considered synonymous with real property (also sometimes called realty), in contrast with personal property (also sometimes called chattel or personality under chattel law or personal property law).

However, in some situations the term “real estate” refers to the land and fixtures together, as distinguished from “real property,” referring to ownership rights of the land itself.

The terms real estate and real property are used primarily in common law, while civil law jurisdictions refer instead to immovable property.

Real Estate in Business Sector

With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Specialists are often called on to valuate real estate and facilitate transactions. Some kinds of real estate businesses include:

  • Appraisal: Professional valuation services
  • Brokerages: A fee charged by the mediator who facilitates a real estate transaction between the two parties.
  • Development: Improving land for use by adding or replacing buildings
  • Property management: Managing a property for its owner(s)
  • Real estate marketing: Managing the sales side of the property business
  • Real estate investing: Managing the investment of real estate
  • Relocation services: Relocating people or business to a different country
  • Corporate Real Estate: Managing the real estate held by a corporation to support its core business—unlike managing the real estate held by an investor to generate income

Within each field, a business may specialize in a particular type of real estate, such as residential, commercial, or industrial property. In addition, almost all construction business effectively has a connection to real estate.

Residential Real Estate

The legal arrangement for the right to occupy a dwelling is known as the housing tenure. Types of housing tenure include owner occupancy, Tenancy, housing cooperative, condominiums (individually parceled properties in a single building), public housing, squatting, and cohousing.

Residences can be classified by if and how they are connected to neighboring residences and land. Different types of housing tenure can be used for the same physical type. For example, connected residents might be owned by a single entity and leased out, or owned separately with an agreement covering the relationship between units and common areas and concerns.

Major physical categories in North America and Europe include:

  • Attached / multi-unit dwellings
  • Apartment (“flat” outside North America) – An individual unit in a multi-unit building. The boundaries of the apartment are generally defined by a perimeter of locked or lockable doors. Often seen in multi-story apartment buildings.
  • Multi-family house – Often seen in multi-story detached buildings, where each floor is a separate apartment or unit.
  • Terraced house (a.k.a. townhouse or row house) – A number of single or multi-unit buildings in a continuous row with shared walls and no intervening space.
  • Condominium – Building or complex, similar to apartments, owned by individuals. Common grounds are owned and shared jointly. There are townhouse or row house style condominiums as well.
  • Semi-detached dwellings
  • Duplex – Two units with one shared wall.
  • Single-family detached home
  • Portable dwellings
  • Mobile homes – Potentially a full-time residence which can be (might not in practice be) movable on wheels.
  • Houseboats – A floating home
  • Tents – Usually very temporary, with roof and walls consisting only of fabric-like material.

The size of an apartment or house can be described in square feet or meters. In the United States this includes the area of “living space”, excluding the garage and other non-living spaces. The “square meters” figure of a house in Europe reports the area of the walls enclosing the home, and thus includes any attached garage and non-living spaces.

It can also be described more roughly by the number of rooms. A studio apartment has a single bedroom with no living room (possibly a separate kitchen). A one-bedroom apartment has a living or dining room, separate from the bedroom. Two bedroom, three bedroom, and larger units are also common. (A bedroom is defined as a room with a closet for clothes storage.)

See List of house types for a complete listing of housing types and layouts, real estate trends for shifts in the market and house or home for more general information.

 

Real Estate Development

Real estate development is the process by which an entity makes improvements to real property, thereby increasing its value. In legal form the developer may be an individual, but is more often a partnership, limited liability company or corporation. However anyone involved as a principal in such transactions is a property developer by occupation. A real estate developer may choose to develop a business model usually by specific building typology (residential, commercial office, industrial, retail) or by geographic preference. Structured education for real estate development has not truly existed until the last decade as many developers have historically came from career paths as architecture, finance, city planning, engineering or construction. Many development companies are also family owned and operated.

 

Categories of Real Estate Development Activity

There are two major categories of real estate development activity: land development and building development.

Land Developers

Land developers typically acquire natural or “unimproved” land (often referred to as englobo land, raw land, real property with no improvements or infrastructure) and “improve” or alter it with utility connections, roads, earth grading, covenants, and entitlements. Infrastructure improvement provides a base for further development of built improvements. Covenants define the context in which future development of built improvements may take place (often in the form of deed restrictions on particular parcels: a sort of “private zoning code” limited only to those properties). Entitlements are secured legal permissions from regulatory bodies (typically in the form of permits, but sometimes in the form of re-zoning or planned unit developments). Once these improvements have been made to the raw land, it is typically subdivided and sold piecemeal at a profit to individuals or building developers.

Building Developers

Building developers acquire raw land, improved land, and/or redevelop able property in order to construct building projects. The buildings are then sold entirely or in part to others, or retained as assets to produce cash flow via rents and other means. Some building developers have their own internal departments for designing and constructing buildings (more common among larger developers), while others subcontract these parts of the work to third parties (typical of small developers).

Economics

Real estate development is first and foremost a cash flow business.

Real estate is, by its nature, an expensive non-liquid asset. This means that it costs a lot of money to own it, and it can be difficult to sell. In development activity, there are also the added costs of improvements themselves (typically called “hard costs”) and the fees of various and sundry consultants necessary to get the work done properly (typically called “soft costs”). Because expense is high, sale is difficult, and return on investment is delayed, real estate investment is inherently risky. A large part of the work of developers is the management of risk.

Since there are significant initial investment requirements, a majority of real estate development projects are financed with a large amount of debt leverage. While more leverage increases potential profit, it also magnifies risks and builds in a periodic negative cash flow (regular payments on the debt). Projects will generally be profitable if the upfront commitment of cash is kept to a minimum and the project can quickly start generating a positive cash flow sufficient to cover debt service.

There are almost as many ways to finance a real estate development project as there are development projects. However, most financing arrangements fall into a few broad categories:

  • Private investors (pension funds, insurance funds, wealthy individuals, joint ventures, etc.)
  • Public investors (REITs, share offerings, public-private partnerships, etc.)
  • Private debt (individual loans, bank mortgages, construction loans, etc.)
  • Public debt (redevelopment loans, etc.)
  • Private grants (non-profit target grants, etc.)
  • Public grants (anti-blight subsidies, affordable housing credits, tax incentives, historic preservation grants, etc.)
  • Equity financing (use of cash flows from other projects owned by the developer)
  • Subordination

Successful real estate developers can become enormously wealthy due to the large sums of money being transacted and the value of the assets they control. However, because of the non-liquidity of their assets, they also are very often cash poor. Inability to remain cash solvent is the primary cause of business failure for real estate developers.

 

 

 

Findings from Queries

During the period of my internship I had some findings that are described here on the basis of Frequently Asked Questions (FAQs). I asked the Project Manager some questions. My queries, his answers, and my comments on the answers are given below:

Please name one of your Completed/Running Projects.

Ans. Uttara Valley (Running project)

Comments: This the first and running project of the company

Does it satisfy the characteristics of project such as objective, fund, time etc?

Yes, the project satisfies the characteristics of project which are

  • Purpose
  • Temporary
  • Unique
  • Resources
  • Cost Time Constraints
  • Interdependencies
  • Life Cycle – Tasks
  • Conflict
  • Risk

Comments: It is an ongoing project and till now it satisfies objective, fund, time etc. But the project manager should be careful of monitoring the project himself as it is the first project and many uncertainties are all around the project.

What is the objective of this project?

The project objective consists of the business benefits that an organization expects to achieve as a result of spending time and exerting effort to complete a project. A project objective is often referred to as the goal. The project objective serves as the marching orders or charge for the project leader and team. It provides information as to what, where, and when, as well as information about how much improvement or change needs to occur. At the completion of the project, any person should be able to refer back to the project objective and determine whether the project was successful. Project goals keep the focus on what is most important. However, on some teams these primary goals are lost in their meeting’s activities. Even if the progress is only inches rather than by huge leaps, the team must be pushing the project forward as quickly, safely, and reasonably as possible.

Objectives or Goals of UTTARA Project

Finish the project within the scheduled timetable.

The objective of Uttara Valleyis be to finish the project within the timeframe agreed upon. This means the project manger must do everything possible to drive the project to the end and stay on time. He should remember to avoid guessing and incompetence in the planning of the scope so as to have a reasonable time schedule with which to work.

Finish the project within the scheduled budget.

Budgets are set by Uttara Valley projectteams while others inherit them. Whether they set the budget or inherit it, they need to make sure they are doing their best to track their expenditures and know where the money is going. When they will finish the project within the scheduled budget, they will demonstrate their ability in running the project responsibly.

Finish the project with the same level of quality.

Unfortunately, when projects lag behind, quality is often sacrificed in order to catch up. Project leaders sometimes feel that in order to pick up speed, pieces of the project will need to be downsized or cut completely. True, the project plan will have to be revised when problems arise, but the revision should never compromise quality. While it is important to keep deadlines, it is equally important to keep the project’s quality high throughout the project.

Finish the project within the specified guidelines.

Uttara Valley project makes sure they are meeting the customer’s needs. They must “wow” the customer! This can be done simply by finishing the project with the specifics the customer really wanted. The best way to solidify this is to verify their accomplishment by customer handoff and close down.

Do the best you can with what you have been given.

There is no such thing as a perfect project. Some projects run up against major odds and hurdles. For example, many recent projects in our country have endured major setbacks because of terror attacks, severe weather causing power outages, or a nation at war. Even against these catastrophes, projects were remarkably turned around and back on track because of great project team leaders and teams. Project goals were met because they did their best with what came their way.

 

In your project management, do you follow the four phases of project management?

Four Phases of Project Management

According to the project management there is four phases exist. THE ENGINEERING AND TECHNOLOGY is going through with all the phases.

  1. First they define the project in which they set up their goals according to the desire of their clients. Like this Uttara Valley project, the top management defined it. This stage called D1.
  2. After that at D2 stage they make the detail proposal for the project. They ensure the answer of these questions, like-
    1. How to conduct the project?
    2. Who will conduct the project activities?
    3. When will they have to deliver the project to the clients?
  3. In project right now is in D3 stage that means the project manager is implementing the project according to design criteria of the project.
  4. The Uttara Valley projectis the first project of the company and till now it is being implemented. So, the D4 stage will be completed.

Comments: It is clear that they are following the four phases of project and has already completing three of four phases and the last phase is still left. Every phase of this project is important for the company as it is the first project.

 

Projects have become complex- how do you respond?

Project Complexity is the extent to which a project, or one of its components, involves a large number of parts, and/or a large number of people, to be coordinated and/or interfaced.

Successful land development requires the developer to go through a complex process of many interrelated parts. While land development is both an art and a science, the most important aspect of the process is its holistic nature. Each separate part influences the others and a viable solution must take into account market demands, budget constraints, and site conditions.

The process usually begins with an idea for the creation of a new development that will serve the needs of the local market. This new development should take its place as a good neighbor within the local community by acknowledging its relationship to adjacent land uses. It should also become economically viable for both its inhabitants and the developer. Therefore, the project manager said that to produce a successful idea for his project, he begins with a thorough understanding of what his potential buyer needs and wants in a new development.

Comments: As the projects have become complex for the reasons described above, there is another extra reason for the company and that is, the company is going to complete a project for the first time.

 

Do you follow any time planning like Gantt chart, Activity on arrow or anything else?

Ans. The Company follows only Gantt chart but no other A-O-A or A-O-N Diagram.

Comments: We think that the company is not willing to reveal their secrecy and that is why they are hiding their strategies.

 

Do you follow the Critical Path Analysis to complete the project in time?

Ans. As there is no A-O-A or A-O-N Diagram, there is no critical path to be needed.

 

What kind of cost plan is used: Bottom up, Top down or anything else?

Ans. The Top-down cost planning is used here as it is a real estate project and prices of lands are set before the project is completed.

 Comments: It is a good decision to use top-down method as the price is fixed for the land and the project manager does not have the scope to increases cost and must use as needed. Cost is the main concern here, not the quality.

 

How do you estimate the cost of project- Experience, Forecasting etc?

Estimating is the process of forecasting a future result in terms of cost, based upon information available at the time. Many techniques, books and software packages exist to help with estimating project costs. Cost estimating is one of the most important steps in project management. A cost estimate establishes the base line of the project cost at different stages of development of the project. A cost estimate at a given stage of project development represents a prediction provided by the cost engineer or estimator on the basis of available data.

The costs of a UTTARA land development facility to the owner include both the initial capital cost and the subsequent operation and maintenance costs. Each of these major cost categories consists of a number of cost components.

The capital cost for a UTTARA land development project includes the expenses related to the initial establishment of the facility:

  • Land acquisition, including assembly, holding and improvement
  • Planning and feasibility studies
  • Architectural and engineering design
  • Construction, including materials, equipment and labor
  • Field supervision of construction
  • Construction financing
  • Insurance and taxes during construction
  • Owner’s general office overhead
  • Equipment and furnishings not included in construction
  • Inspection and testing

The operation and maintenance cost in subsequent years over the project life cycle includes the following expenses:

  • Land rent, if applicable
  • Operating staff
  • Labor and material for maintenance and repairs
  • Periodic renovations
  • Insurance and taxes
  • Financing costs
  • Utilities
  • Owner’s other expenses

The magnitude of each of these cost components depends on the nature, size and location of the project as well as the management organization, among many considerations.

The project manger of Uttara Valley Project follows the following rules will to ensure that an accurate and realistic estimate is produced.

  • He assumes that resources will only be productive for 80 percent of his time.
  • Resources working on multiple projects take longer to complete tasks because of time lost switching between them.
  • People are generally optimistic and often underestimate how long tasks will take.
  • Make use of other people’s experiences and his own.
  • Obtain an expert view.
  • Include management time in any estimate.
  • Always build in contingency for problem solving, meetings and other unexpected events.
  • Cost each task in the Work Breakdown Structure to arrive at a total, rather than trying to cost the project as a whole.
  • Agree a tolerance with his customer for additional work that is not yet defined.
  • Communicate any assumptions, exclusions or constraints he have to his customer.
  • Provide regular budget statements to his customer, copying his team, so that they are always aware of the current position.

Comments: There is no previous experience of the company as a whole, so they must be careful of estimating cash inflows and cash outflows and uncertainty involving these.

 

What kind of cost plan analysis you follow- payback method, discounted cash flow, IRR?

Ans. Discounted Cash Flow method is being used to plan analysis here as it gives almost corrects estimation and considers time value of money.

How do you identify the risk of project? What are the probable risks of this project? What is your preparation?

Several techniques are available that Project manager can employ to identify risks to his projects. He relies on regular team meetings, brainstorming sessions, reviews with stakeholders or experience from similar projects to identify risk of the project. Risks may result from high-level support, funding, resources, skills, hidden agendas and planning related issues.

What are the probable risks of this project?

Once he has identified the risks, he takes the following steps to overcome the situation:

Risk Evaluation

Once he has identified his risks, he writes them down in a risk log. The log is used to monitor and track his risks. He makes his risk log visible to the project stakeholders so they are able to see risks that concern them being addressed. They may flag new risks he hasn’t identified.

The risk log should evolve over time with potential risks removed and new ones added as the project progresses.

Once he has filled out his risk log, then he evaluates his risks. He grades the risks on two levels, likelihood and severity. Assign a value to both the likelihood and severity of high, medium or low. It follows that he should concentrate his efforts on the high / high and high / medium risks. He  looks at the financial implication of each risk as an additional factor.

Corrective Actions

Once he understands where his risks are coming from and which he should addresses first, then he takes corrective actions. He thinks of two actions for each risk. He documents the actions (in his risk log) he intends to take to minimize the impact from each risk.

Risk Control

Finally, he monitors and controls his risks. Risk control involves keeping a risk management plan, a record of risks handled, a description of his proposed corrective actions, costs involved and a risk escalation plan for when problems occur. He includes information about the risks in his progress reports. This keeps them visible and prevents any nasty shocks during the project.

Nobody likes to think about what may go wrong in a project, especially early on, but to overlook risk management means that we chance an unnecessary project failure.

Comments: Risk and uncertainty are all around this project as it is the first project of the company. A simple mistake can be very dangerous for the success of the project. So, steps should be taken carefully.

Do you prefer team work in project management? What do you do?

The project manager of Uttara Valley project prefers team work in project management. He believes that Human Resource Management is needed everywhere, at home, at the office, and especially when working on a project with a group of people. Using human resources during a project requires getting the most effective use of the people involved with the project. This includes everyone associated with the project: sponsors, customers, partners, and individual contributors.

According to him, there are three major aspects of project human resource management: organizational planning, staff acquisition, and team development.

 

Organizational Planning

Organizational planning identifies, documents, and assigns project roles, responsibilities, and reporting relationships. Before the project begins, all role and responsibilities should be designated. This will cut down on any confusion after the project starts. Each team member will know what is expected of him or her and will be able to follow through on the assigned tasks. Having a staff development plan and an organizational chart will also decrease uncertainty and conflict. A staff development plan describes how and when human resources will be brought onto and taken off the project team. An organizational chart is a graphical way to breakdown the project reporting relationship. It diagrams who is to report to whom. There will not be any question as to the chain of command with a detailed organizational chart. Good organizational planning also includes any supporting documents needed to outline each job title and description or any training needs.

Staff Acquisition

Staff acquisition is the process of getting the human resources needed assigned to and working on the project. Choosing the correct people for a project is almost as important as the project itself. Without a knowledgeable team, the project will be much more difficult. Some things to consider when picking your team are previous experience, personal interests, personal characteristics, availability, and competencies and proficiency. Your resources for finding team members are endless. They may come from negotiations with managers and other project teams, pre-assignment from another project, or even from outside the organization. He also needs to determine whether each team member will be working on the project full or part time. Thinking ahead of the ideal team members will save your valuable time later.

Team Development

Team development includes developing individual and group competencies to enhance project performance. By coming together as a true team, the project will be more successful. The project manager follows the following ways to achieve team Development:

  • Team building activities
  • General management skills
  • Reward and recognition systems
  • Collocation or frequent face-to-face meetings
  • Training

Significant improvements in team morale will cause an increase in team mentality. Other improvements that will be seen include performance improvements, improvements in individual skills, improvements in team behaviors, and improvements in either individual or team competencies.

Comments: It may become very tough to maintain team work because, team work is the result of working together for a specific time. As time passed and the team work will be more effective for this project.

 

What is the organizational structure of this project management?

How do you maintain the control system of the project?

A project control system is a tool that enables managers to recognize problems before they become unsolvable. In essence, it monitors and controls the actual work to be done along with the cost of doing the work and the time needed to do it. How elaborate a system is depends on the size and scope of the task to be managed, as well as the size and distribution of the team working on it.

Comments: There is no written technique to be followed to control the project.

According to the project classification in which category this specific project belongs to?

There are three types of project, such as-

  1. X category: Productive of self sustaining & earn revenue. Example: power plant.
  2. Y category: Productive but does not earn revenue. Example: Irrigation.
  3. Z category: Service providing project non-visible product. Example: education, health etc.

According to the project classification, the Uttara Valley project belongs to “X category” because it is not only productive but also earns revenue.

Comments: It is a private owned company and for-profit project

What are the key factors of your project?

Project managers stay current with ever-changing development regulations and are responsible, either directly or indirectly, for key factors in land development project.

The key factors of FDV land development projects are:

Interface with public agencies

The project manager of Uttara Valley project works with city and county planning departments, flood control and state agencies (for zoning, subdivision platting, street layouts, street dedications and other urban planning items), with public works departments (for water, sanitary sewer, storm sewer, streets and flood control issues), with state agencies (for utility environmental quality) and in some cases with the utility district authority.

Environmental conditions

Environmental issues must be dealt with before lenders will commit to financing, and typically prior to breaking ground. Every project should begin with an environmental report. Wetlands, live/inactive water bodies, burial sites, illegal dumping, pollution — natural or manmade — to name a few, are all environmental issues that have a major factor in the ultimate use of the property. Water bodies, flood-prone areas and areas that warrant special use can be protected to add an amenity and appeal to a project.

Contracts with consultants and contractors

Appropriate contracts for all subcontractors and consultants are critical to the legal and financial aspects of the project.

Land, planning, landscape, architecture, amenity planning

A project manager must be versed in various land-planning strategies to maximize use of the land and project appeal. Appropriate and pleasing landscape architecture and amenity design can determine the tone and impact that a developer is hoping to achieve. Designing amenities for the ultimate users such as water features that act as storm water detention and amenities improves the marketability and sales velocity of a project.

Development costs

The project manager is generally responsible for providing a cost analysis for all aspects and each phase of a development project.

Civil engineering

It is the project manager’s responsibility to choose the projects civil/design engineer, who is ultimately responsible for the design and operation of all utility and infrastructure functions of the project. Water, sanitary sewer and storm sewer capacity must be determined from the appropriate utility provider, and governmental approvals must be obtained for every engineering and design-related construction item.

Infrastructure construction

The project manager works with the project engineer to coordinate the bidding for infrastructure construction, whether it is by publicly advertised bidding or selective bidding. In addition, the project manager and project engineer supervise the construction and progress payments throughout development of the project. Additionally, the project manager coordinates the extension and installation of electric service and street light installation (an increasingly difficult task since electricity deregulation), natural gas, telephone, cable television, telephone and, if available, bundled digital services.

Subdivision restrictions

The project manager supervises the creation and initial operation of the homeowners association, typically by hiring a professional firm that specializes in this. The project manager also supervises preparation of deed restrictions and serves on architectural control committees, if necessary.

Amenities

The project manager coordinates the design, financing, construction, maintenance and operations of amenities, which may include the subdivision entrance, parks, recreation areas, open space, landscaping and water features, plus active recreation features, such as golf courses.

Market Analysis

One of the first tasks of the project manager is to coordinate and direct a market analysis, which helps determine the demand for, absorption and price of the product.

Financing district development

The project manager should be versed in the various development-oriented financing districts, including municipal utility districts, tax increment reinvestment zones, public improvement districts, municipal management districts and road improvement districts.

Development regulations

Project managers must be versed in all aspects of development regulations, including zoning, subdivision platting, environmental regulations (including wetlands), utility and infrastructure regulations and development financing regulations.

Professional groups and politics

Through activity in land development and real estate oriented professional groups, project managers stay current in development trends and changing regulations and take advantage of networking opportunities. Project managers also often are politically active so they can work to retain or improve property rights regulations that provide positive land development activity.

 

What are the key elements of your project?

Key Elements in THE ENGINEERING AND TECHNOLOGY  

The key elements of the land development process THE ENGINEERING AND TECHNOLOGY are market research, site selection and analysis, project design, site engineering, project costs, and financial feasibility. Each element has a unique role to play.

Market research involves determining which type of buyers to capture; understanding their buying power, lifestyle characteristics, and product demands; and matching housing types and master plan concepts with those characteristics.

This part of the process can extend through to the marketing and selling of the project.

Site selection and analysis involve developing a list of desirable site characteristics; analyzing site conditions; and evaluating all the physical, legal and political, and off-site characteristics of a particular site for their contribution to the project’s success. Project design matches marketing information on buyer preferences with site characteristics to produce a master plan and housing types that best satisfy these requirements. Site engineering deals with the physical handling of the topography and installing the infrastructure to support the master plan.

Managing project costs involves determining both soft costs (fees, marketing, and testing and investigating site conditions) and hard costs (labor and materials) for the project together with the schedule for completing each task. From this information, one can then produce an accurate project cash flow.

Financial feasibility refers to determining the profitability of the project from sales forecasting and project costs.

 

What your role and responsibility as a project manager?

Roles and Responsibilities of Uttara Valley project manager

A project manager is the person who has the overall responsibility for the successful planning and execution of a project. The Uttara Valley project manager possesses a combination of skills including an ability to ask penetrating questions, detect unstated assumptions and resolve interpersonal conflicts as well as more systematic management skills.

Key amongst his duties is the recognition that risk directly impacts the likelihood of success and that this risk must be both formally and informally measured throughout the lifetime of the project.

Risk arises primarily from uncertainty and the successful project manager is the one who focuses upon this as the main concern. Most of the issues that impact a project arise in one way or another from risk. A good project manager can reduce risk significantly, often by adhering to a policy of open communication, ensuring that every significant participant has an opportunity to express opinions and concerns.

It follows from the above that a project manager is one who is responsible for making decisions both large and small, in such a way that risk is controlled and uncertainty minimized. Every decision taken by the project manager should be taken in such a way that it directly benefits the project.

Project managers use project management software, such as Microsoft Project, to organize their tasks and workforce. These software packages allow project managers to produce reports and charts in a few minutes, compared to the several hours it can take if they do not use a software package

The role of the Uttara Valley project manager encompasses many activities including:

  • Planning and Defining Scope
  • Activity Planning and Sequencing
  • Resource Planning
  • Developing Schedules
  • Time Estimating
  • Cost Estimating
  • Developing a Budget
  • Controlling Quality
  • Managing Risks and Issues
  • Creating Charts and Schedules
  • Risk Analysis
  • Benefits Realization
  • Scalability, Interoperability and Portability Analysis
  • Documentation
  • Team Leadership
  • Strategic Influencing
  • Customer Liaison

Comments: These rules and responsibilities are defined by the top management.

 

 

Recommendation for the Company

Get Your Home Ready

Have your real estate agent take a close look at your home and let you know what needs to be done to get it ready to sell. Properly preparing your home before putting it in the multiple listing will help get you a higher price and a quicker sale. In general, you want your home to look as clean and as new as possible.

Carpeting and Painting

Painting walls and replacing carpet are the most frequent cost effective recommendations. Because of recent mold concerns, make sure that anyone installing new carpet agrees to replace all existing tack strips. This is especially important in the basement and anywhere the carpet may have gotten wet. Some companies leave many of the old tack strips in place and reuse them.

Sell or Donate Your Extra Stuff

Relocation is seldom fun, but there are ways to make it easier. Don’t pass up the opportunity to sell or give away all of that stuff you have stored, but haven’t used for a year or more. Getting rid of things may be hard to do, but it will also make your move to a new home easier. If you are relocating across country, it may even be cheaper to buy new furniture and appliances than to move them. Yard sales and donations to local charities are both great ways to reduce clutter and make your home more attractive to buyers.

Beware Referral Companies

Beware of internet companies offering to refer you to a good or experienced Realtor or agent. The primary requirement for an agent to be listed with these companies is simply to be willing to pay them a fee for referrals. Education and experience requirements are minimal if they exist at all. Many newer agents use these companies, because the agents lack the experience and referral client base to obtain enough leads on their own to stay in business. Discount real estate companies, and their agents who have to rely on volume, may not be able to provide the level of attention and service that you expect and deserve.

 

 

Conclusion

After getting the findings from the internship I have conducted, I have found that most of the organization members from top to bottom are individually experienced of doing this kind of projects earlier. But the company as a whole does not have any previous experience and trying to make the running project successful by creating outstanding workforce. They need to be more careful of taking every necessary step and must be aware of competitors in this market as they have very strong and experienced competitors with a huge amount of cash in hand. At this stage they need to follow the other similar companies or should make a try to snatch the experienced, effective, and efficient employees from the competitors.

 

Categories
EEE

Noise Equivalent Count Rate Nuclear Camera

PET stands for Positron Emission Tomography. It is the most latest and powerful radiotracer imaging technique in the field of medical science for imaging to diagnosis various diseases such as tumor, cancer, Parkinson’s disease etc. It is also uses in monitoring response after therapy in the study of new pharmaceutical drugs, and in studying engineering processes .

A positron emission tomography (PET) scan produces a three-dimensional image of functional processes of organs in the body. This functional imaging technique has been used for the last few decades in many clinical applications . It also used in studying engineering processes  and in the study of new pharmaceutical drugs .

This chapter outlines the various physical and instrumental features such as PET principles, PET radionuclides, beta decay, annihilation photons, interaction with matter, coincidence detection of annihilation photons, detector selection, acquisition mode, etc.

PET   Principles

In clinical applications, a very small amount of labeled compound (called radiopharmaceutical or radiotracer) is introduced into the patient usually by intravenous injection and after an appropriate uptake period, the concentration of tracer in tissue is measured by the scanner.

At some point, in time the isotope will decay with the emission of a positron. The proton rich isotope achieves stability through positron decay by converting a proton to a neutron. During its decay process, the radionuclide emits a positron which loses its kinetic energy by interactions with the surrounding atoms of the imaged tissue.

When the positron reaches thermal energy after traveling an extremely tortuous path of 3-5 mm, it encounters an electron from the surrounding atoms (occurs annihilation) [Fig.1.1] and a meta-stable intermediate species called positronium may form .

Detector

The two particles (electron and positron) combine and “annihilate” each other resulting in the emission of two gamma rays of   511 keV each in opposite directions.

Thus, after annihilation, generally two photons having equal energy of 511keV are produced and emitted nearly back-to-back. The energy of the annihilation photons hit opposite detectors they deposit energy due to scatter and absorption within the detectors. The source (nuclear decay point) is assumed to lie on the straight line (known as the Line of Response) joining the two detector positions by detecting a large number of coincidence events, the distribution  of tracer can be determined by two important fundamental degrading factors in resolution correspond to positron range and annihilation photon.

PetLine of Response (LOR)

A line joining the centres between two opposite individual detectors is known as a line of response (LOR). It is the line linking the points of detection of two gamma rays.

LineSince the detectors have a finite size the LOR is in practice a tube with similar radius. Different LORs must traverse different thicknesses of tissue.

A PET scanner records counts as coincidence events (simultaneous detection of two annihilation gamma rays) between opposite pairs of crystals. Unscattered photon pairs are located for a specific LOR within a thin volume centred on the LOR. The shape of this volume is an elongated parallelepiped, and is called a tube of response (TOR) .The TOR is a function of crystal size. Wide TORs result in poor resolution reconstruction, but with lower noise level. On the other hand, thin TORs will enable the reconstruction to recover higher frequencies which results in an increase of the noise level.

Effect of   Positron Range  

Before undergoing annihilation the positron travels a finite distance. The spatial resolution of PET imaging is limited by positron range of the isotope of interest, off-axis detector penetration linear or angular directions for the image reconstruction process . This positron range contributes an offset between the LOR of two unscattered photons and the positron decay  point . The range of positrons in tissue is an important limitation to the ultimate spatial resolution achievable in positron emission tomography.

Uncertainty in the localization of the decaying nucleus arises due to the positron range which increases with increasing positron initial energy. This uncertainty arises because we wish to determine the location of the Positron decay point, not the annihilation point. The average distance of the LORs from the decay point due to the positron range  in water/tissue is about 0 .2 mm for the positrons emitted from 18F,whereas this range is increased to 1.2mm for the positrons emitted from 16O [11].

Acollinearity

Annihilation photon acollinearity is a fundamental but little investigated problem in positron emission tomography (PET) [12].The angle between the  paths of annihilation photons is not always exactly 180 degree but is typically around 179.5°.This angular deviation of  about 0.5° [13] causes a positional error in locating the true annihilation point [Fig.1 .4]. At the time of annihilation, both positron and electron do not come to a complete rest, because they have some non-zero momentum before undergoing annihilation. For the conservation of momentum of the positron-electron pair, the annihilation photons are not emitted exactly in opposite directions.

errore inThe angular deviation causes a separation (Dx) of the LOR from the true annihilation point, which blurs the PET images. This blurring is an increasing function of the detector ring diameter (D) and it causes the maximum effect at the centre of the field of view. The blurring coefficient relating Dx to the ring diameter (D) in calculations of the PET spatial resolution was experimentally determined, i.e., the value of Dx was estimated to be (0.00243± 0.00014)×D for the human subject [12]. The acollinearity introduces an uncertainty to the image resolution which is about 1 mm for a 50 cm and about 2 mm for a 100cm ring inner diameter PET tomography .

PET   Radionuclides

A nuclide is a general term applicable to all atomic forms of an element. Nuclides are characterized by the number of protons and neutrons in the nucleus, as well as by the amount of energy contained within the atom. A radionuclide is an unstable form of a nuclide. They may occur naturally, but can also be artificially produced.

The PET technique has developed on the basis of   positron emitting radionuclides, usually produced from a cyclotron. Radionuclides used in PET scanning are typically isotopes with short half-lives such as carbon-11 (T1/2≈ 20 min), nitrogen-13 (T1/2≈ 10 min), oxygen-15(T1/2≈ 2 min), and fluorine-18 (T1/2≈ 110 min).Positron emitters such as 18F, 15O, 13N and 11C can be attached  to biological molecules of interest and injected  intravenously. That means radionuclides are incorporated either into compounds normally used by the body such as glucose (or glucose analogues), water, or ammonia, or into molecules that bind to receptors or other sites of drug action.

Currently, 18F is widely used in PET as the labeled compound FDG (fluorodeoxy glucose) [15].Glucose has an increased uptake in malignant cells. FDG is a biologically active molecule which does not affect the normal biological process in the body when administered in tracer quantities.

The mean ranges of positrons and their energies from major positron   .emitting radionuclides.

Half life68Ga is the daughter nuclide of 68Ge and is often eluted from a Ge/Ga-68 generator system.68Ge has a half life of 270 days.

Such   label led compounds are known as radiotracers. It is important to recognize that PET technology can be used to trace the biologic pathway of any compound in living humans (and many other species as well), provided it can be radio labeled with a PET isotope. Some commonly used PET isotopes and their associated properties are shown in Table-1.1 and the process of positron emission from the unstable radio-nuclides described the following three sections.

Nuclear Decay

An atom consists of nucleus (made of protons and neutrons), and a cloud of electrons around the nucleus. A proton has a positive electrical charge, an electron has an equal negative charge, a neutron is neutral. Protons and neutrons have almost exactly the same mass (weight). An atom generally has an equal number of protons and electrons, and is neutral in charge because of this. The electrons determine the chemical properties and color of the atom. The nucleus determines the mass of the atom, and whether or not it is radioactive.

Let’s take a normal nucleus, carbon-12. This nucleus is made up of 6 protons and 6 neutrons. Together they give this nucleus a mass of 12. Carbon-12 is abbreviated as 12C. Another kind of carbon nucleus is carbon-14 (14C). This one has 6 protons and 8 neutrons. Since an atom normally has an equal number of protons and electrons, these two nuclei have the same number of electrons, and have the same chemical properties (they both act like carbon). 14C has too many neutrons. An excess of neutrons or protons in a nucleus causes nuclear instability.

This nucleus tends to be stable with emission of radiation, i.e.  14C is radioactive and it decays. There are three main ways that a nucleus can decay. It can lose an alpha particle (a helium nucleus) 4He, it loses two protons and two neutrons. Or it can lose a negative beta particle, which is the same as an electron, when a neutron converts into a proton. Or it can lose a positive beta particle, which is also called a positron, and is the same as a positive electron, and a proton converts into a neutron.

The nucleus tends to stability through a transition to the lowest possible state for its nucleon number, and the process is known as nuclear beta decay. Beta decay is relevant to the PET technology, and some of its associated features are described below.

Beta  Decay

Beta decay is a type of radioactive decay in which a beta particle (an electron or a positron) is emitted from an atom. There are two types of beta decay, positive beta decay(­­­­­b+) and negative beta decay (­­­­­b)  is an example of weak interaction [16]. Beta decay does not change the nucleon number but changes the charge only, as detailed in Eq. l.l & 1.2

β decay  process

The process, in which a neutron converted into a proton and electron with the emission antineutrino, is called   β decay process. β decay generally occurs in neutron-rich nuclei.

Npevβ+ decay process

The process in which a proton converted into a neutron and positron with the emission neutrino, is called β+ decay process. this process is also known as “positron emission” decay. Here actually β decay  occurs through the transformation of a neutron into a proton or vice versa through what is called “the Weak Nuclear Force” or “Weak  interaction

Az

BetaPositron Emission

Positron emission (a type beta decay i.e. β+ decay) occurs when the neutron to proton ratio in the nucleus is too small and causes nuclear instability Positron emission or beta plus decay (β+ decay) is a particular type of radioactive decay, in which a proton is converted to a neutron, and it releases a positron and a  neutrino. As an example, the following equation describes the beta plus decay of carbon-11 to boron-11, emitting a positron and a neutrino.

ExIn β+ decay, a proton is converted into a neutron via the weak nuclear force. Beta emission is accompanied by the emission of a neutrino which shares the missing energy and momentum of the decay.

The neutrino is an electrically neutral particle having no appreciable mass, and is produced in some nuclear reactions such as beta decay, but it is very hard to detect. This light particle interacts with other particles very weakly, and can easily pass through matter without any appreciable interaction. The neutrino is not directly relevant to PET imaging, but its presence in the positron decay makes the energy of the positron variable instead of a fixed energy for a particular isotope.

 In beta decay the change in binding energy appears as the mass energy and kinetic energy of the beta particle, the energy of the neutrino and the kinetic energy of the recoiling daughter nucleus. The energy of an emitted beta particle from a particular decay can take on a range of values because the energy can be shared in many ways among the three particles while still obeying energy and momentum conservation .

 In principle, positron decay is always accompanied by electron capture. The nucleus captures an electron which basically converts a proton to a neutron.  Electron capture (EC) is a decay mode for proton-rich isotopes and often occurs when there is not enough energy to emit a positron.

The energy emission depends on the isotope that is decaying; e.g. 0.96 MeV applies only to the decay of carbon-11. Isotopes which increase in mass under the conversion of a proton to a neutron or which decrease by less than 2me, do not spontaneously decay by positron emission.

Nuclei which decay by positron emission may also decay by electron capture. For low-energy decay, electron capture is energetically favored by 2mec2 = 1.022 MeV, positron emission is forbidden and then the only decay mode is electron capture. In the electron capture process, the nuclide changes into a new element because the proton converts into a neutron 83Rb would have only electron capture decay mode to 83Kr. A proton in the nucleus captures an electron (usually from the K- or L-shell), and forms a neutron and a neutrino.

RbWhen an inner shell electron is captured by the nucleus the atom loses an electron and the atom is left in an excited state. To fill the vacancy, an electron in an outer shell falls into the inner shell gap, releasing energy as an x-ray.

Branching   Ratio or Branching Fraction

In general, the branching ratio (BR) for a particular decay mode is defined as the ratio of the number of atoms decaying by that decay mode to the number decaying in. total,

BrWhere, BR1=K1/K , BR2=K2/K

In particle physics and nuclear physics, the branching fraction for a decay is the fraction of particles which decay by an individual decay mode with respect to the total number of particles which decay.

 It is equal to the ratio of the partial decay constant to the overall decay constant. Sometimes a partial half-life is given, but this term is misleading due to competing modes it is not true that half of the particles will decay through a particular decay mode after its partial half-life. The partial half-life is merely an alternate way to specify the partial decay constant λ, the two being related through:

T For example, for spontaneous decays of 132Cs, 98.1% are β+ decays, and 1.9% are β decays.

PET scanner detects only 511 kev photons. Different isotopes used in PET have variable fraction of other decay events, which are not detected by PET. This has to be taken into account when calibrating the scanner and the blood samples by dividing the measured

Isotope

values by the branching ratio.

Branching  ratios for PET  isotopes

c11

However, invent data branching factor 0.174 is used

Interaction of   Photons with Matter

When a highly penetrating photon interact with matter, the possible interaction processes that occur depending on the energy of the photon, are  

  1. Coherent (Coherent) scattering (predominates in human tissue,~< 50keV);
  2. Photoelectric effect (< 100 keV);
  3. Compton effect (  >100KeV   to ( ~ <2MeV);
  4. Pair production ( ≥1.002 MeV);
  5. Triplet   production (≥ 2.044 MeV); and
  6. Photonuclear   production ( ≥10MeV);

PhotonIn the PET detection process, annihilation photons are completely absorbed by the detectors, mainly through Compton scattering followed by photoelectric absorption. The mechanism of the interactions with matter is briefly outlined below.

Photoelectric   Absorption The absorption of an X-ray or ¡-ray photon by an atom of the   absorbing material causes the emission of an electron from one of its bound shells. This process is known as photo electric absorption.

effectIn this process, the incident photon completely disappears and its energy is transferred to the orbital electron, the electron gain some kinetic energy because the photon energy is higher than the electron binding energy.  Most of the energy is required to overcome the binding energy of the orbital electron and the remainder imparted to the electron upon its ejection.

The ejected free electron is called a photoelectron which travels a short distance in tissue and is absorbed. The atom’s resultant charge is +1 due to the electron void.

Subsequently, electrons from outer orbital drops inward to fill the void, such as from the L-shell to the K-shell and from the M-shell to the L-shell, etc.

As electrons drop into inner shells they give up energy in the form of an x-ray photon called a characteristic ray.

The energy of this photon will be different in binding energies between the upper (higher energy) shell and the lower shell. If this excess energy is greater than or equal to the binding energy of another electron, then this energy can be used to free the second electron. This secondary electron is called Auger electrons.

The three products of the P.E. effect:

          1) A negative ion (photoelectron),

          2) Characteristic radiation, and

          3) Auger electron results in a positive ion (atom deficient one electron).

TharssThere are four simple rules governing the probability of the photoelectric effect occurring :

The incident photon must have sufficient energy to overcome the binding energy of the electron. For example, if a K-shell electron has a binding energy of 70 keV and the incident photon have energy of 68.5 keV, it absolutely cannot eject that..electron from its orbital.

A photoelectric interaction is most likely to happen when the energy of the incident photon exceeds but is relatively close to the binding energy of the electron it strikes. Using our example of a K-shell electron with a binding energy of 68.5 keV, a photoelectric interaction is more likely to occur when the incident photon is 70keV than if it were 120keV.This is because the photoelectric effect is inversely proportional to approximately the third power of energy.

The probability of photoelectric absorption increase sharply with increasing Z (atomic number of the target material) and decreases sharply with increasing incident photon energy..

The tighter an electron is bound to its atom, the more likely it is to be involved in a P.E. interaction. Atoms with high atomic number bind their electrons tighter than atoms with low Z number. These high atomic number elements are more likely to undergo P.E reactions. The probability of the P.E. effect is nearly proportional to the third power of the atomic number.

EnargyThe fact that P.E. interaction is 1/E3 explains, image contrast decreases when higher x-ray energy are used in imaging. At energies <50keV, P.E. effects plays an important role in imaging soft tissue. It can be used to amplify differences in attenuation between tissues with slightly different atomic numbers, and improves image contrast. e.g: 1) different target and filters in mammography, and 2) use of phosphors containing rare earth elements(lanthanum and gadolinium) in intensifying screens.

The ejection of an electron occurs closer to the nucleus (usually from the K-shell) because the nucleus is involved to conserve the momentum. The benefit of photo electric absorption in x-ray transmission imaging is that there are no additional non-primary photons to degrade the image

Compton Scattering

Compton scattering is an interaction of a high energy incident photon with a loosely bound orbital electron. The binding potential of the loosely   bound electron is small compared to the incident photon energy.

An incident photon with relatively high energy strikes a free outer shell electron, ejecting it from its orbit (inelastic interaction).The photon is deflected by the electron so that it travels to a new direction as scatter radiation.. In this interaction, the photon transfers some of its energy to the electron and deviates from its initial path, and the electron (known as a Compton recoil electron) becomes completely free from the atom

ComptonThe kinetic energy of the “recoil” electron equals the energy lost by the photon, with assumption that the binding energy of the electron is negligible. After interaction, the photon energy is reduced and can be calculated by the well-known Compton formula

Where

Two factors determine the amount of energy that the photon retains, its initial energy and its angle of deflection of the recoil electron.

Compton   scattering is a type of scattering that X-rays and gamma rays undergo in matter. The inelastic scattering of photons in matter results in a decrease in energy (increase in wavelength) of an X-ray or gamma ray photon, called the Compton Effect. Change of wave length can be obtained by following equation,

Where02The interaction between electrons and high energy  photons (comparable to the rest energy of the electron, 511 keV) results in the electron being given part of the energy (making it recoil), and a photon containing the remaining energy being emitted in a different direction from the original, so that the overall momentum of the system is conserved. If the photon still has enough energy left, the process may be .repeated. Almost all scatterred radiation in X and ¡ rays between 30keV to 30MeV interact in soft  tissue by Compton scattering….

Qualitatively, this equation shows that the scattered x-ray energy becomes smaller as the scattering angle increases and, at higher incident energies, this effect is amplified. Compton scattered x-rays can deleteriously affect image quality by reducing contrast and are implicated for environmental radiation protection concerns.

Coincidence Events in PET Detection Process

If two photons are detected within the resolving time t of the system, then the scanner records an event and the event is  referred to as a coincidence event [Fig.1.6]. Since the order of the photons is irrelevant, this gives a coincidence timing window of length 2t

In a PET camera, each detector generates a timed pulse when it registers an incident photon. These pulses are then combined in coincidence circuitry, and if the pulses fall within a short time-window, they are seem to be coincident. A conceptualized diagram of this process is shown in figure

PetAll of the coincidence events detected during an imaging period are recorded by the PET computer system as a raw data set, the coincidence data in PET is reconstructed by a computer to produce cross-sectional images in the axial and coronal planes

Four types of coincidence events are observed in the PET which are given below:

True Events

True coincidences occur when both photons from an annihilation event are detected by detectors in coincidence, neither photon undergoes any form of interaction prior to detection, and no other event is detected within the coincidence time-window.

Or A true event corresponds to detecting two photons arising from an annihilation event which have not appreciably interacted with the imaging object before reaching the detectors.

A true coincidence is an event that derives from a single positron–electron annihilation. The two annihilation photons both reach detectors on opposing sides of the tomography without interacting significantly with the surrounding atoms and are recorded within the coincidence timing window

RayThe sensitivity of a tomography is determined by a combination of the radius of the detector ring, the axial length of the active volume for acquisition, the total axial length of the tomography, the stopping power of the scintillation detector elements, packing fraction of detectors, and other operator dependent settings (e.g. energy window). However, in general terms the overall sensitivity for true  events are given by  eqn

TzWhere Z is the axial length of the acquisition volume, D is the radius of the ring.

Random   Events

A random (or accidental) coincidence occurs when two nuclei decay at approximately the same time .This events  sometimes  referred to as an accidental coincidence arises mistakenly from two separate positron annihilations. After annihilation of both positrons, four photons are emitted. Two of these   photons from different annihilations are counted within the timing   window and are considered to have come from the same positron, while the other two are lost. Two photons from two unrelated decays are detected within the scanner resolving time and the scanner produces a false coincidence event

Pointmode, coincidences are only recorded between detectors within the same ring or very closely neighboring rings. These events are initially regarded as valid, prompt events, but are spatially uncorrelated with the distribution of tracer. This is clearly a function of the number of disintegrations per second, and the random event count rate (Rab) between two detectors a and b is given by the following equation

Rab

Where Na, Nb are the singles event rate incident upon the detectors a and b, and 2t is the coincidence window width. Usually Na=Nb so that the random event rate increases approximately proportionally to N2.

This relation is true provided that the singles rate is much larger than the rate of coincidence events, and that the singles rates are small compared to the reciprocal of the coincidence resolving timet, so that dead-time effects can be ignored.

There are two common methods for removing random events:

  • estimating the random event rate from measurements of the single event rates using the above equation, or
  • employing a delayed coincidence timing window.

The number of random coincidences detected, depends on the volume and attenuation characteristics of the object being imaged, and on the geometry of the camera. The distribution of random coincidences is fairly uniform across the FOV, and will cause isotope concentrations to be overestimated if not corrected for random coincidences also add statistical noise to the data.

The random coincidence contribution may also be estimated by introducing a delay in one of the coincidence channels. In this technique, timing signals from one detector are delayed by a time significantly greater than the coincidence resolving time of the circuitry. Activity outside the field of view (FOV) can also give rise to random coincidences, so the random rate can be reduced by shielding out of field activity and by reducing the resolving time of the scanner.

Scattered   Events

A scattered coincidence is one in which at least one of the detected photons has undergone at least one Compton scattering event prior to detection. Scattered events arise when one or both of the photons from a single positron annihilation detected within the coincidence timing window have undergone a Compton interaction.

In practice, most scattered photons are scattered out of the field of view and are never detected. Those annihilations for which one or both gamma rays are scattered but still detected are referred to as scattered events.

Since the direction of the photon is changed during the Compton scattering process, it is highly likely that the resulting coincidence event will be assigned to the wrong LOR. The LOR assigned to the event is uncorrelated with the original annihilation event, i.e., an incorrect LOR is formed because the photons’ paths are not collinear

Scattered coincidences add a background to the true coincidence distribution which changes slowly with position, decreasing contrast and causing the isotope concentrations to be overestimated. They also add statistical noise to the signal. The number of scattered events detected depends on the volume and attenuation characteristics of the object   being imaged, and on the geometry of the camera. The contribution of scattered events is described b y

Szx

eventsAs in Fig. 1.6 .3, the event   is incorrectly positioned on the detectors, and hence the effect is to add a broad background to the images. This causes errors in the radiotracer concentration by misplacing-events during reconstruction. Therefore, scattered coincidences degrade both image quality (due to loss of contrast) and quantitative accuracy .

Scattering  in PET can  arise from  three major  sources  namely  inside  the  object, detector  itself, the gantry and  surrounding  environment this also depends on  other factors   such  as object size, density, acceptance  angle,  energy discriminator settings , radiotracer  distribution, etc.  Scattered events can be reduced by using   inter-plane septa and also applying a simple energy   threshold.

Multiple Events 

These are mainly triple detection events. Multiple (or triple) events are similar to random events, except that three events from two annihilations are detected within the coincidence timing window. Due to the ambiguity in deciding which pair of events arises from the same annihilation, the event is disregarded. Again, multiple event detection rate is a function of count rate;

Multiple coincidences occur when more than two photons are detected in different detectors within the coincidence resolving time. In this situation, it is not possible to determine the LOR to which the event should be assigned, and the event is rejected. Multiple coincidences can also cause event   miss-positioning.

Point rayHistorical Background of a PET

The idea of PET technology was first evolved when the nature of the positron and the positron decay was known. Positron was first experimentally discovered   by Paul AM Dirac and Carl Anderson in 1932. For their contributions to the discovery of the positron they  won Nobel prizes.

PET is a relatively recent technology, but the principle has been understood for half a century. In the development of PET technology, many scientists from various disciplines have been involved  for more than 50 years. The first application of PET  technology in medicine was  made at  Massachusetts General Hospital (MGH) in  l951 using a simple brain prove  and  two  opposite  NaI (TI) detectors.

lmage reconstruction techniques for  single  photon  tomography developed  in the early 1960s  and about a decade later Chesler of MGH physics group developed the filtered  back projection ( FBP) technique. The first commercial PET scanners were developed in the late 1960’s and used analog electronics to generate tomographic (sliced) images

In 1961, James Robertson and his associates at Brookhaven National Laboratory built the first single-plane PET scan, nicknamed the “head-shrinker’’.

The RAH (RoyalAdelaideHospital’s) investigated this technology in 1968 for bone scanning, but found it too slow and inefficient for clinical use, and difficult to source the isotope.

In the 1970s PET scanning was formally introduced to the medical community and it soon became clear to many of those involved in PET development that a circular or cylindrical array of detectors was the logical next step in PET instrumentation and more sensitive detectors and tomographic capabilities began to appear. The first commercial PET scanner, the ECAT II, introduced in the late 1970s, was capable of brain imaging and could accommodate the torso of a narrow patient .

Although many investigators took this approach, James Robertson and Z.H. Cho were the first to propose a ring system that has become the prototype of the current shape of PET. At that time it was seen as an exciting new research modality that opened doors through which medical researchers could watch, study, and understand the biology of human disease. These scanners were still limited to single regions, but improvements continued, with better   resolution, and  movement from the research area to clinical use.

The first ring tomography was built at Brookhaven National Laboratory in 1973(Robertson JS 1973) and also Michael E Phelps built his first PET tomography, known as PETT I, at WashingtonUniversity in the same year. These first two efforts were unsucce in producing   proper reconstructed images due to lack of various correction techniques. Later on, Phelps and Holfman presented their design of a hexagonal array of 24 NaI (TI) detectors with some correction techniques and image reconstruction algorithms.

In 1973-74, Phelps and his team built a scanner with a diameter of 50 cm which had 24 NaI (TI) detectors known as PETT Il. In late 1974, Mike Phelps and Ed Hoffman at WashingtonUniversity built another scanner with the same diameter for human studies, known as PET III, using 48 NaI (TI) detectors. The scanner provided all the correction  techniques  and an image reconstruction algorithm and a dedicated computer which had all of these capabilities  including gantry movement. After the development of PET III, the  first  commercial  PET  scanner  was  constructed, named ECAT, using 96 NaI (TI)  detectors with a diameter of 3705mm  and was first delivered to the University of California, Los Angeles in 1976.

In 1976, the radiopharmaceutical fluorine-18-2-fluoro-2-deoxyglucose (FDG), a marker of sugar metabolism with a half-life of 110 minutes, enabled tracer doses to be administered safely to the patient with low radiation exposure. The compound was first administered to two normal human volunteers by Abass Alavi in August 1976 at the University of Pennsylvania.

Brain images obtained with an ordinary (non-PET) nuclear scanner demonstrated the concentration of FDG in that organ. Later, the substance was used in dedicated positron tomographic, scanners, to yield the modern procedure.

During the 1980s the technology that underlies PET advanced greatly. Commercial PET scanners were developed with more precise resolution and images. As a result, many of the steps required for producing a PET scan became automated and could be performed by a trained technician and experienced physician, thereby reducing the cost and complexity of the procedure. Smaller, self-shielded cyclotrons were developed, making it possible to install cyclotrons at more locations.

NaI(TI) is still widely used in nuclear medicine gamma cameras  as  standard scintillator  to detect  the 140keV gamma photons from 99mTc decay. In the detection of 511 keV annihilation photons NaI(TI)  scintillator has some disadvantages due to its low  stopping  power. .Also the manufacturer faces problems in construction due to its hygroscopic  nature. Scintillators with higher density and hence greater stopping power were investigated, including bismuth germinate oxyorthosilicate (BGO), gadolinium orthosilicate (GSO), and barium fluoride (BF), among others and to overcome the  problem bismuth  germinate (BGO) ,which has high stopping power and hence high detection efficiency for 511keV photons, was first introduced  as  a scintillator of choice for PET. The evolution of BGO for  use  in PET  was reported  in the late 1970s A commercial PET brain tomograph using a high density scintillator (BGO), with at least a tentative intended clinical market niche, was introduced in 1978 . Commercial BGO block based PET scanner have been manufactured since 1981. The recent advance of new faster scintillators such as GSO and LSO blocks  faste electronics as well as statistically-based reconstruction algorithms have significantly  improved  the performances of PET scanners for clinical studies.

The recent development of combined PET/CT scanners providing functional and anatomical information has further reduced the lengthy scanning time by avoiding the need for a transmission  scan.

Over the last several years, the major advance in this technology has been the combining of a CT scanner and a PET scanner in one device. The modern PET/CT scanner allows a study to be done in a shorter amount of time but still provides more diagnostic information. By the mid-1990’s, PET had become an important diagnostic tool. In the early 1990s, a new generation of full ring BGO commercial tomographs was introduced . Australia established its first PET facilities, including cyclotrons, in 1992 at the Royal Prince Alfred Hospital, Sydney and Austin Hospital Melbourne.

The Royal Adelaide Hospital’s Facility is the 6th dedicated PET facility in Australia and saw its first PET patient in September 2000.  The PET/CT scanner, attributed to Dr David Townsend and Dr Nutt was named by TIME Magazine as the medical invention of the year  in 2000

In March 2005 a PET scanner with integral CT was installed at the RAH. The Philips Gemini PET/CT combines a 16 slice Computerised Tomography scanner with a high resolution PET scanner to allow image fusion and improved  localization of  lesions. PET and PET/CT are widely available today. The technology is robust and provides high quality  images. Some of the earlier roadblocks to having  or using a PET or PET/CT device, such as availability of particular  radiopharmaceuticals are no longer present.

Importance of PET Scan

A PET scan is an integral part of the diagnosis, management, and treatment of serious disease. A single PET scan can provide information that once would have required many medical studies, and it can do so without the surgery or other invasive procedures that might otherwise have been required.

PET scans often reveal disease before it can be seen with other tests. Often, in addition to imaging the disease, it can provide information used to determine the most promising treatment methods. PET scans are also used to evaluate how well treatments are working and can often show significant changes far sooner than other tests.

Scintillation Detectors in PET

Scintillation detectors are the most common and successful mode for detection of 511 keV photons in PET imaging due to their good stopping efficiency and energy resolution. These detectors consist of an appropriate choice of crystal (scintillator) coupled to a photo-detector for detection of the visible light. This process is outlined in further detail in the next two sections,

  1. Scintillation Process and
  2. Crystals Used in PET.

Scintillation  Process

The electronic energy states of an isolated atom consist of discrete levels as given by the Schrodinger equation. In a crystal lattice, the outer levels are perturbed by mutual interactions between the atoms or ions, and so the levels become broadened into a series of allowed bands. The bands within this series are separated from each other by the forbidden bands. Electrons are not allowed to fill any of these forbidden bands. The last filled band is labelled the valence band, while the first unfilled band is called the conduction band. The energy gap, Eg, between these two bands is a few electron volts in  magnitude .

Electrons in the valence band can absorb energy by the interaction of the photoelectron or the Compton scatter electron with an atom, and get excited into the conduction band. Since this is not the ground state, the electron de-excites by releasing scintillation photons and returns to its ground state.

Normally, the value of Eg is such that the scintillation is in the ultraviolet range. By adding impurities to a pure crystal, such as adding thallium to pure NaI (at a concentration of ~1%), the band structure can be modified to produce energy levels in the prior forbidden region. Adding an impurity or an activator raises the ground state of the electrons present at the impurity sites to slightly above the valence band, and also produces excited states that are slightly lower than the conduction band.

Keeping the amount of activator low also minimizes the self-absorption of the scintillation photons. The scintillation process now results in the emission of visible light that can be detected by an appropriate photo-detector at room temperature. Such a scintillation process is often referred to as luminescence. The scintillation photons produced by luminescence are emitted isotropically from the point of interaction. For thallium-activated sodium iodide (NaI(Tl)), the wavelength of the maximum scintillation emission is 415 nm, and the photon emission rate has an exponential distribution with a decay time of 230 ns. Sometimes the excited electron may undergo a radiation-less transition to the ground state. No scintillation photons are emitted here and  the process is called quenching.

Crystals  used in  PET

  1.  There are various types of detectors, such as
  2. Sodium iodide doped with thallium (NaI (Tl)),
  3. Bismuth germanate Bi4Ge3O12 (BGO),
  4. Lutetium oxyorthosilicate doped with cerium Lu2SiO5: Ce (LSO),
  5. Yttrium oxyorthosilicate doped with cerium Y2SiO5: Ce (YSO),
  6. Gadolinium oxyorthosilicate doped with ceriumGd2SiO5: Ce (GSO), and
  7. Barium fluoride (BaF2).

There are four main properties of a scintillator which are crucial for its application in a PET detector. They are:

  1. The stopping power for 511 keV photons,
  2. Light output,
  3. Signal decay time, and
  4. The intrinsic energy resolution.

 The stopping power of a scintillator is characterized by the mean distance (attenuation length = 1/μ) travelled by the photon before it deposits its energy within the crystal.

A short attenuation length provides maximum efficiency in counting 5l1keV photons. A scintillator with high Zeff  and density(r) provides increased stopping power. High Z is good because it increases the probability of photoelectric interactions within the crystal to absorb all the energy .Bismuth Germanate (BGO) has been used as a PET detector of choice for the last few decades due to its high stopping power and because it possesses a relatively high Zeff  and density. Approximately, 95% of the annihilation photons undergo interaction. In a 3-cm thick BGO block detector. whereas only 36% of the photons undergo interaction within a 3-cm thick NaI detector.

The detector should have a capability of producing high light output so as to have better energy resolution(ΔE/E).The better energy resolution provides a sharp peak and hence increases the chance to discriminate against the scatter events. However, in practice it is usually impossible to identify small angle scatters in this way. In scattering through 300 a 5l I keV photon loses just l2% of its energy, so that it is not possible to discriminate scatter through angles much less than 300 using a scintillator such as BGO. Lutetium-ortho-oxysilicate (LSO) based block detectors provide high light output compared to BGO and hence allow improved energy resolution.

A high light-output scintillator affects a PET detector design in two ways:

  1. It helps achieve good spatial resolution with a high encoding ratio (ratio of number of resolution elements, or crystals, to number of photo-detectors) and
  2. attain good energy resolution.

Good energy resolution is needed to efficiently reject events which may Compton scatter in the patient before entering the detector. The energy resolution (ΔE/E) achieved by a PET detector is dependent not only upon the scintillator light output but also the intrinsic energy resolution of the scintillator. The intrinsic energy  resolution of a scintillator arises due to inhomegeneities in the crystal growth process as well as non-uniform light output for interactions within it.

 The energy resolution values given in this table are for single crystals. In a full PET system, variations between crystals and other factors such as light readout due to block geometry contribute to a significant worsening of the energy resolution. Typically, NaI (Tl)detectors in a PET scanner achieve a 10% energy resolution for 511 keV photons, while the BGO scanners have system energy resolution of more than 20%.NaI (Tl) provides very high light output leading to good energy and spatial resolution with a high encoding ratio.

The slow decay time leads to increased detector dead time and high random coincidences. A shorter scintillation decay time enables faster production of the signal after complete absorption of the photon. The fast scintillators allow the use of a narrow coincidence time window which reduces the probability of detection of random events. Another consideration in a PET detector is dead time which is a main limiting factor at high count rates. A short decay is required to process each pulse individually at high activity level. The light output of BGO is fairly poor compared to the NaI detector. B GO has a longer decay time constant, and hence increased dead time which limits the count rate performance of the scanner.LSO has a shorter decay time constant so as to have reduced dead time and allow the use of a shorter coincidence time window which is appropriate to reduce the random events at high count rates.

However, the excellent stopping power of BGO gives it high sensitivity for photon detection in PET scanners. Currently, commercially produced whole-body scanners have developed along the lines of advantages and disadvantages of these two individual scintillators. The majority of scanners employ BGO and, when operating in 2D mode, use tungsten septa to limit the amount of scatter by physically restricting the axial field-of-view imaged by a detector area. This results in a reduction of the scanner sensitivity due to absorption of some photons in the septa.

The low light output of BGO also requires the use of small   photo-multiplier tubes to achieve good spatial resolution, thereby increasing system complexity and cost. NaI(Tl)), the overall energy resolution of LSO is not as good as NaI(Tl). This is due to intrinsic properties of the crystal.

Lanthanum bromide (LaBr3) has recently been developed at Delft University and can be used as a cost effective scintillator but its only drawback is low stopping power . LaBr3 provides better energy resolution than LSO, CsF  and BaF2, and hence it allows the use of a narrow energy window to reduce scatter events. In addition, it has an improved timing characteristic that allows the use of a short coincidence timing window to reduce efficiently the random events.

Gadolinium oxyorthosilicate (GSO) scintillator has been used by some research groups for whole-body, brain and animal scanner designs . GSO scintillator has some useful physical properties for PET detectors. One advantage of GSO over LSO, in spite of a lower stopping power and light output, is its better energy resolution and more uniform light output. Commercial systems are now being developed with GSO detectors.

Extremely fast scintillators, such as BaF2, have found use in time-of-flight PET scanners during the last few years. Since BaF2 has a very low stopping power, time-of-flight scanners have a reduced sensitivity leading to lower SNR. Time-of-flight positron emission tomography (TOF PET) using CsF2, scintillator developed to a limited extent in the l980s but in scintillators such as LSO and GSO etc have recently renewed interest in TOF PET scanners among the PET research community . Table [ 1.3 ] summarizes the physical properties of some common scintillators that are currently used in various PET scanners.

Acquisition    Mode

A PET scanner is usually operated in acquisition mode . there are some scanner  which can be operated in both 2D and 3D mode by extending or retracting septa. When septa are extended the scanner allows only data for direct and adjacent planes to be collected. Septa reduce most of the scatter events and also, reduce photon flux from out side the field of view (FOV), but block many true events, and hence limit the scanner sensitivity. Septa reduces the sensitivity of the detector by 40% or more as they have significant shadowing effect on the detectors.

There are 2n-1 image planes in 2D acquisition mode. where n is the number of crystal  rings.

As the septa are retracted in 3D mode the PET detection efficiency increases by collecting all coincidence events. In 3D acquisition mode all possible LORs within the FOV are acquired. This improves the image quality even when the administered dose is relatively low and also reduces the over alls scanning time.

The large contribution of scattered events in 3D PET is the major degrading factor of image quality. Scatter from outside the field of view also contributes to the PET raw data which increases the detector dead time and the random events. In 3D PET, the scatter events may contribute 20-50% or more. whereas in 2D their contribution is usually less than l5% in a 16-ring tomography. Also, 3D acquisition mode gives a non uniform axial sensitivity profile which is 30 time higher in the centre of the scanner compared to the end planes whereas the 2D mode leads to a very nearly profile profile following a biomodal pattern . In multiring tomographs direct planes are formed between detectors in. the. same.ring.and.cross.planes.are.formed.between.neighboring.rings.in.2D.acquisition Mode.

Objective  of  this thesis work

PET is the most recent nuclear technology by which 3D functional image can be constructed of live organ. It is usually used to detect the malignant cell. At present cancer is a threat for all the people of the world. A large number of people of the world are suffering from cancer. PET can detect the malignant cell at the beginning of cancer. Till now cancer treatment are not available, which can cure a man perfectly. Usually cancer is detected at the extremum stage but PET scan can detect the malignant cell at the very early stage of cancer. Beside this PET scanner used in industrial sector to examine their products quality and also used in pharmaceuticals. So, PET scanner is very important for our modern life.

The image quality of PET scanner depends on some of its characteristics. Such as spatial resolution, sensitivity and noise equivalent count rate (NECR). When a PET scanner is installed it is necessary to check the above characteristics of PET. NECR is the most important measure of  PET scanner image quality. It is frequently used for the acceptance of testing a PET machine.

The objective of the work is to study the NECR of a nuclear PET camera. Since PET has been introduced in Bangladesh in the last 2 years, it has been renewed interest about its extremum uses with safety. As it uses the radioactive tracer, nuclear safety should be maintained properly. Keeping this in mind, this work has been intended. This work will be helpful for the people to impact proper knowledge about the uses of PET scan with safety. Besides this, it will intend the new researchers for further development about safety, which will greatly escorts to the cancer treatment in Bangladesh.

The most sophisticated part of a PET or PET-CT installation is the cyclotron. Cyclotron is one kind of charge particle accelerator. In PET imaging it requires proton rich isotopes such as 18F, 15O, etc. The Cyclotron used to produce such radioactive isotopes which are used to make the functional images of the body. So, cyclotron is mandatory for PET system.

This chapter includes various types of accelerators, circular or cyclic accelerators, cyclotron physics, history of cyclotron, principle operation of cyclotron, production of 18F isotope, etc.

Accelerator 

A particle accelerator is a device that uses electromagnetic fields to propel charged particles to high speeds and to contain them in well-defined beams.

There are two basic classes of accelerators:

  1. Electrostatic Accelerators and
  2. Oscillating field Accelerators.

Electrostatic Accelerators

Electrostatic accelerators use static electric fields to accelerate particles. A small-scale example of this class is the cathode ray tube in an ordinary old television set. Other examples are the Cockcroft–Walton generator and the Van de Graaf generator. The achievable kinetic energy for particles in these devices is limited by electrical breakdown.

Oscillating field Accelerators

Oscillating field accelerators, on the other hand, use radio frequency electromagnetic fields and circumvent the breakdown problem. This class, which development started in the 1920s, is the basis for all modern accelerator concepts and large-scale facilities. Rolf Widerøe, Gustav Ising, Leó Szilárd, Donald Kerst and Ernest Lawrence are considered as pioneers of this field, conceiving and building the first operational linear particle accelerator,[2] the betatron, and the cyclotron [59]. Because colliders can give evidence on the structure of the subatomic world, accelerators were commonly referred to as atom smashers in the 20th century . Despite the fact that most accelerators (but ion facilities) actually propel subatomic particles, the term persists in popular usage when referring to particle accelerators in general.

Linear particle accelerators

In a linear accelerator (linac), particles are accelerated in a straight line with a target of interest at one end. They are often used to provide an initial low-energy kick to particles before they are injected into circular accelerators. The longest linac in the world is the Stanford Linear Accelerator, SLAC, which is 3 km (1.9 mi) long. SLAC is an electron-positron collider.

Linar

modern superconducting, multicell linear accelerator component

Circular or cyclic accelerators

In the circular accelerator, particles move in a circle until they reach sufficient energy. The particle track is typically bent into a circle using electromagnets. Example of circular accelerator are Cyclotrons, Betatrons, Synchrotrons etc.

The advantage of circular accelerators over linear accelerators (linacs) is that the ring topology allows continuous acceleration, as the particle can transit indefinitely. Another advantage is that a circular accelerator is smaller than a linear accelerator of comparable power (i.e. a linac would have to be extremely long to have the equivalent power of a circular accelerator).

Depending on the energy and the particle being accelerated, circular accelerators suffer a disadvantage in that the particles emit synchrotron radiation. When any charged particle is accelerated, it emits electromagnetic radiation and secondary emissions. As a particle traveling in a circle is always accelerating towards the center of the circle, it continuously radiates towards the tangent of the circle. This radiation is called synchrotron light and depends highly on the mass of the accelerating particle.

Introduction to Cyclotrons

A circular particle accelerator in which charged atomic or subatomic particles generated at a central source are accelerated spirally outward in a plane perpendicular to a fixed magnetic field by an alternating electric field is known as cyclotron. A cyclotron is capable of generating particle energies between a few million and several tens of millions of electron volts [65]. It is a machine for accelerating charged nuclear particles, commonly protons, so that they may be used to probe the nuclei of target atoms. Such “atom smashers” are considered the microscopes of nuclear physics.

Cyclotrons have a single pair of hollow ‘D’-shaped plates to accelerate the particles and a single large dipole magnet to bend their path into a circular orbit. An alternating electric field between the dees continuously accelerates the particles from one dee to the other, while the magnetic field guides them in a circular path. This means that the accelerating D’s of a cyclotron can be driven at a constant frequency by a radio frequency (RF) accelerating power source.

IonAs the speed of the particles increases, so does the radius of their path, and the particles spiral outward. In this manner, a cyclotron can accelerate protons to energies of up to 25 million electron volts.

The modern cyclotron uses two hollow D-shaped electrodes held in a vacuum between poles of an electromagnet. A high frequency AC voltage is then applied to each electrode.

In the space between the electrodes an ion source produces either positive or negative ions depending on the configuration. These ions are accelerated into one of the electrodes by an electrostatic attraction, and when the alternating current shifts from positive to negative, the ions accelerate into the other electrode. Because of the strong electromagnetic field, the ions travel in a circular path. Each time the ions move from

one electrode to another they gain energy, their rotational radius increases, and they produce a spiral orbit. This acceleration continues until they escape from the electrode.

The accelerated particles are extracted from the cyclotron when they reach the end of the spiral acceleration path. This beam of accelerated subatomic particles can be used to bombard a variety of target materials to produce radioactive isotopes.

Various isotopes are used in medicine as tracers that are injected into the body and in radiation treatments for certain types of cancers. Cyclotrons are also used for research purposes in academic and industrial settings, and for positron emission tomography (PET).

The particles are injected in the centre of the magnet and are extracted at the outer edge at their maximum energy.

Cyclotrons reach an energy limit because of relativistic effects whereby the particles effectively become more massive, so that their cyclotron frequency drops out of synch with the accelerating RF. Therefore simple cyclotrons can accelerate protons only to an energy of around 15 million electron volts (15 MeV, corresponding to a speed of roughly 10% of c), because the protons get out of phase with the driving electric field.

If accelerated further, the beam would continue to spiral outward to a larger radius but the particles would no longer gain enough speed to complete the larger circle in step with the accelerating RF. To accommodate relativistic effects the magnetic field needs to be increased to higher radii like it is done in isochronous cyclotrons. A magnet in the synchrocyclotron at the Orsay proton therapy centre.

An example for an isochronous cyclotron is the PSI Ring cyclotron which is providing protons at the energy of 590 MeV which corresponds to roughly 80% of the speed of light. The advantage of such a cyclotron is the maximum achievable extracted proton current which is currently 2.2 mA. The energy and current correspond to 1.3 MW beam power which is the highest of any accelerator currently existing.

History of Cyclotron

In the nineteenth century, some physicists still labored under the theory-really, the dream of alchemists for centuries that elements could be made to transmute into other elements through chemical processes.

In 1902, Ernest Rutherford and Frederick Soddy explained the new phenomenon of radioactivity as a “transformation” of one element into another, occurring spontaneously in nature; and in 1919, Rutherford succeeded in deliberately causing transmutations by bombarding light elements with the alpha particles emitted from naturally decaying radio-elements.

Since very few of the projectile alpha particles collided with nuclei of the target atoms, the number of transmutations was relatively small. Therefore, scientists sought new ways to increase the number of projectile particles and to accelerate them to higher energies. The copious production of charged particles was the easier task, the high-voltage engineering required for acceleration proved far more difficult.

Scientists tried a number of different approaches to the acceleration problem, including a voltage multiplier circuit (Sir John Douglas Cockcroft and Ernest Walton) and an electrostatic generator (Robert J. Van de Graaff), both linear accelerators.

E. O. Lawrence and his graduate students at the University of California, Berkley tried many different configurations of the cyclotron before they met with success in 1929.

In 1930, Ernest O. Lawrence, with the help of one of his students, M. Stanley Livingston, designed and constructed the first of many magnetic resonance accelerators . where it was first operated in. Lawrence’s accelerator operated at voltages much lower than other machines, yet imparted as much or more energy to its projectiles.

 Lawrence won the Nobel Prize for Physics for his work on the cyclotron in 1939.

The D’s of Lawrence’s first cyclotron were only about 4 inches (10 cm)  in diameter. The accelerating chamber of the first cyclotron measured 5 in (12.7 cm) in diameter and boosted hydrogen ions to energy of 5-45 MeV depending on the settings. One mega electron volt (MeV) is 1.602 × 1013 Joule.

Subsequent models of 9, 11, 27, 37, and 60 inches followed, with a new model built almost every other year. These larger machines surpassed an early goal of one million electron volts projectile energy; many different types of atoms were split; and scores of new radioisotopes were identified, including the first trans-uranium elements.

The first European cyclotron was constructed in Leningrad in the physics department of the Radium Institute, headed by Vitali Khlopin. This instrument was first proposed in 1932 by George Gamow and Lev Mysovskii and was installed and running by.

Principle of operation of a Cyclotron

The cyclotron, destined to be the chief tool of nuclear physics, worked on the principle that charged particles, accelerated across a voltage gap, travel in a circular path under the influence of a magnetic field. It is used for accelerating positive ions, so that they acquire energy large enough to carry out nuclear reactions.

 If confined to a hollow disk-shaped chamber built in two D-shaped halves (called “D’s”) and if subjected to a radio-frequency voltage alternation as the particle passes from one half to the other, the particle receives two accelerations per cycle and travels at higher velocities in ever-larger circles. In a cyclotron, the positive ions cross again and again the same alternating electric field and thereby gain the energy.

An alternating electric field attracts the particles from one side of the cyclotron to the other. The cyclotron’s magnetic field, generated by the two electromagnets, bends each particle’s path into a horizontal spiral, forcing it to accelerate in order to keep up with the alternating electric field. When the particle reaches its peak acceleration it is released to collide with the desired target, producing observable nuclear reactions.CyclotonIt is based on the principle that a positive ion can acquire sufficiently large energy with a comparatively smaller alternating potential difference by making them to cross the same electric field time and again by making use of a strong magnetic field.

A positively charged particle is released at the center of the gap at time t = 0. It gets attracted towards the Dee, which is at a negative potential at that time. It enters the uniform magnetic field between the Dees perpendicularly and performs uniform circular motion in the gap. As there is no electric field inside the Dees, it moves on a circular path of radius depending upon its momentum and comes out of the Dee after completing a half circle.

As the frequency of A.C. (fA) is equal to fc, the diameter of the opposite Dee becomes negative when the particle emerges from one Dee and attracts it with a force, which increases its momentum. The particle then enters the other Dee with larger velocity and hence moves on a circular path of larger radius.

This process keeps on repeating and the particle gains momentum and hence radius of its circular path goes on increasing but the frequency remains the same. Thus the charged particle goes on gaining energy, which becomes maximum on reaching the circumference of the Dee. When the particle is at the edge, it is deflected with the help of another magnetic field, brought out and allowed to hit the target. Such accelerated particles are used in the study of nuclear reactions, preparation of artificial radioactive substances, treatment of cancer and ion implantation in solids.

Types of  Cyclotron 

Commercially available biomedical cyclotrons can be divided in four categories depending on their energy :

 Sub-Low Energy;

  • < 12MeV
  • Simens Eclipse 11MeV (RDS111)
  • IBA Molecular Cyclone 10, 10 MeV
  • GE Healthcare Minitrace, 9.5 MeV

Low energy;

  1. 15 to 20 MeV
  2. Advanced Cyclotron Systems TR-19, variable energy 13 to 19 MeV
  3. GE Healthcare PETtrace, 16.5 MeV
  4. IBA Molecular Cyclone 18, 18 MeV

Medium Energy;

  • 20 to 25 MeV
  • Advance Cyclotron Systems TR-24, 24 MeV

High Energy;

  • 25 to 30 MeV
  • Advance Cyclotron Systems TR-30, 31 MeV
  • IBA Molecular Cyclone 30, 30 MeV

Cyclotron for PET

 Medium energy cyclotron is much better than low or sub-low energy cyclotrons for clinical and research applications. Medium energy cyclotron  are much more efficient at making PET isotopes other than Fluorine. Low energy machine were basically designed to produce only fluorine. Above 20MeV the cyclotron can be used for both PET and SPECT isotopes.

Properties of cyclotron of cyclotron

Cyclotron property depends on the following parameters:

Beam

Medium and Vbariable Energy for PET, SPECT and research isotopes;

  1. Ions: Extracted (H+, D+)
  2. Accelerated (H+, D+)
  3. Ion source external                      :  ECR, polarizes IS
  4. Ion source internal                       :  hot cathode hooded arc
  5.  Norm.emittance hor./ver.              :  204/1.2 p mm mrad
  6. Phase width                                 :  160-400
  7. Energy Spread (fwhm)                 :  ~ 0.3%
  8. Beam current                               :  ~ 200mA or higher

High beam transmissios  at high current limit.

Magnetic Structure

  1. Number of symmetry period
  2.          (sectors)                                           : 4-12
  3. Radially varying sector angle               : 20-60 degrees
  4. Hill field                                           : ~2 Tesla
  5. Vally field                                         : ~0.2 Tesla

Dee Structure

  1. Number of Dees                                :  2
  2. Position                                            :  Inside the system
  3. Dee voltage (nominal)                        :  6 kW

RF System

  • Max.accel.voltage                          :  2 ×70 Kv
  • Frequenvy                                      :  5-17 MHz, 520MHz
  • Powerful vacuum system for beam transmission.

Vacuum System

  1. Low operating vacuum pressure at high current limit.
  2. Vacuum system category including the oil free pumps and low operating vacuum.

Cyclotron produced isotopes

Cyclotron produced various types of isotopes such as 18F, 11C, 13N etc. All the isotopes are used as compound radio tracer such as the name of fluorine-18 radio tracer is fluoro-deoxy-glucose and name of carbn-11 radio tracer is methionine, etc. Different types of isotopes, their tracer compound, physiological process and applications are given in the following.

Production of 18F isotope

 Introduction

Naturally occurring fluorine is monoisotopic. However a number of radioactive isotopes of fluorine such as 17F ,18F, 20F ,21F have been produced since 1930’s.All the radioactive isotope of fluorine are man made. 17F ,18F have a deficit of neutrons and decay by positron emission. 20F ,21F have surfeit  of neutrons and decay by negative beta emission. Only 18F and 20F have been used in radiotracer in chemical studies.

 Isotopes of fluorine

The half life of 20F radio isotope is 10 sec whereas the half life of 18F 110 minutes. Because of long half life 18F is very as radio tracer. However, a major limitation is that the production of 18F and the subsequent experimental work must normally be carried out within 3 or 4 half lives. The 511KeV g-photons resulting from the annihilation of the 0.64MeV positron decay during the decay of 18F can be easily detected using nuclear detector.

Fluorine-18 is an important   isotope in the radiopharmaceutical industry, and is primarily synthesized into fluorodeoxyglucose (FDG) for use in positron emission tomography (PET scans). It is a fluorine radioisotope which is an important source of positrons. It is substituted for hydroxyl and used as a tracer in the scan. Its significance is due to both its short half-life and the emission of positrons when decaying.

Production of 18F

Several methods have been used to produce 18F isotopes and the most commonly used methods are given in the following

In the radiopharmaceutical industry, 18F is made using either a cyclotron or linear particle accelerator to bombard a target, usually of pure or enriched oxygen-18-water

The ECAT 951/31 system, a PET scanner manufactured by Siemens (Siemens-CTI, Knoxville, TN, USA), is designed to produce cross-sectional pictures of radioactive distributions inside patients. The scanner has two bucket rings, each having 16 detector modules (four blocks in a module). All the buckets are housed in a gantry arranged in rings with 100 cm inner diameter giving a 60 cm diameter transaxial field of view (FOV) and 10.8 cm axial FOV.

The even numbered alternate detector modules from a original standard ECAT PET system were used to make the miniPET system with a diameter of 50% of the original. The size of the new geometry was reduced by about half, but the physical shape was the same as the original standard system.

The miniPET system was designed with 2 bucket rings each having 8 detector modules whereas the original system was 2 bucket rings each having 16 modules. Septa and rod sources were not included  in the miniPET, like in the standard system. Therefore, the facility of gantry movement was not available as there were no gantry drives to control the new system. To avoid problems due to the absence of gantry and gantry movement in the new system, the original ECAT software was simplified to control data acquisition directly.

This chapter includes various components of the ECAT 951 PET system and the design architecture of the miniPET.

Description to ECAT (951 series) and its various components

Various components and parameters

The scanner consist of two bucket rings, each ring has 16 detector modules. There are four blocks in a detector module. Each BGO block, viewed by four PMTs, is cut into an 8×8 array of segmented crystal elements, so the scanner has 8192 individual crystal detectors (size 6.25 mm transverse, 6.75 mm axial center-to-centre and 30 mm radial thickness /crystal depth). The BGO block provides high photopeak efficiency for the detection of 511 keV gamma rays and in the ECAT scanner the detection rate is up to 2×106 coincidence events per second.

The spatial resolution of  the ECAT 951 system is about 6 mm in the transaxial direction and 7 mm in the axial direction. All the buckets are housed in a gantry arranged in rings

with 100 cm inner diameter giving a 60 cm diameter transaxial field of view (FOV) and 10.8 cm axial FOV. The gantry allows moving the scanner, which tilts up to ±90º from the horizontal axis and rotates ±45º [7] about a vertical axis. The software allows the investigators to develop new algorithms for data acquisition, processing and clinical applications.

The Gantry of the Scanner

 The gantry is the ¢donut¢ shaped part of the scanner that houses houses the buckets and the associated detector electronics, septal ring assemblies, patient alignment lasers, connecting cables, air-cooling systems and three rotating rod sources for the purposes of testing and calibrating the scanner and performing attenuation measurements. But the main job of the gantry is to support and position the detectors perfectly. The 32 detector modules (BGO blocks plus associated bucket electronics) are mounted on the detector support plate. The support plate is joined through two trunion bearings to the main frame. The trunion bearings allow the gantry to tilt for any suitable alignment about the horizontal axis. It also provides a quiet and comfortable environment to position the patients accurately inside the scanner field of view (FOV).

Motions of Gantry

The gantry can be tilted on its bearings about the horizontal axis by up to 300 in both directions (±300) as seen in Fig. 3.1, and can also be pivoted on its base about the vertical axis by ±450. The gantry of the scanner allows the facilities of flexible motions for demanding imaging situations .The gantry allows moving of  the scanner ,which  tilts up to ±900  from the horizontal axis. The motions are driven by motors, and maintained under operator control rather than computer control, by pressing the switches located at the front side of the scanner.

The patient lies on the couch (also known as a table) is moved both in horizontal and vertical direction during examination. The patient couch of the system was designed for comfortable patient support, accurate and precise positioning. The couch top must be capable of moving at least 1800mm to allow the patient to be scanned from ‘head toe’ without having the repositioned. The couch has an adjustable head holder with tilt capability. The patient platforms movement is controlled by computer control and a  dc motor used for its movements. The couch is able  to move in the horizontal direction up to 129 cm and from 75 cm to 104 cm in vertical direction.

Architecture of a the miniPET

Architecture of the miniPET is almost similar as the standard ECAT 951 system. The number of components used in miniPET is half of the components of ECAT 951. Such as instead of 36 detector modules 16 detector modules are used in miniPET. This section

concentrates on the necessary changes for the new scanner design, internal cable connections between various hardware components, operating mode, and coincidence combinations among the detector modules, etc.

The miniPET Scanner Design 

The complete miniPET scanner was designed using 16 detector modules (“buckets”) arranged in two rings. The detector modules were mounted on a horizontal wooden table. The wooden table was used to support the modules as the system had no gantry.

Four blocks, each block (4 PMTs plus crystal matrix) having 64 distinct crystal elements, together with the associated readout electronics comprise one detector module. Therefore, the miniPET system was a 16 ring tomograph having 4096 individual crystal detectors. The axial and transaxial field of view (FOV) of the camera were 10.8 cm and 20 cm diameter.

Shows the layout of the new miniPET camera, where the acquisition and processing units are not included. In the Figure the connecting cables are clearly seen and the functions of the cables are described in the following section. The technical characteristics of the scanner are summarised in

There are many cables required to complete the complicated PET system. Various cables used in different purposes. Four cables are connected to each detector module, these are given bellow.

Clock cable – is used by the detector module to communicate with clock and computer to receive commands, return status information and get timing information.

Data cable –The data cable must be connected to the correct connector on the ring receiver. In miniPET only even  numbered buckets are used, and cables are connected to alternate inputs of the ring receiver.. The data cable also connections between the ring receiver 2 and the upper bucket ring of the system.

PS cable – the power supply (PS) cable is used to supply +5V/-5V to the electronics circuits in the bucket.

HV cable – the high voltage (HV) cable supplies 1500V to the PMTs to accelerate the photoelectrons to the anodes.

Acquisition Mode 

Data acquisition in 2D or 3D mode are possible in the miniPET system by installing the ring differences in the software program. The miniPET scanner  perform all the experiment in 2D mode without any septa. The ring difference is  smaller than or equal to three. i.e.(ring difference ≤3). Thirty one  image planes are formed  in total in the scanner. Among these, 16 direct planes were formed from LORs with ring difference equal to 0 or 2 and 15 cross planes were formed from LORs with ring difference equal to 1 or 3.

Coincidence Issues among the Buckets

In the miniPET camera, the same coincidence combinations as in the original scanner are used, so that each detector module is in coincidence combination with the 6 opposite modules. Of these 6, 3 modules are in the same bucket ring and the remaining 3 are in the other bucket ring Examples of coincidence combinations recorded among the detector modules of the camera are as follows:

Lower Ring Combinations 

Bucket 0 is in coincidence combination with the detector buckets 6, 8, 10 and bucket 4 with the buckets

Upper Ring Combinations

Bucket 16 is in coincidence combination with the detector buckets 22, 24, 26 and bucket 20 with the buckets.

Combinations for Cross Rings

Bucket 0 in the lower ring is in coincidence combination with detector buckets 22, 24, 26 in the upper ring. Similarly, bucket 4 (in the lower ring) is in coincidence with the buckets 26, 28, 30 (in the upper ring).

The detector bucket 16 in the upper ring is in coincidence combination with the buckets 6, 8, 10 (in the lower ring), bucket 20 (in the upper ring) with the buckets 10, 12, 14 in the lower ring. So, the number of coincidence combinations in one ring is (8×3)/2 = 12. Therefore, the total number of coincidence combinations in the miniPET camera, i.e., four combinations of rings is

                                     12×4 = 48.

 The miniPET Detector System

The miniPET scanner has 4096 individual small crystal detectors which yields 256 detectors in each of 16 axial crystal rings, 64 BGO blocks grouped in 16 detector modules arranged in two buckets rings on the system gantry, and 256 photomultiplier tubes (PMTs). The detailed parameters of the detector system are described separately in the following sections.

BGO Crystal Detector

In the miniPET scanner, bismuth germanate (BGO) crystal is used as a scintillation detector in the form of blocks which are cut into an 8×8 array of crystal elements [Fig. 3.2]. The dimensions of each distinct crystal element are 6.25 mm transverse × 6.75 mm axial (center-to-center spacing) × 30 mm radial (crystal depth).  The slots between crystals are approximately 0.6 mm wide. The detailed characteristics of the BGO scintillation crystal are shown in

Electronics of the Bucket

 The electric signals from the photomultipliers in each block are analyzed for position, time and energy by the bucket electronics, and eventually transferred to the ring receiver for further processing. Three types of “Board” are assembled in each detector module: 1) Analog Signal Processor, 2) Position Energy Processor, and 3) Bucket Controller.

The complete miniPET scanner was designed using 16 detector modules (“buckets”) arranged in two rings. The detector modules were mounted on a horizontal wooden table. The wooden was used to support the modules as the system had no gantry.

NEC was first introduced by Strother et al and was derived from the noise-equivalent-quanta concept, which originates from conventional photographic imaging. Briefly, noise-equivalent quanta describe the equivalent number of quanta or counts required by an ideal imaging system to produce the same noise characteristics as does an actual system that is degraded by noise.

In positron emission tomography (PET), the concept of noise equivalent count rate (NEC) is a measure of image quality. Where NEC describes the equivalent coincidence counting rate that would have the same noise properties as the net true counting rate, corrected for spurious coincidences arising from 2 particular sources: random (accidental) coincidences and scattered events.

NEC is fairly straightforward to measure and has become a standard metric for scanner performance provided by manufacturers and determined as part of acceptance testing for new equipment. NEC is most frequently (or invariably, in the case of acceptance testing) computed using a standard test object. NEC rate used to understand the scanner performance under a wide range of imaging situations, and enables comparisons of count rate taking into account the statistical noise due to scattered and random events. The axial extent of the test object has a large impact on NEC , that varies considerably with scanner design and acquisition mode. According to Watson et al and previously by Lartizien et al. and Townsend et al. the NEC varies for a single patient at different axial positions during a whole-body scan.

Noise Equivalent Count Rate NECR (or NEC rate) is one of the important characteristics of PET/CT instrument. Higher the NEC value indicates better the PET image quality.It has

been shown that the signal-to-noise ratio in the images reflects the global signal-to-noise ratio which, is related to the NEC. Count rate performance can be determined by calculating the noise equivalent count rate (NEC). Due to scatter and randoms in the measured PET data, it is not easy to compare different scanners or the same system operating under different acquisition modes. The noise equivalent count rate is defined as the rate of true coincidences which would (in the absence of randoms and scatters) give rise to the same noise level in the data.  Before the optimum use of a new system it is necessary to measure the scanner characteristics as a function of count rate. The general formula to calculate the NEC rate is

Necwhere T, S and R are the true, scatter and random rates respectively. The parameter k is the randoms correction factor with a value of 1 or 2 depending on the randoms correction method.

 The value k=1 is used when the randoms contribution is estimated from the singles count rates. A value of 2 is used when randoms are measured using a delayed coincidence window, as in the present work, to account for the additional noise due to the subtraction.

In the work, true, scatter and random events  were measured aiming to test the camera NECR characteristics by taking into account the statistical noise. After designing a PET camera, it is necessary to measure its various characteristics performance.

Materials and Method

To measure the noise equivalent count rate of the system, the same 10 cm diameter polyethylene cylindrical phantom was considered as used previously for the scatter fraction measurement.

The phantom was filled with 1000 ml water and mixed with 18F having radioactivity 240 MBq. The cylinder was shaken to uniformly mix the 18F radio isotope into the water. Then the phantom placed at the centre of the scanner. A set of 300 seconds scans was acquired every half hour. These scans were continued for almost 16 hrs.

Randoms were estimated by introducing delay into the coincidence circuit which was an extra 100 ns time delay. Multiples were recorded simultaneously with the prompt and delayed events. The unscattered (True) + scattered events were calculated as the difference between prompt and (random + multiple) events as the formula: T* = [P – (R + M)], where T* is the unscattered plus scattered coincidence rate. Scattered and true coincidences were separated from the formulae: S = T* × (SF) and T = T* × (1–SF), using the formula of scatter fraction,             we have the value of S=20.63% OF S+T.So, S=.2063 and T=0.7937 from analysis of the sinograms from the scatter phantom. Finally, the noise equivalent count rate was calculated from the above NEC formula (Eqn.4.1). Data Acquisition and Analysis

After positioning the phantom at centre of the scanner the experiment were reapeted for 19 times. NECR or NEC  was calculated from the file named as June26cyl1 at 300sec at 11:45am

Data

NweAll the calculations were repeated 19 times following the calculation of We determine nineteen NEC values and corresponding true, scatterd, random and multiple count rate. All the values are given in the following table.

Hh

Categories
EEE

Lan System and Security System in China-Bangla Group

This internship report is an exclusive study of the works in the department    of LAN system & Security Solution in china-Bangla Group. The main purpose of this report is to get the practical experience through observing the system operations works at China-Bangla Group.

These three months of internship at China-Bangla has helped me a lot to understand about the practical working environment in a networking system. This report describes backbone LAN along with the implementation; infrastructure and functioning of the various network elements in general. The report also focused on the works of the intelligent Network. Thus my report will be combination of different aspects of the client deals and operations under general working activities and a comprehensive view IT division. An effort has been made to identify some problems and prospects and to provide recommendation for solving those problems as an intern. I will be describing my duties, activities and knowledge gained from the experiences.

All the observation which is made through the internee period that has been reflected in this report which proper analysis based on theory and practical experience.

Objectives

The objective of this internship was to gain experience and knowledge regarding the existing cellular services and to co-relate the theoretical background learned university courses with the practical working environment. In the field of engineering, concepts at application level provide a useful supplement to relevant theories and understandings. This program also bring out more information of official decorum and also fulfill the academic requirement for the under graduate program. Internship gives us the opportunity to learn how to cope up with the real corporate world and also to learn the teamwork.

Report objective

The objective of this report is to represent the experience and outcomes gathered during the internship in a formal context. This report discusses for the fact that this writer performed his internship in the Regional Operation Division of China-Bangla Group. The report is arranged in chapters which are laid out in a manner so that the report provides the reader with sufficient background information of works of all the wings of system operation and for the understanding of rather advanced discussions and further discussions along with the supporting figures are also given at places so that they complement the text and aid its understanding.

Company Profile

China-Bangla Group. Is a Real Estate Company, started with a few land in INANI at the world famous longest and unbroken Sea beach in Cox’s Bazar.Bying a land in a good location is the best decision you make in your life and to avoid any problem and risk with buying lands we are the right person in the right time. We are looking for that hardworking person who is really working for the tourist in different standard hotels with small salary and having a dream of making hotel after a certain time in their life. For it’s easy to buy a land of 1 biga or more to build up a project of tourist entertainment.

Your small investment today will be smart returns in the near future.

Introduction to WLAN

Despite the productivity, convenience and cost advantage that WLAN offers, the radio waves used in wireless networks create a risk where the network can be hacked. This section explains three examples of important threats: Denial of Service, Spoofing, and Eavesdropping

WLAN Components

In this kind of attack, the intruder floods the network with either valid or Invalid messages affecting the availability of the network resources. Due to the nature of the radio  transmission, the WLAN are very vulnerable Against denial of service attacks. The relatively low bit rates of WLAN can easily be overwhelmed and leave them open to denial of service attacks . by using a powerful enough transceiver, radio interference can easily Be generated that would unable WLAN to communicate using radio path

Access Points

Access Point (AP) is essentially the wireless equivalent of a LAN hub. It is typically connected with the wired backbone through a standard Ethernet Cable, and communicates with wireless devices by means of an antenna. An AP operates within a specific frequency spectrum and uses 802.11 standard specified modulation techniques. It also informs the wireless Clients of its availability, and authenticates and associates wireless clients to the wireless network.

Network Interface Cards (Nicks)/client adapters

Wireless client adapters connect PC or workstation to a wireless network either in ad hoc peer-to-peer mode or in infrastructure mode with Apes (will be discussed in the following section). Available in PCMCIA (Personal Computer Memory Card  international Association) card and PCI (Peripheral Component Interconnect), it connects desktop and mobile computing devices wirelessly to all network resources. The NIC scans the Available frequency spectrum for connectivity and associates it to an access point or another wireless client. It is coupled to the PC/workstation operating system using a software driver. The NIC enables new employees to be connected instantly to the network and enable Internet access in conference rooms.

WLAN Architecture

The WLAN components mentioned above are connected in certain Configurations. There are three main types of WLAN architecture: Independent, Infrastructure, and Micro cells and Roaming.

Independent WLAN

The simplest WLAN configuration is an independent (or peer-to-peer)

WLAN. It is a group of computers, each equipped with one wireless LAN NIC/client adapter. In this type of configuration, no access point is necessary and each computer in the LAN is configured at the same radio channel to enable peer-to-peer networking. Independent networks can be set up whenever two or more wireless adapters are within range of each other. Figure 1 shows the architecture of Independent WLAN.

Infrastructure WLAN

Infrastructure WLAN consists of wireless stations and access points. Access Points combined with a distribution system (such as Ethernet) support the creation of multiple radio cells that enable roaming throughout a facility. The access points not only provide communications with the wired network but also mediate wireless network traffic in the immediate neighborhood. This network configuration satisfies the need of large-scale networks arbitrary coverage size and complexities. Figure 2 shows the architecture of Infrastructure WLAN

 Infrastructure WLAN

Micro cells and Roaming

The area of coverage for an access point is called a “micro cell’. The installation of multiple access points is required in order to extend the WLAN range beyond the coverage of a single access. One of the main benefits of WLAN is user mobility. Therefore, it is very important to ensure that users can move seamlessly between access points without having to log in again and restart their applications. Seamless roaming is only possible if the access points have a way of exchanging information as abuser connection is handed off from one access point to another. In a setting with overlapping micro cells, wireless nodes and access points frequently check the strength and quality of transmission. The WLAN system hands off roaming users to the access point with the strongest and highest quality signal, in accommodating roaming from one micro cell to another. Figure 3 shows the architecture of Micro cells and Roaming.

Micro cells and Roaming.

 Security Threats of WLAN

Despite the productivity, convenience and cost advantage that WLAN offers, the Radio waves used in wireless networks create a risk where the network can be hacked. This section explains three examples of important threats: Denial of Service, Spoofing, and Eavesdropping.

Denial of Service

In this kind of attack, the intruder floods the network with either valid or invalid messages affecting the availability of the network resources. Due to the nature of the radio transmission, the WLAN are very vulnerable against denial of service attacks. The relatively low bit rates of WLAN can easily be overwhelmed and leave them open to denial of service attacks. By using a powerful enough transceiver, radio interference can easily Be generated that would unable WLAN to communicate using radio path.

Spoofing and Session Hijacking

This is where the attacker could gain access to privileged data and Resources in the network by assuming the identity of a valid user. This happens because 802.11 networks do not authenticate the source Address, which is Medium Access Control (MAC) address of the frames. Attackers may therefore spoof MAC addresses and hijack sessions. Moreover, 802.11 do not require an Access Point to prove it is actually an AP. This facilitates attackers who may masquerade as AP’s. In eliminating spoofing, proper authentication and access control mechanisms need to be placed in the WLAN.

Eavesdropping

This involves attack against the confidentiality of the data that is being transmitted across the network. By their nature, wireless LANs intentionally radiates network traffic into space. This makes it impossible to control who can receive the signals in any wireless LAN installation. In the wireless network, eavesdropping by the third parties is the most significant threat because the attacker can intercept the transmission over the air from a distance, away from the premise of the company.

Wired Equivalent Privacy

Wired Equivalent Privacy (WEP) is a standard encryption for wireless networking. It is a user authentication and data encryption system from IEEE 802.11 used to overcome the security threats. Basically, WEP provides security to WLAN by encrypting the information transmitted over the air, so that only the receivers who have the correct encryption key can decrypt the information. The following section explains the technical functionality of WEP as the main security protocol for WLAN.

 How WEP Works?

When deploying WLAN, it is important to understand the ability of WEP to Improve security. This section describes how WEP functions accomplish the level of privacy as in a wired LAN. WEP uses a pre-established shared secret key called the base key, the RC4 encryption algorithm and the CRC-32 (Cyclic Redundancy Code) checksum algorithm as its basic building blocks. WEP supports up to four different base keys, identified by Keyed 0 thorough 3. Each of these base keys is a group key called a default key, meaning that the base keys are shared among all the members of a particular wireless network. Some implementations also support a set of nameless per-link keys called key-mapping keys. However, this is less common in first generation products, because it implies the existence of a key management facility, which WEP does not define. The WEP pacification does not permit the use of both key-mapping keys and default keys simultaneously, and most deployments share a single default key across all of the 802.11 devices. WEP tries to achieve its security goal in a very simple way. It operates on MAC Protocol Data Units (Medusa), the 802.11 packet fragments. To protect the data in an MPDU, WEP first computes an integrity check value (ICV) over to the MPDU data. This is the CRC-32 of the data. WEP appends the ICV to the end of the data, growing this field by four bytes. The ICV allows the receiver to detect if data has been corrupted in flight or the packet is an outright forgery. Next, WEP selects a base key and an initialization vector (IV), which is a 24-bit value. WEP constructs a per-packet RC4 key by concatenating the IV value and the selected shared base key. WEP then uses the per-packet key to RC4, and encrypt both the data and the ICV. The IV and Keyed identifying the selected key are encoded as a four-byte string and pre-pended to the encrypted data.

How to Use WEP Parameters:

WEP data encryption is used when the wireless devices are configured to operate in Shared Key authentication mode. There are two shared key methods implemented in most commercially available products, 64-bit and 128-bit WEP data encryption. Before enabling WEP on an 802.11 network, you must first consider what type of encryption you require and the key size you want to use. Typically, there are three WEP Encryption options available for 802.11 products:

Do Not Use WEP: The 802.11 network does not encrypt data. For authentication purposes, the network uses Open System Authentication.

Use WEP for Encryption: A transmitting 802.11 device encrypts the data portion of every packet it sends using a configured WEP key. The receiving 802.11g device decrypts the data using the same WEP key. For authentication purposes, the 802.11g network uses Open System Authentication.

 • Use WEP for Authentication and Encryption: A transmitting 802.11 device encrypts the data portion of every packet it sends using a configured WEP key. The receiving 802.11 device decrypts the data using the same WEP key. For authentication purposes, the 802.11 network uses Shared Key Authentication.

The IEEE 802.11 standard defines the WEP base key size as consisting of 40 Bits, so the per-packet key consists of 64 bits once it is combined with the IV. Many in the 802.11 community once believed that small key size was a security problem, so some vendors modified their products to support a 104-bit base key as well. This difference in key length does not make any different in the overall security. An attacker can compromise its privacy goals with comparable effort regardless of the key size used. This is due to the vulnerability of the WEP construction which will be discussed in the next section.

WEP Authentication

The 802.11 standard defines several services that govern how two 802.11 devices communicate. The following events must occur before an 802.11 station can communicate with an Ethernet network through an access point such as the one built in to the NETGEAR product: . Turn on the wireless station. . The station listens for messages from any access points that are in range. . The station finds a message from an access point that has a matching SSID. . The station sends an authentication request to the access point. . The access point authenticates the station. . The station sends an association request to the access point. . The access point associates with the station. 8. The station can now communicate with the Ethernet network through the access point. An access point must authenticate a station before the station can associate with the access point or communicate with the network. The IEEE 802.11 standard defines two types of WEP authentication: Open System and Shared Key. • Open System Authentication allows any device to join the network, assuming that the device SSID matches the access point SSID. Alternatively, the device can use the “ANY” SSID option to associate with any available access point within range, regardless of its SSID.

WPA Wireless Security

Wi-Fi Protected Access (WPA) is a specification of standards-based, interoperable security enhancements that increase the level of data protection and access control for existing and future wireless LAN systems. The IEEE introduced the WEP as an optional security measure to secure 802.11g (Wi-Fi) WLANs, but inherent weaknesses in the standard soon became obvious. In response to this situation, the Wi-Fi Alliance announced a new security architecture in October 2002 that remedies the shortcomings of WEP. This standard, formerly known as Safe Secure Network (SSN), is designed to work with existing 802.11 products and offers forward compatibility with 802.11i, the new wireless security architecture being defined in the IEEE. WPA offers the following benefit.

• Enhanced data privacy • Robust key management • Data origin authentication • Data integrity protection Starting in August of 2003, all new Wi-Fi certified products had to support WPA, and all existing Wi-Fi certified products had one year to comply with the new standard or lose their Wi-Fi certification. NETGEAR has implemented WPA on client and access point products. As of August 2004, all Wi-Fi certified products must support WPA.

What are the Key Features of WPA Security?

 The following security features are included in the WPA standard: • WPA Authentication • WPA Encryption Key Management – Temporal Key Integrity Protocol (TKIP) – Michael message integrity code (MIC) – AES Support • Support for a Mixture of WPA and WEP Wireless Clients These features are discussed below. WPA addresses most of the known WEP vulnerabilities and is primarily intended for wireless infrastructure networks as found in the enterprise. This infrastructure includes stations, access points, and authentication servers (typically Remote Authentication Dial-In User Service servers, called RADIUS servers). The RADIUS server holds (or has access to) user credentials (for example, user names and passwords) and authenticates wireless users before they gain access to the network. The strength of WPA comes from an integrated sequence of operations that encompass 802.1X/ EAP authentication and sophisticated key management and encryption techniques. Its major operations include:

Network security capability determination. This occurs at the 802.11 level and is communicated through WPA information elements in Beacon, Probe Response, and (Re) Association Requests. Information in these elements includes the authentication method (802.1X or Pre-shared key) and the preferred cipher suite (WEP, TKIP, or AES, which is Advanced Encryption Standard). The primary information conveyed in the Beacon frames is the authentication method and the cipher suite. Possible authentication methods include 802.1X and Pre-shared key. Pre-shared key is an authentication method that uses a statically configured passphrase on both the stations and the access point. This removes the need for an authentication server, which in many home and small office environments is neither available nor desirable. Possible cipher suites include: WEP, TKIP, and AES. We say more about TKIP and AES when addressing data privacy below.

Authentication. EAP over 802.1X is used for authentication. Mutual authentication is gained by choosing an EAP type supporting this feature and is required by WPA. The 802.1X port access control prevents full access to the network until authentication completes. The 802.1X EAPOL-Key packets are used by WPA to distribute per-session keys to those stations successfully authenticated.

Weaknesses of WEP

WEP has undergone much scrutiny and criticism that it may be compromised.

What makes WEP vulnerable? The major WEP flaws can be summarized into

Three categories.

No forgery protection

There is no forgery protection provided by WEP. Even without knowing the

Encryption key, an adversary can change 802.11 packets in arbitrary, undetectable ways, deliver data to unauthorized parties, and masquerade as an authorized user. Even worse, an adversary can also learn more about the encryption key with forgery attacks than with strictly passive attacks.

No protection against replays

WEP does not offer any protection again replays. An adversary can create

Forgeries without changing any data in an existing packet, simply by recording WEP packets and then retransmitting later. Replay, a special type of forgery attack, can be used to derive information about the encryption key and the data it protects.

Reusing initialization vectors

By reusing initialization vectors, WEP enables an attacker to decrypt the Encrypted data without the need to learn the encryption key or even resorting to high-tech techniques. While often dismissed as too slow, a patient attacker can compromise the encryption of an entire network after only a few reports done by a team at the University of California’s computer science department presented the insecurity of WEP which expose WLAN to several types of security breaches. The ISAAC (Internet Security, Applications, Authentication and Cryptography) team which released the report quantifies two types of weaknesses in WEP. The first weakness emphasizes on limitations of the initialization Vector (IV). The value of the IV often depends on how vendor

Chose to implement it because the original 802.11 protocol did not specify how this value is derived. The second weakness concerns on RC4’s Integrity Check Value (ICV), a CRC-32 checksum that is used to verify whether the contents of a frame have been modified in transit. At the time of encryption, this value is added to the end of the frame. As the recipient decrypts the packet, the checksum is used to validate the data. Because the ICV is not encrypted, however, it is theoretically possible to change the data payload as long as you can derive the appropriate bits to change in the ICV as well. This means data can be tampered and falsified.

 Practical Solutions for Securing WLAN

Service Set Identifier (SSID) is a unique identifier attached to the header of packets sent over a WLAN that acts as a password when a mobile device tries to connect to a particular WLAN. The SSID differentiates one WLAN from another, so all access points and all devices attempting to connect to a specific WLAN must use the same SSID. In fact, it is the only security mechanism that the access point requires to enable association in the absence of activating optional security features. Not changing the default SSID is one of the most common security mistakes made by WLAN administrators. This is equivalent to leaving a default password in place.

 Changing Default SSID

A VPN is a much more comprehensive solution in a way that it authenticates users coming from an entrusted space and encrypts their communication so that someone listening cannot intercept it. Wireless AP is placed behind the corporate firewall within a typical wireless implementation. This type of implementation opens up a big hole within the trusted network space. A secure method of implementing a wireless AP is to place it behind a VPN server. This type of implementation provides high security for the wireless network implementation without adding significant overhead to the users. If there is more than one wireless AP in the organization, it is recommended to run them all into a common switch, then connecting the VPN server to the same switch. Then, the desktop users will not need to have multiple VPN dial-up connections configured on their desktops. They will always be authenticating to the same VPN server no matter which wireless AP they have associated with. Figure 5 shows secure method of implementing a wireless AP.

Securing a wireless AP

Utilize Static IP

By default, most wireless LANs utilize DHCP (Dynamic Host Configuration

Protocol) to more efficiently assign IP addresses automatically to user devices. A problem is that DHCP does not differentiate a legitimate user from a hacker. With a proper SSID, anyone implementing DHCP will obtain an IP address automatically and become a genuine node on the network. By disabling DHCP and assigning static IP addresses to all wireless users, you can minimize the possibility of the hacker obtaining a valid IP address. This limits their ability to access network services. On the other hand, someone can use an 802.11 packet analyzer to sniff the exchange of frames over the network and learn what IP addresses are in use. This helps the intruder in guessing what IP address to use that falls within the range of ones in use. Thus, the use of static IP addresses is not fool proof, but at least it is a deterrent. Also keep in mind that the use of static IP addresses in larger networks is very cumbersome, which may prompt network managers to use DHCP to avoid support issues.

Access Point Placement

WLAN access points should be placed outside the firewall to protect intruders from accessing corporate network resources. Firewall can be configured to enable access only by legitimate users based on MAC and IP addresses.  However, this is by no means a final or perfect solution Because MAC and IP addresses can be spoofed even though this makes it difficult for a hacker to mimic.

Minimize radio wave propagation in non-user areas

Try orienting antennas to avoid covering areas outside the physically Controlled boundaries of the facility. By steering clear of public areas, such as parking lots, lobbies, and adjacent offices, the ability for an intruder to participate on the wireless LAN can be significantly reduced. This will also minimize the impact of someone disabling the wireless LAN with jamming Techniques.

LAN Security:

Hubs & Switches

 LAN equipment, hubs, bridges, repeaters, routers, switches will be kept in secure hub rooms. Hub rooms will be kept locked at all times. Access to hub rooms will be restricted to I.T. Department staff only. Other staff, and contractors requiring access to hub rooms will notify the I.T. Department in advance so that the necessary supervision can be arranged.

Workstations

Users must logout of their workstations when they leave their workstation for any length of time. Alternatively Windows workstations may be locked.

. All unused workstations must be switched off outside working hours.

Wiring

All network wiring will be fully documented.

All unused network points will be de-activated when not in use.

All network cables will be periodically scanned and readings recorded for future reference.

Users must not place or store any item on top of network cabling.

. Redundant cabling schemes will be used where possible.

Monitoring Software

The use of LAN analyzer and packet sniffing software is restricted to the I.T. Department.

LAN analyzers and packet snuffers will be securely locked up when not in use.

Intrusion detection systems will implemented to detect unauthorized access to the network

Servers

All servers will be kept securely under lock and key.

Access to the system console and server disk/tape drives will be restricted to authorized I.T. Department staff only.

Electrical Security

All servers will be fitted with Puss’s that also condition the power supply.

All hubs, bridges, repeaters, routers, switches and other critical network equipment will also be fitted with Puss’s.

In the event of a mains power failure, the Puss’s will have sufficient power to keep the network and servers running until the generator takes over.

Software will be installed on all servers to implement an orderly shutdown in the event of a total power failure.

All Puss’s will be tested periodically.

Inventory Management

The I.T. Department will keep a full inventory of all computer equipment and software in use throughout the Company.

Computer hardware and software audits will be carried out periodically via the use of a desktop inventory package. These audits will be used to track unauthorized copies of software and unauthorized changes to hardware and software configurations

New Standards for Improving WLAN Security

Apart from all of the actions in minimizing attacks to WLAN mentioned in the

Previous section, we will also look at some new standards that intend to improve the security of WLAN. There are two important standards that will be discussed in this paper: 802.1x and 802.11i.

802.1x

One of the standards is 802.1 as which was originally designed for wired Ethernet networks. This standard is also part of the 802.11i standard that will be discussed later. The following discussion of 802.1 as is divided into three parts, starting with the concept of Point-to-Point Protocol (PPP), followed by Extensible Authentication Protocol (EAP), and continues with the understanding of 802.1x itself. IEEE 802.1x relates to EAP in a way that it is a standard for carrying EAP Over a wired LAN or WLAN. There are four important entities that explain This standard.

 PPP

The Point-to-Point Protocol (PPP) originally emerged as an encapsulation

Protocol for transporting IP traffic over point-to-point links. PPP also established a standard for the assignment and management of IP addresses, asynchronous (start/stop) and bit-oriented synchronous encapsulation, network protocol multiplexing, link configuration, link quality testing, error detection, and option negotiation for such capabilities as network-layer address negotiation and data-compression negotiation By any measure, PPP is a good protocol. However, as PPP usage grew, people quickly found its limitation in terms of security. Most corporate networks want to do more than simple usernames and passwords for secure access . This leads to the designation of a new authentication protocol, called Extensible Authentication Protocol (EAP).

EAP

The Extensible Authentication Protocol (EAP) is a general authentication protocol defined in IETF (Internet Engineering Task Force) standards. It was originally developed for use with PPP. It is an authentication protocol that provides a generalized framework for several authentication mechanisms [15]. These include Kerberos, public key, smart cards and one-time passwords. With a standardized EAP, interoperability and compatibility across authentication methods become simpler. For example, when user dials a remote access server (RAS) and use EAP as part of the PPP connection, the RAS does not need to know any of the details about the authentication system. Only the user and the authentication server have to be coordinated. By supporting EAP authentication, RAS server does not actively participate in the authentication dialog. Instead, RAS just re-packages EAP packets to hand Off to a RADIUS server to make the actual authentication decision. How does EAP relate to 802.1 xs? The next section will explain the relation.

I Authenticator

Authenticator is the entity that requires the entity on the other end of the link to be authenticated. An example is wireless access Points.

ii. Supplicant

Supplicant is the entity being authenticated by the Authenticator And desiring access to the services of the Authenticator.

iii. Port Access Entity (PAE)

It is the protocol entity associated with a port. It may support the Functionality of Authenticator, Supplicant or both.

iv. Authentication Server

Authentication server is an entity that provides authentication Service to the Authenticator. It maybe co-located with Authenticator, But it is most likely an external server. It is typically a RADIUS (Remote Access Dial in User Service) server. The supplicant and authentication server are the major parts of 802.1 as

General topology

EAP messages are encapsulated in Ethernet LAN packets (EAPOL) to Allow communications between the supplicant and the authenticator. The Following are the most common modes of operation in EAPOL.

I. The authenticator sends an “EAP-Request/Identity” packet to the supplicant as soon as it detects that the link is active.

ii. Then, the supplicant sends an “EAP-Response/Identity” Packet to the authenticator, which is then passed to the Authentication (RADIUS) server.

iii. Next, the authentication server sends back a challenge to the authenticator, with a token password system. The authenticator unpacks this from IP and repackages it into EAPOL and sends it to the supplicant. Different authentication methods will vary this message and the total number of messages. EAP supports client-only authentication and strong mutual  authentication. Only strong mutual authentication is considered appropriate for the wireless case.

802.11i

In addition to 802.1x standard created by IEEE, one up-and-coming 802.11x specification, which is 802.11i, provides replacement technology for WEP security. 802.11i is still in the development and approval processes. In this paper, the key technical elements that have been defined by the specification will be discussed. While these elements might change, the information provided will provide insight into some of the changes that 802.11i promises to deliver to enhance the security features provided in a WLAN system.

The 802.11i specification consists of three main pieces organized into two layers. On the upper layer is the 802.1x, which has been discussed in the previous section. As used in 802.11i, 802.1 xs provides a framework for robust user authentication and encryption key distribution. On the lower layer are improved encryption algorithms. The encryption algorithms are in the form of the TKIP (Temporal Key Integrity Protocol) and the CCMP (counter mode with CBC-MAC protocol). It is important to understand how all of these three ices work to form the security mechanisms of 802.11i standard. Since the concept of 802.1 xs has been discussed in the previous section, the following section of this paper will only look at TKIP and CCMP. Both of these encryption protocols provide Enhanced data integrity over WEP, with TKIP being targeted at legacy Equipment, while CCMP is being targeted at future WLAN equipments. However A true 802.11i system uses either the TKIP or CCMP protocol for all equipments. WPA is forward-compatible with the IEEE 802.11i security specification currently under development. WPA is a subset of the current 802.11i draft and uses certain pieces of the 802.11i draft that were ready to bring to market in 2003, such as 802.1x and TKIP. The main pieces of the 802.11i draft that are not included in WPA are secure IBSS (Ad-Hoc mode), secure fast handoff (for specialized 802.11 VoIP phones), as well as enhanced encryption protocols such as AES-CCMP. These features are either not yet ready for market or will require hardware upgrades to implement.

WEP Wireless Security The absence of a physical connection between nodes makes the wireless links vulnerable to eavesdropping and information theft. To provide a certain level of security, the IEEE 802.11 standard has defined two types of authentication methods, Open System and Shared Key. With Open System authentication, a wireless computer can join any network and receive any messages that are not encrypted. With Shared Key authentication, only those computers that possess the correct authentication key can join the network. By default, IEEE 802.11 wireless devices operate in an Open System network. Recently, Wife, the Wireless Ethernet Compatibility Alliance  developed the Wi-Fi Protected Access (WPA), a new strongly enhanced Wi- Fi security. WPA will soon be incorporated into the IEEE 802.11 standard.

TKIP

The temporal key integrity protocol (TKIP) which initially referred to as WEP2, was signed to address all the known attacks and deficiencies in the WEP algorithm. According to 802.11 Planet [6], the TKIP security process begins with a 128-bit temporal-key, which is shared among clients and access points. TKIP combines the temporal key with the client machine’s MAC address and then adds a relatively large 16-octet initialization vector to produce the key that will encrypt the data. Similar to WEP, TKIP also uses RC4 to perform the encryption. However, TKIP   Changes temporal key every 10,000 packets. This difference provides a dynamic distribution method that significantly enhances the security of the network. TKIP is weaknesses in WEP security, especially the reuse of encryption keys. The following are four new algorithms and their function that TKIP adds to WEP

I. A cryptographic message integrity code, or MIC, called Michael, to defeat forgeries. ii. A new IV sequencing discipline, to remove replay attacks from the attacker’s arsenal. iii. A per-packet key mixing function, to de-correlate the public IVs from weak keys. iv. A re-keying mechanism, to provide fresh encryption and integrity keys, undoing the threat of attacks stemming from Key reuse.

CCMP

As explained previously, TKIP was designed to address deficiencies in WEP; however, TKIP is not viewed as a long-term solution for WLAN Security. In addition to TKIP encryption, the 802.11i draft defines a new Encryption method based on the advanced encryption standard (AES). The AES algorithm is a symmetric block cipher that can encrypt and Decrypt information. It is capable of using cryptographic keys of 128, 192, And 256 bits to encrypt and decrypt data in blocks of 128 bits . More robust than TKIP, the AES algorithm would replace WEP and RC4. AES based encryption can be used in many different modes or algorithms. The mode that has been chosen for 802.11 is the counter mode with CBCMAC protocol CCMP). The counter mode delivers data privacy while the CBC-MAC delivers data integrity and authentication. Unlike TKIP, CCMP is mandatory for anyone implementing 802.11i.

TCP/IP & Internet Security

. Permanent connections to the Internet will be via the means of a firewall to regulate network traffic.

Permanent connections to other external networks, for offsite processing etc., will be via the means of a firewall to regulate network traffic.

Where firewalls are used, a dual homed firewall (a device with more than one TCP/IP address) will be the preferred solution.

Network equipment will be configured to close inactive sessions.

Where modem pools or remote access servers are used, these will be situated on the DMZ or non-secure network side of the firewall.

Workstation access to the Internet will be via the Organization’s proxy server and website content scanner

All incoming e-mail will be scanned by the Organization’s e-mail content scanner.

Voice System Security

DISA port access (using inbound 0800 numbers) on the PBX will be protected by a secure password.

The maintenance port on the PBX will be protected with a secure password.

The default DISA and maintenance passwords on the PBX will be changed to user defined passwords.

. Call accounting will be used to monitor access to the maintenance port, DISA ports and abnormal call patterns.

DISA ports will be turned off during non working hours.

. Internal and external call forwarding privileges will be separated, to prevent inbound calls being forwarded to an outside line.

The operator will Endeavour to ensure that an outside call is not transferred to an outside line.

Use will be made of multilevel passwords and access authentication where available on the PBX.

Voice mail accounts will use a password with a minimum length of six digits.

The voice mail password should never match the last six digits of the phone number.

. The caller to a voice mail account will be locked out after three attempts at password validation.

Dialing calling party pays numbers will be prevented.

. Telephone bills will be checked carefully to identify any misuse of the telephone system.

Tools for Protecting WLAN

There are some products that can minimize the security threats of WLAN such as:

Air Defense™

It is a commercial wireless LAN intrusion protection and management System that discovers network vulnerabilities, detects and protects a WLAN from intruders and attacks, and assists in the management of a WLAN. Air Defense also has the capability to discover vulnerabilities and Threats in a WLAN such as rogue Apes and ad hoc networks. Apart from Securing a WLAN management functionality that allows users to understand their network, monitor network performance and enforce network policies.

Isomer Wireless Sentry

This product from Isomer Ltd. automatically monitors the air space of the Enterprise continuously using unique and sophisticated analysis technology to identify insecure access points, security threats and wireless network problems. This is a dedicated appliance employing an Intelligent Conveyor Engine (ICE) to passively monitor wireless networks for threats and inform the security managers when these occur. It is a completely automated system, centrally managed, and will integrate seamlessly with existing security infrastructure. No additional man-time is required to Operate the system.

Wireless Security Auditor (WSA)

It is an IBM research prototype of an 802.11 wireless LAN security auditor, Running on Linux on an Iraq PDA (Personal Digital Assistant). WSA helps Network administrators to close any vulnerability by automatically audits A wireless network for proper security configuration. While there are other 802.11 network analyzers such as Ethereal, Snuffer and Wampum, WSA Aims at protocol experts who want to capture wireless packets for detailed Analysis. Moreover, it is intended for the more general audience of Network installers and administrators, who want a way to easily and Quickly verify the security configuration of their networks, without having to Understand any of the details of the 802.11 protocols

Wireless Channels

 IEEE 802.11g/b wireless nodes communicate with each other using radio frequency signals in the ISM (Industrial, Scientific, and Medical) band  between 2.4 GHz and 2.5 GHz. Neighboring channels are 5 MHz apart. However, due to the spread spectrum effect of the signals, a node sending signals using a particular hannel will utilize frequency spectrum 12.5 MHz above and below the center channel frequency. As a result, two separate wireless networks using neighboring channels (for example,  channel 1 and channel 2) in the same general vicinity will interfere with each other. Applying two channels that allow the maximum channel separation will decrease the amount of channel cross-talk and provide a noticeable performance increase over networks with minimal channel separation. The preferred channel separation between the channels in neighboring wireless networks is 25 MHz (five channels). This means that you can apply up to three different channels within your wireless network. In the United States, only 11 usable wireless channels are available, so we recommended that you start using channel 1, grow to use channel 6, and add channel 11 when necessary, because these three channels do not overlap.

Wide Area Network Security

Wireless LAN’s will make use of the most secure encryption and   authentication facilities available

Users will not install their own wireless equipment under any circumstances.

Dial-in modems will not be used if at all possible. If a modem must be used dial-back modems should be used. A secure VPN tunnel is the preferred option.

Modems will not be used by users without first notifying the I.T. Department and obtaining their approval.

Where dial-in modems are used, the modem will be unplugged from the telephone network and the access software disabled when not in use.

Modems will only be used where necessary, in normal circumstances all communications should pass through the Organization’s router and firewall.

Where leased lines are used, the associated channel service units will be locked up to prevent access to their monitoring ports.

All bridges, routers and gateways will be kept locked up in secure areas.

Unnecessary protocols will be removed from routers.

The preferred method of connection to outside Organizations is by a secure VPN connection, using IPSEC or SSL.

All connections made to the Organization’s network by outside organizations will be logged.

WEP Wireless Security

The absence of a physical connection between nodes makes the wireless links vulnerable to eavesdropping and information theft. To provide a certain level of security, the IEEE 802.11 standard has defined two types of authentication methods, Open System and Shared Key. With Open System authentication, a wireless computer can join any network and receive any messages that are not encrypted. With Shared Key authentication, only those computers that possess the correct authentication key can join the network. By default, IEEE 802.11 wireless devices operate in an Open System network. Recently, Wi-Fi, the Wireless Ethernet Compatibility Alliance) developed the Wi-Fi Protected Access (WPA), a new strongly enhanced Wi- Fi security. WPA will soon be incorporated into the IEEE 802.11 standard. WEP (Wired Equivalent Privacy) is discussed below, and WPA is discussed on.

Wide Area Network Security

 The 802.11 standard defines several services that govern how two 802.11 devices communicate. The following events must occur before an 802.11 station can communicate with an Ethernet network through an access point such as the one built in to the NETGEAR product: 1. Turn on the wireless station. 2. The station listens for messages from any access points that are in range. 3. The station finds a message from an access point that has a matching SSID. 4. The station sends an authentication request to the access point. 5. The access point authenticates the station. 6. The station sends an association request to the access point. 7. The access point associates with the station. 8. The station can now communicate with the Ethernet network through the access point. An access point must authenticate a station before the station can associate with the access point or communicate with the network. The IEEE 802.11 standard defines two types of WEP authentication: Open System and Shared Key. • Open System Authentication allows any device to join the network, assuming that the device SSID matches the access point SSID. Alternatively, the device can use the “ANY” SSID option to associate with any available access point within range, regardless of its SSID. • Shared Key Authentication requires that the station and the access point have the same WEP key to authenticate. These two authentication procedures are described bell.

How Does WPA Compare to WEP?

WEP is a data encryption method and is not intended as a user authentication mechanism. WPA user authentication is implemented using 802.1x and the Extensible Authentication Protocol (EAP). Support for 802.1x authentication is required in WPA. In the 802.11 standard, 802.1 x authentications was optional. For details on EAP specifically, refer to IETF RFC 2284. With 802.11 WEP, all access points and client wireless adapters on a particular wireless LAN must use the same encryption key. A major problem with the 802.11 standard is that the keys are cumbersome to change. If you do not update the WEP keys often, an unauthorized person with a sniffing tool can monitor your network for less than a day and decode the encrypted messages. Products based on the 802.11 standard alone offer system administrators no effective method to update the keys. For 802.11, WEP encryption is optional. For WPA, encryption using Temporal Key Integrity Protocol (TKIP) is required. TKIP replaces WEP with a new encryption algorithm that is stronger than the WEP algorithm, but that uses the calculation facilities present on existing wireless devices to perform encryption operations. TKIP provides important data encryption enhancements including a per-packet key mixing function, a message integrity check (MIC) named Michael, an extended initialization vector (IV) with sequencing rules, and a re-keying mechanism. Through these enhancements, TKIP addresses all known WEP vulnerabilities.

 However, this extension of physical boundaries provides expanded access to both authorized and unauthorized users that make it inherently less secure than wired networks.

WLAN vulnerabilities are mainly caused by WEP as its security protocol. However, these problems can be solved with the new standards, such as 802.11i, which is planned to be released later this year. For the time being, WLAN users can protect their networks by practicing the suggested actions that are mentioned in this paper based on the cost and the level of security that they wish However, there will be no complete fix for the existing vulnerabilities. All in all, the very best way to secure WLAN is to have the security knowledge, proper implementation, and continued maintenance.

How Does WPA Compare to IEEE 802.11i?

 WPA is forward-compatible with the IEEE 802.11i security specification currently under development. WPA is a subset of the current 802.11i draft and uses certain pieces of the 802.11i draft that were ready to bring to market in 2003, such as 802.1x and TKIP. The main pieces of the 802.11i draft that are not included in WPA are secure IBSS (Ad-Hoc mode), secure fast handoff (for specialized 802.11 Void phones), as well as enhanced encryption protocols such as AES-CCMP. These features are either not yet ready for market or will require hardware upgrades to implement

What are the Key Features of WPA Security?

 The following security features are included in the WPA standard: • WPA Authentication • WPA Encryption Key Management – Temporal Key Integrity Protocol (TKIP) – Michael message integrity code (MIC) – AES Support • Support for a Mixture of WPA and WEP Wireless Clients These features are discussed below. WPA addresses most of the known WEP vulnerabilities and is primarily intended for wireless infrastructure networks as found in the enterprise. This infrastructure includes stations, access points, and authentication servers (typically Remote Authentication Dial-In User Service servers, called RADIUS servers). The RADIUS server holds (or has access to) user credentials (for example, user names and passwords) and authenticates wireless users before they gain access to the network. The strength of WPA comes from an integrated sequence of operations that encompass 802.1X/ EAP authentication and sophisticated key management and encryption techniques. Its major operations include:

Network security capability determination.

This occurs at the 802.11 level and is communicated through WPA information elements in Beacon, Probe Response, and (Re) Association Requests. Information in these elements includes the authentication method (802.1X or Pre-shared key) and the preferred cipher suite (WEP, TKIP, or AES, which is Advanced Encryption Standard). The primary information conveyed in the Beacon frames is the authentication method and the cipher suite. Possible authentication methods include 802.1X and Pre-shared key. Pre-shared key is an authentication method that uses a statically configured passphrase on both the stations and the access point. This removes the need for an authentication server, which in many home and small office environments is neither available nor desirable. Possible cipher suites include: WEP, TKIP, and AES. We say more about TKIP and AES when addressing data privacy below.

 • Authentication. EAP over 802.1X is used for authentication.

 Mutual authentication is gained by choosing an EAP type supporting this feature and is required by WPA. The 802.1X port access control prevents full access to the network until authentication completes. The 802.1X EAPOL-Key packets are used by WPA to distribute per-session keys to those stations successfully authenticated

Discussions

I was selected to work with IT department in Sonagon plaza, (3rd Floor)West Panthapath,Dhanmondi,Dhaka-1215.I reported to the concern manager and was sent to K.Kalam who is the Admin Director in China-Bangla Group.

This internship introduces me with the rules & regulation of an office. Being attached with LAN issues & security .Most of the critical problems are done by the LAN issues & security team & third party or local vendor’s joint venture. So the main duty of system operation is to solve the problem & supervise the vendor’s works. LAN issues & security team should be very careful about their works because if a vendor makes any mistake the responsibility goes on them. I also did some works with the Payment schedule & did of agreement team whose works is to maintain the general problems.

Before my internship I didn’t have any practical knowledge about Real Estate Company & their works. The outcome of this internship rang from learning the very basic concepts of LAN issue &security solution to analyzing the very partial and operational state of affairs like; got to the opportunity to observe LAN fault & management procures & also gathered knowledge about setup & maintenance.

The work environment of the office was very friendly. I didn’t feel like an outsider working there because all of them treated me as one of them. Through this period of my internship I asked a lot of questions queries to many of them and they answered those generously. Specially my supervisor helped me a lot and gave me idea about my future life of job. At last I want to say that I’m very fortunate to get such a great opportunity to work with such a good organization.

Conclusions

The general idea of WLAN was basically to provide a wireless network Infrastructure comparable to the wired Ethernet networks in use. It has since Evolved and is still currently evolving very rapidly towards offering fast connection Capabilities within larger areas. However, this extension of physical boundaries provides expanded access to both authorized and unauthorized users that make it inherently less secure than wired networks.

WLAN vulnerabilities are mainly caused by WEP as its security protocol. However, these problems can be solved with the new standards, such as 802.11i, which is planned to be released later this year. For the time being, WLAN users can protect their networks by practicing the suggested actions that are mentioned in this paper based on the cost and the level of security that they wish.

 Securing a wireless AP

Categories
EEE

Study on Multiple Antenna Techniques

Introduction

This chapter describes an overview of Cellular Networks and its development .And an introduction of Wimax .In this Wimax system there are many Standards .A basic architecture of Wimax .Which have point to point and point to multipoint connection .Advanced Antenna techniques which used to improve system performance. The advanced antenna systems support the variety of multi antenna solutions, such as transmit diversity, Beam forming, and spatial multiplexing, all are used in WIMAX.A simple overview on modulation techniques. For simulation we are using Binary Phase Shift Keying (BPSK) BPSK uses two phases, which are separated by 180 degree and known as two phase shift keying.

Historical Background   

Cellular communications has experienced explosive Growth in the past two decades. Today millions of people around the world use cellular phones .Cellular phones allow a person to make or receive a call from almost anywhere. Likewise, a person is allowed to continue the Phone conversation while on the move. Cellular communications is supported by an infrastructure called a cellular network, which integrates cellular phones into the Public switched telephone network. Cellular network are divided into different generations, currently 4 Gs are available.

In the 1970s, the First Generation, or 1G, mobile networks were introduced. These systems were referred to as cellular, which was later shortened to “cell”, due to the method by which the signals were handed off between towers. Cell phone signals were based on analog system transmissions, and 1Gdevices were comparatively less heavy and expensive than prior devices. Some of the most popular standards deployed for 1Gsystems were Advanced Mobile Phone System (AMPS), Total Access Communication Systems (TACS) and Nordic Mobile Telephone (NMT). The global mobile phone market grew from 30 to 50 percent annually with the appearance of the 1G network, and the number of subscribers worldwide reached approximately 20 million by 1990.

The Second Generation (2G) cellular networks started in 1990s. The first system was introduced in Europe to provide facilities of roaming between different countries. One system in the second generation is the Global System for Mobile communication (GSM). The GSM standard uses Time Division Multiple Access (TDMA) combined with slow frequency hopping. The Personal Communication Services (PCS) use IS-136 and TS-95 standards. The IS-136 standard uses TDMA, while IS-95 uses Code Division Multiple Access (CDMA). The GSM and PCS IS-136 uses data rate 9.6 Kbps. The 2G systems are Non Line of Sight (NLOS).

The 3G revolution allowed mobile telephone customers to use audio, graphics and video applications. Over 3G it is possible to watch streaming video and engage in video telephony, although such activities are severely constrained by network bottlenecks and over-usage.

One of the main objectives behind 3G was to standardize on a single global network protocol instead of the different standards adopted previously in Europe, the U.S. and other regions. 3G phone speeds deliver up to 2 Mpbs, but only under the best conditions and in stationary mode. Moving at a high speed can drop 3G bandwidth to a mere 145 Kbps.

3G cellular services, also known as UMTS, sustain higher data rates and open the way to Internet style applications. 3G technology supports both packet and circuit switched data transmission, and a single set of standards can be used worldwide with compatibility over a variety of mobile devices. UMTS delivers the first possibility of global roaming, with potential access to the Internet from any location.

The current generation of mobile telephony, 4G has been developed with the aim of providing transmission rates up to 20 Mbps while simultaneously accommodating Quality of Service (QoS) features. QoS will allow you and your telephone carrier to prioritize traffic according to the type of application using your bandwidth and adjust between your different telephones needs at a moment’s notice.

Only now are we beginning to see the potential of 4G applications. They are expected to include high-performance streaming of multimedia content. The deployment of 4G networks will also improve video conferencing functionality. It is also anticipated that 4G networks will deliver wider bandwidth to vehicles and devices moving at high speeds within the network area.

WiMAX (Worldwide Interoperability of Microwave Access)

In the mid 1990’s, telecommunication companies developed the idea to use fixed broadband wireless networks for potential last mile solutions to provide an alternate. Means to deliver Internet connectivity to businesses and individual s .Their aim was to produce a network with the speed, capacity, and reliability of a hardwired network, while maintaining with the flexibility, simplicity, and low costs of a wireless network. This technology would also act as a versatile system for corporate or institutional backhaul distribution networks and would attempt to compete with the leading Internet carriers.

The huge potential for this flexible, low cost network generated much attention to two types of fixed wireless broadband technologies: Local Multipoint Distribution Services (LMDS) and Multi-channel Multipoint Distribution Services (MMDS). LMDS was primarily intended to speed up and bridge Metropolitan Area Networks in larger corporations and on University campuses. The Fixed WiMAX (IEEE 802.16d) and Mobile WiMAX (IEEE 802.16e) are commonly used.

WIMAX Standards IEEE 

The IEEE 802.16-2001 was published in September 2001. It has the frequency range of 10-66, GHz to provide fixed broadband wireless connectivity. The single carrier modulation techniques are used in physical layer and Time Division Multiplexed (TDM) technique in MAC layer. The standard supports different Quality of Service (QoS) techniques to improve the LOS conditions.

IEEE 

This standard is the amendment of basic IEEE 802.16. The frequency range is 2-11 GHz, includes both licensed and license free bands. The NLOS communication is possible when frequency is below then 11 GHz. Orthogonal Frequency Division Multiplexing (OFDM) is used as modulation technique.

IEEE 

The standard IEEE 802.16c was published in January 2003 as an amendment to IEEE

802.16a.It uses the frequency range of 10-66 GHz. 2.2.4 IEEE 802.16d-2004 The IEEE 802.16d-2004 is also called fixed WIMAX. The IEEE 802.16d-2004 was designed for fixed bandwidth allocation (BWA) system to support multiple services and uses frequency band 10-66 GHz. The bandwidth of IEEE 802.16-2004 is 1.25 MHz.

IEEE

The IEEE 802.16e is also called Mobile BWA System. This standard is standardized for two layers, the physical layer (PHY Layer) and Medium Access Control (MAC) layer. The 802.16e uses Scalable Orthogonal Frequency Division Multiple Access (SOFDMA). It provides the higher speed internet access and can be used as a Voice over IP (VoIP) service. VoIP technologies may provide new services, such as voice chatting and multimedia chatting. The IEEE 802.16e provides support for MIMO antenna to provide good NLOS characteristics and Hybrid Automatic Request (HARQ) for good correction performance.

802.16 Protocol Stack: The 802.16 standard covers the MAC and PHY layer of Open System Interconnection (OSI) reference model. The MAC layer is responsible to determine which Subscriber Station (SS) can access the network. The MAC layer is subdivided into three layers. The three layers are service specific convergence sub layer (CS), MAC Common Part Sub layer (CPS), and security sub layer. The CS transforms the incoming data into MAC data packets and maps the external network information into IEEE 802.16 MAC information.

The CPS provides support for access control functionality, bandwidth allocation and connection establishment. The PHY Layer control, data and management information are exchanged between MAC CPS and PHY layer. The security sub layer control authentication, key exchange and encryption. The PHY Layer is responsible for data transmission and reception by using 10-66 GHz frequency.

  802.16 802.16a 802.16e
Spectrum 10-66 GHz 2-11 GHz <6 GHz
Configuration Line of Sight Non- Line of Sight Non- Line of Sight
Bit Rate 32 to 134 Mbps

(28 MHz Channel)

≤ 70 or 100Mbps

(20 MHz Channel)

Up to 15 Mbps
Modulation QPSK, 16-QAM,

64-QAM

256 Sub-Carrier

OFDM using QPSK, 16-QAM, 64-QAM, 256-QAM

Same as 802.16a
Mobility Fixed Fixed ≤ 75 MPH
Channel Bandwidth 20, 25, 28 MHz Selectable 1.25 to 20 MHz 5 MPH (Planned)
Typical Cell Radius 1-3 miles 3-5 miles 1-3 miles
Completed Dec, 2001 Jan, 2003 2nd Halfof 2005

 Table : Wimax Standard

Technical Information

Technical information of WIMAX is given below.

MAC layer

In MAC layer all SS pass data through a wireless access point. The 802.16 MAC layer uses a scheduling algorithm for which subscriber station needs to complete only one initial entry into the network. After network entry, the subscriber station is allocated an access slot by the base station. The time slots are assigned to the subscriber station. These time slots can enlarge and contract. In addition to being stable under overload and over subscription, the scheduling algorithm can also be more bandwidth efficient. The scheduling algorithm allows the base station to control QoS parameters by balancing the time slots according to the need of subscriber stations.

 Physical layer

The PHY Layer is responsible for slot allocation. Slots have one sub channel and one, two or three OFDM symbols depending upon which channel scheme is used.  The channel schemes Frequency Division Duplex (FDD) and Time Division Duplex (TDD) are used. It has features support for MIMO antennas and provide NLOS. In PHY Layer of WiMAX data rate varies based on the operating parameters. The OFDM guard time and over sampling rate have good impact. By using multiple antennas at the transmitter and receiver we can further increase the peak rate in multi path channels.

Physical Layer Interfaces: PHY Layer of IEEE 802.16 has the following interfaces:

1. Wireless MAN-SC2: The WirelessMAN-SC2 uses single carrier modulation technique and has frequency range 10-66 GHz.

2. Wireless MAN-OFDM: It is based on OFDM modulation with 256-point fast Fourier transform (FFT) within TDMA channel access provide NLOS transmission in the frequency band of 2-11 GHz.

3. Wireless MAN-OFDMA: It uses the licensed frequency band of 2-11 GHz. It supports the NLOS operation by using the 2048 points of FFT.

4. Wireless HUMAN: The Wireless HUMAN uses license free frequency band below 11GHz. It can also use any air interface that have 2-11 GHz frequency band.

PHY Interface Duplexing Techniques Frequency Band Modulation Propagation Mode
Wireless MAN-SC2 FDD and TDD 10-66 GHZ Single Carrier LOS
Wireless MAN-OFDM TDD and FDD 2-11 GHZ OFDM NLOS
Wireless MAN-OFDMA TDD and FDD 2-11 GHZ 2048 FFT point NLOS
Wireless HUMAN TDD 2-11 GHZ SC,OFDM,OFDMA NLOS

Table: WiMAX PHY Layer Interface Characteristics

WiMAX Network Architectures

The MAC layer supports two modes, mesh and PMP (Point to Multi point). The BS (Base Station) communicates with several SSs using PMP mode and share uplink and down link channel information. All the SSs need to have a clear LOS to the BS in PMP mode.  In mesh mode BS consist of net, Relay Stations (RSs), Subscriber Station and Mobile Station (MS).  The mesh mode support of multi hop BS access the internet and RSs forward traffic to other RSs.

Scheme summarizingOFDM Basics

OFDM belongs to multi carrier modulation technique that provides high data rates. In high data rate systems, delay spread is greater than symbol length. In NLOS systems, the delay spread will also be large and the wireless broadband system will suffer Inter Symbol Interference (ISI). To overcome this problem the multi carrier modulation divides the transmitted bit stream into lower stream. The individual sub streams are sent over parallel sub channels. The data rate of a sub channel is less than total data rate, so the sub channel bandwidth is less than total system bandwidth. Thus the ISI of each sub channel is small.

ofdm

OFDM Features

The narrow band signals are less sensitive as compared to ISI and frequency selective fading.

In OFDM, Fast Fourier Transform (FFT) and Inverse Fast Fourier Transform (IFFT) operations ensure that sub channel do not interfere with each other.

OFDM provides robustness against burst error.

OFDM support less complex equalization as compared to the equalization in single carrier systems. Effective robustness can gain by multi path environments.

 Mobility

Mobility support is available in IEEE 802.16e WiMAX standard. In BWA four scenarios support mobility.

Nomadic

In this scenario user is allowed to take a fixed subscriber station and reconnect from a different point of attachment.

Portable

The nomadic access scenario supports the portable devices such as PC card.

 Simple mobility

In this scenario, the subscriber move at speed up to 60 kmph and interruptions are less than 1 sec during handoff.

Full mobility

The subscriber move at speed up to 120 Kmph and packet loss is less than 1 percent. It support seamless handoff and latency is less than 50 ms.

QoS in WIMAX

The QoS is a measure of how successfully the signals are transmitted from BS. The four parameters, as follows, are used to describe the QoS.

Bandwidth

The PHY Layer is a pipe between BS and the client terminal in WIMAX. The active clients are in parallel and share the overall system bandwidth.

Latency

Latency is the end to end packet transmission time, and occurs in physical layer chain. In IEEE 802.16 systems the latency is almost 5 ms. Latency is affected by how packets quid, different QoS protocols and user characterization are implemented.

Jitter

Jitter is the variation of latency over different packets and can be limited by number of packet buffering. Mobile terminal has little jitter control in wireless networks and it falls on the base station to ensure that different packets are received at different priority.

Reliability

Reliability leads to more complications in wireless networks as compared to fixed line ones. The problem arises specifically in mobile networks, where the radio wave propagates in mobile terminal with small antenna and low power in urban area

WiMAX Features for Performance Enhancement

WIMAX supports advanced features to improve the performance. These advanced feature support for multiple antenna techniques, hybrid-ARQ, and enhanced frequency reuse and multiple antenna technique.

Advanced Antenna Systems

The WIMAX standard supports the multi antenna solution to improve system performance. The advanced antenna systems support the variety of multi antenna solutions, such as transmit diversity, Beam forming, and spatial multiplexing, all are used in WIMAX.

 Diversity Schemes

The diversity scheme is a technique which is used for improving the reliability of a message signal. In this technique two or more communication channels are used with different characteristics.  Diversity plays an important role in combating fading and co-channel interference.

In telecommunications, a diversity scheme refers to a method for improving the reliability of a message signal by using two or more communication channels with different characteristics. Diversity plays an important role in combating fading and co-channel interference and avoiding error bursts. It is based on the fact that individual channels experience different levels of fading and interference. Multiple versions of the same signal may be transmitted and/or received and combined in the receiver.

Beam Forming

Beam forming is a signal processing technique used in sensor arrays for directional signal transmission or reception. This is achieved by combining elements in the array in such a way that signals at particular angle experience constructive interference and while others experience destructive interference .Beam forming can be used at both the transmit and receive side to achieve spatial selectivity .The improvement compared with an OmnHYPERLINK “http://en.wikipedia.org/wiki/Omnidirectional”i HYPERLINK “http://en.wikipedia.org/wiki/Omnidirectional”directional reception/transmission is known as the receive/transmit gain (or loss).Beam forming can be used for both radio or sound  waves. It has found numerous applications in radar, sonar, seismology, wireless communications, radio astronomy, speech, acoustics, and biomedicine. Adaptive beam forming is used to detect and estimate the signal-of-interest at the output of a sensor array by means of data-adaptive spatial filtering and interference rejection.

In this technique the antenna element focuses the transmitted beam in the direction of receiver, to improve the received Signal to Interference Noise Ratio (SINR). Beam forming supports; more coverage area, capacity, reliability, and support for both uplink and downlink.

BeamSpatial multiplexing

In spatial multiplexing the multiple independent streams are transmitted across multiple antennas. The spatial multiplexing is used to increase the data rate or capacity of the system. WiMAX also supports spatial multiplexing in uplink. The coding across multiple users in the uplink, supporting the spatial multiplexing, is called multi user collaborative spatial multiplexing.

Spatial MultiplexingModulation techniques 

There are three main classes of modulation schemes, which are used to transmit the data.

Amplitude Shift Keying (ASK)

Frequency Shift Keying (FSK)

Phase Shift Keying (PSK)

All techniques are used in digital communication to convey the data. In phase shift keying the phase is changed to represent the data signal. There are two fundamental ways, which are used in phase shift keying.

Binary Phase Shift Keying (BPSK) 

BPSK is sometimes called Phase Reversal Keying; it is the simplest form of phase shift keying.  BPSK uses two phases, which are separated by 180 degree and known as two phase shift keying. This modulation is most robust from all PSKs modulation schemes due to its low probability of error. However, it gives  lower data rates as compared to other modulation schemes. So for getting higher data rates we use QPSK and 16 QAM.

 S1(t) = √2.Eb /Tb*cos(2πfct+π) = -√2.Eb /Tb*cos(2πfct)  for binary

 S1(t) = √2.Eb /Tb*cos(2πfct)   for binary

Where, fis the frequency of carrier

So, the signal can be represented by single basis function

 Ф(t) = √2 /Tb *cos(2πfct)

 Where 1 is represented by √EbФ (t) and 0 is represented by -√EbФ (t)

Related Work

There were some related work such as BER for BPSK modulation with 1Tx,2Rx Alamouti STBC(Rayleigh Channel).There are three  receive diversity schemes –Selection combining, Equal Gain Combining and Maximal Ratio Combining. All the three approaches used the antenna array at the receiver to improve the demodulation performance .There are few receiver structure for 2*2 MIMO channel like Zero Forcing (ZF) equalization, Minimum Mean Square Error (MMSE) equalization, Zero Forcing equalization with successive Interface Cancellation (ZF-SIC).ZIF-SIC with optimal ordering .But Minimum Mean Square Error (MMSE) equalization with optimally ordered Successive Interference Cancellation gave the best performance.

Objective of this Thesis

In MIMO where the information is spread across multiple antennas at the transmitter and also receiver .We are discussing a popular transmit diversity scheme called Alamouti Space Time Block Coding (STBC). We are assuming the channel is a flat fading Rayleigh multi path channel and the modulation is BPSK. The Capacity of a MIMO channel with nt transmit antenna and nr receive antenna is analyzed. Capacity of MIMO the result dependences Capacity (bit/s/Hz), and the SNR (dB), in this simulation we are using the initial SNR = 2, results of simulation for capacity of MIMO 2×2, 3×3, 4×4 systems. The receiver structure of MIMO called Maximum Likelihood (ML) decoding which gives us an even better performance. We will assume that the channel is a flat fading Rayleigh multi path channel and the modulation is BPSK.

Introduction to this thesis paper

describes the Multiple Antenna Techniques such as the Diversity Scheme, Smart Antenna. An overview discussion on Multiple Input and Multiple Output (MIMO) system is also included.

explains about Alamouti Space Time Block Code which is stand for MIMO spatial multiplexing. The Rayleigh Fading Channel because are assuming that the channel is a flat fading Rayleigh multi-path channel And Alamouti STBC with two receive antenna.

illustrates the capacity of MIMO Vs. Signal to Noise Ratio (SNR) (db).

contains the Limitation of work, discussion and suggestion for future work.

Multiple Antenna Techniques

Introduction 

 The Multiple Input Multiple Output (MIMO) technique uses an array of antennas for both transmitting and receiving end. Using MIMO techniques we can obtain better wireless communication as compared to other techniques. The electromagnetic waves transmitted from the antennas bounce around the environment, the receiver receives these electromagnetic waves from multiple directions, with varying delays. The delay varies since the different paths have different length. The Line of Sight (LOS) between the Base Station (BS) and the Subscriber Station (SS) is often very difficult to achieve, because the SS may be located indoors.

Multi-path Environment

 Multiple antenna techniques

Multiple antenna techniques are divided into three subclasses.

1.  Diversity Schemes

2.  Smart Antenna Systems (SAS)

3.  MIMO Systems

Diversity Scheme

Diversity Scheme is a technique, which is used to improve the signal strength. In diversity scheme, two or more communication channels are used. Diversity plays an important role in reduction of fading and elimination of error burst. In diversity schemes multiple versions of the signal are transmitted and received. When these signals are transmitted the Forward Error Correction (FEC) code is added to different parts of the message. Different classes of diversity are given below.

Time Diversity

Multiple versions of the same signals are transmitted at different time instants. The FEC Code is added to the message. Then this message is spread in time before the transmission.  In other words  the  elements  of a radio signal transmitted at the same moment  in time  and  these elements arrive at the receiver at different moments in time, because these signals uses different physical paths, through the use of receiving antenna technology known as rake receivers and multiple input multiple output (MIMO).

Frequency diversity

In this, the signal is transmitted using different frequency channels, such as spread spectrum. OFDM modulation is also used with sub carrier and FEC.

 Space diversity

In Space diversity the signal is sent over different propagation paths.  In wireless communication transmit diversity is used to transmit the signal and reception diversity is used to receive the signal.  In this technique, if the antennas are much more than one wavelength away from each other, this is called macro diversity and if the antennas are in the order of one wavelength, then it is called micro diversity

Polarization diversity

In this technique multiple versions of signal are transmitted and received. It is used to minimize the effects of selective fading of the horizontal and vertical components of a radio signal. It is usually accomplished through the use of separate vertically and horizontally polarized receiving antennas.

Multi user diversity

Multi user diversity supports opportunistic user scheduling at either transmitter or receiver end.  By using scheduling, the transmitter selects the best user from the candidate received according to the quality of each channel.

Smart Antenna System

The smart antenna system also called adaptive antenna system (AAS). In smart antenna system, by using signal processing techniques channel model attains channel knowledge to steer the beam towards the desired subscriber while transmitting null steering towards the interferer. The null steering cancels undesired portion of the signal and reduces the gain of radiation pattern obtained from adaptive array antenna. This is achieved by using Beam forming and null steering towards desired user. The process of combining the radiated signal and focusing it in the desired direction is called Beam forming.

Smart Antenna

Multiple Input Multiple Output (MIMO) system

In MIMO technique BS and SS both have minimum of two transmitter and receiver, per channel as shown in figure 2.2.

Generally in 802.16, for diversity schemes, following three techniques are considered [3].

1.  Space time coding

2.  Antenna Switching

3.  Maximum ratio combining

Multiple Input

Space time coding technique 

The 802.16 standard supports the Alamouti Scheme. In Space Time Coding, the information is sent on two transmit antennas. The information is sent consecutively in time and is called transmit information in time and space. A space–time code (STC) is a method employed to improve the reliability of data transmission in wirelessHYPERLINK “http://en.wikipedia.org/wiki/Wireless” HYPERLINK “http://en.wikipedia.org/wiki/Wireless”communication systems using multiple transmit antennas. STCs rely on transmitting multiple, redundant copies of a data stream to the receiver in the hope that at least some of them may survive the physical path between transmission and reception in a good enough state to allow reliable decoding.

Space time codes may be split into two main types:

Space–time trellis codes (STTCs) distribute a trellis code over multiple antennas and multiple time-slots and provide both coding gain and diversity gain.

Space–time block codes (STBCs) act on a block of data at once (similarly to block codes) and provide only diversity gain, but are much less complex in implementation terms than STTCs.

STC may be further subdivided according to whether the receiver knows the channel impairments. In coherent STC, the receiver knows the channel impairments through training or some other form of estimation. These codes have been studied more widely because they are less complex than their non-coherent counterparts. In no coherent STC the receiver does not know the channel impairments but knows the statistics of the channel. In differential space–time codes neither the channel nor the statistics of the channel are available.

Antenna Switching

Technique is used for capturing diversity gains. The purpose of the antenna switching is not to combine signals from the multiple antennas available, it is used to simply select the single antenna with the best channel gain at any given time. This is applicable to both downlink and uplink transmission.

Maximum Ratio Combining (MRC)

Maximum Ratio Combining (MRC) is the technique of diversity scheme which estimates channel characteristics for multiple antennas. MRC obtain diversity and array gain but does not involve spatial multiplexing in any way. In maximum ratio combining, the signal of each channel are added together  and the gain of these channel is proportional to the Root Mean Square (rms) signal level and inversely proportional to the mean square noise level of these channels. Each channel has different proportionality constants, also known as ratio squared combining. [7]

Summary

To improve the performance in the Telecommunication field its very essential techniques .Now days without multiple antenna techniques it is impossible to think communication of data transfer .The Multiple Input Multiple Output (MIMO) technique uses an array of antennas for both transmitting and receiving end .Smart Antenna Diversity Scheme, MIMO are the techniques of multiple antenna. MIMO is the best from another two. In Space Time Coding, the information is sent on two transmit antennas. In maximum ratio combining, the signal of each channel are added together  and the gain of these channel is proportional to the Root Mean Square  signal level and inversely proportional to the mean square noise level of these channels.

 ALAMOUTI Space Time Block Code for MIMO System

Introduction

In order that MIMO spatial multiplexing can be utilized, it is necessary to add coding to the different channels so that the receiver can detect the correct data.

There are various forms of terminology used including Space-Time Block Code – STBC, MIMO preceding MIMO coding, and Alamouti codes. Space-time block codes are used for MIMO systems to enable the transmission of multiple copies of a data stream across a number of antennas and to exploit the various received versions of the data to improve the reliability of data-transfer. Space-time coding combines all the copies of the received signal in an optimal way to extract as much information from each of them as possible. Space time block coding uses both spatial and temporal diversity and in this way enables significant gains to be made. Space-time coding involves the transmission of multiple copies of the data. This helps to compensate for the channel problems such as fading and thermal noise. Although there is redundancy in the data some copies may arrive less corrupted at the receiver.

When using space-time block coding, the data stream is encoded in blocks prior to transmission. These data blocks are then distributed among the multiple antennas (which are spaced apart to decor relate the transmission paths) and the data is also spaced across time.

A space time block code is usually represented by a matrix. Each row represents a time slot and each column represents one antenna’s transmissions over time.

Within this matrix, Sij is the modulated symbol to be transmitted in time slot i from antenna j. There are to be T time slots and nT transmit antennas as well as nR receive antennas. This block is usually considered to be of ‘length’ T.

MIMO Alamouti coding

A particularly elegant scheme for MIMO coding was developed by Alamouti. The associated codes are often called MIMO Alamouti codes or just Alamouti codes. The MIMO Alamouti scheme is an ingenious transmit diversity scheme for two transmit antennas that does not require transmit channel knowledge. The MIMO Alamouti code is a simple space time block code that he developed in 1998.The Alamouti code is a so called Space-Time Block Code (STBC). A block code is a code that operates on a “block” of data at a time and the output only depends on the current input bits. There are other codes, such as “convolution codes” whose output is dependent on the current input, and also on the previous inputs. These codes may not necessarily produce the same output for a given input, depending on what the previous input bits were. The main reason for using a block code is that typically it requires much less processing power to decode a block code than a convolution code.

ALAMOUTI Space Time Block Code

In Space Time Block code output only depends on the current input bits. In convolution codes, the output only depends on the current input bits and on previous inputs. The convolution code may not produce the same output for a given input, because previous input is involved. The block code requires less power, to decode a block code, as compared to convolution code.

The Alamouti coding is described by the following matrix and Y is the encoder output, while X 1 and X2 are the input symbols. The “*” denotes the complex conjugate.

The figure  is a block diagram of the transmitter module in MIMO system and using

the Alamouti code. The binary bits enter a modulator and are converted to “symbols”. A symbol from modulator is represented by complex numbers. This symbol can be transmitted directly in a single antenna, Single Input Single Output (SISO), system. In MIMO system the complex symbols are fed into the Alamouti encoder. The Alamouti encoder maps the symbols onto the transmitter by using the above given matrix. In this matrix, rows represent the transmit antennas, and columns represent the time. The element of the matrix tells what symbol is to be transmitted from a particular antenna. The Alamouti code works with pairs of symbols at a time. It takes two time periods to transmit the two symbols.

Alamouti space

Rayleigh Fading Channel

The Rayleigh fading model is particularly useful in scenarios where the signal may be considered to be scattered between the transmitter and receiver. In this form of scenario there is no single signal path that dominates and a statistical approach is required to the analysis of the overall nature of the radio communications channel.

Rayleigh fading is a model that can be used to describe the form of fading that occurs when multi path propagation exists. In any terrestrial environment a radio signal will travel via a number of different paths from the transmitter to the receiver. The most obvious path is the direct, or line of sight path.

However there will be very many objects around the direct path. These objects may serve to reflect, refract, etc the signal. As a result of this, there are many other paths by which the signal may reach the receiver.

When the signals reach the receiver, the overall signal is a combination of all the signals that have reached the receiver via the multitude of different paths that are available. These signals will all sum together, the phase of the signal being important. Dependent upon the way in which these signals sum together, the signal will vary in strength. If they were all in phase with each other, they would all add together. However this is not normally the case, as some will be in phase and others out of phase, depending upon the various path lengths, and therefore some will tend to add to the overall signal, whereas others will subtract.

Rayleigh fading model has support for troposphere and ionosphere signal propagation. It is most applicable when there is no distinct dominant path along LOS, between the transmitter and receiver. In this regard, Jakes introduced a model for Rayleigh fading based on summing sinusoids. Jakes model works equally, if the single path channel is being modeled or multi path frequency-selective channel is required. The Jakes model also popularized the Doppler spectrum associated with Rayleigh fading and as the result this Doppler spectrum is often termed as Jakes spectrum.

Rayleigh fading is a reasonable model when there are many objects in the environment that scatter the radio signal before it arrives at the receiver. The central limit theorem holds that, if there is sufficiently much scatter, the channel impulse response will be well-modeled as a Gaussian process irrespective of the distribution of the individual components. If there is no dominant component to the scatter, then such a process will have zero mean and phase evenly distributed between 0 and 2π radians. The envelope of the channel response will therefore be Rayleigh distributed. Calling this random variable R, it will have a probability density function:

 Where   Ω = E(R2).

Often, the gain and phase elements of a channel’s distortion are conveniently represented as a complex number. In this case, Rayleigh fading is exhibited by the assumption that the real and imaginary parts of the response are modeled by independent and identically HYPERLINK “http://en.wikipedia.org/wiki/Independent_identically-distributed_random_variables”distributed zero-mean Gaussian processes so that the amplitude of the response is the sum of two such processes.

Alamouti STBC with two receive antenna

The principle of space time block coding with 2 transmit antenna and one receive antenna is explained in the post on Alamouti STBC. With two receive antenna’s the system can be modeled as shown in the figure below.

TransmitThe received signal in the first time slot is,

Assuming that the channel remains constant for the second time slot, the received signal is in the second time slot is,

Where

 are the received information at time slot 1 on receive antenna 1, 2 respectively,

 are the received information at time slot 2 on receive antenna 1, 2 respectively,

hij is the channel from ith receive antenna to jth transmit antenna,

x1, x2 are the transmitted symbols,

are the noise at time slot 1 on receive antenna 1, 2 respectively and

 are the noise at time slot 2 on receive antenna 1, 2 respectively.

Combining the equations at time slot 1 and 2,

Let, define H=

To solve for, need to find the inverse of H.

The term,

Simulation Model

Generating random binary sequence of +1’s and -1’s.Group them into pair of two symbols. Code it per the Alamouti Space Time code. Multiply the symbols with the channel and then add white Gaussian noise. Equalize the received symbols Perform hard decision decoding and count the bit errors Repeat for multiple values of Eb/No and plot the simulation and theoretical results.

BER for BPSKObservation

In Alamouti Space Time Block Coding with 2 transmitters and 1 receiver has around 3dB poorer performance. In Figure 3.3 the theoretical Alamouti calculation SNR is 24 db (approx.) and in the simulation SNR decreases 11 db (approx.). BER plot for nTx=1, nRx=2 Maximal ratio combining, the Alamouti Space Time Block Coding has around 5dB better performance.

Summary

BER performance is much better than 1 transmits 2 receive MRC case.In 1 transmitter and 2 receivers .The effective channel concatenating the information from 2 receive antennas over two symbols results in a diversity order of 4.In general, with  m receive antennas, the diversity order for 2m transmit antenna Alamouti STBC.

ALAMOUTI Space Time Block Code for MIMO System

Introduction

An overview of the channel capacities under different scenarios .Single input single output wireless channel capacity is considered first. Multiple channel capacity studies are inspected. MIMO capacity for different conditions is considered. Multi-Input Multi-Output communication system consisting of the following identities. s  input symbols to be transmitted, Nt the number of transmit antennas, Nr the number of receiver antennas y the received symbol vector, H Nr x NMIMO channel matrix n noise with covariance matrix, E{nH}=N0INr

Capacity in AWGN

Capacity studies in communication started with Claude Shannon pioneered theorems.  He defined capacity as the maximum mutual information between inputs and outputs of a communication channel. He then defined his coding theorem, which states that a code does exist that could achieve a data rate close to the capacity with a negligible probability of error. Shannon studies were related to the AWGN channel, wire lined channels. These channels do not fade the signals. Considering the wireless transmission, it is expected that the maximum supportable capacity is smaller than that of the wire lined channels. This is due to the multi-path and fading effects of the wireless communication channels. Capacity studies initially are done for flat fading channels.

The capacity of AWGN channel given the Bandwidth B and SNR g is given by the well known formula.

C=Blog2 (1+ g)

Shannon capacity can be considered as an upper limit for real systems. In wireless communication channel-fading information is important to be known at the transmitter or receiver side for better communication.

Capacity of Multi-channel Communications

Consider a Multi-Input Multi-Output communication system consisting of the following identities.

 s input signal to be transmitted,

Nt the number of transmit antennas,

Nr the number of receiver antennas

y the received signal vector,

H is the channel response in the Nr x NMIMO channel matrix

n noise with covariance matrix, E{nnH}=N0INr

MIMO

The relation between input and output is given by

yEs is the average transmits signal energy. If we choose Ts=1 then Es turns out to be the transmit power.

Deterministic MIMO channel capacity

Telstra has taken the role of Shannon for MIMO channel capacity studies; he defined the deterministic MIMO channel capacity as stated below

C

Channel knowledge available only at receiver

The channel capacity in the absence of the channel knowledge at the transmitter is given by the following formula.

RssInserting HHH=QDQH in the above equation, an equivalent and simple expression is obtained as in (13)

C = ∑   Log2(1+ES /NtNo*λi)

i=1

r is the rank of the channel and lis are the positive eigenvalues of the HHH

 In the case of an normalized orthogonal channel satisfying Nr=Nt=N, the capacity of the MIMO channel is given as

                 C = N log2 (1+ (Es/No))

That is the capacity of MIMO channel is equal to N times that of the SISO channel.

Channel knowledge available at the transmitter side case:

systemSVD of H yields H= UVH, inserting this into (11) and rearranging the parameters we get,

SbOr this equation can be written as,

Man

I=1..r, where r is the rank of  HHH

The capacity of the MIMO channel is the sum of the SISO channels,

litonConsidering transmit power constraint the capacity formula reduces to,

himuThe capacity maximization problem can be solved using the lagrangian methods, hence leading to the results

raju

The optimal power allocation to the individual channels is found through an algorithm known as the Water pouring algorithm.

As can be seen from the formulas capacity of the MIMO channels increases when the channel knowledge is available at the transmitter, compared to the case in which receiver only has the channel information.

Capacity of the multiple input single output (MISO) and single input multiple output channels (SIMO).

Random MIMO channel capacity

Since the channel is random so the capacity is. In order to understand the capacity for the fading channels some definitions are needed. These are, ergodic capacity, outage capacity, outage probability,

Capacity is the expected value of the capacity over the distribution of the channel elements. It can be though as the mean information rate.

Outage probability: is the probability that given a transmission rate R and transmit power constraint the channel capacity cannot support a reliable communication

Pout = P(C£ R)

Outage Capacity:

Given an outage probability, the maximum information rate that can be supported by the communication channel is called the outage capacity of the channel.

Capacity when the channel is known only to the receiver is given as:

ceThe capacity when the channel is known to the transmitter is given as:

cmA lower bound for the capacity is defined as [1],

cbcMIMO channel capacity in the presence of antenna correlation effect

When there is correlation between antennas at receiver or transmitter side, the channel matrix is expressed as,

HWhere Rr and Rt are positive definite matrices showing the correlation effect between antenna elements. The elements of the R matrices can be found using

RAt high SNR the capacity of the MIMO channel can be written as

logFrequency selective MIMO channel capacity 

If the channel is frequency selective, then the channel is divided into frequency flat sub-channels and the capacity of the each sub-channel is calculated using the frequency flat channel capacity formulas. The capacity of the frequency selective channel is the sum of each individual frequency flat channel. When the channel knowledge is available at the transmitter side, frequency flat channels uses the water pouring algorithm to distribute the power to the channel modes. In frequency selective channels, power must be distributed across space and frequency to make a more reliable communication. For deterministic frequency selective channels the capacity formula is given as in

Cf

If the channel is random then the capacity for the frequency selective MIMO channel is defines as in .

Cfs

Mutual Information and Shannon Capacity

Channel capacity was established by Claude Shannon in 1940s, by using the mathematical theory of communication. The capacity of a channel is denoted by C. The channel capacity C is the maximum rate at which reliable communication can be performed, without any constraints on transmitter and receiver complexity. Shannon showed that for any rate R < C, there exist rate R channel codes with arbitrarily small block error probabilities.

Thus, for any rate R < C and any desired non-zero probability of error ρe,  there exists a rate R code that achieves ρe. The code may have a very long block length and encoding and decoding complexity may also be extremely large.  The required block length may increase as the desired  ρe  is decreased or the rate R is increased towards C. Shannon showed that code  operating at rates R > C cannot achieve an arbitrarily small error rate. So the error probability of a code operating at a rate above capacity is bounded away from zero. Therefore, the Shannon channel capacity is truly the fundamental limit to communication.

Capacity of MIMO system

MIMO system consists of multiple transmit and receive antennas interconnected with multiple transmission paths. MIMO increases the capacity of system by utilizing multiple antennas both at transmitter and receiver without increasing the bandwidth.

In the situation where the channel is known at both transmitters (Tx) and receiver (Rx) and is used to compute the optimum weight, the power gain in the kth sub channel is given by the kth value. i.e., the SNR for the kth sub channel equals

Pi

Where PK is the power assigned to the kth sub channel, λk is the kth value and σ2N is the noise power. For simplicity, it is assumed that σ2N = 1. According to Shannon, the maximum capacity of K parallel sub channels equals

cyWhere M is the number of symbols and means SNR is defined as

Snr

Given the set of evalues { λk }, the power  PK allocated to each sub channel  k  is determined to maximize the capacity by using Gallager’s waterfilling theorem  such that Each sub channel is filled up to a common level D, i.e.

DWith a constraint on the total Tx power such that

ptxWhere, PTX total transmitted power. This means that the sub cannel with the highest

Gain is allocated with the largest amount of power. In the case where 1/ λ, k >D then PK =0

When the uniform power allocation scheme is employed, the power PK is adjusted according to

P1 = ⋯ = PK

Thus, in the situation where the channel is unknown, the uniform distribution of the power is applicable over the antennas. So that the power should be equally distributed between the N elements of the array at the Tx, i.e.,

Pn= PTX/N; n=1…..N

Capacity Analysis using Shannon Capacity

MIMO system consists of multiple transmit and receive antennas interconnected with multiple transmission paths. MIMO increases the capacity of system by utilizing multiple antennas both at transmitter and receiver without increasing the bandwidth. In the situation where the channel is known at both transmitter (Tx) and receiver (Rx) and is used to compute the optimum weight, the power gain in the kth sub channel is given by the kth value, i.e., the SNR for the kth sub channel equals.

k

The capacity of MIMO system is given as follows

ckBy implementing the above equation using mat lab, following result is obtained

Capacity Analysis of MIMOObservation

Figure 4.3shows, an analysis of the capacity of the system having multiple transmitters and receivers. The capacity of a MIMO system has been plotted against SNR in dB. It is clear that with increase in the number of antennas at the both sides capacity increases linearly i.e. with nt=4 and nr=4, we have achieved highest capacity in MIMO systems.

Summary

MIMO system transmits two or more data streams in the same channel. The data streams are sent at the same time. MIMO System are also used to obtain the goal of evaluating the capacity of a system using N transmit and M receive antennas. Increasing number of antennas at either side of the MIMO system will have same effect in raising the capacity.

Discussion and Suggestion for future work

Discussion

Modern wireless systems requires high data rate. The MIMO techniques are physical layer based and essential part of the IEEE 802.16e-2005. The Simulation result with 2 transmit antenna and 2 receive antenna using Alamouti STBC code is better than Theoretical value with 2 transmit antenna and 1 receive antenna using Alamouti code.In MRC case with 1 transmitter and 2 receiver  is much better than theoretical 1 transmit antenna and 1 receive antenna .This is because the effective channel concatenating the information from 2 receive antennas over two symbols results in a order of 4.with m receive antennas, the diversity order for 2 transmit antenna Alamouti STBC is 2m. Moreover the results of MIMO capacity shows that increase in number of antennas at the both side’s capacity increases linearly. Figure 4.3  shows that, when nt=4 and nr=4 it achieves the highest capacity as compared with nt=2 and nr=3 and nt=3 and nr=2 respectively in MIMO system. Increasing the number of antennas at either side of MIMO system will have the same effect of raising the capacity. Matlab 6.5 is used for Simulation.

Suggestion for future work

Multiple Antennas is indeed a very vast topic and myriad scopes are there to execute research. This book is rather an introductory concept about the multiple antennas and an overview and performance analysis of MIMO .There are three techniques for MIMO. This book is worked with Alamouti Space time block coding .BER performance for BPSK modulation with nTx, nRx Alamouti STBC can be improved. In future,This simulated bit error rate performance results can be tested and verified practically. Further research can be helpful to make it more efficient and reliable in performance.

 Limitations

Wireless Cellular networks are usually interference-limited and different data streams on different antennas are equivalent to more users in system .If Ntx=Nrx, multiple antennas at receiver allow separation of all desired data streams. If Ntx<Nrx,multiple antennas at receiver additional don’t allow separation of all desired data streams. Capacity of MIMO with increasing transmitter and receiver can be tested using matlab simulations .Here 4 transmitter and receiver is used for simulation.

Multipul Antina system

Categories
Accounting Architecture

Overall Accounting Procedure of Real Estate Company

An-Overview

Techno Holdings Limited. (THL) has been a part of the real estate industry in Bangladesh for not very long but has earned a good name with its properties in the prime location of the capital city. It started its journey in the early 2010 with a vision of ling term business building modern apartment projects in the city, not to satisfy an individual client only but to contribute to the entire society as a whole. Our corporate philosophy is however based on very simple principle Quality apartments for the future. To this end we are constantly working towards upgrading & improving every aspect of our activities Techno holdings Limited is the exclusive developer and builder for planning, implementing and allotment and allotment of all facilities of the project as a modern and luxurious apartment complex consisting of self contained apartment, reserved car parking other features etc. as described in details.

Emerging with the confidence to face existing challenges in the ever competitive market of real estate, it has timely succeeded in proving its capabilities though undertaking a number of projects in the city.

Within a short span of time, it has earned the satisfaction from landowners and valued clients by virtue of its free and fair business practices. To ensure basic civic amenities and to add a new dimension in the quality of modern living, it remains mindful about its commitment in all respect.

Be it the quality of our architectural design of our after-sale service, the emphasis is to jeep on improving. It is because of this unrelenting quest for example that we have earned the goodwill of so many of our customers.

Techno holdings’ prime objective is to build beautiful apartments keeping pace with the changes in tastes and needs of modern lifestyle. Not only the aesthetic qualities of apartment projects is its concentration but its thought & ideology centre around the right combination of practicality, as it constantly strives to shore up the confidence of its valued clients.

As such, our main motto is to satisfying our potential customer with super commitment return in the field of making unique construction with the best infrastructure materials within the demarcated committed schedule.

Using innovative entrepreneurial approaches, transparent sets to offer a new tune of services to landowners and clients in a bid to ser a distinction in the trade and brand its entity as an authenticated name in the real estate sector and subsequently to place it in the rank of mainstream.

The project management team consists of project managers, project engineers and skilled supervisors who remain on site to thoroughly oversee the execution of project. The designers having all round conception are well conversant with client’s needs and aspirations. Using most updated software for accounting and financing, this dept keeps each and every individual client’s record in order.

Vision     : Quality apartments for the future.

Mission: We constantly strive to shore up the confidence of our esteemed clients through upholding our commitment in ensuring a beautiful and peaceful living which ultimately help them build a beautiful future for the generations to come.

The team at a glance:

Engineers possess very competent technical skills, yet are creative, bold and innovative. With years of accumulated experience at home and abroad, the engineers and planners have adopted an outward looking quality oriented construction strategy being driven by specialized engineering and management skills, prefect guidelines and thorough compliance with the stipulated specification, yielding the highest possible quality in construction.

Customized software’s are applied for structural and architectural designs to achieve highest accuracy. The engineering team is well equipped with latest computer aided solutions that produce instant updated records on areas of concern and advancement of projects as well. A flawless and formatted project schedule is well maintained by the engineering dept. to scan at a glance the whole activities under its lens.

The Architectural Design for each of our project is minutely detailed for achieving on impressive façade and a strong functional relation within the interior space layout. The balanced distribution in a harmonized manner results in a smooth and comfortable living at an affordable price. Sophisticated software called STAAF-lll is used for high tech structural design and stress analysis. CAD designs are followed for all architectural design.

Board of Directors:

A super combination of multi – disciplined experts with proven track records galvanizing the team  efforts in all respect.

Name % Number of Share
Md. Morshed Alam (Managing Director) 80% 4000
Mrs. Nasrin Alam   (Director) 20% 1000

Introducing of Board of Directors                                                   

A. Mrs. Nasrin Alam, Director of the company is one of the extra-ordinary woman entrepreneurs in the county .she is a solid 6 years of practical and first hand experience in real estate development and construction .She is much more obligated person. Her motivation, force, courage and gratitude towards work are symbolical .she posse’s outstanding leadership qualities and charismatic power through which he had resolved innumerable critical issues he met during project execution. Associated with a number of socio-economic organizations, he has been contributing to the society since long.

B. Md. Murshed Alam, Managing Director of the company, He has 25 years practical experience in real estate development and construction. He is a BSC His potentiality and idealism is authentic. Specializes in project management and facilitation of government affairs and legal matters. A competent member of general management with expertise in general administration & logistics. By virtue of his leadership capability he managed a large team of manpower from all walks of trades and having professional dexterity in the field of logistics supports. He is actively involved with various socio cultural organizations in the country.

LIST OF PROJECTS:

LIST OF ON-GOING PROJECTS

Prime Rose:

Residential Project             Particulars
Name of the Project : Prime Rose
Address : Plot No-4,Road No-1,Block-D Nobodoy Housing, Mohammadpur Dhaka.
Area of land : 6 kathas
Total Floor : 8 Nos
Total Unit : 21
Construction area : 26880 sft.
Total cost : 40000000.00 Approx.
Developers part : 15350 sft.
Total sale   a. Flat sale:                                          4,91,20,000 .00

b.car parking:                                         20,00,000 .00

c.Utility                                                   12,00,000.00

Total :                                                              5,23,84,000.00
Profit :                                                               1,23,84000.00
Source of fund : Owner source / Bank Loan
     

Niloy:

Residential Cum Commercial Project  

 

Particulars
Name of the project : Niloy:
Address : House no-948/2/c,East Shewrapara,Kafrul,Dhaka.
Area of land : 5.36 kathas
Total Floor : 6
Total Unit : 15
Construction area : 13,560s.ft
Total cost : 26,850,000.00
Developments parts : 9
Total sale : a. Flat Sale   :                                         2,375,000.00

b. Car Parking :                                      15,00,000.00

c. Utility  :                                             1,350,000.00

Total : 4,10,00,000.00
Profit :                                        63,50,000.00
Sources of Fund : Owner source / Bank loan

LIST OF UP-COMING PROJECTS:

1)  Project Name  

:

 

Roselein

Address

 

:

 

Plot # 205, Chata mosjid Lane, She-e- Bangla Road

Rayer Bazar, Dhaka-1209.

Type of Building : Residential
No. of Building : 2 Nos
TotalLand : 25 Khata
No. of Storied : Ten Storied
Size of Apartment : 1050 S.ft
No. of Apartment : 108 Nos
Total Car Parking Provision : 50 Nos

2)  Project Name : Hatirzil  Lake City
Address

 

:

 

Plot # 5-20, 1st Lane Road # 01, East Merul, Tek Para, Badda, Dhaka-1212.
Type of Building : Residential
No. of Building : 10 Nos
TotalLand : 100 Khata
No. of Storied : Ten Storied
Size of Apartment : 1100 S.ft
No. of Apartment :  360 Nos
Total Car Parking Provision : 200 Nos
3)  Project Name : North Land
Address

 

:

 

Plot # 2, Road # 01, Block # D,  Nobodoy Housing Mohammadpur, Dhaka-1207.
Type of Building : Residential
No. of Building : 1 Nos
TotalLand : 6 Khata
No. of Storied : Ten Storied
Size of Apartment : 1050 S.ft
No. of Apartment : 27 Nos
Total Car Parking Provision : 12 Nos

Nature of the Organization:

The Company is engaged in purchasing land, developing the same for urban housing and selling to the people of different income group. The company also purchase high land for construction of multistoried apartments building.

Company Objectives:

The main objective of the company is to give the clients safe home with his/her suitable location. Techno Holdings ltd specializes in residential and commercial real estate listings and sales in the surrounding areas. Techno Holdings ltd offers Mohammadpur, East Sewrapara, Shohid Buddhijavi road, Nobodoy Housing Society Zone to the target customers for their upcoming projects.

The another objective of the company is to provide housing facilities to the middle class people with a mid term installment basis payment policy .THL believes that idea creates business , Business creates profit. Minimum profit  taking by providing equal benefit to the clients is the purpose of the company.

Administration and Logistic:

Techno Holdings Ltd has professional & skilled administration team to co-ordinate all departments of the company. Logistical services include repair maintenance facilities such as plumbing and prompt troubleshooting (solve problems). Permanent maintenance personnel ensure that the apartments are in good condition.

ADMIN DEPERTMENT

Sl.No             Name Designation Date of Joining Experience Remarks
1 Md. Azad Rayhan General Manager 01/01/09 11 years  
2 Md.Murshedur Rahman Manager 01/01/09 6 years  
3 Nargish Akhter Executive (Public Relation) 01/01/10 1 years  
4 Mizanur Rahman Jr. Executive (Logistic) 01/01/09 3 years  

Accounts and Finance:

 Techno Holdings Ltd has accountants to maintain the accounts. They also hire experts for their need to get an accurate costing to start new project and for specific forecasting.

ACCOUNTS DEPARTMENT

Sl. No             Name Designation Date of joining Experience Remarks
01 Md. Mahabubur Rahman Account officer 01/01/010 3years  
02 Md. Kawsar Ahamad Executive (Accounts) 01/05/010 2 years  

Sales, Marketing and Customer Service:

 Techno Holdings Ltd has it’s efficient Customer Service Department. This department gives personal attention to each client and is known for the immediate effective action. A warm, friendly atmosphere is created for the client who can make purchase decisions at his/her step without feeling pressurized.

Sl.No Name Designation Date of joining Experience Remarks
01 Md.Mamunur Rashid Asst. Manager (Marketing & Sales) 01/01/09 5years  
02 Md.Tanvir Mahamud Executive (Land) 01/01/10 3 years  

Engineering & Design:

 Techno Holdings Ltd has developed in house design team for architectural, structural, planning & electrical design. THL has three engineers in construction and development team in addition to its Quality Control, Monitoring & Evaluation and Construction management personnel with senior level professionals, engineers, architects, planners trained at home and abroad.

ENGINEERING DEPARTMENT

Sl.No             Name Designation Date of joining Experience Remarks
1 Engineer  Md. Abdul Alim Civil Engineer 01/07/10 5 years  
2 Engineer  Md. Nazrul Alam Civil Engineer 01/07/10 15 years  
4 Engineer Mirza Motiar Rahman Electrical Engineer 01/06/10 4 years  
5 Engineer  Md. Rafiqual Islam Site Engineer 01/07/09 10 years  
6 EngineerMd. Gulam Sarwer Site Engineer 05/08/10 3 years  

DESIGN DEPARTMENT

Sl.No             Name Designation Date of joining Experience Remarks
01 Arch. Tuhin Hasan Architect 01/01/10 5 years  
02 Md. Shahin Aziz Architect 01/01/10 5 years  
02 Md. Masudul Alam Executive (AutoCAD) 07/03/10 3 years  

PROCUREMENT & CUSTOMER SIRVICES DEPARTMENT:

Sl.No             Name Designation Date of joining Experience Remarks
O1 Md. Shah Poran Executive Purchase 01/01/10 10 years of experience in Material procurement.  
02 Abu md. Jubary Customer Care 01/06/10 3 Years  

Staffs

Sl.No             Name Designation Date of joining Experience Remarks
01 Md. Nur Mohammad        
02 Md. Kayum Office Peon 01/06/09 5 years  
03 Md. Nujrul Site Guard 01/06/09 5 years  
04 Md. Ashraful Site Guard 01/03/10 3 years  
05 Md. Ballal Site Guard 01/05/10 1 years  
06 Md. Hashem Sarker Site Guard 08/05/10  1 years  

Activities of the Organization: 

Real Estate Business in private sector mainly concentrated on land development and construction of apartments. “Techno Holdings Ltd” collects land and sell the flat to the people. They construct residential building and sell them to make profit. In order to accomplish the above task the company proceeds in the following ways-

  • The first task to the company is to find out the elite class of the society who are in housing needs. Such class includes the engineering association, teachers association, doctors association, agriculturist association etc. Generally such classes are grouped according to the professions.
  • The next task of the company is to collect the corporate data of the above-identified classes. Generally these data includes the following:

A)    Income Level

B)    Living style

C)    Living standard

D)    Thinking about housing

After studying the potential customers then the company informs them regarding the ongoing projects and also the coming projects in details.

Customer Facilities:

Techno Holdings Ltd is conscious about the facilities for customers beside the projects. The facilities to its customers are:

  • Proper Road facilities beside the project
  • School, college, university and mosque beside the projects
  • Well organized security system throughout the project
  • Availability of Shopping centers beside the projects
  • Availability of health facilities beside the projects.
  • Arrangement of house building loans.
  • Construction of security wall at market price.

Finance & Accounts Department:

Actually this is my department where I directly involved. Because of that I know about everything about this department. Like all other Organization Techno Holdings Ltd follows some Function of accounting. Account division is very crucial and sensitive for the Company. Because the Business does require very frequent financial transaction. The specific tasks are as follows:

Input / form

Voucher

Daily expenditure

Employee information

Department, designation

Salary for employee

Remuneration for director

Overtime and bonuses

 

Output / form

Salary sheet

Net pay

Salary summary

Advance ledger

Advance of date

Bonus sheet

Department wise employee information

Receipt and Payments accounts

Income and Expenditure account

Balance sheet

 

Job Description of an Accountant:

SUMMARY

Apply principles of accounting to analyze financial information and prepare financial reports by compiling information, preparing profit and loss statements, and utilizing appropriate accounting control procedures.

PRIMARY RESPONSIBILITIES

  1. Prepare profit and loss statements and monthly closing and cost accounting reports.
  2. Compile and analyze financial information to prepare entries to accounts, such as general ledger accounts, and document business transactions.
  3. Establish, maintain, and coordinate the implementation of accounting and accounting control procedures.
  4. Analyze and review budgets and expenditures for local, state, federal, and private funding, contracts, and grants.
  5. Monitor and review accounting and related system reports for accuracy and completeness.
  6. Prepare and review budget, revenue, expense, payroll entries, invoices, and other accounting documents.
  7. Analyze revenue and expenditure trends and recommend appropriate budget levels, and ensure expenditure control.
  8. Explain billing invoices and accounting policies to staff, vendors and clients.
  9. Resolve accounting discrepancies.
  10. Recommend, develop and maintain financial data bases, computer software systems and manual filing systems.
  11. Supervise the input and handling of financial data and reports for the company’s automated financial systems.
  12. Interact with internal and external auditors in completing audits.
  13. Other duties as assigned.

ADDITIONAL RESPONSIBILITIES

  1. Develop the annual operating budget and consult with departmental management on the fiscal aspects of program planning, salary recommendations, and other administrative actions.
  1. Provide accounting policy orientation for new staff.

 WORKING CONDITIONS

Working conditions are normal for an office environment. Work may require occasional weekend and/or evening work.

Definition:

Under direction of a Division Manager, performs professional accounting work, including auditing, analyzing and verifying fiscal records and reports, preparing financial and statistical reports, providing information to City staff regarding accounting practices and procedures, and reconciling general ledger accounts; assists in preparing the City’s annual and mid-year budgets; prepares year-end audit reports and schedules; trains and provides technical advice to lower-level accounting personnel, and performs related work as required.

Class Characteristics:

This professional-level Accountant class is assigned to the Finance Division of the central Administrative Services Department. The incumbent works with a high degree of independence in performing accounting and financial activities for the City, the Redevelopment Agency and the Public Financing Authority. Successful performance of the work requires good knowledge of governmental accounting practices and procedures, fund accounting and fiscal management. Responsibilities include direct contact with all

City Department Directors, Division and Program Managers and other staff regarding monthly reports, revenue and expenditure accounts, the automated purchasing and financial reporting system and payroll activities. The class is distinguished from the lower level class of Office Specialist (Accounting), which is a technical support class not requiring the equivalent of a four-year professional degree and has responsibilities of a technical processing nature.

Examples of Key Duties: (Duties are illustrative and not inclusive and may vary with individual assignment.)

  • Prepares journal entries and reconciles general ledger and subsidiary accounts; prepares monthly financial statements, including distributing monthly revenue and expenditure reports to departments.
  • Analyzes and reconciles expenditure and revenue accounts, including trustee accounts and investment reports.
  • Makes wire transfers and journal funding transfers and reconciles monthly bank statements.
  • Monitors grant revenues and expenditures, ensuring data is recorded in the City’s financial accounting system.
  • Calculates and prepares reimbursement billings and tracks receivables; reconciles monthly accounts receivable.
  • Prepares audit schedules for external auditors and acts as a liaison between the City and auditors.
  • Prepares and files annual financial statements for the City, Redevelopment Agency and Public Financing Authority.
  • Assists with the preparation of the annual and mid-year budgets.
  • Assists with the fiscal year-end and fixed asset accounting.
  • Provides training in the use of the City’s computerized financial system and assists departmental personnel with budget questions, proper expenditure coding, document processing and other accounting related activities.
  • Performs other duties of a similar nature or level.

Physical Requirements and Working Conditions:

Must possess mobility to work in a standard office setting and to use standard office equipment, including a computer, stamina to maintain attention to detail despite interruptions, strength to lift and carry files weighing up to 10 pounds; vision to read printed materials and a computer screen, and hearing and speech to communicate in person and over the telephone.

Knowledge of: (at entry)

  • Generally accepted accounting practices and principles;
  • Fund or governmental accounting practices and principles;
  • Auditing practices and principles;
  • Public agency budgeting practices and principles;
  • Computer applications related to the work;
  • Standard office practices and procedures;
  • Applicable laws, codes and regulations; and
  • Techniques for dealing with a variety of individuals from various socio-economic, cultural and ethnic backgrounds, in person and over the telephone.

Skill in: (at entry)

  • Maintaining accurate financial records and preparing clear and accurate reports for informational, auditing and operational use;
  • Reconciling accounts, records, reports and journals;
  • Preparing financial and/or auditor statements, schedules and reports;
  • Interpreting, applying and explaining complex laws, codes, regulations and ordinances;
  • Reviewing and verifying accuracy of data;
  • Maintaining accounting records for special accounts and projects;
  • Making sound, independent judgments within established polices and procedures;
  • Organizing own work, setting priorities and meeting critical deadlines; and
  • Communication to interact effectively with co-workers, managers, subordinates and the general public sufficient to convey information and to receive work direction.

Cost Estimation:

1. Project Name

 

 

:

Niloy
2. Project Location

 

:

 

House no -948/2/C, East Shewrapara, Kafrul, Dhaka.
3. Purpose

 

: Construction of building and sales flats
4. TotalLand

 

: 5.36  kathas
5. Project  area

 

: 3860 S.ft
6. Construction area

 

:  13560 S.ft

 

7. No of Building

 

: 01 = 06 (Six) Storied
8. Number of  Apartment    

 

 

:  

a. Developer  :

b. Land owner:

Number

09

06

%

60%

40%

9. Number of car parking

 

 

 

:  

a. Developer:

b. Land owner:      

Number

06

04

%

60%

40%

10. Size of Apartments

 

 

 

: Type A, 825 s.ft  of 05 Flat

Type B, 835 s.ft  of 05 Flat

Type C, 600 s.ft  of 05 Flat

11. Project starting time

 

:  December 2010
12. Project completion time

 

:  June 2013
13. Project grace period

 

 

:  01 year

STASTEMENT FOR COST ESTIMATION

14. Cost of the project:

SL NO Description Cost Incurred Cost To Be Incurred Total Cost
01 Land (5.36  khathas) 1,500,000.00 Nill 1,500,000.00
02 Consultation 400,000.00 Nill 400,000.00
03 Marketing, Advertising & others 200,000.00 150,000.00 350,000.00
04 Construction   3,000,000.00 18,600,000.00 21,600,000.00
05 Bank Interest Nill 3000,000.00 30,00,000.00
  Total 5,100,000.00 21,750,000.00 26,850,000.00

14. Model of Finance

SL NO Description Cost Incurred Cost To Be Incurred
01 Sponsors equity 4,500,000.00 7,350,000.00
02 Bank Loan             Nill 150,00,000.00
  Total 4,500,000.00 22,350,000.00

15. Debt – Equity ratio                      56: 44

FEATURES & AMENITIES

Each apartment contains the following luxury and specification selected for your convenience ensuring beauty and easy of maintenance.

Bathrooms

1. Floor and wall of all bathrooms will be furnished with Bangladeshi glazed tiles.

2. All porcelain fittings (commode, basin, pan etc) will be BISF or RAK band standard.

3. Commode will be used only in the attached toilet of master bed.

4. All metal Fittings (shower head, towel rail soap case tissue holder, bibcock etc) will be

Sharif  metal.

Floors& Fire Safety

5. 12”x12” glazed tiles (made in Bangladesh)in all over floors

6. 4”skirting will be provide in rooms.

Electrical

 7. 220vpower connection from DESA with separate electric meter (2KW) for each flat.

8. Gang switch and BRB cable will be used.

Doors and Windows

 9. Door frame with mahogany seasoned wood.

10. And shutter will be teak crumple partex flash door.

11. In all bath rooms durable PVC door will be used.

12. 4mmx20mm flat bar grill will be used

13. 3” sliding Thai aluminum channel will be used

14. 5mm thick tinted glass of good quality will be provided in all window shutters.

Wall &Partition:

15. Internal and external 5” thick wall will be made of 1st class brick & salt less white fine sand.

16. Wall surface will be smooth with finished plaster.                                                          

Kitchen Features:

17. Double burner gas point with one gas riser.

18. A single sink, bibcock & a wash corner.

19. One RCC self (12” wide) will be provided.

20. Wall of kitchen will be furnished with 8”x12” glazed tiles up to 7’-0” height

2.7 Painting & Polishing:

21. Plastic paint in all internal walls and distemper in calling.

22. Outside with snowcap painting.

23. Enamel paint in Grill will be used.

Utility Lines:

24. The company will provide 1” water line & sewerage connection to WASA.

25. Under Ground water Reservoir with 20,000 liter capacity.

26. Wall of kitchen will be furnished with 8”x12” glazed tiles up to 7”-0”.

Others:

Generator:

Power generator connection will be provided in each flat.

Intercom:

               Intercom line (kokum set) will provide in each flat to link with guard room.

Cost Details:

Sl.

NO.

Description Area (Sft.) Quantity Rate Per S.ft./Pc Work Already Done Work to be Done Total
        Taka Taka Taka
01 Land Procurement   Lump Sum 1,500,000.00   1,500,000.00
02 Consulting (Architectural)   Lump Sum 3,00,000.00   300,000.00
03 Consulting (Structural) 13560 Lump Sum 50,000.00   50,000.00
04 Consulting (Electrical) 13560 Lump Sum 25,000.00   25,000.00
05 Consulting (Plumbing) 13560 Lump Sum 25,000.00   25,000.00
06 Advertisement & Graphics   Lump Sum 100,000.00 50,000.00 150,000.00
07 Marketing Promotion   Lump Sum 100,000.00 10,0000.00 200,000.00
08 Cost Of Piling 2400 550.00 1,320,000.00   13,20,000.00
08 Cost of Column up to Grade Beam 2260 500.00 1,130,000.00   11,30,000.00
09 Cost of Water Reserve 1 Lump Sum 300,000.0   300,000.00
10 Frame Structure Grade Beam to G.F. Slab 2260 500.00   1,130,000.00 11,30,000.00
11 Frame Structure up to 5th Floor 11,300 500.00   5,650,000.00 5,650,000.00
12 Brick Works up to 5th Floor 14,500 150.00   2,175,000.00 2,175,000.00
13 Plaster Works up to 5h Floor 30,000 50.00   1,500,000.00 1,500,000.00
14 Tiles Works 18000 100.00   1,800,000.0 1,800,000.00
15 Grill Works 4000 100.00   400,000.00 400,000.00
16 Thai Aluminum Works 1800 300.00   540,000.00 540,000.00
17 Wood Works:          
  A.  Main Door 350 400.00   140,000.00 140,000.00
  B.  Internal Door 1800 300.00   540,000.00 540,000.00
  C.  Louvered 125 120.00   15,00.00 15,000.00
18 Plumbing, Sanitary & Sewerage System:          
  A. Water Distribution  System 15000 40.00   600,000.00 600,000.00
  B. Sanitary fittings & Fixtures 7000 35.00   245,000.00 245,000.00
19 Electrical Works:          
  A. Internal   Lump Sum   350,000.00 350,000.00
  B. External   Lump Sum   350,000.00 350,000.00
20 Painting & Coloring 42000 10.00   420,000.00 420,000.00
21 Utility:          
  A. Gas Connection 15 8000.00   120,000.00 1,20,000.00
  B. Wasa Connection 15 5000.00   75,000.00         75,000.00
  C. Substation & DESHA Connection 1     900,000.00 9,00,000.00
  D. Lift 1 10,00,000.00   900,000.00 9,00,000.00
  E. Generator 1 500,000.00   5,00,000.00 5,00,000.00
22 Boundary Wall/Gate/Tank Etc.       3,00,000.00 3,00,000.00
23 Lime Concrete in roof 2270 Lump Sum   200,000.00 200,000.00
24 Bank Interest for Project Loan       3,000,000.00 3,000,000.00
     

 

4,850,000.00 22,000,000.00

26,850,000.00

(Total Taka Two Core Sixty Eight Lac and Fifty Thousand Only.)

The above cost calculated on the basis of present marker rate of construction material and labor charges. During execution of construction work the rate of individual may very from proposed cost structure.

8.0 Project cost and profit analysis:

Profit & Loss Account:

Description Rate per sft. Total Amount (Tk.)
Income from Apartment Tk.4500.00

33,225,000.00

Less Total Construction Cost  

26,850,000.00

                                                              Net profit

6,350,000.00

 Financial Information:

Description Total Area Rate per sft. Total Amount (Tk.)
Earnings From Sale Flat      6750 s.ft

4500.00

33,225,000.00

Total Project Cost 13560

1980.00

26,850,000.00

Construction Cost 13560

1593.00

21,600,000.000

Own Financing  

 

11,850,000.00

Loan from Bank    

15,000,000.00

9.0 Debt-Equity Ratio:

Debt Equity Total Taka Debt : Equity

Tk.150,00,000.00

Tk.11,850,000.00 Tk.26,850,000.00 55.86:44.14

10.0 Cost of the project:

Sl No Description Cost Incurred Cost to be Incurred Total Taka
01 Land ( 5.36 Katha )

15,00,000.00

Nill

15,00,000.00

02 Consultation

400,000.00

Nill

4,00,000.0

03 Marketing, Advertising & Others

200,000.00

150,000.00

3,50,000.00

 

04 Construction

30,00,000.00

18,600,000.00

21,600,000.00

05 Bank Interest

Nill

3,000,000.00

3,000,000.00

  Total project Cost:Tk.=

5,100,000.00

21,750,000.00

26,850.000.00

Total=

Taka Two Core Sixty 

Eight Lac and Fifty Thousand.

11.0 Mode of Finance:

Sl No Description Cost Incurred Cost to be Incurred Total Taka
01 Sponsors equity

4,500,000,00

7,350,000.00

11,850,000.00

02 Bank Loan

 

 15,000,000.00

15,000,000.00

Total Project Cost :Tk=

4,500,000.00

22,350,000.00

262,06,000.00

Debt: Equity Ratio = 56:44

SWOT Analysis

 SWOT Analysis is an important tool for evaluating the company’s Strengths, Weaknesses, Opportunities and Threats. It helps the organization to identify how to evaluate its performance and scan the macro environment, which in turn would help the organization to navigate in the turbulent ocean of competition.

S Strengths
W Weakness
O Opportunities
T Threats

Strengths:

a) Company Reputation:

      THL has already established a favorable reputation in the Real Estate industry of the country particularly among the new comers. Within a period of Four years, THL has already established a firm in the Real Estate sector having tremendous growth in the profits and deposits. All these have leaded them to earn a reputation in the Real Estate field.

b) Top management:

The top management of the Company is also a major strength for the THL and has contributed heavily towards the growth and development of the Company. The top management officials have all worked in reputed Company’s and their years of working experience, skill, and expertise will continue to contribute towards further expansion of the Company. The top management of THL is the driving force and the think tank of the organization where policies are crafted.

c) Market share profitability:

As already mentioned earlier, THL has established a position among the new comers in the Real Estate industry of Bangladesh. They have already achieved a high growth rate accompanied by an impressive profit growth rate. The number of deposits and the loans and advances are also increasing rapidly as sales revenue increases with the increasing of upcoming a lot of new projects.

d) Strong financial resources:

THL has strong financial resources to run the Real Estate business. It is expected that in the near future the Company’s financial resources will get stronger.

e) Team work at mid level and lower level:

THL’s mid level and lower level management do the responsibilities with team works. Many jobs are performed in-groups of two or three in order to reduce the burden of the workload and enhance the process of completion of the job. People are eager to help each other and people in general are devoted to work.

Weakness:

          The size of the market captured by THL is not as wide as the other established companies do. Most of the projects are six to Eight storied building. They have no high rise building. THL works only Dhaka city corporation. The other city corporation have the activities of real estate business Opportunities. But THL does not expand them because of financial shortage.

Opportunities:

       There are more than 550 companies have the REHAB membership. Most of the companies do not work the other city corporations and cannot think about middle class and lower income group people. Most of the companies do not maintain RAJUK plan and cannot handover the project in time. If some companies do, they charge a huge per square feet rate. Most of the companies do not believe the long term installment basis payment policy. So these are the opportunities to the THL to capture this market.

Threats:

         THL considers hundred companies from all REHAB members as it’s strong competitor. These companies minimum costing and below quality service and fraudulent advertisement criteria is the major threats to THL. The other threats are political disturbance, strike, fiscal policy and natural calamities which ultimately destroy the plan of handover the project in time.

Findings:

  • Whole activities of THL is not computerized, still there exist manual record keeping system.
  • Insufficient training program for the employees.
  • Slow in modernization comparing with its competitors.
  • The working environment is not congenial & appropriate.
  • THL tries to maintain  Safety and security, Highest safety standard, Earth quake protection up to 6.But sometimes fail to provide appropriately all these services because of clients bargaining Existing Human Resources of THL is  not sufficient for delivering proper service. They have to recruit more skilled employees.
  • The of per square feet rate of sales revenue and land owners signing money.
  • At THL’s mid level and lower level management, there are often team works. Many jobs are performed in-groups of two or three in order to reduce the burden of the workload and enhance the process of completion of the job. People are eager to help each other and people in general are devoted to work.
  • THL’s financial resource is not enough to run the Real Estate business in a wide view. It is expected that in the near future the Company’s financial resources will get much stronger by venture capital.
  • Real estate business Opportunities are available in other city corporations.
  • But THL does not expand their business because of financial shortage.
  • THL doing promotional campaign to attract their customers. Because of high demand in the market THL does not have to invest lots of money in promotional activities. THL puts their advertisement in the print media. The promotional activities are not enough to cover the whole market in present competitive situation.
  • The key marketing tools which I have found in  Techno Holdings Ltd is given bellow:
  • In some cases -Project type, Land area, Consultant, No of apartments, Size of apartment, Total car parking are not specifically mentioned which ultimately give a negative impression about the company.
  • The company does not follow the service marketing mix at the time of product, price place and promotional strategies.
  • Available packages, Real Estate Business Cards, Company websites, Brochure, Print media, Electronic media, Billboard, Banner. So, It’s marketing strategy is not well designed.
  • General terms and conditions is not mentioned clearly. Because of abstruse sentences sometime clients cannot understand the policy of the company which can give negative result to company.
  • The estimated cost and estimated sales revenue is not appropriately measured. Because the estimation price is lower than the original costing price. Many factors like inflation, government fiscal policy, break in continuous construction, political interruption is not considered at the time of cost estimation. The sales revenue forecast is not match with the original situation. Negotiable-(Bid and Ask) price is charged to the clients. As a result the sales revenue varies with the forecasting. Pricing strategy is not appropriate because the clients bargaining are not satisfied.
  • In Dhaka the housing problem is basically for the lower income people, but the private real estate developers are developing the land for the higher income people. Due to poor load bearing capacity of soil, high-rise buildings are very difficult to build in places being developed by real estate entrepreneurs at present. Hence, low density of residential area is resulting in the form of inefficient utilization of the land resources. Urban area is expanding horizontally without maintaining any guidelines. The unexpected and unplanned growth of residential areas is creating extra problems for the city managers. There is no link between the existing structure plan and the real estate developments. Consequently these projects are creating sheer stress on the planned development of the city. This is also creating polarization in the demand of services and facilities. For the buyers, land hoarding is the main objective to purchase the plots. As a result, the developers develop land for housing to earn more profit, which were used for playground. They are also using place, which were in the lake. On the other hand, buyers keep their plots vacant the new housing projects are creating tremendous impact on the natural drainage of an area. Consequently water logging has become a common phenomenon in this area.
  •  Real estate companies doing their business because of profit. They are not doing their duty for society. They are not doing marketing research in huge manner. They only buying land and develop it and then they sell it to the customers. Because of high demand of housing, customers have to buy the flats or apartments in high cost. Real estate companies are not doing any research to fulfill the high perception of the customers.
  •  Real estate business is one kind of service. So customer satisfaction is very important factor in this sector. Real estate companies are not doing any kind of marketing research but they need to do lots of marketing research to give their better service.

Recommendation:

1        THL should increase more skilled manpower to do its activities more efficiently, so that many of the employees do not have to take mental pressure to handover the projects in time.

2        Adopting the latest office automation is very important for delivering swift customer service as well as continuing smooth activities.

3        Maintaining internal quality management through training to its employees.

4        Inclusion of more subjects based on the effective design and construction and marketing  in the Training courses of the THL Training in order to develop expertise.

5        The authority of THL should give more emphasize on modernization of customer service.

6        It should open a customer care window to update the information about their project’s completion.

7        THL should appoint a sufficient number of women employees to deal with woman clients, professionals or officials & open Women desk to consult with the women because most of the women clients booking their flat for their family.

8        To follow the RAJUK plan for a safe, secured, environmental accommodation. To give the security of apartment buyers that the project will be handover in time and the materials will be used same as the contract is made.

9        THL needs venture capitalist from idle asset holder.

10    To establish and develop a market drives leadership and lays great emphasis on securing of quality business.

11    Through pragmatic and market friendly policies to continue increase in volume of business.

12    Product / Service expansion

13    Provides highest level of satisfaction to customers and appraise feedback by questionnaire.

14    REHAB needs to establish a common market place where buyers both home and abroad will find all products in a single location.

15    Project type, Land area, Consultant, No of apartments, Size of apartment, Total car parking should mentioned specifically.

16    General terms and conditions should be mentioned clearly.

17    The estimated cost and estimated sales revenue should appropriately measured because it will give the idea about pricing that will give revenue and will give the business a clear position.

18    Profit maximization should not be the motto.

19    DAP implementation should be in mind for future generation.

20    To keep in mind the middle class customers and prepare the apartment for them.

Conclusion:

          Techno Holdings Ltd is trying heart and soul to overcome all its lacking and doing marketing research for satisfying their customers. But some real estate companies are not doing marketing research as it requires. So they cannot satisfy their customers and also making lots of natural problem. Though main purpose of the real estate companies is to give the service to the customers then it is essential to do marketing research on their projects. They should strictly maintain regular research program when they start any project.

 Real Estate

Categories
Architecture

Role of Real Estate Sector in Economy of Bangladesh

Introduction

The real estate and housing sector is one of the main drivers of any national economic development and industrialisation. In Bangladesh the real estate has emerged as a critical sector of our economy. It has a huge multiplier effect on the economic activities and therefore, is a big driver of economic growth. It is one of the largest employment-generating sectors after agriculture. This sector has been contributing about 12-15 per cent to Bangladesh’s gross domestic product (GDP). Not only does it generate directly and indirectly 2.5 million employment opportunities, but it also arouses the demand for over 250 ancilliary industries e.g. steel, cement, tiles and sanitary ware, cable and electric ware, paint, glass and aluminum, brick, building materials, consumer durables and so on. In addition, the real estate and housing sector is contributing 12 per cent to 15 per cent to the national GDP and the annual turnover about Bangladesh Taka (BDT) 20 billion.

We all know that housing is one of the very basic rights for every citizen in the country, after food and clothing. To meet this fundamental requirement, the private real estate and housing developers of Bangladesh strategically initiated real estate development venture, a couple of decades back, to solve rapidly the growing urban housing problem along with the government. Consequent to the government’s policy of supporting private sector initiative in this thriving sector, there had been an impressive boom in investment and developmental activities. The sector witnessed the entry of many new domestic realty players.

With the passing of the  Toma GROUP expanded its business activities and undertook various project in different fields . Toma Properties Ltd. has been one of the leading Real Estate Development Companies of the country. To its credit, it has completed and undertaken a number of Commercial and Residential projects including Satellite Townships. The company maintains a team of highly qualified and experienced personnel diligently working together to maintain ‘Decent Living for the Teeming Millions’. With the Corporate Theme “Leadership with Excellence”.

Origin of the Report:

Since practical orientation is an integral part of the BBA degree requirement, I was deputed by the  Department of Bachelor of Business Administrationfrom State University of Bangladesh to  Limited to take real life exposure of the activities of the organization as a Toma Properties Ltd. This report has been originated  the course requirement of the BBA program. I hope the report will give a clear idea about the present real estate market.

Objectives of the Report:

Generally every study is conducted to find one or mere findings, if the findings are predetermined they called the objectives of the study. The main purpose of my study is to evaluate the Land & Flat Pricing in Bangladesh. Thus the main objectives of the study are as follows.

  • To show overall Sceneries of Real Estate Market and Opportunities in Bangladesh.
  • To analyze the Present Real Estate Market Scenario.
  • To define the Pros & Cons of Real Estate in Bangladesh.
  • To determine the Pricing Strategy.
  • To identify Problems faced by the customers as well as the marketers .
  • To Identify the Reason behind the Real Estate Boom.
  • To analyze the Present  Real Estate of Bangladesh & South Asian Countries.
  • To analyze the present flat sales decrease.
  • To put forward some recommendation in the light of the problems identified.

Methodology of the study:

The Report has been made on the basis of the objectives mentioned Role Real State  in  Economy of Bangladesh ( A Study On Toma Properties Ltd) .The paper  will  be  written  on  the  basis  of  information  collected  from  primary  and secondary sources.

Primary Sources : Discussion with the respective organization’s officials.  For the completion of the present study.

The main sources of secondary sources are:

  • Website of Toma Properties Ltd.
  • www. Rehab-bd.com.

 Scope of the Report:

The duration of the study was Three months. This is an individual study, which is worked for this particular study under my internship program supervisor. Since this is a formal study, the scope of the study was not so detail. I just tried to give an overall scenario of the Real Estate Market and Opportunities as well as an actual market image in Bangladesh. The study covers overall Real Estate scenario of Bangladesh & South Asian countries and all the data are collected from the Internet & Website of Toma Properties Ltd, www. Rehab-bd.com and from other paper which are mainly secondary sources.

Limitations of the Study:

  1.          I.            Time constraints: Limitation of time was one of the most important factors that imposed restriction on conducting the study extensively. Due to the time limitation many aspects could not be investigated in the present study.
  2.       II.            The dearth of Secondary data: In Bangladesh there is an acute dearth of secondary data in every sector. The Real estate sector is not exception to this. The amount of secondary date needed to thoroughly investigate the study was scarce. Thus, it depreciated the authenticity of the findings of this study.
  3.    III.            Privacy: It was not possible for me to collect some information that companies considered to be confidential of them, sales figures, profit margins, current assets, net income were important ones.
  4.    IV.            Lack of Experience: As an apprentice, it was not possible for me to apply sophisticated statistical tools and techniques to analyses date. Had these techniques been applied, more detailed and authentic finding could have been derived.

 Overview of real estate Sector in Bangladesh

Real Estate Business in Bangladesh: At a Glance

DhakaCity, born during the Mughal Empire and grown with the British rule, is expanding rapidly. From the beginning of the 20th Century its growth and latter development is marked with sheer lack of proper and far-reaching planning. The impact is now being felt at the beginning of the new century. DhakaCity is undergoing terrific growth phase throughout the last two decades.

Urbanization is an outcome of both population growth and rural-urban migration. As urbanization increases, more and more people are becoming city dwellers. Bangladesh is not any exception to this picture. In Bangladesh, the problem of urbanization is further aggravated by limited land supply in urban areas, lower land utilization and lack of proper planning and land use policy. As globalization increases, the process of urbanization increases. The ever increasing urban population is creating an increasing demand for shelter. The UN declaration and the constitution of Bangladesh recognize the right of shelter (REHAB, 2003). But being a government of the poor developing country, it is almost impossible on the part the government to ensure housing for all.

As public sector failed to ensure their right, people have taken their own initiative to ensure their fundamental need for shelter. This paper is an attempt to observe how private developer and real estate companies are influencing the urbanization pattern with special reference to Khulna and to provide some guideline for sustainable development of this sector.

  The current trend of urban growth in Bangladesh is about 5-6% per annum. At present 28% of Bangladesh’s population live in urban areas, which will be 34% by the year 2025 (REHAB, 2003). The present estimated population of Khulna is 1.2 million and estimated growth rate is 3.8% per annum (USAID, 1999). The Real estate developers are playing the vital role regardless of high, middle, and low-income people since the past two decades in providing the housing provision. Considering this situation, this paper is to identify the role of Small Scale Private Real Estate Entrepreneurs (SSREE) in providing the housing facilities for the growing urban population and how these SSREE are influencing the growth pattern of the city.

  In our country large scale Real Estate Business in private sector started gaining momentum from the beginning of 80s. It was initially started by some good entrepreneurs but gradually profit margin allured in a group of unscrupulous and notorious people.

 The initial concept of real estate finance in Bangladesh evoked probably in the hand of Eastern Housing Limited by undertaking their first land development project for housing in Mirpur area of Dhaka city known as “Pallabi” Project”. It was around 1950’s. During 1970’s apartment development got gross acclamation by the middle class city dwellers and by the late 1980’s it was an established ordinary deal among all levels of income group. And at present, the concept of real estate is getting expanded not only around developing apartments but also model cities, shopping malls, major infrastructure, commercial set-up with elaborate view of high profit margin.

Real Estate business took off in Bangladesh in 1970 with only five registered firms. From the early 1980s the business started to flourish and showed robust growth. By 1988, there were 42 developers in business. At present, more than 1500 companies are active in the real estate sector with 1081 of them registered with REHAB (Seraj, 2012). In the last four decades private developers have supplied more than 100000 units of apartments to the nation and will be supplying 25000 more units in the next three years .

Preamble: Urbanization is an outcome of both population growth and rural-urban migration. As urbanization increases, more and more people are becoming city dwellers. Bangladesh is not any exception to that picture. The ever-increasing urban population is catering an increasing demand for shelter. The right of shelter is a fundamental right, which is ensured by both UN declaration and the constitution of Bangladesh. But it is very difficult on the part of the government of Bangladesh alone to ensure housing for all. Here comes the need of private sector real estate development.

                   It is a recognized fact that the health of the Real Estate Development Sector is the barometer of the National economy. In Bangladesh Real Estate Business started in Dhaka in late seventies. During 1970s there were fewer than 5 companies engaged in this business. In 1988 there were 42 such developers working in Dhaka and now in 2013 there are about 800 companies engaged in this business.

YEAR

COMPANY GROWTH

1970

5

1998

42

2003

250

2013

1081

Table: 2.1 Real estate Company growths.

Service Provided by Rehab for the Members

  •       Ensure quality of the construction.
  •       Market promotion activities by arranging fairs.
  •       Create authenticity in the mind of customer.
  •       Create policy for this industry.
  •       Negotiate with the government and other associations on behalf of the members
  •       Handle mutual dispute among the members.

The main reasons why real estate business developed in Dhaka city are as follows:

a) Scarcity of open space in the important areas of the city.
b) Hazards of purchasing land
c) Hazards of construction of building.
d) Rapid increase in population of Dhaka.
e) Decrease in the rate of bank interest.
f) Price of land and apartments is increasing day by day.
h) Open Market Economy. Remittance of foreign currency is very easy.
i) Security.
j) Service facilities such as garbage disposal, central satellite TV connection,

Overview of Toma Properties Ltd.

Toma Properties is an innovative property developer with a fresh approach to development, focusing on creating eco-friendly and architecturally unique property havens for living. Every project we undertake is based on the ethic that we have an principal responsibility to preserve the heritage and social values of the communities as well as the beauty of the locality.

A flagship company of “Toma Group” it has Toma Construction & Co. Ltd. who are well known for quality construction, loyalty and commitment. At Toma, we are committed to blend innovative architecture with an unflinching commitment to preserve and add to the natural habitat in Dhaka and all our destinations.

Toma Properties has always maintained an extremely high degree of integrity and a reputation for professionalism & honesty. Our public image and reputation are paramount, and this is reflected by the staff who are expected to present a professional attitude at all times in their dealings with the public, their clients and their team-mates. While our goal is always to provide exceptional service, our philosophy is based on customer care with a focus on building relationships with everyone who deals with us.

Toma Properties Ltd

Year of Inception                       : 1996-97
Company Type : Private Limited Company
Current Position in the Industry : Market Challenger
Name of the Chairman : Mr. Mohd. Ataur Rahman Bhuiyan
Number of Directors : 02
Financial Year : July to June
Number of Total Employees : 1000 App.
Membership of Stock Exchange : No
Corforate office : : TomaTower ( 4th floor And 6th floor ),77/1                              karail , ramna, Dhaka -1000.
Contact: : Phone: +88 02 833366,8333183
Email: : tomapropertiesltd@gmail.com
Web Address: : www.tomagroupbd .com

Table: 3.1 Company Profile.

Vision of TPL

  • To maintain the highest standards in developing commercial properties.
  • To maintain the highest standards in developing homes for individuals.
  • To create safe homes.
  • To provide a fine blend of the traditional and contemporary design.
  • To provide feeling of living in a home with ultimate comfort.
  • To provide professional and personalized services of the highest integrity.

 Mission of TPL

  • Maintain outstanding service to its clients.
  • Maintain a high standard of quality of finish.
  • Maintain a safe environment.
  • Maintain value for many.
  • Continue good communications procedures.
  • Continue to promote a sense of corporate identity within all the staff team.
  • Continue to provide staff training to providing Excellence Customer Care.
  • Continue develop ‘Brand Name’.

 Goal of TPL

Dhaka is a densely populated city but with inadequate housing facility and quality of life, especially for the middle & lower middle class people. Tropical Homes Ltd. is committed to improve the quality of life of these people by offering good quality, low cost apartment affordable to all of customers.

 Objectives of TPL

Our objective is to create vest employ, make urbanization with modern facilities which will ensure safe environment and where quality will not be compromised. Innovation, dynamism and perfection lead us to ultimate satisfaction of our customers and that is our objective.

With the passing of the Toma GROUP expanded its business activities and undertook various projects in different fields. At present the group owns following companies:

 Toma properties

Toma flyover

Railway

Factory & plants

Roads and highway

Toma Properties Ltd. has been one of the leading Real Estate Development Companies of the country. To its credit, it has completed and undertaken a number of Commercial and Residential projects including Satellite Townships. The company maintains a team of highly qualified and experienced personnel diligently working together to maintain ‘Decent Living for the Teeming Millions’.

Upcoming Project: 7

Ongoing Project: 11

Completed Project: 4

Project name Address Land area Khata Height Toma Available Floor Toma Available Units Size (sft) Final Minimum Rate Target Hand over
Presidency park Dhanmondi 21 13 4675 18500 15-Dec
Angilico Shahajanpur 7 9 1070 6000 16-Jun
Orchid Khligaon 10.1 10 1035 5500 16-oct
Samad villa Sipaheebag 13.83 9 1410 4400 16-Dec
Rahman manjil Shahajanpur 6.75 9 1150 5200 15-Dec
Firozaloy Malibag 7.25 10 1320 5000 15-Dec
Khan heritage Malibag 12 9 1320 4400 13-oct
Dada tower (residential) Misssion road 16.7 15 1373 6500 16-Dec
Sun flower Uttra 3 6 1640 5800 15-jun

Table: 3.1.1 Some ongoing projects.

  • RCC Beam and Column frame are structured according to the American concrete Institute (ACI) and Bangladesh National Building Code(BNBC)
  • All apartment are face to south.
  • Green trees are available a long with the architectural beauty .
  • Most of the apartment contains 5 becomes.
  • Mosque is available adjacent to the apartment.
  • Long term installment facility.
  • Apartment hand over within three years
  • Loans facility of DBH and National Housing.

Toma Group holds the pride of being one of the largest and most prestigious specialty company  for Construction as Contractor at Bangladesh Railway for their various projects including Railway Tracks, Railway Station & Building Infrastructures, Bridges and Culverts Stations, Go-downs, Junctions etc. Accordingly, we have specialized teams of Railway related Engineers, Heavy duty Machineries and Logistic Equipment to cater any services regarding the issue. So far,  we have successfully undertaken and constructed number of projects relating to Railway all over the country with dignity, accuracy and commitments and proved ourselves worthy to undertake any in future challenges for this sector.

Table: 3.2 railway project.

Ongoing Projects of Railway Project (Short Listed):

Our On-going projects are even more exciting, complicated and prestigious than before opening up more avenues of experiences and possibilities. All these projects are continuing in full swing according to schedule with their respective manners of Contracts.

Table: 3.3 railway ongoing project .

Our On-going of Great Maghbagar Flyover projects are even more exciting, complicated and prestigious than before opening up more avenues of experiences and possibilities. All these projects are continuing in full swing according to schedule with their respective manners of Contracts.

Gallery of Great Maghbagar Flyover Project

This is a specialized factory for production and supply of Pre-stressed Concrete Sleepers & Turnouts at our Railway projects. The Plant comprises of manufacturing prestressed concrete sleeper and turnouts for Railway. The location of the factory is at Durmut, Jamalpur district, on the northern belt of the country with more than 5.50 acres of land utilized for different installations including Factory sheds to support – Plants, Godowns, Batching plant, Casting plateforms, Steam Curing chamber, Equipment house, Laboratory, Water curing chamber etc. with more semi sheds for – Stone crusher plant, Sand & Stone stacking yards.

DG/BG/MG turnouts, switch expansion joint & static switches are manufactured in our plant which are also used in Bangladesh Railway. Present annual productions are as under.

DG Prestressed concrete sleeper           :               1,00,000 nos/year

BG Prestressed concrete sleeper           :               40,000 nos/year

MG Prestressed concrete sleeper         :               2,50,000 nos/year

Turnouts DG                                          :               26 Sets/year

Turnouts BG                                          :               60 Sets/year

Turnouts MG                                         :               80 Sets/year

Our On-going of Dhaka and chittagang  4 lan  projects are even more exciting, complicated and prestigious than before opening up more avenues of experiences and possibilities. All these projects are continuing in full swing according to schedule with their respective manners of Contracts.

The company We have a state of the art Ready Mix Concrete Plant at Dhaka with modern amenities to meet high grade concrete requirements for any under construction sites. With 4 (four) Mixture Trucks each having a capacity of 5 cubic meter of concrete is always ready to deliver concretes at any corner at any given time. The plant it-self has a capacity of 110 cubic meter of concrete in 8 hours of shift per day which can be applied with a 100 meter vertical concrete lifting pump.

Financing Strategy: Details of expenses are given in the paragraphs above and annexure for which we will require startup capital or financing. Financing will be needed for buying Raw materials, supplies, computer, equipment & fixtures, tools, travel expenses, salary/wages etc. These expenses are included in our mon TPL cash flow projection to indicate the ongoing requirement of cash. Our sources of finance will basically be the money of Directors, Bank and the Down payments of the buyers.

MS road fabrication 60 grad ROD work for 100kg

Sl No

Name of Item

Quantity

Unit

Rate in Tk.

Amount in Tk.

01

M.S. Rod (60 grade)

101.00

Kg

65.00

6,565.00

02

GI Wire

1.00

Kg

65.00

65.00

03

Labour For Rod Binding

100.00

Kg

7.00

700.00

04

Local carriage, T & P etc.

L.S

50.00

05

Sub Total=

7,380.00

06

Contractor’s Profit

10.00%

738.00

07

Overhead Expenses

3.50%

258.30

08

TK.

8,376.30

09

VAT

5.82%

487.50

10

Grand Total=

8,863.80

Table: 3.5 MS road fabrication 60 grad ROD work for 100kg                                                so, rate per sft 88.64

For 100 sft work Plastic work

SL No

Name of Item

Quantity

Unit

Rate in Tk.

Amount in Tk.

01 Sand (F.M 1.2) with screening

8.25

Cft

14.50

119.63

02 Cement

1.10

Bag

460.00

506.00

03 Labour

100.00

Sft

10.00

1,000.00

05 Curing,Carriage,Sundries

LS

300.00

300.00

08

Sub Total=

1,925.63

09

Contractor’s Profit

10.00%

192.56

10

Overhead Expenses

3.50%

67.40

11

TK.

2,185.58

12

VAT

5.82%

127.20

13

Grand Total=

2,312.79

Table: 3.6 Paint work.                                                               So , rate  per sft 23.13

SL No

Name of Item

Quantity

Unit

Rate in Tk.

Amount in Tk.

01 Picket

860.00

No

7.50

6,450.00

02 Picket breaking

860.00

Nos

0.80

688.00

03 Bricks Chips Screening

83.00

Cft

1.60

132.80

04 Local Sand (F M 1.2) With Screeening

23

Cft

14.50

333.50

05 Sylhet Sand (F M 2.5)With Screening

23

Cft

32.50

747.50

06 Cement

22

Bag

460.00

10,120.00

07 Labour for casting

100

Cft

14.00

1,400.00

08 Labour for 28 Days Curing @1/4 Per Days

7

Nos

300.00

2,100.00

09 Local Carries,Sundries

1.00

LS

300.00

300.00

10

Sub Total=

22,271.80

11

Contractor’s Profit

10.00%

2,227.18

12

Overhead Expenses

3.50%

779.51

13 TK.

25,278.49

14

VAT

5.82%

1,471.21

15

Grand Total=

26,749.70

Table 3.7: RCC work                                                              So, rate per sft 23.13

Paid land Owner

12,000,000.00

Media fee

361,850.00

Construction

55,000,000.00

over haed of site

2,000,000.00

Financial cost

3,500,000.00

Total cost

7,2861,850.00

Table: 3.8 Cost analysis of a project

Cost analysis of a Project (Haque villa)

The required documents for availing Housing Loan are given bellow. To know details about loan one can get information from Head Office  Loan Department and Zonal and Regional Office, if needed. It is earnest request to valued borrower to inquire details about instalments, rate of interest, ways of repayment system, and ways of disbursement etc. before availing loans as ours is a trifle dissimilar from others.

 Kinds of Credits: 

There are seven kinds of Housing Loans are being disbursed.

  • General Loan : It will be availed by single person or spouse.
  • Group Loan : Flat wise loan for a single plot of Multi owner will be availed.
  • Flat/ Apartment Loan : Flat/ apartment loan  are half completed/ under constructed will be availed.
  • Extension Loan : This kind of loan will be disbursed to complete extensive part of a constructed building under approved design.
  • Loan for Middle and Lower-Middle income group of people : The sort of loan  is provided to build  flat of 550 to 1000 square feet.
  • Semi-Pacca Loan : Except Metropolitan Areas and DistrictTowns, this kind of loan is provided to build semi-pacca houses in Upazila and Growth Centre/ Commercial area
  • Short tern Special Loan: This kind of loan is provided to build the ending or incomplete part of constructions.

 Loan Disbursed Areas:

At present the corporation is providing loans to all MetropolitanCities, DistrictTowns, Upazilas and other GrowthCenters/ Commercial areas of the country. Very recently the corporation has extended loan activities to the suburb of many Upazilas

The ceiling of loan is determined according to the value of plot, location, surrounding, and standard of construction and estimated rents of the house.

SL. No. Name of the Area Highest Ceiling (Tk. In Lakh) Construction Rate in per sqft (in Tk) Investment of Borrower (minimum)
1. Dhaka & Chittagong Metropolitan area 50.00 Ground floor of R/A- 2150, Garrage- 1660, Top floor-1350. 20%
2. Divisional Town of Khulna, Barisal, Rajshahi, Sylhet & Rangpur 45.00 Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230. 20%
3. City corporation area of Comilla, Narayanganj,Gazipur, Mymensing, District town of Moulvibazar & Municipal area of Tongi & Savar. 40.00 Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230. 20%
4. Other ancient district town, Cantonment board of Savar & other Corporation’s area of Regional Offices. 35.00 Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230. 20%
5. New DistrictTown 30.00 Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230. 20%
6. All Upazilla town & Municipal area. 25.00 Ground floor of R/A- 2048, Garrage- 1580, Top floor-1230. 20%

 

 

Table: 3.9 Housing Loan.

 Repayment Period of Loan & Interest Rate:

Along with IDCP, interest, capital the installment is calculated for 15  years (for general loan) or 180 installments and 240 installments within 20 years for the scheme of middle and lower middle income group while 60 instilments within 5 years for short term special loan. The rate of interest is 12% for Dhaka & Chittagong Metropolitan area and 10% for other area.

Monthly Installment for Taka 1 lac
 Loan Period  Rate of
Interest
Principal Interest Total
15 Year 10% 555.56 418.98 974.54
15 Year 12% 555.56 502.78 1058.34
20 Year 12% 416.67 502.08 918.75
20 Year 10% 416.67 418.40 835.75
05Year 10% 1666.67 423.61 2090.28
05 Year 12% 1666.67 508.33 2175.00

 

Table: 3.10 Installments

In case of Non government and private plot the required documents will be provided with the formal application given below.

Statistics of Loan:

After the establishment of Corporation in the financial year of 2011-12 the total sanctioned loan amount is 4694.74 crore and the total disbursed amount is 4103.53 crore.  Up to December, 12 the Corporation has disbursed loan to 73038 borrowers and the sanctioned loan is 4312.40 core. The number of constructed housing units is 182102. The total balance is 2678.65 crore taka.

(Taka in crore).

Financial Year

SanctionDisburse2007-08226.06146.212008-09236.58242.612009-10250.00233.422010-11258.86224.332011-12336.64294.84

 

Table: 3.11 Statistics of housing loan.

Strength:

  • Brand Image
  • Modern Technology
  • Quick Handover
  • Own Construction Products

Weakness:

  • After Sales Service
  • No assistance in getting loans
  • Lack of motivation of workers

Opportunities:

  • Pay more attention on research and development advertisement
  • Competitive advantages
  • Brand name recognition
  • Rapid growing ability
  • Relationship management

Threats:

  • Land Acquiring
  • Political Instability
  • Competitive price skimming
  • Customer awareness of pricing and service
  • Growth of competitors
  • Some unscrupulous real estate developer companies
  • Amin Mohammad Foundation Ltd.
  • Asset Development & Holdings Ltd.
  • The Structural Engineers Ltd.
  • East West Property Development (pvt.) ltd.
  • Concord Condominium Ltd.
  • Building Technology & Ideas Ltd.
  • Eastern housing ltd
  • Rangs Properties Ltd.
  • Navana Real Estate Ltd.
  • Oriental Real Estate LTD.
  • Sheltec Ltd.
  • Suvastu Development Ltd.
  • Rupayan.
  • ABC REAL estate ltd.
  • Mega builders ltd.

In the real estate industry there are currently more than 800 firms including both commercial and residential developers. Thus it is quite though for one firm to sustain the top position. Competition among apartment business is not so fierce since apartments in suitable locations never go unsold. Here competition is stronger in acquiring desired land than customers. However, all the companies we are working with deal with apartments and the total size of the market for apartments is around 6000-7000 units per year.

Marketing process consists of four distinct ways that circulates one after another. Through these activities the company watches & adapts to the actors & forces in the marketing environment. We will look briefly at each of the elements & analyze firms’ standings taking each of the steps as a basis of evaluation. At a glance the means are-

  1. Analyzing the marketing opportunities
  2. Selecting target markets
  3. Developing marketing mix
  4. Managing marketing effort

This is a center of a cross road where firms need to go for success, which will be the market segment they will serve. A market segment consists of consumers who respond ion similar way to a given set if marketing effort. There are some bases of segmentation and farms credit is in finding up the most effective way of segmentation. For real estate in Bangladesh income based segmentation is the mostly practiced whereas – area or geographic based, type-e of family based segmentation are also meaningful. However most the companies proceed with following steps-

  • Market segmentation
  • Target marketing
  • Market positioning

In real estate business all the companies offer almost the same product –

                                             a) Land

                                             b) Apartment.

Some companies sell only one and some companies sell the both. In all the cases, service is the same; Accommodation. The variety of the product does not offer any distinction among the companies.  The distinction arises here from the following characteristics of land and apartment-

                                                 a) Variety

                                                 b) Quality

                                                 c) Design

                                                 d) Features

                                                 e) Brand name.

These features found within an apartment complex can be –

           a) Shopping centers

                                               b) Community centers

                                               c) Mosques

                                               d) Sports zones

                                               e) Dry cleaners etc.

In case of buying lands , the main distinction drawn by customers is as to quality which is actually goodwill of the companies. The features mentioned above can also be important in this aspect.

The main aim of a promotion is to obtain retain customers which involves informing, influencing and persuading customers. There was a time in business where there was no need for any advertising of any sort. But in today’s world no business can exist, much less prosper. Without advertising of some way to reach customers before and more effectively than competitors do. RES industries consequently have a strong advertising program. The marketing activities that they have already taken are-

  •         Print Media
  •         Electronic Media
  •         Site Billboards
  •         References
  •         Direct mail
  •         Fair
  •         Personal selling

When a company reaching the target segment as well as the degree of coverage is the main concern, daily newspaper is the best option. About 100% of these target customers read the newspaper every day. Someone thinking of buying a flat will keep his/her eyes open for advertisement of apartments when reading the paper every morning. About prominent Real estate companies place individual Ads every week method of promotion is arguably the most effective one.Electronic media basically, TV channels are one of the important parts of our present life. RE companies provide different lucrative and emotional Ads on electronic media. That’s impact also positive. People are also enthusiastic on telecommunication media. They call RE companies directly in paper. So, the most impacts for sales increasing are electronic media and newspaper.

Building and maintaining profitable customer relationship is essential in business for dealing it successfully. In modern business, it is more than essential. A fully satisfied customer is willing to pay more for the product with which he or she is satisfied. To satisfy the customer, the companies have to value the customer’s needs and wants and make products from which they can get their perceived value.

Contribution of Real Estate in Bangladesh Economy

Over the last 15 years the Real Estate development sector has made significant contribution to many sectors of our economy.

 GDP at real estate and Renting and other business Activities.

Year

2009-10

2010-11

2011-12

Million taka

45683

50337

55546

 Table: 4.1 GDP at real estate and Renting and other business Activities.

 Growth rate of construction sector.

Year

2008-09

2009-10

2010-11

2011-12

Percentage

6.00

6.01

6.51

8.51

 Table: 4.2. Growth rate of construction sector.

 GDP Contribution Trend Analysis: The sector wise share of Real Estate, Renting and Business Service sector to the national

 Table 4.3 :GDP Contribution Trend Analysis

 Contribution in the Government Exchequer Including Advance Income Tax, Vat and Registration Fees.

The Real Estate sector contributes to the Government exchequer through Registration Fees, VAT, Advance Income Tax (AIT), Stamp Duty, Property Handover Tax etc. The following table shows the contribution to the government regarding flat and apartment purchase in Dhaka.

Table 4.4: Contribution to the govt. from 2006 to 2011 in Dhaka

 According to the new rules, along with a gain tax of 2% (which was 5% till 2007) and stamp duty of 3% a customer is required to pay registration fees to the government, city-corporation and sub-registry office in the rates of 2% (which was 2.5% till 2009), 2% and .05% respectively bringing registration expenses down to a total of 9.5%. A customer also needs to pay an AIT of maximum Tk. 2000 for each Sq. meter of floor space and a VAT of 1.5% pulling cost of acquiring an apartment substantially up.

 Direct Employment:

Real Estate generates huge employment opportunity. It may be direct or indirect In Bangladesh around 2, 50,000 employment generated by this sector.

  • Architects: 2000
  •  Graduate Engineer: 10000
  •  Diploma Engineer: 24000
  •  Management Official: 20000
  •  Direct Labor Skilled & unskilled: 2 million (20 Lac).

 Table 4.5 : Labour Force scenario

The construction industry is a labor-intensive industry, whose capacity of absorbing labor is great. The industry provides many jobs for skilled, semi-skilled and unskilled workers both in the formal and informal sectors. For the migrants from the rural areas the construction industry is often a stepping stone to urban life. Real Estate sector is a major part of the construction sector. Most of the labour force engaged in the construction sector is basically engaged in the Real Estate sector. The following table shows the labour force engagement to the construction sector from 1999 to 2010.

 Bank Loan Scenario

The following table shows total amount of loan disbursed on the Real Estate sector from the Banking sector of Bangladesh during the period from June 2006 to June 2011.

Major reasons for preferring any particular area are:

      More planned area (Uttara, Bashundhara, Dhanmondi, Gulshan)

      Ease of communication with office, school, college etc

      Personal choice

      Residing at that area for a long time and have relatives in that area

      Less expensive (Mirpur, Mohammadpur, Uttara)

Usage of Undocumented Money

Undocumented economic activity holds a large portion of the national economy of Bangladesh. Undeclared income could account for up to 80% gross domestic product – some US$110 billion, Agence France-Presse reported this month, citing a new Finance Ministry study (Chowdhury, 2011). Black or undocumented money is kept in different forms and shapes. Black money is kept deposited in local or foreign banks, Real Estate sector, invested in the purchase of shares and stocks, purchase of different saving instruments, sometimes transferred through unofficial channels and is invested outside the country, and also kept in the form of cash, gold, jewelry etc (Waresi, 2010). In Real Estate sector, black money is utilized in acquiring land, apartments, buildings, shops etc. These are often acquired in the names of relatives, friends or trusted men of the black money holder (Waresi, 2010). But the usage of undocumented money in the Real Estate sector cannot be measured precisely because no authentic information is available anywhere.

Reasons behind Increasing Apartment And land Price in Bangladesh

Reasons of Apartment Price Hike

The price hike of apartments is a major and debatable issue in the Real Estate sector of Bangladesh. The Real Estate developer companies are criticized of charging a lot of money for an apartment. But from the above discussion, it is obvious that, in recent years, apartment price increased due to the unimaginable increase in land price as well as sharp increase in prices of the construction materials. The following figure shows the combined effect of price hike of land and construction materials on apartment price. The percentage increase in prices is calculated using 1990 as the base year.

So, from the above discussion, it is clear that, price hike of apartments was obvious in the last few years. The Real Estate Developers were bound to increase their price to cover the cost of a project.

First reason Land Price  increasing in Dhaka city

 Table 5.1: Price of Land (Taka/ Katha) from 1990 to 2010

In the first decade of 21st century, the price of per katha land increased unbelievably almost all over the Dhaka city. Compared to the price increase of the earlier decade, the percentage increase in price almost doubled, and in some areas it is three times to ten times the earlier price.

Land price whole countries

Land price compare within the country by Katha

Land Area         Taka
Agriculture land         50,000.00
Union (bazar)       250,000.00
Thana (bazar)       600,000.00
District(shodor)     1,000,000.00

On carefully analyzing the land value trend of Dhaka City and the suburbs for the last thirty years, a number of causes of high land value have been identified as follows:

  •       Lack of investment opportunity in other sectors of economy.
  •       Rapid urbanization and consequent scarcity of urban land.
  •       Uncontrolled land market.
  •       Lack of comprehensive land policy.
  •       Inappropriate taxation policy.
  •       Political instability.
  •       High rate of inflation.
  •       Land speculation and the role-played by brokers.
  •       Land ownership being regarded as a symbol of social prestige.
  •       Land purchase by real estate developers.

 PRICE HIKE TREND OF SOME MAJOR CONSTRUCTION MATERIALS

To analyze the apartment price hike scenario, the price hike trends of some major construction materials are analyzed. They are,

  • Bricks
  • Fine sand
  • Granular sand
  • 60 grade Rod
  • Cement

A lot other construction materials are required to develop a Real Estate project, but only the above five are analyzed due to the availability of historical data. Data regarding other construction materials are not available.

Price Hike Trend of Bricks   and Price Hike Trend of Fine Sand

The following figure shows the price hike trend of  brick and fine sand from 1990 to 20112.

  • After 2005, price of bricks had a rapid, almost exponential, increase.
  • After 2004, price of fine sand had a rapid increase. Then at 2008, the price fall down a little, but then again at 2010 there is a sharp rise in per cubic feet price.

 Price Hike Trend of 60 Grade Rods

After 2002, price of 60 grade rod had a rapid increase. Then at 2008, the price fall down a little, but then again at 2010 there is a sharp rise in per ton price of rod.

Price Hike Trend Cement

After 2002, price of per bag cement had a rapid increase. Then at 2008, the price fall down a little, but then again at 2010 there is a sharp rise in per bag cement price.

Price of construction materials from 1988-2013

Price of construction materials from 1988-2013

Year

Price of Brick  per piece (Tk)

Price of Sand, per sq. ft. (tk)

Price of Cement per bag(tk)

Rod, per ton (Tk)

local

Sylhet

1988

1.00

3.60

5.25

105

11,000

1998

2.00

7.10

9.00

182

17,500

2000

2.50

7.80

10.50

193

21,300

2004

3.25

9.00

15.00

240

37,000

2005

3.15

8.00

22.00

283

39,700

2006

3.90

9.00

20.00

313

42,700

2007

4.20

9.50

21.50

337

49,200

2008

4.80

10.00

22.00

345

50,000

2009

5.20

11.00

22.50

355

51,500

2010

6.00

13.00

25.00

370

53,700

2013

8.00

14.00

34.00

345-390

56000

www.muktoakash bd.com

Interest Rate is Very high of the Bangladesh

Interest rate of housing among the countries

 Country nameInterest rate Bangladesh12%-16% India8%-10% Pakistan9%-10% China4.14%-5.76% Japan2.37%-3.05% Malaysia6%-6.60% USA4.86%-6.00% UK5.25%-7.39% Australia7.34%-8.22% France3%-5% NewZeeland7.25%-9.25%         Source: Copyright (R) thedailystar.net 2012

Table: 5.3. Interest rate of housing

Fourth Reason Increasing urbanization in Bangladesh

Statistics & studies show that in 2000-2015, urban growth rate is expected to be at an average of 3.7 for Bangladesh. India, one of the most attractive markets of global real estate, is expecting 4.9% growth of urbanization. Moreover which India is estimated to have 36% people living in urban areas by 2015, Bangladesh is expected to have 34%. The scenario is further evident by the per square kilometer population density growth in Graph-4.

 APARTMENT PRICE HIKE TREND IN DHAKA CITY

The apartment price mainly depends on two parameters:

  • Price of the land, and
  • Construction cost of the apartment

Increase in land price and price of the construction materials automatically results in increase of apartment price. In this section, the price hike scenario will be analyzed. The following table shows the price of per square feet apartments in the major areas of Dhaka city from 1990 to 2010.

Table 5.4 : Average Price of Apartments (Taka/ Sq. Feet) from 1990 to 2010

In the first decade of 21st century, the percentage increase in per square feet price of apartments is very high, particularly in Baridhara, Dhanmondi, Gulshan, Banani, and Shamoli area. Compared to the price increase of the earlier decade, price rise is almost exponential in this decade.

Apartment price per square feet in Dhaka city 2013

1) Gulshan

15000-18000

2) Banani

13000-15000

3) Dhanmondi

14500-16000

4) Mirpur

4500-4500

5) Shantinagar

5000-6000

6) Kalabagan

8500-95000

7) Moghbzar

5000-6000

8) Rampura

2000-2800

19)Moakhali D.O.H.S

13000-17000

10) Uttara Old

7000-8500

Sources: Mukta Akash bd.com

Table: 5.5 Apartment price in Dhaka

Apartment price per square feet in Chittagong 2013

Khulshi (north)

7000-8500

Khulshi (south)

7000-9000

R. Nijam raod

5000-6000

Mehedibag

4500-5500

Nasirabad

4500-5500

Boddar hut

4500-5500

Agrabad bazar

4500-5000

Jamal khan

4000-4500

New market

5000-6000

Mala para

3500-4000

 Lal khan bazar

4000-5000

Sources : Mukta Akash bd.com

Comparison of Real Estate within South Asian Countries

From the overall comparison I can say that India has a great position not only in the South Asian countries but also over the world. At present flat price in India is highest within South Asian Countries. But within South Asian countries at present, real estate sector of Bangladesh is a one of the leading growth sector and is providing remarkable contributions to the GDP in Bangladesh and creating employment opportunities for the unemployed people of Bangladesh.

 Present Scenario of Real Estate

Currently, about 5 per cent of India’s GDP is contributed by the housing sector. The GDP share of the real estate sector (including ownership of dwellings) along with business services was 10.6 per cent in 2010-11. After growing at 10.4 per cent in 2008-09, the rate of growth of this sector has decelerated to 7.8 per cent in 2009-10 and further to 6.9 per cent in 2010-11. Estimates show that for every rupee that is invested in housing and construction, 0.78 paisa gets added to GDP. Housing ranks fourth in terms of the multiplier effect on the economy and third amongst 14 major industries in terms of total linkage effect according to Economic Survey 2011-12.

           GDP share of the real estate sector

Year

2008-09

2010-11

percentage

10.4

10.6

 

 Table: 6.2 GDP share of the real estate sector in India

Demand for real estate is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014 Tier 1 metropolitan cities are projected to account for about 40 per cent of this. Growing requirements of space from sectors such as education, healthcare and tourism provide opportunities in the real estate sector. With institutional credit for housing investment growing at a CAGR of about 18 to 20 per cent per annum in the next three-five years, the housing sector’s contribution to GDP is likely to increase to 6 per cent. While India is among the top countries in terms of housing and work space needs, it ranks 181st in construction permission processes according to the World Bank’s Doing Business 2012 report

Real Estate Market Size

Activities in the real estate sector may broadly be classified into residential, commercial and the retail segment and hotels. The size in terms of total economic value of real estate development activity of the Indian real estate market is currently US$40-45bn (5-6% of GDP) of which residential forms the major chunk with 90-95% of the market, commercial segment is distant second with 4-5% of the market and organized retail with 1% of the market. Over next 5 years, Indian real estate market is expected to grow at a CAGR of 20%, driven by 18-19% growth in residential real estate, 55-60% in retail real estate, and 20-22% in commercial real estate.

Real Estate Market Size in India

Year 2008 2009 2010 2011
US billion 50.1 53.3 55.6 66.8

Table: 6.3 Real Estate Market Size in India

Residential real estate industry has witnessed stupendous growth in the past few years owing to the following reasons:

  •       Continuous growth in population.
  •       Migration towards urban areas.
  •       Sample job opportunities in service sectors.
  •       Growing income levels.
  •       Rise in nuclear families.
  •       Easy availability of finance.

Housing demand in Srilanka is increasing day by day, and their real estate is booming comparatively well than other countries. Thoughthe apartment and land price in Srilanka is lower than Bangladesh. Though the housing industry in Bangladesh, especially in Dhaka, has made remarkable progress in the last ten years. With apartment-sale charts consistently displaying positive curves.

 Levels of interest in this sector are certainly high. According RIU sources, around one quarter of apartments in two new high-rise projects scheduled for construction by one of Sri Lanka’s main condominium developers have been reserved even before construction has started. Out of the 226 apartments built in the first phase, only ten remained to be sold.

The average sale price of houses in Sri Lanka was LKR 17.63 million (US$ 133,831), according to Lanka Property Web, one of the country’s leading property portals.

       The average price of apartments was LKR 25.36 million (US$ 192,511).

       The average price of land was US$213 per sq. m. or LKR 710,000 (US$ 5,390) per perch in July 2012 (1 perch = 25.29 sq. m.).

          Sources: Lanka Property Web

The story of land prices in the suburbs has been one of almost continual appreciation over the past two decades according to available data. The factors exerting upward pressure on prices include rising demand for housing, currently estimated at around 90,000 units per annum, increases in per capita GDP, increases in migrant worker remittances and the financial health of local corporations. Fluctuations in interest rates have direct short-term impacts where the relationship is traditionally a negative correlation.

At present, real estate in Bangladesh has better position than Pakistan. Because

In Bangladesh three decades back the city dwellers were reluctant to live in flats while ten years back someone would have thought twice before buying an apartment/flat. But in the last couple of years people have shown an increased interest in owning apartments. As mentioned earlier the main reason is economic due to increased land cost as well as construction cost. As a result of increased demand, many apartment builders have appeared in the market in recent years. Twenty years ago there were fewer than five companies in Bangladesh engaged in developing apartments while today there are more than 1000 developers.

 Karachi Residential Apartments Market

A major percentage of the residential dwellings in Karachi city comprise apartments. Anecdotal evidence suggests that 40% of the total residential dwellings are apartments.  Arcadian with 2,000 and Lucky One with 600 apartments are two major upcoming projects in the city.

Lahore Residential Apartments Market

Lahore has a very limited supply of apartments. There are approximately 20 mixed-use developments across Lahore offering 2 or more floors of apartment units. However, most of these apartments have been converted into offices and are currently being used for commercial activity. Due to the usage of apartments as offices, pricing and rents vary considerably.

Our survey estimates 14 new projects were planned to be injected into the existing supply of apartments by 2013. However, only 4 of these are currently under construction but their construction pace is very slow.

Islamabad Residential (Apartments) Market

According to our estimates, apartments constitute 10% of the total residential developments in Islamabad.  Studio apartments and 2 bedroom apartments are the highest in demand and the prices tend to vary depending on the quality and location of the development. Currently, Colliers estimate average occupancy of over 90% in Islamabad’s apartment sector.

Price

Apartment developments located in diplomatic enclave tend to have higher rentals ranging from PKR 80,000 – 100,000 per month whereas, the ones located in other parts of Islamabad range between PKR 35,000 – 40,000 per month. The capital values range from PKR 6,000 – 13,000 per sqft depending on the quality of the development.

Compare the Economic Contribution among the Bangladesh, India Pakistan and Sri lanka.

Country

GDP %

Employment (million)

Interest of housing

Bangladesh

6.8

2.5 million

12-16 %

India

6.3

7.2 million

8-10 %

Pakistan

3.0

3.5 million

9-10 %

Sri Lanka

8.7

3.0 million

13-15 %

Table : Compare the Economic Contribution among the Bangladesh, India Pakistan and Sri Lanka.

 Asia Pacific Real Estate Health Monitor.

Chapter-7

Findings, Recommendation

And Conclusion

a) Lac of general guidelines of building designs to prepare appropriate planning rules, building code based on the character of the area. It should also cover building regulations and related detailing of the building and also cover selection of materials.

b) It has been observed that the construction material and equipment differ from place to place, considering this fact, specialized standards and code should be made.

c) Lac of innovative technologies in the sector for high productivity.

d) Lac of proper research support and financial support in public and private sectors.

e) Environmental impacts and other information are not available to the public.

f) Selection of building materials, the consultants and experienced contractors are in adequate.

g) Less encouragement of local based building materials as well as cheaper alternative/substitutes.

h) No separate financial policies for consultants/contractors.

i) Lac of management effectiveness in the construction sector.

j) No extensive and multifold regulation.

k) Lac of establishment the regulations and control procedures of the government.

Considering all issues, following broad general recommendations both in the public and private sector should be taken into consideration:

a) Appropriate planning and programming for the construction project would be framed based on the nature of works.

b) The authority with help of professionals should formulate general guidelines of building designs. Special attention would be given to prepare appropriate planning rules, building codes etc. based on the character of the area.

c) It has been observed that the construction material and equipment differ from place to place, considering this fact, specialized standards and code should be made.

d) Simple and innovative technologies should be introduced in the construction sector for high productivity. The attention should be given on its acceptability to the sectors. Affordability to the government as well public enterprises should be taken into consideration.

e) Research and innovation for development should be encouraged. Proper research support and financial support should be provided both in public and private sectors. Even groups of entrepreneurs and individuals should be encouraged by the policies.

f) Research outputs, available materials, energy consumption cost, environmental impacts and other information should be made available to the public through institutions and mass media.

g) Local based building materials as well as cheaper alternative/substitutes should be encouraged.

h) Special financial policies for consultants/contractors financing should be introduced. It would be included: i) reduction of bureaucracy ii) generous advance payments, iii) risk guaranties etc.

i) Overall management capabilities is essential for the construction sector. It should be managed through institutional basis, and the construction actors have contractors, laborers, managers and other related actors as active participants.

Today Bangladesh stands on the juncture of economic emancipation. The stage is set for rapid growth and development in every sector of the economy. The real estate sector is also experiencing significant changes. ‘Professionalism’ is the key word for success now a days and in the years to come. Only those companies which have a total commitment to this sector will thrive. TPL is determined to play a leading role in the development of the real estate sector in the twenty –first century. TPL has worked towards building a strong foundation and establishing a professional corporate identity for the company. Today, in the field of real estate development, though TPL is new, but in future, it will be a recognized leader which will be respected for its achievements, professional ethics and innovative concepts. TPL’s corporate philosophy is however based on a very simple principle – “A friend in need The Bangladesh real estate sector has traditionally been an unstructured sector but it is slowly evolving into a more organized and regulated industry.

Bangladesh has huge potential to attract large foreign investments into real estate sector. With real estate reaching a point of saturation in developed countries and the demand and prices falling, global real estate players are looking at emerging economies such as Bangladesh for tapping new opportunities in the real estate sector.

Moreover, there is a high level of global uncertainty looming over the developed and developing nations of the world. While developed economies are still struggling to regain their growth momentum, developing countries including Bangladesh, India and China are expected to grow at a reasonably high rate. Investments in Bangladesh real estate will fetch higher returns for investors compared to other global developing markets. In the coming years, the opportunities in the real estate sector will possibly attract global players to Bangladesh and hence will help the industry to mature, become more transparent,

Future prospect of the business: The growth of urbanisation is being observed sharply (approximate 3.7 per cent per annum) in Bangladesh in the last one decade owing to the growth of economic opportunity, upgrading of living standard, as well as enjoying modern facilities in the day-to-day life. Similarly, an ever increasing younger population would be the major driver of huge demand for housing in the near future.

Bibliography

1)  Visited Web Site

                       Source:  India real estate overview.

                       WWW.UAID.COM

                        Copy right ®the Daily star .net

                  www. Google.com

                  www. Rehab-bd.com

                  www. Imelec. Com

                  www.amgbd.com

www. Muktaakash bd.com

 www. leo@rehab-bd.org

2) Visited offices

Toma properties Ltd (TomaTower  7th floor And 6th floor ),77/1                                       karail , ramna, Dhaka -1000.

3) Brochure & information

 (Financial statement of Toma properties Ltd)

Reference

Pakistan Real Estate Market Year in Review 2012 – Outlook 2013 www.colliers.com/country/Pakistan

Crisil Research: India Real Estate Overview; March 2012

 India Real Estate Overview

Sri Lanka Real Estate Market Brief Volume 1: January 2012

In association with Research Intelligence Unit

E: sgoonewardene@kpmg.com

Source: Copyright (R) thedailystar.net 2012

Sources :Real estate Housing and Association of Bangladesh

  Source:  India real estate overview.

Real Estate

Categories
Architecture

Problems and Prospects of Real Estate Sector in Bangladesh

Chapter-1

ORIGIN OF THE REPORT

Introduction

Residence is one of the basic needs of human beings. The right to live in one’s own is a fundamental right of people and it is internationally recognized. The demand of housing in urban areas in developing countries like Bangladesh is dramatically increasing due to natural increase and its fast growth rate. Rural people are migrating not only to find jobs but many wealthy people are moving to urban areas like Dhaka city for the fulfillment of their expectations of better of their future generation, and for enjoying the modern facilities of the city life. This has resulted into a serious crisis all over the country especially in the major cities of Bangladesh. In recent time, the private real estate firms have taken initiatives by ensuring maximum uses of land in a planned way. In this system it is possible to accommodate more people in a comparatively small place.

Literature Review

Real estate had made a mark in the very first year of its emergence with leaping to prominence as prime & various locations of the city and in manufacturing quality concrete products that have earned them the distinguished stature they enjoy today.

Dr. Miznur Rahman, in his article “The Real Estate Business in Dhaka City” has tried to analyze the market situation, competition, and customer perceptions about the real estate developers. But in his paper he does not mention how the top ranking real estate companies are gaining competitive advantages, and he does not pass his valuable comments on promotional mix, marketing mix etc. which are very important aspects of marketing in the context of competitive market.

According to the journal of IBS Mr., Shib Shankar Roy attempt to investigate how the private Real Estate sector solving the housing need and to analyze the market situation & perception of customer about the Real Estate marketers. He also concludes that the Real Estate marketers should have appropriate plans for constructing low cost apartment in the peripheral areas of the town. But he does not mention how a company can set their marketing strategy for their apartments.

Mr. Taluckder and others has tried to examine and assess the present of apartment marketing and its future. Now, the business environment has changed to multi-various purposes, such as for business, residence etc. The business activities have not been focused through their paper like the promotional activities, as the problems associated with the business have not yet been highlighted exactly.

Also, the paper does not pin point how to overcome the major barriers of the Real Estate Companies that are being faced by the developers as well as buyers in the context of present competitive market of the apartment marketing. The study suggests that the future apartment building projects should be planned to cater to the needs of the middle-income people. Banks and other financial institutions should extend their assistance to the apartment builders. But they do not mention in their paper that how the problems of the Real Estate Business can be solved. However, they have extended their hands to highlight the various problems by providing information in the arena of Real Estate Business.

 Mr. Belayed and others has attempted to investigate the nature of real estate business, psychological aspect of buyers, and policy decision of the firms. But the study does not highlight the subject in details. For purchasing high involvement product like an apartment, there is various economic and psychological factors influence the buyers purchasing decisions. Also, the study does not suggest what kind of government help and facilities will specifically be effective for growing Real Estate Business. But the study mentions some significant aspects of Real Estate Business like the nature of Real Estate Business, pricing policy etc.

Importance of the study report:

In developing the urban area, Real Estate plays an important role as well as solving housing problem. Now a day’s real estate business in Bangladesh became very much competitive. Competitors are moving very aggressively to achieve their target as well as increase their market share. On the other hand, the customers are become very much aware about the current market of apartments as a result it became very difficult to take decisions. Primary data that are collected and analyzed in this study will be helpful for the decision makers of Advanced Development Technologies Limited.

 Objectives of the study report:

Every study must have its objectives. Again the objectives should be specified and well defined. So the main objective of this study is to analyze the problems and prospects of Real estate sector in Bangladesh.

Bearing the above view in mind, I have notified the following objectives for my research.

  1. To identify the problems and prospects of Real estate sector in Bangladesh
  2. To analyze the SWOT of real estate company.
  3. To analyze the present real estate business situation.
  4. To develop project
  5. To develop marketing mix & strategy

Scope of the Study report:

Real estate had made a mark in the very first year of its emergence with leaping to prominence as prime & various locations of the city and in manufacturing quality concrete products that have earned them the distinguished stature they enjoy today. Attuned to the rhythms tomorrow, Real Estate business humbly launched its journey to reach to its noble vision to ensure a new standard of living

Methodology:

This paper has reviewed extensively the real estate financing issues providing updated data and literatures considering both developed and developing real estate financing markets along with discussions regarding problems, prospects and some policy implications of this sector in Bangladesh. Information has been sourced from two ways: Primary data and Secondary data.

Secondary data:  Academic journals, white papers, industry portals, government agencies, trade associations, industry news and developments

 Analysis of Data and Information

 Housing finance is defined as the extension of loans to consumers to acquire houses; leasing of houses to the consumers through financial leasing; and extension of loans to consumers where such loans are secured by the houses that the consumer owns. In addition, loans extended to refinance the loans explained in this context are also included in the housing finance.

 Housing Finance Systems in the Developing Countries

Housing finance systems in many developing and emerging economies share several characteristics. First, most housing finance systems are “institutional patchworks” that comprise private sector lenders as well as several government-managed housing finance institutions or programs (Renaud, 1996). From a regional perspective, the mortgage markets in South Asia are small and fragmented with the unorganized sector. Regarding the organized segments, there are distinct commonalities that characterize some of the mortgage markets of South Asia, such as a heavily subsidized monolith-like state run institution, a fledgling private sector catering to the middle and upper income segments and players from the banking sector that provide housing finance as a part of their retail portfolio. The mortgage markets in Sri Lanka, Bangladesh and Pakistan are such archetypes (Karnad, 2004). The residential housing sector of Bangladesh is characterized by a three-tier market. First are those households with the highest disposable income (less than 3 percent of the housing market), able to afford high quality housing in fully serviced neighborhoods, and able to utilize bank financing or specialized housing finance institutions. The second tier is the relatively narrow stratum of middle-income households (represents 12 to 15 per cent of the housing market) that are the main users of specialized housing financial institutions such as Bangladesh House Building Finance Corporation (BHBFC). This group is the major beneficiary of available public subsidies and is composed predominantly of public servants and wage/salary earners of large private companies and public sector corporations. The third and largest of the tiers is the low-income households, for which housing is provided largely by the private sector, often under illegal and unsatisfactory site conditions (ADB, 1995).

 Limitations of the study report :

There are limitations in every research that interrupt the workings of the research. The limitations, which are faced by me in conducting the study, are as follows,

  Time constraints.

  Lack of adequate financial support.

  Unavailability of previous research work.

  Conservativeness of respondents.

CHAPTER-2

Purpose of real estate business

The purpose of our real estate business is, obviously, to earn profit, but the promoters and the equity holders are ware of their commitment to the society to which they belong. A chunk of the profit is kept aside and/or spent for socioeconomic development through trustee and in atomization of art, culture and sports of the country. We want to make a substantive contribution to the society where we operate, to the extent of our separable resources.

Vision of Real Estate. 

 Application of modern information technology in business activities, offering high standard clientele services and proper coordination of business is the core of their vision.

Mission of Real Estate.

With a view to achieving objective of the real estate sector, their sincere and al out efforts stay put unabated. Respected clients and stakeholders are attached to us for our transparency, accountability, social commitments and high quality of clientele service.

Objective of Real Estate.

Bring Modern facilities to the doorstep of general public through diversification of their service. They try to maintain their quality of the product. They try to maintain their commitment to the client.

  • Professionalism.
  • Transparency.
  • Service.

Business goal of Real Estate.

To patronize, sponsor and encourage games and sports, entertainment and other social activities, alongside providing the best services to the clients.

Growth & development of Real Estate.

Real Estate business carried out all traditional functions, which a real estate performs such as installment, discount, festival, offer, trade & commerce & industry. Real estate business earning amount are increasing day by day.

Pricing policy:

Considering the customer’s demand schedule, the cost function, and competitor’s prices the companies set their product’s price. Costs set a floor to the price; and the price of the substitute products provides an orienting point. Customer’s assessment of unique product features establishes the price in the market. Different types of pricing strategies are –

a. Mark up pricing

b. Target returns pricing

c. Perceived value pricing

d. Value pricing

e. Going rate pricing

f. Sealed Bid Pricing

g. Flexible pricing strategy

The existing products of apartment developer are luxurious apartment (Tk 6000 – 6500 and above per sft.), high rising luxurious apartment (Tk 5500 – 6000 per sft.), moderate apartment (Tk 3500 – 4000 per sft.) and high rising moderate apartment (Tk 4000 – 4500 per sft.), commercial building cum apartment, commercial building, super market etc. with this they include car parking & utility charge.

 How to Develop a New Project:

Following is the process of developing new project

Marketing Strategy

The process of planning and executing the pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy individual and organizational goals. Simply, if it doesn’t facilitate a “sale” then it’s not marketing.

Two major aspects of marketing are the recruitment of new customers (acquisition) and the retention and expansion of relationships with existing customers (customer base management or customer relationship management). An emerging area of study and practice concerns internal marketing, or how employees are trained and managed to deliver the brand in a way that positively impacts the acquisition and retention of customers. Marketing is the process of trading in a market; buying or selling. The taking of merchandise to market. Market also a gathering where people buy and sell. To buy or sell in a market is marketable that which may be sold.

Marketing mix divided into four functional areas:

In marketing process they overcome in four Processes:

1)      Analyzing marketing opportunities

2)      Selecting Target Markets

3)      Developing The Marketing Mix

4)      Managing the Marketing effort

Marketing process and the forces influencing business marketing strategy. As a first step through market segmentation, targeting, and positioning, the company decides which customer it will serve and how. It identifies the total market, then divides it into smaller segments, selects the most promising segments, and focuses on serving and satisfying these segments. Next the organization design a marketing mix made up of factors under its control – product, price, place, and promotion. To find out the best marketing mix and put it into action, then the company engage in marketing analysis, planning, implementation and control. Through these activities, the company watches and adapts to the actors and forces in the marketing environment. Market positioning is so much essential for developing company cause arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the mind of target client.

 Developing the marketing mix according to Real estate business:

Once the real estate has decided on its overall competitive strategy, it is ready to begin planning the details of the marketing mix. The marketing mix consists of everything the firm can do to influence the demand for its product.

Marketing Mix

  • Product
  • Price
  • Place
  • Promotion

Product:

Products mean the goods and services combination the offers to the target market. In fact, finding the right product concept is one of the four critical objectives of marketing. Real estate is successful strategic marketer they carefully and completely consider their product options. Marketing Strategies of Real Estate in Bangladesh business made actions and enjoyed a dominant position in the world market and domestic Market. By the 2006’s they had introduced many inventive variations of the Real Estate. However, they completely ignored the streams of independent invention that, together, created the quartz watch action.

 Price:

Price is the amount of money customers have to pay to obtain the product. Real estate has set their pricing strategy to think the different target customer. Pricing mainly determined by location of the project in the country. It’s incredible how few people fail to appreciate this simple truth. A graduate professor in Financial Management taught us several different ways to precisely determine the cost of a product. Out came the calculators. At this real estate, that will cover the cost of taxes, goods sold, manufacturing, overhead, marketing, depreciation, and still provide a net income, which is better than the average in this particular market.

Place: 

Place includes company activities that makes the product available to target customer. Place determined by the company in geographic basis they set their project mainly in urban areas of different location. Real estate marketing their products concentrates on location basis they divide Dhaka city in different location.

 They place their product

  • Area on the world map, or country map, or city map.
  • Income group
  • A common interest
  • A common personality
  • A common lifestyle
  • Occupation
  • By intermediaries

Promotion:

Promotion means activities that communicate the merits of the product and persuade target customers to buy it.  The process of buying and selling in a market ultimately, has to promote the entire customer of the target market. Product Quality and characteristic of company their main promotional tools side by side they go for different advertisement, billboard, Fair etc to inform their product feature with prices. They promote their customer that loan facility available, discount in at a time payment, due time Handover swimming pool and other value added services.

 CHAPTER- 3

SCENARIO OF REAL ESTATE SECTOR

Overall Scenario of Real Estate Business in Bangladesh:

Dhaka City, born during the Moghul Empire and grown with the British rule, is expanding rapidly. From the beginning of the 20th Century its growth and latter development is marked with sheer lack of proper and far-reaching planning. The impact is now being felt at the end of the century. Dhaka City is undergoing terrific growth phase throughout the last two decades. While there are so many real estate developers in the market, there are also very few of them who have maintained the quality, safety and customer preference. It is customary in the country that the first day quality and impression is lost after a while when people start getting a bit of familiarity. This happens due mainly to lack of professionalism. Sometimes the consumers here are in a fix to choose a particular brand out of many. A good number of real estate companies are working under one umbrella association named ‘Real Estate and Housing Association of Bangladesh’ (REHAB). Almost 83 Companies are at present affiliated with this association, while more than 200 companies are working independently. BTI took a leading role in the formation of the industry association and is one of the founder members of the REHAB.

Objectives:
a)         To offer finest apartments in excellent locations to the clients;
b)         To provide sound construction with aesthetic design to the clients;
c)         To install best possible fittings and fixtures;
d)         To satisfy clients by expert-oriented service;
e)         To help solving the residential problem of Dhaka city;
f)         To perform social responsibility for a happy future Market:
Real estate business especially apartment projects has started in late 1970s in Dhaka City. But from early ’80s the business started to grow and flourish. At present, more than 250 companies are active in business but 95% business is still dominated by of top 10 Companies. Present market is growing at the rate 15%.

Reasons for development of the industry:
The main reasons why real estate business developed in Dhaka city are as follows:
a) Scarcity of open space in the important areas of the city
b) Hazards of purchasing land
c) Hazards of construction of building
d) Rapid increase in population of Dhaka
e) Decrease in the rate of bank interest
f) Price of land and apartments is increasing day by day
g) Rent of the apartments is comparatively higher than the rent of privately constructed flats
h) Open Market Economy. Remittance of foreign currency is very easy
i) Security
j) Service facilities such as garbage disposal, central satellite TV connection, apartments services saves time, roof top facilities, lift and so on.

 CHAPTER – 4

REAL ESTATE STATUS IN MARKET

 Types of market segmentation:
The market of real estate business sector is highly segmented. This segmentation is mainly based on the location, price of the land, and size of the apartments. The segmented areas are:
a) Segmentation – I :Baridhara, Gulshan, Banani, DOHS, Uttara
b) Segmentation – II :Dhanmondi
c) Segmentation – III :Segunbagicha, Shantinagar, Kakrail, Malibagh, Kalabagan
d) Segmentation – IV :Mirpur
e) Segmentation – V :Old Town of Dhaka City
f) Segmentation – VI :(For office building) Motijheel, Dilkusha, Fakirapool DIT h)Extension Road, RK Mission Road, Shahidbagh, Kawran Bazar, Pantha Path etc.

Places in Dhaka city where residential and commercial projects has been congregated:
Dhanmondi; Gulshan; Banani; Eskaton; Siddeshawari; Panthapath; Baridhara; Elephant Road; Mirpur Housing Estate, Mirpur; Dilkusha C/A; Kakrail Rd.; Malibagh; Lalmatia; Indira Road; Pallabi, Mirpur; Old Airport Road; Farmgate; Inner Circular Road; Mohakhali; Ashulia, Savar; Kalikair, Gazipur.

The development projects for apartments and residential purposes range from Duplex Home, Triplex Home, Penthouse, Luxury Home, Furnished Apartment, Unfurnished Apartment, to Condominium and Vacation-Resort Property. Commercial projects includes Industrial Shed, Agro Farm House, Warehouse / Godown, Commercial Space, Industrial space, Office Building, Office Suite, Furnished Office, Commercial Showroom, Exquisite Office, Industrial Park, Factory, Lofts, Shopping Center, etc.

 Real estate competitors in Bangladesh:

Price lists of different companies in different places:

Name of Companies

Gulshan

Banani

Mohammadpur

Mirpur

Dhanmondi

Uttara

Midtown

Rangs Properties

3500

2700

1950 P

1700

GEO Properties ltd

2800 P

1600

1500

2200

ENA Properties 

2200

1800

1900

1. Borak Real

2000

2. Nagar Homes

2200

3. AminMohammad

3200

1600

3000

2000

4. South Breege

3500+

2000

3000

5. Navana

3500

1850

1450

3250

1850

2200

6. Oriental

2750

1800

2150

1800

2000

7. Bashgreho

1500

1550

1750

8. Structural (SEL)

3250 P

2000

1650 P

3200

2000

2200

9. Assurance

2750

3000

Name of Companies

Gulshan

Banani

Mohammadpur

Mirpur

Dhanmondi

Uttara

Midtown

1.ANZ Properties

2850

1600

2.Bay

2875 P

3.ADDL

1650

4.Asset

3500

2900

5.Concord

2850-3200

2500

1750

6.Sheltech

3000

1450

1600

7.Mega Builders

1675 P

MAJOR ACTIVITIES

1. Application for allotment of apartments should be made on the prescribed application form duly signed by the applicant along with the earnest money. The company has the right to accept or reject any application without assigning any reason thereto.

2. On acceptance of an application, the company will issue allotment letter to the applicant on which the applicant/allotted shall start making payment as per the schedule of the project. Allotment of apartments is made on first come first serve basis.

3. Payments of earnest money, installments, car park costs, additional works and other charges shall be made by bank draft or pay order directly in the name of the respective company against which the receipts will be issued. Bangladeshis residing abroad may remit payments in foreign exchange by TT or DD in the name of the company.

4. Payments of installments and all other charges are to be made on due dates according to the schedule. The company may issue reminders to the allottee, but notwithstanding the issue of reminders, the allottee must adhere to the schedule to ensure timely completion of construction.

 5. The company may arrange HBFC/Bank loan (if available) for allottees according to the existing rules and regulations of the authority concerned.

 6. Delay in payments beyond the schedule date will make the allottee liable to pay delay charge (amount varies from company to company) for every 30 days on the amount of the payment delayed. If the payment is delayed beyond 60 days the company shall have the right to cancel the allotment. In such an event, the amount paid by the allottee will be refunded after deducting the earnest money and after allotment of the canceled apartment.

 7. Connection fees/charges security deposits and other incidental expenses relating to gas, water, sewerage and electric connections are included in the price of apartments. The company will make those payments directly to the authorities concerned on the allottee’s account.

 8. Limited changes in the specifications, design and/or layout of the apartments and other facilities may be made by the company in larger overall interest or due to unavoidable reasons.

 9. The company may cancel an allotment for non-payment of installments in disregard of reminders and after final intimation to the allottee by registered post at the address given in the application form. 10. The allottee shall be required to execute an agreement with the respective company for safeguarding the interests.

10. The possession of the apartment shall be duly handed over to the allottee on completion and full payment of installments and other charges and dues. Till then the possession will rest with the company. If the project is completed before the stipulated time, the allottee shall have to make full payment before taking possession.

 11. The allottees will become equally divisible undivided and undemarketed shareholders of total acres of the scheduled land of the project in respective apartment. After all the dues and installments are paid by the purchaser according to the requirements and schedule for payment and after the completion of the construction, the vendors shall execute a registered sale deed in favor of the purchaser transferring share of land of the project in the demised apartment.

 12. After taking over of apartment of the project, the allottee (s) must consult the company prior to undertaking any structural or layout changes within the apartment complex. Failure to do so will be at the sole risk of the allottee.

 14. Company shall not be liable if the completion period of the construction of the projects is affected by unavoidable circumstances beyond the control of the company, like natural calamities, political disturbances, strikes and changes in the fiscal policy of the state etc.

 15. For the purpose of effective management and maintenance of the building the purchaser of the apartment shall form and constitute a mutual benefit cooperative society under the Co-operative Society’s Act 1940. The society shall be entrusted with the management and maintenance of the building. The rules, regulations and by laws of the co-operative society relating to management and maintenance of the building shall be binding upon all the purchasers/owners of the apartments.

ADDITIONAL WORK AT THE PERIOD OF PROJECT:

The overall evaluation of a real estate Strengths, Weaknesses, Opportunities and Threats is called SWOT analysis. It involves monitoring the external and internal marketing environment. By reviewing the business strengths, weaknesses, opportunities and threats, can respond to changing market conditions.

 A particular SWOT analysis discloses the following issues for an organization that an organization achieved over the time of its operation by analyzing its both internal and external environment:

   “S”- Strengths

  “W”-Weakness

  “O”-Opportunities

  “T”-Threats

SWOT ANALYSIS OF “Real estate business”:

Strengths:

  • Experienced Management.
  • Efficient and dedicated employees.
  • Good understanding between employees.
  • Good relationship with exiting clients.
  • Locations of the Projects are good enough.
  • High standard of construction quality.

Weaknesses:

  • Many prospective clients don’t have any idea about its construction quality.
  • Comparatively product’s prices are higher than many companies.
  • Lack of promotional activities or advertisements.
  • No specific policy following by the employees.

Opportunities:

  • The upcoming Projects are in demandable locations.
  • Huge number of projects under construction.

Motivation of the sales persons to encourage them for more effective in sell.

  • Offer the prospective clients to visit the existing projects to make positive impression.
  • In Dhaka, there is no availability of land at the good places so people have to buy flat and real estate can be a good option for the flat buyers

Threats:

  • Huge number of competitors & Lack of suitable land.
  • National catastrophes.
  • Non-availability of funds
  • Loss of experience stuff.

CHAPTER – 5

FINANCIAL STATUS

 Financing in Real Estate Company

Status of Real Estate Financing in Bangladesh

McKinney, Jr. (1952) has identified four sources of real estate financing (in order of contribution) during the housing boom in the United States, such as savings and loan associations followed by commercial banks, insurance companies, and mutual savings banks. Edwards, (1964) has also pointed out that savings and loan associations by continue to grow more rapidly than other mortgage lenders, is the dominant force

in the home mortgage markets. In spite of an increasing focus on urban housing and development, informal systems are still the dominant producers in many developing countries – an estimated 60 and 70 per cent of

 Financial limitation

1. If the housing problems are to be more effectively addressed, housing policies, specially financing issues must be taken in consideration. Stronger, more effective enabling strategies must be developed by the public sector to allow housing markets for the various tiers to leverage the activities of the private sector. The National Housing Policy, 1993 focuses on the basic objectives of providing housing to people at all strata, especially to the low and middle income groups and those having no access to housing.

2. The objectives of the subsidy scheme should be to assist those that do not qualify for a formal sector mortgage loan and thereby increasing the number of middle income households that can avail themselves of housing finance. However, we need to keep in mind that subsidized funding for state owned housing finance entities creates distortions in the market place and it should be stopped. Fortunately, for the last few years, BHBFC could not avail any subsidized funding through the government or government guaranteed debt.

3. Real estate loan recovery rate in the public sector is very low and well below that of the commercial banks. While in the past a rural house lending program, sponsored by the government through a 3 per cent refinancing window at the Bangladesh Bank was stopped because of alleged poor recovery rates. The outstanding balance of total loans and advances of the BHBFC on June 30, 2000 was BDT 27,236.97 million, of which classified loans accounted for BDT 8,343.07 million. However, the recovery rate of housing sector loans in the banking sector averages approximately 70 per cent. The poor recovery rate is due mostly to older loans and recovery exceeds 80 per cent on loans disbursed after 1990 (Hoek-Smit, 1998).

4. In order to develop a primary mortgage market, financial assistance to primary mortgage market players (e.g. banks extending housing loans, specialized housing finance originators) through equity participation, loans, credit lines and warehouse lines should be given. Development of standardized and prudent credit underwriting, mortgage origination and servicing standards, and advice on the use of technology to implement such standards.

5. National housing finance systems must prove themselves competitive by mobilizing and allocating capital efficiently. The BHBFC has only made very limited progress in becoming self-sustainable or in reaching lower income households. Since BHBFC does not have additional funding they are not in a position to go for new lending. The prices of mortgaged lands that BHBFC had against their lending 10 to 15 years ago have gone up significantly.

6. Insurance and Trust Acts have not been changed to facilitate lending by long-term investors in the housing sector. Sometimes developers are accused for not properly following the procedures for borrowing money from financial organizations. Three parties get involved in the process – the developer, the landowner from whom the land was leased and the one who buys the apartment.

 Types of loan

In Bangladesh there are 3 (three) Financing Organizations in Private Sector, which are ffering loan facilities for housing and commercial spaces.Classification of Mortgage Loan:

There are four types of mortgage loan which is related crucially to the real estate. They are

      Conventional Mortgage Loan

      Insured Conventional Mortgage Loan

      FHA Insured  Mortgage Loan

      VA Guaranteed Conventional Mortgage Loan

  1. Conventional Mortgages: are negotiated between a borrower and lender. From these negotiations, the loan-to-value ratio interest rate (or ARM terms) and the payment-to-income ratio are established.
  2. Insured Conventional Mortgage Loan: In many instances, borrower do not have the necessary wealth to make a down payment of 20% of value when purchasing property. However if the income earning ability of the borrower and the location of the property being acquired are satisfactory, lenders may be willing to grant a loan request in excess of 80% of value with a condition that the borrower purchase mortgage insurance against default risk.
  3. FHA Mortgage Loan: A Mortgage can be insured by the federal housing administration. Unlike Conventional Insurance which protects the lender against some portion of the potential loan loss.
  4. VA Guaranteed Conventional Mortgage Loan: VA stands for Veteran agreement conventional mortgage loan.

Types of Loan Source

Name of the Organization

 

Corporate Address 

Contact Numbers

 

Delta Brac Housing
Finance Corporation Ltd.
(DBH)

Interest Rate:
a) Privileged Clients – 12.50%
b) General Clients – 13.00% Website:

Gulshan Head Office
Landmark Building (9th Floor),
12-14 Gulshan North C/A
Gulshan-2, Dhaka-1212.
Motijheel Branch
Room # 1101,
Sena Kalyan Bhaban (11th Floor)
195 Motijheel C/A, Dhaka-1000.Dhanmondi Branch
Pantha Plaza (1ST Floor),
63/A Lake Circus
Kalabagan, Dhaka-1205.
Chittagong Branch
Faruque Chamber (7th Floor),
1403 Seikh Muzib Road
Choumuhony, Chittagong.
Gulshan Head Office
Phone # 8822374, 9882112 | Fax # 880-2-9882110
E-mail: dbh@deltabrac.comMotijheel Branch
Phone # 7111774, 7111778, 9564907, 0171621062
Fax # 880-2-9551536 | E-mail: motijheel@deltabrac.com

Dhanmondi Branch
Phone # 8130906, 9134211, 9124112, 8117264, 018251216
Fax # 880-2-8117264 | E-mail: dhanmondi@deltabrac.com

Chittagong Branch
Phone # (031) 711782, 712298, 727885, 0171816672
Fax # 880-31-728202 | E-mail: chittagong@deltabrac.com

Industrial Development Leasing
Company of Bangladesh Limited
(IDLC)

Interest Rate:
a) Priority Clients – 12.50%
b) General Clients – 13.00% Website:www.idlc.com

Corporate Head Office
Hadi Mansion, 2, Dilkusha C/A,
GPO Box # 3160
Dhaka-1000.Chittagong Branch
Suriya Mansion, 30, Agrabad C/A
Chittagong.
Corporate Head Office
Phone # 880-2-9560111 | Fax # 880-2-9563620
E-mail: mailbox@idlc.com, housefin@idlc.com
Chittagong Branch
Phone # (031) 711034, 713742 | Fax # 88-031-715895
E-mail: idlcctg@spnctctg.com
National Housing Finance
And Investments Limited

Interest Rate:
a) Prime Loan/Clients – 12.50%
b) General Loan/Clients – 13.00% Website:http://www.nationalhousingfinance.com/

Corporate Head Office
National Plaza (7th Floor),
1/G Free School Street
Sonargaon Road, Dhaka.Motijheel Branch
Chamber Building (6th Floor),
122-124 Motijheel
Dhaka-1000.
Corporate Head Office
National Plaza (7th Floor),
1/G Free School Street
Sonargaon Road, Dhaka.
Corporate Head Office
Phone # 9669800, 9666281, 9670612-4 | Fax # 880-2-9671016
E-mail: housing@dbn-bd.com,housing@intechworld.net
Motijheel Branch
Chamber Building (6th Floor),
122-124 Motijheel
Dhaka-1000.

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CHAPTER – 6

PROBLEMS & PROSPECTS OF REAL ESTATE IN BANGLADESH

 Problems & prospects of real estate sector in Bangladesh

The Real Estate and Construction Industry plays an important role for sustainable development of a country. In Bangladesh many construction projects are undertaken under development programs. The construction industry is an important sector for physical and economic development of the country. It provides physical expansion and economic development. This sector is well linked with human settlements, employment and environment. In case of Bangladesh it is not actively patronized by the policies of the government. As a result, this sector could not grow under a systematic environment. This paper makes a case study of construction industry of Bangladesh with special emphasis on Real Estate & Housing sector. The paper discusses the pros and cons of the project activities and its various implementation stages. It narrates the experiences and recommends more appropriate realistic strategies, which are both applicable in local and national levels of Bangladesh.

Introduction:
Being one of the most densely populated countries of the world with a huge population, Bangladesh has already surrendered nearly 25% of its land to human settlements and related uses. With the current 30 million urban populations, the share of urban land is about 2 percent of all lands and nearly 10 percent of land under settlements.

Urbanization helps saving land for settlements. This is because of the possibility of higher density. As of today 30 million urban population are squeezed on about 3370 square kilometers (1300 square miles) of land in the country giving a gross density of 8870 persons per square kilometer (23000 persons per square mile) as opposed to about 700 persons per square kilometer (1800 persons per square mile) in rural areas. Thus the urban density is more than 12 times that of the rural density. But urban population will be more than double in the next 20 years and the trend would continue. By the year 2040 Bangladesh would possibly have half of its population (of 200 million or so) in urban areas that would amount to 100 million people in urban areas.

Due to various factors, including absence of an urbanization policy or a human settlement policy, urban growth and urban development in Bangladesh is basically Dhaka oriented. Already 30% of the urban populations of the country are concentrated in Dhaka Mega city region. The trend is continuing or becoming more entrenched. As Dhaka is the Nucleus City of Bangladesh and the focal point of all social, political and economic activities, the current housing situation of Dhaka City is mainly outlined in this paper. The problems and prospects of housing are also discussed in the light of the experiences of some other major cities of the world. The present and future trend of housing development is also discussed with special reference to high land value in Dhaka City. In future there would obviously be a need for higher density of population in both rural and urban areas, more so in urban areas. Density can be increased both horizontally (by more compact arrangement) or vertically through multi-storied development. There is no magical solution to the present or future housing problem of Dhaka City. Different sets of policies need to be implemented both at the national as well as the local levels. Nevertheless in the light of the prevailing high growth rate in population as well as increasing value of land in Dhaka city, it can be easily argued that apartment development should be encouraged in the coming years. Both walk-up as well as high rise developments should be encouraged. Hence the future residents of Dhaka should adapt themselves to apartment living by being more accommodative and tolerant. All of us would prefer to live in a private home with a front lawn and /or a back garden, but since urban land is scarce and expensive, solutions with high rise development need to be considered in a rapid developing city like Dhaka.

Interaction of Urbanization with Population Growth

High population growth and rural-urban migration intensify the problems of urbanization in Bangladesh, as in all developing countries. For Bangladesh the problem is further aggravated by limited land supply in urban areas, lower land utilization and lack of proper policy and planning of land-use. The ever growing urban population is creating an increasing demand for space. This rapid influx of population to the (capital) city results in sky rocketing land prices and provides some stimulus to construction of tall buildings. During the last four decades, metropolitan Dhaka has recorded a phenomenal growth in terms of population and area. Dhaka at present is one of the fastest growing metropolises in the world. After the war of independence of 1971, Dhaka’s provincial capital status was raised to national capital overnight and its population increased manifold in the subsequent decades. The land area and population of Dhaka is usually expressed in terms of two boundaries. One is Dhaka City Corporation (DCC) boundary and the other one is the larger boundary of Rajdhani Unnayan Kartripakkhya (RAJUK). Within DCC limits (with about 520 square kilometer i.e. 200 square mile), there are already over 7 million people and growing possibly at 5.5 percent annually. Gross density is 11,570-13,500 persons per square kilometer (30,000-35,000 persons per square mile). In some parts density of over 38,580 persons per square kilometer (100,000 persons per square mile) exist, with an average of 3 stories for pucca development or one story for kutcha development. But at such high densities, we do not get enough road space or open space or other non-residential space either. Outside DCC, but within RAJUK limits, there are 1008 square kilometers (about 390 square miles), wherein live another 2 to 3 million people. Densities in such areas vary from very high to very low. In fact much of the RAJUK areas, beyond DCC, are not ready for proper urban development yet. There are low lands, liable to annual floods, and to deep flooding during abnormal floods. But urban expansion takes place even in such marginal lands through gradual earth filling.At present the Dhaka metropolitan area consists of the inner city which is almost built up and surrounding areas which are semi-built up. During the period from 1981 to 2000, the greater Dhaka population grew at an average rate of 5.5% from about 3.44 million to 10.0 million. During the same period the built up area increased from 104 sq. km (39% of the city area) to 150 sq. km. (55%). By the year 2015 the expected population of the city is forecasted to be as high as 15.7 million. It is expected that Dhaka will become one of the ten largest cities of the world by the year 2020 with a population as high as 20 million and to make provision for accommodation and comfortable living of this large population, creation of new satellite towns adjacent to the city and also new towns around the cosmopolitan city will be necessary. For this purpose, the area of Gazipur, Kaliakoir, Savar, Tongi, Narayanganj and Keraniganj across the river Buriganga and Purbachal i.e. Yusufgonj under Rupgonj thana of Narayongonj district in between the rivers Balu and Shitalakhya will be taken into consideration.The additional population in the coming decade will add new dimensions to the urban fabric of metropolitan Dhaka. The main reasons for the huge anticipated increase of Dhaka population in the coming decade is due to unbalanced urbanization and presence of primacy in the city size distribution pattern. Compared to other developed and developing countries.

Housing in Dhaka City

Housing conditions of Dhaka City vary greatly between high and low-income groups as well as by area. The gap is obvious between luxurious high income apartments/houses which exist in high-income areas such as Gulshan, Baridhara, Dhanmandi, Uttara areas and poorly constructed temporary housing (Jhupri) with extremely small floor space, very densely located on the lands prone to flood disasters. About 30% of the slum dwellers live in Jhupri, 24% in Chhai, 13% in Tong, 30% in Tin-shed, 2.5% in Semi-pucca and 0.5% in Pucca type of structure. Housing requirements in Dhaka is 218,000 units including dissolution of backlog until 2001 and replacement, wherein the requirements of urban poor is 140,000 units, which share almost two-thirds of the total requirements. In terms of tenure, 54% of the households are on private rental basis while 31% are owned. Only 1.2% is on social housing.It can be pointed out that people from all socio-economic backgrounds in Dhaka are facing housing problem of one type or another. While the urban destitute need rehabilitation, the slum dwellers need slum upgrading. The low-income families are in need of low cost flats or plots and the middle and upper income families are complaining that the cost of a decent plot or a decent flat is going beyond their means. The solution to the problems of these different groups is also different and mainly lies in the hand of the policy makers and the government.

In recent years there has been a new trend of housing development mainly in the private sector. A new type of residential development has come on the scene, which can be broadly termed as apartment development. In most of the cases an individual or a company constructs one or more buildings comprising of several apartments, which are later sold to individual purchasers. This has prompted many individual entrepreneurs to develop apartment buildings resulting in an increased number of real estate companies in the city.

 Housing Access and Affordability

The rapid growth of city population has led to a phenomenal increase in housing demand in the city. The housing market of the city consists of five tenure groups – owner occupied, private rental, rent free, squatters and slums. Physically, housing has extended from makeshift arrangement and permanent houses. Dhaka City has a very high proportion of poor population (65%) and as such affordability of housing is significantly affected by the income distribution. The access of poor to housing is constrained by high land and material prices. In one study (DMDP, 1995), it has been observed that the first quintile of city household has zero affordability to housing; the second quintile can afford Tk. 140 to Tk. 300 per month; the third quintile can afford Tk. 300-400 per month; the fourth quintile of household can afford Tk. 480 to Tk. 600 per month and the fifth quintile of household can afford Tk. 1000-2500 per month. Only 3.85% of household can afford above Tk. 2500. The affordability indices of Dhaka City imply that the govt. has to play the role of both provider and facilitator/enabler for different income groups.

Apartment/Real Estate Development in Dhaka City

Three decades back the city dwellers were reluctant to live in flats while ten years back some one would have thought twice before buying an apartment/flat. But in the last couple of years people have shown an increased interest in owning apartments. As mentioned earlier the main reason is economic due to increased land cost as well as construction cost. There are also other reasons such as reluctance of individuals to spend time and energy in house construction, increased awareness of apartment living, and western influence. As a result apartment-owning is becoming increasingly popular. Moreover the absentee i.e. the wage earners in Middle East and other countries are also a major contributing factor towards the increasing demand for apartments. As a result of increased demand, many apartment builders have appeared in the market in recent years. Twenty years ago there were fewer than five companies in Bangladesh engaged in developing apartments while today there are more than 200 developers. It may be mentioned here that in 1988 there were less than 20 such developers in Dhaka. At present there are 80 such developers working in Dhaka City who are members of REHB. But there are many other companies/individuals engaged in such development in smaller scale and selling apartments to friends and relatives only.

Construction and Development Process

The contribution of construction industry in the Gross Domestic Product (GDP) is significant. Over the last 15 year the Real Estate Development sector has made significant contributions to many sectors of our economy. Since 1985 this sector has created homes for over 12000 families in the metropolitan city. Additionally, thousands of acres of land have been developed into housing estates where lower middle and middle-income families can construct their own dwellings. The fact that many cement manufacturing industries have now been set up in Bangladesh is a reflection of the impetus the Real Estate Development sector has given to our economy. In the last decade many steel mills would have shut down had it not been due to the support of the Real Estate Development sector. Several new mechanized construction material manufacturing industries have recently come up due to the existence of this sector. Today about 200 architects and consulting engineers are directly supported by this sector; over 500 graduate engineers are holding management positions in this sector and almost 2500 diploma engineers are engaged by this sector. The construction sector is directly linked with employment. There are both formal and informal building firms, who undertake works. In the period 1985-90, this sector contributed more than 5.55% in GDP. It is estimated that about 1.77 million man/ year in 1994/95 (according to Fourth Five year plan) were engaged in this sector. A large number of companies/firms in Dhaka are engaged in construction activities Contribution of construction industry may be summarized as:

. Construction industry generates huge formal and informal sector employment. This fact needs to be remembered more generally while policy making.

· Income redistribution through employment generation, skill upgrading, favorable financing for low-income housing, capital spending for large-scale civil engineering works, all contribute to redistribution of national products downwards (social justice component).

· On-the-job skill acquisition frequently leads to further specialization, both in the construction sector and in serving other industrial sectors. Skill generation is thus possible by construction industry.

· The low-income population, after the provision of shelter and civil infrastructure, feel morally upgraded (direct contribution to labor productivity). It has also been observed that improved dwellings are frequently transformed into some sort of informal economic production units. Improved road systems make commodity outputs of small units more easily accessible. Construction industry thus contributes to higher productivity.

The construction sector directly relates to employment, power and transport sectors. The construction industry is a very labor intensive, providing many jobs for skilled, semi-skilled and unskilled workers both in the formal and informal sectors. The informal sector also employs many people in construction industry. For the migrants from the rural areas the construction industry is a stepping stone to urban life.

It is a recognized fact that the health of the Real Estate Development sector is the barometer of the national economy. Housing is indeed one of the most important priorities of any government. It is very unfortunate that today the Real Estate Development sector of Bangladesh is in the doldrums. Many construction projects are left incomplete; many people who have invested their money face uncertain future; and many related industries will face the consequence of this depression in the immediate future.It is our view that a part of the reason behind this pathetic scenario is the misunderstanding of this sector by the successive governments. Instead of receiving encouragement and nurturing, this sector has been progressively quashed by regressive government policies. A few examples are listed hereunder: In 1989 the Ministry of Industries declared construction of residential complexes on commercial basis as an industry. However, to-date this notification from the Ministry of Industries is not recognized by the National Board of Revenue. Therefore, this sector is not entitled to any benefit of an industry. Transfer fees stamp duty and registration charges for property in Bangladesh are amongst the highest in the world. In the metropolitan city, a purchaser has to pay approximately 25% of the total value of the property to the government exchequer under different heads for registering the apartment. House Building Finance Corporation is the only government institution dedicated to the financing of homes. Over the last 15 years this institution has been constantly cash starved and has made negligible contribution to the financing of this sector. In Bangladesh there is virtually no financing facility for this sector and almost all procurements are made with 100% equity. Recently some private institutions have entered the housing financing business but the cost of borrowing from these institutions is prohibitive.

Development of High-rise Building

High-rise buildings probably were first constructed in response to the corporate need for increased direct communication and expansion of business operation. Businessmen understood the need for proximity and personal communications and quickly recognized the value of “going vertically up” within a compact business core in the central city. This philosophy has remained, all over the world, despite the extraordinary technical advances made over the last 50 years in both transportation and telecommunications. The corporate world is not the only beneficiary of high-rise development; often other enterprises that serve corporate business or its employees also locate themselves in high-rise structures. Offices for lawyers, accountants and other business related professionals are established in close proximity to the corporations, often being located in the same building. Medical and dental practices open where they can capture and serve office workers as well as the general urban population from a central location. Even where the structure bears a corporate name and was built specifically for a corporate tenant finally ends up catering to various professional and business clients. Today’s high-rise building usually contains a variety of tenants. The city itself benefits from the concentration of business space and business activity that high-rise development generates. Land values are greater in the down town areas of cities and at other prime locations that are highly attractive. In most cities, high-rises have evolved in concentrations, and those concentrations generate the highest tax returns to local government. For example in Chicago, approximately one-third of the city’s real estate tax return comes from the greater downtown area covering less than 7% of the total area of the city. Depending on overall factors, during the last three decades, Dhaka City attempted to expand vertically to meet the problems of urban population explosion, scarcity of land and spiraling land price. High-rise structure also has a positive influence on city form and organization. The tallest building in Dhaka (30 stories) has been constructed at Motijheel for office purpose. High-rise buildings for residential purposes are being seriously considered to provide an answer to urban housing problems. How far this is tenable in context of conditions prevailing in developing countries must be studied in greater depth so that planned growth in high-rise housing construction can be promoted. Because of the great size and height the development of tall buildings usually involves active interaction of public and private decision-makers. Successful public private collaboration usually revitalizes the urban environment. Thus tall building development in the form of office towers, hotels and residential apartment buildings can become a critical part of revitalization in major cities of the world, including Dhaka. In terms of Dhaka it can be seen from the map (Figure 4) that the location of the majority of the high-rise structures are clustered in the business districts and central city areas where land value is highest. The reasons of this development are as follows:

· Easy access
· proximately of supporting facilities of offices.
· Higher rate of return on investment.
· Besides the land value there are other reasons for the construction of high-rise structures to accommodate office staff where land is limited.
We can safely say that high-rise structures in other locations is not suitable or attractive because of· Lack of access, Absence of supporting services, Lower rate of return

Current State of Tall Building in Bangladesh

The history of tall building in Bangladesh is only four decades old. Broadly speaking two types of high-rise buildings are constructed in terms of use type: Institutional buildings including government & commercial office buildings, hotels etc. Residential buildings particularly for middle and high income groups.  The trend that started in 1963 with the construction of 11-storied WAPDA building at Motijheel, the Central Business District (CBD) of the capital city Dhaka has currently gained a tremendous momentum. Although tall buildings are being constructed in few numbers in other cities of the country, almost all the existing and under-construction tall buildings of the country are located in the capital city. In Dhaka, there are about 120 such notable buildings clustered mainly at the Motijheel commercial area and in places like Eskaton, Mohakhali and Banani. If one compares the number of tall buildings in the capital city with the size of the greater Dhaka with a present population of about 10 million, the insignificant proportion of the tall buildings with respect to the overall scenario becomes evident. The growth of tall building in Dhaka City with time has been shown graphically in Figure 5.It is evident from the figure that a steady increase in the number of tall structures has taken place in the recent years. Whereas in the sixties and seventies, on n verge five high rise buildings were constructed in Dhaka City, in the eighties about twenty tall buildings were constructed. Construction of tall structures attained its peak in the nineties, and, in the last five years about 50% of the total present number of all tall buildings of the capital city has been constructed. The trend of going high is still there.

Prospects and Problems of Tall Buildings

It is almost inevitable that high rise construction will increase in future in Bangladesh. In fact, in a fast growing metropolis like Dhaka where, land is scarce and land value is high, there is no other obvious option but to go for tall structures. In a country where expatriate consultants and contractors are being inducted in almost every field of technological activity, it is interesting to note that all the tall buildings in Bangladesh have been planned, designed and constructed by local architects and engineers. But high rise buildings, both commercial and residential; of Bangladesh have already revealed their merits and demerits in the very short time that they have been serving the community. Some of the advantages of tall buildings are given below:

· It increases land-use density leading to proper utilization of inner city land.
· If properly designed and constructed it can increase the user efficiency for both commercial and residential use. It can bring positive effect on city form.
· High-rise buildings and the users that occupy them usually return more revenue (benefits) to local governments than they require in services (costs) from them. This positive cost-benefit ratio is often used as a measure of the attractiveness of a development..  High-rise buildings have established an efficient setting for corporate business enterprise, a significant source of revenue for local government, and a business focus for the entire metropolitan area.

· Residential uses in high-rise have resulted in both success and failure. Tall apartment buildings have successfully fulfilled the needs of upper income and middle income families in different developing countries.

However, in the absence of proper urban planning and design, high rise buildings of Bangladesh are responsible, in many instances, for several problems leading to disadvantages for Dhaka and other city dwellers of Bangladesh. Some of the disadvantages that the existing tall buildings have demonstrated due to ill planning are listed below:

  • Ø Unplanned tall structure destroys the harmony in skyline
  • Ø It put pressures on utility services like water supply, gas and electricity.
  • Ø It increases traffic congestion and parking problem.
  • Ø It creates problems of light and ventilation for adjacent small structure.
  • Ø Fire fighting problem in the building.
  • Ø Problem related to inadequate number of lifts.
  • Ø Problems due to inadequate parking space.
  • Lack of community space.
  • Ø Lack of children’s playground.
  • Ø Socio-psychological problem.Besides, Bangladesh is recognized as an earthquake prone country by Bangladesh National Building Code (BNBC, 1993). Seven major earthquakes, magnitude equal to or more than 7.0 on the Richter Scale, had affected today’s Bangladesh during the last 150 years. But housings in Bangladesh seem to be constructed to meet the social demand, not as an earthquake resistant frame building. Mainly the following three unusual structural factors make the new housings in the country very seriously vulnerable to earthquake:
    · Ground and/or first story is appeared to be soft story (car parking story)
    · Frames are unfilled by masonry works supported only by sand-cement mortar
    · In some cases it is observed that beams are appeared to be stronger than columns
    The ground floor of typical six-story buildings and the ground and/or first floor(s) of high rise condominium are appeared to be soft story because these stories are not supplied with proper element such as shear walls and bracing etc. A lesson has repeatedly been learned from many earthquakes that the soft story is one of the most common causes of building failure.
    However, it is understood that in future high-rise building will continue to be a strong urban influence. It is obvious that Dhaka City is going to have a large number of buildings around 15-20 story high, both for office as well as residential purpose. However, building regulations must be maintained to reflect the special needs of these buildings particularly taking into account the traffic problems, fire safety, vulnerability to earthquake and setback rules.

In addition, stricter enforcement of the rules and better quality control during construction need to be introduced. Some of the opportunities of planned growth of Dhaka City, using the experience of other cities, have already been missed during the last three decades. But the high-rise expansion can still be planned to create a better urban habitat, but this will require the concerted action of planners, architects and engineers.

Land Use, Land Use Economy and Land Value

The trend towards construction of tall buildings in Dhaka is very much connected with the very high price of land in the main commercial and business districts. Since land value is very high in inner city areas, population density should be increased by adoption of multi-storied construction. In less developed areas, where commercial value is less, tall buildings are virtually non-existent. The overall picture of the land-use type in Dhaka has been shown in Figure 6. It is evident from the figure that only 39% of the total lands of the capital are in urban use, while 61% has rural or semi-rural use. High-rise buildings are constructed to ensure economical use of land in areas where land is scarce and its cost is high. Individual plot holders can save a lot of land by going in for multi-story buildings. However, the savings in a given sector of land depend on the gross densities in number of dwellings per acre including the land required for common amenities like parks, playground, schools, shops, road etc.

Dhaka has experienced an unprecedented increase in land value since the early seventies. In the past decade Dhaka has mainly developed along the two main axes towards the north of Dhaka. Due to huge increase in the population of Dhaka, the pressure on land for residential use has been very high. Since the sixties until today RAJUK has provided less than ten thousand plots at subsidized rate mainly for the middle and upper income groups. The value of land in Dhaka City, mainly in the central area, has increased at a rate much higher than the increase in cost of living in Dhaka. The price of high-class residential land has increased 100 times (approx.) during the period 1975-2000. In the absence of any proper land value records it is very difficult to compare the land value over the past decades. But Table 1 will provide some idea regarding the increase in land value between 1975 and 2000.

It has been stated that the big real estate companies are mainly responsible for the high price of land in the central area because they pay a much higher price for a good piece of land. It is argued that due to this reason middle and upper middle class families are being unable to buy land in Dhaka.

Area

Amount Tk. / Katha Tk. / Sq. Meter Tk. / Katha Tk. / Sq. Meter 1975, 2000

Baridhara

25,000
373
25,00,000
37,361

Gulshan

25,000
375
22,00,000
32,877

Banani

25,000
375
20,00,000
29,888

Mohakhali R/A

25,000
375
18,00,000
26,900

Dhanmondi

25,000
375
22,00,000
32,877

Azimpur

17,500
261
16,00,000
23,911

Mohammadpur

25,000
375
12,00,000
17,933

Shantinagar

20,000
300
15,00,000
22,417

D. O. H. S.

20,000
300
16,00,000
23,911

Shamoli

17,500
265
10,00,000
14,944

Cantonment Thana

20,000
300
10,00,000
14,944

Kamlapur

17,500
265
8,00,000
11,956

Saidabad

17,500
265
8,00,000
11,956

Gandaria

10,000
150
7,00,000
10,461

Bashaboo

2,000
30
8,00,000
11,956

Kalyanpur

17,500
265
8,00,000
11,956

Mirpur

10,000
150
7,00,000
10,416

 We are of the opinion; however, that Real Estate companies are just one among several reasons for the rise in price as the value of urban land is actually determined and fixed through competition in a complex economic process. Besides, there are other factors, which influence urban land value. These are social values, customs and others. On carefully analyzing the land value trend of Dhaka City and the suburbs for the last thirty years, a number of causes of high land value have been identified as follows:

a) Lack of investment opportunity in other sectors of economy.
b) Rapid urbanization and consequent scarcity of urban land.
c) Uncontrolled land market.
d) Lack of comprehensive land policy.
e) Inappropriate taxation policy.
f) Political instability.
g) High rate of inflation.
h) Land speculation and the role-played by brokers.
i) Land ownership being regarded as a symbol of social prestige.
j) Inflow of foreign remittances earned by Bangladeshis abroad, especially from the Middle East.
k) Land purchase by real estate developers.
Since land value is very high in inner city areas, increasing multi-storied construction will increase the density. Many parcels of inner city land are under utilized or vacant, which should be put to proper use for balanced growth. To achieve these objectives and to minimize the negative effects of high-rise constructions the following recommendations are suggested:

a) Proper rules and regulations for high-rise construction should be formulated and implemented.
b) In case of apartment, exclusive apartment law (condominium law) should be enacted and implemented by RAJUK and other concerned agencies.
c) Zoning law for Dhaka City in terms of use class and height class should be formulated and strictly enforced as per DMDP structure plan and related plans.
d) Particularly in the high cost areas of inner city vacant land tax and punitive tax for very low-rise construction should be enacted.
e) Building rules related to lift, parking and fire fighting should be strictly monitored and enforced by concerned agencies, as per Bangladesh National Building Code 1993.
f) In commercial areas low-rise structures should be totally discouraged by appropriate measures.
g) In high-rise/high density zones, co-ordination between utility agencies should be increased to plan in advance for high capacity utility mains.
However, in the context of Dhaka it is envisaged that in the future years high-rise construction will increase both for commercial buildings and residential development.
Construction Industry and Environment

Once undesirable environmental consequences of the use of a natural resource have been identified, there are two types of control, which can be exercised: control of the supply and control of the demand. Control of supply could be exercised by means of introducing land-use regulations, pricing of the resource and other measures, eliminating indiscriminate exploitation or reducing it to acceptable levels. Demand side controls aimed to restrict or change the nature of the activity. The goal is to reduce or eliminate the demand.

In the case of construction activity, which is acknowledged to be essential for virtually every type of development, an increase rather than a decrease is desirable in all developing countries. There are many ways in which the nature of current construction activity can be changed to make it less environmentally damaging, without reducing the total amount of construction in terms of the built space created or other functions it performs. These include:

– Improving land-use and pollution emission legislation and control
– Pre-construction environmental impact appraisals
– Greater use of demolition and mineral & agricultural wastes in construction.
– Extending the life of and reuse of existing buildings

 Potentialities in Construction Sector

The construction sector has great potentials. The traditionally used building materials are locally produced. Cheap labor, appropriate technologies and easy transportation system have also been a positive catalyst for the advancement of the construction industry.

(a) Building Materials: Locally available traditional raw materials can be used as effective construction materials. The government should publicize information regarding locally available building materials, its high productivity, the locations and accessibility. Local small-scale industries should be encouraged to produce quality-building materials. The Housing and Building Research Institute (HBRI) is encouraged to develop new building materials and techniques with the objectives of reducing costs and imports. On one hand, there is research into alternative and low-cost materials and techniques while on the other land; alternative building materials of indigenous sources like clay tiles get little interest.

(b) Labor Force: Construction industries can create employment opportunities. Institutional training should be facilitated for the unskilled laborers. Special vocational training should be introduced and training made essential for creating highly skilled specialized labor force.

(c) Appropriate and Simple Technology; Building technologies will differ from place to place. Use of appropriate and simple technology is essential to improve construction productivity. In Bangladesh the Local Government Engineering Department (LGED) has developed Low Cost. Reinforced Cement Concrete (RCC) piles, which have cost similar to timber plies. These low cost piles address the deficiencies of the timber piles and also possess additional advantages compared to cast-in-situ and pre-stressed piles. These piles can be used as compaction piles as well as load bearing piles. For small structures, the possibility of application of this pile is immense e.g., in buildings, bridges, culverts etc. The newly evolved RCC pile can be locally produced with relatively simple technology. These piles would provide a much better alternative to the timber piles, which are, at present, being widely used. The Low cost RCC piles will contribute towards better conservation of forest resources and thereby minimize degradation of the environment.

Apartment Development: Problems and Prospects

Apartment development in Dhaka City, as mentioned earlier, has become increasingly popular in recent days and is likely to continue for sometime. It has a number of plus points regarding solving housing problems of the city. But at the same time it has certain demerits. We propose to review critically both the prospects and problems. It may be worthwhile to describe here the types of apartments, which are now being built in Dhaka. Broadly speaking two types of apartment development can be noticed. Firstly, up to G+ 5 story walk up apartments, which are usually RCC frame structure with average fittings and fixtures (e.g. in-situ mosaic, concealed wiring with local fittings, best quality BISF sanitary ware etc.). These flats within the central areas are sold around Tk. 1000 per sq. ft. excluding the cost of parking space. An apartment of this type with an area of 1400 sq. ft. (3 bed rooms, 2 + 1 toilets) and a secured parking space will cost around Tk. 20-25 Lacs. The cost may be slightly higher if the apartment is located in a major road. The second types of development are those apartments in high-rise buildings of more than six stories. But the present trend in Dhaka City is 12-20 stories. The price of such apartments is presently more that Tk. 1300-2000 per sq. ft. plus the cost of parking space ranging from Tk. 1.5 Lac to Tk. 2.0 Lac per parking space in a good location.

Here it has been attempted to identify the major criticisms of apartment development as cited in the media. They are:

i. Economic: Mainly middle and upper income families are purchasing both walks up and high rise apartments. Lower middle and lower income groups can not buy such expensive flats.

ii. Services: In many apartment complex certain services (mainly recreational and community space, open area) are lacking. Problems associated with water supply, fire fighting and fire escape (mainly in high rise apartments), and inadequacy of lift are notable.

iii. Social: It is sometimes argued that high rise building prevents social contact with other neighbors, which can lead to socio-psychological problem.

The above mentioned criticisms can be contradicted on the following grounds:
i. Economic: The private apartment developers are catering for the middle or upper income group and thereby solving the problem partially for that group. This has noting to do with the housing problems of lower income groups. Only government and autonomous agencies can be helpful by subsidizing and/ or extending loans to their employees in apartment construction and/or purchasing. Private sector can only be effective when soft term credit area extended to private developers for constructing apartments at lower cost catering for lower income families.

ii. Services: Services provided are related to the cost of the apartment. In the private sector higher facilities will lead to higher cost which can be prohibitive even for upper middle income families. Lack of open space is entirely due to very high land cost in the good localities. Many associated problems regarding service and design problem can be very effectively tackled with proper institutional and design control. Sometimes these problems only arise in the cases of developers lacking in professional and financial expertise.

iii. Social: This can be minimized by more careful planning and design of high rise apartments. Rather than constructing matchbox type structure more intimate and personal design elements can be incorporated in high rise blocks.

Besides these broad criticisms, many small problems have been identified from the responses by apartment users in different apartment blocks in the city. These are cited below under the following headings:

 a) Planning Problems
i. Inadequate distance from one building to another.
ii. Some parts of the building are always shaded.
iii. Lock of green space.
iv. No relationship between surrounding built forms.
v. No fire escape or fire fighting provisions.
vi. Absence of community space or any playing area for the children.
vii. Exposed gas lines inconveniently situated at the main entry, which may be dangerously hazardous.

viii. Height variation between different closely associated buildings creating privacy problem.

ix. Absence of lifts or inadequate number of lifts.

x. Absence of mail box.

b) Planning and Designing Problems

i. Parking area is paved and totally open and unsecured in many cases.]

ii. Outer view is disturbed by unplanned telephone lines.

iii. Absence of garbage chute or garbage disposal arrangements.

iv. People drying wet clothes inconveniently from verandah or in ground space and spoiling the beauty of the building.

c) Design Problems
i. Ladders are used to approach the roof, which are inconvenient. In some apartments roofs can not be used at all.

ii. Secondary entry is more utilized than the main entry as it exposes the kitchen, or toilets of master bed etc.

iii. Entry to the building is through a dark place, which is not easy to locate.
iv. Entry to the apartment with long corridor which is an improper utilization of space.

v. Lack of proper outlet makes the stagnant air hot and unhealthy.

vi. Dining space is the circulation space with inadequate opening and designed without considering furniture layout.

vii. Privacy problem created between exposed living and dining space.

viii. Staggering stair cases with narrow stairs.

ix. Lack of proper ventilation or light in different rooms of an apartment due to improper planning of rooms.

x. Built-in closet is not functional in terms of sizes, shape and height.

xi. Absence of lightning arrester.

xii. No provision for installation of air-conditions units at later stage.
d) Construction Problems
i. Fitting and finish of toilet fixtures in certain cases are unsatisfactory.
ii. Constructional defect leading to cracks in the floors and walls.
iii. Dampness in external walls and in certain cases in internal walls.
iv. Excessive heats in the top floor due to lack of lime terracing.
For solving the housing problem in Dhaka city the following steps should be considered, some of these stapes are directly related to housing, while others are concerned with different issues having impact upon housing:
a) The growth of Dhaka City needs to be checked. This can be attained by developing small and medium towns through adoption policy of balanced urbanization and decentralization. By generation employment opportunities in these intermediate cities, the migration towards Dhaka can be trapped in those towers.

b) A metropolitan housing policy should be devised in conjunction with overall metropolitan transport and land policies.
c) Provisions of areas for high-rise, low-rise, permanent and semi-permanent structures should be made in the Master plan of Dhaka City. Expensive central city areas should be reserved for high rise developments. In this way the concerned authorities can provide higher capacity infrastructure at an optimum cost.

d) Housing development both in public and private sectors should conform with the development of physical and social infra-structures like roads, electricity, water-supply, sewerage, gas, telephone and the like.

e) Sprawl development of Dhaka City in any direction should be discouraged. Underutilized land within the city limit should be developed and properly utilized.

f) Special schemes for housing the urban poor and destitute by constructing low cost core housing with provision for upgrading on self-help basis should be adopted.

g) The private sector should be encouraged to cater for the upper middle and upper income groups.

h) Walk-up row housing and tenement blocks should be developed both in the private and public sectors to house the lower income groups.

i) Credit facilities for housing development for individuals and institutions should be modified to increase the housing stock.

j) National and municipal policies for high rise development should be formulated.

k) To check the mushroom growth of real estate companies there should be arrangements for scrutinizing the technical, financial and institutional capabilities of prospective companies.

Developing housing sector comprises not only building of houses but also the development of socio-economic infrastructure. In fact, a separate directorate of Real Estate could be established, which will inter link all the concerned agencies, related to house construction such as RAJUK, Dhaka Municipal Corporation, WASA, PDB, Titas and House Building Finance Corporation (HBFC). This will minimize the procedures and formalities associated with house construction.

All future activities of concerned agencies involving land, finance and utilities should be forward-planned under a common framework to increase the efficiency and minimize overlapping of responsibilities. The neglect of the private sector is a fundamental defect in our housing policy. A comprehensive and pragmatic housing policy should be adopted by the government, which will expedite housing developments. The economy of land use should be given top priority in any future housing policy.

A private housing-bank could be set up for financing housing development as in the absence of such a bank; land developers and promoters are very much handicapped. Such a specialized bank to tide over the housing crises deserves serious consideration.

Chapter- 7

CONCLUSION

Residence is one of the basic needs of human beings. The right to live in one’s own is a fundamental right of people and it is internationally recognized. The demand of housing in urban areas in developing countries like Bangladesh is dramatically increasing due to natural increase and its fast growth rate. Rural people are migrating not only to find jobs but many wealthy people are moving to urban areas like Dhaka city for the fulfillment of their expectations of better of their future generation, and for enjoying the modern facilities of the city life. This has resulted into a serious crisis all over the country especially in the major cities of Bangladesh. In recent time, the private real estate firms have taken initiatives by ensuring maximum uses of land in a planned way. In this system it is possible to accommodate more people in a comparatively small place. The Organization has an experienced and educated managing Director. The other directors of the Organization are also young and educated. Their innovative idea will help to create new opportunities for the organization but their creative ideas could not be implemented if the attitude of the employees is not changed. The executives, officers and staffs must be trained to change their negative attitude towards new concept of organization.

During the 12 weeks Dissertation program at almost all the desk have been observed more or less. Gaining knowledge of practical Real Estate business and to compare this practical knowledge with theoretical knowledge. Though all departments and sections are covered in the Dissertation program, it is not possible to go to the depth or each activities of division because of time limitation. So, objectives of this Dissertation program have not been fulfilled with complete satisfaction. However, highest effort has been given to achieve the objectives the Thesis program.

Recommendations

The construction in Dhaka has multi-faceted roles for sustainable development. It provides the direct means for physical development, expansion, improvement and preservation through maintenance. It is the key sector in city’s development. It provides the direct means for physical expansion, development and improvement. The planning and design component of construction is very vital and it contributes to high productivity. Appropriate planning and design for construction, use of modern equipment, efficient use of building materials, participation of construction actors and effective management are considered important factors for construction industry’s development.

It is understood from the experiences that the construction industry has multidimensional aspects, which include actors’ participation, building materials and equipment, building code and standards, regulations etc. It is also observed that the construction activities are frequently disrupted by the inherent problems. Considering all issues, following broad general recommendations both in the public and private sector should be taken into consideration:

a) Appropriate planning and programming for the construction project would be framed based on the nature of works.

 b) A major concern in the construction industry is the apparent backwardness in the adoption of new construction technologies for the adoption of new construction technologies and practices, which can reduce cost and increase quality.

 c) The authority with help of professionals should formulate general guidelines of building designs. Special attention would be given to prepare appropriate planning rules, building codes etc. based on the character of the area. It will also cover building regulations and related detailing of the building and also cover selection of materials.

d) It has been observed that the construction material and equipment differ from place to place, considering this fact, specialized standards and code should be made.

e) Simple and innovative technologies should be introduced in the construction sector for high productivity. The attention should be given on its acceptability to the construction actors. Affordability to the government as well public enterprises should be taken into consideration.

f) Research and innovation for development should be encouraged. Proper research support and financial support should be provided both in public and private sectors. Even groups of entrepreneurs and individuals should be encouraged by the policies.

g) Research outputs, available materials, energy consumption cost, environmental impacts and other information should be made available to the public through institutions and mass media.

h) Selection of building materials, the consultants are required in conjunction with experienced contractors.

i) Local based building materials as well as cheaper alternative/substitutes should be encouraged.

j) Special financial policies for consultants/contractors financing should be introduced. It would be included: i) reduction of bureaucracy, ii) generous advance payments, iii) risk guaranties etc.

k) Overall management effectiveness is essential for the construction sector. It should be managed on an institutional basis, and the construction actors have contractors, laborers, managers and other related actors as active participants.

l) Adequate legislative support is needed to recognize the construction sector as an important for national development. An extensive and multifold regulation is needed. It should includes civil engineering works, durability of construction outputs, all safety measures including loads, imposed deformations, environmental issues, fire and natural disasters etc.

 m) The establishment of regulations and control procedures is the traditional function of the government. It is needed to recognize the construction industry as an important sector for national development. The regulations and control can contribute a strong positive impact to reduce construction cost, environment hazards, promote greater energy efficiency in building and limit energy consumption and pollution etc.

n) Special attention would be given to protect the physical environment of the project’s site. Existing “Legal action” procedures would be updated in which legal action can be taken against the faulty actors.

The planning and design approach is very important components in the construction sector specially to ensure sustainability. The technology and innovation in the construction industry may reduce construction cost and time, as well as increase safety. New technological innovations, often in conjunction with materials and equipment, should be introduced into several of the disciplines within the construction industry. Such technology also ensures higher productivity, which can bring socio-economic prosperity to the country. The Government sets regulations on construction industry (building code, land use, tendering constructor’s negotiation and environmental regulation) in national and local level. Changes are also sought to improve quality, management efficiency, material flow, and maintain schedules by better organization and controlling of design and production process.

Bibliography

1.     Reference book(marketing related) 27.10.11
2.     News paper & magazine  6.11.11
3.     www.google.com  8.11.11
4.     www.wikipedia.com  9.11.11
5.     www.encyclopedia.com  11.11.11
6.     www.blog.spot.bangladeshi real estate.com 14.11.11
7.     www.rehab.com  16.11.11

Real Estate Sector in Bangladesh

Categories
EEE Organizational Behavior

Drive Test and RF Parameters of GrameenPhone

Abstract

UCE Int. Pvt. Ltd. had been my chosen workplace for Internship Program. I had been working in the organization from 8thOctober to 8th December, 2011. I was assigned as a trainee in the RF Survey to setup the network of GrameenPhone. I was under a Senior RF Engineer and had the full scope and independence to work on the project our project name was “GrameenPhone Drive Test Project”. While working on the project I had the scope to come cross many new thing of the Telecommunication system. This report contains all the information about my work experience with UCE Int. Pvt. Ltd. which starts its operation in Bangladesh from 2006.With in this period UCE work with All Telecom Operators and as also with Vendors. In UCE I have spent a superior time in learning and was content for my efforts, learning and performing. I had the experience of corporate and reporting working environment which affects an employee performance and approach to work, had good time in learning and performing. I had the opportunity to work in practical field. So sometimes I had to deal with harsh situations which RF Engineers experience. For better understanding of the program, we sometimes assigned by my project supervisor to do some study.

Company profile:

UCE was incorporated in 1998 in Malaysia. Today, they have four operational offices in Kuala Lumpur, Hong Kong, Surabaya and Bangalore with headquartered office in Kuala Lumpur to support our on-going projects in different countries. Their core expertise is providing Cellular Network Engineering, Consultancy and Project Management Services for Cellular Network Operators, Equipment Vendors and System Integrators in the wireless telecommunications industry.

As in Bangladesh UCE has started its operation in Bangladesh from 2006.UCE technical team is comprised of fully qualified professionals with extensive knowledge, hands-on experience and expertise in the field of cellular engineering. With the experienced management team and a highly competent technical team, UCE will be able to provide optimum solutions to meet the customer demands in this dynamic industry environment

Our Mission:

UCE offers four main categories of services to wireless telecommunications industry – Network Design & Optimization, Network Deployment, Network Auditing & Consultancy and Network Benchmarking. Our end-to-end services are all supplemented with complete program and project management expertise to ensure every service will result in good quality deliverables. Our expertise covers most Technologies in the world now, ranging from different voice switched networks to packet switched networks, namely GSM, GPRS, EDGE, CDMA and UMTS networks.

Network Design and Optimization

In this service, UCE will provision and allocate engineering resources within your company’s network design and optimization organization. With strong experience in Network Design and Optimization, our expertise will not only help spend up your network deployment but also, will provide on-job training and know-how knowledge transfer to the local engineers.

Network Deployment

This is a turnkey solution. UCE will take full responsibility in network design, optimization, acceptance and project management. With our strong technical expertise and different operation in different countries, we are able to leverage different expertise and ramp up or down project engineering resources easily to meet project requirement. You can be sure to have a good quality network launch

Network Auditing and Consultancy

A mature network with the aggressive growing traffics requires network detailed analysis, good expansion and long term strategy planning. In this service, we provide top consultants with at least 15 year experience in the technologies. Our consultants will audit the network from different aspects from technical to market analysis till long term network expansion strategy.

Network Benchmarking 

Network Benchmarking is an exercise to simulate the mobile users’ perception or to understand the network performance against other networks’ competitors. Different equipment vendors have different statistical formulas and measurement sensitivities. It is no other fair quality indicators except using network benchmark data to compare the network qualities. This exercise will deliver a report to pin-point the network strength, weaknesses and recommend the possible solution to resolve the network quality issues.

Technology:

  • GSM
  • GPRS
  • EDGE
  • TETRA
  • UMTS/WCDMA
  • CDMA

GSM:

Global Standard for Mobile Communication. GSM is a 2G technology after the pure analogue systems. This technology is a TDMA based system with eight time slots per frequency channel. A normal speech call uses one time slot; audio is typically transmitted on one time slot per frame. Each base station provides a base channel with basic information about the network and the base station in the first time slot of a carrier.The original GSM bands are designed at 900 and 1800 MHz but were complemented in the USA by a 1900 MHz band and the 850 MHz that was originally reserved f or analogue AMPS.
Frequency planning on the network side is critical to avoid interference and dropped calls. Interference with neighboring cells can be minimized through GSM features such as power control, DTX and frequency hopping.

GPRS:

General Packet Radio ServiceGPRS was designed to overcome the limitation of GSM technology on data traffic. It supplements today’s Circuit Switched Data and Short Message Service. Theoretically, it can support data speed up to 171.2kpps by combining all eight timeslots at the same time. This is about three times as fast as the data transmission speeds possible over today’s fixed telecommunications networks and ten times as fast as current Circuit Switched Data services on GSM networks. By allowing information to be transmitted more quickly, immediately and efficiently across the mobile network, GPRS may well be a relatively less costly mobile data service compared to SMS and Circuit Switched Data.
The physical layer now consists of four coding schemes (CS), which may be utilized for either the downlink (forward link) or the uplink (reverse link). 

EDGE:

Enhance Data Rates for Global EvolutionEDGE is an expansion of the GSM/GPRS protocol to support higher data rates. This is accomplished by utilizing 8-PSK (8-Phase Shift Keying) modulation technique and modulation coding schemes at the physical layer. This modulation provides an increase from 1 to 3 bits per symbol, thus improving the overall data throughput. The physical layer now consists of nine modulations coding schemes (MCS), which may be utilized for either the downlink (forward link) or the uplink (reverse link).

TETRA:

Terrestrial Trunked RadioTETRA is a TDMA standard, similar to the GSM standard. It uses four timeslots per carrier; the carrier bandwidth is 25 kHz. Similar to GSM, the first timeslot on the first Carrier transmits the BCCH, a logical channel that bears synchronization and control data.TETRA uses π/4 DQPSK (Differential Quaternary Phase Shift Keying). This modulation is highly efficient with spectrum resources, but requires high linearity of all RF components, especially the RF power amplifiers in the radios.The TETRA services are based on three major service classes with different air interfaces, all specified by ETSI:

  • Voice plus Data (V+D), circuit switched speech and data transmission, (ETS 300 392)
  • Packet Data Optimized (PDO), data traffic based on packet switching, (ETS 300 393)
  • Direct Mode (DMO), a simplex voice transmission between two mobiles without using a network. On a physical channel two simultaneous DMO calls can be established. (ETS 300 396)

UMTS/WCDMA:

Universal Mobile Telephone System/Wide Band Code Division Multiple AccessWCDMA is a 3G technology after GSM. This technology is designed based on the CDMA system. CDMA stands for code division multiple access. This means that the available frequency channel is broken down by different code sequences that are multiplied by the user signals of the individual subscribers. All subscribers transmit on the same frequency and at the same time.For WCDMA different base stations are distinguished by a different scrambling code, which makes cell planning a lot easier, since neighboring cells can re-use the same frequency! (However, the occupied “SNR” – or Signal to Noise Ratio is the limiting factor and characteristic for CDMA. 

CDMA:

Code Division Multiple AccessCDMA is a “spread spectrum” technology, allowing many users to occupy the same time and frequency allocations in a given band/space. As its name implies, CDMA assigns unique codes to each communication to differentiate it from others in the same spectrum. In a world of finite spectrum resources, CDMA enables many more people to share the airwaves at the same time than do alternative technologies

Introduction

GSM network consist of different cells and each cell transmit signals to and receive signals from the mobile station, for proper working of base station many parameters are defined before functioning the base station such as the coverage area of a cell depends on different factors including the transmitting power of the base station, obstructing buildings in cells, height of the base station and location of base station etc. The Drive Test (DT) perform in RF optimization GSM network to assure the availability, integrity, & reliability of the network. 

Drive test

Drive-testing plays an important role in creating and maintaining a  strong GSM network.  In mobile communication system drive testing should be used to collect real-time RF information from the field. Generally this is done using a vehicle, but it can also be carried out on foot where circumstances dictate (like inside a building for IBS Testing).In any case, keeping mobile phone network optimized is vital. Changes in the environment continually affect network performance. Operator can’t afford to have unhappy subscribers because there are holes in their coverage or because interference is causing dropped or blocked calls. To migrate to new technologies and applications operators need a drive-test system that will expand with their needs.

The Purpose of Drive Testing

Drive testing is principally applied in both the planning and optimization stage of network development. However, there are other purposes for which drive testing can be used:

  • To provide path loss data for initial site survey work
  • To verify the propagation prediction during the initial planning of the network.
  • To verify the network system parameters.
  • To provide the initial test parameters used in Benchmarking.
  • To verify the performance of the network after changes have been made e.g. when a new TRX   is added; the removal or addition of a new site; any power adjustments or changes  to the antenna; any changes in clutter or traffic habits.
  • To measure any interference problems such as coverage from neighboring countries.
  • To locate any RF issues relating to traffic problems such as dropped or blocked calls.
  • To locate any poor coverage areas.
  • To monitor the network against a slow degradation over time, as well as monitoring the network after sudden environmental conditions, such as windstorm or electrical storms.
  • To monitor the performance of a competitor’s network.

When to Drive Test 

Drive testing can take place during the day or at night and is dependent upon the Operator’s requirements and subscriber habits. Drive testing during the day will imitate the conditions as seen by subscribers, but may clog up the network if call analysis is being performed. Drive testing during the night will allow a greater area to be surveyed due to the reduction in vehicular traffic jam. It will also allow for certain test signals to be transmitted and tested, particularly when setting up a new site, without interrupting normal operation. However, night-time testing does not imitate the conditions experienced by subscribers. For planning purposes, drive testing is typically performed at night and for maintenance purposes, drive testing is performed during the day.

Where to Drive Test 

Some areas of a network will have greater performance problems than others. Drive testing should not be regular throughout the whole network, but should be weighted towards areas where there are significant RF problems. There may be other areas of the network that require temporary coverage during a certain time of the year e.g. an exhibition centre or a sports stadium. These areas should be examined and planned in greater detail. Sometime operators can perform drive test for their customary check for a certain city or some specific clusters of a city.

Types of drive Test 

Drive test can be performed in very many ways. Different types of drive test fulfill different types of requirement from the customer.

  • Single site Drive Test
  • Cluster Drive Test
  • Acceptance Drive Test
  • Site Swapping Drive Test
  • Benchmarking Drive Test
  • Functionality Test
  • Walk Test for IBS

Tools (Drive Test Kit)

Drive testing needs some distinctive type of tools, like some special mobile phones and software. The followings are list of tools generally required for drive test:Hardware:1.  Drive test vehicleFour wheeler vehicles are perfect for drive test to access important but tough access roads or muddy roads.2.  Power InverterThis device inverts DC power to AC power. We can use it to invert vehicle’s DC power to AC power to ensure uninterrupted power supply to the laptop and other electronic devices during DT.3.  Laptop computerDT laptop should be with good condition and configuration, like high speed processor and especially RAM volume should be more for smooth drive testing.4.  Mobile phones and phone chargerSpecial mobile phones designed with field measurement features.  How many mobile phone should we use during DT depends on the types of DT. Some testing requires one phone and some other requires two or more.  Chargers are also compulsory  to keep the phone always charged.5.  Data cablesData cable depends upon the model of the mobile phone. Every mobile phone has its own data cable to transfer measured data to the software installed in the laptop.6.  External antennasEvery mobile phone should be connected with external antenna during DT. Generally when we use mobile phones inside the car during DT, there is an enormous possibility to get poor field data. External antenna can minimize this problem. Usually it is attached on top of the vehicle using a magnetic base.7.  Car GPSGPS generally used for positioning purpose. In DT, positioning is very important both for visualization (current position during DT) and analytical point of view. Car GPS also attached on top of the vehicle like external antenna and connected with laptop through cable.8.  Dongle (Key for DT software)One of the most important hardware for drive test is Dongle. Every drive test software needs this key to run during DT. Except this key all the drive testing features of DT software will be disabled, until the key is not attached with the laptop. Physically it looks very similar as pen drive.9.  USB HubSometime when we need to work with two or more mobile phones then we need more USB ports, but our laptop ports are limited. So we have to use USB hub or PCMC USB card, which will provide us more USB ports to connect more equipment.

DT Route:Data collection Software

This is the software through which field data will be collected. With this software we can analyze the field data also. This software should be licensed from the vendor company for proper authorization. Every software has a key to work properly. The most popular software for data collection is “TEMS Investigation” from ERICSSON.

Digital Map:

During drive test digital map is necessary for finding the way to reach the selected site/cluster and do DT according to some predefined routes. We can load the digital map of the whole region or we can load the map of some specific roads that need drive test. This map comprises all the accessible DT route.

Cellfile:

We must load the cellfile into the data collection software. A cellfile contains all the necessary information related to the site, like ID of that site, assigned frequencies of that site, direction of the antennas of that site etc. Whenever we load the cellfile we can see the position of that site in the digital map. Then we can easily find out our required sites form the map and also the roads to be covered for that site.

TEMS PARAMETERS

On completion of the module one should be clear about the parameters required during drive test what does it mean and how much it is important.Parameters regarding in windows like :a) Current Channelb) Radio parametersc) Serving + Neighbors

Current Channel : 

  • Time: It is system time of computer.
  • Cell name: It displays the name of the sector which is serving according to the cell file that is loaded in TEMS.
  • CGI: It stands for the Cell Global Identity which is unique for every sector of the site. It consists of MCC,MNC,LAC,CI.MCC: Mobile Country Code 0 – 999 (e.g. 404), MNC: Mobile Network Code 0 – 99 (e.g. 98) LAC : Location Area Code 0 -65535 (e.g. 5101) CI: Cell Identity 0 – 65535 (e.g. 11001)
  • Cell GPRS Support:  Tells sector is having GPRS or not. Values are Yes or No.
  • Band: It tells in which Freq. Band mobile is operating e.g. GSM 900/ 1800.
  • BCCH ARFCN: It tells by which BCCH is the mobile station getting served.
  • TCH ARFCN: On which Traffic Freq. call is going on.
  • BSIC (Base Station Identity Code): It is combination of Network Color Code (NCC) (0 – 7) & Base Station Color Code (BCC) (0 – 7). e.g. 62. It is decoded by mobile on every Synchronize Channel Message.
  • Mode: It is shows in which state is mobile operating, Idle, Dedicated & Packet.
  • Time slot: On which time slot of current TCH call is going on. Viz. time slot no. of TRX.
  • Channel Type: Type of channel mobile is getting now.  Like BCCH / SDCCH/8 + SACCH/C8 or CBCH / TCH/F +FACCH/F +SACCH/F.
  • Channel Mode: Shows mode of coding like Speech Full Rate of Half Rate.
  • Speech Codec: It shows FR for Full Rate, HR for Half Rate & EFR for Enhanced Full Rate.
  • Ciphering Algorithm: It shows ciphering algorithm used by the system to protect data for privacy. E.g. Cipher by A5/2.
  • Sub Channel Number: It is displayed at  a time when mobile is on dedicated mode at time of call setup when it is getting SDCCH at that time it shows which SDCCH it is getting out of 8 available. E.g. 2.
  • Hopping Channel:  It shows that current sector is having hopping feature or not. Values are Yes or No.
  • Hopping Frequencies: It displays no. of freq. on which mobile is allowed to hop. viz. MA List for hopping of that sector.
  • Mobile Allocation Index Offset (MAIO): It is the number which tells from which freq. from given MA list for sector hopping has to be started. E.g. 0 means sector will start from first freq. to hop.
  • Hopping Sequence Number (HSN): Indicates sequence in which frequencies are allowed to hop from the MA List. 0- 63. 0 for Cyclic Hopping, 1 – 63 random hopping sequences.

Radio Parameters :

  • RxLev: Receiving level in terms of dBm that mobile is receiving from the site. Range of -30 dBm to -110dBm.
  • RxQual: Quality of voice which is measured on basis of BER. Range of RxQual 0 -7.
  • FER: Frame Erasure Rate it represents the percentage of frames being dropped due to high number of non-corrected bit errors in the frame. It is indication of voice quality in network.
  • BER Actual: Ratio of the number of bit errors to the total number of bits transmitted in a given time interval. BER is a measure for the voice quality in network.. Depending on BER RxQual is measured. E,g, BER 0 to 0.2 %   corresponds to RxQual 0. Max. BER countable and useful is up to 12.8 % which corresponds to RxQual of max. 7.
  • SQI : SQI is a more sophisticated measure which is dedicated to reflecting the quality of the speech (as opposed to radio environment conditions). This means that when optimizing the speech quality in your network, SQI is the best criterion to use. SQI is updated at 0.5 s intervals. It is computed on basis of  BER and FER. For EFR 30, FR – 21 & HR – 17 are respectively ideal values.
  • C/I : The carrier-over-interference ratio is the ratio between the signal strength of the current serving cell and the signal strength of undesired (interfering) signal components. It should be atleast > 9 .
  • MS Power Control Level: Displays range of power control from 0 to 8 depending upon network design. E.g. 0 means no power control and 1 means level that is defined by operator viz. 2 dBm less acc. To airtel.
  • DTX: Discontinuous transmission (DTX) is a mechanism allowing the radio transmitter to be switched off during speech pauses. This feature reduces the power consumption of the transmitter, which is important for MSs, and decreases the overall interference level on the radio channels affecting the capacity of the network.
  • TA: Value that the base station calculates from access bursts and sends to the mobile station (MS) enabling the MS to advance the timing of its transmissions to the BS so as to compensate for propagation delay. Value of 0 means MS in radius of 550mt. From BS.
  • RL Timeout Counter (Cur): This parameter defines the maximum value of the radio link counter expressed in SACCH blocks. Range of 4 – 64 in step size of 4. it shows current value of RLT. Decrease by 1 but increase by 2. When it reaches zero it results in normal DROP Call.
  • RL Timeout Counter (MAX): This parameter defines the maximum value of the radio link counter expressed in SACCH blocks. Range of 4 – 64 in step size of 4. it shows current value of RLT. Normally 16, 20, 24.
  • MS Behavior Modified: This window shows current settings for the mobile station, for instance whether handover is disabled or multiband reporting enabled.

Serving + Neighbor (Figure):

  • Cell Name : Name that describes the neighboring cell as per the cellfile.
  • ARFCN : Channel number mobile receives as neighbor.
  • BSIC : BSIC of the neighboring cell.
  • RxLev : Receiving Level in dBm of neighboring cell.
  • C1 & C2 : These are the cell path loss criterion and cell reselection criteria. Valid during idle mode of mobile station.
  • C31 & C32 : GPRS signal strength threshold criterion C31 and GPRS cell ranking criterion C32. Valid both in packet idle and packet dedicated mode.

GrameenPhone  RF  ParametersCluster test result before and after swap Rx Level Sub dBm before and after SwapRxLev statistic before swapBar chart 1a: RxLev statistic before swap                                Bar chart 1b: RxLev statistic after swapRxQual Sub before and after swap:bar chartBar chart 2a: RxQual Sub before swap                        Bar chart 2b: RxQual Sub After swap

Events and statistic before and after Swap:     Preliminary Checklist before Functionality Test

  • Collect Cellfile ; If not available create cell file
  • Collect CDD file or Engineering Information Table
  • Collect Neighbor information table
  • Collect map of the target area with Drive Test route
  • Collect Cluster Boundary Map
  • Collect vector map and street information
  • Contact list with the responsible RF engineers and the OMC/BSS engineers on BSC/NOC
  • Ensure all DT tools and inverters are working properly
  • Ensure there are enough fuels in the car
  • Ensure that there is enough balance in SIM card before leaving
  • Ensure that Car is in good condition
  • Ensure that there are no alarm in the site
  • Calibrate the tools properly & measure if it is same RxLevel for all MS
  • Ensure all the drivers of laptop, mobiles & GPS are installed properly
  • Ensure you have backup software of Win XP, Laptop drivers, GPS drivers, TEMS
  • Ensure  phone battery is fully charged
  • Ensure Laptop is fully charged
  • Ensure you have connected +ve & -ve terminal of the inverter properly with car battery; mark the cables if necessary
  • Fill up the DT daily log sheet
  • Start a test log file to ensure that measurement is working fine
  • Check that you have saved the log files after finishing the measuring tour
  • Keep all the tools & accessories into the tool bag organized. No sharp bandings of cables or cable ties/tapes are not allowed in the bag.
  • Check that you have switched off all the MS at the end of work

Single Site Functionality Test The SSFT is performed with BTSs, Transcoders, BSCs and MSCs installed. The results of each measurement shall be confirmed by pass/fail or registered in the data sheet..The test comprises the following steps in order to perform the SSFT

  •  Execution of Mobile to/from MSC test number on each sector
  •  Execution of Mobile to Mobile calls.
  •  Execution of Originating and terminating SMS from each sector
  •  Verification of correct antenna orientation and correct BCCH on each sector
  •  Verification of BCCH footprints plots with adequate mobile Receive and C/I levels.
  •  Verification of frequency hopping, AMR FR, AMR HR
  •  Verification of Receive and Transmit powers
  •  Verification of Handover and Signal Quality – RxQual (Full & Sub values)
  •  Verification of the Packet data calls (Upload and Download) with GPRS/EDGE if applicable
  •  Verification of working of the inter vendor Handover with the neighboring sites, where ever applicable

Common Problems One of the most common faults with a new site build is swapped feeders. This occurs when the feeder(s) for one sector is connected to a different sector.DT engineer will ensure that there is no problem over the site regarding to sectors swap and bad quality. If DT engineer will find any issues or not sure about that, then he must inform the UCE DT coordinator or BSS engineer of Huawei.Common problems expected are—–1. Swapped feeders.2. Wrong tilts or wrong azimuths.3. Damaged hardware on the sites or other RBSs.4. Parameter errors, sites going down during the drive, or5. Wrong antenna types installed.Feeder Swap /Cross Feeder Test:Procedure 

  • Drive along the main beamwidth of the antenna (around 50 to 250 m)

a)      First preference DT in locked channel per cellb)      Second preference DT in idle mode per cell

  • While driving along sector A, if cell reselected along  B or C or call camped in opposite sector then there is a feeder swap between that two sectors. Similar cases for sector B or C.
  • Also during drive along sector A, if cell A have poor RxLevel (-80 to –95 dBm within 50 m) while other sector (B or C) have good RxLevel (-47 to -60 dBm) then there is a possibility of cross feeder.

Feeder Swap /Cross Feeder Test The first step to identify swapped feeders is to display the strongest BCCH (by signalStrength) along the drive route as shown in figure s.Figure-1 : It is clearly evident that the feeders for Sector1 (BCCH 48) and Sector 3 (BCCH64) are swapped. Alternatively, it could be that the frequency allocations are wrong for those two sectors.Figure-2 : Suppose we run a drive test through the area served by the  cell whose feeders are crossed display the ServBCCH attribute on the Map while the cell sectors are colored by BCCH. This is what we might see:Crossed Feeder SituationWhat is Crossed Feeder Issue?

  • There are server types of crossed feeder:
    • Crossed transmit feeders
    • Crossed receive  feeders
    • Crossed transmit and receive feeders

Crossed transmit feeders:Crossed transmit feeders will result in the swap of 2 or more sectors BCCH frequency and TCH’s. As the sectors are pointing in the incorrect direction, performance will suffer as the frequency plan has been changed and a greater degree of interference will be present.In DT, we will find that the handset receives the single which shouldn’t have been received in the current cell.

Crossed receive feeders:It is not easy to detect this fault by DT, because the BCCH frequencies will appear exactly as  they were designed.   However, the statistics for the cell would   help us to detect the fault:

  •    Uplink signal strength would be very poor
  •    Link balance would be larger than expected
  •    Handover success rate would be very low

Crossed transmit and receive feeder:The symptom is similar with the fault “crossed transmit feeder”, and we can detect  the fault      by DT easily .

The problems raised by crossed feeder issue:Crossed feeder will raise many problems, such as:

  •  A greater degree of interference
  •  A poor uplink signal strength
  • A  poor performance of handover

The problems raised by crossed feeder issue:Normal Situation                                     Normal Situation Crossed Feeder Situation                               Crossed Feeder Situation.Log Issues

  • Call
  • SMS
  • GPRS
  • Handover
  • Co-channel handover

Call:We take call sample for minimum one minute. it is very important in drive test because through call sample RNO engineer call analyses the present situation of their network quality. By this log the can understand if there is any drop call or silent call and any noise behind the call. They can take necessary steps if the need to improve their service.

SMS:Just we take the record because to see that the sms service is running successfully.

GPRS: Just we take the record because to see that the PDP context activated.

Handover:Handover is an important issue in Drive test or in the swap test. Basically after initialization of the new BTS it is important to observe the proper handover quality in that serving BTS for every cell. There are two types of handover performed during DT of a BTS. These are the Co channel Handover and the Neighbor channel Handover. The purpose of the handover is to see the quality of handover between the co and neighbor channel handover that how frequently the handover is made.Before ho takes place, system needs to decide the best candidate. First it repeats consecutive measurements to rank the cells according to HO algorithm. Please note that HO algorithm in different vendors systems or even in operators using the same equipment could be different. Some systems might rank the cells looking to their signal strength or some can rank them looking to their Path Loss or some can use both.

The purpose of handover analysis in DT is:

  • Understand the wireless handover performance of network.
  • Find out whether the handovers are healthy in this network.
  • What is typical handover failure in this network?
  • Find out whether neighbor audit work is needed in this network.

Co- channel handover:Co-channel handover is the way to handoff the call in other cell of the BTS from the one cell of the same BTS. It is perform to watch the frequent handover capacity of the same BTS.Say this is our BTS and the serving cell is A,B,C. for the co-channel handover we have to hand off the call in an a sequence. Like from A to B then B to C and C to A like the clockwise way. After that we have to maintain the sequence in a alternative way that means the anticlockwise way which means that from A to C, C to B, and then B to A. After this stapes the handover mechanism is performed. During DT in TEMS 8.0.4 we normally perform this operation by targeting the BCCH of the serving cell to handoff the call. Normally co- channel handover perform from the close position of the serving BTS.

Problem in co-channel Handover:

  • If the position of MS is far away from the serving BTS then it is impossible to perform the handover. It is because of the cell direction. Near to the BTS it is quite easy to take handover frequently of the serving BTS.
  • If there is feeder cable swap then it is very difficult to take reading of the co-handover mechanism
  • Some theme the BTS have overlaid and the under laid sub cell. On that case the handover may happen but there is an extra massage “Handover Intracell” which is not good always.

Neighbor handover:Neighbor handover is another basic objective of the DT. It ensures the network quality and the Call drop situation in a network. It also dedicates the coverage gap and the situation of the network coverage.In DT one has to perform the neighbor handover for the every serving cell of the BTS. Normally the handover perform between the neighbor cells of the serving cell which power is greater than any other serving BTS. Normally the handover is performWithout locking the frequency when the MS is in traffic mode and watch out the frequent handover between the neighbor cell. But some time we have to lock the frequency and perform handover by targeting the neighbor frequency.

Problems with the neighbor handover:

  • Handover problem due to vendor separation:  It is some time observes that there is a handover failure because of the vendor mismatch. GrameenPhone just change their BTS from Ericsson to Huawei. As a result it is quite difficult to make handover operation between these two vendors. Because of some parameter related to their technologies. In this situation it is observe that the new BTS keep the call and do not perform the handover operation to any old BTS even when the power level (Rx level) is too poor.
  • Neighbor Cell Missing: Some time it is observed that the handover operation perform  between two neighbor cell which are far away, even there is another cell close to the serving BTS. This situation basically occurs during targeting one frequency from another and the poor signal level due to the building or other things. In this situation during the handover operation suddenly the cell is appear after the handover perform. On that time the “neighbor cell missing “massage just appears.
  • Co- handover Problem: If the whole process start from very close to the BTS then there might be chance of Co handover in the same BTS.
  • Handover Intra cell: The cell from which we handoff the call to the other cell of other BTS, if serve OL and UL sub cell then the handover intra cell situation might come. It also occurs when we go far from the BTS, mostly from the high traffic area to the low traffic area and the TCH conversion from full rate to the half rate traffic.

Conclusion 

In conclusion I have to attest my supervisor Asif Mohammad Badruddoza of UCE Telecom Solution Pvt Ltd. I really appreciate the way I have been guided through this internship program with UCE, beginning from the opportunity to take the time I needed to refresh and expand my knowledge in several issues concerning Drive Test and RF Parameters, over a somehow protected period where I could discover and learn to value my new working environment, and finally earned the confidence to deal with assignments myself. It is through them that I did enjoy my work every day. Having a rare opportunity to use the knowledge and skills that I had acquired, I learned how to handle critical network faults and got the new ideas.Career-wise, the internship program undoubtedly will enrich my curriculum vitae (CV). Also, having gotten a chance to interact with most staff, I have had an insight on how to shape my career towards a humanitarian job in the near future.The internship program gave me a chance not only to work with UCE but also a chance to learn from the good experts. This would reflect much onto my experience. Working with different business organizations was a rare chance for me.

grameenphone

Categories
Architecture

Four Storied Building with Interior and Without Interior Columns at Ground Floor

INTRODUCTION:

 General:

 Bangladesh is one of the most density populated countries of the world. The population of Dhaka city is much higher than its capacity. The pressure on the land is tremendous, land value is already very high and continuously increasing. People who cannot have a piece of land can have a flat or apartment and it is also likely  that he will have a car. Due to higher land value or due to lack of sufficient land, people do not get large space. So the building should not have sufficient space for parking. Again parking maneuver is very difficult is closely spaced column areas. It may not be feasible to have separate land for parking due to lack and highly priced land adjacent to the building. The most feasible option would have been the parking facilities within the building in the ground floor.

The building having more columns in the ground floor reduces the open space in the ground or parking floor. The parking area can be significantly increased if the building can be built with less number of columns in the ground floor. This thesis focuses in the analytical study supported by design of a four storied building built over 2 kathas  (1440 sft ) of land for two alternatives, one having 11 columns at ground floor and 16 columns on all over floors, others having 16 columns on all the floors.

This will give a comparative picture about the advantages and disadvantages, suitability and feasibility, particularly in terms of economy so as to enable someone to choose the suitable option.

 Objective of the Study:

The objectives of the study were:

  • To explore the possibility of obtaining an uninterrupted column free space for a relatively small piece of land by eliminating interior columns at ground floor.
  • To analyze of a four storied building built over 2 kathas (1440 sft ) of land for two different framing systems, one with 16 columns for all floors and the others having 11 columns at the periphery and bracing system at the ground floor, the remaining floors will have 16 columns.
  • To identify the proper location of bracing at ground floor in order to reduce the stress results in the structural members.
  • To compare the above two alternatives particularly in terms of economy.

Scope of the study:

The scope of the study is as follows:

i. Analysis Phase

  • Structural analysis by using  ETABS Analysis.

ii. Design & Estimation Phase

  • Beam & Column Design & Estimation through manual calculation.

Organization of the Thesis Works:

The thesis has been arranged in the following order also including as well as appendices used for the study-

Chapter- 1: Includes a brief introduction, objectives of the study and organizations of the

       thesis paper.

Chapter- 2: Includes compilation of the relevant literature that has been reviewed for the

                   study.

Chapter- 3: Includes a detailed description of the analysis.

Chapter- 4: Includes the comparison of the results of analysis.

Chapter- 5: Includes conclusions and recommendations for further study.

LITERATURE REVIEW

General   :

Now a days the parking problem in residential buildings has become a great problem because many of the buildings are build over a small piece of land which are four, five or six storied. Many of the residents have their own car and every one need a sufficient parking space and easy parking maneuver. But the column spacing in fact omitting the interior columns then the parking provision will be improved. But it will have to remember in mind that economy is an important factor in this matter. This is a recent problem in our country. So many researches have not been produced regardless of this matter and in the developed country people do not face such kind of problem due to the small piece of land because their population growth is not as high as ours and their every city is sufficiently planned.

 This thesis is a comparative study on the performance of two four storied buildings built over 2 katha (1440 sft) of land is made. The buildings considered are a similar type, only greater floor area is taken but one with 16 columns and other with 11 columns at the ground floor. The rest of the floors of each building have 16 columns. This study has been made mainly to explore the possibility of obtaining an uninterrupted column free space for such a small piece of land. The linear elastic analysis was made using ANSYS finite element package. Both 2D and 3D analysis were performed to obtain the stress resultants for different structural elements of the buildings. Different load combinations were considered in the analysis. The second conditioned building bracing system will be provided at the ground floor. The proper position of the bracing will have to be located and be made the proper design of the bracing.

Now the main focus is to make the building economical with sufficient parking space and increase lateral stability.

Concrete structures: design  components & types

 Generally, a concrete structure is made of a set of frames consisting of several vertical and horizontal members. That is why , it is known as “ frame structure”. There are two types of frame structures:

  • Low Rise Structures: Total height is 40~60 ft above the ground level. Earthquake and wind lodes are not considered during design of such Structures.
  • High Rise Structure : Total height is more than 60 ft above the ground  level . Earthquake and wind loads are considered during design of such structures.

The whole frame structure is divided into three parts, They are-

a)      Superstructure : This is the portion which is above the ground level and consisted of the following design components:

                                i.       Beams – All horizontal  reinforced concrete member.

                              ii.       Slabs – Plain and flat reinforced concrete surface , which rest on beams.

Two types:   1. Roof –Top slabs

                     2.Floors – all slabs except the top one.

                            iii.       Columns – all vertical reinforced concrete member on which beam rest.

b)     Substructure: Portion of the structure , which is below the ground level. Basement floor , car parking etc. are constructed under the ground. Substructure also consists of beams, slabs and columns.

c)      Foundation: This is the portion on which the total structure rest. Foundation of a structure may be footing or piling type

Review of the structural elements of a building

Slab:

 The slab provides a horizontal surface and is usually supported by column, beams or walls.  Slabs can be categorized into two main type : one –way slabs and two – way slabs. One – way slabs is the most basic and common type of slab. One – way slabs are supported by two opposite sides and bending occurs in one direction only. Tow – way slabs are supported on four

Sides and bending occurs in two directions. However, slabs supported by four sides may be assumed as one- way slab when the ratio of length to width of two perpendicular sides exceeds 2. Although while such slabs transfer their loading in four directions, nearly all load is transferred in the short direction.

Two- way slabs carry the load to two directions, and the bending moment in each direction is less than the bending moment of one – way slabs. Also two – way slabs have less deflection than one – way slabs . Compared to one – way slabs, Calculation of two – way slabs is more complex.

Types of slab:

Mainly two types of slab, they are-

1)      One  way slab and

2)      Two way slab

Different types of one way slab-

a)      One way beam slab

b)     One way flat slab

c)      One way joist floor system

Different types of two way slab-

a)      Two way Beam slab

b)     Two way flat slab

c)      Two way waffle slab

Beam slab is supported by beams, for this reason the loads are transferred to all floor beams. A flat slab usually  does not have beams or girders but is supported by drop panels or column capitals directly. All loads are transferred to the supporting column, with punching shear resisted by drop panels. Waffle slab consists of a floor slab with large-to-width ratio less than 2, supported by waffles.

Beam:

 Beam can be described  as member that are mainly subjected to flexure and it is essential to focus on the analysis of bending moment, shear, and deflection. When the bending moment acts on the beam, bending strain is produced. The resisting moment is developed by internal stresses. Under positive moment, compressive strains are produced in the top of beam and tensile strains in the bottom. Concrete is a poor material for tensile strength and it is not suitable for flexure member by itself. The tension side of the beam would fail before compression side failure when beam is subjected a bending moment without the reinforcement. For this reason, steel reinforcement is placed on the tension side. The steel reinforcement resists all tensile bending stress because tensile strength of concrete is zero when cracks develop. In the Ultimate strength design (USD), a rectangular stress block is assumed. The design of beam is initiated by the calculation of moment strength controlled by concrete and steel.

Types of beam:

 Most common shapes of concrete beams:

a)      Single reinforced rectangular beams,

b)     Doubly reinforced rectangular beams,

c)      T – shape beams;

d)     spandrel.

In cast – in- place construction, the single reinforced rectangular beam is uncommon. The T-shape and L-shape beams are typical types of beam because the beams are built monolithically with the slab. When slab and beams are poured together, the slab on the beam serves as the flange of a T-beam  and the supporting beam below slab is the stem or web. For positive applied bending moment, the bottom of section produces the tension and the slab acts as compression flange. But negative bending on a rectangular beam puts  the stem in compression and the flange is ineffective in tension. Joists consist of spaced ribs and a top flange.

Column:

Columns support primarily axial load but usually also some bending moments. The combination of axial load and bending moment defines the characteristic of column and calculation method. A column subjected to large axial force and minor moment is design mainly for axial load and the moment has little effect. A column subjected to significant bending moment is designed for the combined effect. The ACI Code assumes a minimal bending moment in its design procedure, although the column is subjected to compression force only. Compression force may cause lateral bursting because of the low- tension stress resistance. To resist shear, ties or spirals are used as column reinforcement to confine vertical bars. The complexity and many variables make hand calculations tedious which makes the computer – aided design very useful.

 Types of column

Reinforced concrete column are categorized into five main types-

a)      Rectangular tied column,

b)     Rectangular spiral column,

c)      Round column,

d)     Spiral column, and

e)      Columns of others geometry ( Hexagonal, L-shaped, T- Shaped, etc ).

Tied columns have horizontal ties to enclose and hold in place longitudinal bars. Ties are commonly No. 3 or No. 4 steel bars. Tie spacing should be calculated with ACI Code. Spiral columns have reinforced longitudinal bars that are enclosed by continuous steel spiral. The spiral is made up of either large diameter steel wire or steel rod and formed in the shape of helix. The spiral columns are stronger than tied columns.

Footing

The foundation of a building is the part of the structure that transmits the load to ground to support the superstructure and usually the last element of a building to pass the load into soil, rock or piles. The primary purpose of the footing is  spread the loads into supporting materials so the footing has to be designed not to be exceeded the load capacity of the soil or foundation bed. The footing compresses the soil and causes settlement.

 Types of Footing

The most common types of footing are strip footings under walls and single footings under columns.

Common footing can be categorized as follow-

a)      Individual column footing

b)     Wall footing

c)Combined footig

d)     Mat foundation

METHODOLOGY OF THE STUDY

General  :

This chapter gives the outlines of the procedures that were that followed to complete this study. Few steps were considered, many references were gone through and ACI /BNBC Building Design Codes/Specifications were followed to get perfect result so that the objectives of this study can be fulfilled.

Design data and specifications considered in this study

The whole study was carried out based on few considerations and specifications which are summarized in Table 3.1 below.

 Table 3.1 Summary of the design considerations and specification of the study

Items                                   Description
Design method Ultimate Strength Design ( USD )
Design Code For design purposes:
  • American Concrete Institute ( ACI ) Building design code, 2005
  • Bangladesh National Building code ( BNBC ), 1993

For estimation and costing:

  • Schedule of rate for Civil Works, 12 edition, Public Works Department (PWD), 2008.

Type of structures

  • Beam Supported slab system

Building system

  • Frame structure
  • Low rise
  • Residential ( 4 storied single unit building)

 

Items                                   Description
Material    properties
  • 60 Grade reinforcing bars having fy =  60000 psi
  • Concrete compressive strength, f’c = 3000 psi
  • Normal density concrete having wc = 150 pcf
  • Steel ratio for column, g = 2%
Loading
  • Floor plus ceiling finish = 30 psf
  • Partition wall weight = 40 psf
  • Live load = 40 psf
  • No earthquake and wind load are considered
Members Sectional properties
  • Slab type = Two-way
  • Beam type = Singly rectangular
  • Column type = Tied
  • Thickness of all walls = 5 inch

ANALYTICAL STUDY

General:

The analysis is made by using ETABS finite element package. Here different conditioned building will be analyzed and from these results, will be considered that condition which will satisfy the requirements. For this purpose different terms and condition will be used. Finally the governing condition will be used. The whole analysis will be done based on ACI and BNBC code.

The Building Geometry:

The building geometry is as follows:

Option I Building: All the floors have 16 columns and all story height is 10 ft. Typical column size is 10″ x 15″ and typical beam size is 10″ x 12″. The layout is shown in the figure- 4.1

Option II Building: Bottom story have 11 columns but other story have 16 columns. All story height 10 ft. Column  and Beam size will be selected in accordance with analysis. A special  in the figure- 4.4

 The loads considered:

Dead loads, D. L. = 40 psf

Floor finish, F.F   = 30 psf

Live load,  L.L.    = 40 psf

 Load combination:

DCON 1 = 1.4 D.L.

DCON 2 =1.4 D.L. + 1.7 L. L.

Legends:

D.L. = Dead load

L.L. = Live load

Beam and Column layout of option I and option II building

Ground Floor

Figure  : Option I Building ( Ground Floor )

 Typical Short Section of Option I Building

Figure : Typical Short Section of Option I Building

Typical Long Section of Option I Building

Figure : Typical Long Section of Option I Building

Option II Building

Figure  : Option II Building ( Ground Floor )

Typical Short Section of Option II Building

Figure : Typical Short Section of Option II Building

Typical Long Section of Option II Building

Figure : Typical Long Section of Option II Building

Option I Building

Figure  : Option I Building (3D View)

 

Table 4.2 : Analysis result of beams for option I building

Beam

+M

(k-ft)

-M

(k-ft)

Vu

(kip)

B1

3.390

6.780

3.920

B2

6.007

12.014

4.710

B3

4.078

22.287

5.36

B4

5.174

10.348

5.386

B5

7.132

14.263

4.89

B6

5.254

22.646

3.76

B7

5.099

10.199

6.273

B8

6.377

12.754

4.825

B9

3.008

6.177

4.635

B10

3.295

6.590

3.938

B11

4.328

8.650

4.881

B12

1.752

3.503

2.669

B13

1.259

5.830

4.810

B14

1.591

3.183

1.445

B15

7.667

15.335

7.018

B16

2.281

11.249

1.976

B17

3.413

6.826

2.645

B18

7.331

29.574

1.835

B19

2.413

10693

1.835

B20

4.392

8.785

4.434

B21

9.223

18.447

7.795

B22

3.137

6.275

4.010

B23

3.050

6.099

3.701

B24

2.566

5.133

1.588

 Analysis of building without interior columns

Building Without interior columnsFigure  : Building Without interior columns (3D View)

Table 4.3 : Analysis result of building columns for without interior columns

Column

Axial Force,

P (kip)

M2

(k-ft)

M3

(k-ft)

C1

45.255

−5.893

−9.683

C2

120.570

−9.593

−37.848

C3

129.763

−12.738

−11.916

C4

93.549

−7.899

−2.490

C17

118.438

−9.228

82.607

C18

325.291

−24.397

−71.141

C8

100.163

7.892

−10.268

C19

124.287

−9.057

86.289

C20

105.086

17.347

−64.576

C21

116.463

−8.745

85.907

C22

113.620

9.154

92.722

 

 

 

 

 

 

 

 

Table 4.4 : Analysis result of building beams for without interior columns

Beam

+M

(k-ft)

-M

(k-ft)

B1

4.313

8.627

B2

7.403

14.806

B3

4.613

23.805

B25

166.747

29.298

B6

11.006

23.010

B26

135.938

28.783

B27

139.538

30.370

B13

7.020

14.041

B14

5.266

10.533

B15

9.302

18.635

B28

30.156

60.312

B29

23.380

46.761

B21

13.104

26.208

B22

7.260

14.521

B23

3.632

7.205

B24

4.211

8.422

By comparing the above tables it is found that the axial forces of the columns and bending moment of the beams significantly increase.

Analysis by introducing bracing system at 45° angle and 7 ft height from the ground level

Bracing at 45° angle

Figure  : Bracing at 45° angle

Table 4.5 : Analysis result for frame at ground floor between Columns C19 & C20 at 45° Bracing on 7 ft height from the ground level.

Columns

Axial force, P

(kip)

M2

(kip-ft)

M3

(kip-ft)

C19

140.344

-112.559

13.897

C20

126.821

90.207

-12.499

Beam

+M

-M

Vu

B26

149.067

6.088

26.375

Bracing

+M

-M

L

131.082

262.164

R

100.839

201.679

 Analysis by introducing bracing system at the point of terminated column and 6ft height from the ground level

Bracing at point of termination of the columnsFigure  : Bracing at point of termination of the columns

Table 4.6 : Analysis result for frame at ground floor between Columns C19 & C20 Bracing  system at the point of  terminated   column on 6 ft height from the ground level.

Columns

Axial force, P

(kip)

M2

(kip-ft)

M3

(kip-ft)

C19

125.959

10.077

140.797

C20

123.383

-10.717

-127.62

Beam

+M

-M

Vu

B26

73.197

8.855

5.639

Bracing

+M

-M

L

10.175

20.349

R

7.607

15.214

 Solution:

From investigation of the above  result it can be said that the internal forces of the building without interior columns is significantly increase. After  bracing a huge amount of negative moment is produced the contact  point of the bracing and the beam. As the bracing angle ( with the vertical ) is increase the beam positive moment also increase, but the negative moment has an unchanged effected. But in this case there is an advantage of reduced internal force of the bracing. It advantageous for positive moment for introducing bracing as low bracing angle as possible but as this way the negative moment can not be reduced. But if the bracing is introduced at the point where the interior columns are terminated as in figure 4.10, the reduced negative moment and slightly increased positive moment compared to the reduced bracing angle. At that time the hugely increased internal forces of the option II building is reduced substantially. We used terminated column bracing.

 Analysis of option II building (With providing bracing system):

 Building Without interior columns, but provided bracing

Figure  : Building Without interior columns, but provided bracing

Table 4.7 : Analysis result of columns after providing bracing at the point of termination of the column for option II building :

Column

Axial Force,

P (kip)

M2

(k-ft)

M3

(k-ft)

C1

42.629

3.197

6.511

C2

117.423

−9.394

−31.620

C3

131.221

9.886

−6.678

C4

95.302

−8.040

−1.047

C17

126.557

10.125

129.821

C18

301.559

−29.736

116.536

C8

103.107

7.733

−15.041

C19

125.959

16.077

140.536

C20

123.383

−10.717

−127.620

C21

115.408

9.990

179.680

C22

118.007

10.234

−189.597

 

 

 

 

 

 

 

 

Table 4.8 : Analysis result of beams after providing bracing at the point of termination of the column for option II building :

Beam

+M

(k-ft)

-M

(k-ft)

Vu

(kip)

B1

3.642

7.284

3.675

B2

4.785

9.570

4.835

B3

22.454

4.749

1.342

B25

97.467

14.803

5.804

B6

14.447

28.894

19.808

B26

75.896

9.106

5.790

B27

72.632

8.439

7.509

B13

5.358

10.716

4.904

B14

4.257

8.513

3.839

B15

8.042

16.084

9.870

B28

26.048

52.096

19.870

B29

17.468

34.936

14.007

B21

11.402

22.804

4.886

B22

5.359

10.718

4.947

B23

9.622

19.244

2.967

B24

3.048

6.096

1.769

Table 4.9 : Analysis of bracings:

Bracing

+M

(k-ft)

−M

(k-ft)

BR1

10.249

20.498

BR2

9.433

18.866

BR3

10.175

20.349

BR4

7.815

15.630

BR5

10.304

20.608

BR6

8.102

16.204

Design Work:

For option I building:

Table 4.10 : Ground floor columns reinforcement

Column

Size ( in x in )

Reinforcement

C1

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C2

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C3

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C4

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C5

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C6

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C7

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C8

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C9

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C10

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C11

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C12

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C13

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C14

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C15

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C16

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

 Typical column size should be remain same.

Table 4.11 : Ground floor beam reinforcement

Beams

Size

( in x in )

Main Reinforcement

Shear Reinforcement

Main bar

Extra bar

B1

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B2

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B3

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B4

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B5

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B6

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B7

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B8

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B9

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B10

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B11

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B12

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

For option II building:

Table 4.12 : Ground floor columns reinforcement

Column

Size ( in x in )

Reinforcement

C1

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C2

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C3

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C4

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C17

10 x 18

Use 6 #5 with #3 Tie bar @ 10″ c/c

C18

10 x 18

Use 8 #6 with #3 Tie bar @ 10″ c/c

C8

10 x 15

Use 6 #5 with #3 Tie bar @ 10″ c/c

C19

10 x 18

Use 6 #5 with #3 Tie bar @ 10″ c/c

C20

10 x 18

Use 6 #5 with #3 Tie bar @ 10″ c/c

C21

10 x 18

Use 6 #5 with #3 Tie bar @ 10″ c/c

C22

10 x 18

Use 6 #5 with #3 Tie bar @ 10″ c/c

Table 4.13 : Ground floor beam reinforcement

Beams

Size

( in x in )

Main Reinforcement

Shear Reinforcement

Main bar

Extra bar

B1

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B2

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B3

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B25

10 x 20

For Support

For Middle

2#5 Ext.

bottom

#3 @ 8.5″c/c

4 #5 St.

4 #5 St.

B6

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B26

10 x 20

For Support

For Middle

1#6 Ext.

bottom

#3 @ 8.5″c/c

4 #5 St.

4 #5 St.

B27

10 x 20

For Support

For Middle

1#6 Ext.

bottom

#3 @ 8.5″c/c

4 #5 St.

4 #5 St.

B13

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B14

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B15

10 x 12

For Support

For Middle

#3 @ 4.5″c/c

4 #5 St.

4 #5 St.

B28

10 x 20

For Support

For Middle

1#5 Ext.

top

#3 @ 8.5″c/c

4 #5 St.

4 #5 St.

B29

10 x 20

For Support

For Middle

#3 @ 8.5″c/c

4 #5 St.

 

Table 4.14 : Bracing steel

Bracing

Steel Section (Use A36 Steel)

BR1

W8 x 15

BR2

W8 x 15

BR3

W8 x 15

BR4

W8 x 15

BR5

W8 x 15

BR6

W8 x 15

Detailing of the elements of the building:

Option I Building:

 Columns section for Option I building:

All columns

Figure  : Ground floor and typical floor all column details

 Beams section for Option I building:

Beam  All beams

Figure  : Ground floor and typical floor all beam details

Option II Building:

Columns section for Option II building:

Columns section for Option II buildingBeam B26 B27

3rd floor all beam details

 Bracing steel section:Bracing steel section

Here,

                 A= 4.44 sq. in                                t= 0.315 in

                 d = 8.11 in                                      tw = 0.245 in

b= 4.015 in                                                                                      

Figure 4.18 : Details of bracing steel

COMPARATIVE STUDY

 General:

The buildings are analyzed for determine the  best condition which  can  be  constructed

economically. The behavior of each condition is observed carefully. Then suitable condition is selected and suitable dimensions as well as steel area are also determined. The chapter gives a comparative amount of the materials, dimensions etc required for both the option I and option II building. It is obvious that the amount of material required for option II building will be higher than the option I building. But the option II building got column free parking space. Though the saving of space due to reduction of columns in the ground floor is not large, even this columns free space would be able to provide smooth and efficient parking, easy access and exit as well better maneuverability.

Comparison between the buildings:

The comparison is made in terms of element dimensions, volume of concrete and steel requirement, their cost and economic view.

Table 5.1: Dimensions of the different elements of the building

Element

Option I building

Option II buildig

Column no. There are 16 columns at each floor. So the total no of columns of four storied building is 16 x 4 = 64 There are 11 columns at the ground floor and others floor have 16 columns. So the total no of columns of the building is 11 + 16 x 3 = 59
Column size All columns are 10″ x 15″ Ground floor 6 column size are 10″ x 18″ and ground floor others 5 column and typical floor columns size 10″ x 15″
Column height All column height 10′-0″ All column height 10′-0″
Beams All beams size is considered as 10″ x 12″ Ground floor 5 beams size are 10″ x 20″ and others beam size are 10″ x 12″
Bracing No bracing required 6 Nos. of  W 8 x 15 steel section bracing provided.

Table 5.2: Comparative concrete volume of both the buildings

Elements

Option I building

Option II building

Column:

(10 x 15 x 10 x 16)/144 = 166.67 cft

Beam:

Ground floor total beam lenth = 235′

(10 x 12 x 235)/144 = 195.83 cft

Total ground floor  beam & column concrete volume = 362.5 cftColumn:

C1,C2,C3,C4,C8 = (10 x 15 x 10 x 5)

/144 = 52.08 cft

C17,C18,C19,C20,C21,C22 =

(10 x 18 x 10 x 6) = 75 cft

Total column volume = 127.08 cft

Beam:

B25,B26,B27,B28,B29 =

(10 x 20 x 78.58)/144 = 109.14 cft

Oters beam lenth = (235-78.58)=156.42′

( 10 x 12 x 156.42)/144 = 130.35 cft

Total volume of beam = 239.49 cft  Total GF beam & column concrete volume = 366.57 cftTypical floorTotal column volume = 166.67 cft

Total beam volume = 195.83 cft

Total typical floor beam & column concrete volume = 362.5 cftTotal column volume = 166.67 cft

Total beam volume = 195.83 cft

Total typical floor beam & column concrete volume = 362.5 cftFull buildingTotal beam & column concrete volume of the building = 1450 cftTotal beam & column concrete volume of the building = 1454.07 cft

 Table 5.3: Comparative steel quantity

Elements

Option I building

Option II building

Ground floor Column:

All column= 6#5 bars per column

Total reinforcement = ( 10 x 6 x 16)

= 960′-0″ x 0.481 = 461.75 kg

Shear reinforcement = (3.5 x 13 x 16)

= 728-0″ x 0.188 = 136.86 kg

Total column reinforcement =598.61 kg

Beam:

Total beam lenth = 235′

All beam have 4#5 main bars and no ext. bar use

Beam reinforcement= (235 x 4)

= 940 x 0.481 = 452.14 kg

Shear reinforcement = ( 601 x 3.00)

= 1803’−0″ x 0.188 = 338.96 kg

Total Beam reinforcement = 751.1 kg

Total ground floor beam & column reinforcement = 1389.71 kgColumn:

C1,C2,C3,C4,C8 = 6#5 bars per column

Reinforcement = (10 x 6 x 5) = 300′-0″

= 300 x 0.481 = 144.3 kg

C17,C19,C20,C21,C22 = 6#5 bars per column, reinforcement = (10 x 6 x 5)

= 300′-” x 0.481 = 144.3 kg

C18 = 8#6 bars, reinforcement=  (10×8)

= 80’−0″ x 0.752 = 60.16 kg

Shear reinforcement = (3.5 x 13 x 5) + (4.00 x 13 x 6) = 539.5′ x 0.188 = 101.43 kg

Total column reinforcement = 450.19 kg

Beam:

B1,B2,B3 = (29.67 x 4  x 0.481)

= 57.1 kg

B6 = (8.33 x 4 x 0.481) = 16 kg

Elements

Option I building

Option II building

Ground floor B13,B14,B15 = (30.58 x 4 x 0.481)

= 58.83 kg

B21= (15.08 x 4 x 0.481) = 29 kg

B22,B23,B24 = (30.58 x 4 x 0.481)

= 58.83 kg

B25 = (21.33 x 4 x 0.481) + (16 x 2 x 0.481) = 56.43 kg

B26 = (29.67 x 4 x 0.481) + (22.5 x 1 x 0.752) = 74 kg

B27 = (30.58 x 4 x 0.481) + (23 x 1 x 0.752) = 76.13 kg

B28 = (15.67 x 4 x 0.481) + (4.5 x 2 x 0.481) = 34.48 kg

B29 = (30.58 x 4 x 0.481) = 58.84 kg

Shear reinforcement = (204 x 3.00 x 0.188) + (221 x 4.33 x 0.188) = 294.96 kg

Total steel for beam = 785.6 kg

Total GF beam & column reinforcement = 1235.79 kgBracing steelNo bracing useUse W 8 x 15 section

Total Bracing length= (10.31 x 3) + (8.873 x 2) + 12.10 = 60.78′

Weight = 60.78 x 6.8 = 413.30 kgTypical floorTotal column reinforcement =598.61 kg

Total Beam reinforcement = 751.1 kg

Total beam & column reinforcement = 1389.71 kgTotal column reinforcement =598.61 kg

Total Beam reinforcement = 751.1 kg

Total r beam & column reinforcement = 1389.71 kgTotal buildingTotal building beam & column reinforcement  quantity = 5558.84 kgTotal building beam & column reinforcement  quantity = 5404.92 kg

Total bracing steel = 413.30 kg

Costing of the both types of building:

The cost analysis is completed according to “ Schedule of rate for civil works”, 2008 12th edition, PWD and as per considerations.

Cost of option I building (For beam & column)

Total volume of concrete = 1450 cft

Total cost for concrete = ( 1450 x 267 ) = 3,87,150 Tk.

Total quantity of steel = 5558.84 kg

Total cost for steel = ( 5558.84 x 63 ) = 3,50,207 Tk.

Total cost for option I building = 387150 + 350207 = 7,37,357 Tk.

 Cost of option II building (For beam & column):

Total volume of concrete =1454.07 cft

Total cost for concrete =( 1454.07 x 267 ) = 3,88,237 Tk.

Total quantity of steel = 5404.92 kg

Total cost for steel = ( 5404.92 x 63 ) = 3,40,510 Tk.

Total bracing quantity of steel = 413.30 kg

Total bracing cost for steel = ( 413.30 x 110 ) = 45,463 Tk.

Total cost for option I building = 388237 + 340510 + 45463 = 7,74,210 Tk.

It is found that the building with 11 columns at ground floor provide more column free space but require additional material and construction cost. From our investigation it is found that option II building requires 0.3% more concrete and 4.66% more steel. The total cost increased by an amount of Tk. 36,853.

CONCLUTION AND RECOMMENDATION

General:

In this study four storied building with varying number of columns at ground floor were analyzed using ETABS finite element package. The study has been made primarily with view to explore or to investigate the possibility of obtaining an uninterrupted column free space so as to make the efficient use of land demarcated for parking. From the analysis the following conclusion can be drawn.

Conclusion:

From the analysis result it can be said that the internal forces of the building without interior column is significantly increase . After introducing bracing a huge amount of negative moment is produced the contact  point of the bracing and the beam. As the bracing angle ( with the vertical ) is increase the beam positive moment also increase, but the negative moment has an unchanged effected. But in this case there is an advantage of reduced internal force of the bracing. It advantageous for positive moment for introducing bracing as low bracing angle as possible but as this way the negative moment can not be reduced. But if the bracing is introduced at the point where the interior columns are terminated as in figure 4.10, the reduced negative moment and slightly increased positive moment compared to the reduced bracing angle. At that time the hugely increased internal forces of the option II building is reduced substantially.

On the other investigation it is found that the building with 11 columns at ground floor provide more column free space but require additional material and construction cost. From our investigation it is found that option II building requires 0.3% more concrete and 4.66% more steel. The total cost increased by an amount of Tk. 36,853.

Recommendation:

For further study in this field, the following recommendations are put forward:

  • Instead of steel section as bracing, the R.C section can be used.
  • Steel truss or concrete truss  can be used to transfer the load above ground floor to the foundations.

REFERENCES:

  1. ACI Code, 2005, USA.
  2. BNBC, (1993) : Bangladesh National Building Code, 1st Edition, City Art Press, Dhaka, Bangladesh.
  3. ETABS V 8.2.7
  4. PWD, (2008) : Schedule of Rate for Civil Works, 12th Edition, Public Works Department, Govt. of People Republic of Bangladesh.
  5. Winter and Nilson, (2003) : “Design of Concrete Structure”, 13th Edition, McGraw-Hill International editions, New Delhi, India.

Four Storied Building

Categories
Architecture

Internship Report on Land and Flat Pricing

EXECUTIVE SUMMARY

In spite of noticeable fall in prices of major construction materials, the prices of apartments in the capital city did not come down to a reasonable level over the past several months. Even, many developers have increased their flat prices in recent period, citing high prices of land in the capital.

According to market sources, the prices of Mild Steel (MS) rod decreased more than Tk 10,000 per tonne, and cement by Tk 40 per 50-kg bag. Prices of other construction materials also decreased. Still, there is no standard flat now being sold in the range of Tk 4.0 million and Tk 5.0 million. The prices of flats have decreased sharply across the world, but surprisingly they are rising in Bangladesh. However, the realtors say high land price is the main reason behind high prices of flats in the city. They say the landowners demand around 70 per cent share of total flats and for this reason, the prices are not coming down.

Realtors develop lands through partnership deals, where landowners, depending on the locations, get 30 to 60 per cent of the total flats. Currently, flat prices in the city’s Gulshan and Banani areas range between Tk 10,000 and Tk 12,000 per square feet, at DhanmondhiTk 7,000 and Tk 8,000, at old parts of Dhaka Tk 4,000 and Tk 5,000, at Uttara (section 3 and 4) Tk 5,000 and Tk 6,000, and at other sectors of UttaraTk 4,000 and 4,500.

Realtors allege that the prices of rod and cement were still high in the local markets, although their prices have fallen sharply in the international markets. Prices of MS rod, a major construction material, fell to around Tk 40,000 per tonne a few weeks back, but it increased again, they said. Some cement manufacturers reduced the prices of per 50-kg bag cement by Tk 40 in recent months following decline of the clinker prices in the international market. Clinker is the major raw material for producing cement, and its prices now range between US$45 and $46 per tonne.

Experts have predicted a price hike of the steel and rod in the local markets in the near future, as the consumption of the item is not rising, as it should be. The price of iron ore is also rising in the international market. The annual demand for the rod and steel in the country is between 2.0 million and 2.5 million tonnes. Their consumption has remained almost steady over the last three years. About 40 per cent to 45 per cent supply of raw materials for production of rod and steel are available locally and the rest is imported involving higher duties. The prices of rod and cement may go high in the markets again if the US dollar appreciates against the local currency. Besides, the importers of the raw materials recently are forced to pay additional amount of surcharge and bribe at the Chittagong Port. The prices of paints have fallen by over 5.0 per cent in recent months, as prices of their raw materials had fallen in the international market. Currently, per gallon distemper ranges between Tk 270 and Tk 280, and paints between Tk 630 and Tk 650.

Around 400 REHAB (Real Estate Housing Association of Bangladesh) members along with 200 non-REHAB members are developing land and constructing apartments in the major cities of the country, and the contribution of the sector to the GDP is around 8.0 per cent. The ongoing global economic downturn has hit the local estate sector as well. Very recently, the realtors have demanded a Tk 10 billion special soft loan fund to boost up sales of flats as the housing industry has been badly affected. REHAB president TanveerulHaqProbal said sales of apartments in the country have fallen by 30 per cent between January and March and the housing industry needed a ‘package’ to face the meltdown. He said flat sales have been plunging alarmingly over the last few months. The downturn would continue unless the government comes up with a rescue act and include the housing sector in its stimulus package. The REHAB president said the industry does not require any direct cash injection like the ones announced for the export-oriented manufacturing industry. But they have demanded creation of Tk 10 billion fund through which apartment buyers would be financed on easy loan term. The fund will inject a momentum in the housing industry and make flats affordable to buyers, he said.

According to the REHAB, the housing and construction industry, which make up some 10 per cent of the country’s Gross Domestic Product (GDP), was affected by last year’s record price hike of construction materials and the anti-graft drive against flat buyers. It said the global economic crisis has compounded the problem. Buyers are hesitant than ever before due to the uncertain economic climate. The country’s real estate companies sell 7000-10,000 flats a year. But in 2007 sales halved to about 4000 flats following a nationwide anti-corruption drive that targeted some top apartment buyers. Last year, a number of companies halted construction of new apartment buildings after mild steel rod prices doubled to Tk 80,000 per tonne.

The increased demand for ready flats and residential plots has should have propelled a higher growth of the real estate sector. But, there is a problem of availability of land in the city and its adjacent areas. The land is very much scarce. The price of land in Gulshan posh area is now between Tk 6.0 million and Tk 8.0 million per katha, against Tk 3.0 million and Tk 4.0 million even a couple of years ago. Similarly, the land price at the city’s Dhanmondi and Uttara area has registered an unusual hike recently due to higher demand for both land and ready flats. Now, the question is the availability of land, not its price. The cost of construction laborers has also gone unusually higher in the city. Even many firms are unable to hire masons and workers in the industry due to acute shortage of skilled manpower. There is a huge demand for skilled masons and construction workers in the Middle East. Many skilled workers have found jobs in the Middle East following their high demand.

In fact, very often, the real estate developers miss deadline of handing over flats to the buyers. While RAJUK exists as a regulatory authority to ensure that apartment complexes meet building standards, there is no regulatory body to ensure that real estate companies meet their commitments as specified in the agreement drawn up with the buyer.

1.1 Background

In third World Counties, Urbanization is an outcome of population growth and inadequate development. Migration of the people from rural areas towards the cities also increases when their means of livelihood gradually diminishes. Bangladesh is one of the least developed countries of the world, where the basic needs of the people are not addressed effectively. At the present, with the Constitution of our country being extensively and exhaustively discussed by people at all levels, the crucial issues like shelter for all, which is one the basic rights of all citizens, still remain on the back burners. To all intent and purposes, it is not possible for the Government alone to ensure shelter for its people. Therefore, the role of the private sector developers becomes crucial. In our country real estate business started in Dhaka in late seventies. The Eastern Housing of Islam Group is the pioneer in this business. During 1970s there were fewer than 5 companies in Bangladesh engaged in this business. In 1988 there were 42 such developers working in Dhaka and now in 2005 there are about 250 companies engaged in this business. From the early 1980s the business has started to flourish and in 1990s it has reached its peak. Towards the end of year 2000 there was slight downfall in real estate sector. In 2003 this sector started showing growth again. To strengthen the role of real estate sector some pioneer real estate companies together built up an association named REHAB in 1991. At present it has 1081 members. Over the last 15 years, the real estate development sector has been made significant contribution to our economy. Since1985 this sector has created homes for over 20,000 families in the Dhaka Mega City.

1.2.1 Pros: advantages of investment properties

In general, property is considered a fairly low-risk investment, and can be less volatile than shares (although, this is not always the case). Some of the advantages of investing in property include:

  • Tax benefits – a number of deductions can be claimed on your tax return, such as interest paid on the loan, repairs and maintenance, rates and taxes, insurance, agent’s fees, travel to and from the property to facilitate repairs, and buildings depreciation.
  • Negative gearing – tax deductions can also be claimed as a result of negative gearing, where the costs of keeping the investment property exceed the income gained from it.
  • Long-term investment – many people like the idea of an investment that can fund them in their retirement. Rental housing is one sector that rarely decreases in price, making it a good potential option for long-term investments.
  • Positive asset base – there are many benefits from having an investment property when deciding to take out another loan or invest in something else. Showing your potential lender that you have the ability to maintain a loan without defaulting will be highly regarded. The property can also be useful as security when taking out another home, car or personal loan.
  • Safety aspect – low-risk investments are always popular with untrained “mum and dad” investors. Property fits these criteria with returns in some country areas reaching 10% per year. Housing in metropolitan areas is constantly in demand with the high purchase price being offset by substantial rental income and a yearly return of between 4% and 8%.
  • High leverage possibilities – investment properties can be purchased at 80% LVR (loan to valuation ratio), or up to 90% LVR with mortgage insurance. The LVR is calculated by taking the amount of the loan and dividing it by the value of the property, as determined by the lender. This high leverage capacity results in a higher return for the investor at a lower risk due to having less personal finances ties up in the property (80% of the purchase price was provided by the mortgagee).

·         Significant Profits-There can be a major advantage to investing in real estate if you find property at a price low enough to result in a significant profit. For example, some investors buy real estate they intend to flip. Flipping can result in huge profits for investors. The property may be in foreclosure, in danger of foreclosure or needs little or no repair. You may purchase the property for much less than its value, repair or update it, and resell or flip it at a much higher selling price. Exercise extreme caution in this kind of venture.

·         Access to Credit-Contingent on a variety of factors, additional income generated from real estate investments may give you access to more credit. Generally, lending institutions lend more money to people who make more money. The additional income made from real estate investments may open broader credit lending doors.

·         Leave a Legacy-Real estate may be willed to family members after your death. You could leave a legacy for your children by investing in real estate. By choosing a property intelligently, investors can make this form of investment work for them. However, as with all investments there are some disadvantages to be aware of.

1.2.2 Cons: disadvantages of investment properties

Some potential problems to consider:

  • Liquidity – it’s true, you can sell the property if things go bad. However this can take many months unless you’re willing to accept a price less than the property is worth. Unlike the stock market, you will have to wait for any financial rewards.
  • Vacancies – there will be times when mortgage payments will need to be covered out of your own pocket due to your property being untenanted. This could just be a result of a gap between tenants or because of maintenance issues.
  • Bad tenants – it’s every investment property owner’s worst nightmare: problem tenants. They can significantly damage your property, refuse to pay rent and refuse to leave. Disputes can sometimes take months to resolve.
  • Rising interest rates – if your investment loan has a variable interest rate, there is always the risk of economic conditions causing interest rates to rise. If not properly budgeted for, rising interest rates could cause an investor financial stress where concerns of liquidity and quickly selling the property become a reality. When interested rates are on the up, liquidity in property markets starts to dry up.
  • Property oversupply – in recent years, inner-city builders have created a glut of high-rise apartment blocks, resulting in fierce competition and many units being increasingly difficult to rent out
  • Ongoing costs – in addition to the standard costs associated with a property, ongoing maintenance costs, especially with an older building, can be substantial.
  • Putting all your eggs in one basket – if you have all your money tied up in property, overexposure to one particular type of investment can be a dangerous thing. If the property market crashes you can stand to lose significantly.
  • Capital Gains Tax – imposed by the Federal Government on the appreciation of investments and payable on disposal.
  • Other costs – negative gearing may offer tax deductions each financial year, however ongoing payments to cover the shortfall need to be budgeted for every month.

1.3 Objectives of the Study

Generally every study is conducted to find one or mere findings, if the findings are predetermined they called the objectives of the study. The main purpose of my study is to evaluate the Land & Flat Pricing in Bangladesh. Thus the main objectives of the study are as follows.

  • To show overall Sceneries of Real Estate Market and Opportunities in Bangladesh and the market condition.
  • To analyze the Present  Real Estate Market Scenario
  • To define the Pros & Cons of Real Estate in Bangladesh
  • To determine the Pricing Strategy
  • To identify Problems faced by the customers as well as the marketers in the market of the same.
  • To Identify the Reason behind the Real Estate Boom
  • To analyze the Present  Real Estate of Bangladesh & South Asian Countries
  • To analyze the present flat sales decrease
  • To put forward some recommendation in the light of the problems identified.

1.4 Scope of the study

The duration of the study was Three months. This is an individual study, which is worked for this particular study under my internship program supervisor. Since this is a formal study, the scope of the study was not so detail. I just tried to give an overall scenario of the Real Estate Market and Opportunities as well as an actual market image in Bangladesh. The study covers overall Real Estate scenario of Bangladesh & South Asian countries and all the data are collected from the Internet & NewVison Landmark Ltd and from other paper which are mainly secondary sources.

1.5 Importance

Human being has always been in search of new and better homes. Thus cities, towns and villages grew, flourished and wither away. In the process, societies forever demand and produce all kinds of goods and services, through, never satisfied, we ask for things more different. Real estate visibly shapes the way people live, work and innovates and therefore most strongly defines culture and civilization. Today Real state is recognized the world over as the main engine that runs the economy, creating work not only for masons and managers, accountants and architects, but also for makers and sellers of building materials. It means work for maintenances, security cleaning and other services; work for makers and sellers of appliances, furniture and vehicles; work for bankers and bureaucrats, lenders and lawyers Purpose of this study is to overall Real Estate scenario of Bangladesh & South Asian countries.

1.6 Methodology of the Study

Methodology is the process or purpose of collecting of data and information which are required in connecting with finding tools for best possible situation of problems.

1.6.1 Data Collection Methods

For data collecting I have used both primary and secondary data. At the starting point I have started by examining primary data to see whether the problem can be fully or purely solved without collecting secondary data. When the needed data did not exit, then I had gone to collect the secondary data. So, data gathered for specific purpose or a specific reason.

1.7 Limitations of the Study

It couldn’t be claimed that this study was 100% based on impractical data. Undoubtedly it has got some limitation regarding the representation of the factors which are collected from customers and people of the company. At the data collection for the study, I have been facing following problems.

1.7.1 Time Limitation

 Time limitation is one of the major problems for most researchers’ to diagnose the problem. Like the other study, it has time limitation to identify the actual problem and provide some recommendations.

1.7.2 Sample Size

 Though the sample size was fixed for the study, with this sample size it is very difficult to get good result.

1.8 Output Trend

During the peak years of the early 1990s, over 3,000 apartment units were built by developers every year. Today around 10,000 units are built, but recent time this trend has declined due to delayed delivery of apartments by an average of six months, economic downslide, global recession, and the poor law and order situation.

 1.9 Linkage contribution

 The real estate sector has also made substantial contributions to the growth of a host of backward and forward linkage sectors which include Rod, Cement, Bricks, paints, ceramics, aluminum, furniture, consultancy and many others. In this context, he provided examples of catalytic influence of the real estate and housing sector in development of linkage industries whereby the sector is immensely contributing to employment and the GDP. Those include Bangladeshi state-of-the-art ceramic industries, Thai and Kai aluminum, More than a dozen paint industries, a large number of furniture making and interior design companies, an exponentially growing cement sector, which is helping the country to attain self-sufficiency in this important input

2.1 House Prices and Housing Production

The provision of standard housing and residential infrastructure has not kept up with population increases, because of constraints in the main supply factors, such as land and finance, and severe affordability problems. Indeed, land and construction prices for new formal sector housing are high relative to incomes, particularly in urban areas. The GOB Housing Indicators Report calculated that urban households spend on average 10 to 17.5 percent on housing related expenditures (GOB, 1995).

2.1.1.1 Land.

There is an active land market that prices land according to location characteristics, distance from main centers and physical quality of the site. Because of the exponential increase in population in Dhaka, land prices have escalated during the last few decades. Trends in land prices will be included in the land study, which is simultaneously conducted by UNCHS. Prices for land and construction were only available for Dhaka since most of the formal construction activities take place in the metropolitan area. For the purpose of this study we compiled current prices for developed land within the metropolitan area of Dhaka (estimates by REHAB):

Table I: Land price per khata (720sq.ft)

• High income areas such as Gulshen, Benani, Baridharah Tk.14 to 20 million
• Middle income areas such as Dalmundi Tk.10 to 20 million
• Other Dhaka neighborhoods Tk.5 to 7 million
• Mirpur and other suburban areas Tk.4 to 6 million
• Undeveloped land at 20 to 30km from CBD Tk.1 million per acre ( 60 khata)

Source: REHAB

With a minimum plot area of 2100 sq.ft in urban areas, a building plot in the lowest income area would still exceed Tk.3 million. In suburban areas no minimum plot size is stipulated and land can be subdivided in small plots for single-story housing developments. Construction costs. REHAB provided the following construction costs per sq.ft. at different levels of finishes:

Table II: Construction costs per sq.ft

  • High cost construction/multi
  • family Tk.1000 to 1200/sq.ft
  • Middle cost construction/ multi
  • family Tk.850 to 1000/sq.ft
  • Simple construction/ multi
  • family Tk.650 to 850/sq.ft
  • Single story low
  • cost house Tk.450 to 600/sq.ft

These figures show that the construction costs for a small 300 sq.ft house, excluding land cost, would be in the order of Tk.150, 000. Such a house would be quite affordable at a median income level of Tk.5000. The inclusion of the costs of developed land, would multiply the cost by ten, rendering such housing solutions inaccessible even for households well above the median income. These figures show that high-density multi-family developments are the only feasible alternative in Dhaka.

2.2.1 Area:

It is a crucial variable for pricing a property. In our country its significance is more important than any other country. Depending on the area price fluctuate incredibly.

Source: REHAB

Table III: Comparison of deferential price based on area

Area

Flat Price (taka per square foot)

Dhanmondi

7000-11000

Uttara

4000-5000

Gulshan

5000-12000

Banani

5000-9000

Mohammadpur

4000-7000

Baddah

4000-5000

Lalmatia

5000-7000

Motijheel

7000-11000

Shahabag

4000-7000

Mohakhali

4000-5000

2.2.2 Plot location:

This variable affects the pricing decision of New Vision developers to a great extent. Within a particular area based on the road number or sector price of flat building varies accordingly.

Dhanmondi

Table IV: Comparison of deferential price based on plot location

Road No.Price (taka per square foot)3/A (old)80003/A (new)900010/A     7000

2.2.3 Size:

As the norms depending on the size, price of apartments varies by a direct proportion. In some cases this proportion does not remain constant.

2.2.4 Facing:

Facing of the apartments is also an important variable in the pricing pattern of those apartments.  Like south facing or north facing flat of a particular apartment building differs hugely in price:

Table V: Comparison of deferential price based on plot facing

Face Price (taka per square foot)
 South face 5000
 North face 4500

2.2.5 View:

 Depending on the view of flats price can also vary.

  Table VI: Comparison of deferential price based on plot view
              View Price (taka per square foot)
South Facing Lake View     6000
North Facing Lake View      5000
East Facing Lake View 4500
East Facing       4000
West Facing Lake View    4500
West Facing     4000

2.2.6 Flat Feature:

Flat feature of the apartments is also an important variable in the pricing pattern of apartments. It consists of the interior design and fittings. The mentioned factors affect the pricing of the apartments.

2.2.7 Floor:

It is also a prominent factor that heavily induces the pricing of flat. The price decreases as the number of story increases.

    Table VII: Comparison of deferential price based on floor
                    Floor Price (taka per square foot)
1st                        4000
2nd                          4500
3rd

5000

4th

5500

5th

4500

6th

4200

7th

4000

 2.3 Construction Quality:

This includes materials used for construction, roof design, column design etc.  As the buyers are becoming sophisticated day by day this variable becomes important to the developers at the time of pricing.

2.4 Land Owner’s Share:

Nowadays most of the apartments are developed by various real estate firms in the form of joint venture.

In this venture land owners and developers share total number of flats in a particular apartment. In the most of the cases the ratio of sharing flats is 40:60. In case of lucrative areas this ratio is often 50:50. Besides these landowners also demands a certain amount of cash benefit for staying away from their own home at the time of construction.

2.5 Existence of Amusement Place:

Existence and non existence of amusement place also affects the pricing of flat building.

2.5.1 Pricing of Car Parking:

Car parking is fully independent with the overall price of any apartment. It is priced as per the current market price. Nowadays it ranges from 2 to 3 lakh.  Any apartment holder wishing to purchase more than one car parking space has to pay a higher amount than the normal range. It varies according to the variation of area.

2.5.2 Maintenance & Security:

 After the hand over of an apartment, its maintenance is no more a responsibility of a developer. The same is applicable for the security purpose. These two responsibilities are handed over to the buyers association of a particular apartment with a hand over of flats to them.

3.0 Pricing Strategy

Generally price is the amount of money charged for a product or service, or sum of the value that consumers exchange for the benefits of having or using the product or service. Again pricing policy is the course of action or guiding philosophy that helps a business firm to pricing decisions smoothly and perfectly. It also guides the firm to achieve its goals. It is an important element of the entire marketing strategy of a firm. A firm can easily manipulate the demand of the target market by handling its price carefully. At the present time, the market is highly segmented, primarily based on location, price of the land and size of the apartments.

3.1 Maximum Current Profit:

 It estimates its demand and costs associated with alternative prices and choose the price that produces the maximum current profit, cash flow and rate of return on investment.

3.2 Maximum sales Growth:

Real estate Company’s sets a reasonable price for its products (lands and apartments) considering the competitors prices. The company wants to maximize unit sales and thus profit.

3.3 Pricing methods

 There are a number of price setting approaches, these are- markup pricing, target return pricing; buyer based pricing, going rate pricing, sealed bid pricing approach. At the present time, most of the company’s adopts going rate pricing method for its products. In going rate pricing the firm bases its price largely on the competitor’s prices with less attention paid to its own costs and demands. The study shows the pricing of the real estate depends on certain factors such as location, square feet, quality of construction, construction cost, and amenities, markup policy, competitors’ price and demand for the product.

3.4 Promotion Strategy

Promotion mix is composed of four tools of communications- advertising, personal selling, sales promotion, and publicity. In the face of today’s competitive business environment, most of the companies develops and retains high achieves and a motivated workforce.

3.4.1 Advertising

Here most of the importance is given to the advertisement and on creating customer faith and also to the after sales services. Most of the real estate companies spends the biggest portion of its total promotion budget for advertising. When we look at the company, we can easily realize that the company could successfully anticipate the effectiveness of advertising. Here some of vehicles used as media for the advertisement of the real estate companies products.

3.4.1.1 Newspaper

Advertisements are published frequently on the most of the national dailies citing feasibility, opportunities, advances etc along with attractive photograph of the projects.

3.4.1.2 Neon Sign Billboard

Lots of billboard and neon sign are established at the different places of the city. Generally these places are selected according to the commercial importance.

4.4.1.3 Television

Advertisement is also frequently shown on the national and private channeling order to attract the potential customers and also to get the people to know about the projects.

3.4.2 Personal Selling

Company maintains good relationship with the customers. Generally, the company follows two mode of personal selling for maintaining long term relationship with their target customers.

3.4.2.1 Field force employees

A number of employees are engaged in door to door marketing. They go to the customer’s houses, explain them about projects and request them to come to the office about the real condition of the projects. Generally this is the task of influencing the people to make a purchase decision.

3.4.2.2 In House Marketing Team

In house marketing team is the part of the marketing department of the company. Usually they work with the direct customers who come to the office directly for land and office purpose. Different personnel of the in house marketing team co-ordinates with the customers. The personnel explain explain different aspects of the projects to the customers and also give them answer of questions. However their main motto is to sell their products by giving service.

3.4.3 Sales Promotion

Sales promotion is another essential ingredient in marketing campaign. Advertisement offers a reason to buy, whereas sales promotion offers an incentive to buy. The companies offers the following – discounts, gifts, low cost services price off, cost free services etc. Company maintains good relationship with the customers. Generally, the company follows two mode of personal selling for maintaining long term relationship with their target customers.

 3.4.3.1 Sales policy of the Companies:

Most of the company in this industry develops sales policy based on in house in house sales personnel. The outside sales forces are generally used to create customers. In case of purchasing a plot or a flat the first task a customer has to do is booking the plot or flat with a specified amount of money. After the booking rest of the are done by sales and credit realization personnel.

3.4.3.2 Sales at a time with cash payment

In this case at first the customer pays the booking money and after one month of booking pays the rest of amount.

3.4.3.3 Sales on installment

 This is comparatively relaxed policy. There are several installment schemes. In this case the purchaser can pays a specified amount either in 12 or 24 or36 or 60 or 72 installments.

4.1 Current Scenario of the Real Estate Market in India

The Indian economy has witnessed robust growth in the last few years and is expected to be one of the fastest growing economies in the coming years. Demand for commercial property is being driven by India’s economic growth. Real estate in India contributes about 5 per cent to India’s gross domestic product (GDP). The total revenue generated in 2010-11 stood at US$ 66.8 billion.

Demand is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014—Tier 1 metropolitan cities are projected to account for about 40 per cent of this. Growing requirements of space from sectors such as education, healthcare and tourism provide opportunities in the real estate sector. FDI of more than US$ 9 billion was infused in real estate in the last decade.

In 2010, over 11 per cent of total FDI in India was in the real estate sector. There have been 110 deals in this sector during the period 2001 to the first half of 2011.

Urban population has been increasing and is expected to cross 590 million by 2030. Urbanisation and growing household income are some of the major factors that influence demand for residential real estate and growth in the retail sector.

Commercial real estate sector is in boom in India.  In the last fifteen years, post liberalization of the economy, Indian real estate business has taken an upturn and is expected to grow from the current USD 14 billion to a USD 102 billion in the next 10 years. This growth can be attributed to favorable demographics, increasing purchasing power, existence of customer friendly banks & housing finance companies, professionalism in real estate and favorable reforms initiated by the government to attract global investors.

Table VIII: Flat price in India(per sq ft)

location Price(Indian rupee) taka(1 INR = 1.6154 BDT)

Mumbai

30500

49260

Delhi

16890

27284

Chennai

10533

17015

Bangalore

11840

19126

Hyderabad

5500

8885

Kolkata

6750

10904

Pune

6750

10904

 

4.1.1 Driving Forces

Stated below are the reasons that have led to the real estate boom in the country.

• Booming economy; accelerated GDP to 8% p.a.

• India’s emergence as an attractive offshoring destination and availability of pool of highly skilled technicians and engineers ; Development of large captive units of major players include GE, Prudential, HSBC, Bank of America, Standard Chartered and American Express

•Rise in disposable income and growing middle class, increasing the demand for quality residential real estate and real estate as an investment option.

• Entry of professional players equipped with expertise in real estate development;

•Relaxation of legal rulings and processes by the governing bodies encouraging investments in real estate

•Improvement in infrastructure facilities

4.1.2 Investments

Real estate emerged as the popular sector for private equity funds who invested US$1,700 million in this sector during 2011. Private equity in real estate projects will fetch considerable returns by next year-end or early 2013, as per Vikram Hosangady, Partner, KPMG.

Some of the recent investments in this sector are mentioned below:

  • Sahara India has joined hands with the US-based Turner Construction Company. The JV, Sahara Turner Construction, will build integrated townships called Sahara City Homes and other Sahara India projects in India worth US$ 25 billion over the next 20 years
  • DLF acquired the additional 26 per cent stake in its joint venture company—DLF Hotels & Hospitality Ltd (DHHL)—from Aro Participation Ltd and Splendid Property Company Ltd, affiliates of Hilton International. At present, the company holds 74 per cent equity in DHHL
  • Pride Group of Hotels, which owns a chain of upscale mid-market and business hotels is planning to set up a series of new properties and this will involve an investment of Rs 1,000 crore (US$ 203.18 million) over the next few years. The company plans to have a mix of owned and managed properties having 3,500 rooms by 2015-16

4.1.3 Government Initiatives

  • The foreign direct investment (FDI) up to 100 per cent is allowed with Government’s permission for developing townships and settlements
  • New home loan borrowers of up to Rs 1.5 million (US$ 30,477) will get Rs 14,865 (US$ 302) as interest subsidy from the Government, on the condition that the cost of the house should not exceed Rs 2.5 million (US$ 50,798)
  • Allowing 100 per cent FDI under the automatic route in development of Special Economic Zones (SEZ), subject to the provisions of Special Economic Zones Act 2005 and the SEZ Policy of the Department of Commerce.

In the Union Budget 2011-12, Mr Pranab Mukherjee, Union Finance Minister presented various initiatives for the real estate sector, especially focussing on affordable housing. Some of these initiatives are listed below:

  • Increasing the limit on housing loans eligible for a 1 per cent subsidy in interest rates
  • Widening the scope for housing under “priority-sector lending” for banks, making interest rates cheaper on them
  • Allocating substantial amount to the Urban Development Ministry for spending on extension of Metro networks in Delhi, Bangalore and Chennai
  • Earmarking US$ 20.03 million for the urban infrastructure development project. The Urban Development Ministry received US$ 1.5 billion, an increase of US$ 68.53 million from the last fiscal 2010-11

4.1.4 Road Ahead

Real estate plays an important role in the Indian economy. This sector happens to be the second largest employer after agriculture and is expected to grow at the rate of 30 per cent over the next decade. The size of the Indian real estate market is expected to touch US$ 180 billion by 2020.

The housing sector alone contributes to 5-6 per cent of the India’s GDP. Retail, hospitality and commercial real estate are also growing considerably, providing the much-awaited infrastructure towards India’s growing needs.

According to a study by ICRA, the construction industry in India ranks 3rd among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. A unit rise in construction spending generates five times the income, having a multiplier effect across the board. With backward and forward linkages to over 250 ancillary industries, the positive effects of real estate growth spread far and wide. Therefore, real estate acts as a catalyst for adding momentum to growth of the Indian economy.

4.2 An overview of housing in Pakistan

Pakistan witnessed a real estate boom after the 9/11 and war on terror. Property prices skyrocketed across the country and to buy a home resembled something beyond the bounds of possibility for an ordinary Pakistani. The expatriate Pakistanis invested their money in the real estate and the continuous flow of dollars swelled the volume of market. According to modest estimates during past four to five years the money invested into the real estate market was nearly equal to Rs.250 billion rupees and this resulted into an upward and sharp increase in the prices which produced a hyper effect on the market. But now market analysts are of the view that the real estate bubble had come to an end and market is going through a slump. What really happened is that a conventionally unorganized and unnoticed sector at once recorded such an amazing potential which was unsustainable and slowing of massive money influx can’t be termed as a crash.

At the same time the country’s housing situation is aggravating with each passing day. Our bourgeoning population, its stunning 2.4 annual growth rate and strong inward migration (rural-urban migration) trends are compounding the problem. The decrease in the average household size or the nuclear family notion is also gaining popularity in the urban centers. It is also resulting into more houses for small number of people. There are nearly 19 million houses in the country against the population of 149 million and the required number of housing units for the population is 25.83 millions. Thus we are falling short of nearly more than 6 millions. This is huge number if seen against the backdrop of the housing units being built annually.

At present the urban housing demand stands at 8 percent per annum. In addition to this rural- urban migration is also gaining momentum. Although Urban- rural population migration is a global phenomenon and mega cities are facing the challenges caused by the deluge of the rural migrants and Pakistan is no exception to this rule. Only Karachi is attracting more than 250,000 to 300,000 people annually.

This is adding to already tightly crowded population and scarce resources of the cities and in case of Karachi it deprives nearly1/3rd of population of the potable water.As cities are already over populated, so, these peoples are inhibiting in the squatter settlement or shanties called katchi abadis in the local jargon. According to the reports there are nearly “539 squatter settlements across Karachi” and nearly 49 percent of the city population lives in these squatter settlements.

We have to construct more than 500,000 housing units annually to meet the backlog in 20 years. We have not taken the factors of population growth and stock depletion into account, only what I have tried to show is current backlog.

 At present he number of housing units being constructed is only 300,000 which is really a fraction of the gigantic demand. The demand and supply gap is resulting into serious repercussions for the society as it had changed the more than half of Pakistan urban land into squatter settlements and is eating away the agricultural land of the country. What is the need of the hour is that to exploit the hidden potentials of the housing sector. It is a two prong strategy to fight against poverty and raise the standards of public living.

As in the first place this strategy provides public with house which is a basic necessity and in the second revive the industrial sector. As more than 40 industries are directly related to the construction industry. The growth of housing industry is a sure recipe for the economic growth. As it also entails the growth of construction and allied sectors which includes, “ceramics, cement, paints, electrical goods, floorings, carpets, tiles and marbles, stone crushing etc….”

Moreover it will boost the banking sector by utilizing the mortgage facility that banks provide. At present the mortgage finance was 18 billion rupees for 2005 and it has growth potential of Rs. 135 billion at 35 percent urban housing needs. In addition to this many foreign real estate investors has announced heavy investment in the residential sector including the Dubai’s construction giant Emaar which is going to construct housing projects worth US$2.4 billion in Islamabad and Karachi, Diamond Bar Island City Karachi will obviously help in restoring the confidence of local investors.

4.2.1 Property boom emerging again in Pakistan

The property markets of Karachi, Lahore & Islamabad is once again attracting a lot of money these days due to stable stock, gold and currency markets. Particularly in Karachi, a large number of new schemes of plots as well as flats near the Northern Bypass have been announced (and also extensively advertised), which are drawing a number of buyers.

A luxury flat of 180 square yards in a recently announced project, 10 kilometres from Sohrab Goth, is priced at no less than Rs4 million. This gives an idea of how expensive the houses are, even if located in the outskirts of the city. A residential plot of 80 square yards in a project near the Northern Bypass is available at Rs249,000, although it is as far as 35 kilometres from Sohrab Goth. In the same scheme, a residential plot of 120 square yards costs Rs379,000.

Builders say Pakistanis working in Arab countries and the US are the most attractive clients for them because they are able to make timely payments. It is for them that most of the builders announce and advertise their projects around Eid days.

Builders say usually they experience difficulties in obtaining agreed money from buyers residing locally, but those working abroad are their ideal buyers.

Similarly, in a much advertised scheme, which is located far away from the main city, a 200 square yard plot is being offered at a price of Rs695,000 and 400 square yard plot for Rs1,395,000. The commercial plots in such schemes are even more expensive. A 400 square yard plot is priced at Rs2,995,000. In another scheme, a 100 square yard commercial plot is being offered at Rs700,000 and 200 square yard plot for Rs1,800,000.

The projects being built in the main city are certainly more expensive. On average, flats in Clifton and Defense areas are priced at Rs5,000 per sq ft, in Bahadurabad at Rs6,000 per sq ft and in PECHS Rs6,000 per sq ft. In Gulistan-e-Jauhar, which is an area of lower middle and middle income groups, flats are available at Rs2, 500 per sq ft on average.

Table IX: Flat price in Pakistan

 

Sl. Location Price per sq ft(PKR) Price per sq ft(BDT)

1 PKR = 0.9074 BDT1Islamabad55004990.72Karachi62005625.883Lahore40003629.964Rawalpindi500045375 Bahadurabad6,0005444.46In Gulistan-e-Jauhar2,5002268.5

Besides, the financing facilities being offered by banks and other institutions are also a factor behind this activity in the construction industry, as now people can obtain loans from more sources. In recent years, the monetary authorities of the country have encouraged banks to lend money for housing, giving impetus to this industry.

4.3 Real Estate Business in Nepal

  Real estate refers to the immovable property such as land, land and house or any type of building or infrastructure used for either residential or business or any other purposes. Until recently, investment in real estate sector was increasing in Nepal due to lack of alternative investment opportunity in the country. The increase in the demand for land, especially in urban areas, is attributed to the inelastic supply of land and absence of viable investment opportunity. The speculative assumption of people that price of real estate will never decline and it is the safest sector to invest, has played an instrumental role in increasing in the real estate price.

Table X: Flat Price in Nepal

 

SL. Location Price per sq ft(nepali rupee) Price per sq ft(BDT)

1Nrs = 1.0002 BDT1Merocity ApartmentHattiban51155116.0232Estern ApartmentKaushaltar36083608.7223The sun cityGothatar39383938.7884City ScapeHattiban52005201.045Down TownKhumaltar40404040.8086Sunshine ApartmentSukedhara62036204.2417Park View HorizonDhapasi76507651.538Chacrapath HeightChacrapath49574957.999Imperial courtSanepa95809581.92

Since the past few years, remittances have become the most important source of financing economic activities in Nepal. Lack of employment opportunities accompanied by political instability and delayed peace process in the country pushed thousands of Nepalese workers abroad for employment. This resulted into massive inflows of remittances accounting for about 20 percent of GDP. With accelerating growth of remittances and lack of alternative investment opportunities, huge amount of money has gone into land and housing business that created a real estate boom.

The proliferation of financial institutions together with an excess liquidity situation in the past also fueled the real estate boom, especially in the urban areas.  According to the IMF (2010a)  “the land transactions in the  urban area almost doubled in 2009 alone compared to the previous year and the prices in the Kathmandu valley were reported to have quintupled in some areas in the recent years. However, in response to the corrective measures undertaken by the NRB, these trends have started reversing in the recent months.” The tendency of migrating from rural areas to urban has fueled the real estate business in Nepal. Basically people are purchasing real estate (land or land with house) for two general motives:  first, for self residence and second, for business purpose.

The first motive has boosted up the second one. There are different views pertaining to the extent the motive of self residence has shaped the business scenario in Nepal.

The banks and financial institutions are financing in real estate sector as one of the important sector for lending. In the loan portfolio of banks and financial institutions the real estate lending has a significant share. Similarly, in the composition of collateral types, house and land holds 61 percent of share (NRB, 2010).  According to the IMF (2010a) “Although banks’ direct exposure to real estate and housing loans is not particularly high at about  20 percent of the total loan portfolio, the actual exposure could be higher due to loan misclassification problems.

In addition, total exposure, including loans collateralized with real estate properties, account for 70 percent of total.” Due to upsurge in loan in real estate, the NRB has issued some regulatory directives to banks and financial institutions to limit the loan flow in real estate.  The Monetary Policy of 2010/11 has provided some guidelines for real estate financing. Paragraph 59 of the policy urges bank and financial institutions to curb down the real estate and housing loan to a specified limit. This is to reduce the risk associated with the high concentration of loan in a single sector. Similarly, paragraph 98 of the policy has reduced the limit in housing and residential lending.  It has also restricted lending to 10 percent limit in land purchase and plotting (NRB, 2010).  The real estate business is being done largely in the unorganized sector that purchases large area of land and do plotting with or without developing residential facility.

 However, there is a growing trend to develop land and construct residential housing by organized real estate developers. The organized sectors are those which are formally registered institutions for the real estate business that are involved in developing mass residential infrastructures. They are basically involved in purchase of large area of land and developing  the land with proper  planning along with various residential facilities. They can often  sell the plotted land with basic infrastructures. The organized sector comes under the government law and regulations, but the unorganized sector generally does not come under the law and regulation of government.

4.3.1 Nepal real estate is in Progress

Real estate marketing Nepal has flourished more from the last two decades specifically in large municipalities and fringe areas. Almost all economic activities in these areas depend on lands and so it is the pivotal for economic development. Although unsystematic and unhealthy real estate market does exist, most of the remittances and local savings are invested in the real estate because of the lack of other investment sectors. The buyers and sellers of land have to search the parties through unreliable or unprofessional brokers which would result in land disputes and many fraud cases. The land price sometime has huge difference from the market value and the utility services are also very poor in the developmental areas due to lack of land development planning.

4.4 Real Estate Sector of Srilanka

Banking and non-banking institutions provide housing finance in Sri Lanka. There are three specialized housing banks in the country. Two of them are government-owned: the State Mortgage and Investment Bank (SMIB) and the Housing Development Finance Corporation (HDFC). The only private sector housing finance institution is Housing Bank, a new entrant that was established in 2001. In addition, the National Savings Bank (NSB), which again is a government-owned entity, is a significant contributor to the housing finance market. These institutions are the main players in housing finance among the specialized banks.

They account for a significant volume of the housing finance business in the country (Piyasiri, 2006). Practically all the domestic commercial banks currently provide housing finance. All advertise and promote housing finance aggressively. Special housing product brands are available in the market. Among the foreign banks, and more recently, the Hong Kong and Shanghai Banking Corporation (HSBC) has become a very aggressive player in the market, with variable interest rate.  These would fall into the category of specialized banks. Smaller volumes of housing finance are provided by rural development banks as well.

A number of micro-finance institutions seem to be providing limited housing finance to the low-income segment of the population. Most of these institutions have the objective of uplifting the quality of life through income-generating activities. In that process, they find that one aspect of uplifting involves improving housing conditions as well. Another group that contributes to the housing sector is the finance companies. One of the key asset products of these institutions is real estate development. Most of these institutions specialize in land development only. However, a few have also been involved in construction as well.  Housing development lacks Government funding due to budgetary constraints.

Consequently, activities of institutions such as the National Housing Development Authority are confined to recoveries only. Other state-owned institutions such as SMIB and HDFC depend on deposit mobilization and funds borrowed from the debt market for their mortgage market activities.

In contrast, the NSB funds its housing finance operations by deploying 100% of its own mobilized funds. NSB’s current strategy of enlarging its retail portfolio has helped its housing finance operations immensely. Most commercial banks deploy their own mobilized funds for housing finance operations (Piyasiri, 2006).  Housing finance has grown significantly in the last few years. Most commercial banks have housing finance in their product range. The estimated housing portfolio of commercial banks stands at around Rs. 55-60 billion.

The specialized banks, including three specialized housing banks, have an estimated portfolio of around  Rs 25  billion. Rural development banks and a number of micro-finance institutions are also involved in housing finance. The total estimated housing finance portfolio in the country may be in the region of Rs 80-85 billion. A large variety of housing products/brands and competitive options are available in the market. However, rate volatility would always be a challenge and hurdle for sustained growth.  As per the 2001 survey, there were 4.7million housing units in the country.

The Central Bank annual report of 2003 estimated the housing shortage in the country at 400,000 units. The report also stated that the shortage is expected to increase to 600,000 units by 2010. This means that the annual demand for new housing is not being met by new construction. In addition, the above shortfall is prior to the December 2004 tsunami. The housing need of the war-affected regions of the Northeast of the country is also acute. Moreover, analysis of the quality of housing reveals that significant upgrading of existing housing can be effected. Therefore, the need for new housing and for financing is very significant.

4.4.1 Sri Lanka’s property prices continue to rise!

Property prices continue to rise in Sri Lanka, as the security situation stabilizes. There’s no official house price data in Sri Lanka, but developers and homebuyers confirm there have been double-digit property price rises in recent years. The value of apartments in the secondary market has risen more than 100% in the past 3 to 4 years, say local real estate analysts.  Land prices in residential areas of Colombo, the capital, have gone through the roof. However, a period of high inflation and higher construction costs mean that the real rise in property values is less than appears.

The long run of price increases dates back to the 2001 ceasefire, which led to a surge in investments by overseas Sri Lankans – working in the US, Australia, Canada, UK, and the Middle East. More than 50% of Colombo’s condominium buyers are overseas Sri Lankans. The housing boom has of course excluded foreigners, who since 2004 have been required to pay a 100% tax on landed properties purchased in Sri Lanka. The 100% surcharge is also imposed on apartments below the 4th floor.

In March 2010:

  • The average sale price of houses in Sri Lanka was LKR13.8 million (US$124,026), according to Lanka Property Web, one of the country’s leading property portals.
  • The average price of apartments (1400 sq ft) is LKR12.5 million (BDT per sq ft 5528)

5 Concluding Remarks

There is no question that real estate industry is one of the most potential industries in Bangladesh. The industry has been witnessing an investment boom for the last couple of years.