Motivation and the Brain Essay

I certify that the attached paper, which was produced for the class identified above, is my original work and has not previously been submitted by me or by anyone else for any class. I further declare that I have cited all sources from which I used language, ideas and information, whether quoted verbatim or paraphrased, and that any and all assistance of any kind, which I received while producing this paper, has been acknowledged in the References section. This paper includes no trademarked material, logos, or images from the Internet, which I do not have written permission to include. I further agree that my name typed on the line below is intended to have, and shall have the same validity as my handwritten signature. A healthy lifestyle, complete with eating well, takes motivation and constant strong dedication to achieve. When the motivation to see the action completed is at its most compelling state, it can only be placated once the behavior has been fulfilled. A lifestyle that involves healthy eating should be what everyone strives to achieve, but all too often there are roadblocks. The continuous development of understanding regarding eating disorders has expanded beyond what use to just be looked at as anorexia and bulimia or disorders that just associated with malnutrition. Just as eating too little can have a negative effect on a person’s health, so can overindulging, or eating too much of the wrong things. In America today the emphasis is the on-the-go lifestyle, which places a higher incentive to eat junk food as the main staple in one’s diet. The fast food is a quick fix to satisfy the compelling need of hunger. What causes a person to more than satisfy or willingly ignore the motivation to eat is under constant scrutiny; science is finding the links between hormone and gene dysfunction and the onset of eating disorders. There are both intrinsic and extrinsic factors associated with eating healthily, these factors play heavily on how a person chooses to live their lifestyle. Brain Structure and Healthy Eating To start on the path of a healthy eating lifestyle one should begin in the brain. The ventromedial hypothalamus (VMH) and the lateral hypothalamus (LH) explain the neurological mechanisms of hunger and satiety (Pinel, 2007). The VHM and the LH seem to work together as a sort of stoplight for a person’s hunger and satiety. The hypothalamus is in charge of changing energy into fat stores, by doing this, the hypothalamus creates an incentive to increase ones calories. To put this into psychological terms, the hypothalamus uses the need for energy to create a psychological force or need for hunger and then food, then calculating the rate and amount of fat storage within the body. More than three years ago, geneticists conducted a study with the findings reported the startling discovery that nearly half of all people in the U.S. with European ancestry carry a variant of the fat mass and obesity associated (FTO) gene which causes them to gain weight — from three to seven pounds, on average — but worse, puts them at risk for obesity (University of California, 2010). The FTO gene was studied in mice at a lab in Oxford. One set of mice was administered extra copies of the FTO gene, and fed the standard diet along with the other mice. The mice with the added gene gained 22% more weight than the mice with only one set. It was discovered when the FTO gene becomes overactive there is a tendency to consume more food. Intrinsic and Extrinsic Factors Intrinsic and Extrinsic factors are the factors that work with healthy eating; these factors need to be considered when diet habits are evaluated. Hereditary factors, or intrinsic factors, such as certain types of eating disorders, can affect many generations within a family. Healthy eating and the act of maintaining a healthy eating lifestyle can be influenced by an eating disorder. An example of this would be a person with an undiagnosed case of anorexia might not be able to control their need to diet, thus stifling their ability to have and maintain a healthy lifestyle. Environmental factors, extrinsic factors, also have the ability to influence someone who is trying to eat healthy. For example, a person working in an ice cream store is likely to gain weight and become obese simply because they have access to fatty food multiple days during the week. Another extrinsic factor, which may influence someone’s eating habits, is how they were raised and taught to eat by their family. If the parents are unhealthy eaters, this will rub off on their children who will then grow up to be unhealthy eaters. Michigan State University conducted a study of families with children ranging in the one to three years old age range. The study found the mothers who considered their children to be picky eaters were the ones who did not offer fruits and vegetables as often. This study also learned extra attention must be placed on the family approach for eating good healthy food. When the mother and father makes an increased effort to feed their family healthy food the resulting outcome is a more positive role modeling. Eating healthy with eating disorders Eating healthy is not always possible, especially with someone who has an eating disorder. Even though the reasoning behind a lot of eating disorders is not very clear, there are many factors that are associated with them. Hormones, the environment, genetics, and neurological malfunctions can all be linked to eating disorders. Another factor that is commonly seen in people with an eating disorder is the family dynamic during their puberty years. Families who report being less supportive and less encouraging of the open expression of feelings are particularly prone to producing adolescents afflicted by eating disorders (Dixon et. al., 1989). When some neurological structures malfunction it can effect how people react to food, CT scans of teens exhibiting signs of anorexia show decreased size and functionality of the thalamus, hypothalamus, and other neurological structures (Chowdhury & Lask, 2000). Science has not figured out yet if it is food association that causes neurological problems, or if it is the neurological problems that contribute to the food association problems. Stanford University has been conducting studies of anorexic patients in therapy; they have come to the conclusion that the therapy works more effectively if the family of the patient were involved with the therapy as well. The researchers were able to see a full anorexic remission rate of 42% as apposed to the 23% of those patients who elected to have individual therapy sessions. For these reasons, the motivation following eating disorders such as anorexia and obesity surrounds a broad array of environmental incentives and psychological drives. Conclusion In conclusion, the structures within the brain that work with appetite and satiety are the lateral hypothalamus, aka LH, and the ventromedial hypothalamus, aka VHM. Hunger and the process of eating can be brought on by outside or environmental factors like family gatherings, the quantity of food available, the amount of variety of foods available, and the deliciousness. There are also biological factors that affect a person’s hunger. Some of these are; the obesity associated gene within a person, adolescence and puberty, what the family dynamic is like, and where one works. Reference: Chowdhury, U., Lask, B. (2000). Neurological correlates to eating disorders. European Eating Disorders Review, 8(2), 126-133. Retrieved May 15, 2009, from EBSCOHost Database. Deckers, L. (2010). Motivation: Biological, psychological, and environmental, Second Edition. Boston, MA: Allyn and Bacon. Dixon, K.N., Jones, D., Lake, M., Nemzer, E., Sansone, R., & Stern, S.L. (1989). Family environment in anorexia nervosa and bulimia. International Journal of Eating Disorders, 8(1), 25-31. Retrieved May 15, 2009, from EBSCOHost Database. Michigan State University (2010, December 16). Mothers’ diets have biggest influence on Pinel, J.J. (2007). Basics of biopsychology. Boston, MA: Allyn & Bacon. Stanford University Medical Center (2010, October 11). Family therapy for anorexia twice University of California – Los Angeles (2010, April 20). Obesity gene, carried by more than a third of the US population, leads to brain tissue University of Oxford (2010, December 6). Overactive FTO gene does cause overeating

Pomi

Principles of Measurement (International) For Works of Construction JUNE 1979 Published by RICS Business Services Limited, a wholly owned subsidiary of The Royal Institution of Chartered Surveyors, under the RICS Books imprint, Surveyor Court Westwood Business Park Coventry, CV4 8JE UK No responsibility for loss occasioned to any person acting or refraining from action as a result of any material included in this publication can be accepted by the authors, publisher or The Royal Institution of Chartered Surveyors. The views expressed and the conclusions drawn in this book are those of the authors. ISBN 0 85406 108 8 First Edition 1979 Reprinted 1988, 1991, 1994, 2001, 2002 and 2004  © RICS 1988. Copyright in all or part of this publication rests with the RICS, and save by prior consent of the RICS, no part or parts of this publication shall be reproduced in any form or by any means electronic, mechanical, photocopying, recording or otherwise, now known or to be devised. Printed by Q3 Print, Loughborough Foreword The use of bills of quantities is a well-established means of enabling the financial control and management of building works. The key to the success of the use of bills of quantities is a clear understanding by all parties to the contract of what is included, or excluded, in the measurement. It is this that gives rise to the requirement for clearly defined standard methods of measurement. Since these principles of measurement were first issued in 1979, many countries have developed their own more detailed standard methods. A recent survey of its international membership carried out for the RICS Construction Faculty by the Building Cost Information Service (BCIS) identified that 14 of the 32 responding countries had their own method of measurement. However, the Principles of Measurement (International) (POMI) were still being used in about half of the countries and are still widely used on international contracts. There has been a trend in the UK and elsewhere to move away from measurement-based procurement, passing the responsibility for measuring the building work down the supply chain to the contractor or sub-contractor. However, research commissioned by the Construction Faculty showed that where bills of quantities were not provided as part of the procurement process, 95% of contractors would undertake their own measurement, with the majority of this carried out in accordance with the current Standard Method of Measurement (SMM). There is no doubt that the proliferation of procurement practices will continue. However, in circumstances in which there is a degree of design certainty before the contractor is appointed, measurement-based procurement will still be appropriate. Furthermore, where design decisions are being passed down the supply chain, measurement should be undertaken at the level at which the design is carried out, in order to remove the need for duplication. It is in the interests of the industry as a whole, including its clients, that measurement is carried out consistently. There is therefore a continued need for standard methods of measurement and, by implication, a continued need for measurement skills. These principles require a detailed specification and tender drawings to be provided. RICS recognises that circumstances vary from country to country, and from contract to contract, and that the principles therefore need to be flexible in order to accommodate variations in practice and techniques. Any comments on the principles should be sent to the RICS Construction Faculty, at 12 Great George Street, Parliament Square, London, SW1P 3AD. The principles are also available in French, German and Arabic. RICS is grateful to the original authors: Michael Rainbird, Alan Charter, James Diebel, Derek Lawrence and Michael Pagulatos. Simon Cash Chairman RICS Construction Faculty December 2003 Contents SECTION GP – GENERAL PRINCIPLES GP1 Principles of measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 GP2 Bills of quantities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 GP3 Measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 GP4 Items to be fully inclusive GP5 Description of items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1/2 GP6 Work to be executed by a specialist nominated by the employer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 GP7 Goods, materials or services to be pr ovided by a merchant or tradesman nominated by the employer . . . . . . . . . . . . . . . . . .2 GP8 Work to be executed by a government or public authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 GP9 Dayworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/3 GPI0 Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 SECTION A – GENERAL REQUIREMENTS A1 Conditions of contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A2 Specification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 A3 Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A4 Contractor's administrative arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 A5 Constructional plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A6 Employer's facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 A7 Contractor's facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 A8 Temporary works . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 A9 Sundry items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 SECTION B – SITE WORK B1 Site exploration generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 B2 Trial holes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 B3 Boreholes (including pumping test wells) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 B4 Site preparation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 B5 Demolitions and alterations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 B6 Shoring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 B7 Underpinning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 B8 Earthworks generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 B9 Excavation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 B10 Dredging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 B11 Disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 B12 Filling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 B13 Piling generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 B14 Driven piling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 B15 Bored piling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 B16 Sheet piling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 B17 Performance designed piling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 B18 Testing piling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 B19 Underground drainage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 B20 Paving and surfacing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 B21 Fencing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 B22 Landscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 B23 Railway work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 B24 Tunnel excavation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 B25 Tunnel linings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 B26 Tunnel support and stabilisat ion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 SECTION C – CONCRETE WORK C1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 C2 Poured concrete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 C3 Reinforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 C4 Shuttering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 C5 Precast concrete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 C6 Prestressed concrete . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 C7 Sundries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10/11 SECTION D – MASONRY D1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 D2 Walls and piers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 D3 Sills, etc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 04 Reinforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 D5 Sundries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 SE:CTION E – METALWORK E1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 E2 Structural metalwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11/12 E3 Non structural metalwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 SECTION F – WOODWORK F1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 F2 Structural timbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 F3 Boarding and flooring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 F4 Grounds and battens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 F5 F6 F7 F8 F9 F10 Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Finishings and fittings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12/13 Composlte items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Sundry items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Metalwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Ironmongery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 SECTION G – THERMAL AND MOISTURE PROTECTION G1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 G2 Coverings and linings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 G3 Damp-proof courses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 G4 Insulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 SECTION H – DOORS AND WINDOWS H1 Doors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 H2 Windows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 H3 Screens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 H4 Ironmongery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 H5 Glass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 H6 Patent glazing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 SECTION J – FINISHES J1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 J2 Backgrounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 J3 Finishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 J4 Sundries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 J5 Suspended ceilings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 J6 Decorations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 J7 Signwriting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 SECTION K – ACCESSORIES K1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 K2 Partitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 SECTION L – EQUIPMENT L1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 SECTION M – FURNISHINGS M1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 M2 Curtain track . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 SECTION N – SPECIAL CONSTRUCTION N1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 N2 Enclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 N3 Installations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 SECTION P – CONVEYING SYSTEMS P1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 P2 Sundries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 P3 Work incidental to conveying systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 SECTION Q – MECHANICAL ENGINEERING INSTALLATIONS Q1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Q2 Pipework and gutterwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Q3 Ductwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Q4 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Q5 Automatic controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Q6 Connections to supply mains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Q7 Insulation, including linings and protective coverings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Q8 Sundries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Q9 Work incidental to mechanical engineering installations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 SECTI ON R – ELECTRICAL ENGINEERING INSTALLATIONS R1 Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 R2 Main circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 R3 Sub-main circuits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 R4 Final sub-circuits and auxiliary installations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 R5 Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 R6 Control gear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 R7 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 R8 Connections to supply mains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 R9 Sundries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 R10 Work incidental to electrical engineering installations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 APPENDIX Amendments to principles of measurement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1 SECTION GP – GENERAL PRINCIPLES GP1 Principles of measurement GP1. 1 Principles of measurement These principles of measurement provide a uniform basis for measuring bills of quantities for works of construction. More detailed information than is required by this document may measurement be given to define the precise nature of work or the circumstances under which it is to be carried out. Amendments to these principles of measurement for use in a particular locality or adopted for work not envisaged by this document shall be stated; an appendix is provided for such amendments to be recorded. These principles of measurement may be applied equally to the measurement of proposed works and of completed works. Bills of quantities The objects of bills of quantities are: 1. To assist in the accurate preparation of tenders, by providing for measurement of quantities on a uniform basis 2. To provide a basis for the financial control of a project, in accordance with the conditions of contract. Bills of quantities shall describe and represent the works to be carried out; work which cannot be measured accurately shall be described as approximate or given in bills of approximate quantities. Conditions of contract, drawings and specifications shall be provided with the bills of quantities. The section headings and classifications do not impose restrictions upon the format and presentation of bills of quantities. Measurement Work shall be measured net as fixed in position and each measurement shall be taken to the nearest 10 millimetres; this principle shall not apply to dimensions stated in descriptions. Unless otherwise stated, no deduction shall be made from items required to be measured by area for voids of less than 1. 00 m2. Minimum deductions of voids shall refer only to voids within the edges of measured areas; voids which are at the edges of measured areas shall always be deducted, irrespective of size. These principles of measurement may be used with other units of measurement but the particular amendments shall be stated. Notwithstanding these principles of measurement, a separate minor building or structure may be enumerated. Items to be fully inclusive Unless otherwise stated, all items shall be fully inclusive of all that is necessary to fulfill the Items to be fully liabilities and obligations arising out of the contract and shall include: 1. Labour and all associated costs 2. Materials, goods and all associated costs 3. Provision of plant 4. Temporary works 5. Establishment charges, overheads and profit. Description of items Items which are required to be enumerated. or for which an item is required, shall be fully described. Items which are to be measured by length or depth shall state the cross-sectional size and shape, girth or ranges of girths or such other information as may be appropriate; for items of pipework it shall be stated whether the diameter is internal or external. Items which are to be measured bv area shall state the thickness or such other information as may be appropriate. Items which are to be measured by weight shall state the material thickness and unit weight if appropriate (for example, ductwork). GP1. 2 GP1. 3 GP2 Bills of quantities GP2. 1 GP2. 2 GP2. 3 GP2. 4 GP3 Measurement GP3. 1 GP3. 2 GP3. 3 GP3. 4 GP3. 5 GP4 Items to be fully inclusive GP4. 1 GP5 Description of items GP5. 1 GP5. 2 GP5. 3 GP5. 4 1 GP5. 5 Notwithstanding these principles of measurement, proprietary items may be measured in a manner appropriate to the manufacturer's tariff or customary practice. The description of items in bills of quantities may refer to other documents or drawings and any reference to such information shall be understood to fulfill any requirement of these principles of measurement; alternatively, reference may be made to published information. Work to be executed by a specialist nominated by the employer Unless otherwise required by the conditions of contract, work which is required to be executed by a specialist nominated by the employer shall be given as a sum; such sum shall be exclusive of contractor's profit and in each case an item shall be given for the addition of profit. An item shall be given in each case for assistance by the contractor, which shall include: 1. Use of contractor's administrative arrangements 2. Use of constructional plant 3. Use of contractor's facilities 4. Use of temporary works 5. Space for specialist's offices and stores 6. Clearing away rubbish 7. Scaffolding required by the specialist, giving particulars 8. Unloading, distributing, hoisting and placing in position items of plant, machinery or the like, giving particulars. Goods, materials or services to be provided by a merchant or tradesman nominated by the employer Unless otherwise required by the conditions of contract, goods, materials or services which are required to be provided by a merchant or tradesman nominated by the employer shall be given as a sum; such sum shall be exclusive of contractor's profit and in each case an item shall be given for the addition of profit. Fixing goods and materials shall be given in accordance with the relevant clauses in these principles of measurement; fixing shall be understood to include unloading, storing, distributing and hoisting the, goods and materials. Particulars shall be given of any requirements for the contractor to arrange for delivery or pay any costs of conveying goods or materials. Work to be executed by a government or public authority Unless otherwise required by the conditions of contract, work which may only be carried out or by a government or public authority shall be given as a sum; such sum shall be exclusive of contractor's profit and in each case an item shall be given for the addition of profit. An item shall be given in each case for assistance by the contractor as described in clause GP6. . Dayworks The cost of labour in dayworks shall be given as a sum; alternatively, a schedule of the different categories of labour may be given containing a provisional quantity of hours for each category. The cost of labour included in a sum or schedule shall include wages, bonuses and all allowances paid to operatives directly engaged on dayworks (including those operating mechanical plant and transport) in accordance with t he appropriate employment agreement or, where no such agreement exists, the actual payments made to the work people concerned. The cost of materials in dayworks shall be given as a sum; alternatively, 3 schedule may be given containing a provisional quantity of different materials. The cost of materials included in a sum or schedule shall be the net invoiced price, including delivery to site. The cost of constructional plant employed exclusively in dayworks shall be given as a sum; alternatively, a schedule of the different categories of plant may be given containing a provisional quantity of hours, or such other period of time as may be appropriate, for each category. The cost of constructional plant included in a sum or schedule shall include fuel, consumable stores, repairs, maintenance and insurance of plant. An item shall be given for the addition of establishment charges. overheads and profit to each of the sums or schedules of labour, materials or plant. Description of items (continued) GPS. 6 GP6 GP6. 1 Work to be executed by a specialist nominated by the employer GP6. 2 GP7 GP7. 1 GP7. 2 Goods, materials or services to be provided by a merchant or tradesman nominated by the employer GP8 GP8. 1 Work to be executed by a government or public authority GP8. 2 GP9 GP9. 1 Dayworks GP9. 2 GP9. 3 GP9. 4 GP9. 5 GP9. 6 GP9. 7 2 Dayworks (continued) GP9. 8 Establishment charges, overheads and profit shall include: 1. Costs related to the employment of labour 2. Costs related to the storage of materials, including handling and waste in storage 3. Contractor's administrative arrangements 4. Constructional plant, except plant employed exclusively on dayworks 5. Contractor's facilities 6. Temporary works 7. Sundry items. Contingencies GP10 GP 10. 1 Unless otherwise required by the conditions of contract, contingencies shall be given as a sum; no item shall be given for the addition of profit. SECTION A – GENERAL REQUIREMENTS A1 Conditions of contract A1. 1 A1. 2 Conditions of contract A schedule of the clause headings shall be set out in the bills of quantities. Where there is an appendix to the conditions of contract requiring insertions to be made, a schedule of the insertions shall be set out in the bills of quantities. Specification Where the specification contains clauses related to any of the following General Requirements, the bills of quantities shall make reference to the appropriate clauses. Restrictions Particulars shall be given of any restrictions, which shall include: 1. Access to and possession or use of the site 2. Limitations of working space 3. Limitations of working hours 4. The maintenance of existing services on, under or over the site 5. The execution or completion of the work in any specific order, sections or phases 6. Items of a like nature. Contractor's administrative arrangements An item shall be given for contractor's administrative arrangements, which shall include: 1. Site administration 2. Supervision 3. Security 4. Safety, health and welfare of workpeople 5. Transport of workpeople. Constructional plant An item shall be given for constructional plant, which shall include: 1. Small plant and tools 2. Scaffolding 3. Cranes and lifting plant 4. Site transport 5. Plant required for specific trades. Employer's facilities Particulars shall be given of any facilities required for the employer or the employer's representatives, which shall include: 1. Temporary accommodation (for example, offices, laboratories, living accommodation), including heating, cooling, lighting, furnishing, attendance or related facilities 2. Telephones, including costs of calls; alternatively, the cost of calls may be given as a sum 3. Vehicles 4. Attendance of staff (for example, drivers, laboratory assistants) 5. Equipment (for example, surveyor laboratory equipment) 6. Special requirements for programmes or progress charts 7. Any other facilities (for example, progress photographs, signboards). A2 Specification A2. 1 A3 Restrictions A3. 1 A4 Contractor's administrative arrangements A4. l A5 Constructional plant A5. 1 A6 Employer's facilities A6. 1 3 A7 A 7. 1 Contractor's facilities An item shall be given for facilities required by the contractor, which shall include: 1. Accommodation and buildings, including offices, laboratories, compounds, stores, messrooms and living accommodation 2. Temporary fencing, including hoardings, screens, roofs and guardrails 3. Temporary roads, including hardstandings and crossings 4. Water for the works; particulars shall be given if water will be supplied to the contractor 5. Lighting and power for the works; particulars shall be given if current will be supplied to the contractor 6. Temporary telephones. Particulars shall be given where the nature or extent of the facilities is not at the discretion of the contractor. Temporary works An item shall be given for temporary works, which shall include: 1. Traffic diversion 2. Access roads 3. Bridges 4. Cofferdams 5. Pumping 6. De-watering 7. Compressed air for tunnelling. Particulars shall be given where the nature r extent of the temporary works is not at the discretion of the contractor. Sundry items An item shall be given for sundry items, which shall include: 1. Testing of materials 2. Testing of the works 3. Protecting the works from inclement weather 4. Removing rubbish, protective casings and coverings and cleaning the works at completion 5. Traffic re gulations 6. Maintenance of public and private roads ‘ 7. Drying the works 8. Control of noise and pollution 9. All statutory obligations Particulars shall be given where the nature or extent of the sundry items is not at the discretion of the contractor. Sundry items Temporary works Contractor's facilities A7. 2 A8 A8. 1 A8. 2 A9 A9. 1 A9. 2 SECTION B – SITE WORK B1 B1. 1 B1. 2 B1. 3 B2 B2. 1 Site exploration generally Keeping records of site observations, site tests and laboratory tests shall be given as an item. Samples, site observations, site tests, a oratory tests an analyses shall be given as an item, Providing reports shall be given as an item. Trial holes Excavating trial holes shall be measured by depth, taken along the centre line, stating the number and the maximum depth below commencing level. Earthwork support which is not at the discretion of the contractor shall be measured by depth. Boreholes (including pumping test wells) Driving boreholes shall be measured by depth, taken along the centre line, stating the number and the maximum depth below commencing level; raking boreholes shall be so described. Lining which is not at the discretion of the contractor shall be measured by depth. Cap pings shall be enumerated. Boreholes (including pumping test wells) Trial holes Site exploration generally B2. 2 B3 B3. 1 B3. 2 B3. 3 4 B4 Site preparation B4. 1 B4. 2 B4. 3 Site preparation Removing isolated trees shall be enumerated. Removing hedges shall be measured by length. Site clearance, which shall include removing vegetation, undergrowth, bushes, hedges, trees or the like, shall be measured by area. Demolitions and alterations The location of each item shall be given. Unless otherwise stated, old materials shall be understood to become the property of the contractor and shall be cleared away; old materials required to remain the property of the employer shall be so described. Removing individual fittings, fixtures, engineering installations or the like from an existing structure shall each be given as an item. Demolishing individual structures (or part thereof) shall each be given as an item; alternatively, demolishing all structures on a site may be given as an item. Cutting openings in existing structures and alterations to existing structures shall each be given as an item; making good all work damaged shall be understood to be included. Temporary screens and roofs shall be given as an item. Shoring Shoring incidental to demolitions and alterations, together with clearing away and making good all work damaged, shall be understood to be included. Shoring (other than that incidental to demolitions and alterations) shall be given as an item, stating the location; clearing away and making good all work damaged shall be understood to be included. Particulars shall be given where the design of the shoring is not at the discretion of the contractor. Shoring which is required by the specification to be left in position shall be so described. Underpinning Work in underpinning shall be given under an appropriate heading, stating the location. Unless otherwise stated, work shall be measured in accordance with the appropriate sections of this document. Temporary support shall be given as an item; particulars shall be given where the design of the temporary support is not at the discretion of the contractor. Excavation shall be measured by volume, taken to the outside line of the projecting foundations or to the outside line of the new foundations (whichever is the greater), classified as follows: 1. Excavation in preliminary trenches down to the base of the existing foundations 2. Excavation below the base of the existing foundations. Cutting away projecting foundations shall be measured by length. Earthworks generally Any information available concerning the nature of the ground and strata shall be provided with the bills of quantities. The quantities for excavation, dredging or tunnelling shall be understood to be the bulk before excavation, and no allowance shall be made for any ‘orking space or subsequent variation in bulk; existing voids shall be deducted. Multiple handling of materials and transporting about the site shall be understood to be included; multiple handling which is required by the specification shall be so described in the item of disposal. Earthwork support shall be given as an item. Excavation in rock shall be so described; alternatively, it may be measured as extra over excavation (that is, B5 Demolitions and alterations B5. 1 B5. 2 B5. 3 B5. 4 B5. 5 B6 Shoring B6. 1 B6. 2 B6. 3 B6. 4 B7 Underpinning B7. 1 B7. 2 B7. 3 B7. 4 B7. 5 B8 Earthworks generally B8. 1 B8. 2 B8. 3 B8. 4 B8. 5 5 the volume of rock shall be measured bur no deduction shall be made from the volume of excavation in which the rock occurs). B8. 6 For the purposes of measurement rock is defined as any material met with which is of such size or position that. n the opinion of the employer's representative. It can only be removed by means of wedges, special plant or explosives. Excavation Unless otherwise stated, excavation shall be measured by volume as the void which is to be occupied by the permanent construction, or vertically above any part of the permanent construction, classified as follows: 1. Oversite excavation to remove top soil, stating the average depth 2. Excavation to reduce levels 3. Excavation in cuttings 4. Basement excavation 5. Trench excavation to receive foundations, which shall include pile caps and ground beams 6. Pit excavation to receive foundation bases, stating the number 7. Excavation for diaphragm walls, stating the width of the permanent construction and the type of support fluid. Excavation of trenches for service pipes, drain pipes, cables or the like shall each be measured by length, stating the average depth; disposal and filling shall be understood to be included. For excavation in tunnelling see clause B24. Dredging Dredging shall be measured by volume, stating the location and limits; unless otherwise stated, measurement shall be understood to be taken from soundings. Disposal Disposal of material arising from excavation, dredging or tunnelling shall be measured by volume as equal to the volume of excavation, dredging or tunnelling and each shall be classified as follows: 1. Backfilled into excavation 2. Backfilled in making up levels 3. Backfilled oversite to make up levels, giving details of special contouring, embankments or the like 4. Removed, which shall include providing a suitable tip. Filling Filling material (other than that arising from excavation, dredging or tunnelling) shall be measured by volume as equal to the void to be filled, classified as follows: 1. Filled into excavation 2. Filled in making up levels 3. Filled oversite to make up levels, giving details of special contouring, embankments or the like. Piling generally For the purposes of measurement, driven piling shall include timber, precast concrete or metal piles. Other piling systems (for example, preformed casing with concrete filling) shall be measured in accordance with the principles for driven piling or bored piling as may be appropriate. Unless otherwise stated, reinforcement shall be measured in accordance with Section C. Driven piling Supplying piles shall be measured by length, stating the number; reinforcement shall be given separately. Heads and shoes shall be enumerated. Driving piles shall be measured by length, taken from the pile point in contact with the ground when pitched to the pile point when driven, stating the number; driving piles on rake shall be so described. Cutting off tops of piles and connections for lengthening piles shall be enumerated. Earthworks generally (continued) B9 B9. 1 Excavation B9. 2 B9. 3 B10 B10. 1 Dredging B11 B11. 1 Disposal B12 B12. 1 Filling B13 B13. 1 B13. 2 Piling generally B13. 3 B14 B14. 1 B14. 2 B14. 3 Driven piling B14. 4 6 B15 Bored piling B15. 1 Bored piling Boring for piles shall be measured by length, taken from the formation level of the ground to the bottom of the pile hole, stating the number; the measurement shall include for blind boring when the pile top is to be below the formation level of the ground. Boring through rock shall be measured by length as extra over boring for piles (that is, the length of boring through rock shall be measured but no deduction shall be made from the total length of boring). Linings for piles shall be measured by length. Disposal of material arising from boring shall be measured in accordance with clause B11. Concrete filling shall be measured by volume. Cutting off tops of piles and forming enlarged bases shall be enumerated. Sheet piling The measurements for sheet piling shall be taken along the centre line. Supplying sheet piling shall be measured by area, taken as the area when in final position. Corner piles or the like shall be measured by length. Driving sheet piling shall be measured by area, taken from the formation level of the ground to the bottom edge of the sheet piling when driven; strutting and waling and withdrawing sheet piling shall be understood to be included. Cutting sheet piling shall be measured by length. Sheet piling which is required by the specification to be left in position shall be so described. Performance designed piling Performance designed piles shall be enumerated; reinforcement and disposal of material arising from boring shall be understood to be included. Details shall be given when the pile top is to be below the formation level of the ground. Testing piling Testing piling, which shall include trial piles and testing working piles, shall be given as an item. Underground drainage Drain pipes shall be measured by length, taken along the centre line over all fittings; drain pipes within inspection chambers or the like shall be so described and shall be understood to drainage include fixings and supports. Drain fittings in the length (for example, bends, junctions) shall be enumerated, grouped together for each size of pipe and described as ‘fittings'. Drain accessories (for example, gullies, traps) shall be enumerated; concrete surrounds and additional excavation shall be understood to be included. Concrete beds and coverings for drain pipes shall each be measured by length, stating the diameter of the pipe; surrounds to vertical pipes shall be so described and shall be understood to include formwork. Inspection chambers or the like shall be enumerated; alternatively, they may be measured in accordance ‘ith the relevant sections of this document and given under an appropriate heading. Connections to existing drains shall be enumerated, subject to clause GP8. Paving and surfacing Paving and surfacing shall be measured by area. Expansion joints and ‘ater stops shall be measured by length. B15. 2 B15. 3 B15. 4 B15. 5 B15. 6 B16 Sheet piling B16. 1 B16. 2 B16. 3 B16. 4 B16. 5 B16. 6 B17 B17. 1 B17. 2 B18 Testing piling B18. 1 B19 Underground drainage B19. 1 B19. 2 B19. 3 B19. 4 B19. 5 B19. 6 B20 Paving and surfacing B20. 1 B20. 2 7 B20. 3 B21 B21. 1 Channels, curbs, edgings or the like shall be measured by length; curved work shall be so described. Fencing Fencing, which shall include posts and supports in the length, shall be measured by length; excavating pits, disposal and filling shall be understood to be included. Special posts (for example, gate posts, straining posts) shall be enumerated; excavating pits, disposal and filling shall be understood to be included. Gates, barriers or the like shall be enumerated. Finishes shall be measured in accordance with Section J. Landscaping Cultivating and fertilising ground shall be measured by area. Soiling, seeding and turfing shall be measured by area. Hedges shall be measured by length. Trees and shrubs shall be enumerated. Railway work Track, guard rails and conductor rails shall each be measured by length, taken along the centre line over all fittings; curved work shall be so described. Sleepers and chairs shall be enumerated. Switches and crossings shall be enumerated, classified as follows: 1. Switches and turnouts 2. Diamond crossings 3. Single slip crossings 4. Double slip crossings 5. Other switches and crossings. Ballast shall be measured by volume, without deduction for track, classified as follows: 1. Bottom ballast, placed before the track is laid 2. Top ballast, placed after the track is laid. Concrete track foundations shall be measured by length, except that overwidth foundations for switches and crossings shall be measured by area; reinforcement and shuttering shall be understood to be included. Bitumen filler to complete rail assemblies shall be measured by length. Buffer stops, wheel stops or the like shall be enumerated. Signalling installations shall be measured in accordance with Section L or Section R. Tunnel excavation Excavation shall be measured by volume as the void which is to be occupied, including the volume of permanent linings, grouped as may be appropriate to identify different lengths and classified as follows: 1. Straight tunnels 2. Straight shafts 3. Curved tunnels 4. Curved shafts 5. Tapered tunnels 6. Tapered shafts 7. Other cavities, which shall include transitions, breakaways and intersections between shafts and tunnels. Forward probing shall be measured by length, stating the number of probes. For disposal see clause B11. Paving and surfacing (continued) Fencing B21. 2 B21. 3 B21. 4 B22 B22. 1 B22. 2 B22. 3 B22. 4 B23 B23. 1 Landscaping Railway work B23. 2 B23. 3 B23. 4 B23. 5 B23. 6 B23. 7 B23. 8 B24 B24. 1 Tunnel excavation B24. 2 B24. 3 8 B25 Tunnel linings B25. 1 Tunnel linings Poured concrete linings shall be measured by area, stating whether spray or cast concrete, classified as follows: 1. lining 2. Secondary lining. Preformed segmental tunnel linings shall be enumerated. Tunnel support and stabilisation Timber supports shall be measured by volume. Sprayed concrete supports and reinforcement shall be measured by area. Rock bolts shall be measured by length. Face packers shall be enumerated. Metal arch supports shall be measured by weight. Injection of grout materials shall be measured by weight. B25. 2 B26 Tunnel support and stabilisation B26. 1 B26. 2 B26. 3 B26. 4 B26. 5 B26. 6 SECTION C – CONCRETE WORK C1 Generally C1. 1 C1. 2 Generally Reinforced poured concrete and plain poured concrete shall each be so described. Poured concrete required by the specification to be placed, compacted, cured or otherwise treated in a particular manner shall be so described. No deduction shall be made for voids less than 1. 00 m3, nor for the volume of any reinforcement or structural metal enclosed in the concrete, except that voids caused by boxed or tubular structural metalwork shall always be deducted. Unless otherwise described, horizontal surfaces of concrete shall be understood to be tamped. Poured concrete Unless otherwise stated, poured concrete shall be measured by volume, classified as follows: 1. Foundations, which shall include combined or isolated bases 2. Pile caps, which shall include ground beams 3. Blinding 4. Beds, which shall include roads and footpaths, stating the thickness 5. Suspended slabs, which shall include floors, landings, roofs or the like, stating the thickness 6. Walls, which shall include attached columns, stating the thickness 7. Columns, which shall include casing to metal stancheons 8. Beams (measured below the slab), which shall include lintels and casing to metal beams 9. Staircases, which shall include steps and strings 10. Diaphragm walls 11. Other classifications (for example, tunnel linings, bridge abutments) as may be appropriate. Poured concrete suspended slabs of special construction, including floors, landings, roofs or the like, shall be measured by area; coffered and troughed slabs shall be so described, giving details of solid margins or the like. Where an item is required to be measured by volume and the thickness stated, then items of differing thickness may be grouped together, provided that the range of the different thicknesses is stated. Reinforcement The weight of bar reinforcement shall be the net weight without addition for rolling margin, supports, spacers or tying wire. Bar reinforcement shall be measured by weight, stating the diameter; bars of iffering diameters shall be given separately. Fabric reinforcement shall be measured by area, without addition for laps. C1. 3 C1. 4 C2 Poured concrete C2. 1 C2. 2 C2. 3 C3 Reinforcement C3. 1 C3. 2 C3. 3 9 C3. 4 C4 C4. 1 Reinforcement shall be given as an item where the detailed design work is the responsibility of the contractor. Shuttering Unless ot herwise stated, shuttering shall be measured by area, taken as the net area in contact with the finished face of concrete, classified as follows: 1. Soffits; shuttering to soffits of special construction shall be so described 2. Sloping soffits, which shall include soffits of staircases 3. Sloping upper surfaces, which shall include surfaces more than 15 ° from horizontal 4. Sides of foundations, which shall include bases, pile caps and ground beams 5. Sides of walls, which shall include attached columns 6. Returns to walls, which shall include ends, projections and reveals of openings or recesses 7. Sides and soffits of beams, which shall include lintels and breaks in soffits; isolated beams shall be so described 8. Sides and soffits of sloping beams, which shall include lintels and breaks in soffits; isolated beams shall be so described 9. Sides of columns 10. Staircases, which shall include treads, isers and strings but exclude soffits 11. Other classifications (for example, tunnel linings, bridges, bridge abutments) as may be appropriate. Shuttering to edges, which shall include face of curb or upstand or break in upper surface of floor, shall be measured by length; items of differing height may be grouped together, provided that the range of different heights is stated. Grooves, which shall include throats, rebates, chamfers or the like, 2500 mm2 sectional area or over shall be measured by length; grooves less than 2500 mm2 sectional area shall be understood to be included. Shuttering may be enumerated where it is more appropriate to do so (for example, decorative features). Shuttering which is required by the specification to be left in position shall be so described. Shuttering to curved, conical and spherical surfaces shall each be so described. Shuttering to provide a special finish shall be so described. Unless otherwise stated, if the volume of concrete has not been deducted, shuttering to the faces of a void shall be understood to be included. Precast concrete Moulds for precast units shall be understood to be included. Reinforcement shall be measured in accordance with clause C3 and given under an appropriate heading; alternatively, it may be described in the item. Floor slabs, partition slabs or the like shall be measured by area. .' Lintels, sills, duct covers or the like shall be measured by length; alternatively, duct covers may be measured by area. Structural units (for example, beams, stanchions, tunnel rings) shall be enumerated. Padstones, cappings or the like shall be enumerated. Prestressed concrete Prestressed concrete work shall be given under an appropriate heading. Prestressed concrete shall be measured by volume, classified in accordance with clause C2. Reinforcement shall be measured in accordance with clause C3; supporting steel wires or cables shall be measured by weight. Shuttering shall be measured in accordance with clause C4, stating whether to pre-tensioned or post-tensioned members. Sundries Surfaces finished to falls or cross-falls shall be measured by area. Reinforcement (continued) Shuttering C4. 2 C4. 3 C4. 4 C4. 5 C4. 6 C4. 7 C4. 8 C5 C5. 1 C5. 2 Precast concrete C5. 3 C5. 4 C5. 5 C5. 6 C6 C6. 1 C6. 2 C6. 3 Prestressed concrete C6. 4 C7 C7. 1 Sundries 0 Sundries (continued) C7. 2 C7. 3 C7. 4 C7. 5 Surface finishes shall be measured by area, except that tamped finishes shall be understood to be included. Expansion material or the like shall be measured by area. Designed joints, water stops, cast-in channels or the like shall be measured by length. Forming sinkings, channels or the like shall be measured by length and, where approp riate, the item may include additional excavation, hardcore, shuttering and concrete; alternatively, they may be enumerated. Fixings, ties, inserts or the like shall be enumerated; alternatively, they may be measured by area. Mortices, holes or the like shall be understood to be included. C7. 6 C7. 7 SECTION D – MASONRY D1 Generally D1. 1 D1. 2 D2 Walls and piers D2. 1 Generally Sloping, battering and curved work shall each be so described. Reinforced masonry shall be so described. Walls and piers Walls and piers shall be measured by area, classified as follows: 1. Walls; integral piers shall be measured as walls of combined pier and wall thickness 2. Walls built against other construction 3. Cavity walls measured as a composite item, including skins and cavity; alternatively, the skins and cavity may each be measured by area. Closing cavity walls at ends or around openings shall be understood to be included 4. Isolated piers. Faced or fair faced work shall each be so described; alternatively, it may be measured as extra over walls, stating whether faced or fair faced on one or both sides (that is, the area of faced or fair faced work shall be measured but no deduction shall be made from the area of walling on which the faced or fair faced work occurs). Sills, etc. Sills, copings, oversailing or receding courses or the like shall be measured by length. Arches shall be measured by length. Reinforcement Reinforcement shall be measured in accordance with clause C3; alternatively, fabric reinforcement may be measured by length. Sundries Concrete filling to cavities shall be measured by area. Expansion joints or the like shall be measured by length. Air bricks or the like shall be enumerated. D2. 2 D3 Sills, etc. D3. 1 D3. 2 D4 Reinforcement D4. 1 D5 Sundries D5. 1 D5. 2 D5. 3 SECTION E – METALWORK E1 Generally E1. 1 Generally The weight of metalwork shall be the net weight, without addition for rolling margin or welding material and without deduction for holes, splay cuts, notches or the like. Welded, riveted or bolted work shall each be so described. Structural metalwork Unless otherwise stated, structural metalwork shall be measured by weight, classified as follows: 1. Grillages 2. Beams 3. Stanchions E1. 2 E2 Structural metalwork E2. 1 11 4. 5. 6. 7. E2. 2 E2. 3 E2. 4 E2. 5 Portal frames, stating the number Roof trusses, stating the number Support steelwork, which shall include sheeting rails, braces, struts or the like Other classifications, as may be appropriate. Structural metalwork (continued) Fittings (for example, caps, brackets) shall be given as an item. Fixings (for example, bolts, distance pieces, rivets) shall be given as an item. Wedging and grouting bases or the like shall be enumerated. Holding down bolts or the like shall be enumerated; temporary boxes and grouting shall be understood to be included. Protective treatment shall be given as an item. Non-structural metalwork Floor plates, duct covers, sheet metal coverings and linings or the like shall be measured by area. Bearers, balustrades, handrails (except where included with a staircase), frames or the like shall be measured by length. Matwell frames, cat ladders, gates, staircases or the like shall be enumerated. Non-structural metalwork E2. 6 E3 E3. 1 E3. 2 E3. 3 SECTION F – WOODWORK F1 F1. 1 Generally Timber which is sawn (that is, not milled) and timber which is finished (that is, milled) shall each be so described. Descriptions of timber members shall state whether the sizes are basic (that is, before machining) or finished (that is, milled, within permitted deviations). Structural timbers Structural timbers shall be measured by length, classified as follows: 1. Floors and flat roofs 2. Pitched roofs 3. Walls 4. Kerbs, bearers or the like 5. Cleats, sprockets or the like. Strutting and bridging between joists shall be measured by length, taken overall the joists. Boarding and flooring Unless otherwise stated, boarding and flooring shall be measured by area, without addition for joints or laps, classified as follows: 1. Floors, which shall include landings 2. Walls, which shall include returns, reveals of openings or recesses and attached and unattached columns 3. Ceilings, which shall include attached and unattached beams and soffits of staircases 4. Roofs, which shall include tops and cheeks of dormers and sides and bottoms of gutters, stating whether flat, sloping or vertical; firring pieces and bearers shall be understood to be included. Eaves and verge boards, which shall include fascias, barge boards or the like, shall be measured by length. Fillets and rolls shall be measured by length. Grounds and battens Open-spaced grounds and battens shall be measured by area, taken overall. Individual grounds and battens shall be measured by length. Framework Framework shall be measured by area, taken overall; alternatively, it may be measured by length. Framework Grounds and battens Boarding and flooring Structural timbers Generally F1. 2 F2 F2. 1 F2. 2 F3 F3. 1 F3. 2 F3. 3 F4 F4. 1 F4. 2 F5 F5. 1 12 F6 Finishings and fittings F6. 1 Finishings and fittings Finishings shall be measured by length, classified as follows: 1. Cover fillets, which shall include architraves, skirtings or the like 2. Beads, which shall include stops or the like 3. Edgings, which shall include window boards, nosings or the like. Unless otherwise stated, fittings shall be measured by length, classified as follows: 1. Work tops, which shall include seats or the like 2. Handrails or balustrades. Shelving shall be measured by area; alternatively, it may be measured by length. Backboards or the like shall be enumerated. Built-up members shall be so described. Plastic coverings or the like shall be described with the item on which they occur, stating whether on one or more faces; alternatively, they may be measured separately by area. Sheet linings shall be measured by area, classified as follows: 1. Walls, which shall include returns, reveals of openings or recesses and attached and unattached columns 2. Ceilings, which shall include attached and unattached beams and soffits of staircases. Composite items Unless otherwise stated, composite items (which shall mean items which might be fabricated off-site whether or not they are fabricated off-site) shall be enumerated; all metal work or the like shall be understood to be included. Any associated work (for example, decorations) shall be measured in accordance with the relevant sections of this document. Sundry items Finished surfaces on sawn items shall be measured by length. Metalwork Metalwork items associated with woodwork shall be enumerated; alternatively, waterbars or the like may be measured by length. Ironmongery Units or sets of ironmongery shall be enumerated. F6. 2 F6. 3 F6. 4 F6. 5 F6. 6 F6. 7 F7 Composite items F7. 1 F7. 2 F8 Sundry items F8. 1 F9 Metalwork F9. 1 F10 Ironmongery F10. 1 SECTION G – THERMAL AND MOISTURE PROTECTION G1 Generally G1. 1 G1. 2 G2 Coverings and linings G2. l Generally Work shall be measured flat without addition for laps or seams. Curved, spherical and conical work shall each be so described. Coverings and linings Unless otherwise stated, roofing, tanking, waterproof coveri

E Payment

Chapter 1. Introduction 1. 1 Electronic payment systems and their place in electronic commerce 1. 1. 1 E-commerce and electronic payment systems 1. 1. 2 Limitations of traditional payment systems in the context of online payments 1. 1. 3 The need for new payment systems designed for e-commerce 1. 2 User acceptance: understanding and issues 1. 3 Research objectives 1. 4 Research scope 1. 4. The role of electronic payments in customer e-commerce activities 1. 4. 2 Approach and methodology Chapter 2. Classification and characteristics of electronic payment systems 2. 1 Classification of payment systems 2. 1. 1 Introduction 2. 1. 2 Primary classification of payment systems 2. 1. 3 Further classification of account-based systems 2. 1. 4 Further classification of electronic cash systems 2. 1. Payment mediation services vs. payment systems 2. 2 Identifying the characteristics of payment systems 2. 3 Advantages and limitations of payment models 2. 3. 1 Advantages and limitations of the elect ronic cash model 2. 3. 2 Advantages and limitations of the acount-based model 2. 5 Conclusions Chapter 3. User survey of electronic payment systems 3. 1 User acceptance of electronic payment systems 3. 2 Survey of users’ attitudes towards characteristics of payment systems 3. 2. 1 Survey participants . 2. 2 Questionnaire design and analysis 3. 2. 3 Survey results and discussion 3. 2. 4 Implications for user acceptanc Introduction 1. 1 Electronic payment systems and their place in electronic commerce In the early 1990s the business and consumer world encountered a new way of conducting trade business, which was named electronic commerce (e-commerce). Over the years electronic commerce has evolved into a popular and acknowledged way of conducting business.While researchers are still trying to understand it and gauge its importance and turnover, e-commerce is changing and growing incredibly quickly, producing such extraordinary results from both business and customer perspective that its phenomenon cannot be overlooked by anyone who has ever thought of conducting business, whether in online or offline environments. With many organisations and people labouring in the field of e-commerce it has become very clear that ecommerce is here to stay and organisations and customers are trying to get maximum benefit from it.E-commerce has become especially important in two interrelated dimensions, namely business-to-consumer (B2C) and business-to-business (B2B) e-commerce. Business to-consumer e-commerce is enabling customers to have an increasing influence on products created, how products are customised, and how services are delivered. Ecommerce offers customers convenient shopping methods for products, information and services, electronic banking, and personal finance management.It is making it easier for consumers to find the desired products and services, match them more precisely to their requirements, and compare prices, (Vulkan, 2003). Several business models have been developed to support various customers’ needs, among them are online portals, content providers, transaction brokers and community creators. For business-to-business relations e-commerce facilitates the form of organisation where companies rely on suppliers and product distribution to respond more effectively to the changing market and customers demand and to achieve more efficient operation.This type of e-commerce relationships offers organisations the possibility to work in the direct contact with producers, giving more room for customization and control over business activities. This helps to reduce the costs significantly by removing ‘middlemen’ from the supply chain. Good examples of companies that employ this business model are Dell and Cisco, (Guttmann, 2003; Laudon & Traver, 2002). Consequences that e-commerce brings for business-to-business relationships are eliminating inventory, and operational and distributional costs that indirectly provid e customers with lower prices.E-commerce can help businesses to increase production flexibility by ensuring timely availability of components from suppliers, to improve quality of the products by increasing cooperation between buyers and sellers and reducing quality issues, to increase opportunities for collaborating with suppliers and distributors, and to create greater price transparency — the ability to see the actual prices on the market, (Laudon & Traver, 2002). In this way e-commerce responses to the customer demand of lower prices and greater convenience. 1. 1. 1E-commerce and electronic payment systemsThe most popular definition of e-commerce is based on the online perspective of the conducted business. E-commerce provides the capability of buying and selling products, information and services on the Internet and other online environments. As for any trading activity, the issue of safe and reliable money exchange between transacting parties is essential. In an e-comme rce environment, payments take the form of money exchange in an electronic form, and are therefore called electronic payments. Electronic payments are an integral part of e-commerce and are one of its most critical as pects.Generally defined, electronic payment is a form of a financial exchange that takes place between the buyer and seller facilitated by means of electronic communications. An e-commerce electronic payment is a financial exchange that takes place in an online environment, (Kalakota & Whinston, 1997). Electronic payment systems (EPSs) are summoned to facilitate the most important action after the customer’s decision to pay for a product or service – to deliver payments from customers to vendors in a most effective, efficient and problem-free way.The role of e-commerce electronic payment systems is pivotal for future of ecommerce, whose further growth depends on the timely development of EPSs. The development of new types of e-commerce purchasing relation ships and business models has created the need for new ways of money exchange and new EPSs. For instance, online auctions, (Ribbers & Heck, 2004), has spurred the necessity for personto- person payment systems to allow online money exchange between individuals. Certain types of information products and services require small payments and micropayments.Businesses would like to sell information content that costs very little, accumulating revenues with high turnover. E-commerce EPSs can be designed for selling specific types of products, for example for trading copyrighted online content, such as music. Another unforeseen earlier requirement is conducting e-commerce using wireless mobile devices, such as mobile phones or personal digital assistants (PDA). The need for paying with mobile devices has urged the development of payment systems for mobile electronic commerce, (Laudon & Traver, 2002).In addition, ecommerce provides the possibility to enhance current payment systems or substi tute them with online variants. The need for online payments was first addressed by using extant payment methods of the offline world for online payments. For example credit cards, originally intended as an offline credit instrument, have become the major payment instrument for ecommerce. As e-commerce and online purchasing grows, the weaknesses of credit and debit cards, and cheques are becoming more apparent. These limitations are discussed in section 1. . 2. The lack of the fit-for purpose payment mechanisms and infrastructure is one of the main restricting factors that hold back the growth and evolution of ecommerce, (Guttmann, 2003; Laudon & Traver, 2002; O'Mahony, Peirce, & Tewari, 1997). 1. 1. 2 Limitations of traditional payment systems in the context of online payments Three factors are stimulating the development of electronic payment systems: reduced operational and payments processing costs, growing online commerce and decreasing the costs of technology, (Kalakota & Whin ston, 1997).Reduction of costs is one of the major reasons for research and development of EPSs. The central impetus for ecommerce and e-business is to provide a more efficient service, primarily in terms of costs. In this light, paying online with traditional payment systems such as credit cards is rather paradoxical, given that credit cards are one of the most expensive of all available mainstream payment means for both end consumers and merchants, defeated perhaps only by paper checks, (Lietaer, 2002; Laudon & Traver, 2002). Several limitations of traditional payment systems in the context of e-commerce can be outlined.Existing payment systems, such as credit cards, are inadequate for retail customer digital business from the following viewpoints: Lack of usability. Existing payment systems for the Internet require from the end user to provide a large amount of information, or make payments using complex elaborated web site interfaces. E. g. credit card payments via a web site ar e not the easiest way to pay, as these require entering extensive amounts of personal data and contact details in a web form, (Kalakota & Whinston, 1997). Lack of security.Existing payment systems for the Internet are an easy target for stealing money and personal information. Customers have to provide credit card or payment account details and other personal information online. This data is sometimes transmitted in an un-secured way, (Kalakota & Whinston, 1997). In practice this happens even in spite of introduction of secure transactions mechanisms, such as Secured Socket Layer. Providing these details by mail or over the telephone also entails security risks, (Guttmann, 2003; Laudon & Traver, 2002). Lack of trust.Users tend not to trust existing systems with the long history of fraud, misuse or low reliability, as well as novel systems without established positive reputation. In the present situation, money loss by customers is quite possible when using existing payment systems, such as credit cards, for Internet payments. Potential customers often mention this risk as the key reason why they do not trust a payment service and therefore do not make Internet purchases, (Lietaer, 2002). Lack of applicability. Not all web sites support a particular payment method, thus limiting customers’ ability to pay.Credit cards work only with merchants who have signed-up to the services of the corresponding credit card company, and do not support direct business-to-business or interpersonal payments, (Kalakota & Whinston, 1997). Lack of eligibility. Not every potential customer with money and intention to pay can make use of certain payment methods. Not all potential buyers can obtain credit cards due to credit history limitations, low income or other reasons, (ibid). Lack of efficiency. Some payments over the Internet can be too small to be handled by existing payment systems, because of overheads included in the processing of payments and transaction.Credit cards are too expensive for effecting small payments and are unsuited for small transactions. The minimum fixed fee charged to the retailer for processing a transaction could even surpass the value of the goods sold, (Guttmann, 2003). High usage costs for customers and merchants. Existing payment systems use a rather expensive infrastructure to facilitate the payment process. Credit cards are very expensive for end users, not in the least because of the enormous and growing size of fraud, which amounts to billions dollars per year.This loss is invisibly re-financed by users by the higher costs of credit card services. In addition, credit card payments are still heavily paper-dependent. Most credit card bills are sent in a paper form to customers by post, and the bills are mostly settled by posting paper documents, like checks of giro payments, which makes the whole cycle rather expensive. As mentioned above, this means that resources employed in processing of credit cards transactions re nder them rather ineffective for small payments, because the high overhead of credit cards, (Laudon & Traver, 2002; Guttmann, 2003).In online credit card payments credit cards are not physically available for inspection by the payee, (this situation is referred as ‘card not present’). This imposes higher charges for merchants, because the chance of fraud is higher; see section 2. 1. 3 for more discussion. Credit cards have low finality of payments because users can refute or repudiate credit cards payments in certain situations. Moreover, financial regulations in certain countries, e. g. in the USA and the UK, place the risks of repudiation, fraud, or non-payment largely on the merchant and issuing banks, (Laudon & Traver, 2002; APACS, 2002).These issues make credit cards less attractive to merchants. Certain authentication schemes, e. g. Verified by Visa and SecureCode from MasterCard allow to shit fraud liability from merchant to credit cards issuing banks, and can ea se this burden for merchants, (see www. verifiedbyvisa. com and www. mastercard. com). However, end users can found themselves paying more for the cards issued by the banks to refinance bank’s losses due to fraud. There are more concerns related to the credit card use in online e-commerce that are responsible for reluctant users acceptance of credit cards and e-commerce.According to the report published by marketing research firm IDC, (Asmussen, Raschke, & Arend, 2002), almost half of European users of the Internet do not buy goods online because they either do not trust the Web merchants or fear their credit card details will not be secure. According to analysts, total credit card fraud rose to $4 billion in 2002 (i. e. $2 for every card issued). Industry estimates that the amount of online credit card fraud could be in the $5oo million range, (Laudon & Traver, 2002).Authorities believe that hackers have stolen more than one million credit card numbers from E-commerce sites. It would not be a surprise that many customers use their credit cards with reservations. A survey by Visa of 15 Banks from 12 EU countries in 2002 found that online credit card payments account for nearly half of all complaints. More than one in five of these came from people who had not even shopped on the Internet, but were billed for online transactions, (Philippsohn & Thomas, 2003). Privacy issues are also associated with the use of existing payment systems.There are cases when users’ identities (i. e. personal data such as credit card numbers, names and addresses) were stolen when hackers break into websites’ databases and obtain personal information of the customers. Fraudsters then attempt to use this information to open new credit and bank accounts using the stolen identity, (Philippsohn & Thomas, 2003). These and other issues with existing payment systems such as credit cards render them not very suitable for online payments. 1. 1. 3 The need for new payment systems designed or e-commerce Despite that electronic commerce is a growing phenomenon, its future development is, to a large extent, hampered by the lack of appropriate payment systems. Since most of business-to-consumer payments over the Internet are performed currently via credit cards, an admittedly problematic payment medium due to costs, security and trust problems, the need for new payment systems clearly emerges from the existing situation, (Lynch & Lundquist, 1996; Wayner, 1997; Laudon & Traver, 2002; Guttmann, 2003).Research and development in Internet-based payments tried to resolve this situation by conjuring numerous online EPSs, a good proportion of which has been put to use. This was possible due to the stimulating factors listed above, and in the first place due to the availability and reduced costs of the enabling technology. However, the new payment systems, purposely crafted for the Internet, also could not avoid their own share of problems. This has led to the r eluctant use of new online electronic payment systems, i. e. esulted in low user acceptance of newly introduced payment systems by customers, (see section 1. 2). User acceptance of electronic payment systems At this stage the situation with the development of online EPSs is far from ideal. A survey on electronic money developments by the Bank for International Settlement reports a rather low level of EPSs use, even in the most advanced countries, (BIS, 2000). According to the European Central Bank, the proportion of online payments among cashless payment instruments in the European Union is rather low.The report admits that although there has been a lot of discussion on the use of EPSs and their importance â€Å"it is still not a widely used medium†, (ECB, 2001). The lack of customer demand, the diversity of technological standards and the lack of support by financial institutions are mentioned among the reasons preventing the development of electronic payment systems, (ECB, 2003). Some experts estimate that about 85% of all Internet transactions are done with credit cards that were not originally designed for the Internet, (Philippsohn & Thomas, 2003).According to a survey by marketing research firm Jupiter Research, credit cards are still the dominant payment method for online purchases, accounting up to 95% of online transactions in the United States, (Jupiter Media Metrix, 2000). This demonstrates still low user acceptance of alternative electronic payment systems, designed specifically for e-commerce. 1. 2User acceptance: understanding and issues End user acceptance of such sensitive technology as money-circulating payment systems is the critical key aspect of the whole path of payment systems’ establishment.Without such acceptance no technology can successfully exist on the market, and payment systems are not an exception. According to Dillon & Morris (1996) user acceptance is â€Å"the demonstrable willingness within a user group to emplo y information technology for the tasks it is designed to support†. This definition can be enhanced with the understanding that the user perception of information technology (IT) can be influenced by objective characteristics of technology, as well as by human factors and interaction with other users and related parties.For example, the social information processing model (SIPM), (Salancik & Pfeffer, 1978), suggests that attitudes towards technology are influenced by opinions, information, and behaviour of others. User acceptance is a pivotal factor determining the success or failure of any information system project, (Davis, 1993). Many studies on information technology report that user attitudes and human factors are important aspects affecting the success of an information system, (Davis, 1989, Burkhardt, 1994, Rice & Adyn, 1991). The arguments in section 1. and in the following paragraphs suggest that this is the case also with EPSs. Besides SIPM, a well-known approach to e xplaining and modelling user acceptance is the Technology Acceptance Model (TAM), (Davis, 1989). TAM suggests that users formulate attitudes toward the technology that depends on whether they perceive the IT to be useful and easy to use. However, TAM does not take into account other factors that may be critical to user acceptance or rejection of such specific technology as EPSs, such as security, trust, privacy and involved risks.Extending the SIPM assumption, user acceptance of online EPSs could be affected by a number of factors and parties, creating a broader sense of the social context of EPSs in the Internet environment. User experience with an EPS can be influenced or manipulated by various aspects, such as marketing, publicity, the reputation of the bank behind the system, trust towards the company operating the system and technology behind the system, and convenience of the user interface, see also Guttmann (2003), Kalakota & Whinston (1997), Egger (2003). Figure 1. attempts to illustrate the social context in which parties and factors could possibly influence user perception and experience with electronic payment systems. These parties and factors should be taken into consideration when exploring issues of user acceptance of online EPSs. They are either required for a successful operation of a payment system (banks), its promotion (marketing organisations), or monitor and regulate its operation (government). For example, the company operating the payment service will have to address users’ concerns about security, privacy and trust.Users can be influenced in their experience by other parties than the operator itself, e. g. the bank or financial institution that facilitates the payment transactions, see Figure 1. 1. Customers can be influenced by the user interface, or by other parties involved in the payment service, such as technical partners. Since e-commerce EPSs operate in the Internet environment, the reputation and impression of the syste m can be easily communicated to other users via online communities, creating yet another social impact on the system.Therefore, social influences, e. g. opinions and behaviour of other users, like family and friends, and reputation of banks and the parties involved, should be taken into account for user acceptance of EPSs. This argument can be supported by above-mentioned SIPM, (Salancik & Pfeffer, 1978). Issues such as trust, usability, applicability, security, and convertibility are extremely important because they can influence subsequent decisions of people whether to use a payment system or not.There are several obstacles to user acceptance of EPSs: developers not only have to sell the service to potential users, they also have to convince the users to entrust their money to a third party institution, to rely on the payment system in their business and personal finance, and to use it frequently for convenience, reliability, specific applications, services and for a variety of o ther reasons. To achieve this high standard of user acceptance, the creators of a payment system should bear in mind user-related factors from the very beginning of the conception of the payment system.Designing for user acceptance of online electronic payment systems is thus the main issue put forward by research described in this thesis. An open challenge remains for designers and developers of novel Internet-based payment systems to meet user expectations, requirements, preferences and needs in design and operation of the systems. Resolving these issues is critical for the development and operation of new payment systems and future growth of e-commerce. 1. 2. 1User factors in payment technology The importance of user-related factors can be demonstrated in the example of the notorious problem of security of information systems.There are thousands of security mechanisms, matched with a growing number of hacks and security breaches, (Flynn, 2001, p. 61). However, the nature of secur ity issues is changing with the constant improvement of information technology. While security technology is becoming increasingly sophisticated and tamper-proof, experts in information security admit that user factors are the most important issues for security problems. The vast majority of all security issues in IT environments is caused or assisted by users inside organisations, rather than hackers and other utsiders. Security experts know many stories about people exchanging their passwords, or IT managers attaching notes with logins and passwords to their monitors, or about hackers finding these notes in the trash. To avoid this kind of mistakes, experts are talking about enforcing security policies in organisations, to be able to address user-related factors in security, (Flynn, 2001). Therefore, security practices have embraced user-related factors. This example helps to illustrate the importance of user-related factors in the design and operation of information systems.The f ollowing example illustrates a failure of a payment system due to neglecting to focus on user and market needs. The Chipknip â„ ¢ and Chipper â„ ¢ smart card payment technologies, (Nannery, 1998), were introduced in the Netherlands in early 90s. Both systems were intended to provide a way of paying small amounts in everyday transactions, which people would normally pay with cash. However, these two systems competed with each other for some time, being incompatible, so customers could not pay with the competitor’s card at certain shops, (BIS, 2001).Eventually, this created problems of interoperability and limited the user base for both systems. Another obstacle was that the card readers were installed in shops where people already had another method of payment – debit cards, which worked very effectively and efficiently and which were used by most people for all kinds of payments. In a way, Chipknip and Chipper duplicated the functions and applications of debit ca rds. On the other hand, the real need for Chipknip and Chipper for small payments at parking lots, vending, and public transport tickets machines was not met.A serious situation arose regarding the high costs of accepting Chipknip for merchants. As the result, the union of Small and Medium Enterprises in the Netherlands threatened to boycott Chipknip, (Het Financieele Dagblad, 2001). In this case, an important factor stimulating the development of EPSs was not met, namely the reduced operational and processing costs. Despite of a certain potential for uses acceptance of e-purse technology (Van Hove, 2004), this situation is changing slowly.All these issues led to a low acceptance of Chipper and Chipknip technologies. Chipper International decided to stop operations and support of Chipper in the Dutch market, (Libbenga, 2001; BIS, 2001); Chipper has fused with Chipknip, and while some issues have been addressed, the expected applications for this smart-card technology are yet to come . The example above helps to illustrate the complexity of human and marketing factors in the context of payment systems and their crucial influence on the eventual success of a payment system.Therefore, for successful design of electronic payment systems from the user perspective it is important to find out what user-related factors and systems’ aspects have the most direct impact on user acceptance and which of them can cause problems when neglected in design. 1. 3Research objectives 1. 4Research scope 1. 4. 1 The role of electronic payments in customer e-commerce activities The process of paying is an essential part of customers’ online buying activities. These activities are well described by the Consumer Mercantile Activities Model, (Kalakota & Whinston, 1997).The model comprises prepurchase interaction, purchase consummation and postpurchase interaction phases. The payment activity takes place within the purchase consummation phase, Figure 1. 2. â€Å"The purchas e consummation phase specifies the flow of information and documents associated with purchasing and negotiating with merchants for suitable terms, such as price, availability, and delivery dates; and electronic payment mechanisms that integrate payment into the purchasing process†, (Kalakota & Whinston, 1997). The buyer arrives to payment activities after identifying products of services to be purchased.The buyer and seller conduct then a mercantile transaction. In a mercantile transaction the buyer and the seller exchange information followed by the necessary payment. The payment methods they use should be mutually negotiated and agreed on (ibid). Therefore, in order to conduct a successful e-commerce mercantile transaction the buyer should at least be willing to use the payment method offered by merchants. From this viewpoint, user acceptance of e-commerce EPSs is critical for the completion of the purchase consummation phase and the whole purchasing process. It can be there fore bserved that the payment process and the user involvement in it are highly important for e-commerce activities. Scope of payment systems Business-to-consumer Payment Systems This research is focused on user acceptance of new payment systems in consumer ecommerceenvironments. The main focus of the presented work is therefore Businessto- Consumer e-commerce EPSs, which are designed with the main purpose to facilitate payments for consumer e-commerce. Taking into account the B2B systems would have made the scope too broad to handle within this research. Payment Systems designed for the WebCurrently, consumer e-commerce is done mainly via the WWW (Web) service of the Internet. The market for conducting e-commerce payments via wireless PDAs, mobile phones and other Internet services is still under development, (Bohle, 2001a), and therefore does not have a wide user basis and usage experience. Thus, in the scope are Web-oriented online e-commerce EPSs and Web e-commerce applications. Scope of payment tasks Because the scope of the defined business relations is Business-to-Consumer, the payment tasks in the focus of this thesis are related to consumer e-commerce and trade of goods and services.In these tasks there should be at least one 1) business party involved and 2) one physical person, who is conducting purchasing activities in an ecommerce environment. Scope of target activities These activities include those that are related to buying goods and services, and essentially represent consumer e-commerce. The scope of these activities is embracing a significant and, arguably, the most important part of the consumer e-commerce represented by B2C relations. Purchasing goods: tangible, require shipping, intermediated (by shipping companies). Purchasing information and software: intangible, immediate, not intermediated (by shipping companies). Purchasing services: intangible/tangible, not always immediate, can be intermediated (by service companies). The followi ng activities are therefore excluded from the scope because they are not in line with the defined scope of electronic payment systems, namely B2C consumer ecommerce. Consumer-to-Consumer (C2C) money payments and exchange.C2C payments do not belong to B2C e-commerce, (Figure 1. 3), e. g. personal auctions payments, debt settlement. Specific payment applications, for instance, gambling or adult-content sites. In this context the sites place specific requirements on B2C relations and userrelated factors, e. g. on privacy. Related activities Additional activities that have to be explored are the influence of pre- and postpurchase interaction phases, according to Kalakota and Winston (1997) on the user experience with a payment system on the whole.It is very likely that correct introduction,application and follow up of payment products and services in retail e-commerce are important for user acceptance of EPSs, and therefore the pre- and post-purchase interaction phases cannot be reaso nably disregarded when investigating the payment process. The user experience within these phases could affect their decision as to whether to use the e-commerce service at all, without even arriving at the payment process itself. Amount of money The minimum amount of money within the scope was chosen to be above â‚ ¬2.This means excluding small and micropayments. The nature of payment tasks in case of micropayments is different from higher amounts. For instance, users may wish to automate this kind of payments to avoid the need to authorize a payment of â‚ ¬0. 01 every time, while with bigger amounts they are likely to have control over each transaction. Furthermore, different researches show that at this moment there is little market for services that support small and micropayments, (Bohle, 2001b). In the focus are therefore small to medium sized payments, e. g. from â‚ ¬2 to â‚ ¬1,000.The upper payment limit is set to â‚ ¬1,000 to indicate that highest amount with in the scope of this research. The suggested range of payment amounts is typical for the current status of the domain and is similar to range of payments with existing offline EPSs, like credit, debit and smart cards, (Lelieveldt, 2001; Bohle, 2001a). Larger payments can be expected to raise different user acceptance issues, because of more user attention to risks, security, efficiency and other aspects of transactions with such amounts, (Humphrey, 1995). 1. 4. 2 Approach and methodologyThis research employs practices of the multidisciplinary scientific field of Human- Computer Interaction in order to research issues of user acceptance and user-related factors in online e-commerce electronic payment systems. Specifics of HCI research The nature of Human-Computer Interaction is such that it has to employ various scientific, research and design disciplines and cross borders between them for successful research. HCI is different from other disciplines in that it studies interaction bet ween people and artificially created artefacts, and not an independent natural phenomenon, like in other disciplines.This complex nature of HCI and its research goals compel researchers to adopt both inductive and deductive approaches to science, as described in Mackay & Fayard (1997). In the deductive approach the purpose is to generate a set of hypothesis that can explain real world phenomena. The scientist proposes a theory about a phenomenon, and formulates a hypothesis to be tested in an empirical research. In order to verify the hypothesis, an experiment is conducted, and with the revision of its results the theory is re-examined and an updated hypothesis is created.This approach is employed by the experimental study of this thesis. The inductive model aims to construct the most precise description of the real world, as opposed to explanation. The scientist observes phenomena in the real world without having a preconception or theory of what they are looking for. Then the scie ntist attempts to create a model of the world that explains the phenomena. By returning to the real world the model can be validated and changed if there are contradictions between the model and the studied phenomena.The qualitative study in this thesis employ this approach for requirements elicitation and creation of the design recommendations. The research process applied in this thesis, aimed to gain validated design knowledge, can be described as an iterative circular or spiral movement. This process is best described by Figure 1. 4, adapted from the work of Rauterberg (2000). This approach asserts to combine â€Å"analytical strength of empirical validation methods (e. g. , observation, experiment, inquiry, etc. with the synthetic strength of system design†. This triangle structure conceptualizes the three most important components of HCI research: â€Å"(1) the collection of ‘design relevant knowledge’, (2) the ‘interactive system’ in differen t possible representation forms, and (3) the several possibilities to represent a ‘user’ for (empirical) validation†, (ibid). The following sections describe how using diverse research activities helped to combine these components in the research reported in this thesis. Outline of the thesis The diagram in Figure 1. illustrates a combination of the research and design activities of this thesis. These activities included acquiring design knowledge on ecommerce EPSs, applying the knowledge to a commercial payment system designed by an industrial party, and empirical validation of the design knowledge. Chapter 2 presents a survey of literature on EPSs, which was necessary for understanding EPSs. The outcome this survey is a classification and a set of characteristics of EPSs. The importance of the characteristics of EPSs had to be confirmed with potential users of EPSs.Chapter 3 describes an investigation into the importance of the characteristics of EPSs to end use rs by means of a survey of consumer attitudes towards EPSs. The user survey helped to identify what characteristics should be given more attention in the design of EPSs. However, the knowledge about the importance of the characteristics did not inform how they should be realised in design of EPSs. To acquire a deeper understanding of these issues, a qualitative research in the form of a diary study was conducted, Chapter 4.The diary study aimed to understand how EPSs are experienced and perceived by users in the context of actual use and how EPSs can be designed to meet users’ needs. As the outcome of the diary study, implications for design of Internet-based payment systems have been derived and formulated as design recommendations. To ensure that the application of the design recommendations benefits user acceptance of EPSs, an experimental study was conducted, that is described in Chapter 5. This study helped to substantiate the validity of a subset of the design recommend ations.It was hoped to find the ideal situation where it is possible to apply the hypothesised design knowledge to a real-life system, rather than testing them in the laboratory, in order to achieve high realism of the results. Due to the participation of industrial parties, this situation has become available. The experimental study involved two parts: 1) a real-life EPS was redesigned in accordance with the proposed DRs, 2) an experimental comparison of the redesigned system with the old one has indicated improvements of user attitudes in several aspects, thus demonstrating the validity of the design recommendations.Chapter 2 2. 1 Classification of payment systems 2. 1. 1 Introduction This chapter presents a framework for classification and characterising of electronic systems that facilitate paying in an e-commerce environment. This framework is an attempt to describe and to relate the wide variety of the payment systems, with more than 150 payment mechanisms invented worldwide. This chapter also presents a survey of literature on EPSs, which has been a necessary step for understanding payment systems. The outcome of this phase of the research is a classification and characterisation of electronic payment systems. . 1. 2 Primary classification of payment systems The principal classification of EPSs is based on the form of money representation and the principle of money transfer. Existing payment systems can be divided into two groups: electronic cash mechanisms (or electronic currency) and credit-debit systems, (Medvinsky & Neuman, 1993). Electronic cash resembles conventional cash, when parties exchange electronic tokens that represent value, just as banknotes and coins determine the nominal value of conventional cash money.The credit-debit approach in the context of electronic payments means that money is represented by records in bank accounts, and this information is electronically transferred between parties over computer networks. Another terminologic al approach offered by Wayner (1997), based on the type of information that is exchanged, distinguishes between ‘account-based’ and ’token-based’ systems, which, respectively, corresponds to credit-debit systems and electronic cash in the definition of Medvinsky and Neuman. A similar distinction is found in Camp et al. 1995), who distinguish between notational and token forms of money. A different view on classification of EPSs is offered in Asokan et al. (1997), where payment mechanisms are classified based on the temporal sequence of money flows between the payer and receiver of the payments. Various attempts of classification of payment systems are also reported in Kuttner and McAndrews (2001), and Schreft (2002). These references are aggregated into the classification of electronic payment systems, illustrated in Figure 2. , which was first reported in Abrazhevich (2001b). The figure illustrates the further classification of EPSs, described in the foll owing sections. It provides examples of EPSs in each subcategory; some of these systems are described further in the text. The figure illustrates if the systems are only theoretical developments, that were only tested as limited pilots, and that have never been implemented for the commercial use. Payment mediation services that aggregate various EPSs in one payment infrastructure are described in section 2. 1. 5. 2. . 3 Further classification of account-based systems In the group of account-based systems, one can distinguish between 1) generic online EPSs that use simple account-based model for serving Internet payments, 2) systems that use the debit and credit cards model, and 3) specialized payment systems that, for instance, were designed for trading content online such as music. Some researchers consider credit cards systems as a separate group of payment models, (Medvinsky and Neuman, 1993), others consider them to be a variant of the credit-debit type.This classification adopt s the latter distinction. The basic principle of account-based systems is that the exchange of money between accounts is maintained by a payment service provider. Users can authorize charges against their EPS accounts, as they would do with usual bank accounts, though the ways of authorization are different for various systems. With the debit approach, the customer maintains a positive balance of the account and money is subtracted when a debit transaction is performed.With the credit approach, charges are posted against the customer's account and the customer is billed for this amount later or subsequently pays the balance of the account to the payment service. One of the most widely used systems for electronic payments is the debit card, which as the name suggest, is a clear example of a debit system, (Evans & Schmalensee, 1999). Debit cards combine the service of Automatic Teller Machines (ATM) cards and cheques. When customers pay with a debit card, the money is automatically de ducted from their checking bank account.In contrast with the credit cards, the spent money comes from the bank account directly. Many banks issue a combined ATM/debit card that looks like a credit card and can be used in places where credit cards are accepted. In this case, when users pay with a debit card, the payment will still be processed as a debit transaction. Other payment mechanisms that use the credit-debit model are Yahoo PayDirect, Pay- Pal. com, and theoretical payment projects like NetBill (Sirbu and Tygar, 1995), and NetCheque (Medvinsky and Neuman, 1993).A special group of account-based instruments that are currently in wide use are credit card systems. A great part of trade on the Internet is done using credit cards and these payment systems should not be overlooked. The biggest advantage of this approach is that the customers, who have already received credit cards offline, can use them directly for online payments. This also results in high scalability, as no addit ional installations are necessary. Credit cards provide a large customer base for merchants who accept them, thus their applicability is quite high.There are critical security issues associated with the use of credit cards in an online environment. When using credit cards over open networks, encryption mechanisms, such as widely used Secure Socket Lauer (SSL), in principle can prevent a hacker or eavesdropper from intercepting the customer's credit card number. There are some schemes that even hide card numbers from the merchant, providing protection against intercepting the card details from merchant databases or against fraud by the merchant. Nevertheless, these incidents happen regularly (Caunter, 2001; IFCC, 2003; Wales, 2003).It is important to note, however, that without some form of customer registration with a payment service or substantial proofs of identity, credit cards can be very risky to pay with and can be easily abused. Even encrypted Internet credit card transaction s do not include the owner’s signature, and anyone with knowledge of the customer's credit card number and expiration date can create a payment order. An important aspect of credit card payments in the online world is referred to as card-not-present (CNP) transactions.CNP transactions are those where neither the card, nor its holder are present at the point of sale, e. g. in orders by mail, telephone, fax or the Internet. The buyer does not have to demonstrate the physical presence of the card, or the card and the buyer do not have to be co-located. This imposes issues with card validation, security and fraud. CNP transactions are widely used in mail order/telephone order purchasing (MOTO) which also do not require co-location of buyer and seller. To secure transactions of this type, credit card companies ask for additional information, such as name, address, etc. that can be used to verify their identity, for instance, if the ordered goods should be mailed to the billing add ress associated with the credit card. Other information often required is the additional 3-4 digits code, printed on the back side of the card and not present in the credit card number. Merchants ask the customer to read this code from the card in a card-not-present order. The merchant then asks for verification during the authorization process. The issuer (or credit card processor) validates the code and relays the decision to decline or approve the transaction to the merchant.Nevertheless, the MOTO transactions incorporate limited protection against credit card fraud. Credit card CNP transactions could sometimes employ even less identity verification information. Since no signature involved in CNP transactions, the buyers can opt out of any order, if they claim they did not agree with the purchase, (O'Mahony, Peirce, & Tewari, 1997). The charges for orders cancellation are borne by merchants in the form of the higher costs for processing of CNP transactions. In addition, merchants could be liable for the whole amount of the disputed order, (APACS, 2002).Furthermore, because online payments are administered as standard credit card charges, the costs are too high to make this method unsuitable for payments below â‚ ¬1 and hence inefficient. Credit card companies are constantly lowering the minimum amount that can be paid to enable small payments, but charges for merchants still remain high. It should be also taken into account that cards are issued by banks and organisations, which after a screening, decide whether they can issue credit cards to certain customers.Customers with a low income, an imperfect credit history, might not be eligible for a credit card. This may restrict the customer base to a certain degree and limit user and merchant acceptance of credit cards as a payment method. 2. 1. 4 Further classification of electronic cash systems Electronic cash is stored in a digital form and serves as a cash substitute for the Internet or other informatio n systems. Electronic cash represents value in some form and can be spent with merchants, who deposit money in their own accounts or can spend it in other places.It can be represented by electronic ‘bills’ and ‘coins’, certificates, packets of data, or electronic tokens in one form or another. When using electronic cash systems, customers purchase electronic digital tokens from the issuing company using a conventional payment system, e. g. credit cards, electronic checks, or even paper currency (for example, via a reverse automatic teller machine which accepts cash, or when purchasing prepaid cards). Some of the systems allow converting electronic cash back into another form of money (Medvinsky and Neuman, 1993), which is very important for convertibility of the systems.Another distinction amongst electronic cash systems is between those that use smart cards for the storage of tokens and those where tokens reside only on user’s accounts and computer networks. The former are often called electronic purses (e-purses), the latter are sometimes addressed as ‘online cash’ or ‘Web cash’. Examples of e-purse electronic cash systems are CAFE project, (Boly et al. , 1994) and Mondex (Martin, 1994). Tokens in these systems exist and travel in the computer environment,for example, on a currency server or customers’ hard disk.Mondex is a smart card payment system that was designed to enable person-to-person as well as Internet payments, (Van Hove, 1999, p. 141). The card can be used to make small payments, store personal and application-specific information, and serve as a telephone card. Web cash representatives are E-cash, E-gold, Millicent (Glassman & Manasse, 1995), PayWord and MicroMint (Rivest & Shamir, 1996), and NetCash system (Medvinsky and Neuman, 1993). It has to be noted that these systems are mostly theoretical work and have not been implemented on the market. Systems that employ smart cards e. g. Chipknip, Chipper in the Netherlands, Proton in Belgium, and Visa Cash can be also placed in the category of electronic cash and also called e-purses, however, in representing money they hardly use tokens. In this case, the numerical data stored on the card is changed when a payment takes place. Judged by the principle of the operation and use they act like electronic purses. The value is stored on a card and if the card is lost, the money is gone, in a fashion similar to cash. It has to be noted that smart cards like Chipknip are not principally designed for Internet payments and are used mainly at point-of-sale terminals.There have been nevertheless pilot tests of facilitating paying over the Internet with Belgian Proton smart card EPS, but the use of Proton on the Internet is now discontinued. An important development towards standardisation of e-purses is establishing Common Electronic Purse Specifications with the goal to define requirements needed to implement a globally i nteroperable electronic purse program, while maintaining full accountability, (see www. cepsco. org). CEPS, which were made available in March of 1999, outline overall system security and certification.Being established by the key parties in electronic purse cards, and supported by organisations from over 30 countries, CEPS paved the way for the creation of an open global electronic purse standard. For cardholders it means that they will be able to use their electronic purse cards domestically and internationally with the knowledge that the card will be accepted wherever the acceptance mark is displayed. Visa Cash is an example of CEPS implementation, (see www. visa. com). Prepaid card EPSs can be also included in the same category of electronic cash, because the principle of their work resembles the use of e-purses, such as Chipknip.Users can buy a prepaid card for a specified amount. Prepaid card systems are specifically designed for Internet payments. Users can pay with a prepaid card by entering on merchant sites the card’s unique number, which corresponds to the card’s nominal. The value of the card is decreased by the amount paid to the merchant. To better understand what issues that surround electronic payment systems, it makes certain sense to introduce a definition of payment mediation services, which use existing payment systems as mediators to provide extra services. 2. 1. 5 Payment mediation services vs. payment systemsTo further refine the focus of this research, we have to make one important distinction, which is between payment mediation services and payment systems. This distinction particularly makes sense in the context of electronic and Internet payment mechanisms. Payment mediating services have appeared as a response to the imperfection and inefficiency of current payment systems for the Internet. They extend the services of the existing systems and operate as mediators between merchant, payment systems and users. Their goal is to help merchants to accept as many payment systems users could possibly want to use when paying over the Internet.In payment mediation services the existing payment infrastructure from many payments providers is aggregated to provide broader services, or to overcome shortcomings of the available payment options. Figure 2. 2 describes the relations between merchants, EPSs and payment mediation services. The difference between payment mediation services and payment systems can be summarized in that a payment mediation service is as an intermediary between payer, business, and payment system, while there is no such middle tire for payment systems. The payment process in this case is transparent to the users of a site.A mediating service provider ‘intercepts’ payments from users, processes them, and credits the account of the owner of the site when the authorization and transactions are completed. For example, there are numerous companies among mediating services provid ers that facilitate acceptance and processing of various credit cards. A special class of payment mediation services has emerged, that provides convenience for paying bills for businesses and end users. An example of payment mediation services is providing bill payments for end users and companies, for instance, utilities or telephone bills.Over a Web front-end provided by the billing systems, customers and companies can pay bills that are normally paid offline by paper cheques or bank transfers. Some systems even provide additional services such as automated accounting merged with online payment facilities. Syndication of payment services Another angle on payment mediating systems is viewing them as a form of syndication of payment services in an online environment. The notion of syndication originates from the entertainment world, where it forms the fundamental organizing principle.With the advent of the ‘new economy’ and the use of the power of Internet distribution, syndication can be recognised as an emerging model for e-commerce. In this context syndication would mean selling the same information to many different customers, who render and integrate it with other information in various value-adding ways and then redistribute it. According to this principle, businesses involved can play three or more roles: originators who create original content; syndicators, who collect and package digital information to meet specific customers’ needs; and distributors who deliver digital content to customers, (Werbach, 2000).In the context of online payments, payment mediation services can be seen as syndicators of the original services offered by payment systems. Payment mediation services syndicate e-commerce EPSs, offering merchants the way to accept a variety of payment systems. Examples of payment mediation services A good illustration a payment mediation service is Bibit Billing Services (www. bibit. com). This Dutch company specializes in Int ernet payment and billing services. The service supported about 70 payment methods from 18 countries by 2004.When customers want to pay on a Web site of a Bibit’s client, they select one of the provided payment methods. The payment process goes as follows: 1. A customer selects products on sale in a virtual shop. 2. For payment, the customer is then redirected to Bibit Payment Service. 3. Within Bibit Payment Service, the customer can select a payment system he or she would like to pay with, provided it is supported by Bibit. The customer makes the payment with the system of his or her choice. 4. After a successful payment, Bibit notifies the merchant that the order can be shipped and transfers the money to the merchant.The processing of the transactions, which is conducted entirely by Bibit, is therefore transparent to the customers of the site and the client company. The company business model, which utilizes a number of payment systems, relies on providing extra services t o facilitate payments, and therefore it fits into the definition of a mediating system. It is interesting to note that the service allows the use of micropayments, by accumulating charges for products like news, articles, stock and research reports, online games and charging users on a subscription basis.Examples of other payment mediation services are Orbiscom (www. orbiscom. com), iBill (Ibill. com), PayTrust, (www. paytrust. com), DataCash (www. datacash. com), PayNet (www. paynet. ch). Systems that conceal real customer’s credit card numbers by providing them a unique temporary card number for each transaction have gained certain popularity among payment mediation services. The customers can then use this unique number in a normal credit card transaction, and their real credit card will be charged.This temporary card number expires after every transaction and would not be approved for the subsequent use. The data of real credit cards of customers is not exposed to parties online in online transactions. In this case the payment mediation services are using credit cards infrastructure to provide extra security and anonymity (ABN-Amro e-wallet, O-Card by Orbiscom. com). By using these measures merchants expect to accept more secured payments without changing the way shoppers pay and without changing existing payment processes or infrastructure.The research summarized in this thesis is concerned mainly with payment systems and not with mediating solutions for existing payment infrastructure. Payment mediation services on the Internet emerged because of the absence of relevant payment solutions or have problems that prevent their successful use by merchants and users. Many of EPSs are probably transitory systems, unable to completely solve problems that appear in the context of the Internet paying process, because the problems originate in the payment systems they use; see discussion on PayPal. om in section 2. 4. While syndication of EPSs by payment med iation services provides in the end a better level of service than individual EPSs they use, it also places the payment mediation systems out of the scope of this research, which is exploring ways to design better individual EPSs. 2. 2 Identifying the characteristics of payment systems As observed in the example with Chipknip and Chipper in the previous chapter, there are a lot of factors that determine the success or failure of payment systems, and not all of them are of technical nature.As mentioned already, user acceptance depends on many issues, such as consumer choice, preferences, advertisement, a state of the market, etc. The discussion of diverse aspects of electronic payment systems can be found in many works on development and research of payment systems. Attempts to classify and describe the requirements and characteristics of payment systems such as security, reliability, convertibility, efficiency, traceability, and others can be found, among others, in the works of Med vinsky & Neuman (1995), Langdon et al. (2000), Lynch & Lundquist (1996), Wayner (1997).It has to be noted however, that these studies are mainly focused on technical aspects of electronic payment systems, which is not the only facet that is important in this field. Below the characteristics of payment systems are extended to account for user-related aspects of EPSs. These characteristics can be also used for assessment of payment systems, as described further. The list of characteristics of payment systems Anonymity, privacy This characteristic reflects the desire of users to protect their privacy, identity and personal information.In some transactions, the identities of the parties could be protected by anonymity. Anonymity suggests that it is not possible to discover someone’s identity or to monitor an individual's spending patterns. Where anonymity is important, the cost of tracking a transaction should outweigh the value of the information that can be obtained by doing so . As an illustration, when a customer pays with a debit card, the purchase is registered at the vendor and bank’s databases. It is possible to find out what amount was paid and what actually was purchased. Thus debit card payments are not anonymous.On the contrary, when one pays with cash at a shop or in a marketplace, no one can say by examining the cash that money came from the payer, as there is no direct information about this payer’s personality associated with the banknotes. Thus, cash is an anonymous payment system. Currently, the right of users to choose how their personal information is disclosed is viewed as privacy. There are privacy laws in several countries that limit usage of personal information by banks, authorities and other parties, including online businesses and payment systems, like European privacy acts or similar directives, e. . European Commission Data Protection Directive. Applicability The added value of a payment mechanism is dependent upon how useful it is for buying something. Applicability (or acceptability, as it is often referred in literature, (Medvinsky & Neuman, 1995)) of a payment system is defined as the extent to which it is accepted for payments at points of sale, or at online e-commerce sites in this case. For instance, cash is accepted widely and virtually everywhere in the offline world and thus has a very high level of applicability.Debit cards and credit cards have a very high applicability, as one can pay with them in a variety of places. The applicability of a payment system may vary from country to country. For example, in Germany and in the Netherlands cheques are no longer common due to the steady growth of other payment methods. However, in the UK and the USA cheques are still quite a common method of payment and the level of their applicability is quite high. Authorization type Authorization type is referred in the literature as the form of a control over the validity of transactions, (Lynch and Lundquist, 1996; Asokan et al. 1997). The authorization type can be offline or online. Offline authorization means that users of the system can exchange money while not connected to a network, without a third party mediating for the transaction. Paper cheques are an illustration of offli