D31VR Value and Risk Management Assignment Sample
Value Management at RIBA Stage 1
The ideas of quality management as they apply to build projects and the function of the professional surveyor. Throughout this application, value defined as the ratio of advantage (outputs) to expenditure or effort (inputs) necessary to obtain it. Both process improvement and process improvement engaged with raising this ratio, although they aredivided by time and size. The essay will clarify where notions apply to both content management and business building, and where the latter diverges (Arazet al. 2020). Significance is a comparative notion as well; various stakeholder groups would have varying perspectives on something. The advantages and expenses described above, in an instance, will frequently arise at different levels of the value chain or fluctuate depending on the needs of individual members of the project team.
Several of the responsibilities of program management, supply management procuring, and overall purchasing are to address these mismatches holistically and transparently so that if the enterprise benefit the entire gives value to its customers (Behzadiet al. 2018). Professional assessors play an important role in assisting the whole team in managing value throughout the projects and identifying the economic means necessary to accomplish project outcomes. The prominence of this function stems partially from the quantitative consultant’s position as the primary professional engaged with contract sum, as well as from the consultant’s position from outside conventional building disciplines and indeed the project manager (Bogle et al. 2019).
The analysis section contains information on both types of materials. Management of earned value folks needs to understand that earned value management (EVM) is not the same as quality management or design development (Britton, 2017). EVM is a strategy used in construction projects, such as by freelancers, to monitor the construction process in a specified and honest fashion and determine whether completed promptly. It accomplishes this by evaluating three separate measurements to evaluate if the operation is forward of or just behind its schedule and/or cost estimates. EVM measurements include the anticipated value of work throughout time (the agreed-upon program and cost schedule), the manner to achieve the objectives of finished work, and the true amount of finished project (Ekanayakeet al. 2017). Because professional surveyors, particularly project team members, contribute significantly to EVM, they must understand the distinction between worth management and product engineering.
Value is a basic concept – it is the proportionality between both the value obtained from a way to proceed and the expense or effort necessary to attain it. This concept is ubiquitous, yet explainedquite clearly in major and little procurement and build decisions (Keers and Van, 2018). The value may be a wide term to apply to something like a project, however, the examples below serve to demonstrate the concept (Leo et al. 2019). The destruction and reconstruction of a citycenter office tower are valuable to the investor if the enhanced rents from either the new structure balance the expenses of construction and operation, as well as the reduction of current rent during rehabilitation (McDowall, 2021). A pricier but more resource development services system, such as heating or illumination, provides value to the customer if somehow the discounted cash value of operating savings surpasses the increased overhead investment (Yu et al. 2020). Total value may be diminished if a physical structure reduces the value or – and so, therefore, raw materials needed in – each column and beams, but necessitates far more sophisticated connections including site supervision, which raises construction costs. If a certain item of vegetation replaced with a cheaper version with a lower life expectancy, the value diminished. The final illustrative steps in the preceding list demonstrate how important the entire thing may differ beyond the value felt by individual contractors.
A more prefabricated modular design, for example, may result in lower material prices for something like the design professional, but the constructor or manufacturer will bear the increased expense of the numerous connections that this requires. Similarly, while a construction company may experience cost savings by acquiring a less expensive piece of hardware, the property manager will notice greater overhead cost as little more than a byproduct of much more subsequent employment. Understanding the spectrum of repercussions that any single action may have, specifically their financial ramifications, is one of the core issues in content management and business engineering.
In the United Kingdom, assumed that VM occurs during the initial phases of a project because once drawings and parameters have produced, the same technique becomes VE. In practice, the phrases used simultaneously, so the surveying should be informed. It is essential to comprehend what they do have is widely accepted: a concentration on removing extraneous expenses from the enterprise or resource, or even from technologies, elements, or processes linked with it, in order to enhance the benefit-to-cost ratio. It maintained that this would already be included in the contractor’s day-to-day duties. The goal of the exercises is not to save expenses from a venture by decreasing its scope, deleting work packages, or lowering the requirement just under the standard of performance expected by the customer.
There still are two primary positives to VM for something like a client organization, and subsequently, a resource owner, which ensures they can play a significant role on large-scale projects. Even when the scope of the VM operation indicated in this guideline note substantiated, VM should have been on the schedule at frequent project sessions so that chances to suggest improvements from both construction and maintenance are available. In this view, several of the primary goals of all procurement and build experts will already be to provide value. One advantage is that project expenses reduced by focusing precisely on the development’s functional needs and then examining what alternative techniques might be used. This focuses on extraneous expenditures, which might have crept into the design document because of unquestioned assumptions. For illustration, an implementation for a 150-person office complex might well be £500,000 under budget. One rationale for this must be because everything constructed with one desk per employee member in mind since that is what previous and present work patterns entailed. However, a review of the organization may show that stronger IT and more adaptable staff management might enable increased usage of cloud computing, implying that the facility could continue to function with only 100 standard workstations or 20 hot workstations. A redesign based on this premise, with shorter gross floor space and lower fit-out expenses, might bring things back on track. Traditional cost-cutting strategies may have instead concentrated on minimizing the overall quality of something like the decor, deleting the change management program, and decreasing the amount of meeting spaces, without taking into account the underlying services necessary. Although these improvements may get things back on track, the final structure will not suit the demands of the occupants. The second major advantage is that extremely early evaluation of design, design, and construction, and supportability can start encouraging development teams to discuss topics in a consistent fashion and seek quite efficient and productive methods of accomplishing the considered necessary outcomes of the project, thus improving resulting portfolio management. For illustration, upgrading pneumatic cylinders in some kind of an intermediate- to standard size structure with quicker traction lifting may allow for a reduction in the number of lifts while also simplifying construction by reducing the requirement for a subterranean hydraulic actuator. LED bulb specifications in stairways and increased rooms, amongst many other considerations, may minimize the recurrence and hence the expense of lighting replacement. Although the contribution to the effectiveness of VM are now the developer’s client including stakeholders, the personnel of something like the project management team benefit within the interim since they may explore all possible better approaches to attain the intended goals.
In other exploratory improvement areas, there is no certainty of how far productivity expanded at the commencement of a VM assessment. Experiences is generally the sole indication that the activity will be successful. For the fundamental and frequently very challenging challenges handled in VM, a comprehensive perspective is required. This determined by factors including consumer demands, expenditures, and development limits. Another issue is determining the optimal path for a new connection street, which would be determined by modeling approaches, land costs, and community-based involvement. These kinds of issues nearly usually necessitate a classroom technique, and they frequently necessitate the independence of the external facilitators.
Value Engineering the Design at RIBA Stage 4
Existing Cost Saving Techniques in Construction
Value engineering is one of the most important parts of construction that used for reducing the estimated cost for the building. The building cost is usually one of the most expensive costs and various sectors used for reducing the ultimate cost of the project (Ximenes and Hannon, 2018). This section has described the costs that can be reduced overall cost for the project.
The cost of this project estimated up to €4,763,653. This includes the measured work that is mostly the highest cost of this project at stage 4; it is over 50% of the total budget. The prime cost sums up the next highest percentage of the total cost. It reduced to reusing several materials from previous sources.
The substructure is the base of the construction and it needs to be of the best quality to support the building for a long time. The building structure cannotchange after the construction is finished and restructuring will be much more expensive for the client. This construction should last for a long time. These external walls should be able to support the building and expected that the building will have a fireplace and wall wardrobes the electricity lines will go through these walls. The walls should be of high quality and external walls should be able to sustain the building through natural calamities (Renshaw et al. 2020). This also depends on the strong base of the house. The external windows and doors are the connection between the inside and outside of the house. The doors and windows should be able to stop trespassers and intruders from entering the house (Sharma et al. 2020). This is one of the main security settings of the house. Apart from unwanted visitors, the doors and walls should be able to insulate the house during winter and those should be smooth for letting the air pass (STUDENT, 2017). This structure is one of the most essential structures for the house and it will be very essential for safety.
The finishing of the house is the base of attraction for the owners and the guests. This section can be compromised at the base as this modified by the owners. The preference of finishing varies with the clients. Although cheap materials for the finishing can lead to corrosion of the wall and floor in case of soft damage (Wei et al. 2021). The main purpose of the finishing is to make the house presentable and eye-catching for a viewer. The fitting and furnishing costs will also reduce and the fittings can be temporary. This will let owner set their house as their preference while reducing the cost for the project (Willumsenet al. 2019). The sanitary application is one of the most important parts of the construction. It is one of the most important gifts of technology and its cost is essential to keep the house clean and fresh. The basic installation costs should not compromise, as those are important for the people to be able to complete their regular chores in this house.
The Space heating and air conditioning can shorten and reduce the cost estimated for this section. The internal walls do not need to support the buildings and it needs to be modified according to the demand of the client and these changes can also be induced to create a wall structure based on the fact that this will be changed over time. Using drywall will reduce the cost estimation of this project and it modified as per requirements. This building is a 3-storybuilding, the stairs used for changing floors, and the cost of installing a lift reduced. The electrical installation is also a non-changeable cost and it is one of the most essential parts of the house. The fuel installation cost reduced as it modified later. The protection of fire and lightning is one of the most essential security parts and it cannot compromise. The estimated cost is essential for safety of the people residing in this house. The commissioning service and management need to compromise and this will be able to reduce the cost of this building. The internal doors can compromise for the materials as this only separates the rooms this will be easier to reduce the cost. The services charge cannotcompromise as the design and services are dependent on this.
The overall cost estimation can be reduced by 2% without compromising the ultimate quality of the building. The main building needs toconstruct in a manner that it can use for a long time and this will be the main purpose for the construction of the building. The estimated cost reduction is about €95273. This cost reduction will be one of the most essential parts so that this process is one of the leading reasons to help the company deliver a construction building with less cost.
The finishing of the house is the main point of interest for both the owners and the guests. This part may jeopardize at the base due to the owners’ ability to modify it. Clients have different preferences when it comes to finishing. Although low-cost finishing materials might cause corrosion of the wall and floor in the event of gentle damage. The primary goal of finishing is to make the property attractive and appealing to a viewer. Fitting and furnishing expenditures will reduce as well, and fixtures can be temporary. This allows the owner to set their house to their liking while lowering the project’s cost. The use of space heating and air conditioning can shorten and lower the expense of this part. Installing drywall will minimize the project’s cost estimate and allow it to adjust as needed. This is a three-story structure, and the stairs will use for communication, lowering the expense of constructing a lift. These installation changes can reduce the cost of the building up to 3% of the estimated cost.
REPORT ON VALUE AND RISK MANAGEMENT ASSIGNMENT
1.0 Introduction
During project execution, project control procedures and records become crucial and indispensable items for managers and other group members in construction procedure. They serve the purpose of keeping record of financial transactions as well as indicating the progress and problems associated. Herein we will consider the tasks associated with utilization of resources, account monitoring and control in due course of the project. Including aspects in this discussion the uses of accounts information and its interpretation which is not so straightforward till completion of a project.
2.0 Discussion and analysis
2.1 Risks in construction project
Risk identification is the process of check listing of the key potential risks and re-evaluation of those processes which might be repeated in the future (Renshaw, et al. 2020).Some specific industries and companies create lists of the key risks based on experience from the past which helps in future identification of some specific risks on the list created to expand the thinking capacity of the team and can be a special source of help to the entire project team.
Identifying the causes of risk categorically is a different method to explore the potential risk hazards on a project .The following concludes the aforesaid mentioned categories of potential risks:
-Cost analysis risks
-Client based risks
-Financial risks
-Technology related risks
-Schedule making risks
-Contractual based risks
-Political risks
-Weather dependent risks
-People’s risks
-Environmental risks
They can also use the framework as work breakdown structure for the development or creation of risk breakdown structure (Willumsen, et al. 2019).A risk breakdown structure is into organization of the risks table wise that are identified in categories with increasing levels of risk details to the right. Furthermore, the people’s category can be broken into different forms of risks associated with the mass people’s category. Examples include people’s risk of not finding or unable to find the skills in necessity for execution of the particular project or sudden unavailability of skilled people at the project site.
Example: Risk’s in Mohan’s move
In Mohan’s move, Mohan makes a list which consists of the errors in his project and uses the work breakdown structure for guidance (Shah., 2018. ).The below mentioned list consists of a partial list of planning of RBS.
| Task | Risk |
| Contact Den and Carl | -Den backs out
-Carl backs out -No common appointment date available |
| Host planning lunch | -Restaurant closed or fully packed
-Ethnic food wrongly choice -Den or Carl having preferences in regard to having specific food items due to allergies |
| Development and distribution schedule | -Printer without toner
-Paper exhausted |
Table 1: Risk Breakdown Structure (RBS)
(Source: Self created)
This results in clear understanding where risks are mainly located and this theory helps in identification of risks which can be restrictive as well as less creative in identification of all sorts of risks by the project team which is not easily found within the WBS in the form of risks.
2.2 Risk register
Risk evaluation after identification of the risks with potential involves evaluation of each risk based on probability that risk phenomenon will occur and loss with potentiality is associated with it(Santos, 2019).Some eventual risks are most likely to happen as compared to others and the cost of such risks vary greatly .Eventually the possible risk probability and severity of loss to the project potentially forms the next step of the process of management of risks.
Possession of risks which have high-impact criteria to narrowly focus on certain risks which are critical to determine and requires help for mitigation. For instance, if the risks are of high-impact nature it increments the project cost by nearly 7% the budget conceptually or 3% of the budget detailing. There exists a few risks which are potentially critical and the team management needs to handle it for mitigation of project risk and plan management .Evaluation of risk is about the understanding of risks potentially, those having the maximum possibility of occurrence and those having negative implications on the project.
| Risk Id | Category of risk | Risk description | Probability | Impact | Level of risk | Risk owner | Possible mitigation |
| 1 | Cost analysis risks | Risks associated with cost cutting or making | high | high | high | Project manager | Early accounting along with past experiences |
| 2 | Client based risks | Risks associated with allocation of client based works | medium | low | high | Project manager | Early discussion with clear cut ideology |
| 3 | Financial risks | Risks associated with monetary matters, fund shortage and so on | high | high | high | Project manager | Dynamic allocation of finances focussing on goal orientation |
| 4 | Technology related risks | Risks associated with blind spots of technology where no implication of technology is possible | low | high | high | Project manager | Technical analysis from different angles |
| 5 | Schedule making risks | Risks associated with schedule due to absence of skilled labour | high | medium | low | Project manager | Provisioning of the project as soon as possible |
| 6 | Contractual based risks | Risks associated with contractual workers or anything taken under contract | high | low | low | Project manager | Provisioning of the contract to different ideologies and then cross checking which fits in most appropriately |
| 7 | Political risks | Risks associated with the policies of the local government or central government | low | high | low | Project manager | Early discussion with local body of administration as well as keeping in mind the interests of the local people |
Table 2: Risk register of Construction project
(Source: Self created)
There exists a correlation which is positive -both increment or decrement together-in between the risk of project and project complexity(Leo, et al. 2019).A new project with emerging science will be rated highly complex and corresponding high affinity towards risk. The project team also assigns appropriate technology sources to their respective managers for completion of project goals.
Evaluation of risk includes workshop setting or identification of risks so as to analyze or determine the probability of occurrence and the cost it potentially expedited. Example: Analysis of risk in equipment delivery
A group analyses the importance of equipment not reaching or arriving at the project premises on time and identifies three equipment pieces which are critical for the project and requires significant incremental costs if delivered after the viable time. One vendor who was selected for delivery of important equipment has history of being late on his past turnips. The vendor was a gentleman and a gem of a type and took more items on work than he could deliver in time. There is this event of risk identifiable as late arrival of equipment was rated highly and the rest two pieces of equipment with high potentiality of impact on the project but having low probability of occurrence.
2.3 Mitigation of risks in construction
Risk mitigation reduces the occurrence of an unexpected event and the various ways of risk mitigation are:
Avoid taking risks: It usually involves development of another contingent strategy with higher success probability but usually at the expense of extra costs associated with the task completion.
-Share your risks with the respective team members as much as possible: It involves partnership to share responsibility of activities which are risky(Keers, and van Fenema, 2018).Many institutions work on projects of international importance for reduction of labour risks ,legal risks ,political risks and other types of risks by venturing jointly with a foreign company.
-Reduce your risks as much as possible: It involves sowing of funds to reduce the aptitude of risk on a project .On foreign projects ,companies purchase the guarantee of currency rates to reduce the risk of currency fluctuation .Those responsible for management of the project may hire experts for analysis of the plan technically and on cost estimation on a project so as to boost the confidence and reduce the possibilities of risks. The assignment of highly skilled personnel in a project is to manage the activities which have high risk affinity and it is generally considered another risk handling method.
-Transferring risks amounts to the method of transfer of risks for reduction in risk handling in the project to another party .This process includes purchase of insurance policies for risk referral method wherein risks are transferred from the project company to the insurance company. For instance, a construction project carried out in the Caribbean islands requires the purchase of insurance policy which covers hurricanes or any sort of storms causing damage to the site of construction. The areas of purchase of policies usually occurs outside the scope of the project team and events like political unrest ,weather and labor strikes which significantly impacts the events of the project
3.0 conclusion
Hence it can be concluded that as the project progresses the implementation phase ,more and more information becomes available and the total risk reduces typically as tasks are implemented without any loss and the risk plan needs to be updated with each and every new information related to activities that have been performed ,and key risks checked off.
During the phase of closeout, risk sharing and transferring agreements are concluded and the breakdown structure of risk properly examined to make sure that all events of risk have been mitigated or avoided.
RISK MANAGEMENT ESSAY
1.0 Introduction
The economic recovery from the crisis of sudden climatic changes have to be filled with resilience and durability ,return to ‘usual business’ and destructive patterns of investment environmentally ,and activities needs to be barred. The global emergencies of the environment if gone unchecked could have resulted in larger damage of the society and economy if gone unchecked than those made by COVID-19.In order to aid the recovery of the economy, many packages have to be developed to “build back” in a proper and better way. This meant more and more livelihoods and economies back on their feet.
There are Recovery policies regarding abrupt climatic changes needs to be sanctioned so as to reduce the possibility of future shocks which may trigger changes in the investment and behavioral pattern and increasing resilience to it. The central approach focuses on the well being and inclusiveness. There is other vital dimension for assessment of recovery packages which includes ‘Build Back Better’ alignment with reduction of goals, making up resilience to climate changes, bottoming loss of biodiversity and increment of circular supply chains.
2.0 Discussion
Climate change is leaving a significant impact on the society , day to day businesses and at the end to each and every individuals. It is understood that the increasing shift towards an economy of low carbon is very much needed. In this shift of building and construction sector ,there exists a central role which accounts for nearly 45% of the global greenhouse gas (GHG) emissions according to WBCSD 2018.The major contribution of this emissions include materials from the heating, cooling ,lighting and likewise works in building infrastructure .
The starting of the last decade was partially revolving around the debate of assets that were left stranded, that is, the risks associated with devaluing assets in the industries of oil and gas because of the implication of new regulations and change in market policies It is now clearing out that due to the high sources of direct and indirect carbon emissions, assets of real estate projects and construction projects may be stranded, and in certain additional cases requirements of infusion of additional capital for refurbishing needs ,thereby adjusting the margins as and according to the needs. This may result in huge devaluations and the basic importance for many industries is the intensive carbon emitting construction sector being pushed under the spotlight for the debate revolving around climatic change.
Climate change and construction sector goes side by side as the construction sector and building materials are often confronted with the major problems exposing stakeholders of the sector to stay along the construction value chain taking into account the risks of climatic changes in two main ways. One includes, the sector contributes to the change in climate through the emissions of Greenhouse Gases (GHG) and then exposed to taxes for carbon emission during the production of building materials as well as from the supply of heat and power during phasing of buildings. Additionally, the sector should mitigate the goals of sector decarburization and infrastructure (in the form of transition risks).
Secondly, the stakeholders are open to the risks involving environmental changes which are physical in nature caused as a result of climatic changes, like for instance extreme weather conditions at the site of construction, water shortage, and other deteriorating conditions related to the environment like temperature increment and flooding (sorts of physical risks).
The actions to help in combating climatic changes in the construction sector include the different areas of climatic action which the construction sector should care for.
Reduction of carbon emissions and risks of transition-The companies are made responsible for reduction of carbon emissions so as to reach the achievement of net-zero emissions within the next 30 years and, there is hereby, agreeing to the goal held under the Paris agreement wherein the ideology of attaining global warming below 2 degrees Celsius was mandated. Hence, this responsibility of decarburization drive was made a responsibility of the entire value chain and most notably the following actions should be adhered to for influence:
~Bottoming out of intensity of carbon for the production and processing of building materials at the upstream side
~Implementation in a smart way the climate, energy consumption as low as possible and in a clean phase real estate and infrastructure
~Design of materials which can be recycled and made to flow within the refurbishment cycle and demolition cycle
Building of resilience against the consequences of dramatic climate changes wherein there exists physical risks of extreme weather conditions and floods unfolding in the near mid-term and there lies the requirement of analysis of risks which are physical in nature (Chan, et al. 2020). For this, measures which are preparatory in nature and are against the effects of those events negatively require the phase wise use of buildings and infrastructure (Etinay, et al.2018). Such sorts of building and infrastructure expansion also influences environment’s natural resilience to negative climatic changes which have a widespread impact on the environment due to increment of various sorts of precipitation and the ability to nullify carbon emission in the environment. This consists of activities like:
~Increment of durability of building materials against extreme conditions of weather
~Overhauling the concepts of cooling/heating and insulation
~Revision of the management made responsible for the clause of water or towards more climate smart water managing systems during phases of construction and use of phases of buildings
~Bottoming of effects which are potentially negative for the construction sector from the environment perspective of soil sealing (change caused to water flow due to heavy rain) or changing of land usage(sequestration of carbon)
~Reduction of transportation as transportation of building materials to the site of construction requires a huge proportion of energy consumption and emission of carbon dioxide and therefore there exists numerous things that can be done like pre planning of transportation routes to the minimum possible route, proper execution of the plan such that multiple trips to the site of construction are avoided, proper packing of each vehicle of transportation so as to reduce the number of trips and finally procurement of materials from local suppliers (Krüger and Meyer, 2021).
~Insurance of correct installation as all efforts are put in to improve the energy usage and no wastage occurs due to improper installation or non maintenance of the specified products (Xia, et al. 2018).
At senior levels, there exists training of experienced peoples via network fabricators such that their efficacy increases in terms of correct installation (Oetzel and Miklian, 2017).
~Signing up for the government’s agreement of climatic variations by seeking agreements between the home industry and the agency responsible for the safeguard of the environment so as to reduce energy usage and carbon dioxide emissions.
~Getting advice from experts on efficient usage of energy such that you are using products which are efficient to the fullest and there exists a better understanding of each and every component of construction. Cutting down the usage of carbon as greenhouse gas emissions have a large attribution to building materials used in construction and this emission occurs due to extraction from raw materials, construction, maintenance and disposal .The most effective way of reduction of carbon lifespan is designing of buildings with long- lifespan with the usage of materials that lasts a lifetime without the need of replacement. Cutting down the usage of carbon as greenhouse gas emissions have a large attribution to building materials used in construction and this emission occurs due to extraction from raw materials, construction, maintenance and disposal (Solecki, et al. 2017).The most effective way of reduction of carbon lifespan is designing of buildings with long- lifespan with the usage of materials that lasts a lifetime without the need of replacement.
Reduction of waste as waste is exhaustive both, financially and when seen from the carbon emission viewpoint
Installation of biomass boilers should be done which can be fuelled by packaging wastes as well as timber wastes and use of heat in warehouses which also provides significant savings both energy wise and cost wise.
Reduction of waste as waste is exhaustive both, financially and when seen from the carbon emission viewpoint
Installation of biomass boilers should be done which can be fuelled by packaging wastes as well as timber wastes and use of heat in warehouses which also provides significant savings both energy wise and cost wise.
Senior heads understand that time is precious and hence, to make life easier there exist the need of an experienced group of advisors who can put in the required performance criteria as per the budget and aesthetics consideration.
3.0 Conclusion
The construction sector is often called upon to take manageable challenges of climate changes in an active way so as to get the response of direct or indirect carbon emissions. It is also worth that the preparation for a change in environment builds resilience against the negative side effects of climatic variations.
Developments of new products which have high efficacy as innovation always forms a vital answer to climatic variations .The industry responsible for construction works are working day and night for the development of new age products which are efficient enough from the manufacturing scenario as well as their course of operation.
There is planning for increment of solar radiation which may directly raise the temperature within the building through any opening like, window or indirect heating of the structure.
Use of natural ventilation techniques as it is way cheaper than maintenance of air conditioners, which in turn also reduces usage of energy and most importantly emission of carbon dioxide
Increasing usage of daylight as much as possible as natural light is responsible for healthy wellbeing and in particular daylight has significant roles in improvement of seasonal affection disorder, rest-activity, sleep, agitation and depression.
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