VOL. 1. No. 6 May-June 2013
THE MAGAZINE FOR CONSTRUCTION PROFESSIONALS
Building a Reputation for Quality Service
Corruption in Construction 62-story Shangri-La Hotel rises at The Fort
Engr. Romeo Momo PICE President
Architect Explains Green Architecture Rebah of Six Ports to ease sea travel May - June 2013
2 | Philippine Construction&Designâ€ƒ May - June 2013
contents Issue No. 6 -2013
CONSTRUCTION NEWS 02 Calendar of Events 04 News Roundup
DPWH to revise contractors contractor’s maximum capacity
08 Association Updates
Momo Meets Association Heads
FEATURES 10 Industry Report
Corruption in Construction
14 Project Report -Public
Rehab of Six Ports to ease sea travel
18 Cover Story
22 Human Resource Management
How to Manage a Construction Project
24 International Report
Cambodia “suspends” construction of dam on Mekong
32 Project Report -Private Make way for MRT-7
34 Sales & Marketing Management Marketing in Construction
36 Contractor’s Profile 38
62-story Shangri-La Hotel rises at The Fort DDT Konstract Inc. carries the badge of Triple A rating
40 Engineer’s Profile
“Do your best” says David
42 Architect Profile
James Lao Pioneers ‘Green’ Architecture
VOL. 1. No. 6 May-June 2013
THE MAGAZINE FOR CONSTRUCTION PROFESSIONALS
44 Risk Management
Bring Your Safety Program to Proactive Level
Building a Reputation for Quality Service
46 Human Resource Management
Recruiting, Motivating and Keeping the Best People is Basic to Your Success
Corruption in Construction 62-story Shangri-La Hotel rises at The Fort
48 Products & Technology
Construction Materials Wholesale and Retail Price Index Movements
53 Price Movement Construction Materials Wholesale and Retail Price Index Movements
Engr. Romeo Momo PICE President
Architect Explains Green Architecture Rebah of Six Ports to ease sea travel May - June 2013
Cover Photo: Engineer and Undersecretary Romeo Momo is the first individual elected President of PICE for two terms.
The Philippine Construction & Design is an e-magazine published monthly by Saiber Media Inc., with business address at Unit 3332 City & Land Mega Plaza, ADB Ave. cor. Garnet Rd., Ortigas Center, Pasig City. Official website is www.philippineconstructionanddesign.com., e-mail address: firstname.lastname@example.org. ph. Publisher is William L. Ogan. For your editorial, online subscription and advertising placement, please contact Telefax (632) 687-1430 Direct Line: (632) 542-1930 Please send your comments and suggestion’s to email@example.com. Copyright ©2012 All rights reserved.
May - June 2013
calendar of events Roof India 2013 May 24-26, 2013 This exposition will bring together all manufacturers, dealers and suppliers of different kinds of roofing materials under one event. Venue: Bombay Exhibition Centre, Mumbai, India Plantworx 2013 May 14 – 16, 2013 The UK’s new biennial event for the construction industry. With the first exhibition scheduled for May 2013, this biennial event is set to become the major UK event for construction, a dedicated working machinery show for all construction professionals. With more than 100,000 sqm of live construction equipment PLANTWORX will be the largest UK event featuring construction applications and working machinery. A huge product showcase for all construction manufacturers and suppliers. Venue: Stoneleigh Park, Warwickshire, England Construmat 2013 May 16 – 21, 2013 The International Construction Exhibition in Barcelona is a trade show that focuses on the future of the construction industry. The Construmat Award this year has prizes in the categories for Building, Civil Engineering, and for the Best Construction Product. Venue: Fira de Barcelona Gran Via | Barcelona, Spain Philippine Building & Construction Exposition May 23 – 26, 2013 Trade show exhibiting Building Security System, Construction Castings, Construction Calculators, Construction Adhesives, Transformers By Construction Venue: Cebu International Convention Center, Cebu, Philippines ELEXPO June 6-9, 2013 This annual event showcases the latest product innovations and technology in elevators and accessories. Venue: Suzhou, China PHILCONSTRUCT VISAYAS 2013 June 6-8, 2013 Cebu is a certified business and tourism hub in its own right-home to same of the most impressive building projects in the country and the region’s biggest construction show. Venue: Watefront Cebu City, Hotel & Casino, Lahug Building & Construction Indonesia September 11 – 14, 2013 This biennial trade show showcases the latest in building and construction equipment and materials. Venue: Jakarta, Indonesia Bauma Africa 2013 September 18 – 21, 2013 Africa is attracting great interest in the sector, both at home and abroad: the South African Construction and Mining Equipment Suppliers’ Association (CONMESA) expressly welcomes the launch of a show for the whole construction and mining branch. Venue: Gallagher Convention Centre, Johannesburg, South Africa EVENTS | BUILDING & INFRASTRUCTURE INDONESIA 2013 September 4-7 2013
2 | Philippine Construction&Design May - June 2013
Indonesia is now the 3rd fastest growing economy amongst the world’s wealthy industrial countries and major emerging markets (G20). To ensure that economic growth can rise to its potential infrastructure development is vital. More toll roads, power plants, railways, bridges and tunnels and improved harbours and airports, water & sanitation are needed. Plans to upgrade Indonesia’s infrastructure are expected to attract US$70 Billion of investment over the next 5 years stimulating a boom in the construction industry that is expected to grow at over 6.8% year on year. Venue: Jakarta International Expo Ecobuild Southeast Asia September 17 - 19, 2013 Southeast Asia represents a highly profitable market and is expected to be among the world’’s 10 largest economies and fourth largest in Asia by 2020. Bolstered investment in infrastructure and sustainable development and the introduction of numerous green incentives to lower carbon emissions, has unveiled new opportunities for international and local companies looking for new ventures in the region. Venue: Putra World Trade Centre, Kuala Lumpur, 50480 , Malaysia Geo Tunnel October 15-17, 2013 This annual event showcases technologies and equipment for the construction of tunnels and utility lines. Venue: Moscow, Russia Japan Home & Building Show October 23 - 25, 2013 Building Construction Material, Equipment and Sanitaryware Japan Home & Building Show is the largest trade event in Japan dedicated to housing and building industry. It will be an aggregation of builders, agents, contractors, manufacturers and distributors who will share their innovative ideas for better home and building construction. There will be a showcase of building supplies and parts, support machinery. Venue: Tokyo, Japan Building & Construction Myanmar 2013 October 31- 2 November 2013 With a great need to build and upgrade the majority of its infrastructure, including housing, schools, shopping malls, hospitals, roads, bridges, railroads, airports, seaports and industrial zones Myanmar offers opportunities in for construction, construction equipment, affordable housing developments, high end housing development, extractivesdriven industrial construction and transport infrastructure.“The new government is facing a historic opportunity to jump start the development process and lift living standards. Myanmar has a high growth potential and could become the next economic frontier in Asia.” The International Monetary Fund Venue: Myanmar Convention Center, Yangon BATIMAFrance November 4-8, 2013 This annual event features the latest products and technologies catering to construction professionals. Venue: Paris, France CON-BUILD Vietnam December 2013 This annual trade show and exposition features construction machinery, vehicles, equipments, construction materials, technology and services. Venue: Ho Chi Minh, Vietnam
11 – 17 April, Munich
Contact: FAIRS & MORE, Inc. (a subsidiary of ECCP) Tel. +63 2 759 6680 firstname.lastname@example.org
www.bauma.de May - June 2013
Mariwasa donates P1.04M to Typhoon ‘Pablo’ victims
MSC President Anukul Kongrit (center) hands over the check donation to Mel Tiangco together with GMAKF Executive Director Winifred Avendaño (left), MSC VP-Finance & Administration Emilie Maramag (second from right) and MSC Sales Coordination Manager Elizabeth Ebio (right).
Mariwasa Siam Ceramics, Inc. (MSC) the countries leading tile manufacturer and GMA Kapuso Foundation, Inc. (GMAKF) teamed up recently for the relief and rehabilitation efforts in the wake of Typhoon Pablo. MSC extends P500,000.00 cash plus the voluntary contribution of its employees amounting to P40,000.00 for a total of P540,000.00 cash donation. The said donation is aimed to provide relief assistance such as food and medicines to the typhoon-hit areas in Mindanao particularly in Davao Oriental and Compostela Valley. On top of that, MSC also provides product support amounting to P500,0000.00 worth of Mariwasa products for the rehabilitation efforts in the said areas bringing the total amount of cash and in-kind donation to P1,040,000.00. GMAKPF executive vice president and chief operating officer Mel Tiangco expresses her gratitude to Mariwasa for showing support for the Kapuso Foundation and its causes. “We are a socially responsible company and this our way of giving back to the people. This is part of our commitment in ensuring the well-being of our fellow ASEAN especially those who are displaced by disasters” said Anukul Kongrit, President of Mariwasa Siam Ceramics, Inc. Mariwasa and GMA Kapuso Foundation, Inc. have always been joining hands in reaching out to underprivileged Filipinos and both share business philosophy in caring for the community.
Cebu City ordered to pay contractor P6 million The Cebu City Government has been ordered by the Court of Appeals (CA) to pay P6 million to Young Builders Corp., the contractor of the aborted reconstruction of the Carbon Market Unit II. The amount represents the City’s unpaid balance to the contractor for the work it accomplished for the project in 2001.. But while it ordered the City to pay P6 million, the appellate court denied the contractors demand for the P50.6-million payment for the variation it had worked on. The contractor had built the foundation based on a revised plan without securing a variation order. Instead of the original 2,910-linear meter pile works, Young Builders made a 13,000-linear meter pile work for the building’s foundation. In its 27-page decision the CA upheld the February ruling of the Construction Industry Arbitration Commission (CIAC). Like CIAC, the appellate court said the City’s explanation that it could not pay the balance because there were no available funds failed to persuade them. The initial work that Young Builders accomplished for the reconstruction of the Unit II amount to P30.8 million, which includes piling works (P22.7 million), civil structural works (P4.9 million) and general requirements (P3.1 million). The City has paid P24.5 million to the contractor in 2003, before the City issued an order of work stoppage because the project started without a building permit as required by the National Building Code. It also did not have a locational clearance and did not comply with zoning requirements. As for the P50.6-million variation work done by Young Builders, the CA said they found no grounds for the City to settle it. The Court of Appeals said the variation on the project plan does not have the approval or consent of the approving authority, which is the mayor. Aside from this, the CA said the variation works is not covered by the original contract. Source: Sun Star Cebu
The Department of Public Works and Highways (DPWH) 7 has commenced the repairs of the Marcelo B. Fernan Bridge with completion of the asphalt overlay despite slight delays last March due to the 27th Confederation of Asia Pacific Chamber of Commerce and Industry Conference. Repairs were halted so as to avoid inconvenience for participants. The Cebu Chamber of Commerce and Industry hosted the two-day event. The work then continued with contractor PLD Construction putting pavement markings and repairing steel components under the first bridge. PLD Construction removed and replaced the asphalt pavements of the bridge and repaired two of its expansion joints. The repairs are to be completed within 90 days. The repairs on the first bridge started last Feb. 25. Engr. Renult Ricardo of the DPWH 7 Sixth District Engineering Office said they ensured that the repair of the second bridge will not cause traffic jams, like what happened during the first few days of repair on the first bridge .Ricardo said “We have already coordinated with the traffic departments of Mandaue City and Lapu-Lapu City”. 4 | Philippine Construction&Design May - June 2013
Cebu Mactan bridge repairs underway
Cebu Mactan Bridge
The DPWH 7 had planned to do the repairs around the clock, but when the closure of one lane of the first bridge caused massive traffic congestion for two days, they decided to do the repairs at night. The DPWH allocated P18 million to replace the asphalt and corroded bars and steel trusses of the first bridge. Some P27 million was set aside to replace the asphalt and two expansion joints of the Marcelo B. Fernan Bridge.
Public Works and Highways Secretary Rogelio L. Singson seeks to revise the contractors’ maximum capacity to undertake government projects to include the amount of income taxes they pay to the government. “If a contractor pays higher income tax, this means that he has a higher networth and correspondingly, bigger capacity to undertake government projects.” This means, Singson said, “the contractor is more financially capable and eligible to enter into much bigger government project contracts.” “We noticed that some of the contractors undertaking huge projects with DPWH has very little networth and little declared assets thus, they pay little amount of taxes,” said Singson. “We should change this old practice,” he said. “We want that contractors of DPWH pay the right taxes. DOF Secretary Cesar Purisima and BIR Commissioner Kim Henares are fully
behind this initiative. The contractor’s maximum financial contracting capacity to execute projects shall take into account the taxes paid to the government as verified from BIR records.” To check on the veracity of the contractors’ financial data, Secretary Singson has secured the support of Finance Secretary Purisima, Budget Secretary Florencio Abad and BIR Commissioner Henares to come up with an indexing of the contractors’ Net Financial Contracting Capacity (NFCC). Contractors are categorized according to “size range” and “license category” which are based on their financial and assets (including equipment) capabilities to undertake such projects. Singson also directed the DPWH accountants and financial personnel to counter check the authenticity of the
PhP 28 Million Cebu Naga bridge project started The construction of the PhP 28.21 million widening of Langtad Bridge in Naga City broke ground recently. The project includes the widening of the 232-meter road approaching the bridge, 100 meters from the side going to Cebu City and 132 meters from the side going to Carcar City. The project is funded by a P400-million fund that Rep. Tomas Osmeña (Cebu City, south district) set aside for the first district of Cebu Province. The Langtad Bridge is one of the six bridges from Tinaan, Naga City to Carcar City that will be improved and widened using
the P400-million fund. Based on records of the DPWH, P270.6 million out of the P400 million will be used to improve and widen six bridges. The other project components include building a lined canal along N. Bacalso Ave. to Carcar City (P23.3 million), building the Carcar Bypass Project (P50 million), and construction of the Carcar Bypass Road (P56 million). During the groundbreaking ceremony yesterday, Engr. Nonato Paylado of DPWH 7 said two lanes will be added to the existing
Handbook on good building design and construction in the Philippines A handbook on good building design has been published to provide sinple information to home owners, designers and builders, and building monitors. The handbook provides principles of good design and good construction in a natural hazard prone area. Thoroughly studied, they will also guide on whether to repair or rebuild damaged houses. The descriptions are followed by a code of minimum
DPWH Secretary Rogelio L. Singson
DPWH to revise contractor’s maximum capacity
BIR signatories on the “Application for Contractor’s Final Payment Release Certificate” or BIR Form 2555, prior to the processing of the final payments of work accomplished for civil works. As of end of December 2012, the DPWH, as BIR collection agent, was able to collect and remit a total of P7.51 Billion E-VAT and withholding taxes from all taxable financial transactions processed and paid. two lanes of the Langtad Bridge. It will be complemented with a sidewalk. Another two lanes, Paylado said, will be added to the existing two-lane road approaching the bridge. Paylado also said the project, will be finished within 210 calendar days barring inclement weather. The project will be undertaken by AR Adlawan Construction, Engr. Daisy Toledo, DPWH second district office head, asked the public to be patient since the project will cause traffic. “Development is twinned with inconvenience. We asked the traveling public and the road users going to and from south of Cebu to please bear with us,” she said.
standards for construction of houses to ensure quality and a sustainable building. Since many concepts are not easy to describe, the handbook contains pictures to facilitate understanding. The photographs have all been taken of construction practices in the Philippines. The Philippines are generally hazard prone to the whole range of natural hazards, like earthquakes, landslides and flooding due to storms and sudden downpours of rain, volcanic eruption. The principles of this book are designed to minimize vulnerability to natural hazards, so that houses will safeguard occupants and their assets.
May - June 2013
PPP to revive controversial Laiban Dam www.fdc.ph
Abandon the Laiban Dam
said that the Metropolitan Waterworks & Sewerage System (MWSS) is formulating plans to realize the proposed New Centennial Water Source (NCWS) project involving “one or two greenfield dam developments” to expand the National Capital Region’s water sources. The NCWS project could involve the Laiban Dam and the Kaliwa Low Dam on Kaliwa River in General Nakar, Quezon.“The NCWS project is envisaged to involve the development of a dam at the Kaliwa River (Laiban Dam), and/or a smaller dam downstream (Kaliwa Low Dam) to maximize water supply, ensure short- and long-term redundancy, and optimize power generation capacities,” said the PPP Center. It added that at full completion, the
The controversial Laiban Dam project in Quezon province may be revived through the government’s public-private partnership (PPP) scheme, the Public-Private Partnership Center of the Philippines said. In an announcement, the PPP Center
PhP 24m from pork to build Toledo plaza More than P24 million to had been appropriated for the construction of a European-inspired plaza in front of the Talisay City Hall in Barangay Lawaan 2, according Daisy Toledo, Department of Public Works and Highways (DPWH) Second Engineering District head. The money came from Priority Development Assistance Fund or “pork barrel”. Toledo said the plaza’s construction was divided into three phases: P13 million for the first phase of construction; P8 million for the second phase; and P3.5 million for the final phase. The official contractor of the project is QM Builders. Construction of the plaza is ongoing and more enhancements might be added, depending on the proponent’s decision to provide additional appropriations, Toledo said. ‘Too much’ Members of the City’s opposition, though, urged the public to scrutinize the amount, which they believe to be too much for one structure. “We are spending that much for a plaza that doesn’t even reflect the city’s history and culture,” said City Councilor Romeo Villarante, who earlier asked Gullas to reveal how much the latter spent on the project.
project could add a capacity of at least 1,800 million liters per day, to be achieved in stages “as the supply deficit warrants.” The PPP Center said the project could also include a water treatment facility and a hydropower facility. The PPP Center has appointed RebelGroup in consortium with Allen & Overy, Crisil, PJS Law and Royal Haskoning DHV (as transaction advisor for the NCWS project) to support MWSS in the project. The Laiban Dam project has been criticized by groups such as the Save Sierra Madre Network (SSMN), Pambansang Kilusan ng Samahang Magsasaka (Pakisama), and the Freedom from Debt Coalition (FDC). Indigenous groups in the area have also blocked the dam’s construction. Source: GMA news
Asia’ Largest Embankment Dam to supply 345 Megawatt Hydropower
The San Roque Multipurpose Project located about 300 km north of Manila, involves the construction of a very large embankment dam which is expected to produce a 345 megawatt hydropower plant. The project includes two diversion tunnels, and a number of other structures. The dam is 200 meters high and nearly 1100 meters long, making it Asia’s largest embankment dam and the world’s 12th highest rockfill dam. The two diversion tunnels, an intake tunnel and an outlet tunnel are both over 1200 meters long. The dam will create a reservoir of approximately 850 million cubic meters and is expected to supply irrigation water for about 87,000 hectares of farm land.
6 | Philippine Construction&Design May - June 2013
The powerhouse box (above) was cut to a depth of 77 meters by blasting and excavating. Rod extensometers, were used to monitor movements of the rock wall during the excavating process. If excessive movements occurred, additional rock anchors would be installed to stabilize the walls. The rod extensometers proved their worth during the excavation process. While they detected only acceptable movement, including some movement during a low-magnitude earthquake), the extensometers provided assurance that the walls were stable. This allowed the excavation to proceed more rapidly, since no additional rock anchors were required.
Philippines light rail show heads for London
A major Philippines light rail project and a roadshow is heading to London and Madrid to attract further foreign participation some 25 businesses already shown interest. In total, 25 companies have bought prequalification documents for the P55-billion (£843m) light rail transit (LRT) Line 1 extension. The number of prospective bidders is expected to grow following the international road show to London, Madrid, Japan and South Korea, said Department of Transportation and Communications (DOTC) secretary Manuel Roxas II. The project includes operation and maintenance of the LRT Line 1 and construction of an additional 11.7km elevated railway system as well as operation and maintenance of the integrated Line 1 system. The project cost, estimated to be around USD $ 800 m, will be split between the Philippine government and the private sector. The winning bidder’s role will include financing, designing and building the extension. Philippine and foreign companies, either individually or grouped in a consortium are welcome to join, said Roxas. Companies have until August 22 to submit their responses. Bid documents will be issued in October with submissin due in the first quarter of next year.
Cagayan de Oro Flood Control Project Nears Completion The Cagayan de Oro River Basin Flood Control Project designed by the Department of Public Works and Highways to lessen flooding and ensure safety of local residents of Cagayan de Oro City, particularly in areas hit by flooding due to typhoon “Sendong” is now nearing completion. Recently, President Benigno S. Aquino III made an on-thespot check on the flood mitigation structures being constructed by DPWH in Northern Mindanao. DPWH Undersecretary Romeo S. Momo briefed the President on the progress of works at the mouth of the river which will ensure better water flow and prevent to occurrence of similar damage to properties and loss of lives that happened in the city caused by typhoon “Sendong” on December 2011. As an immediate intervention in addressing flooding, DPWH is presently undertaking the construction of a 142 lineal-meter revetment of the river basin with sheet piles foundation costing PhP46.547 Million in Barangay Carmen which is set to be completed this month. Another project is the 138.00 lineal meters revetment of the river basin with sheet piles foundation in Barangay Macabalan with a cost of P46.077 Million and was completed on April, 2013. DPWH with the technical assistance of the Japan International Cooperation Agenecy (JICA) is also undertaking preparatory survey for Flood Risk Management for Cagayan de Oro City and will be finished by November 2013. The study team will consider structural measures such as dike, retarding pond, dam/reservoir and non-structural measures such as watershed management, land use management and flood management for flood mitigation. Previous master plan and feasibility study done before the “Sendong” devastation are in the process of review and updating.
The Philippines National Economic & Development Authority (NEDA) okays plans for PhP4.3 expressway and PhP4.8bn airport. The Cavite-Laguna Expressway (Calax) project involves the financing, design and construction of a new four-lane 47km expressway that stretches 47.018 kilometers from the end of Cavite Expressway to join the South Luzon Expressway. “The project is consistent with the Philippine Development Plan 2011-2016’s transport sector objective of providing dependable access to production areas such as Cavite and Laguna, being rapidly growing industrial and commercial centress south of Metro Manila,” said socioeconomic planning secretary Arsenio Balisacan. The project is estimated to cost PhP43.319bn and proposed to be financed partly through public-private partnership (PPP) and partly through development assistance from the Japan International
Cooperation Agency (JICA). The Philippines Department of Public Works & Highways is the project’s proponent. The Bicol International Airport project was also approved. It involves construction of a new domestic airport of international standards in Daraga, Albay, to replace the existing Legazpi Airport due to the latter’s limitations and safety concerns. The project will include the construction of landside and airside facilities, passenger and cargo terminal buildings and related facilities/equipment, security and navigational aids equipment, detailed engineering design and land acquisition for the airport compound. The approved total cost of the project is PhP4.799bn. Financing will be sourced from the Department of Transportation & Communication budget.
May - June 2013
PCA President’s Message Pres. Augusto F. Manalo President
ith the country’s 2012 full-year economic growth rate having surpassed official targets of 5-6% at 6.6%, the construction industry can certainly look forward to a more robust 2013. We opened this year with a series of planning sessions to plot our goals for year 2013. The PCA has reorganized and formed 10 new committees; namely, Construction Markets Development; Construction Labor Relations & Safety Development; Construction Manpower Development; Construction Materials, Equipment & Technology Development; Construction Finance & Taxation Development; Membership, Chapters & Affiliates; Programs & Sports; International Relations; Corporate Social Responsibility (CSR), Public Information & Public Relations; and Integrity Initiative & Professional Practice Oversight. With our committees working in full force, we anticipate this year to be a year teeming with opportunities. We urge our contractors to be more circumspect about yourselves and create a moat around your current position by improving your management skills, technological prowess and financial might. While you do that, your current board of directors remains bent towards providing events and activities that would place you at a distinct advantage over the competition. Expect seminars, skills training programs, technical research and strategic lobby operations to take the forefront of our priorities this year. Needless to say, we shall not shrink away from our corporate social responsibilities (CSR) to provide effective calamity response where our support is mostly needed. We hope that our members will continue to support all the activities and events of PCA and will remain steadfast in attending our monthly general membership meetings this 2013. Take full advantage of your membership in PCA and see how doing so can benefit you and your business.
8 | Philippine Construction&Design May - June 2013
Momo Meets Association Heads PIA past president/ Vice Chairman, Philippine Council for the Architecture Profession JPaul Octaviano, FPIA, with DPWH Undersecretary and PICE president Romeo Momo and PIA Immediate past president Joel Rico, FPIA during the one of the consultative meeting between the architects and civil engineers to establish a friendly atmosphere between the two leading allied professionals in the construction industry. In the coming days, the PCAP, UAP, PIA and PICE will formally talk to discuss the current issues and challenges between the two professions, and to help each other to strengthen the industry in the coming cross border practice in Asia Pacific Region.
PCAP Official Logo Chosen The official logo of the Philippine Council for the Architecture Profession (PCAP), composed of the United Architects of the Philippines, Philippine Institute of Architects and Council of Deans and Heads of Architecture School in the Philippines, to promote, protect, uplift and strengthen the architecture profession in the country. PIA incoming president Pablito Labao Jr. will be sitting as Executive Member if the PCAP.
PCA Head Meets CNBC Producer. PCA President Augusto Manalo and PCA Executive Director Lito Madrasto met with CNBC Worldwide Television Executive Producer to discuss the success of transparency initiatives and developments in the Philippines, particularly in infrastructures.Research firmBCI Asia described 2013 as the “birth of new construction” for the Philippines. Construction projects are expected to nearly triple in value next year.
The orphanage that PIA help build The Philippine Institute of Architects (PIA) and the White Cross Childrens Home, through the assistance of the Crystal Fountain Foundation, collaborated for the completion of the CRYSTAL FOUNTAIN EDUCATIONAL CENTER, at the White Cross Children’s Home complex in San Juan City. The project was launched in 2010 as part of the expanding facilities for the orphanage home. The PIA donated its architectural design, supervision and industry partners to help complete the computer, library and audio-visual center for the children of White Cross. The Center was inaugurated last year.
Manzala Awarded Plaque of Appreciation Awarding of plaque of appreciation to Chairperson Teresita Manzala, PRC by PIA Immediate Past President Joel Rico, UAP President Sonny Rosal, PCAP Chairman Norberto Nuke, CODHASP President John Joseph Fernandez and PCAP Board of Trustee Beth Ochoa-Regala during the induction of officers of the Philippine Council for the Architecture Profession.
“Sonny” Labao Jr. Elected PIA President Congratulations to Architect Pablito “ Sonny” Labao Jr, FPIA, for becoming the 49th president of the Philippine Institute of Architects, during the 80th National Convention, in Las Casas Filipinas de Acuzar, in Bataan. Architect Labao was a graduate of the University of Santo Tomas College of Architecture, and the first national president from Davao, and one of the most influential architects in Mindanao.
May - June 2013
Corruption in Construction A third of the national budget is lost because of corruption
uniform guidelines for blacklisting of manufacturers, suppliers, distributors, contractors and consultants
he Philippines continues to be tagged as one of the most corrupt countries in the world. According to the latest Corruption Perceptions Index of Transparency International (CPI) the Philippines placed 34 on a scale of 1 to 100. The top 100 number considered squeaky clean and the lower descending numbers in ascending degrees of corruption. The history of the country is fraught with corruption, particularly in its construction sector. Every government throughout its history has had to struggle with the problem. The World Economic Forum (AccGlobal Competitiveness Report 2012-2013) reports that corruption is one of the biggest problems in doing business in the Philippines. Estimates rate that about 30 % of the national budget is lost to graft and corruption every year. The Global Financial Integrity in a 2012 report claims that the Philippines lost around USD
138 billion between 2001 and 2010 due to corruption. Cardinal Sin, then Archbishop of Manila, stated in 1988 that graft and corruption as the “biggest problem of all”. In 1989 public perception was that “corrupt government officials are greater threat to the country” than the communist guerrillas. Former President Fidel V. Ramos said that graft and corruption was one of the major problems that prevented full development of the country. Early last year President Aquino approved the Good Governance and Anti-Corruption Cluster (GGAC) plan for 2012-2016. The plan will focus on transparency and accountability in government operations and citizen engagement.
Department of Public of Public Works and Highways
10 | Philippine Construction&Design May - June 2013
Soon after taking over the helm of the
Department of Public Works and Highways (DPWH) in November 2009, newly appointed former secretary Victor Domingo expressed his desire to clean up DPWH in order to have the name of the DPWH removed as one of the most graft-ridden agency in the government. Survey after survey had identified the department as among the top three government agencies perceived as the most corrupt. Though the public does not hold DPWH as the only agency it holds in low regards, its services are visible to all, often coming in the form of pot holed or bad roads, oorly built or dilapidated school buildings, weak or uncompleted bridges, and other evidence of poor performance. Considering that the DPWH is budgeted large amounts of money this underperformance is attributed to inefficiency and corruption. The present DPWH is a huge organization composed of 16 regional offices, 156 district
numerous officials…participated in an institutionalized cartel replete with collusive tendering, bid rigging, price fixing, and routine payment of bribes and kickbacks.
offices, 17 sub district offices, a task force, 16 regional equipment services, 68 area shops, 21 sub-area shops, five bureaus, six services, and 44 project management offices (PMOs). It employs mo0re than 14,500 people.
Corruption and inefficiency in the DPWH
Misdeeds that are often cited in the DPWH include kickbacks from infrastructure projects, price fixing or bid rigging, collusion or cartel bidding, quality substitution, phantom contractors, progress payment fraud, cost padding, and tailored specifications. There are 8 types of corruption frequently practiced in general, namely: tax evasion, ghost projects and payrolls, evasion of public bidding in awarding of contracts, passing of contracts, nepotism and favoritism, extortion, protection money and bribery. Purchasing government agencies would embark on a “piece-meal purchasing strategy” so as to legally evade public bidding. This is when small amount of supplies and materials is bought in a continuous process, buyer and supplier having internal agreements whereby a certain percentage of the price value is “kicked back” to the buyer. This consequently results in overpricing and the purchase of substandard supplies and materials. Contractors, particularly in the construction of infrastructure projects, have that practice of passing the work from one contractor to another. A certain percentage of the project value is retained by each contractor and sub-contractors in the process, resulting in substandard materials or even unfinished projects.
World Bank Scandal
The World Bank created a huge scandal in early 2009 when it revealed that a cartel of contractors, bureaucrats, and politicians had dipped their hands into the $150-million loan made available Bank for the National
Road Improvement and Management Project (NRIMP-1). World Bank estimated $30 million to $45 million, from one-fifth to a third of the entire budget for NRIMP-1, had gone to the pockets of these cartel members. The World Bank’s Department of Institutional Integrity (INT) went head-tohead with the government and the DPWH. Their findings showed that, among others, “numerous officials…participated in an institutionalized cartel replete with collusive tendering, bid rigging, price fixing, and routine payment of bribes and kickbacks.” The DPWH was catapulted to the number one spot as the most corrupt agency in government when the media went into a feeding frenzy as a result of the controversy generated by the incident. A computer-based registry of civil works contractors developed under the Road Information Support System (RIMSS) was instituted by the DPWH. This enabled the various DPWH offices to screen and examine the qualifications of contractors in order to better determine their eligibility for certain types of projects. Hopefully the system would “help minimize, if not totally eradicate collusion among contractors.”
Evaluating Contractors Performance
One of the anti corruption measure was to subject erring contractors to the DPWH’s three-strike policy for contractors participating in the bidding for DPWH projects. The DPWH also adopted “uniform guidelines for blacklisting of manufacturers, suppliers,
distributors, contractors and consultants” as approved by the Government Procurement Policy Board (GPPB). The latter is an interagency committee established to address state procurement concerns. The Document Tracking System (DoTS) is another anticorruption measure that traces all contract-related documents, including billings of contractors. A payment method using the New Government Accounting System (NGAS) was likewise instituted. The DPWH also uses the Constructors’ Performance Evaluation System (CPES) guidelines of the Construction Industry Authority of the Philippines (CIAP). The latter is an agency attached to the Department of Trade and Industry (DTI) to evaluate a contractor’s performance in the implementation of projects. However, only a small portion of all public construction activities in the country is covered by the CPES system. The National Economic and Development Authority (NEDA) in 2002 ordered all infrastructure procuring entities to include a budget for CPES in their projects’ engineering and administrative overhead cost. An Integrity Board was established to which contractors are encouraged to report any corrupt practices in project implementation. Unsatisfactory performance was penalized with a sanction mechanism for underperforming or corrupt contractors. DPWH assigned two undersecretaries to handle overall supervision of projects—one for foreign-assisted projects and one for locally funded projects to improve project
A government road project in Palawan. The Philippines ranked a "mediocre 113th" for the overall state of its public infrastructure, with particularly low marks for the quality of its seaports and airports, in the 2012 Global Competitiveness Report of the World Economic Forum, according to the Department of Public Works and Highways. Corruption has been attributed as a major reason for the poor quality of Philippine infrastructure. Photo from DPWH
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Department of Public Works and Highways projects have frequently been accused of corruption. Technical staff blame the system which allows politicians much influence in project selection and lackof proper accounting controls, articularly in "pork barrel" projects. implementation efficiency; three assistant secretaries are assigned to handle locally funded projects in Luzon, Visayas, and Mindanao.
The Department of Public Works and Highways Bureau of Research and Standards (DPWH-BRS) instituted a Quality Assurance Program on all DPWH projects is undertaken by the Quality Assurance Unit (QAU). Though QAU plays an important role its operations are limited to only 10 to 20 percent of ongoing and completed projects. To further quickly beef up QAU manpower would be to reassign some personnel to the unit, instead of hiring more, considering that the DPWH bureaucracy is bloated. According to a World Bank document, the DPWH has one employee per 1.3 kilometers of national road, compared to Indonesia where the ratio is one employee per 10 kilometers of road. Other procurement reform initiatives enforced by the DPWH include the Constructors Performance Evaluation System (CPES), contractual provisions on warranties, performance bonds, and Government Procurement Policy Board (GPPB) guidelines for blacklisting. The Constructors’ Performance Evaluation System can be further improved to more precisely reflect the quality of the contractor’s
work and in rating prequalification or eligibility screening, post-qualification and contract award, monitoring of works, remedial measures to correct defects, issuance of certificates of completion, blacklisting, and incentives/recognition. It is also used in designing appropriate plans to enhance the capability of constructors.
The Office of the Ombudsman as a constitutional body that has full powers to It investigate anomalies and inefficiencies, prosecutes cases before courts of law, conducts administrative adjudication, renders public assistance, and conducts programs to prevent graft and corruption. Cases of graft and corruption, including lifestyle checks, have been pursued by Office of the Ombudsman. In one example a DPWH regional director was found to have acquired properties and businesses. Many were placed in the names of his wife, daughter, and sisters. The DPWH official’s salary nor the income and financial status of close relatives could justifiably enable them to accumulate such wealth. Finding prima facie evidence, the Ombudsman filed criminal charges as well as initiated forfeiture proceedings against the official and his family. The official was dismissed from service and forfeited assets acquired dishonestly. The Office of the Ombudsman in
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cooperation with the Presidential Anti-Graft Commission (PAGC), regularly conducts Integrity Development Reviews (IDR) for agencies perceived to be vulnerable to corruption. Special interest are given to agencies which are revenue generating, highprocuring, or have big infrastructure projects such as the DPWH. The IDR is a preventive measure involving a systematic assessment of the agency’s vulnerabilities to and resistance mechanisms against corruption.
Involving the Private Sector
Executive Order No. 175 of 1988 stipulated the inclusion of NGOs in the prequalification, bids, and awards committee (PBAC) and the project monitoring committee (PMC) created in every province and municipality for local government projects funded by the national government. A year later, Executive Order No. 376, the Regional Project Monitoring and Evaluation System (RPMES), was established to watch over and evaluate development projects at the regional, provincial, and municipal levels. A partnership of multi stakeholder now known as BL was envisioned “to strengthen the voice and influence of citizens in ensuring transparency and proper use of public funds for roads, and to counter corruption at high levels of government and society.” A coalition of 25 multi-sectoral organizations that advocated good governance, the Transparency and
Accountability Network (TAN), was chosen BL coordinator. When the BL released the findings of its report card project in September 2009, it was forced to give the DPWH an overall rating of “Incomplete” for lack of complete information. Data on procurement, preventive maintenance, and agency enforcement—the Procurement for Civil Works Office and the Bureau of Maintenance in particular—were not given or were unavailable
Problematic Provisions of R.A. 9184
Dealing with errant contractors is a reality the DPWH and other agencies implementing government’s infrastructure projects face. The Construction Industry Authority of the Philippines (CIAP) was created in 1980 to promote, accelerate, and regulate the construction industry. Its implementing boards are the Philippine Contractors Accreditation Board (PCAB), Philippine Overseas Construction Board (POCB), Philippine Domestic Construction Board (POCB), and the Construction Industry Arbitration Commission (CIAC). When then Congressman Rolando Andaya, who would later become budget secretary and subsequently chairman of the Government Procurement Policy Board, introduced the bill that was to become R.A. 9184 in April 2002, he told his colleagues that the bill would feature a two-envelope system for bidding. The first envelope, he said, would contain the technical proposal, which would be given a pass or fail mark by the Bids and Awards
Committee. The second envelope containing the price offer would be opened but only in the case of bidders whose technical bids were accepted. The lowest bidder would win because the bid price would be the only parameter that matters at the opening of the second envelope. Andaya also said the law would require contractors to post warranties and performance bonds so that quality was expected to become less of a problem. Bonds and warranties remove any dispute on whether some proposals are technically better than others, and ensure that the price bids being entertained comply with the minimum technical requirements. However experienced contractors have observed that the garnishing of performance bonds and warranties is unheard of. Retired and former public works undersecretary Edmundo Mir also stated that the DPWH would often “conveniently forget” that there are such provisions, failing to go after contractors when defects are found even within the warranty period, conducting remedial repairs itself. “The reality is that contractors have already demobilized and had left the project site when defects are discovered within the period of warranty” says Mir “… it would be difficult and costly for the contractor to do the repairs.” Arguments on what be covered by warranties and on whether defects can be attributable to the contractor or considered an “act of God” or unforeseen events like typhoons, floods, and natural disasters are often met by the DPWH. Mir adds that in other cases performance bonds turn out to be falsified or non-binding. Sometimes the contractor did not actually
pay the issuer of the bond, which is likened to an insurance policy that is useless because the policy owner had not been paying his premiums. Collusion among bidders is rampant and very hard to prevent according to a former DPWH official familiar with the problem. The World Bank, in its recent Transport for Growth report, identified and provided examples of possible collusion arrangements. However, a large part of the problem has been corrected through the introduction of the computerized Civil Works Registry of contractors in 2002. Unfortunately waivers and misuse has limited its effectiveness. Formal and informal reports about bidding irregularities and contractor pre-selection are received by the DPWH’s national Bids and Awards Committee (BAC). The BAC is at a loss and not does know what to do since these reports are not compiled, and there is no clear manual of operations.
Major infrastructure projects proposals, particularly Official Development Assistance (ODA) funded, undergo a thorough evaluation by the National Economic Development Authority’s Investment Coordinating Council (NEDA-ICC). This is to ensure at entry that only projects that have economic internal rates of return (EIRR) higher than 15 percent are included in the shortlist of projects supported with public funds. However, some large projects that Cabinet members or even the president lobby for and support, though evaluated by the NEDA
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If you don’t change “ the system, no matter how
A laborer works on a DPWH highway bridge in Manila. The Philippine government has vowed to spend more on infrastructure this year and in the next few years. The DPWH has initiated a number of programs which seek to minimize corruption .(photo by Reuters)
technical staff as having low EIRRs, still got to be approved , according to former NEDA Director General Felipe Medalla. The said practice gained the label ‘supply driven’ for the procurement system.” A combination of harassment and exchange of favors during the annual process of national budget approval is also another way politicians are able to influence bureaucrats at the national center. This power over government depart heads allows politicians extraordinary influence in promotions and the filling of vacant positions in the local bureaucracy like the DPWH among others.
“Pork barrel” projects of district representatives were resumed in 1990 when congressmen received allocations of P12.5 million per year. This amount progressively rose as presidents needed congressional support for the executive’s legislative agenda, increasing to P65 million pesos per representative in 2001. The ballooning of congressional pork barrel funds has led to a reversal of roles. In former years District Engineers of the DPWH and the National Irrigation Administration (NIA) say lawmakers used to go to their offices seeking projects for constituencies. In recent times District Engineers have to go to congressmen to ask for projects. Despite the provision that requires that announcements be made for provincial projects and those to be funded out of congressmen’s Priority Development Assistance Fund (PDAF) or “pork barrel” fund, the practice of contractors being pre-selected by district representatives persists.
A former public works official remarked that “Contractors are very clever and with the help of their patrons or padrinos, can easily get away with overpriced projects.” As for “pork barrel” funds, or projects funded out of the congressional district funds, the DPWH often only administers documents to comply with regulations and leaves local executives to dictate technical specifications to suit preferred contractors. In 2002 the members of the legislature controlled more than half of the DPWH’s infrastructure budget of P34.8 billion. Public works officials complained then that they “no longer have control over infrastructure projects. That “members of Congress have the final say on everything” and the department only implements projects. But the worst probably has still yet to come. During deliberations for the national budget in both the House of Representatives and the Senate, arguments for slashing Official Development Assistance (ODA) funded projects in favor of increasing funds under the discretion of legislators were often heard.
A recent effort to help curb corruption in the public works sector is the Construction Sector Transparency Initiative (CoST), an international project aimed at increasing the transparency of information on public sector construction projects, particularly in the period from contract award to completion of implementation. The Philippines is one of the CoST pilot countries. Premised on the core concept “Get What You Pay For,” CoST ultimately aims to make procuring entities and construction companies
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much, how good, how effective your witch hunt will be, no matter how good your investigations are, it will not stop… You come up with whistleblowers just to pin down a person or some persons, what happens? The whistleblower gets killed, he loses a job, government has to put him in a witness protection program, and they will spend more money at the end of the day. So my approach has always been to do something about the system, do something on the policies, do something about the procedures.
accountable for the cost and quality of public sector construction projects. The raw disclosures will be made publicly available and will be analyzed by an independent technically qualified body, which has been labeled the “Assurance Team.” Interviews with Dr. Primo Cal, representative from the academe, and Lito Madrasto of the Philippine Constructors Association, representative from the private sector, indicate that the CoST in the Philippines is not yet fully operational. Madrasto believes that a transparency initiative like CoST should focus on systems, policies, and procedures. He explains: “If you don’t change the system, no matter how much, how good, how effective your witch hunt will be, no matter how good your investigations are, it will not stop… You come up with whistleblowers just to pin down a person or some persons, what happens? The whistleblower gets killed, he loses a job, government has to put him in a witness protection program, and they will spend more money at the end of the day. So my approach has always been to do something about the system, do something on the policies, do something about the procedures.”
Preemption of budgets by congressional allocations leaves the agency with limited
resources for high priority projects. Still, when projects are selected, a problem arises because of “very low commitment to original designs.” This means that project selection is of high quality at entry, but there are problems when it comes to design. This is costly. “New approvals of design alterations usually result in a new round of paperwork that is one and-a-half times longer than the prior process,” said former DPWH Undersecretary Teodoro Encarnacion. Increasing recourse to design-build contracts, following GPPB guidelines, is expected to “fast track implementations, reduce costs, avert collusion, (and) encourage cost-efficient designs.” The design of Official Development Assistance (ODA) funded projects is problematic when the design and project identification task is led by the bilateral funding source and consultants with strong links to prospective service providers. Detecting collusion and overpricing will depend on the procuring entities’ capacity for estimating and analyzing project costs. This is especially important where the cost estimates, as stated in the approved budget for the contract (ABC), become the cap for bid prices, at least for nationally and locally funded projects. As for foreign-assisted projects where ceilings are not allowed, projects coming from unsolicited proposals, and those that use financing schemes like BOT, cost analysis will help determine the financial viability and economic returns of projects.
(QAU) may be lax in calling on performance bonds of a contractor and the department may exercise forbearance by just compelling a contractor to remove, repair, or replace portions that feature bad workmanship and substandard quality. But such slippages will still have to be captured in the Constructors Performance Evaluation System (CPES), with the concomitant risk of disqualification at the post-qualification stage for new projects.
The routine inclusion of BAC observers and of receiving communities and LGUs in the flow of information and documents may significantly reduce the scope for padrinos who would intercede with DPWH officials on behalf of their friends in the construction industry. Based on articles published by Philippine Center on Transnational Crime (PCTC) and Philippine Daily Enquirer.
Transparency has been a major theme in anticorruption initiatives. Civil society monitors, the media, international donor and financial institutions, and even other government agencies have stressed the need for a free and open access to information surrounding public works projects. But a culture of secrecy still prevails in the construction sector. When former police general Hermogenes Ebdane was DPWH secretary, offices within the department, the Quality Assurance Unit (QAU) included, were barred from releasing information to the media without clearance from higher-ranking officials. There continue to be instances when a congressman asks the DPWH secretary to go easy on a contractor caught red-handed so to speak by the QAU. But a paper trail documenting the misdeeds of the contractor will constitute proof, and make it easier for the DPWH to apply the rules on erring contractors.
“areContractors very clever
and with the help of their patrons or padrinos, can easily get away with overpriced projects.
Presence of Observers
The Philippines is known for its vibrant civil society whose engagement in monitoring construction projects has been institutionalized in a number of projects. The country also has oversight institutions mandated to perform monitoring functions. Procurement monitoring, on the other hand, has been a challenge as few civil society members have the adequate resources, time, strong motivations, and skills and knowledge required for monitoring this tedious and complex process. The same is true for monitoring processes during the planning and budgeting or pre-procurement phase. Monitoring is rendered pointless when findings to do not reach those who should act on them. Post-qualification Major slippages in quality and delays of more than 15 percent would be grounds for disqualification according to the system of post-qualification mandated in the GPRA. This could be a system that will create a demand for updated records on quality and work schedule slippages. The disincentive to bidders is clear—higher net incomes that are earned because of deviations from the quality required by the contract may generate savings in the short term. But they can create risks to a contractor as failure to get passing marks in quality will lead to disqualification. The DPWH’s Quality Assurance Unit
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Tabaco port 1
Rehab of Six Ports to ease sea travel PPA constructs on reclaimed land by Ed Velasco
With the increasing number of passengers travelling through the maritime routes every year, the Philippine Ports Authority or PPA has lined up several port construction projects involving expansion, renovation and rehabilitation that started in October 2012 and will be completed by April 2014. The Philippine Ports Authority (PPA) is an attached agency of the Department of Transportation and Communications (DoTC) tasked to operate and manage all government sea ports and oversee privateowned ports in the country. Based on its statistics, the agency noted that the volume of sea passengers travelling within the archipelago have quadrupled particularly due to the increased use of the roll on, roll off (RoRo) transport system. The ports that will undergo rehabilitation, expansion and renovation are those in Tabaco in Albay, Pio Duran in Sorsogon, Ormoc City in Leyte, Lucena City in Quezon, Dumaguete City in Negros Oriental and Dumangas in Iloilo. Except for the Lucena port, all the other projects involve reclamation works where the ports will utilize recovered land stretching between 2-3 kilometers. Engr. Reynan Parafina, PPA project development department officer-in-charge, said the port projects will cost roughly P556 million but the funding will not come from the private sector since the projects are not part of the public-private partnership (PPP) program of the government. PPA initiative Engr. Parafina disclosed that the budget for the port constructions will come from the corporate funds of the PPA since the agency is one of the few government-owned and controlled corporations that earn consistently for the past several decades. 16 | Philippine Construction&Design May - June 2013
He said the projects’ aggregate cost is far lower than its original projection due to revisions made in project costing upon the instruction of then DoTC secretary Mar Roxas. The PPA official said that the agency was directed to source its construction materials like cement, steel, gravel and sand from local suppliers and hardware stores in the area where the projects are located. As a result of this initiative, the PPA was able to trim down costs to around P90 million-P95 million per port project. The original cost estimates were from P120 million-P150 million. The contracts were awarded in September 2012 to the following contractors: Makapa Construction for Pio Duran port; JC Pinon Construction Inc. for Lucena port; Mac Builders for Ormoc City port; WTG Construction and Development Corporation for Dumaguete City port; Sunwest Construction and Development Corporation for Tabaco, Albay port; and RRL Builders Corporation
Port projects are more difficult because the engineer must be able to work very well with the contractors. Those who are capable of building ports first secure special licenses from the Philippine Regulatory Commission or PRC before they can accept port construction jobs.
---Engr. Ding Gonzales, Engr. Reynan Parafina
and WTG Construction and Development Corporation for Dumangas, Iloilo port. Hydrological tests Contractors of the projects conducted hydrological tests to determine the size of steel and type of cement to be used. Tests were conducted in October 2012 and lasted for about a month. Just like the North Harbor in Tondo and the Batangas port in Lucena City, The construction will be done using local labor and engineers. Parafina was quick to add that there will be no need for foreign consultants since local contractors and engineers will suffice. “Design and materials wise, it will be the same. Once the NTP is handed down, construction will immediately begin for all the ports mentioned and so expect the simultaneous opening once they are completed,” the engineer explained. All of the ports will be located in a 3-3.5 hectare reclaimed area thus enabling them to design all uniformly. Type 2 cement and steel sizes 12,’ 14’ and 16’ were used for all the projects.Type 2 cement is being used for structuresthat will are in constant contact with water like dams, culverts and seawalls.
You can just imagine the big relief “ once the port near that area is finished. It
will not only expedite travel but will also encourage tourists to come to Sorsogon to watch our Butanding (whale shark)
---Engr. Ding Gonzales
Construction materials According to Engr. Parafina, Type 2 cement is the strongest among the four types of cement in the Philippine market and therefore suitable for port construction. This type of cement can withstand powerful waves and strong currents particularly in Dumangas, Pio Duran and Albay, all of which are known to be typhoon-prone areas. The construction will involve massive pile foundation driving to a depth of 2-3 meters. According to Parafina this depth will provide strength to the foundation enough to withstand the force of the waves. Steel of size 16’ is used in portions where ships will dock to absorb the force of both the vessels and the waves. The Pio Duran port that lies along the San Bernardino Straight is known to experience the strongest waves and water currents. Project duration will be between 360-540 working days. The PPA OIC is optimistic that with proper evaluation of the project by contractors, the projects will be completed at the given time frame. “They will finish that on time otherwise they will lose money,��� he said. A specialty job Construction of ports is quite different from projects on land. Because of this, the PPA official said that the agency contracted the services of engineers from the private sector with expertise on port construction to assist their in-house engineers to ensure the quality of the projects. Engr. Ding Gonzales, Engr. Parafina’s colleague in the agency, said “Port projects are more difficult because the engineer must be able to work very well with the contractors. Those who are capable of building ports first secure special licenses from the Philippine Regulatory Commission or PRC before they can accept port construction jobs.” According to Engr. Gonzales, the hardest portion of the job is the use of the crane to do the pile driving since it will be on top of a barge. He further said that both the engineer and the crane operator must have the necessary technical knowhow and skill attuned to the nature of the work. Engr. Gonzales added that the most difficult part in pile driving for off shore projects like port construction is in locating the most solid portion of the reclaimed area. GPS solution With the use of modern technology like global positioning system or a GPS apparatus, the hardest and solid portion of the reclaimed area can easily be located, identified and evaluated. “Off shore pile driving is about three times more difficult than in flat lands,” the engineer explained.
Lucena port 2
Ormoc city port 2 Another difficult stage in the construction of the port is the excavation of at least three to three and a half meters deep for the pile. Construction done on dry and flat land only entails one to oneand-a-half meters of excavation for pile driving. Once completed the port projects will be able to accommodate three to four times the present number of passengers and ship traffic in any particular port area. The port in Matnog, Sorsogon, the last town in Luzon that is about 25 kilometers away from Pio Duran port, presently has a passenger traffic of 6,000/day and capable of berthing 30 ships. “You can just imagine the big relief once the port near that area is finished. It will not only expedite travel but will also encourage tourists to come to Sorsogon to watch our Butanding (whale shark),” Gonzales explained. Earthquake factor Earthquake is not seen as a major consideration in any of the port projects since there will be no high rise structures that will be built inside the port facility. As such, the PPA official disclosed that there are no anti-earthquake devices installed in the project since each port project will only have the three-storey office building. Engr. Gonzales said that as far as he knows there has been no recorded death in any port in the Philippines due to earthquake. “What I heard before were several birth deliveries in ports, not death from earthquake,” Gonzales said in jest.
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Our foremost aim is to unite all civil engineers in the Philippines towards building quality, durable, livable and cost-efficient structures
---Engr. Romeo Momo
Engr. Romeo Momo 18 | Philippine Construction&Design May - June 2013
Engr. Romeo Momo:
A“Hands’On”Captain on PICE wheel by Ed Velasco
Devotion to the professional civil engineering profession and strong work ethics combined with good health is the key to a good balancing act
hen a powerful typhoon in 1987 damaged the Gamut Bridge in Surigao del Sur, trade with the neighboring provinces of Surigao del Norte and Davao del Sur as well Butuan City was badly disrupted. Agricultural products of the area could no longer be transported to buyers and people wanted the bridge repaired speedily. They appealed to the regional office of the Department of Public Works and Highways (DPWH). Engineer Romeo Momo, a young Engineering Aide 3 with the Department of PublicWorks and Highways (DPWH), was assigned to do the job and he enthusiastically took a direct role in the repairs. He no doubt felt that the honor of the DPWH was at stake and, particularly a personal challenge for him, since it was near Butuan, his home town. No doubt his personal knowledge of the problems the people were suffering also motivated him. Most estimates were that the bridge repairs would take at least a month. However with Momo’s ‘hand’s on’ contribution the bridge was fixed in 12 days instead of the expected one month. The people were so pleased that some nicknamed him “Superman.” Momo is proud of this achievement in that he was able to serve the people
of his province. He was promoted to be Regional Director soon after, probably in recognition of his achievement. He also managed to have about 350 kilometers of dirt roads paved when he was still regional director, a feat that not many can claim. Momo can rightly be proud of his record as an engineer with the DPWH. His performance was undoubtedly recognized by his superior’s and peers because he was soon promoted to be the undersecretary of DPWH, reporting directly to the secretary. He was also voted by other engineers to head the Philippine Institute of Civil Engineers (PICE), recognition of his achievement as a civil engineer. Momo is known for his “hands’ on” management style for projects assigned to him. His civil engineering peers have recognized his superior engineering achievements. They honored him by electing PICE national president for two consecutive terms, the only engineer so honored in the history of the organization. As president Momo now seeks to upgrade qualifications of all Philippine civil engineers who are members of the PICE to be at par with engineers of first world countries.
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By next year our ‘PCE Mode’ will start. This ‘PCE Mode’ will determine the number of hours and training an engineer acquired with PICE during the practice of his profession. This should encourage nonmembers to be part of the PICE, the sole professional association for Filipino civil engineers
---Engr. Romeo Momo
PICE members can compete abroad
“Every PICE member is equipped with the engineering know how that should be recognized not only in the Philippines but also abroad,” the undersecretary explained in an exclusive interview with Philippine Construction and Design magazine. Momo said that being a member of PICE is helpful at most, in as much as clients often first ask the engineer if he is a member of the PICE prior to commissioning a project. But he believes that professional ratings can be improved. “By next year our ‘PCE Mode’ (Practice of Civil Engineers) will start. This ‘PCE Mode’ will determine the number of hours and training an engineer acquired with PICE during the practice of his profession. This should encourage non-members to be part of the PICE, the sole professional association for Filipino civil engineers” according to the PICE president. The ‘PCE Mode’ program will give scores to attendees for every seminar hosted by the organization for its members. ‘PCE Mode’ will encourage new designs for projects as there is stiff competition for engineering designs all over the world. The organization, which just celebrated its 75th year in November 2012, is so organized that it has various divisions that trains every member to become an expert in their field. Foremost of these divisions are the hydrology and research and development. These two areas are being prepared for as there is nonstop demand for more technology in civil engineering due to rising cost of materials, labor, amenities and even fees.
P200 membership fee
Every activity of PICE aims to give members up-to-date information
20 | Philippine Construction&Design May - June 2013
and know-how about new developments in engineering techniques. For just P200 annual membership fee, any Filipino registered civil engineer in the Philippines or abroad can be a member of this organization. “Since the beginning of this organization, it already made a point that it will become a partner for efficient practice of the civil engineering profession as well as partners of businesses to make sure that edifices built for any purpose is a work of a qualified engineer,” he said. So far, Momo said PICE has 71,000 civil engineer members, including those working abroad. This number is about 70 percent to 80 percent of civil engineers in the Philippines. “Our foremost aim is to unite all civil engineers in the Philippines towards building quality, durable, livable and cost-efficient structures,” the undersecretary explained. Very recently, PICE, under Momo’s term, has begun working with local government units in inspecting that their buildings is safe from earthquakes. Under this setup, any PICE regional office has the power to recommend/suggest to mayors or governors to strengthen buildings that might possibly fail during earthquakes. LGU’s can also request the PICE for recommendations if they want to commission any engineer, particularly those specializing in structural works, to work on their projects. Naturally those with high PCE rating will always be recommended. “That scenario is worth watching because we will soon complete our listing of structural engineers that can help provide any LGU with the best and most competent engineers in the country. The best engineers are here, not abroad,” Momo emphasized. Can recommend condemnation Another potentially good power of PICE is that if the findings
of its inspectors-engineers conclude that there are severe violations for any structure to the Building Code, they can recommend the condemnation of the edifice, either to the city or provincial government. “If officials do not act on our recommendation, then potential structural failures can be directly blamed on them” according to Momo, the PICE national president.
are followed. There is no shortcut for efficient, quality and costeffective performance,” the undersecretary explained.
Momo said he has not encountered any problem in his almost twoyear stint at PICE presidency. He attributed this very healthy working condition at the organization to his very competent staff. “I am blessed for having very qualified people who surround me. The only challenge for me, I guess, is how to divide my time as undersecretary and PICE president,” he added.
Despite his exemplary record, there is nothing exceptional to be seen in his resume except that he was an honor student in high school; an academic scholar at the Mindanao State University; a holder of public administration degree from the Bukidnon State University; and a graduate of BS Civil Engineering from the University of Mindanao. He lists the speedy repair of the Gamut Bridge and the paving of coastal roads in Surigao del Sur as among his most interesting feats. The two projects he completed with flying colors were 20 years apart but the result were both career-defining.
Momo is very grateful that he is able to serve the very demanding job as national president of the organization of civil engineers as well as concurrently undersecretary for regional operations. He thanks God for his good health. Thus he is able to attend to the rigorous activities of both positions. Although he is now 60 years of age and just five years away from retirement, Momo is at the pink of health. He does not require medications for high blood pressure, diabetes, prostrate and other such medical problems common to persons of his age, particularly these with stressful jobs such as he holds.
After repairing the severely-damaged bridge, he was named regional director; and after overseeing the paving of coastal areas of his province, he was named undersecretary by then President Gloria Arroyo. Since climbing the bureaucratic ladder, Momo is now able to play golf with his favorite buddies in either Eagle Ridge or Intramuros for at least four to five times a month. He is also able to find time with his wife, Eleanor, and four grown up kids. Asked what his golf handicap, Momo replied with a smile, “My wife.”
No shortcut for quality work
“My guiding principle is to see that all in the glossary of projects
Since the beginning of this organization, it already made a point that it will become a partner for efficient practice of the civil engineering profession as well as partners of businesses to make sure that edifices built for any purpose is a work of a qualified engineer
---Engr. Romeo Momo
May - June 2013
How to Manage a Construction Project A construction project is generally carried out on a large scale, and hence it needs proper management and supervision in all areas. This article focuses on managing a construction project properly... A construction project is one that includes managing the building of structures, right from the start to the finish. The professional that is responsible for the overall management is referred to as a construction project manager. There are a wide range of factors that are required for the project to be successful. These factors are classified into project designing, cost management, time management, quality management, contract management, and safety management.
How to Manage Risks in Construction Projects Construction Project Planning You firstly need to meet with the owner, developer, and supervisors, to plan the complete project. This will include the main purpose, area of development, facilities, resources needed, amenities to be provided, project risks, work schedule, and many other aspects. Preparing a blueprint will give you a rough idea to move to the next step. You may even need to conduct geographical surveys for finding out the suitability of the project. Contracts with Parties Involved The next step is to carry out all contract formalities about the project. The manager has to establish and review the contracts of all entities connected with the project, such as the owner, the architect, and the builder. The manager can also get the contracts checked by a professional, regarding any criteria that has to be met before commencing the project. Obtaining Required Permissions The contracts may consist of certain conditions regarding legal formalities to be completed with city or state government authorities in the area. Since there is land and other geographical elements involved, you need to consider obtaining relevant licenses. Check if you need to obtain permissions from authorities such as the U.S. Environmental Protection Agency and
Leadership in Energy and Environmental Design (LEED). Budget Planning The next step would be to create a plan for financial resources. You need to calculate individual costs to be incurred on each part of the project. Obtain a budget and divide the costs for layout, building, plumbing and water system installations, electrical fittings, roofing, flooring, and so on. Owing to the possibilities of construction management risks, keep a small amount of finances aside for additional requirements and modifications. Resource Allocation The construction manager is responsible for hiring all workers and allocating duties for the project. This stage also includes buying raw materials and arranging for construction tools and equipment. Make sure the workers use available resources in the best possible manner, to keep costs in control. The material and resource management has to be executed as per the budget set in the initial planning phase. Work Coordination and Communication The construction manager is supposed to oversee the duties assigned to all workers on the project. He has to coordinate work among personnel, such as the builder, architect, engineers, and other workers. See to it that the workers are doing their job as planned, and are working according to the deadline. Communicating with other members of the project will resolve most problems that tend to show up unexpectedly. Site and Safety Inspection Site inspection is one of the most essential tasks in a construction project. This is important to supervise workers in certain areas of the project, and also to make sure about the safety standards maintained. Inspection also helps the manager know about
22 | Philippine Construction&Designâ€ƒ May - June 2013
the actual status of the work being done. You need to adhere to safety and building codes administered by the Occupational Safety and Health Administration (OSHA). Safety codes are to be documented and presented to the safety inspector, if asked for. Proper communication with the construction team is a must when it comes to managing the project efficiently. Today, there are many advanced construction management software that aid managers to keep a track of the design, budget, progress, deadline, resources, etc., of the project. Managing construction projects requires a great amount of physical efforts, so you need to be physically fit to handle miscellaneous on-site management tasks. By Stephen Rampur, Last Updated: 9/27/2 Read more at Buzzle: http://www.buzzle.com/articles/ how-to-manage-a-construction-project.html
How to Manage a Project Successfully
Effective project management is essential if an organization wants to achieve the goals within the set budget and time. The following article provides a step-wise procedure to manage projects successfully. Managing a project successfully means completing it on time, within the stipulated budget and providing a quality which matches with the set standards. One of the most important things to do is to find an effective project manager - someone who is apt at budgeting, problem solving, communicating,
analyzing, leading, motivating and directing. If the project manager is good, there is nothing that he can not achieve! Steps for Managing a Project Step # 1 As mentioned earlier, the first thing to do when managing a project is to appoint a qualified and experienced project manager. Next, have the most efficient project management tools and software in place. Follow this up by defining the scope of the project. The scope should have all the details with regards to the budget of the project, the time frame within which it should be completed as well as the goals that the organization expects to achieve, through the completion of the project. Step # 2 Have a written project plan in place. If it’s a large project, divide it into parts and have separate plans for each of them. By proper planning, everyone has a clear idea of how to complete the tasks, when to complete them and what all things, equipment, tools, etc., would be needed to do the job. Once the plan has been worked out, it’s time to choose the most professional employees, to become a part of the project management team. Step # 3 As it is the people who are ultimately
responsible for successful completion of projects, so hire the right people for the right job. If an employee has a specialization in a particular area of work, see to it that he is given that very job to do. Next, make each and every person working on the project aware of his responsibilities. Discuss individual as well as collective goals with the team members and set expectations from each one of them. Have a proper structure in place, wherein everyone knows whom to report to or take suggestions/consultation from, in case of a work related issue. Likewise, have the policies and procedures to do various jobs in place too. By doing this, you are ensuring that everyone performs their job in the most professional manner. Step # 4 Align the individual goals to the overall corporate goals. Communicate to the team members how critical their jobs are in the completion of the project and how important it is in meeting the goals of the organization. If the team members are made aware of how relevant their jobs are for meeting organizational goals, they are much more likely to take them seriously. Step # 5 To ensure that the team members are meeting their goals and to improve upon their performance, the project manager should monitor and evaluate them on a regular basis.
A project’s progress as well as the results that have been achieved, should be documented from time to time and the same should be communicated to all the stakeholders, be it clients, supervisors or the management. By keeping a track of how the project is shaping up, a manager can make any necessary corrections that might be required, to minimize potential failures. Maintaining quality control is an indispensable part of completing projects successfully. Step # 6 Finally, when the project is complete, measure and ascertain whether the goals have been met. Generally, however successful a project has been, there is always a room for improvement. So, find the areas/jobs in the project that could have been done better as well as the ways in which they could have been tackled. This will help the organization in improving upon the deliverance of its future projects. If a project is managed efficiently, it has many benefits for the organization, such as, it leads to enhanced productivity, minimization of risks, reduction in costs, besides achievement of the predetermined goals. Thus, it can be said that by following the simple steps mentioned above, any organization can look forward to enjoy all these benefits and maximize its profits! Based on an article by Aastha Dogra.
May - June 2013
Cambodia “suspends” construction of dam on Mekong
Laos has decided to suspend the construction of the Xayaburi dam on the Mekong River. The decision, announced by the Ministry of Foreign Affairs in Vientiane is linked to the protests of environmental groups and Cambodia. Vientiane’s decision follows protests from Cambodia and ecological groups that the dam will have serious consequences for millions of people. The dam would be the first of 11 planned constructions, but experts
BAM International subsidiary wins construction contract for Holcim Indonesia cement plant.
PT BAM Decorient Indonesia’s client for the work is PT ThyssenKrupp Polysius Indonesia, the contractor responsible for construction and erection of the new clinker and cement factory for Holcim.
BAM will construct almost 90 reinforced concrete structures that are required for the plant. These vary from support structures up to 120m high for the process equipment to electrical stations and concrete silos. The largest of the six silos will be 80m high. BAM Decorient intends to recruit as much as possible local workforce from Tuban and the surrounding area to execute the work, which has a contract period of 22 months.
had called for a moratorium of 10 years to complete studies on their impact. The construction of the dam, was subject to the go ahead from an Intergovernmental Commission (MRC) comprising stakeholders from the Mekong countries, namely Cambodia, Laos, Thailand and Vietnam. In December, the MRC had said that no project should go forward before further assessments were completed on the environmental impact of damming the
river. There is talk of 11 dams, which would add to the five already built by China in the highest part of the river. The Xayaburi would be the first after the Mekong crosses the Chinese border and a group of experts had recommended a 10 year halt to the construction of dams to assess the potentially hazardous environmental and socio-economic impact. Nevertheless a Thai company, Ch Karnchang announced it has signed a contract worth 1.7 billion dollars with the Xayaburi Power Co to build a dam to get 1,290 megawatts. The announcement was followed by protests from environmental groups that claimed the dam would prevent fish from swimming upstream underminining the food system of millions of people. A spokesman said the project had to be subjected to further tests to assess their environmental impact. “The construction of the dam must stop until the conclusion of the studies,” said Surasack Glahan. The Commission’s conclusion was backed up by Cambodian protests and the Vientiane announcement that the construction “is suspended, postponed.”
Bombardier Partners with Thailand’s Kasetsart University Bombardier Transportation has agreed with Kasetsart University to provide rail engineering expertise to students and instructors for the next five years. Experts from Bombardier will deliver lectures on advanced signalling technology and will assist the university in developing signalling and train control courses. Bombardier will also participate with the university in various signalling and train control technology events and offer support in preparing relevant presentations and research papers. “Bombardier is our key strategic partner for the development of the Rail Engineering program at Kasetsart,” said Associate Professor Dr.Thanya Kiatiwat, Dean of the Faculty of Engineering, Kasetsart University. “Our students will benefit from Bombardier’s expertise in rail transportation through on-the-job training and special lectures from experts in the field, especially on signalling and rolling stock technology. This collaboration along with our industrial connections will help us achieve the goal to quickly and efficiently provide engineers, technicians, and members of staff to the Thai rail industry.” Richard Hunter, Vice President Asia Pacific, Bombardier Rail Control Solutions, said, “Bombardier’s long standing relationship with rail operators in Thailand make it the ideal partner for Kasetsart University to create an engineering talent pool in the country. The university’s engineering faculty and students will have access to our signalling expertise to develop their skills for future assignments. Innovation is part of the DNA at Bombardier, which has been developing export oriented activities through its large base in Thailand, supporting the country’s economic development by creating new jobs.” The Global Graduate Program is Bombardier’s fast-track development program that prepares individuals for a future leadership role within Bombardier. It is an 18-month program combining on-the-job and off-the-job development worldwide. In three separate six-month assignments, it offers global graduates a true business experience in different divisions, functions and countries.
24 | Philippine Construction&Design May - June 2013
May - June 2013
Caterpillar to Boost China Excavator Production by 80 percent Caterpillar will boost excavator production in China by 80 percent through the expansion of its manufacturing facility in Xuzhou, slated for completion in 2016. Caterpillar also plans to begin production of wheeled excavators at the Caterpillar Xuzhou Limited (CXL) facility beginning in early 2014, further expanding the range of products and services Caterpillar is offering to customers in China and other growth markets. “As we have done around the world for more than 85 years, these investments in China are made with a long-term view toward the market and building out an industryleading range of products and support services for our growing base of customers in China,” CEO Doug Oberhelman said. “Our continued investment in China also provides a base of operations in country to support our growing exports from the United States to China. In fact, in the last seven years as we have grown our operations in China, Caterpillar’s exports from the United States to China have more than doubled, supporting jobs in the United States and proving the benefits of trade for both countries.”
CXL has become Caterpillar’s flagship for manufacturing operations in China. Currently, Caterpillar has 17 facilities in China and another nine under construction. Currently, Caterpillar produces wheeled excavators in Grenoble, France, and that will continue, the company says. Wheeled excavators produced in China will position Caterpillar to compete in China and other growth markets with this product. “Caterpillar has been successfully
producing excavators in China for nearly 20 years, and we are expanding our production capabilities as this market continues to grow,” said Gary Stampanato, Caterpillar vice president with responsibility for excavators. “Bringing production of wheeled excavators to China will give our customers more options and will position Caterpillar for continued success.”
The U.S. Environmental Protection Agency (EPA) and the U.S. Justice Department announced today that Cemex, one of the largest producers of Portland cement in the world, has agreed to pay a $1.4 million penalty for Clean Air Act violations at its cement plant in Fairborn, Ohio. In addition to the penalty, Cemex will spend an estimated $2 million on pollution controls that will reduce harmful emissions of nitrogen oxides (NOx) and sulfur dioxide (SO2), pollutants that can lead to childhood asthma, acid rain, and smog. “Today’s settlement will help keep harmful air pollution out of Ohio communities, protect children with asthma and prevent region-wide public health problems. Through this action, the United States and Ohio will secure reductions of harmful emissions by requiring that Cemex adopt state-of-the-art technology and take immediate steps to control pollutants,” said
Ignacia S. Moreno, assistant attorney general for the Environment and Natural Resources Division of the Department of Justice. The settlement addresses modifications Cemex made to its cement plant without obtaining the proper permit, as required by the Clean Air Act. Major sources of air pollution are required to obtain permits which require the installation of pollution control technology before making changes that would significantly increase air emissions. Today’s settlement ensures that the proper pollution control equipment will be installed to reduce future emission levels. Cemex will install state of the art control technologies that will reduce annual emissions of NOx by approximately
26 | Philippine Construction&Design May - June 2013
Cement Maker to Pay $1.4 Million in Violation
2,300 tons and SO2 by approximately 288 tons. Cemex, a global building materials company provides cement and concrete products to construction projects in every sector. Cemex is one of the largest producers of cement in the United States, owning and operating 14 Portland cement kiln plants. Its U.S. headquarters is located in Houston. In January 2009, Cemex agreed to reduce emissions and pay $2 million fine to settle Clean Air Act violations at another one of its cement plants, located in Victorville, Calif.
Indonesia construction gears up for growth The Indonesian construction sector is expected to hugely benefit with the highest increase in gross domestic product level in 18 years. Construction companies as well as toll road operators are racing to expand their business to take advantage of the increase in economic growth. A major milestone was the approval of the National Land Acquisition Law by the House of Representatives in December that year, which cut the time for acquiring land used for public facilities. The law was strengthened by a government regulation
signed by President Susilo Bambang Yudhoyono that set a maximum time of 583 days for the land acquisition process for public projects, detailing the procedures for acquiring land. Previously, no period had been set so acquisitions could be stalled for years. As an archipelagic nation consisting of 13,000 ‘official’ islands and some 4,000 more spread over 5,000 km from Sabang off the northern tip of Sumatra to Merauke on the southeastern coast of Papua, the government has realized that connectivity is critical. Linking up resources, industries and people
represents the key to more sustainable economic growth. In May 2011, President Susilo Bambang Yudhoyono launched a 15year economic development master plan, known as MP3EI, which carves Indonesia up into six economic corridors. The plan to develop these corridors will cost Rp4,000 trillion in investment, nearly half of annual national GDP. The funds are expected to come mainly from the private sector, with the aim of catapulting the country into the ranks of the 10 biggest economies in the world by 2025.
First metro railway project kicks off in Sri Lanka
A private company announced that it has kicked off Sri Lanka’s first metro railway project estimated to cost 600 million U.S. dollars to tap into the country’s post-war development. Airport Express Air and Rail Company hopes to connect the country’s only international airport with the center of the capital through a metro railway that will reduce the present travel time of around two hours to only 25 minutes. Company Chairman Parimalan Rajo Isa Michael announced that funds will be raised by selling stakes of the company’s equity to overseas companies. “Right now the economic situation is such that foreigners are confident to put money into the country. We are confident that we will be able to raise the required capital,” he said. The 30km track will hold a train that has the capacity to carry 400 passengers and will complete nine journeys in a single day. The venture is expected to give a boost to the booming tourism industry in Sri Lanka.
Chinese investors plan to build three industrial estates in Indonesia with each estate covering around 5,000-hectares in their initial stages, Indonesian Industry Minister MS Hidayat said. The estate to be developed for mineral refining and other segments is likely to be located in Kalimantan and Sulawesi, he added. The MoU was slated to be signed in the first quarter of next year and currently both parties are carrying out feasibility studies for the planned investment, Hidayat said. When the MoU between the two governments are signed, the Chinese government will bring their companies will organize local firms, he added.
China To Set Up Three Industrial Estates In Indonesia
Fraud reports from ADB in 2012 The Asian Development Bank’s (ADB’s) Office of Anticorruption and Integrity (OAI) reported receiving a record of 240 complaints in 2012. This resulted in 114 new investigations with sanctions imposed on 42 companies and 38 individuals. The majority of the complaints involved fraudulent misrepresentations about qualifications, technical abilities and experience of consulting companies, contractors and persons wanting work from ADB financed contracts. “At a time when many donors are implementing austerity measures, those entrusted with development mandates have an obligation to use a steadily declining pool of development funds. When development funds are diverted or misused, people with real needs are deprived of basic services, rights, and opportunities,” said Clare Wee, Head of the OAI. May - June 2013
The Emperor House Co Ltd, the Thai builder of luxury homes, has teamed up with Laotian conglomerate the Insee Group to tap the luxury self-built home market in Laos, expecting to sell two houses worth almost 120 million baht this year. Suratchai Kuenghakit, managing director of The Emperor House, said Laos’ economic potential is strong, with foreign direct investment of US$15 billion last year, up from $3.4 billion in 2011. The company and its Laotian partner set up a 50:50 joint venture, called The Emperor House by Insee Group, in Laos with registered capital of 5 million baht. The company’s Thai houses average 80 million baht, with the maximum price surpassing 300 million for a usable area of 2,800 square metres. Manotham Phetsiliseng, deputy director of the Insee Group, said the Laotian government is boosting people’s salaries
Laos luxury Housing takes flight
each year until 2015 including by 1.5 times in both 2012 and 2013, thereby boosting local purchasing power. “Housing demand in the luxury segment exists mainly in Vientiane,” said Mr Manotham during a visit to Bangkok yesterday. He said the average house price for the Laotian luxury segment is $2 million or 59.8 million baht. “Labourers’ wages are lower in
Indonesia builds tsunami shelters
Sixteen trillion rupiah ($1.6 billion) has been allocated by the Indonesian government to construct shelters in areas affected tsunami-related disasters.The projects are aimed at saving people from possible tsunamis. At a press conference last February, Syamsul Maarif, the chairman of the National Disaster Mitigation Agency, said: “The construction of shelters and the supporting necessities to anticipate possible tsunami has commenced this year with 1 trillion rupiah already allocated to finance the projects.” Syamsul said that the private sector is engaged with the projects. “We have to build those shelters as the existing technology cannot predict the occurrence of earthquakes. The shelters would be built in a radius of 500 meters so as to facilitate people to get there within 30 minutes,” the BNPB chief said, adding that the shelters would be equipped with sanitation utensils and first aid medical assistance to provide necessities for people affected by a tsunami. 28 | Philippine Construction&Design May - June 2013
Laos than in Thailand, 150-250 baht a day against 300 baht in Thailand. But construction materials must be imported, so construction costs actually come out at 10-15% higher than in Thailand,” said Mr Manotham. The Emperor House earned revenue of 303 million baht last year, missing its target by 10% due to labor shortages. It expects revenue of 340 million baht this year.
Lack of information on Cambodian Chinese funded railway Locals are demanding dialogue with the Chinese firms behind a proposed multibillion dollar rail line to Preah Vihear province, an NGO report released yesterday highlights the dearth of information that has been made available on the project. Chinese company Cambodia Iron Steel Mining Industry Group (CISMIG) has said it will build a 404 km railway connecting a new steel mill in Preah Vihear province and a new port in Koh Kong province, in a project estimated to be worth a total of $11.2 billion that is supposed to get underway in July. CISMIG holds a licence to explorer, though not extract, iron ore on a massive 130,000 hectares of land in Preah Vihear’s Rovieng district. Kheang Sochea, a Rovieng local and Kuy ethnic minority representative, said the community held a meeting with local NGO Development and Partnership in Action last month to raise their concerns about the project impacts and likely impact on their lives. “What the community wants is a discussion with the company, so we can try to avoid the negative effects mining has had in other counties,” he said. … “In a 2009 Chinese language article, CISNIG’s chairman stated that during exploration for iron ore, extensive coal deposits were discovered, which would be used to fuel an onsite power plant, and to use in the steel plants furnaces,” the report states, “Although this is the biggest infrastructure project in Cambodia’s history, only a limited amount of information is currently publicly available,”
Malaysia Construction to grow by 13% Malaysia construction is expected to fare better this year compared to 2012 with many projects proposed on the pipeline though “political risks” seems to be casting a shadow over the industry with the impending 13th general elections Matthew Tee, president of Master Builders Association Malaysia (MBAM), says: “The construction industry has fared well in 2012 on a year-on-year basis, with a growth in excess of 20%. In 2013… we are looking at 13% growth this year.” Tee says the drivers in the industry include the awarding of mega projects such as the mass rapid transit (MRT), light rail transit (LRT) and initiatives under the Economic Transformation Programme (ETP) by the Government, and their fullscale implementation. WCT Bhd deputy managing director Goh Chin Liong believes the industry will further expand with the rollout of several high-impact projects in 2013. In 2012, the country saw the implementation of key projects likes the KLIA2, MRT Line 1, Light Rail Transit Extension, Pengerang Rapid and the widening of the PLUS Highway, he says. In 2012, the challenge the industry faced was the shortage of a skilled workforce. Tee foresees this to be a continuing problem entering 2013. “Catalysts for 2013 would be the quick
implementation and award of mega projects such as the second line of the MRT, ETP-related projects, Wawasan Merdeka, the Tun Razak Exchange, the River of Life project and the Southern Double Track, to name a few. “The risk would be the actual implementation of these projects, as sometimes bureaucracy can delay the physical implementation of a project,” Tee adds. Mass Rapid Transit Corp Sdn Bhd chief executive officer Datuk Azhar Abdul Hamid says the Land Public Transport Commission is carrying out the feasibility study now and expects it to be completed by the third quarter of 2013. “It is still difficult to say at this moment. Awards will probably only start early-2014 subject to the project management method chosen,” he explains. On the industry outlook, Azhar says it should continue to be good but players who compromise on quality and good planning or execution will find it challenging. “Work will be aplenty on all fronts, including the MRT, but resources, especially skilled workers, will be a challenge. With (our gross domestic product) growth of more than 5%, Malaysia is better positioned than most (countries),” Azhar adds.
Transport infrastructure project (RM mil)
Vietnam’s Public Works to Boost Construction Industry Work on the 105.5 km Hanoi-Hai Phong highway had started with first phase complete last year. The VND22 trillion (US$1.25 billion) project will include nine major bridges, 21 medium-sized bridges, and 22 fly-overs. The government plans to begin work on an expressway from Noi Bai to Lao Cai this April. Land acquisition for the 245km, VND20 trillion ($1.14 billion) expressway is nearly complete. In the south, work on the 51km HCM City-Long Thanh-Dau Giay highway began in the second quarter of 2009. It will cost VND15 trillion (US$ 858 million). Also the minister of construction, Nguyen Tran Nam had said that his ministry plans to spend VND6 trillion (US$ 342.2million) to build 24,000 low-income apartments.
Thai skilled construction workers get higher wages While SMEs are crying over the blanket Bt300 wage, fierce competition in some industries and the scarcity of skilled workers is pushing the daily pay of some above Bt500. For the past eight years, Narong Jampatho, 30, a tile layer, has never found difficulty in finding someone willing to pay him Bt700 per day, allowing him to earn Bt20,000 a month. Some of his relatives from Nong Bua Lamphu are also in Bangkok at his persuasion. “It’s not a permanent job, but I enjoy my freedom. I work to get paid and rest when I want to. Working for a company is tiring and pays less. The government’s wage hike policy has no merit for us, as we’ve been earning at least Bt500 a day since the floods,” he said. Narong is one of about 10,000 workers living along Keep Moo Road, which, according to the master’s thesis of a Sri Pathum University student, is now the country’s largest day labour market, mostly for the construction industry. Prakiat Kaewkhamharn, 48, an electrical system contractor, said he pays Bt600 for tile layers. “It’s high but we have to take it, as we can’t find other workers.” For big or small projects, wage negotiations are necessary as the skilled workers quote at least Bt500. These contractors have to yield to get the best workers at the lowest rates. As the labour deficit - now topping the list of business risks for property and construction firms in 2013 - could worsen. With a low unemployment rate of 0.6 per cent, the construction, infrastructure and manufacturing industries are now facing a shortfall of about 200,000 hands. Bank of Thailand data also show that the labour market has tightened. Employment was up 0.7 per cent to 39.2 million as of September from the same month last year, while the average pay check also rose by 7.9 per cent. The rush for manpower is anticipated to pick up when the government’s mega infrastructure projects are kicked off. While they will attract minimum-wage workers, it also means abundant openings are out there for skilled workers who can charge well above Bt300 a day.
May - June 2013
gigantic, amazing, supreme bauma calls… … and they all come: An impressive 530,000 visitors from over 200 countries converged on the Messe München exhibition center between April 15 and 21. Not only did this edition of bauma break all previous records for exhibitor numbers and exhibition space, it also attracted the highest number of visitors ever. "This is very good for our industry in these turbulent times and it will certainly give it a boost," said Johann Sailer, Chairman of the Construction Equipment and Building Material Machinery Association of VDMA and President of the Committee for the European Construction Equipment Industry (CECE). The Philippine private sector was among the thousands of delegates in the show. All in all, there were 26 companies which sent big delegations to the show. Companies worth mentioning are Monark Equipment Corporation, D.M. Consunji Inc., and Inframachineries Corp. among many others. The number clearly reflects the current booming state of the country’s construction industry. Proportion of international visitors higher than ever Klaus Dittrich, Chairman & CEO of Messe München, is more than satisfied: "Our exhibitors were delighted with the quality of the visitors here and with the international spread represented among them. Good business has been done here. With over 200,000 visitors from outside Germany, the number of international attendees was higher than ever before. The response this year has simply been outstanding." The 'Top Ten' countries of origin among the visitors were: Germany, Austria, Switzerland, Italy, the Russian Federation, France, Netherlands, Great Britain, Sweden and Poland. Indonesia, bauma’s partner country this year, was also strongly represented, with a high-ranking political delegation and around 800 visitors. Top quality and world-spanning scope "For Herrenknecht, bauma 2013 certainly showed itself from its best side. The trade audience here was first class and very global.
We were able to communicate in a very targeted way our broad portfolio and our top innovations in tunneling and mining," said Dr.-Ing. E. h. Martin Herrenknecht, Chairman of the Board of Management of Herrenknecht. Ron DeFeo, Chairman and CEO of the Terex Corporation, was equally impressed: "As the largest show in our industry, bauma represents a unique opportunity to meet with a multitude of our customers from around the world." And Johannes Weiermair, Managing Director of SBM Mineral Processing, added: "For us bauma 2013 was a tremendous event and a great success. On the one hand because of the truly world-spanning international scope among the visitors and on the other because of the very high level of contacts." Order activity high In total, 3,420 exhibitors – 1,346 from Germany and 2,074 from abroad – from 57 countries presented their latest products and innovations in construction and mining machinery at bauma 2013 on a record exhibition space of 570,000 square meters. And they did so with amazing success, as Stefan Heissler, Member of the Liebherr-International AG Board of Directors, confirmed: "This has been an absolutely positive trade show for us. We welcomed customers from all around the world at our booths and we signed up lots of new orders. In some product sections we exceeded our expectations by a long way." Michael Heidemann, too, Chairman of the Management Board of Zeppelin
30 | Philippine Construction&Design May - June 2013
Baumaschinen GmbH, is more than happy: "From the first day on, the booth of Zeppelin and Caterpillar was almost overrun with visitors. We have sold more machines at bauma 2013 than ever before and have set a new record." bauma was just as successful for XCMG, as its Vice President, Yanmei Zhang, reported: "XCMG solicited orders with a total value of over 10 million euros for its products which is around 120 units of machines. We had a good economic return on our investment in the show." bauma – unrivaled Number One bauma is the uncontested Number One trade show for construction machinery, building material machines, mining machines, construction vehicles and construction equipment. Raul Garcia, Marketing Director of ULMA, commented: "bauma is a must for us. We are very satisfied with this year's fair and will be taking part next time, too." Frank W. Reschke, Sales Director and Member of the Management Board of Masa GmbH, was also very satisfied with the outcome: "We came here with high expectations, and these have all been exceeded. bauma is immensely important, for us there is no alternative and it is the Number One event by far." The next bauma takes place from April 11 to 17, 2016 in Munich. Further information: go to www.bauma.de or email email@example.com of Fairs & More Inc. Fairs & More Inc. is Messe Muenchen Inc.’s Philippine Official Representative. Advertorial
May - June 2013
MRT 7 proposed station design
Make way for MRT-7
Foundation construction to last one year by Ed Velasco The Metro Rail Transit (MRT-7) is planned to run from SM North in Quezon City to San Jose del Monte, Bulacan, a distance of 23.4 kilometers. The bidding process and preparation for the project went smoothly and surprisingly to many, very quickly, in comparison with other similar projects. Approval of MRT-7 was approved in a record time of just six months, since it was announced by Transportation Secretary Mar Roxas. The approval of MRT-7 came earlier than expected as MRT 4, 5 and 6 still remain in the pipeline due to difficulty in finding private sector partners. Once completed, MRT-7 will be the fourth metro rail built since the original Light Rail Transit 1 (LRT 1) from Baclaran to Monumento was constructed in 1984. The project was finally awarded May last year as a joint venture between
Marubeni Philippines Corp. and DM Consunji Inc. It is under the Build-Gradual Transfer-Operate-Maintain and Manage (BGTOMM) scheme as proposed by project proponent, San Miguel Corporation (SMC). “The first thing that will be done by government is to identify and pay for the right-of-way the parties that will be affected by the project,” disclosed Electrical Engineer Richard Reyes, Manager of Marubeni Corporation. The Department of Finance confirmed that the government is currently sourcing funds worth about P4 billion to pay for expropriation. “Most of the funds will come from road shows abroad because we cannot source that huge amount from the domestic market,” according to Finance Undersecretary Gil Beltran.
32 | Philippine Construction&Design May - June 2013
4th Metro Rail Transit system
MRT-7 is the first of a two-phase project that SMC will construct in six years. It is also the more expensive with 4 B pesos budgeted for land expropriation alone. SMC, also through DMCI and Marubeni, plans to construct a 22-km, six-lane access road from San Jose del Monte, Bulacan to the North Expressway tollgate in Bocaue, Bulacan at a cost of $1.235 billion. SMC will operate it under a 25-year buildoperate-transfer scheme. The MRT-1 was extended in 2010 reaching as far as Roosevelt Avenue. MRT-2 runs from Santolan Road to Recto Avenue while MRT-3 is from Taft Avenue to North Avenue. MRT-7 stands to become the longest among the existing four MRTs as it shall have 14 stations spanning 23.4 kilometers. The distance between stations averages 1.64 kilometres. To date, Marubeni and DMCI have yet to decide on the elevation of the railway as its master plan has yet to be completed. However, Reyes said the average elevation practiced globally is between 4 to 6 meters. “It will be on that height range. No more, no less,” he said. Marubeni and DMCI will start
construction on September or October this year and to complete the project in 3½ years. MRT-7 will be powered by 100 percent electricity. It will run on a 750-volt direct current (DC) and not alternating current (AC). “Only 10-15 percent will be allotted to AC when train is already running because DC is much safer,” he said. Once operational, the Transportation department expects that MRT-7 to carry 600,000-800,000 passengers daily and expected to ease commuter traffic in Metro Manila.
Strength in foundation
Setting foundations for MRT-7 will take more than a year because there are portions of land in Quezon City and Bulacan that are not solid, thus requiring foundations to be buried on piles. “There will be portions that will require only 2-meter deep foundation; some portions will need more than 20-meter long series of piles to transmit the load of the concrete, people and railways to the hard ground,” the engineer explained. Reyes further said that the load of every light rail coaches with its corresponding passenger capacity is around 20 tons. A complete set of four light rail coaches weight a total of 80 tons. Each light rail coach or bogey has a seating capacity of 300 passengers. A four-coach light rail has therefore a total seating capacity of 1,200 passengers. Light rail coaches are designed to have standing passengers that double the number of seating passengers. Estimating an average person to weigh 60 kilograms, then the total weight of a fourcoach light rail would be 144 tons plus the 80-ton light rail. The 224-ton average load per journey will increase by at least 30-40 percent for the people who are queuing to buy tickets. Naturally all of these loads will be considered when constructing an elevated structure. Fortunately that majority of soil in Quezon City is solid, made of adobe or soft rock, thus putting foundation on piles will be lessened according to Reyes. “If the soil under is hard enough or composed of adobe, then there is no need for pile foundation,” he said.
There is also to be no manual pouring of cement during the constructing of MRT-7. Concrete is to be mixed in transit. “If concrete is mixed manually there is a big probability that it is not evenly blended. That’s where disaster begins because it could possibly result in
structural failure” said Reyes. Moreover all cement and concrete to be used will first be tested in the laboratory. “If the cement-concrete ratio test fails, then the mix will be redone. This process is very important because the life of the people is the main consideration,” he explained. Once the cement-concrete ratio batch is acceptable at the plant only then will these be brought to the delivery truck for construction use. He also added that if transit mixers are not used and concrete is mixed manually, the construction of the project could take five years.
Like MRT-3, MRT-7 is a high technology elevated railway that will adhere to the policies and conditions of American Railway Engineering and Maintenanceof-Way Association (Arema). Arema is the
The first thing “ that will be done
by government is to identify and pay for the right-of-way the parties that will be affected by the project
---Engineer Richard Reyes
MRT 7 route map global organization that inspects elevated railways to ensure they follow global standards, according to Reyes. The association was formed on October 1, 1997 as the result of a merger of three engineering support associations, namely the American Railway Bridge and Building Association, the American Railway Engineering Association and the Road Master’s and Maintenance of Way Association; along with functions of the Communications and Signals Division of the Association of American Railroads. Reyes said all Arema-certified light rails are considered 100-percent safe.
When asked what earthquake intensity does any Arema-certified light rail can withstand, the engineer replied: “Even up to intensity 10 there will be no problem.” Arema has so far approved 168 elevated railways in 96 countries, including US, Japan, South Korea, Singapore, Brazil, Thailand, Qatar, Norway, Canada, Germany, France and Italy. The Philippines has three.
May - June 2013
sales & marketing Management
Construction To win more business SELL
“If I wanted to be in marketing I would not have studied engineering (or architecture)” is an understandable statement from contractors and construction professionals. Yet in many business organizations it is the sales department that brings in the most money. For many contractors their total sales effort is often limited to merely getting a set of plans from the customer, making an estimate and submitting a bid, then waiting for the outcome of the bid. To get most jobs they depend mainly on price and their reputation and very little on other factors like most other business’s do. However with construction business booming competition for the best jobs is also getting fiercer. So much so that a number of construction companies are beginning to consider the idea of hiring sales people to promote sales in order increase company revenue. But these business owners are often frustrated in not knowing how to manage a sales person to get the results they want.
Since most business owners do not want to make sales calls they would need to hire sales persons to make the sales calls and get the increased revenue they are looking for. That is how a market economy works. Selling however is often misunderstood. It is not exerting pressure on a prospect to buy but really is more about customer satisfaction and understanding customer needs and the opportunities these needs offer. Knowing these marketing skills can increase sales, reduce business risks and delivers higher profits. With increase in the number of competitors, customers have realized that there are some good deals to be made and have increased the number of quotes from more competitors
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and also for more information. Thus you could be quoting for more work that is taking longer to prepare. Worse, you could even be losing jobs to competitors with better marketing knowhow, and at times, even to these with higher bids. So consider a change of approach. Take more time to meet with prospective customers to have better understanding of their project and their concerns, which in effect is selling. Then follow up with quotations to find out if there is more information needed. If you do not win the job find out the reason why. If you do not wish to make the calls yourself then hire a sales person and prepare a sales and marketing plan. Failure to have a systematic and focused sales and marketing plan is often the reason why a number of small and medium size firms struggle to secure business. They rely mainly on price and their reputation to get contracts. Successful companies often
to win more orders. Once a week owners or managers need to meet with sales people, review the sales efforts of the previous week and have a plan for the coming weeks. A sales plan starts with knowing how much business is required to cover overhead and desired profits. You need to determine how many phone calls, appointments, and face to face meetings can a sales person make in a week and how many sale persons are needed to meet sales plan targets. To find out it is best to ask your salespersons then keep track of their performance. Many companies have discovered that an effective sales person will average a minimum of three to four phone calls per hour and two to three face to face meaningful meetings a day. Though these figures do not sound much but it is sufficient if sales persons are calling the right prospects. One company has set its sales minimum performance targets at 30 phone calls per week, 10-15 face to face meetings (interviews) each week and 8 bids or proposals per month. These figures are the minimum required. It should be kept in mind that telephone calls are primarily to arrange appointments with persons involved in decision making.
have written sales systems and marketing plans that enable their sales people to work effectively and aggressively in getting more business, new customers and contracts.
Sales Management Made Easy
Having a sales plan begins with a business owner or sales manager requiring sales people to a required standard of performance excellence. That means sales people are required to maintain a certain number of calls per day, as well as a number of actual face to face meetings per week, a certain number of proposals per week and total proposal number per month. Keeping score enables you to know what how you are doing. Selling is a numbers game. When knowledgeably competent sales persons make regular calls on good prospect who require the services you offer then you will get your share of the business. If you fail to make the sales calls then more likely your competition, who probably do make these calls, will get the business. Just like in basket ball, it is the team that makes the most shots that win the game. Remember always that the more sales calls the more signed construction contracts you will achieve. Having sales people keep score and records is usually a challenge because sales people traditionally do not want to be tied down to a set number of required calls. They like to be free. They do not like to keep record of numbers and be held accountable to a minimum standard. In short they do not like the discipline of a written plan and they feel that their ability to talk convincingly will give them the success they need. Regrettably without the discipline of a written plan and the minimum numbers that the plan demands will usually result in failure with the sales people not able to deliver the results you are looking for
Construction Sales Tracking
Have your sales persons focused on the right projects and new customer targets by managing the process. Once a week (usually Mondays) check your sales performance, reviewing every construction sales lead, phone call and customer meetings with your salesperson. Make new lists of customers to call so that salespersons are focused on big prospects.
Sales people have the tendency to stop going for new accounts as they get comfortable with their routes and customers they have. Your weekly meetings should encourage them to be on tack calling on old customers and new prospects. Keeping records will keep sales people focused and the tracking system will enable you to know how your sales persons are doing.
Sales Call Reports
Salespersons shall maintain a record of all calls to prospects. These calls will include the following: 1) Date; 2) Type of Call; 3) Name of Prospect or Customer; 4) Contact Information; 5) Customer need and opportunity; 5) Date and time of follow up. “Type of Call” refers to the kind of contact with customer, be it a phone call, sales interview, bid offering, etc. Phone calls and emails are primarily to set appointments with customers. As earlier mentioned, in basketball games are not won in how good one is in dribbling or passing but in taking good shots at the goal. In selling only face-to-face meetings are effective. Customers do not tell you what you need to know about the potential project. Also you start to build a relationship in face-to-face meetings. Here you are able to read your customer’s body language. With more meetings their will greater chances of success to happen. Calling on good prospect more frequently is the key to success for any sales team. J. Paul Getty once said: “Rise early, work late and strike oil!” In sales we can say, to be successful:”Rise early, work late and strike often!” Based on articles by George Hedley and Chris Ashworth
Keeping Track Records
Owners and managers must keep track of weekly sales efforts and the numbers on how sales persons are performing if they are
May - June 2013
CONTRACTOR s PROFILE
62-story Shangri-La Hotel rises at The Fort Monolith Construction banks on 200-column strength by Ed Velasco
here is a glut in hotel construction in the Philippines for the past four years. Just move your eyes and you will see several of them. These structures are amazing either because they have a unique design or have special construction features. Inside The Fort, now considered the center of business of the Philippines, there is one hotel that is bound to overtake all its peers once fully constructed in mid-2014—the seven-star, 62-storey Shangri-La luxury hotel. The construction started in May 2011. It is located at the corner of 5th and 30th Avenue near the Mind Museum. Now on the second floor of construction, engineers of the project said the structure is so solid starting from the basement up to the top floor that it can even withstand an intensity-10 quake with no major structural damage. “No room for mistakes. Shangri-La will not allow it that’s why they don’t want us to finish this in just 14 months,” said Engr. Joyce Eugenio, quantity surveyor of Monolith Construction and Development, Inc., the contractor of the project. Shangri-La is the fifth project of the developer inside the posh The Fort. Three of the five—Fort Residences, Fort Legend and Beaufort—have already been finished. The other still being constructed is the Aura at the civic center, a shopping center of the SM Malls.
Aiming to be on top
The hotel is owned by Shangri-La Beijing and touted to be another prestigious landmark in the Makati landscape. “They are very specific in design because they need it to have their application for seven stars approved,” according to Eugenio. Once completed, the hotel will file an application with the Hotel and Restaurant Association of the Philippines (HRAP) for a seven star classification and the certification will be given by the Societe Generale de Surveillance (SGS) after determining the quality of its facilities based on their specific criteria.
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“The podium is its main attraction. No other hotel in the Philippines has a high elevation in the second and third floors at 6.5 meters,” the 27-year-old engineer explained to Philippine Construction and Design. These floors will have several grand ballrooms where top dogs in Chinese politics and Hollywood will converge on its opening night in 2014, according to reports. Had the Air Transport Office hasn’t decided 62 storeys is the maximum height of all structures in The Fort, the hotel could have gone higher. The maximum elevation, according to the engineer, is needed because on top of the posh area is a busy route for planes going to different destinations.
“What people see abroad can also be seen here because if we don’t have the materials we import it abroad,” she said. The materials that will be used for the project like the granites and glass for the upper floors will be sourced outside. One of the subcontractors is Arlo Glass, a specialist in glass installation works. The glass itself is imported. About 90% of the glass used were sourced from suppliers from Singapore, South Korea and Thailand. The all-glass panel design adheres to the “green” aspect of most structures. Green means the structure is environment-friendly, minimizing reliance on electricity produced from fossil fuels or battery and uses more sunlight and wind for everyday use. There are portions of the hotel in the upper floors with no air-conditioning units to allow guests the option to experience fresh air.
No room for mistakes. Shangri-La will not allow it that’s why they don’t want us to finish this in just 14 months
---Engr. Joyce Eugenio, 12,000 square foot floor foundation
The hotel is built on mat foundation and not footing. Eugenio said the mat foundation alone is six times the amount of the putt foundation. Likewise, Skidmore Owings and Merrill, the chief designer-architect-planner of all Shangri-La Hotels around the world, said that the adobe beneath is non-bearing and there will be no floating involved. Cement will be poured on the foundation and not pre-cast. Cement is sourced from LaFarge, one of the biggest cement companies in the country today.
Monolith Cranes However, she didn’t mention how much was spent for the mat foundation of the hotel. “Ask Shangri-La I don’t want to lose my job,” she said smiling. The mat foundation means the entire floor area of the hotel is buried three meters under. “So you can imagine a whole 12,000 square-foot floor submerged under with 200 columns and mostly made of 36-inch steel. That’s how solid, tough and durable this structure is,” Eugenio said without batting an eyelash. The 200 columns represent more than double the prescribed number for such edifice, according to Eugenio. Each column has a range of strength from 8,000 to 10,000 psi. Each floor of the entire building has strength of 6,000 psi capable of carrying load capacity equivalent to 10,000 people at any given time. About 150 bags of cement (40-kgs each) are poured in one column and each column is not made of pre-cast concrete. The columns are almost round in shape when viewed from above. Steel used in the foundation are up to grades 40 and 60 while diameters range between 12-36 inches, according to Eugenio. Elevation of other floors, except the second and third, will also be 0.5 meter higher the ordinary 3.2 meters. Less than 30 percent of total steel used is made of 10-inch diameter steel and 70 percent using either a 32” or a 36”. The strongest portion of the hotel is its 4-storey basement up to the 8th floor, the engineer said. “With that number of columns and strong PSI who will worry about an intensity 10 earthquake,” Eugenio said. Another engineer of the project, Engr. Teresa Tolentino, said all structures built by their company starting 2002 had used the Autocad system in computing all the loads needed to ensure strength and stability. The sway of intensity
10 earthquake is equivalent to passing of vehicles through rough road at 40-60 kph. “Before that year, computation for quake load, wind load, live load and dead load were not included that’s why many structures were weak and may not withstand even an intensity-7 quake," Tolentino explained. Aside from having an adobe support underneath, the area is approximately 75 meters above Manila Bay, thus making it comfortably safe against flooding.
When it comes to fire protection, the hotel’s advantage is the shot crete for every division of room. Each floor has 35-40 rooms all divided by shot crete and not CHB (concrete hollow blocks). Eugenio said only expensive structures can afford shot crete because it is thrice the cost of CHB installation. “CHB is just for apartment and projects under tight budget, not for fabulous hotels like this. When you use CHB, you need sand, water, cement then you mix it. Shot crete is just sprayed on slab with 4,000 PSI strength against fire,” Eugenio explained. Water sprinklers are also installed every 10 meters, capable of spilling 50 PSI of water. Each floor has three fire exits to enable guests to escape freely when there is fire. It also has fire detector devices in every floor that can sense fire before it breaks out. “They can escape even before a very small fire occurs as the smoke alone can trigger the detector to ring,” she said. Aluminum cladding with four and five mm sizes is also applied for added protection. “Shot crete and aluminum cladding are both anti-fire devices; they don’t have to worry about any untoward incident,” Eugenio said.
May - June 2013
DDT Konstract Inc. carries the badge of Triple A rating Building a reputation for quality service with 400 engineers, 200 architects and 300 tower cranes by Ed Velasco The 26th Fort Office is among the numerous skycrapers that are being built at the Fort in Global City, Taguig.
DT Konstract, Inc. (DDTKI) is a 14 year old construction company that has made a name in the industry. Through the years, it has earned the badge of a Triple A rating from the Department of Public Works and Highways (DPWH). It is currently ranked No. 4 in the list of DPWH of approximately 5,300 accredited contractors. So it is no surprise that the company has successfully constructed over 400 projects since it started in 1998. An average of successfully completing nearly 30 projects each year since the company started operating. DDT Konstract Inc. started over as a subcontractor and now prides itself on winning mega projects both from the private and public sectors. It has over P600 million in paid-up capital, P1 billion in authorized capital stocks and about P 31 billion contracting capacity.
That’s why we cannot file a leave of absence, even if we want to go to Boracay or Hong Kong, because literally all of us engineers have a full schedule
----Engr. Gerry Abella
DDTKI was founded by Danilo D. Tamayo, an engineer himself, who also seats as its president and chief executive officer. Tamayo owns about 95% of the business.
The executive officers of the company include Hermina Coronel, Vice President for Finance; Cynthia P. Tamayo, Vice President for Engineering & Materials Management; Francisco delos Santos, Vice President for Operations; and Robert Grindulo, AVP for Operations. The project in charge of the Trion Towers project is Engr. Rodrigo Cabornay. Corporate philosophy, vision and values The company’s corporate philosophy revolves around all the stakeholders in the industry and stated as ‘partnering with clients, professionals in the construction industry, sub-contractors, and suppliers in providing quality service’. Part of their guiding philosophy also includes their endeavour to share their knowledge as a means of giving back to the industry that gave them a niche in construction. As clearly stated in their corporate profile, DDT Konstract Inc. abides by their vision as follows: “To remain trusted in servicing the need of our clients and continuously develop our resources and system. In so doing, we have to maintain or gain more effectiveness in our direct production system to support our vision of steady growth.” Since excellence is their primary concern, the company also pronounces their mission of giving utmost importance to client satisfaction by continually improving the means of delivering projects in the safest way possible, of highest quality attainable, at the shortest time achievable, and at a reasonable cost. In order to fulfil its vision and mission, the company takes to heart the corporate values
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it has established that focus on customer satisfaction, quality, pursuit of excellence, integrity, social responsibility, long term focus, empowerment, bias to result and concern for the people. P15B projects At the moment, DDT Konstract Inc. is constructing six mega projects with an estimated aggregate cost of P15 billion. From 2011 up to mid-2015, more than 400 engineers and 200 architects of DDTKI will have their hands full overseeing these projects. The six big projects include the following: the seven-storey Ayuntamiento Reconstruction Project in Intramuros, Manila; the 50-storey Shell Residences near the Mall of Asia in Pasay City; the 35-storey SM Light Residences in EDSABoni Ave.; the 40-plus storey Banco de Oro sub-head office in Ortigas; the 101-storey Horizon 101 in Banilad, Cebu; the Hamilo Coast luxury beachfront houses in Nasugbu, Batangas; and the 40-plus storey new Globe Telecoms headquarters at the Fort at the Bonifacio Global City. Among the projects, only Hamilo Coast has recently been completed while the others are scheduled to be turned over in 2015. “That’s why we cannot file a leave of absence, even if we want to go to Boracay or Hong Kong, because literally all of us engineers have a full schedule,” remarked in jest Engr. Gerry Abella. Of the six on-going projects, the most expensive is the SM Light Residences near the MRT Boni Station and taking the longest time to be built. The project is slated to be finished in four years, by 2015. SM Light Residences will be a row of
condominiums composed of nine towers, each with 30-plus storeys. Sixty percent of the project was awarded to DDTKI while the remaining 40 percent was awarded to two other contractors, according to Abella. To date, DDTKI completed a number of commercial and industrial projects in the country. Some of these include the following: 25-storey Lexmark Office Building in Cebu, Hanjin Philippines Headquarters (24 storeys), 25-storey Fort 26th Office Building in Taguig City, Abreeza Mall in Davao City, Greenbelt 5 in Makati City, the 42-storey Lancaster Suites Tower 1 in Mandaluyong, Hobart Bridge in Silang, Cavite and the Ayala Port Data Center in Makati City.
We do not choose our projects. Clients give the project plan to us and the rest is history
----Engr. Gerry Abella
Equipped and ready Modesty aside, according to Abella, it’s very seldom that DDTKI joins contract bidding in order to get a project. “Most of our projects are given to us. That is our difference with other contractors who have to go through the bidding procedures to get contracts,” the engineer explained. DDTKI has exhibited its capability to undertake big projects with its inventory of heavy equipment now numbering almost 700. The equipment owned by the company include 200-plus backhoes, pay loaders, bulldozers, cranes; 200 dump trucks, graders, clamps, breakers; and 300 tower cranes, earthmovers, concrete pavers, excavators and jackhammers. The company also maintains a 1.7 hectare precast concrete yard that is capable of producing up to 8,000 square meters of precast concrete wall panels per month. The facility enables DDTKI to quickly respond to the needs of their projects. On the other hand, the company maintains good relations with other materials suppliers who have been doing business with them for years. “If we need gravel, sand or any construction materials all we need to do is dial them up and it will be delivered right to our doorstep,” the engineer explained. Battery of engineers, architects To join the battery of DDTKI engineers and architects is not a walk in the park. The minimum qualification for an aspirant is his sterling educational background. More often than not, applicants come from Mapua, University of the Philippines (UP)
or University of Santo Tomas (UST) and those hired most likely belong to the top 20 of the engineering and architectural board passers. Abella said almost half of DDTKI engineers and architects are below 35 years old as the owner believes that fresh minds possess great potential, are dynamic and adept at implementing new technologies and methods in architecture and engineering. Right now there are more than 1,000 employees and 70 percent of these are engineers and architects. Career growth is also assured at DDTKI because those needing additional learning experiences are enrolled either at the UP or Mapua Graduate Schools. “We concentrate on the more advance versions of Autocad because we are also into design. If your people are not abreast with modern designs you will surely be left behind. The name of the game is being upto-date always,” Abella explained. Diverse expertise DDTKI is considered a highly diversified construction firm, capable of handling different kinds of construction projects. Its services include pre-construction (budgeting, value engineering, constructability analysis, design enhancement, and life cycle analysis), general contracting, construction management and design/build. While most of its projects involved high-rise buildings and infrastructure developments, DDTKI also provides services involving construction work on reclaimed land. DDTKI took part in the Poro Point reconstruction in La Union; Cebu Reclamation and Port Irene expansion in Cagayan Valley. All these projects are located near the sea and required pile foundation. Abella said that there are only few contractors are capable of this kind of
projects, where there is a need to construct pile foundations. During pile foundation, backhoes and excavators are carried by barges. Only few engineers in the Philippines are capable of supervising a project involving transport of heavy equipment to barges. “We do not choose our projects. Clients give the project plan to us and the rest is history,” he said. The engineer clarified that DDTKI can combine use of advance construction methods with conventional techniques. The advance techniques being used by DDTKI are the application of shotcrete, spraycrete and aluminum cladding while the conventional method is through setting of concrete hollow blocks or smooth finishing. According to Abella, the advance technique is more durable, faster to finish and requires fewer personnel but it costs more than twice the conventional mode. The latter, on the other hand, is cheaper, less complicated and can be done even with just one carpenter and few helpers. Abella further disclosed that the advance mode of doing divisions or partitions inside the building was done only some five or six years ago so that is why only a few contractors are capable of doing it. “That is why you cannot blame project owners and developers if they keep on choosing big contractors because they have the expertise and capability to deliver quality service,” stated Abella. The roster of clients that have contracted the services of DDTKI include prominent land developers that include the following: Ayala Land, SM Investment Corporation, Robinsons Land Corporation, FilinvestAlabang Inc., Ortigas& Company LTD, Pacific Concorde Properties Inc., Greenfield Development Corporation, and One Asia Development Corporation.
Pico de Loro officials are all set to start the groundbreaking of their newest project.
May - June 2013
“Do your best” says David
Meet the builder of some of Asia’s top projects by Ed Velasco
Engr. Isaac David
Recently, Engr. Isaac David, president of AlloyMTD-Philippines, went to Calamba City to witness the groundbreaking of his biggest project to date—the first ever P2.5-billion regional government center (RGC), the biggest public private partnership (PPP) project so far. The three-hectare project RGC project will put government offices in one location, thus people need not to travel to Metro Manila to transact business with any government agency. The concept of RGC is patterned after Putrajaya in Malaysia. The place is declared center of government offices so that people in far-flung Malaysian states need not to travel to Kuala Lumpur to transact business there. David has been involved in many projects similar to the RGC in many parts of the world. AlloyMTD-Philippines, his current firm, is present in 14 countries and constructed many similar sized projects. With over 40-year engineering experience David has traveled and worked in many countries in Europe, Africa, Australia and Asia. The experience enabled him to occupy a variety of executive positions as consultant, president or commissioner He has achieved a lot since he started to work after finishing a civil engineering degree from University of Sto. Tomas in 1972. David did not make name
overnight. He created his niche in the civil engineering profession in a gradual yet subtle way. In layman’s term, he made a name “slowly but surely”. That long time frame gave him the experience to master the craft of civil engineering. The climb to the top of corporate ladder gave him not just recognition, but also personal satisfaction at jobs professionally done as well as receiving its financial rewards. According to him, the projects he does, he manages with careful planning and systematic execution, since errors would result in tremendous costs and losses. Engineers and planners need to be accurate like the measurements of a global positioning system (GPS) according to him.
Built longest expressways, bridges
He has designed, executed and overseen some of the major bridges and roads in the Asia and the Philippines. Such as the 34-kilometer Bang Na in Vietnam; 775-kilometer North-South expressway
40 | Philippine Construction&Design May - June 2013
in Malaysia; the 36-kilometer new SLEx in the Philippines; the Subic-Tipo Road; and the soon-to-be finished hydro power plant in San Mariano, Isabela. He is one of the engineers that has experienced design and construction of a wide variety of engineering projects ranging from ports, highways, expressways, bridges to high-rise buildings so that today he is a recognized expert and icon though he humbly he never dreamed of becoming one. That all-around expertise earned him many accolades from his peers such as the Society of Philippine Accredited Consultants, a group of expert engineers that awarded him an ‘Exemplar award’ in recognition of his numerous momentous projects here and abroad. In 2007, he was appointed president and chairman of the board of Manila Toll Expressway Systems (Mates), the firm that operated the South Luzon Expressway (SLEx). He held that position until January 2012. When Sltc-MTD sold its stakes to Citra and San Miguel Corp. last year, David was not only retained but was promoted as president of AlloyMTD for its Philippine operations. “For every work I do I make it a point that I do my best”, according to David. In addition to his appointment as president of one of the biggest infrastructure firms in Southeast Asia, David has held
other prestigious positions like president, for 15 years, of Filipinas Dravo Corp., the biggest engineering consultancy firm in the Philippines; president for three years of United Caddtech Philippines, Inc., a consortium of top 7 engineering firms in the Philippines; two-term president of Council of Engineering Consultants of the Philippines from 2004 to 2005; vice president of Road Engineering Association of Asia and Australasia; commissioner of the Construction Industry Arbitration Commission; and president of Philippine Institute of Civil Engineers (PICE)-east Metro Manila chapter from 2002-2003. The highlight of his exemplary career was when PICE named him one of the Philippines’ best 75 civil engineers during its 75th founding anniversary last Nov. 9, 2012. One accolade which was a crowning moment for him was when he was named one of the 100 most outstanding civil engineer alumni of UST in 2010.
The most challenging and difficult task he ever handled was when he was still involved in the operation of the newlyrehabilitated SLEx in 2007 according to David. “My challenge then was how to let people forget the terrible record of the expressway. So many horrible accidents there,” he said. What he did shortly after taking over from the Philippine National Construction Corp. was he imposed a speed limit of 100 kilometers per hour; set a 36-tonnage limit for trucks and disallowed ragtag/smoke belching vehicles from entering SLEx.
The mission was not an easy one as he and the Malaysian investors had to put up hundreds of closed circuit television cameras, tripled the security guards and patrol vehicles and increased lamplights at the whole stretch of SLEx. All of this contributed to its P14-billion rehabilitation budget. The result was remarkable. The used to be 15-20 accidents per month was reduced to zero, while speeding also died a natural death. It was the result of strict enforcement of traffic regulations. More than 300 motorists were being arrested for speeding, swerving and even overstaying inside the expressway each month. “It wasn’t a walk in the park. We received so many complaints. We were labeled dictators because some drivers don’t want to be disciplined,” David said. For more than four years, David regarded the reducing of accidents at SLEx to near-zero as one of his most memorable and interesting experience in his four-decade engineering practice. According to him, people will understand the nobility of any endeavor if it is imposed religiously and honestly. “Every time we intercept a violator, we explain to them that old habits are no longer allowed because the expressway was under new management,” he said. Putting Putrajaya in RP David’s current challenge is in how to let 16 other regions in the Philippines do what Region 4-A did—build a one stopshop RGC. “Like Kuala Lumpur, Metro Manila now has 16 million people. That number will increase if those dealing with
The P2.5-billion regional government center in Calamba City, a three-hectare facility, will house 54 government agencies and will serve as regional office of all state-owned departments in Calabarzon area.
It wasn’t a walk in the park. We received so many complaints. We were labeled dictators because some drivers don’t want to be disciplined
--Engr. Isaac David government will come here,” the engineer explained. The mission to put up as many RGCs as they can is now the main goal and challenge of this engineer. He said that is if a shoe doesn’t fit, don’t try it. But “What fitted in Putrjaya in Malaysia is also well fitted here; so we’ve started it,” he said. David is a very busy man. But despite his hectic schedule, he can still find time to continue his personal social responsibility (PSR) in his home town. It is a housing project for 500 poor families in coordination with his an Irish friend. The devotion for his PSR forced him to quit weekend golfing. Aside from being a top engineer, this man is also a weekend farmer who feasts on organic potatoes, mangoes, lemonade, broccolis and tomatoes every week with his family in a farm-vacation house in Samal, Bataan. The turn to farming from golf made him exchange golf cart to wheelbarrow and golf clubs to shovel and sickle. But it is a switch that he enjoys.
May - June 2013
James Lao Pioneers ‘Green’ Architecture Noted architect explains details of green architecture by Ed Velasco
Arch. James Jao 42 | Philippine Construction&Design May - June 2013
“Green architecture is still new in the Philippines” says Architect James Lao, “though very few Filipino architects practice the skill, their numbers are growing.” Arch. James Jao, a graduate of St. Thomas College of Architecture, is one of the very few Filipino architects who are pioneering in this arena. For almost a decade now he is one of the very few architects who have promoted the idea of ‘Green’ architecture. He decided to specialize in this practice in 2004. He has since designed almost a hundred ecology (eco) structures from Luzon to Visayas. ‘Green’ architecture, as defined by Wikipedia, refers to the construction of structures using a process that is environmentally responsible and resourceefficient throughout a building’s life-cycle: from design, construction, operation, maintenance, renovation and demolition. “The greatest benefit anyone can get from green architecture is the savings, comfort and ambience because everything used in the construction of the edifice are environmentfriendly,” Jao told Philippine Construction and Design. In one of his provincial travels, as a young architect just starting in his practice, he noticed so many people perspiring while inside their houses. That experience made him ask himself: “Why not build a comfortable house where people need not use air-cons or electric fans so much?” He browsed, read and asked several friends what he needed to know. One of his friends gave him the answer: “You must learn ‘Green architecture.’ At that time his career was growing steadily but not really taking off as much as he desired. So in 2004 decided to shift his direction and proceeded to learn more about ‘Green’ architecture. From UST to England To cut the story short, he enrolled in one of England’s most prestigious schools that offer such course for two years. When he came back in Manila, he came home at the right time since ‘Green’ became very popular and
his specialty made him an instant celebrity in the world of ‘Green’ architecture. Since turning ‘Green’ nine years ago, his popularity and being in-demand has never waned. Although he admitted that he is not alone in green architecture as there are at least “around 15” architects in the field, Jao is definitely the most recognized. He has proven this distinction after the Bohol provincial government commissioned him to start campus development in Tagbilaran City. In an agreement with his client, the campus development will see the architect build a school that will be totally free from discomfort of heat and humidity. The school he will build will be full of native materials from bamboo to hardwood, all elements of green structure. “I walk the talk. I practice what I preach. Since I shifted to this specialization I never did any conventional projects anymore,” he said. A hot copy His shift from conventional to green architecture made Jao a hot copy among the most prestigious architectural organizations in the country. For over two years now, Jao is executive director for finance of Philippine Institute for Interior Design; senior board member of the United Architects of the Philippines (UAP); and a member of several global organizations of architects. Jao’s latest feather on his cap was the completion of almost three dozen ecofriendly homes in several provinces in 2011. The common denominator for eco-friendly homes or green building is simple: it has light materials but not susceptible to quakes or typhoons; it has triple-walling so heat will not penetrate much; it has numerous thermal walls for freer air penetration; and the ceiling is full of insulators to prevent heat from sunlight to penetrate and to maintain cool temperature. “If you put those materials in your home, definitely it’s a green home. You save energy and you minimize heat entering your building. But take a look at the price because there is a major difference,” the architect explained. Each square meter of a green house costs P20,000, far from conventional construction that only ranges from P12,000 to P15,000/ square meter. Jao said the price of building a green structure didn’t serve as deterrent for him not to pursue his shift of specialization. Despite the higher cost of building an ecofriendly or green house, Jao said the savings will be felt on the long run. The savings will come from the ventilation because the air can freely enter and coolness is maintained since a green house is capable of maintaining a cool temperature. “If your house is not green, you need to turn your air-conditioned unit for six to seven hours. If it’s green just keep it on for at least
An artist’s rendition of Arch. James Jao’s ambitious project in Tagbilaran City, Bohol. It is the 3-hectare eco-town in Holy Spirit School where all the facilities will be made of ecology-friendly materials.
two hours then turn it off. The coolness will stay until late morning,” Jao, who obtained a diploma in green architecture from the prestigious London School of Economics in Westminster, England in 2004, explained. Plenty of clients He said when he shifted to green architecture, his clients increased to a new commission every week. Because he is completing so many projects at the moment, the architect has stopped accepting clients for three months now. Jao calls the proliferation of his clients as real professional progression that he never experienced while practicing conventional architecture. The market is huge. Though there are claims of a number of ‘Green’ buildings in the Philippines, there is no truly complete green building in the country according to Jao. “Maybe there is just a portion that is environment-friendly. It is usually found in corridors where there are trees and no air-conditioning. Trees will always be a sign that the builder thinks about the environment,” he said. The architect said the biggest challenge and difficulty he is facing is how to raise greater awareness about green architecture. According to him, the concept is not yet fully understood by Filipinos and many people think just putting a tree beside a house or build it using so many rattan or nipa is already green. “The biggest stumbling block is the higher price. But they should remember that this is the hope of the future,” he said. “The price of building a green house should not be looked only at the initial expense while construction is ongoing, but its long time effects to the owner, particularly savings in energy and long term comfort plus of course that one is help save the earth”, according to Jao. He added that building “green” will not cheapen in the years to come but definitely will increase. In order to raise greater awareness, Jao has started his eco-town in Tagbilaran City, Bohol.
Completing an eco-town The eco-town is a three-hectare lot inside the Holy Spirit School area. It is called ecotown because the place will be full of ecofriendly structures two to three years from now. “It will have eco-market, eco-school, eco-auditorium, eco-library everything will ‘echo’ there,” Jao said in jest. The architect labeled his project in the city as a project that should serve as guiding place for any architect who will follow his footsteps. “I am now paving the way for our successors so they will not have hard time,” he said. The nine-year practice for green building earned Jao several prestigious awards here and abroad, notably the Design Excellence Award, the Oscars of architecture, from the UAP. Asked what projects he completed that he thinks made an impression about him, the architect listed the Luzvimin homes in 2008 as his biggest so far. “That’s the igniting moment for me. After I finished that, I got so many projects,” Jao explained. His agreement with several firms then was he will build at least three 300-square meter eco houses for each of the three islands using various brands such as Hardiflex for insulator, Megaman for lights, Destiny for paints and adhesives and La Farge for cement. Fortunately, all the houses were bought and to his surprise “none among the buyers are super rich.” From that experience, he realized that the middle class is easier to convince. “I realized that this endeavor has big potential here. It is only a matter of time before Filipinos, particularly the middle class, embrace this and abandon the conventional design and concept that consumes a lot of energy and power,” the architect explained. Despite his full schedule, Jao can still find time to travel, read and go to gym, his favorite pastimes. He lists Barcelona, New York and London as the most fascinating places he has been to. “I wish Manila will be like any of those cities,” he said.
May - June 2013
Bring Your Safety Program to Proactive Level
Provide incentives that empower employees to actively support safety programs
Success in the construction industry starts with ensuring the safety of your most valuable asset—your employees. This normally leads higher efficiency and productivity as well as the ability to stay on schedule consistently. Statistics show that the construction is a dangerous business with construction workers facing countless hazards daily. According to Labor Statistics, the industry accounts for approximately 19 percent of all workplace fatalities and thousands of injuries every year, more than any other industry. Instituting the right safety program not only plays a critical role in your company’s success regardless the size of the organization or scope of its services. It is truly the difference between life and death.
Measuring Safety Management Programs
Measuring the effectiveness of a safety management program is as important as implementing one. Two measures are commonly employed to evaluate internal safety programs:
First is ‘Leading Indicators’ which focus on future safety performance. Leading indicators measure factors that indicate value and direction of the initiative, such as the number of new safety controls implemented, risk and hazard evaluation and potential job hazard analysis. Second is ‘Lagging Indicators’ which measure facts and past events, such as the frequency and severity of injuries, workers’ compensation claims and lost workday rates. Both indicators provide data that plays an important role in workplace safety. However, they are not necessarily the most effective means of ensuring greater employee safety. Your company should do more than focus on evaluating data. To improve upon traditional safety management programs the company needs to also
44 | Philippine Construction&Design May - June 2013
create incentives to proactive employee participation in safety programs. Traditional safety management programs studies past performance, tracking efficiency based upon recordable injuries but don’t always place enough emphasis on identifying and understanding the cause of incidents.
One way to motivate employee participation is to find out what incentives are of interest to them. Invite employees to by sharing opinions and ideas. Employees feel empowered through a sense of ownership, particularly when the program’s incentives are fashioned after what they want. Actively involving your employees during the planning stages of your company’s safety management program is the first step to creating a sustainable culture of safety. Once the incentives have been outlined, consider creating a scoring system
whereby employees accumulate points by attending safety meetings and filing observation reports on hazard recognition, hazard elimination and observations of positive behavior on the jobsite. This approach shifts the responsibility of onthe-job safety to every member of the project team, not just the safety director. A safety director can’t be onsite for every job, but with an empowered safety team that includes everyone, your company’s safety director will have more time to review risks and build awareness programs.
10 Safety Steps
the “1-4” rule – the base of the ladder should extend roughly one foot for every 4 feet that the ladder is extended. When climbing up and down, workers should face the ladder while holding to the sides.
heat exhaustion, and heat stroke) and their accompanying symptoms. Always have employees take preventive measures when working in the heat. They should properly hydrate before and during work by drinking 6 to 12 ounces of water every 15 to 20 minutes, and wear light clothing.
3. Carrying heavy loads
Labor statistics show that one in five workers will suffer lower back injury at some time in their lives. To avoid injury employees need to strengthen their back muscles with regular exercise and require more precautions when lifting or carrying heavy equipment. When lifting heavy objects have them bend from the knees with feet shoulder-width apart.
7. Practice Electrical Safety
“A stitch in time saves nine” is very true in construction work places where small actions can prevent big accidents. . Here are 10 tips to help ensure a safe work place and minimize workers compensation claims and complete projects more efficiently.
Invest in Ergonomic Equipment Ergonomic equipment help workers reduce fatigue, avoid injuries and increase productivity. Ergonomic equipment work with the body’s natural movements and minimize risks for developing musculoskeletal disorders like back pain.
Create and implement a comprehensive safety plan as part of your company culture. A safety plan should focus on emergency procedures and policies, identify potential workplace hazards, outline train programs and record incidents. All employees should be familiar with safety plan and encouraged with incentives to make the effort to follow guidelines.
A confined space is any tight-quartered area that is not intended for continuous occupancy, such as manholes, wells, silos and ditches. Besides engulfment, the greatest hazards, especially in manholes, are often not visible to the human eyes. When removing manholes test should be made for toxic or combustible gases, as well as depleted or enriched oxygen. Practice the “test, purge and ventilate” routine to carry out jobs safely in and around manholes. Working in the Heat Heat stress is when the human body can no longer self-regulate its internal temperature in hot environments. Know the three stages of heat stress (heat cramps,
2. Prevent Falls
Falls are the most common accident in the construction site, contributing more fatalities than any other job site accident. This is particularly true when it concerns ladders. Check long extension ladders or step ladders for broken rungs, missing bolts or other damaged part. Remember
5. Dangers of Confined Space
1. Have a Safety Plan
Electrocutions cause the secondhighest number of construction fatalities, after falls. Before working with electrical equipment and tools, have employees check wires for missing or worn insulation, and stay clear of water when in contact with the equipment. Replace power tool cords that have bare spots instead of splicing or taping them, and use extension cords only when necessary. If a tool is not double-insulated, make sure workers have an intact grounding system. Maintain Visibility Whether repairing a cable line on the side of a highway or directing traffic around a construction site, an employee who wears high-visibility clothing and equipment can prevent devastating struck-by accidents. Bright yellow or orange reflective clothing and gear should be a staple in any construction company’s equipment arsenal. Drive Defensively Whether employees are driving a heavy duty work truck or the company van, adhering to traffic laws is crucial. A good rule of thumb is to always keep a two-second following distance (four seconds if operating a larger vehicle), and check blind spots. Remind drivers that their mirrors aren’t always good enough; they should be sure to make a 90-degree head turn before changing lanes, turning or pulling in to traffic. And, of course, all drivers should stay off handheld cell phones while driving. Beware of Natural Hazards When you think of construction safety, a bug bite is most likely not the first thought that comes to mind. Reddish-brown or black ants are attracted to low voltage electricity, which is found in electrical equipment and utility housings.Their bites are painful and may cause allergic reactions. When employees are working on a jobsite with a fire ant hazard, have them cover exposed areas of skin. Having all staff actively sold on safety and with practical safety tips you will be able to achieve a zero accident rate. Based on articles by Russ E. Mason and John Alonzo
May - June 2013
Human Resource Management
Recruiting, Motivating and Keeping the Best People
is Basic to Your Success
eople are our most valuable asset” is a cliché which all senior management agrees in principle. But in reality there are too many people in many organizations, who are undervalued, under trained, underutilized, poorly motivated and as a result are performing at less than their true potential. Construction companies have a number of human resource challenges unique to the industry, one of which, but not the least, is finding and keeping skilled workers from a lean talent pool. Knowing the art of recruitment, training and retention are basic skills for an effective human resources manager, or HR department, in the construction industry Human resource (or personnel) management is the art of doing things, or having it done, through people. It is essentially a top manager’s responsibility. However many larger organizations have found it advantageous to have a separate specialist division to provide professionals in human resources management to be able to operate more efficiently.
46 | Philippine Construction&Design May - June 2013
Today’s rate of change has never been greater and the challenge for organizations is to absorb and manage change at even a faster rate. To be successful, organizations large or small, need to ensure that they have the right people that are able to successfully deliver company strategy. The search for talented and skilled people is highly competitive and thus expensive. New staff is disruptive to existing employees. It also takes time for new people to get into gear with the organizations culture.
Lean Talent Pool
The construction industry is unique that many of the people needed in construction requires specific skilled staff that are not easy to locate, after all knowledgeable, project managers, heavy equipment operators or skilled carpenters are often already employed locally or abroad. Also HR managers need to locate qualified applicants on a project by
project basis. Smaller construction companies often have difficulty finding management executives, project managers, engineers or administrative employees that are able to process constructionspecific documentation. Project field team leaders or divisions are also particularly difficult to locate. Thus HR managers need to prepare a clearly defined job description for each team member to facilitate the recruitment process. Since organizations come in many sizes and aims and vary in functions as in organizational complexity and the physical nature of their products, so do the contributions of human resource management. The ultimate aim of human resources management is to: “ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs”. This simply means not to be overstaffed nor understaffed as a whole in any one discipline or work grade.
ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs
The cost for failing to staff correctly is very high: Understaffing means business economies of scale are lost as with specialized orders and consequently customers and profits; Overstaffing, on the other hand, is wasteful and reduces the competiveness of the business. Proper planning of staff levels requires that present and future needs of the organization be properly assessed and compared with present and future predicted resources. Then the right steps are planned to balance demand and supply. Initially taking a ‘satellite picture’ of the existing workforce profile is the first step. This means preparing a profile of the current work force which will include number of employees, ages, gender, skill, flexibility, experience, character, potential, etc. Then adjust this for the future years – the first, third, fifth and even 10 years ahead with expected normal turnover, retirements, etc., in accordance with the proposed business plan for the corresponding period. Not preparing a carefully prepared human resources management strategy could lead to failures in the business itself.
Recruitment and selection
An analytical study of the job to be performed is needed to determine its essential factors. These are written into a job description. This allows the selectors to know the mental and physical characteristics that applicants should possess, qualities that are desirable as well as characteristics that are to be avoided. Sources for recruitment of staff traditionally are through advertising, internal promotion, schools and universities, employment agencies (including ‘head hunters’), and advertising. When replacing staff the first question to ask is whether there is a need to recruit at all. Replacements should not be an automatic process. Hiring is essentially ‘buying’ an employee with the price the salary times the estimated years of employment. Hiring the wrong person can be very expensive. For some organizations the process is hired out to ‘head hunters’ who specialize in locating and ‘pirating’ qualified staff from other organizations. It is essential that claims about experience and qualifications are checked thoroughly. Applicants should also complete a health questionnaire. Any doubts regarding physical fitness should be resolved by requiring medical examinations before issuing letters of appointment. Construction jobs are general physically challenging that requires employees to be physically fit. Interviewing and appraising candidates are skills essential to good recruitment.
Training, Incentives and Retention
With a project team in place policies for continued training should be implemented by the HR department. Construction
professionals are at times required to obtain certificates for specific types of construction and skills. Clear policies relating to training also need to be made, as well as information regarding time off and compensation training offsite. When a project milestone is achieved employee retention should focus on incentive bonuses. Since much of the work is project based, allowing extended vacation time between projects is another possible incentive. Another strategy that could help construction companies retain valuable workers is to initiate employee mentoring programs. This means allowing employees with high stress jobs to delegate smaller tasks to junior staff members under their supervision, thus “mentoring”. This improves retention by keeping employees involved with the future success of their co-workers.
Human Resource Management
Future personnel demands are only influenced in party by the forecast of the personnel manager, whose primary responsibility is to study and modify the crude preedictions of other managers. This rough estimating of future requirements will then result in a more ‘thought out’ logical staffing demand schedule for varying dates in the time frames proposed. This will be compared with estimated supply schedules and the comparison will show the steps needed to achieve balance. This then means planning for changes in work force utilization to be able to balance supply and demand equilibrium, not just as a one–off but as a continuing workforce exercise.
Retaining good employees and to motivate them to give their best requires HR managers to give attention to financial incentives as well as psychological and physiological rewards. Basic financial rewards and conditions of service are often more important hence there is scope for financial and other motivations to be used at local levels. Unless the wage packet is accepted as ‘fair and just’ there will be no motivation. Hence human resource management must act as a source of information about for the application of the findings of behavioral science. HR managers need to bring to the attention of senior management to what is being achieved elsewhere with the education of middle managers to new developments work organizations and developmental skills of workers.
Based on an article by Tela Lewis
May - June 2013
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Mahindra EarthMaster .The EarthMaster’s compact 3.3 liter DITEC Engine delivers best-in-class power at 83 HP. Its Turbo Charger and Intercooler make it highly fuel efficient, helping contractors keep costs low and meeting USA Tier III emission norms—the most demanding in the world. Customer support is central to our business model. The EarthMaster comes with a two year, unlimited hours warranty. An innovative intelligent communication system called Remote Care updates business owners or managers about the operating activity of their EarthMaster through SMS. Alerts about coolant temperature, diesel level, and other vital signs are delivered directly to your mobile phone. Permanent Pothole Repair: Cold Lay Asphalt Concrete Permanent Pothole Repair is the ideal solution for the repair of potholes in roads, driveway and car parks. It can be installed in all weather conditions and is instantly traffickable. It is the first ever HAPAS approved pothole repair material. Use with SCJ Seal & Tack spray for permanent repairs. • Suitable for both planned and reactive pothole repairs • Fully graded hard stone with PSV >60 • Only one visit required • Recyclable containers • A flexible repair for flexible roads
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48 | Philippine Construction&Design May - June 2013
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Volvo’s Large Asphalt Compactors Volvo’s large Asphalt compactors have superior drum widths; high frequencies to help with faster rolling speeds and provide high performance for highway and other large paving projects. With Operating weights ranging from 15,000 lbs to 33,810 lbs, our large asphalt compactors maintain and maximize productivity.
Doosan DL200-3 Wheel Loader Complete tough load and carry applications - without sacrificing maneuverability. The Doosan DL200-3 wheel loader is an ideal machine for moving materials in highway, street and paving projects, as well as building, site development and livestock product applications. With increased horsepower and many cab improvements, you can work comfortably in the DL200-3 all day long. Superior ergonomics ensure that controls are well placed and easy to use. Excellent all-around visibility helps you focus on your work area.
MULTI SPLIT TYPE. Hitchi’s multi split type air conditioners save energy and display high efficiency. It is equipped with nano-silver ion filters that eliminate pathogens in the air for a healthier indoor environment. 17D John Deere Excavators: Their compact sizes and reducedtail-swing designs enable these small but mighty machines to specialize in close-quarters work. But that’s not the only reason to run a 17D. Their highly fuel-efficient, direct-injected diesels are noticeably quiet so you can put them to work almost anywhere, anytime. Standard-equipped with backfill blade, mechanical quick-coupler, and auxiliary hydraulics, plus any of the many optional Worksite Pro™ attachments, they can make a sizeable impact on your versatility. As well as your bottom line. May - June 2013
PRODUCTS & TECHNOLOGY
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Cat® Screeds can be configured to match any paving application - from highways to city streets to parking lots. Even when set up for maximum paving width, Cat Screeds resist flexing due to unique, robust guide tube design. Select frontmount or rear-mount hydraulic screed extensions, both with optional power-extending main frames. Caterpillar has a full line of vibratory and tamper bar screeds to cover all paving widths while producing high density layers on asphalt as well as other granular materials. User-friendly controls simplify tamper setup and vibrating frequencies to match production rate, paving depth and paving speed. Operators can easily adjust the ramp time for tamping speed. Cat Screeds are simple to set up for consistently smooth transverse joints and minimum screed plate wear. Heavy-duty frames on both 2.5 m (8.0’) and 3.0 m (10’) screeds allow installation of bolt-on screed extensions for extra-wide paving. 50 | Philippine Construction&Design May - June 2013
Caterpillar Wheel Asphalt Pavers Wheel-equipped pavers offer high mobility for projects that require a lot of paver movement along with a bumpabsorbing undercarriage that promotes smooth paving. Cat wheeled pavers have high horsepower and all-wheel drive options to take on the toughest applications. Steering assist produces an incredibly small turning radius so these pavers adapt to operation in confined quarters. The ventilation system draws fumes away from the conveyor tunnel as well as the auger chamber and redirects them away from the operator for a more comfortable working environment. Optional Cat Grade and Slope control produces the ultimate in surface smoothness. A wide range of leveling devices enable Cat Pavers to turn rough surfaces into smooth rides.
SEDNA AIRE uses the Solar Absorption System to achieve a significant reduction in energy consumption. With the use of Solar Absorption System, Sedna Aire is designed to carry full air-conditioning load especially during sunny periods. It utilizes Solar Vacuum Tube Collectors in absorbing heat energy from the sun which is in turn used to displace electricity used in the cooling process. Although it still requires electricity to pump the refrigerant, the amount of power used is minimal compared to that consumed by a compressor in a conventional electric air-conditioner. Sedna Aire, being a low electricity consuming air-conditioning unit, significantly reduces the harmful carbon (CO2) emission, a major cause of global climate change. It also uses the most ozone friendly refrigerant of today, R410, the refrigerant that will replace the most commonly used R22 of conventional aircon units by the year 2010. Our product is CE, UL, CSA, NATL/C certified and duly exempted by DOE to PNS 395-1:1995, obtaining the highest EER of 26. Savings, as spelled by this product, helps us realize a return on investment in 3 years or less, a benefit no other brands can provide.
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PRODUCTS & TECHNOLOGY
SureClose® 57 & 57SF SureClose 57 is a concealed hydraulic gate closer. It is speed adjustable using the enclosed adjustment tool and designed to never leak hydraulic fluid. Extremely safe and does not offer resistance if closed quickly in an emergency. Soft, quiet closure also protects the latching/ locking system. A real workhorse tested to 500,000 open/close cyles and a 1,500 SET-FREE FSN SERIES. The Hitachi Set-Free FSN Series offer diversified air lb (680kg) point load. conditioning solutions that meet space and structure requirements SureClose 57SF is suitable for pool and safety gates. SF models open to and self-close from 90°. All SureClose hinges and closers come packaged with the gate mounting bracket included. Post mounting brackets sold separately.
Valentini Rock Cursher/ Stabilizer Valentini Rock Crushers/Stabilizers are powered by high horsepower tractors (240Hp-350Hp) with Vario Transmission. These crusher/stabilizers are widely used in Europe for soil/road stabilization works in the construction of rural and urban roads. Valentini’s unique design allows the unit to be operated as a rock crusher and as a stabilizer unlike other designs. It can crush 30cm-40cm diameter rocks down gravel sized chips. This operation obviates the need to import gravel/aggregates. Used as a stabilizer, it intimately mixes soil, cement and water to produce a much stronger, and more durable stabilized road. These machines are very much needed here in the Philippines where road maintenance is typically the 2nd highest cost expenditure of local government units. Valentini is distributed in the Philippines by Rapid Roads, Inc. For more information, visit www.rapidroads.com.
52 | Philippine Construction&Design May - June 2013
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Construction Materials Wholesale and Retail Price Index Movements
in the National Capital Region (2000=100)
Wholesale Prices Movements in the Construction Materials Wholesale Price Index (CMWPI) in the National Capital Region (NCR) moved up at a slower pace of 2.0 percent in February from 2.3 percent in January. The fuels and lubricants index further went down by 2.6 percent in February from -1.7 percent in January. Moreover, slower annual gains were recorded in the indices of the following commodity groups: sand and gravel (4.3% from 5.5%); hardware (2.5% from 2.6%); G.I. sheet (1.6% from 2.5%); reinforcing steel (3.6% from 4.0%); structural steel (3.3% from 3.6%); doors, jambs and steel casement (1.7% from 1.8%); electrical works (3.6% from 4.0%); plumbing fixtures and accessories/waterworks (1.7% from 2.0%); painting works (1.5% from 1.7%); and PVC pipes (1.4% from 1.5%). Higher annual growths were however observed in the indices of cement, plywood, lumber, tile works and glass and glass products. Movement in the machinery and equipment rental index was still zero while those for the indices of concrete products and asphalt remained at their last monthâ€™s rates of 2.6 percent and 3.9 percent, respectively.
The month-on-month growth of the Construction Material Wholesale Price Index ( CMWPI) inched up 0.3 percent in February from 0.2 percent in January. It resulted from an upward adjustment in the cement index at 0.8 percent in February from 0.4 percent in January; tile works index, 0.6 percent from 0.3 percent; and fuels and lubricants index, 2.2 percent from 0.5 percent. From zero growth, the indices of glass and glass products and painting works also grew by 0.1 percent. The rest of the commodity groups had a zero growth. Prices of cement, tiles, glass and glass products, selected paints, gasoline and diesel were on the uptrend during the month.
Retail Prices Retail price index (CMRPI) of construction Materials in the National Capital Region eased to 4.2 percent in February from 5.0 percent in January. Slowdown in the annual growths were recorded in carpentry materials index at 0.3 percent in February from 0.9 percent in January; electrical materials index, 7.7 percent from 8.9 percent; masonry materials index 16.7 percent from 16.8 percent; painting materials and related compounds index, 1.8 percent from 2.5 percent; and miscellaneous construction materials index, 0.1 percent from 2.2 percent. May - June 2013
The previous month’s rate of 2.0 percent was posted in plumbing materials index while higher annual change was registered in tinsmithry materials index at 0.9 percent from 0.5 percent.
index, -0.1 percent; and miscellaneous construction materials index, -0.5 percent.
Moreover, the masonry materials index moved up at a slower pace of Monthly price adjustments in Construction Materials Price 0.1 percent from 3.8 percent while a zero growth was seen in tinsmithry Index (CMRPI) in the NCR dropped by 0.3 percent in February materials index. from 0.7 percent growth in January. Negative monthly rates were noted in the following commodity groups in February: carpentry Price cuts were noted in plywood, electrical wires and wiring devices, Republic of the and Philippines and electrical materials indices, -0.3 percent; painting materials paints steel bars. On the other hand, prices of nails and cement were NATIONAL STATISTICS OFFICE and related compounds index, -0.8 percent; plumbingINDUSTRY materials on the uptrenDEPARTMENT AND TRADE STATISTICS Manila
Table 1 Construction Materials RetailRetail Price Index theNational National Capital Table 1 Construction Materials Price Indexin in the Capital Region Region (2000=100) (2000=100) 2013
A. CARPENTRY MATERIALS
B. ELECTRICAL MATERIALS
C. MASONRY MATERIALS
D. PAINTING MATERIALS & RELATED COMPOUNDS
E. PLUMBING MATERIALS
F. TINSMITHRY MATERIALS
G. MISCELLANEOUS CONSTRUCTION MATERIALS
Sources of Basic Data: NSO and other reporting establishments Processed by NSO
Republic of the Philippines NATIONAL STATISTICS OFFICE INDUSTRY AND TRADE STATISTICS DEPARTMENT Manila
CONSTRUCTION MATERIALS WHOLESALE PRICE INDEX (CMWPI) IN THE NATIONAL CAPITAL REGION (NCR) CONSTRUCTION MATERIALS WHOLESALE PRICE INDEX (CMWPI) IN THE NATIONAL CAPITAL REGION (NCR) (2000 = 100) (2000 = 100)
SAND AND GRAVEL
11 GLASS AND GLASS PRODUCTS
DOORS, JAMBS, AND STEEL CASEMENT
13 ELECTRICAL WORKS
PLUMBING FIXTURES & 14 ACCESSORIES / WATERWORKS
15 PAINTING WORKS
16 PVC PIPES
17 FUELS AND LUBRICANTS
19 MACHINERY AND EQUIPMENT RENTAL 114.6
54 | Philippine Construction&Design May - June 2013
May - June 2013
56 | Philippine Construction&Designâ€ƒ May - June 2013