PC&D January-February 2014 issue #10 by saibermedia

VOL. 1. No. 10

PHILIPPINE

THE MAGAZINE FOR CONSTRUCTION PROFESSIONALS January-February 2014

PH power industry to fuel construction

Construction boom, a challenge to the steel industry Construction abuzz in Mactan Newtown Channeling Opportunities...

Construction Budgets Project management minimize risks and maximize profits January - February 2014

Philippine Construction&Designâ&#x20AC;&#x192;

2 | Philippine Construction&Designâ&#x20AC;&#x192; January - February 2014

contents Issue No. 10 -2014

CONSTRUCTION NEWS 02 Calendar of Events

January-February 2014

04 News Roundup

Melco raising P15 B from debt paper

10 Association Updates

PCA help in clearing Yolanda-hit areas

12 International Report

Linden Comansa America at ConExpo 2014

FEATURES 18 Cover Story

Construction boom, a challenge to the steel industry

22 Project Report -Private

Construction abuzz in Mactan Newtown

24 Industry Report PH power industry to fuel construction

28 Contractors’ Profile VTS and Tekla Channeling Opportunities...

CONSTRUCTION MANAGEMENT

30 Project Management

Project management minimize risks and maximize profits

32 Sales & Marketing Management Construction Budgets

34 Risk Management

Construction Blasting Risk Management

36 Human Resource Management

Human resource planning in the construction industry; can it ever work?

38 Product & Technology Volvo’s PL3005

43 Price Movement

Year-on-Year and Month-on-Month Growth Rates of Construction Materials Retail Price Index:

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. corner Garnet Rd., Ortigas Center, Pasig City. Official website is www.philippineconstructionanddesign.com., e-mail address: saibermediaincorporated@yahoo.com.ph. Publisher is William L. Ogan. For your editorial, online subscription and advertising placement, please contact Tel. No.+(632) 463-4352 +(632) 463-4347 Please send your comments and suggestion’s to saibercraft@yahoo.com. Copyright ©2012 All rights reserved. January - February 2014

Philippine Construction&Design

calendar of events Local Events Worldbex March 12 - 16, 2014 Venue : World Trade Center Metro Manila Building & Construction. Worldbex ooccupies the pride of place of being the largest construction sector trade events in Asia. The show goes a long way in helping participants get acquainted with the latest innovations and developments from this sector and the networking opportunities available here are excellent too. The event is billed as the largest business show of its kind in Asia and brings in more than 800 exhibiting companies at each of its editions. The show registers high overall participation figures and visitors can find different varieties of building materials, electrical engineering tools, IT and telecom equipments, interior design themes, real estate services and home renovation systems that are displayed here. Highly informative seminar sessions, helmed by noted domestic as well as foreign industry speakers, are held during the event, while eminent representatives from international embassies are also present here. The unique business matching opportunities that are available at the show raises the overall corporate worth of the event further. Philippine Building and Construction Exposition May 22-25, 2014, Venue: Cebu International Convention Center Location: Mandaue City Philippine Building & Construction Exposition is a B2B trade show which is known to be the ultimate platform where the attendees can come across a wide and comprehensive range of building and construction equipments, materials and services. Water Philippines Expo March 25 – 27, 2014 Venue: SMX Convention Center Location: Pasay City Water Philippines will be the premier event of Philippines region which will attract all the local and international companies and organizations which will showcase the wide range of technically sound products, equipments and accessories related to water supply, treatment and purification. PhilConstruct Visayas June 5 -7, 2014 Venue: Waterfront Cebu City Hotel & Casino Location: Cebu City 5th Visayas International Construction

Equipment, Building Materials, Interior & Exterior Products Exhibition. Also incorporated in the event is the 5th Visayas International Heating, Ventilating, Airconditioning, Refregerating, Pumps, Valves and Pipes, Filtration and Purification Technology Exhibition. Power Generation World Philippines June 18-19, 2014 Venue: SM Mall of Asia, SMX Convention Center Location: Pasay City Electronics & Electrical: Power Generation World Philippines is a 2 days event which is being held from 18th June to the 19th June 2014 at the SM Mall Of Asia SMX Convention in Manila, Philippines. This event showcases products and services like Backup & onsite power systems, Consulting firms, Engineering, procurement & construction companies, OEMs, Fuel suppliers, Generators & accessories, Independent power producers, Inspection & certification providers, Maintenance, operations & outage equipment, Overhaul & repair services, Risk management solutions providers, Software & technology vendors, Utilities etc..

International Events World of Concrete 2014 1 January 2014 Venue: Las Vegas Convention Center Location: Las Vegas, NV United States World of Concrete has more than 1,300 exhibiting companies and 50,000 registered industry professionals in more than 500,000 square feet of exhibit space. World of Concrete Venue: Las Vegas Convention Center Location: Las Vegas, USA Jan. 20 -24, 2014 Celebrating 40 years, WOC is the industry’s only annual international event dedicated to the commercial concrete and masonry construction industries showcasing leading industry suppliers. WOC features innovative tools, construction machinery, construction equipment, safety training courses and training, technologies and unlimited networking opportunities to give you new ways to sustain and grow your business. World of Concrete is considered by many to be one of the top shows in the industry. The outdoor exhibit areas, including the hugely popular Artistry in Decorative

2 | Philippine Construction&Design January - February 2014

Concrete, make World of Concrete THE event to attend in 2014. NAHB International Builders Show February 4 -6, 2014 Location: Las Vegas, USA The National Association of Home Builders (NAHB) and the National Kitchen & Bath Association (NKBA) are co-locating the International Builders’ Show® (IBS) and the Kitchen & Bath Industry Show (KBIS)! This first annual Design & Construction Week. Ecobuild 2014 February 4 – 6, 2014 Location: ExCel, London World’s leading event for sustainable design, construction, energy and the built environment. 41st Annual National Demolition Association Convention February 22-25, 2014 Venue: The Mirage Location: Las Vegas, NV, Each year, the National Demolition Association convention brings together a wide cross section of professionals involved in the demolition process, including those involved in demolition contracting, general contracting. Industrial Estates & Business Parks 2014 February 26-27, 2014 Organiser: Trueventus Sdn Bhd Venue: Kuala Lumpur, Malaysia (To be notified) Contact person: Sandy B Call us on: +603- 2781 1500 (ext 510) Email: sandyb@trueventus.com Website:http://www.trueventus.com/ event php?intid=233 NRMCA Annual Convention March 1-3, 2014 Location: Las Vegas, NV Professional development and networking opportunities for those involved in the ready mixed concrete industry. Linden Comansa America at ConExpo 2014 March 4-8, 2014 Venue: Las Vegas Convention Center Location: Las Vegas, Nevada, USA Linden Comansa America (LCA) will exhibit at the upcoming ConExpo-Con/ Agg tradeshow, which will take place from March 4th to 8th in Las Vegas, Nevada, USA. The sister company of Spanish tower crane manufacturer Linden

Comansa will have a booth on stand 2181, at the Gold Lot of the outdoor exhibition area at the Las Vegas Convention Center. ConExpo is one of the worldâ&#x20AC;&#x2122;s most important construction and machinery tradeshows (the #1 in the American continent), and it is expected to have moe than 130,000 visitors at the 2014 edition. SAMOTER 2014 8-11 May 2014 Location: Verona Italy The Samoter 29th International Triennial Earth Moving and Building Machinery Exhibition will be joined by Asphaltica, the event focusing on asphalt industry, equipment, technologies and road safety. 2014 Global Civil Engineering & Applied Science Conference, Seminar January 8-10, 2014 Location: Korea (south) , Seoul Website: http://www.ceaasc.org/ Contact Person: CEAASC Conference Secretariat Organized By: Higher Education Forum Deadline for abstracts/proposals: October 20, 2013 CEAASC conferences have an intellectual hub for academic discussions for the colleagues in the areas of Civil Engineering and Applied Science, participants have found an excellent opportunity for presenting new researches, exchanging information and discussing current issues. We believe that our future conferences will improve further the development of knowledge in these fields. International Conference of Civil Engineering and Environmental Sciences Jan. 15-16, 2014 Location: Malaysia , Johor Bahru Website: http://iccees.qalamexcellence. com/index.html Contact Person: Secretariate International Conference of Civil Engineering and Environmental Sciences Deadline for abstracts/proposals: 20th April 2013 International Conference on Mechanical, Civil and Material Engineering Februart 28, 2014 to March 2, 2014 Location: China , Xian Website: http://www.icmcme.org/index. asp?id=1 Contact Person: conference secretariat 2014 ICMCME Deadline for abstracts/proposals: 30th November 2013 Organized By: Higher Education Forum

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NEWS ROUND-UP

Melco raising P15 B from debt paper

Daang Hari-South Luzon Expressway road link project was awarded to Ayala Corp. Photo: PPP Center

Ayala, SLEX finally agree on Daang Hari design Ayala Corporation, the winning bidder of the 4-kilometer Daang Hari-South Luzon Expressway (SLEx) road project, has finally signed an agreement with the SLEx toll operator on the design of the project, paving the way for the construction of its phase two. Public-Private Partnership (PPP) Executive Director Cosette Canilao said Ayala reached an agreement with SLEx operator South Luzon Tollway Corporation (SLTC) operated by San Miguel Corporation and Citra Group of Indonesia last week. Canilao said that the new design that was approved would expand the number of lanes of the road project from 4 to 6 lanes. “It was TRB (Toll Regulatory Board) that said the new design should incorporate 6 lanes instead of 4. Traffic in SLEx is heavy so we need to expand,” she noted. The P2.01-billion Daang Hari-SLEx road project is the first infrastructure project bid out under the Aquino administration’s PPP program. It involves the construction of a paved toll road that will connect Bacoor, Cavite to SLEx via the Susana Heights Interchange in Muntinlupa. Travel time between Cavite and Southern Luzon is expected to be reduced by 20 minutes during off-peak hours and by 60 minutes during peak hours after the completion of the project. SLEx is a major artery that connects Metro Manila to the provinces in the south.

Artist rendition of the City of Dreams Manila. A local unit of Macau’s Melco Crown, the SM group’s partner in developing a $1.3-billion integrated entertainment and gambling complex called “City of Dreams Manila” at Pagcor Entertainment City is raising P15 billion through a private offering of debt notes to selected investors. MCE Leisure (Philippines) Corp., a wholly owned subsidiary of locally listed Melco Crown (Philippines) Resorts Corp. (MCP), is issuing senior notes due in 2019 at 5 percent per annum to no more than 19 primary institutional lenders, according to a disclosure to the Philippine Stock Exchange on Friday. The group intends to use the net proceeds from the offering for capital expenditure, refinancing of debt and general corporate purposes. The issuance of the notes is expected to occur before January 31, 2014, subject to customary closing conditions. The notes were offered via private placement to no more than 19 institutional lenders and are thereby exempted from the registration requirements of the Securities and Exchange Commission. The offering of corporate notes, as opposed to a retail offering of bonds, is thus an easier fund-raising route taken by big companies tapping the debt market. Previously called the “Belle Grande” project prior to the entry of the Melco group, the Melco-SM consortium has upgraded capital spending on the gaming project to strengthen the bid to attract gaming patrons from mainland China, Hong Kong and Macau. Construction of segment 1 of the project started in June last year, but construction of segment 2 was delayed since SLTC needed to approve the design first. Canilao, however, noted that there are other challenges in the completion of the project such as determining who will shoulder the cost of the changes in design, as well as securing the right of way for the road project. “This will not be smooth sailing. We need to talk early on with stakeholders,” she said. The PPP executive director added that the government and Ayala are discussing how to

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shoulder the cost brought by the additional 2 lanes as required by the TRB. The Department of Public Works and Highways (DPWH), on the other hand, will need to secure the right of way. “So it needs to be determined which will be on the account of the private sector and which will be on the account of the government. The next move also is for DPWH to buy remaining right of way,” she said. Officials of Ayala earlier said that the connector road will be finished by September or October 2014. –Rappler.com

January - February 2014

Philippine Construction&Designâ&#x20AC;&#x192;

NEWS ROUND-UP Mariwasa donates P3.3M worth of relief aid to ‘Yolanda’ survivors

Mariwasa Siam Ceramics, Inc., the country’s top ceramic tile manufacturer has once again demonstrated its commitment in caring

for the community the company and its employees’ contribution to the relief efforts to ease the suffering of the calamity survivors. Mariwasa sent a total of 6,000 packs of relief aid worth P2 million to help the calamity victims through ABS-CBN Sagip Kapamilya Foundation, while Mariwasa’s allied brands COTTO and Campana donated 2,912 packs of relief goods worth P1 million which were sent through GMA Kapuso Foundation, Inc. Relief goods included 4 kilos of rice, 4 pcs. instant noodles, 2 ready-to-eat meals, medicines and bottled purified water. Moreover, Mariwasa also donated 1,120 relief goods and 490 packs of clothes to Lipa Archdiocesan Social Action Commission, Inc. through their Operation Yolanda: Mediatrix Humanitarian Mission for Leyte. “Helping the people affected by calamities rebuild their lives is not a new thing for Mariwasa. We have been committed to reach out to them and extend support especially in relief and rehabilitation efforts. This is part of our business philosophy and our corporate social responsibility” said Anukul Kongrit, President of Mariwasa and SCG Philippines Country Director.

PHP361 billion needed for Yolanda recovery, reconstruction --- NEDA The National Economic and Development Authority (NEDA) today said the Yolanda recovery and reconstruction will require a total of PhP361 billion in investments. The estimated total investment requirements for recovery and reconstruction shall cover shelter and resettlement (PhP183.3 B), public infrastructure (PhP28.4 B), education and health services (PhP37.4 B), agriculture (PhP18.7 B), industry and services (PhP70.6 B), local government (PhP4 B) and social protection (PhP18.4B). Economic Planning Secretary Arsenio M. Balisacan said this amount will be disbursed over four years, in line with a phased, cumulative and flexible implementation of the Reconstruction Assistance on Yolanda (RAY) Plan. “The government has allocated about PhP34B for the critical immediate actions, which are now underway. Another PhP100 billion is forthcoming in 2014,” Balisacan said. “RAY is the government’s strategic plan to guide the recovery and reconstruction of the economy, lives and livelihoods in the affected areas,” Balisacan said, adding that the plan aims to restore the economic and social conditions of the said areas at the very least to their pre-typhoon levels and to a higher level of disaster resilience. Balisacan said that the design of RAY and its estimated investment requirements are based on the results of the damage, loss and needs assessment using data from national government agency-led sector teams. In some cases, upward adjustments were made to fully reflect the costs of

integrating disaster-resilient standards into the reconstruction needs for some sectors, as well as to address estimated income losses in agriculture enterprises, and to provide adequate social protection. “We are espousing the build back better principle to make affected communities more resilient and sustainable,” Balisacan said. The NEDA Director General said the total damage and loss from Typhoon Yolanda has been initially estimated at PhP571.1 billion. This, he said, includes physical assets, reductions in production, sales and income as well as the value of increased operating costs resulting from the disaster. Balisacan explained that the sector-level damage and loss assessments are based on United Nations Economic Commission for Latin America and the Carribean’s (UNECLAC) Handbook for Estimating the Socio economic and Environmental Effects of Disasters, an internationally recognized post-disaster assessment methodology. “Using this methodology, we defined damage as the total or partial destruction of physical assets. Loss, on the other hand, is defined as the change in economic flows which refers to loss of incomes, revenues or operational costs. Needs means the overall recovery and reconstruction requirements for the public and private sector in the short and medium term,” he further explained. He said that typhoon Yolanda caused damage and loss to infrastructure (PhP33.98 B), agriculture (PhP62.11 B), industry and services (PhP116 B), education (23.9 B), health (PhP5.57 B), housing (PhP 325.24 B), local government (PhP4.3 B). About

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Supertyphoon Yolanda leveled everything in its path. In this photo is a church in Palo, Leyte that has been left standing but roofless. Photo by BenCyrus G. Ellorin 90 percent of the total damage and loss has fallen on the private sector with the remaining 10 percent on the public sector. He stressed that the government will be strategic in its financing interventions and will mobilize other sources of funds that are now being made available by development partners and the private sector. Balisacan emphasized that RAY is a credible basis for eliciting support from the donor community. “It is important that we have a plan immediately in place. RAY shall also guide our development partners and the private sector in assessing and analyzing financing gaps, determining which sectors or areas to focus their assistance on, considering their respective country partnership strategies,” the economic planning secretary said. / reliefweb.com

Robinsons Land opens new mall in Butuan GOKONGWEI-LED Robinsons Land Corp. (RLC) has opened a new mall in Butuan City, the company’s 33rd shopping center, the firm said in a statement over the weekend. Robinsons Place Butuan, which started operations last week, is a three-level development with a combined total gross floor area of 45,300 square meters. The Butuan City mall is the company’s first to be opened this year, and the fourth to be opened in Mindanao after Cagayan de Oro City, Davao City, and General Santos City branches. Located along the major thoroughfare of J.C. Aquino Avenue in Barangay Bayanihan, Robinsons Place Butuan “is envisioned to be the premiere shopping mall in the progressive CARAGA region,” the statement read. RLC brings to the mall its anchor tenants Robinsons Supermarket, Robinsons Department Store, Robinsons Bank, Robinsons Appliances, and Handyman as well as various restaurants, specialty shops and boutiques. The shopping center features four digital cinemas (including one three-dimensional cinema), an amusement center, baby care lounge, disabled-friendly facilities, and free Wi-Fi hot spots, according to the statement. Outside the mall is a transport terminal and an open-air carpark with slots for cars and motorcycles, it added. The mall will also host satellite office of government agencies, such as the Trade and

Robinsons Place Butuan is the company’s 33rd shopping center. It opened on Dec. 1, 2013. Photo: Robinsons Mall Butuan Facebook Foreign Affairs departments, National Bureau of Investigation, among others. “The Butuan economy is booming and we intend to be part of its growth as the commercial and business hub of the CARAGA region,” RLC’s Commercial Centers Division General Manager Arlene G. Magtibay was quoted in the statement as saying. RLC’s net income stood at P4.54 billion in

Angat dam rehab may start next year The Angat Rehabilitation Project is expected to commence in 2014, following the turnover of the privatized portion of the 246-megawatt Angat hydroelectric power plant (HEPP) to Korean Water Resources Corp. (K-Water) early next year. K-Water is the firm that bagged the contract to own and operate the 218-megawatt privatized segment of the Angat HEPP in Bulacan, which supplies about 90% of the water needs of Metro Manila and other nearby provinces. In a statement, Power Sector Assets and Liabilities Management Corp. (PSALM) President Emmanuel R. Ledesma said: “Under the Angat HEPP operation and maintenance (O&M) agreement, K-Water has the obligation to perform the mandatory rehabilitation activities to make Angat dam and its related facilities conform to international standards.” According to Mr. Ledesma, a study on the P5.7-billion Angat Dam

The water reservoir of Angat Dam in Bulacan.

the nine months ending June, up 35.12% from P3.36 billion in the same period the past year. Revenues jumped 23.02% to P12.40 billion from P10.08 billion, while cost of operations rose 26.48% to P6.21 billion from P4.91 billion in the same comparative periods. Its shares shed five centavos or 0.23% to close P21.80 apiece on Friday last week from P21.85 each on Thursday. -- C. H. C. Venzon

and Duke Strengthening Project was undertaken even before PSALM awarded the contract to K-Water. He added that the firm may adopt recommendations of the study though it can also conduct its own study for the final project design. “K-Water under the O&M agreement for the non-power components, however, can engage the services of at least two independent consultants to conduct its own study,” Mr. Ledesma said. In a separate interview, Metropolitan Waterworks and Sewerage System (MWSS) administrator Gerardo A.I. Esquivel said: “Angat dam and dyke rehabilitation is one of the key infrastructure projects of the government which we’re hoping will start next year through K-Water.” He said this came after MWSS, PSALM, National Power Corp., K-Water and the local government of Bulacan met last November 20 to facilitate implementation of the proposed strengthening and rehabilitation of Angat dam. Mr. Esquivel added that they’re already finalizing their timelines and that K-Water had already made a physical model of the Angat dam in their laboratory in Korea. According to him, the scale model of the dam should be completed by year end, after which K-Water will proceed with the analysis and interpretation of data which in turn should be completed by March 2014. “We already gave them a Tonkin and Taylor study. So using this study and their laboratory and whatever independent studies they have, then we’re ready to proceed with the project,” he said. “So we hope in the middle of next year, they already have an actual method that will be used in the rehabilitation and the project will already start by then,” he added. A fact sheet on the project read that the planned remediation was the first since the Angat Dam’s commissioning in 1968, and that the project was formulated to ensure the safety of the Angat Dam from the impact of natural calamities. Both the design and construction phases of the project are expected to run for 42 months. /philconstruct.com

January - February 2014

Philippine Construction&Design

NEWS ROUND-UP

P500-M earmarked to fast-track irrigation rehab projectsin Mindanao - NIA

Farmers in Monkayo, Compostela Valley Province, clear an irrigation canal damaged by typhoon Pablo (Bopha) last year. The National Irrigation Administration is set to pour half billion pesos to rehabilitate Pablo damaged irrigation systems. Photo: ICRC CABANATUAN CITY, Nueva Ecija – The National Irrigation Administration (NIA) has earmarked some P500 million to fast-track rehabilitation of irrigation projects in four regions of Mindanao. NIA administrator Claro V. Maranan said he has formed “Task Force Pablo” (TFP) to be headed by NIA senior deputy administrator Felix Razo. Maranan said Razo flew on Saturday to Region 11 in Davao City for a fourday inspection of Pablo-related irrigation projects.

Razo’s team is also composed of Florentino R. David, internal audit services department manager; internal control officers Teresita G. Pantalla and Mary Jean P. Estefanio and systems management division senior engineer Maria Gracia A. Ramos. Maranan said he directed the task force to conduct audit on the implementation of restoration and rehabilitation works of all projects funded under the Typhoon Pablo Fund. The audit will cover procurement up to contract administration.

Lawmakers files bill requiring contractors to use PH-made materials

Rodriguez said under the bill, every contract for the construction, alteration or repair of any public building or public work in the country shall contain a provision that in the performance of the work, the contractor, subcontractors, materialmen or suppliers, shall use only unmanufactured articles, materials and supplies produced in the country. The bill of the Rodriguezes also provides for an exception noted in the specification with respect to particular articles, materials or supplies that it is impracticable to comply with such requirement or that it would unreasonably increase the cost and a public record made of the findings which justified the exception. If the head of the government agency which made the contract containing the provision required by Section 4 of this Act, finds that there has been a failure to comply with such provisions, he shall make his findings public, including the name of the contractor and shall not be awarded within a period of three years with any contract for construction, alteration

Rep. Rufus Rodriguez (2nd District, Cagayan de Oro City) and his brother Rep. Maximo Rodriguez Jr. (Party-list, Abante Mindanao) authored House Bill 3285 to promote and encourage the use of Philippine made products, materials and supplies in every contract for construction. Rep. Rufus B. Rodriguez cited the policy of the State as embodied in Article XII, Section 12 of the Constitution to promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive. The measure to be known as the “Preference for Philippine Materials in Public Contracts Act,” also seeks to blacklist contractors, subcontractors, material men and suppliers who fail to comply with such requirements.

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For the restoration works, an initial amount of P500 million has been released for damaged irrigation facilities in Regions 10 to 13, he said. As part of the administrative reforms being instituted at NIA, Maranan said four irrigation management officers will be reshuffled. On December 29, Maranan will meet with farmers for their feedback on issues involving irrigation and the agency. The creation of the task force was in line with the seven-point development agenda of Maranan outlining the agency’s course of action on various aspects of organizational and operational performance. This is aimed at achieving the following: 1) provide creative and speedy solutions to the urgent problems confronting NIA; 2) rally support of employees and officers in carrying out the reform agenda and 3) document the program for future reference as a learning organization committed to continuing improvement. Maranan explained that his program is consistent with President Aquino’s vision to turn the country into a nation of transformational leaders, a government dedicated to honing and mobilizing people’s skills and energies as well as the responsible harnessing of natural resources, and the value for excellence and integrity. (PNA)

Rep. Rufus Rodriguez

TWO lawmakers from Northern Mindanao have filed a bill mandating all contractors to use Philippine-made materials for the construction, alteration or repair of any public works undertaking. or repair of any public building or public work elsewhere in the country. “By doing this, the bill shall achieve its goal of blacklisting contractors, subcontractors, materialmen and suppliers who fail to comply with such requirements,” the Rodriguezes said. (PNA)

Infrastructure spending rose by 25% as the government continued to ramp up disbursements. The Department of Budget and Management (DBM) reported that public spending for infrastructure grew by 25.68% to P208 billion in the first ten months from the P165.5 billion recorded from January to October 2012. The amount is 70.01% of the P297.1billion full-year infrastructure spending program. “We’re pleased to note that infrastructure disbursements continue their double-digit growth over the figures we posted in the same period last year,” said DBM secretary Florencio B. Abad. “It’s a testament to the Aquino administration’s continuing efforts to drive public funds toward high-impact programs and projects, those that will go a long way

Sustainable housing solutions for climate refugees sought Following the devastation of Supertyphoon “Yolanda,” developers have vowed to seek more sustainable solutions to address the housing backlog. Although a full evaluation of damages from Yolanda is still underway, the country will face rising homelessness from climate refugees, or people who have lost decent shelter from extreme weather. The Subdivision and Housing Developers Association (SHDA), the largest group of private developers in the country, acknowledged that the effects of environmental degradation, and not just poverty, were also partly to blame for the national housing backlog of 3.9 million units. According to the National Economic and Development Authority, housing is among the country’s critical economic indicators. Its Philippine Development Plan 2011-2016 notes that housing construction would also be affected by natural and manmade disasters, and policies on resettlement. Seeking support SHDA is seeking support for more publicprivate partnerships (PPPs). “We need this especially in the construction of socialized low-rise buildings in urbanized areas for the poor, including resettlement of informal settlers, as well as legislation that would

focus on the housing deficit,” said Arlene Keh, SHDA governor and committee chair for socialized midrise buildings. The group has proposed that developers take on the construction investments involved in the PPP, while government takes care of providing buildable land and extending housing loans to the poor. In legislation, SHDA has thrown support for Senate Bill No. 1104, which will create the Department of Housing and Urban Development (DHUD). Housing needs “Establishing the DHUD, rather than a council, will mean more decision-making power and direct access to the President on housing policies and issues,” said Paul Tanchi, SHDA chair. “It will work to raise compliance and performance from other shelter agencies. The department would be focused specifically on housing needs, and will have the expertise and the budget to accomplish this.” Filed by Sen. Loren Legarda, SB 1104 will also look into the availability of basic services and facilities, accessibility and proximity to job sites, and other economic opportunities in housing development and resettlement areas for the poor.

Response Fund of the Department of Social Welfare and Development (DSWD). Public spending in the first ten months stood at P1.513 trillion, 10.52% more than the P1.369 trillion in expenditures recorded from January to October 2012. The government wants to spend P1.98 trillion this year, 11.24% more than the P1.78 trillion it spent in 2012. Mr. Abad sad DBM is confident that expenditures will continue to pick up in the coming months, especially now that the government continues its rehabilitation and reconstruction programs for Yolanda-hit areas in Central Philippines. “These programs and projects will be very quickly rolled out by the Aquino administration and local governments to all affected areas, so that the needs of Yolanda victims are met as swiftly as possible,” he said. “At the same time, the disbursements that support the implementation of these projects will allow the country’s economy to gain more steam, so that we’re in a better position to facilitate rapid, sustainable, and inclusive growth in the country,” the DBM head said. The bill also looks into another primary housing concern, the burdensome paperwork and process involved in government housing programs. Homeowners and homebuyers are typically overloaded with repetitive information requirements, which the bill hopes to eliminate. “There are issues of affordability, access to housing finance, and creating energyefficient housing solutions. There is a need for families and households to be resettled into safer grounds, far from natural threats and waterways,” Tanchi added. “The creation of the DHUD will help us confront these issues and lead us to a coordinated national housing development program.”

www.rappler.com

Infra spending up by 25%

in buttressing our economy and ensuring better service delivery to the public,” said Mr. Abad. He noted that the growth in infrastructure spending was primarily driven by the settlement of accounts payable for public infrastructure and irrigation projects under the Department of Public Works and Highways (DPWH) and Department of Agriculture (DA), as well as various transportation and communication infrastructure and equipment for the Department of Transportation and Communications (DOTC) and health facilities enhancement project of the Department of Health (DOH). Meanwhile, the maintenance and other operating expenditures (MOOE) of the government also rose by 20.7% year-onyear to P230.5 billion from January to October from P190.9 billion in 2012. According to Sec. Abad, the increase resulted from the relief and rehabilitation program of the government for calamitystricken areas as well as the provision of humanitarian needs of displaced individuals and families from Sabah, which were all charged against the augmented Quick

January - February 2014

Philippine Construction&Design

ASSOCIATION UPDATES

PCA help in clearing Yolanda-hit areas

A heavy equipment lent by a PCA member helps remove debris left by supertyphoon Yolanda in Tacloban City. (Source: PCA) Members of the Philippine Constructors Association, Inc. (PCA) had mobilized its members undertaking projects near the towns severely hit by Typhoon Yolanda (international name: Haiyan) to help in clearing operations. MAC Builders & Yakal Builders of PCA Ormoc commenced its operations towards Guiuan, Samar where the

typhoon made its first landfall. From its project site at Tongonon, Leyte, First Balfour also went all the way to Ormoc to embark on its operations in the city. CM Pancho Construction and DMCI which jointly undertake a road project under Millennium Challenge AccountPhilippines (MCA-P) left their project site in Western Samar to start their clearing

operations in Tacloban City and Palo, Leyte. Makati Development Corporation (MDC) and Ayala Land also immediately went into action in Iloilo from its project site in the city. The Cebu Contractors Association (CCA) also set out on its operations in Northern Cebu and Bantayan Island to assist survivors, while BSP & Co. dealt with the necessary clearing operations in Capiz in the island of Panay. Megawide Construction currently provides a means of transport to GMA 7 in bringing relief goods to as far as Tacloban City. DMCI likewise provides air transport to the Salesian Community in sending relief goods to the cities of Tacloban and Ormoc. Meanwhile, JV Angeles Construction Corporation is undertaking de-clogging and clearing operations in the mountains behind Tacloban City to facilitate the reoperation of the city’s water system. On November 16, another batch of PCA and Association of Carriers and Equipment Lessors, Inc. (ACEL) members sent excavators, loaders, fuel trucks, fuel tanks, generator sets, dump trucks, light towers and chain saws to the cities of Tacloban, Palo, and Tolosa in Leyte, as well as in Tanauan and Guiuan in Samar via an 8,000-DWT barge of the International Container Terminal Services, Inc. (ICTSI) to augment the PCA teams already operating in the said areas. philconstruct.com

DPWH lauds PCA for prompt disaster response Department of Public Works and Highways (DPWH) Secretary Singson commended construction and engineering supply firms for their prompt response to appeals for help in typhoon-hit areas in the Visayas. Last week, the DPWH tapped the Philippine Constructors Association, Inc. (PCA) to do rehabilitation work in Region 8 following the devastation of Typhoon Yolanda. Sec. Singson disclosed that dump trucks, payloaders, graders and other roadcleaning equipment belonging to private contractors outnumber those deployed by the government in areas hit by the typhoon. He cited that among the “early birds” in the road clearing operations were Sunwest Construction and Development Corp., CM Pancho, Yakal Builders and Mac Builders. The DPWH fielded 20 dump trucks and five payloaders to Eastern Visayas last week. CM Pancho also sent a team from its

Workers pose with heavy equipments sent by PCA members to help clean up Tacloban City. Source: PCA) project in Western Samar to clear the roads to the San Juanico Bridge that were littered with debris. The firm also sent teams to clear roads in Tacloban City and Palo. Yakal Builders and Mac Builders also left their rpoejct sites in northeastern Samar to clear the roads leading to Guiuan. According to the DPWH Public

10 | Philippine Construction&Design January - February 2014

Information Division, relief operations were moving at a faster pace with the opening of all national roads in the region. Sec. Singson earlier reported that 36 of the 136 national road sections in the region had been adversely affected by the typhoon. Road clearing work is now focused on secondary works. philconstruct.com

GMR-Megawide submits best bid for Mactan Airport The consortium of India’s GMR Infrastructure and the Philippines’ Megawide Construction submitted the best bid for the country’s first airport public-private partnership (PPP) project. It was revealed during the financial bid opening of Department of Transportation and Communications (DOTC) that all seven bidders for the PhP 17.5 Billion Mactan-Cebu International Airport (MCIA) New Passenger Terminal Building offered to do the project at no cost to the government and at same time pay government premium for the project. GMR-Megawide Consortium gave the highest bid, offering government a premium of PhP14,404,570,002.99 which bested six other bidders from the country’s top conglomerates. GMR Infrastructure Limited is an Indian firm that operates airports in India, Turkey and Maldives. GMR has also implemented several other PPP projects in India’s airport, energy, highway and urban infrastructure sectors. Megawide on the other hand is a publicly listed construction firm in the Philippines that has been actively participating in the PPP Program. Megawide was awarded contracts for both phases of the Department of Education’s PPP for School Infrastructure Project, and recently the Department of Health’s Modernization of the Philippine Orthopedic Center. Other bidders also offered premiums to DOTC for the MCIA project— Filinvest – CAI consortium which includes the operator of Singapore’s Changi airport with Php13,999,999,999.99; Premier Airport group led by SM Investments Corp., Citadel Holdings Inc. and the operator of Zurich, Switzerland airport with PhP12,500,088,888.88; Metro

Pacific Investments Corp. – JG Summit airport consortium which includes France’s Aeroports de Lyon with PhP11,230,000,000.00; AAA Airport Partners led by the Ayala and Aboitiz groups and Houston airport operator ADC&HAS with PhP11,088,888,889.00; San Miguel & Incheon Airport consortium, led by the SMC conglomerate and the operator of South Korea’s Incheon Airport, with PhP9,050,000,000.00; and First Philippine Airports consortium led by First Philippine Holdings Corp. and New Zealand’s Infratil Asia Ltd with PhP4,700,000,000.00. DOTC Undersecretary Jose Perpetuo Lotilla, Chairperson of the Special Bids and

The existing terminal building of the Mactan-Cebu International Airport (MCIA), which houses both domestic and international operations has annual capacity of 4.5 million passengers. However, the passenger traffic for year 2011 was around 6.2 million passengers. The deterioration in the level of convenience and lack of ability to handle more passengers may hinder further development and growth of MCIA. (Photo and caption: PPP Center)

Foreign investors bullish on PH PPP More foreigners are expressing interest in the Philippines’ pipeline of big-ticket infrastructure projects under the publicprivate partnership (PPP) program, ranking government officials told reporters at a briefing Thursday. “Nag-iincrease talaga ngayon yung interest ng foreign players. They like the pipeline,” said Cosette Canilao, executive director at the PPP Center, the agency overseeing and reviewing projects under the flagship program. According to Canilao, most inquiries are from European and Asian firms. Most foreigners are looking for partner local firms, noting that more are interested in partnering with companies “outside the usual list of [Philippine] conglomerates,” she said. The increased interest in the country’s PPP projects were attributed to consecutive

Awards Committee, reminded the bidders that the financial bids are still subject to continuing evaluation before the Notice of Award is issued. DOTC targets to issue the Notice of Award to winning bidder early January 2014. The MCIA Project will modernize the country’s second-largest aviation hub and gateway to the Visayas with the construction of a new world-class international passenger terminal building. The winning bidder will also renovate the existing terminal building, which has been operating at over-capacity with 6.7 million passengers going through the 4.5-million passenger capacity structure in 2012. /Public-Private Partnership Center PR

investment grade ratings from all three of the world’s top debt watchers that the Philippines snagged this year and the “improved” bidding process. “This is because of the of the investment grade,” said Canilao. Manila scored its first investment grade rating ever from Fitch Ratings in March. Standard & Poor’s lifted the Philippines away from junk status in May and Moody’s Investors Servicecemented the country’s status as a new investment hub in October. At the same briefing, Jose Emmanuel Reverente, deputy executive director at PPP Center, said: “We are improving it (the bidding process) with respect to transparency and willingness to have comprehensive discussions.” United Kingdom Trade & Investment director in Manila Iain Mansfield has said British firms are looking at participating in

the country’s PPP projects. Australia’s Macquarie Group Ltd. and a handful of Japanese and a Korean firms have participated in past biddings. For the Philippines’ first airport PPP, the Mactan-Cebu International airport project, all local companies took in foreign airport operators as partners to compensate for their lack of expertise in the aviation industry. Concerns, however, are still being raised by some foreign firms, particularly in possible breaches of contract. But “for as long as the contract is clear and consequences are clear for every action of the government and winning bidder, then it’s okay for them,” Canilao explained. She, moreover, said the government has earmarked P30 billion in next year’s budget to set up a rolling contingent liability fund addressing regulatory risks including any breaches by future administrations. Arbitration provisions are also provided for in PPP contracts. — JDS, GMA News

January - February 2014

Philippine Construction&Design

INTERNATIONAL NEWS

Linden Comansa America at ConExpo 2014 Linden Comansa America (LCA) will exhibit at the upcoming ConExpo-Con/ Agg tradeshow, which will take place from March 4th to 8th in Las Vegas, Nevada, USA. The sister company of Spanish tower crane manufacturer Linden Comansa will have a booth on stand 2181, at the Gold Lot of the outdoor exhibition area at the Las Vegas Convention Center. ConExpo is one of the world’s most important construction and machinery tradeshows (the #1 in the American continent), and it is expected to have more than 130,000 visitors at the 2014 edition. At the show, LCA will explain all the new developments and cranes launched by Linden Comansa since the last edition of ConExpo back in 2011: The new LCL 165 luffing jib crane, which completed the LCL Series. This crane comes in two versions, 8 and 12 tons maximum load (17,640 and 26,450 lbs.). The new 21LC660 flat-top tower crane completes the LC2100 series. There are four versions of this crane (18, 24, 36 and 48 tons / 39,680, 52,910, 79,360 and 105,820 lbs.) which has Linden Comansa’a longest jiblength: 84 meters / 275.6 ft. The new LC3000 series, Linden Comansa’s

largest cranes. Each of the two models of the series, the 30LC1100 and the 30LC1450, come in three versions, with maximum loads of 32, 48 and 64 tons (70,550, 105,820 and 141,090 lbs.). The new LC1600 series, formed by three Flat-Top tower cranes. The 16LC185 comes in three different versions of maximum load capacity (8, 10 and 12t / 17,650, 22,040 and 26,450 lbs.), while the 16LCL220 and the 16LC260 come in two versions each (10 and 12t/ 22,040 and 26,450 lbs.) The new PowerLift system, which allows an improvement of the load chart up to 10% with reduced speeds. This system comes as a standard on all of Linden Comansa’s models of Flat-Top tower cranes. The entire LC1100 and LC2100 Series have been recently reviewed, and now feature many new improvements. Etc. Bill Carbeau, Linden Comansa America’s Vice President - Business Development expects a very successful show: “We are seeing signs of recovery on the construction sector in the U.S. especially in the civil side and we see rental rates and fleet utilization improving. Many projects are coming out now and our cranes are a great choice for new crane purchases. With the ease of assembly,

UAE construction sector braces for Expo announcement Dubai: Construction and building professionals in the UAE are bracing themselves for the highly anticipated Expo 2020 announcement in two days’ time on November 27. In recent weeks, key stakeholders from across the UAE have told Gulf News a successful bid to host the Expo by Dubai would benefit the country as existing and new projects would be fast tracked. Andy White, Group Event Director at The Big 5, a regional construction exhibition, said it would have a huge impact pointing at road, rail, hotel and amusement park projects stemming from a successful bid. Abdullah Massaad, Chief Executive Officer of RAK Ceramics, said Expo 2020 “will create a lot of momentum to the real estate market that will have a direct impact on us.” (gulfnews.com)

Construction and building professionals in the UAE are bracing themselves for the highly anticipated Expo 2020 announcement.

12 | Philippine Construction&Design January - February 2014

original flat top design, fast smooth hoisting and other functions all rolled in to a reliable, well designed machine, we expect to see great interest at the show and beyond. I invite potential customers to stop by our booth and learn about our new “systems Approach” to fully supporting our customers.” The upcoming edition will be LCA’s 4th consecutive participation at the ConExpo tradeshow. LCA was founded in 2002 to service the NAFTA countries in sale and after-sales services. Its premises, located in Pineville near Charlotte (North Carolina), include a large warehouse for tower crane components, spare-parts, and technical training.

Construction, manufacturing comprise 16% of Albania’s economic enterprises TIRANA, Dec. 28 (PNA/Xinhua) -Construction and manufacturing enterprises account for around 16 percent of total economic enterprises in Albania, providing employment for 41 percent of total number of employees, a survey showed Friday. Enterprises with 20 and more employees dominate the country’s economy, providing employment for 46 percent of total employed and realizing around 67 percent of investments, show findings of the structural survey of economic enterprises 2012 released by National Institute of Statistics (INSTAT). The industry comprises over 9,332 enterprises with around 89,000 employees whereas the construction industry comprises some 3,285 firms with more than 33,000 employees. Active enterprises in the industry sector represent 73.9 percent of total number of enterprises in this group. Turnover of the industrial sector increased 13.1 percent compared with previous year. A different situation is in the construction sector where turnover decreased 4.2 percent compared with 2011. In the industry sector, number of employees increased 1.8 percent compared with 2011 while those in the construction sector decreased by 3.9 percent. (PNA/ Xinhua)

January - February 2014

Philippine Construction&Designâ&#x20AC;&#x192;

INTERNATIONAL NEWS

Coastal Expressway Int’l traders see Marina “toughest tunnelling project” PH as gateway to Asean Investors are considering making the Philippines their gateway for their planned investments in the region, in preparation for the formation of the Asean Economic Community by 2015. “With the AEC 2015 in the horizon, there is a strong interest in making the Philippines a hub for (investments in) retail, automotive parts exportation and aircraft maintenance, repair and overhaul,” Trade Undersecretary embedded in photo Ponciano C. Manalo Jr. said in an interview. This is why the Department of Trade SINGAPORE: The new Marina Coastal and Industry, according to Manalo, will Expressway (MCE) has been described as aggressively tap and pursue next year arguably “the toughest tunnelling project” various trade and investment opportunities the Land Transport Authority (LTA) has particularly in mature priority markets undertaken. in East Asia, including South Korea and Senior Minister of State for Transport Japan, which have been visited recently by Josephine Teo said this at the opening President Benigno Aquino III. ceremony of the S$4.3-billion expressway “We will follow through these on Saturday. opportunities and further develop Japanese, The MCE is set to open to vehicular traffic Korean and Asean-wide interests and solid at 9am on Sunday. leads in manufacturing, infrastructure It’s almost five years in the making and development and tourism,” Manalo added. now, Singapore’s 10th expressway is ready The trade official also recalled that in the for operations. second half of 2013, the DTI conducted Mrs Teo, Emeritus Senior Minister Goh investment missions to Europe and the Chok Tong and other MPs officially opened United States, where various companies the expressway. confirmed their renewed interest in the Spanning five kilometres, the project has Philippines as an investment destination. been described as a massive engineering “There were specific inquiries about feat. and interest, of course, in the Philippines’ One of the biggest challenges was building business process management industry. the 420-metre undersea section, which is just However, we are pleased to note that we 130 metres from the Marina Barrage. can build further investment momentum in This is because during periods of heavy areas such as digital telecommunications, rain, the barrage discharges large amounts computer entertainment and high value of water, making the current strong and electronics components,” Manalo said. sometimes unpredictable. “As a result of (these) activities, we see As such, even before constructing the increased inbound missions and company tunnel box on the sea bed, the construction visits to the Philippines in the first half of team had to build a temporary undersea wall 2014,” he added. about 270 metres into the sea, with a width This year, the Philippines played host of 100 metres - bigger than the size of three to a big number of trade and investment football fields combined. missions from the United States, Turkey, Another challenge is building most of the Singapore, France, United Kingdom, Japan tunnel through reclaimed land. and the Middle East. The delegations were Mrs Teo said: “The LTA engineers have composed of companies that were eyeing very imaginatively described it as being opportunities in the country’s retail, energy, similar to “peanut butter”. But I want to automotive, manufacturing, healthcare, assure you this is quite firm peanut butter, education, construction and IT-BPM you won’t have to worry about sinking sectors, as well as the government’s public- through this peanut butter. private partnership program. (Inquirer.net) “They had to do many things to strengthen 14 | Philippine Construction&Design January - February 2014

and stabilise the soil before the tunnel was constructed. For instance, piles as long as 85 metres, or 25 storeys, had to be driven into the ground.” More than 4 million cubic metres of soil were also removed - enough to fill 1,700 swimming pools. The MCE will connect the Kallang-Paya Lebar Expressway (KPE), the East Coast Parkway and the Ayer-Rajah Expressway. And MPs said the expected improvements in connectivity will outweigh the inconveniences faced by residents during construction. Mr Lim Biow Chuan, MP for Mountbatten SMC, said: “For the construction of the MCE, there are a lot of big earth trucks moving around and I think that caused some concern. “But by-and-large, LTA’s engagement with the residents has been quite good, there’s been quite minimal complaints from residents about noise and dust.” The MCE is also expected to help improve accessibility to the Marina Bay area. Mr Gan Thiam Poh, MP for Pasir RisPunggol GRC, said: “The load will be divided and spread out. MCE has five lanes, certainly it will improve the load on the existing highways to both city and western areas.” Authorities said the MCE will help realise the vision of a new downtown at Marina Bay. With the MCE, part of the ECP that currently cuts through the city centre will be removed, and make the area a more attractive place to live, work and play. Together with the KPE, the KPE-MCE is touted to be the longest underground expressway in Southeast Asia. (Channel News Asia)

The new Olympic Aquatics Center, which will be in the shadow of the Maracana soccer stadium, will cost $218 million and be a temporary venue. Photo: swimswam.com

Brazil: Rio de Janeiro Opens Bidding for 2016 Aquatics Center Construction The city of Rio de Janeiro on Dec. 27 announced a period of open bidding on the Aquatics Center that will be built for the 2016 Summer Olympics. The center, which will be built in the Barra da Tijuca Olympic Park, is estimated at a cost of R$218 million (approximate $93 million USD). It will include a primary temporary facility with seating for 18,000 people and two 50-meter courses. The structures of the pool will be detachable, reusable, modular steel structures that will host swimming for the Olympics and Paralympics as well the water polo finals. 18,000 seats is slightly larger than the pre-Olympics 17,500 of the London Aquatics Centre, which in turn was slightly bigger than the preOlympics 17,000 of the Beijing Water Cube. Both of those prior centers are still standing, albeit in different forms after the Games. Diving and water polo will be held at the existing outdoor Maria Lenk Aquatic Center, which is currently being renovated ahead of the Olympic Games in a separate project. The city explained its reasoning behind a temporary facility as due to the fact that “Rio de Janiero already has two aquatics centers, and the Maria Lenk and Julio Delamare facilities already have the capacity for national and international events. As there is no demand for another center in the city, the most cost-effective option was to

build a temporary facility for swimming and water polo finals because over the lifetime of a permanent sporting venue, 60% of the costs are in maintenance.” Originally, the plan was to leave the outer structure in the pool intact for use as an Olympic Training Center, but that too has been scratched. The release by the Rio office sang the praises of the relative frugality of the new construction in the Olympic Park as compared to the London 2012 Olympics. In total, new construction of a Handball arena, a Velodrome, and the water park will total R$641 million ($272 million USD); while that’s 9% higher than the candidature file estimated, the total net cost will be only about a quarter of the R$1.6 Billion ($680 million USD) of similar facilities in London. Construction on the facility is supposed to begin in the first half of this year, and the contract includes 11 months of operating it at an additional $8 million cost. It is aimed to be completed in the first quarter of 2014, and will host a test event in April – likely to be the Maria Lenk Trophy, meaning that event, at least in prelims, would be open to all swimmers from Olympic countries around the world. (swimswam.com)

January - February 2014

Philippine Construction&Design

INTERNATIONAL NEWS

Pakistan: Kalabagh dam inevitable for progress and prosperity: LCCI LAHORE: Advocating an early construction of Kalabagh Dam, the Lahore Chamber and Industry (LCCI) said that the dam is inevitable for the progress and prosperity of the country as it will produce power at an average cost of Rs1.5/kwh. This cheap power will annually displace costly power worth approximately Rs300 billion with consequential savings of costly oil imports. This saving alone would wipe out the current account deficit, boost reserves and strengthen the rupee. The LCCI President Engineer Sohail Lahsarif expressed these views while addressing a Press Conference on Kalabagh Dam jointly organized by the Lahore Chamber of commerce and Industry and Sind Tas Water Council on Saturday. LCCI Vice President Kashif Anwar, Chairman STWC Muhammad Saleman Khan, Advocate Nisar Safdar from KPK, Col Abdul Razaq Bugti, Engineer Saeed Iqbal Bhatti, Chairman Tehrik-e-Tameer Klabagh Dam Major Siddique Rehan and Engineer Malik Muhammad Tufail also spoke on the occasion. Engineer Sohail Lashari said that the dam will wipe out load-shedding and increase industrial output by $5-6 billion a year. Its contribution to value addition in agricultural output could go up to $10 billion a year. The dam has the potential to wipe out poverty as the project will benefit every province. Engineer Sohail Lashari said that there was no threat to Nowshehra city as it is 150 feet above the water level. He said that Kalabagh Dam, was not only beneficial to Punjab alone but it would be more helpful in erasing poverty from Sindh, Balochistan and Khyber Pakhtun Khawa. The dam would irrigate 800,000 acres of land that is located 100-150 feet above the Indus river level in the province. He said this land could only be brought under cultivation if the river level is raised that is only possible if Kalabagh Dam is built. He said the other alternative is to pump the water which is very costly. He said that creditable studies have indicated that pumping water for potential cultivable land would cost farmers Rs 5000 per acre per year while canal water

Kalabagh Dam in Lahore, Pakistan promises cheap electricity. Photo: The Nation after construction of Kalabagh Dam would cost only Rs400 per acre per year. He said the Kalabagh Dam issue has been so much politicized that a consensus would not be possible therefore the civil society would have to play its role for early construction of Kalabagh Dam as new large water reservoirs would benefit every Pakistani. He said that all the stakeholders should show some greater maturity on the issue of Kalabagh. It is the high time that all undue stands should be brushed aside to save the country from that era of darkness. He said that unlike Pakistan, India is constructing dams at every possible site. It has left us decades behind and coming time does not promise any good thing either. He said that every one knows that the existing dams are constantly silting up leaving ever decreasing capacity to store water. The construction of Kalabagh dam along with other new dams is desperately needed to store adequate water. According to a conservative estimate about 30 million acre feet of water is being wasted into the sea because the country has no big water reservoirs to store it. More importantly, as a result of melting of glaciers due to global warming, a sword of Damocles remains hanging over our

16 | Philippine Construction&Designâ&#x20AC;&#x192; January - February 2014

heads in the shape of floods. An opinion gained widespread support across the country that the losses of recent floods in Pakistan which are estimated to be more than 45 billion dollars could have been reduced if big dams and water reservoirs were in place. He said that another significant aspect connected with the construction of Kalabagh Dam is the surety of sufficient amount of electricity at very cheap price of Re one per unit. The countryâ&#x20AC;&#x2122;s dependence on power generated through thermal sources is costing us way too much causing to face insurmountable challenges to remain competitive both in national and international markets. He said that the present scenario leads to import oil worth over US$ 12 billion a year which is costing us dearly while causing to face insurmountable challenges to remain competitive both in national and international markets. The LCCI Vice President Kashif Anwar said that the controversies about Kalabagh dam are hitting the entire country and adding to masses sufferings therefore a campaign should be launched to ensure its early construction. On the occasion, Col Abdul Razaq Bugti presented Sidhi Topi and Ajrak to the LCCI President Engineer Sohail Lashari. (Onlinenews.com)

Qatar: Unpaid migrant construction workers left to go hungry More than 80 migrant construction workers in Qatar who worked for nearly a year without pay on a prestigious tower in Doha’s financial district are facing serious food shortages and need urgent government assistance, Amnesty International said today. On International Migrants’ Day, the organization is calling on the Qatari authorities to address the plight of the employees of Lee Trading and Contracting (LTC) who were working in conditions that may amount to forced labour. In mid-November Amnesty International’s Secretary General visited the workers’ camp in the al-Sailiya industrial area and subsequently asked the Ministries of Labour and Interior to address the situation at the company as a matter of priority. “It is now one month since we visited these men and found them living in desperate conditions. But their ordeal has not ended,” said Salil Shetty, Secretary General of Amnesty International. “They have not had been paid for nearly a year and can’t even buy food to sustain themselves on a day-to-day basis. They also can’t afford to send money back home to their families or to pay off debts. “The Qatari government must step in now and end this crisis. The men have told us they simply want to collect the unpaid wages they are owed and to leave the country. The Ministries of Labour and Interior must deliver that as soon as possible. Doing so will signal that the government really means what it says about protecting workers’ rights.” Conditions at the camp are grim. Some workers are sleeping on hard wooden boards without mattresses, and some of the temporary accommodation buildings are dangerously unstable; the floors and ceilings in one bedroom are close to collapsing.

Hill International to Manage Construction of Two Mixed-Use Towers in Doha’s Lusail District MARLTON, N.J. and DOHA, Qatar, -- Hill International (NYSE:HIL), the global leader in managing construction risk, announced today that it has received a contract from Real Estate Services Group (RESG) to provide project management services in connection with the design and construction of two mixed-use tower projects in the Lusail District of Doha, Qatar. The 30-month contract has an estimated value to Hill of approximately QAR 35.0 million ($9.6 million). The development includes one 35-story tower that will include a five-star hotel, restaurants, villas and apartments and one 27-story tower that will feature offices, retail and other commercial uses. The total cost of both towers is expected to be approximately QAR 1.0 billion ($275 million). “We are honored to once again be working with RESG,” said Mohammed Al Rais, Senior Vice President and Managing Director (Middle East) for Hill’s Project Management Group. “We are confident that our team will help to successfully deliver both of these impressive tower projects,” added Al Rais. Hill International, with 4,000 employees

The migrant workers helping to build Qatar’s skyline have faced grim conditions. Photo: Amnesty International

Unpaid wages The group, which includes around 60 Nepalese workers as well as migrants from Sri Lanka, the Philippines, Nigeria, China and Bangladesh, are owed up to a year’s worth of salaries. They have been fitting out two floors – 38 and 39 - in Doha’s Al Bidda Tower, which has been dubbed “Qatar’s Home of Football” because a number of football-related organizations have offices there. Amnesty International has seen documentation suggesting that in total LTC owes the workers around 1.5 million riyals (approximately US$412,000). The exact reasons the company did not pay the men remain unclear. The project was completed in October 2013, and since then the workers have been stranded in their camp, without pay and facing severe shortages of food.

in 100 offices worldwide, provides program management, project management, construction management, construction claims and other consulting services primarily to the buildings, transportation, environmental, energy and industrial markets. Engineering News-Record magazine recently ranked Hill as the 9th largest construction management firm in the United States. For more information on Hill, please visit our website at www. hillintl.com.

Lusail is an all-new coastal city under construction north of Doha and will cover 35 square kilometres. The project will contain 18 different districts and will include lagoon with two marinas, 25,000 residential units housing 200,000 people, high and low-rise buildings, commercial districts and mixeduse areas, retail, two golf courses, 22 schools, a hospital and resorts.

Certain statements contained herein may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and it is our intent that any such statements be protected by the safe harbor created thereby. Except for historical information, the matters set forth herein including, but not limited to, any projections of revenues, earnings or other financial items; any statements concerning our plans, strategies and objectives for future operations; and any statements regarding future economic conditions or performance, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and assumptions and are subject to certain risks and uncertainties. Although we believe that the expectations, estimates and assumptions reflected in our forwardlooking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forwardlooking statements. Important factors that could cause our actual results to differ materially from estimates or projections contained in our forward-looking statements are set forth in the Risk Factors section and elsewhere in the reports we have filed with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statement. (Wall Street Journal)

January - February 2014

Philippine Construction&Design

cover story

Construction boom, a challenge to the steel industry By BGEllorin

The National Steel Corporation complex in Iligan City. Source: National Steel Corp - Iligan Plant Facebook.

After decades of slumber, the Philippine steel industry may finally get the much needed infusion of investments.

18 | Philippine Construction&Designâ&#x20AC;&#x192; January - February 2014

“

The industry has seen over the last two years a remarkable growth—a 50-percent increase in demand for steel products and many companies are expecting the strong demand for steel will remain in the next few years. However, we still have to assess that, if the demand will require additional capacity

”

---Undersecretary Adrian Cristobal, Dept. of Trade and Industry This bodes well for the construction industry that take up to 70 percent of the country’s steel demands. With no integrated steel plant after the closing of the National Steel Corporation in Iligan City in 1998, and its successor, the Global Steel Corp/TKC Steel Corp. which is producing steel from scrap metal hounded by power problems in Mindanao, the country’s steel industry is dependent on imports. As such prices of steel-based construction materials are dependent on foreign exchange rates.

There were queries from prospective investors about the mothballed steel manufacturing facility of Global Steel Philippines Inc. in Iligan City, he said. According to Cristobal, some of these interested companies are already in the advanced stages of their due diligence, while the others are still studying the market. These prospective investors are considering producing hot rolled coils and cold rolled coils and reviving the production of flat steel, Cristobal added in the same newspaper report. Other users of steel in the country are 17% light and heavy fabrication including ship repair); 7% other consumption; 6% packaging (Source: Phil. Iron and Steel Institute)

Steel and the construction industry

The Philippine construction industry which is at front end of the recent robust economic growth of the country will surely benefit from any development in the domestic steel industry. “The performance of the Philippine steel industry is closely linked to the growth of the construction sector. Steel products

used in the construction of buildings, houses, and infrastructure facilities include rebars, angles, channels, beams, sheet piles, wires and wire rods, GI, ZnAl and pre-painted sheets, and pipes and tubes,” note a 2012 study entitled: Growing firms of steel: A competitiveness roadmap for the Philippine Iron and Steel Industry. (De Vera, et al. 2012) With the country competing for supply in the global market – where there is sustained strong demand, the result on the construction industry is not good – it means higher construction cost. On the average, prices of construction materials increased by 2.6% in 2010. Significant price hikes were recorded for Tinsmithry Materials (4.5%), Electrical Materials (4.3%), and Plumbing Materials (2.4%). Higher prices of commodities (e.g. steel and copper) in the world market were a major factor for the increase in the prices of construction materials. Among the steel needs of the construction industry are steel bars, pipes and tubes and galvanized sheets.

Philippine Steel Product Linkages

Source: Growing firms of steel: A competitiveness roadmap for the Philippine Iron and Steel Industry by Roberto de Vera, Leandro Tan and Gilbert Garchitorena

But, lately, government is bullish on the steel industry.

Steel companies from Japan, China, Korea and Taiwan have expressed interest in setting up shop in the country to cater to increasing domestic demand for steel. “The industry has seen over the last two years a remarkable growth—a 50-percent increase in demand for steel products and many companies are expecting the strong demand for steel will remain in the next few years. However, we still have to assess that, if the demand will require additional capacity,” said Trade Undersecretary Adrian S. Cristobal Jr. in an Oct. 13 report of the Inquirer.

January - February 2014

Philippine Construction&Design

COVER STORY

“

The performance of the Philippine steel industry is closely linked to the growth of the construction sector. Steel products used in the construction of buildings, houses, and infrastructure facilities include rebars, angles, channels, beams, sheet piles, wires and wire rods, GI, Zn-Al and pre-painted sheets, and pipes and tubes

”

--De Vera, et al. 2012

Without steel, the construction sector will screech to a halt.

PH steel industry

70 – 80 percent imported while slabs (flat products) are 100 percent imported. The country imports steel from Russia, Ukraine, Japan, Korean, India and Taiwan.

The industry had its heydays when the Asian financial crises in 1997 aggravated the fiscal and financial problems of the National Steel Corporation (NSC) in Iligan City – the country’s only integrated steel mill in 1999.

To revive the country’s steel industry, Republic Act No. 7103 (Iron and Steel Industry Act) in 1991. The law aims “to promote industrialization through the immediate establishment of an integrated iron and steel industry.” It is offering fiscal and tax incentives to investors in the steel industry.

The iron and steel industry in the Philippines started with the establishment of the country’s first nail -making plant by the National Development Company in 1948

The only hot rolling mill in the country was run by NSC with a capacity of 350,000 metric tons (mt)/year of hot - rolled sheets and coils until its closure. The Indian firm Global Steel Corp./TKC Steel Corp., tried to fill the vacuum by buying the NSC’s plant and converted it in a mini steel mill by smelting scrap iron. But this venture was hobbled by the perennial power shortage in Mindanao. Semi-finished steel products such as blooms and billets (long products) are

However, much work still needs to be done make the country’s steel industry domestically sustainable. With lagging developments in the domestic steel production, the construction sector which is forecast to grow 46 percent in 2014 (which translates to about 15 percent annual increase in steel demand), will have to be feed by imported and expensive metallic inputs.

Philippine Iron and Steel Industry Flow Chart

Source: Source: Updated from Competitiveness in the Philippine Steel Industry by Marissa C. Garcia and Sandy Vicente (2005)

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January - February 2014

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PROJECT REPORT-PRIVATE

Construction abuzz in Mactan Newtown By Dennis Singson

The P20-billion township project of the Megaworld Corp. in Lapu-Lapu City, Cebu will continue to provide business opportunities to players in the construction industry in the next two to three years. The Mactan Newtown at the northern tip of Mactan Island is starting to come alive as developments have started to be realized at the 25-hectare property. The planned 17 mid-rises and high-rises are sure to bring in investors, constructors and suppliers who have found success in Cebu’s economic boom brought about primarily by two key industries, that are its economic drivers: Tourism and the outsourcing sectors. Promising to bring to Cebu its livework-learn-play concept that has made its other township projects in Manila as the community to be in, Megaworld Corp. has started to show the tangible signs of its mixed-use concept at Mactan’s newest town, the Mactan Newtown. If the success of the town’s first completed building, the One World Center, is an indication, then Mactan Newtown will live up to its promise of a vibrant high-end community. The five story, One World Center, has already attracted two business process outsourcing companies –The Results Companies and EnfraUSA. Investors have already started to pour their money in the development— bringing in one of the components of its concept to the town—the work part. Results Manila is occupying 3,700 square meters of office space at the new building. One of McDonald’s biggest outlets in Cebu has occupied a part of the ground floor of the One World Trade Center serving the employees of the two

outsourcing firms in the building. Megaworld plans to sustain this development through the years. According to Megaworld, its township project will comprise of clusters of three to four 17 to 18 story buildings--each cluster with a different theme for its architectural design. The 8 Newtown Boulevard will be an East Asian themed architecture. Aside from the mid-rises, One World Center, and Two World Center—both five story buildings, the Boulevard will feature four 18 story residential buildings. The buildings’ condominium units— studio and one bedroom units range from 38.7 to 51 square meters. Two other clusters of 17 story high-rises the One Manchester Place and the One Pacific Residences, whom Megaworld described to have a 21st century design and a more European architecture. The firm promises high-end amenities in these two clusters like horizon-edge swimming pool complex with paved sunbathing deck, spas, a bonsai and Japanese-landscaped garden, a gym and a fitness center and outdoor dining area. If Eastwood in Manila is to be mirrored for the Mactan Newtown project, then the roads will be wide –four lanes -- and if scaled down models of the project are to be based, the Boulevard will be lined with trees with wide spacious two lane roads. Both clusters—the One Pacific Residences and the One Manchester Place-- will offer condo units ranging from 42.7 to 92.1 square meters in size.

22 | Philippine Construction&Design January - February 2014

Plus a balcony to give residents a view of the picture-perfect Hilutungan Channel as well as the whole community. Aside from the promised high-end malls, gyms, cyber offices, Megaworld also plans to build a school in the community by 2016, which satisfies the learn component of its township concept. According to reports, Megaworld plans to add at least 150,000 square meters of office spaces inside the township project in four to five years time. “Megaworld is keen on expanding its office spaces for BPO companies inside The Mactan Newtown mainly because we see the significant growth of the BPO industry in Cebu,” Jericho Go, Megaworld first vice president said in a press statement from a recent report. The Mactan Newtown project is the first township project of Megaworld outside Metro Manila. Its other successful township projects are Eastwood in Quezon City, McKinley Hill in Taguig City ,and Newport City in Pasay City. Cebu is the perfect choice for Megaworld because it is one of the BPO hubs in the country. Cebu has even figured 8th in Tholon’s list of Emerged BPO destinations early this year.

Construction mogul Andrew L. Tan, chairman and CEO of Megaworld shows President Benigno Simeon Aquino a scale model of the Mactan Newtown. Source: Malacañang photo handout Tholons is an advisory company for global outsourcing and research. According to Megaworld, the school will be supervised by Lasallian Schools Supervision Office (Lasso). Megaworld said that the learning center will be located in a multi-level building equipped with laboratories, audio-visual rooms and open and covered courts in a 7,000 square meter area. Lasso is an implementing arm of the Lasallian Schools Supervision Services Association, Inc. Another perk for investors to Megaworld’s Mactan Newtown is that the area has been declared as a “Special Economic Zone.” This puts the township project under the Philippine Economic Zone Authority (PEZA) and will be a big plus for businesses in the area since they can enjoy various privileges like tax incentives and holidays. According to Megaworld, the five-story One World Center is just the first of the BPO buildings in the township project’s cyberpark. This will be home to other BPO buildings like the newly-launched Two World Center, at the Eight Newtown Boulevard. The tourism sector is another market

Masterplan of the 25-hectare Mactan Newtown in Lapu-Lapu City, Cebu.

that the Megaworld project can tap into. With Cebu being a tourism destination in the country, the Mactan Newtown project is right where it should be, once most developments in the project are completed within a couple of years. Accessibility is also another plus to the new town with the Mactan Cebu International Airport only less than an hour’s drive from the place, which is really an advantage for frequent travelers to Cebu. According to the Tourism Department’s Central Visayas office, partial tourist arrivals from January to April this year has already reached 1.2 million with Cebu registering more than 800,000 visitors in that period. The tourism boom has already prompted the government to rehabilitate and build a new, bigger terminal at the Mactan-Cebu International Airport as it expects more tourist arrivals in the coming years. The Department of Tourism is targeting 10 million tourists by 2016. Aside from the business aspect, Mactan Newtown is really Megaworld’s concept of what a community should be as shown in its other township projects in Metro Manila. Condominiums, cyber offices, schools,

upscale commercial establishments, and leisure amenities—all in one place. That’s what Mactan Newtown is all about. This is Megaworld’s reality of the live-workplay-learn concept—the Megaworld community./Dennis Singson

“

Megaworld is keen on expanding its office spaces for BPO companies inside The Mactan Newtown mainly because we see the significant growth of the BPO industry in Cebu.

January - February 2014

”

---Jericho Go

Philippine Construction&Design

INDUSTRY REPORT

PH power industry to fuel construction By BG Ellorin

www.poweredbycoal.blogspot.com

The Philippine Power Industry is deregulated utility industry in a highly politicized social condition.

The Electric Power Industry Reform Act (Epira) of 2001 (Republic Act 9136) cemented the deregulation of the power industry. Among its salient features are the unbundling of the power sector into three sub sectors, namely 1) generation; 2) transmission; and 3) distribution. The deregulation of the power industry effectively eases government participation in the power industry to a minimum. Government under this regime has to privatize its generation assets or power plants. Give to a private company through a franchise the transmission of high voltage electricity from power plants to distribution utilities which is a mix of private companies and electric cooperatives in the rural areas. Under this deregulated set-up, determination of power prices is left, at least theoretically, to market forces.

24 | Philippine Construction&Designâ&#x20AC;&#x192; January - February 2014

to privatize the island’s biggest power plants – the Agus and Pulangi facilities. But this has been met by stiff opposition as privatizing the fully-amortized hydro power plants would result in drastic power price hikes in Mindanao. Under the WESM regime, power utilities can buy from the PEMC power that may be unmet by its main power supply contractors. Prices in the WESM is determined by supply and demand. Hell broke loss, sort of in Metro Manila In December 2013 when the country’s biggest power distributed announced a P6kilowatt hour increase. Their reason, they are buying expensive power from the WESM as their main energy suppliers which were powered by the Malampaya gas field shut down for maintenance. This resulted in calls for the review of the Epira, especially the WESM from Congress.

Transmission and distribution

The other sub-sectors in the Philippine power system are the transmission and distribution. The transmission system or the network of high voltage power lines from baseload power plants to distribution utilities is now franchised to the National Grid Corporation of the Philippines (NGCP). The NGCP is majority-owned by the Sy fmily, with Henry Sy Jr., son and namesake of the country’s richest man known for the SM chain of malls. The NGCP delivers electricity to power distributors and charges wheeling fees or fees for use of power lines to the power utilities which may be corporations like the Lopez-owned Meralco, the Aboitiz-controlled Visayan Electric Company and Davao Light or to the country’s 117 rural electric cooperatives. The distribution utilities convert these high voltage electricity to 220-volt that power houses. In sum, the cost of power the end-user pay is the sum of generation cost, wheeling or transmission fees and distribution charges. Upward movements in power rates is most volatile in the generation sub-sector as the country’s power is primarily sourced from fossil fuel, mainly crude and coal.

Spot market

The Epira created the Wholesale Electricity Spot Market or WESM).

At the height of the crude oil price rise in 2008, reaching up to U$147 per barrel, the price of coal also rose from below U$50 per ton to over U$100 per ton.

Power and construction

The WESM is a mechanism where electricity is traded as a commodity. It went operational in Luzon and the Visayas in December 2010 with the Philippine Electricity Market Corporation (PEMC). An interim power spot market has been in place in Mindanao to prepare it for WESM once the proposed privatization of the National Power Corporation’s (NPC) Agus and Pulangi hydro electric power plant facilities consummates.

Buildings need power to operate. As the demand for power increase with development, it opens opportunities for construction players. A hydro power plant for examples needs substantial civil works. Crude-fired, coal-fired power plants, geothermal power plants, solar and wind power plants have significant civil work demands from building power plants to access roads to the power plants and ports and getty’s for coal and crude.

Under the Epira, the Power Sector Assets and Liabilities Management Corp. (Psalm) would among others bid-out to the private sector power plants operated by the NPC, with the exception of Mindanao which was given by the law until 2011

According to the 2013 power outlook by the Department of Energy, there will be continued energy demand in the country’s Luzon, Visayas and Mindanao grids.

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Philippine Construction&Design

INDUSTRY REPORT Figure: Luzon Grid Supply-Demand Outlook, 2012-2030 name: Haiyan) damaged power infrastructure mainly in the Visayas. The DOE estimates damaged to power infrastructure at around P4.5 billion. In the Mindanao grid, many power plants are needed as it is forecasted to have a supply shortfall of at least 250MW by 2014.

From 2012 to 2015, there are 13 power plants project in Luzon for a total of 1,137.7 megawatts of installed capacity. The Binga Dam uprating P1 in 2012 (5 MW); Bacman Geothermal (130MW), Binga uprating P2 (5MW), GN Power (600MW), CIP2 Bunker (21 MW), Pililia Wind (67.5MW) , Payatas LPG (1.2MW) and Green Future (132MW) in 2013; Binga uprating P3(5MW) and Maibarara Geothermal (20MW) in 2014; Binga uprating P4 (5MW), Putting Bato (135MW) and SCJI Power (11MW) in 2015. In the Visayas Grid, there are seven power plant projects from 2013 to 2017 for a total of 310 MW. These are: Villasiga hydro electric plant (8MW) in 2013; Nasulo Geothermal (20MW) in 2014; Cantakoy hydro electric plant (8MW) and Concepcion Coal unit 1 (135MW) in 2015; Asian Energy Biomass (4MW) in 2016; and Concepcion Coal unit 2 (135MW) in 2017.

At least eight power plants are programmed from 2013 to 2016 with installed capacity of 588MW. This does not include the following projects in the pre-development phase like the 415MW expansion of the Mindanao Coal-fired Power Plant in Villanueva, Misamis Oriental, the 100MW coal-fired power plant in Balingasag, Misamis Oriental; 250MW Bulanog-Batang run-of-river hydro electric power plant and the 300MW Pulangi 5 hydro electric power plant. The eight programmed projects are the following: Mapalad Diesel Power Plant (15MW), EEI HFO Peaking Plant (15MW); Cabulig Mini-hydro (8MW) in 2013; Therma South Coal (150MW) in 2014; Therma South Coal (150MW), Sarangani Coal unit 1 (100MW) and Mt. Apo Geothermal expansion (50MW) in 2015; and the Sarangani unit 2 (100MW) in 2016.

Figure: Mindanao Grid Supply-Demand Outlook, 2012-2030

The above programmed projects does not include the massive rehabilitation works for supertyphoon Yolanda (international

Figure: Visayas Grid Supply-Demand Outlook, 2012-2030

More opportunities

Aside from actual participation in the construction of power plants, the construction and design sector can find more opportunities and challenges in providing designs. The demand for more renewable and efficient energy plants in the short and medium terms, because of the global scientific consensus on climate change being caused largely by burning fossil fuel would give engineers and designers more opportunities.

26 | Philippine Construction&Designâ&#x20AC;&#x192; January - February 2014

January - February 2014

Philippine Construction&Designâ&#x20AC;&#x192;

CONTRACTOR’S PROFILE

Lahden Duo Model (Image courtsey of Tekla)

VTS and Tekla

Channeling Opportunities... Many companies involved in architecture, engineering, and construction (AEC) industry, if not all, are concerned about the implications of reworks and delays in their project due to design conflicts, errors, and miscommunication between project stakeholders. 28 | Philippine Construction&Design January - February 2014

hat is particularly bothersome is that these problems when not addressed properly at once in the beginning become a bigger problem as the project progresses. These are just some of the issues that Tekla has a solution to offer. In the Philippines, there is only one firm that resells this solution – Vibrant Technology Solutions Co. It was established in 1999 formerly known as HSD Computers Private Limited Co. For 14 years, VTS is the sole reseller of Tekla BIM solutions in the country. With this set up, the company has a hold on the entire Philippine market. And over the years, VTS is continuously living up to their mission to provide solution in the building and construction industry’s challenges.

One solution

Tekla Structures is one software solution that has different configurations to match the different needs of the industry. It provides the highest level of constructability for the building and construction industry and covers the entire building and construction process from conceptual design to detailing and fabrication, construction management, and erection to facility management. With Tekla, users can model all materials and create accurate and constructable 3D models. And with Tekla’s capability to collaborate and integrate with other solutions using the open BIM approach, coordination with architects, consultants, and contractors become easy and efficient.

Colleges of the Philippines, and Cebu Institute of Technology. Their customer base includes some of the biggest names in the construction industry like EEI, Datem, Monocrete, DMCI, JGC, and AG&P. Building and construction industry in the Philippines is adapting to the latest technology trends in construction plus the gaining popularity of the BIM process. VTS and Tekla are here to channel opportunities and to make the life of engineers and contractors easier when they do their job. They will continue to provide the best, most accurate, and most reliable BIM solution known in engineering.

Reduce risk, cost, and time

For all project stakeholders to work on one central model offers great benefits to everyone. Since they can see the model of the actual project, early detection of errors and conflicts is possible. In this way, site problems during erection and construction will be avoided. For general contractors having a 3D model at hand helps them evaluate and understand the project before building. They can collaborate easily with other project parties. Furthermore, planning and managing their daily work can be integrated in the model. Tekla Structures is not an analysis and design software. But according to VTS, it does not mean this software is not for structural engineers. In fact, creating the conceptual model using Tekla makes the job a lot easier. Tekla model can be link with analysis and design (A&D) packages. Other benefits that a structural engineer can get from using Tekla are construction documentation is easily generated from the model and they can accommodate design changes painlessly. With Tekla’s model, plan, and pour, concrete contractors can avoid errors because of 3D visualization. They can understand the project better and improve insight communication. They can also reduce risk with accurate quantity take-offs and increase pour productivity with quick and easy 3D modeling. For steel, precast, and rebar fabricators they can reduce cost and time as well as wastage with shop drawings done fast and accurate from generating directly from the model. Manual works and errors are minimize with Tekla because drawings and material quantity take-offs can be extracted directly from the model. Tekla also integrates with machine automation systems that the fabricators are using, thus, optimizing the whole fabrication process. They can also easily manage any changes in design that might occur because they do not have to redo the shop drawings. Any changes will be done in the model and the drawings will adjust accordingly.

Bella Hotel Model (image courtesy of Tekla)

Alta Bates Model (image courtesy of Tekla)

Standardize products and process

Most companies in the Philippines have their own standard products and connections. With Tekla, it is possible to standardize production using own profiles and standards. Tekla Structures has a wide array of connection components that can be customized according to user’s specific requirements. It has 30 localized environments to make using and implementing easier around the world.

Tekla Users

To date, VTS has a total of 58 customers including 3 educational institutions – Mapua Institute of Technology, Central

Offshore Model (image courtesy of Tekla)

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Philippine Construction&Design

Project management minimize risks and maximize profits Proper project management spells the success of construction projects. A project organizational structure that has the project manager on top to do overall project supervision and coordination is very important. Among the things the project manager should work on, with project teams are project design; and cost, time, quality, contract, and safety management. Three parameters usually determine project success, namely: completed on schedule, within budget, and quality according to agreed standards. A construction manager has to have knowledge and experience not just on the science and engineering of construction, but he has to be a good financial manager, good communicator, problem solver and good leader – one that gives the right direction and motivation. To be successful an organization requires having an effective project management team, if it is to achieve goals within budget, on schedule, and to agreed quality standards

Planning

The owner, developer, and supervisors,

need to plan the complete project. Project planning includes defining the main purpose of the project, the area of development, facilities and amenities to provided, the resources needed and definite work schedule. It is also a must for the project plan to have a risk analysis and contingency action plan. Having a plan will provide the ideas on steps to take, even including geographical surveys to determine suitability of the project. The general plan will then be divided to specific areas of the project. Each component of the project will then be required to make a detailed program of work which includes among others, detailed timeframe, detailed list of resources – budget, tools, equipment, technical skills needed. With the specific plans completed, the next step is to select the most professional staff needed for the project management team.

Human Resource

Projects are implemented by people

30 | Philippine Construction&Design January - February 2014

www.dict.space.4goo.net

PROJECT MANAGEMENT

working together as a team with definite objectives and timeframes within a definite set of available resources. As in any organized endeavor, it is finding the right people – team members is extremely important. If there are individuals with specialized knowledge or training in any particular field, let such an individual work in his or her area of specialty, commonly referred to as “putting round pegs in round holes”. Then let each and every individual working on the project know his or her responsibilities. Discuss with the team members what is expected from each and every individual as well as the team as a whole. Create a structure and an organizational chart. Let everyone know their supervisors and from whom to consult or take suggestions. To enable the project team to operate smoothly each individual needs to align personal goals to corporate goals as a whole. Let every team member fully appreciate the critical importance of their jobs to successful completion of the project and the importance of meeting the goals of the organization. When team members are appraised of how critical their jobs to the success of the project and meeting organization goals, then they are more likely to function more effectively and to take their responsibilities more

Contracts

Employee contracts do not only safeguard the interests of the project, but also define the functions and expected work output of an employee. Supply and service contracts define the deliverables and prices of specific supplies and services. It is necessary to review and execute the necessary project contract formalities with all parties involved, including the owner, the architect, the builder, other service providers and suppliers. A good lawyer safeguards the interests of the projects by executing the best deal or contract. The project manager checks and makes sure those conditions regarding legal formalities that need to be met in reference to municipal, provincial or national government authorities in the area are acquired. Licenses regarding land and other geographical elements involved are usually required. Permission from authorities on environmental and other such agencies need also to be usually obtained.

Budget and Resources

Budget is the lifeblood of any project. Judicious appropriation of budget and other resources however spells success or failure of a project. Individual costs that need to be incurred is calculated for each part of the project. Determine total budget amount and divide the various factors of the project. This includes the costs for layout, building, plumbing and water system installations, electrical fittings, roofing, flooring, and so on. Since there are always possible construction management risks, maintain a small amount for such contingencies.

Consumption and usage of materials and resources are executed in accordance with budgets as planned initially in the planning phase.

Coordination and Communication

The construction manager is responsible for overseeing that all workers are performing tasks assigned according to the schedule of the project. That all the work among personnel, such as the builder, architect, engineers, and other workers are being executed according to budget and schedule. Regular communications with members of the project will clear and resolve unanticipated problems that occur unexpectedly. The project manager needs check that workers are performing according to plans, and their work according is according to schedule. Proper communication with the construction team is a must when it comes to managing the project efficiently. Many advanced construction management software are available today that help managers to keep a track of the various factors of the project, i.e., design, budget, progress, deadline, resources, etc., of the project. The project manager needs to monitor performance of the various members of the team to make sure that they are meeting goals and also to improve their individual performance. Performance need to be evaluated formally and regularly. The progress of the project together with results achieved need to documented on a regular basis and communicated to all the stakeholders; including clients, supervisors or the management. Monitoring project progress enables the manager to make needed corrections thus minimize potential failures.

Effective quality control is critical part of completing successful projects.

Site and Safety Inspection

One of the most important tasks of a project manager is site inspection. It is essential to supervise workers performance and progress and also to check that safety standards are properly maintained. Site inspection enables the project manager to evaluate the actual status of the work for each job section and check on the progress being made. Safety and building codes need to maintained and documented, so these can presented to safety inspectors when required. A great amount of physical effort is required for in-site management tasks, including site inspection. Project managers need to be physically fit to perform management tasks to be able to handle miscellaneous on-site management tasks. Management efficiency leads to successful projects that offer many benefits to the organization. It provides enhance productivity, reduces costs enabling organizations higher profits and greater competitive skills, as well as minimized risks. Thus, by observing simple suggestions mentioned, an organization can minimize risks, enjoy benefits mentioned and maximize profits. Whenever a project is finally completed, regardless if the goals were achieved, there is always a room for improvement. So review the documentation and experience gained and examine the areas/ jobs that could have been done better. This will enable the organization to do better in future projects. Based on articles by Aastha Dogra and Stephen Rampur

http://www.eoearth.org

seriously. Making this possible enables everyone to work more professionally, taking pride in the importance of their contribution to the success of the project. Great Roman generals like Julius Caesar always addressed his troops and centurions prior to any battle to apprise them of their jobs and what was expected of them.

Hiring workers and allocation of duties for the project is the responsibility of the project manager. His or her responsibilities include the purchasing of raw materials and arrangement for construction tools and equipment. The project manager ensures cost control by letting workers use available resources in the most effective and efficient manner. January - February 2014

Philippine Construction&Designâ&#x20AC;&#x192;

SALES & MARKETING MANAGEMENT

Construction Budgets A project is a set of work to be undertaken by a group or a person that has definite start-up date and deadline. Implementing projects need resources, among them finances.

ne of the most important things a project planner has to consider is the budget. Organizations undertaking projects usually sets the budget, but for client projects, the client sets budget estimates and the timeframe, and the task of the project manager and/or planner is to determine the project cost and formulate a program of work based on the budget set by the client.

What is a Project Budget?

Project budget refers to the overall expenses required for a specific project to done. Items in the project budget usually include labor, resources, and contingent cost. Hours put in by those working on the project are usually included in project bills in client projects.

Proper Resource Allocation

It is crucial for a project manager to analyze what skills to brought into the project and identify human resources to be tapped for a project. Determination of available resources that would be used in the project is also important. This would help in making accurate cost estimates. Choosing the right employee for a project reduces the risk of loss or wastage of project resources.

Budget Management Software

There are available computer software that could aid project managers in formulating accurate project budget. The advantage of using this technology is not just the ease in making project proposals but also the ability to create certain scenarios which a project manager can choose. At project implementation, these software can keep a track of the estimated budget and actual expenses. All the project manager does is to input all transaction and expense detail in the software.

Tracking expenses is crucial in effective project management.

Proof of Expenses

Having hard copies of transaction and expenses papers is also important. This is particularly important in manufacturing or construction projects. Copies of these documents needs to be attached in project progress reports. Purchase orders and expense receipts help in cross checking with the computer software if the correct entry has been made. The hard copies serve as physical evidence of details recorded in the computer software.

Regular Budget Review

It is a must for a project manager to keep track of all expenses at any given period. Periodic reporting is also important in tracking project progress or the status of actual work, resources spent and what are still available. Most companies do weekly project progress monitoring. This allows the project manager just enough time to make changes in expenditure and/or activities.

Budget Risks Tranparency

When it comes to budget planning and management, healthy communication among those involved in the project is also a requirement. It is extremely important that a manager assesses any risks concerned with an increase in budget expenses. Budget transparency among the project stakeholders is a healthy management practice. It is very possible that project expenses could go beyond limits. External factors like sudden upward movement of prices of supplies needed for the project can happen, affecting the implementation of a project or even threatening its completion. The manager should inform the client about these things, so adjustments can be made. The

32 | Philippine Construction&Design January - February 2014

accounts department and the HR have to be informed of budget changes. Doing so will prevent the delay that may happen due to budget issues. There are also means to adjust cost by looking into budget items like transport, overtime, material and supplies, etc., to see if some can be cut down and realign the resources to other items that can have shortage. Following these guidelines will help you to keep the budget under control without having an impact on the quality of deliverables. Budgeting Construction Site Costs Building materials and installation costs are fairly easy to determine. The figures are usually taken from subcontractor’s bids, thus working on the budget in these aspect is relatively straightforward. Costs that are often overlooked are those relating to the construction site itself, as well as management, labor, and facilities. These costs are known as “General Conditions,” and include any expenses incurred on the job that are not directly related to building or purchasing materials.

www.fundsforngos.org

Steps in Budgeting

Management costs. This includes the salary and labor burden of the project manager, project administrators, superintendent and assistants. Multiply the hourly salary of each of these individuals by the number of hours he or she will work on the project each week. Use the project schedule to determine how many weeks the project is expected to continue, and multiply this by the total weekly salaries to find total management expense. 2. Determining other labor costs. While most work on the project will be performed by subcontractors, the general contractor may also have some employees on the site. These individuals may be responsible for safety installations, covering scope gaps, or helping with cleanup and material storage. Multiply the weekly salary of these individuals by the length of the project to determine labor costs. 3. Cost of temporary office space. Most project managers and superintendents prefer to work onsite using trailers or improvised cargo vans. These may be owned or rented

by the company. Determine the monthly cost of this facility and multiply it by the duration of the project. Temporary office costs should also include things like internet and phone service, printers and copiers, and basic office supplies. Portable toilets should also be included, as well as maintenance and delivery for these units. 4. Figure in the cost of temporary storage areas or other structures. These may include storage containers, temporary rooms for hardware storage, or any other temporary facilities relevant to the project. Depending on the area youâ&#x20AC;&#x2122;re working in, you may also need to include environmental protection, such as silt fences or other barriers. 5. Include safety costs, such as personal protective gear, signage, road blocks, guardrails, and canopies. If the job requires an on-staff safety inspector or inspection service, this cost should be included here as well. 6. Provide a small allowance for tools and supplies. Often, the superintendent or company laborers may need some basic tools, lumber, locks, cleaning supplies, or

other equipment. Most projects include an allowance of a few hundred to a few thousand dollars each month for these types of purchases. 7. Include insurance premiums, including liability, auto, and workerâ&#x20AC;&#x2122;s compensation. While these expenses may be paid annually, you should only include the amount applicable to the job, which can be determined by dividing annual premiums by 12. Multiply this monthly cost by the number of months in the project schedule. 8. Add in the cost of permits, licenses, and municipal building inspections. The project scope should clarify whether these items will be paid for by the owner or the contractor. 9. Review the specifications manual and the project contract carefully to determine whether any other expenses should be included. Any items that are not clear should be discussed before the budget is presented to the owner. Excerpted from an article by Stephen Rampur and Emily Beach

January - February 2014

Philippine Construction&Designâ&#x20AC;&#x192;

RISK MANAGEMENT

www.mta.info

Construction Blasting Risk Management

As we can see from the November 2008 article, “Construction Blasting Fundamentals,” there are many forms of risk associated with blasting work. It is clear that, despite these risks, experience reveals that blasting can be performed without incident, when adequate risk-control measures are used to manage the work. To ensure safe blasting procedures, it is very critical to understand the terminology used in the specifications. As a general rule of thumb: The “blast site” is the area where explosive material is handled during loading, including an area extending at least 50 feet in all directions. The “blast area” is the entire zone that may be affected in any way by the blast. Blast Management Every blasting operation must have a “Blaster-in-Charge” (BIC). This individual has overall responsibility for all aspects of the blasting operations. Prior to any blasting, the general and site-specific blasting hazards and environmental impacts must be defined for each blast site. Blasting plans and procedures must incorporate all reasonable measures necessary to eliminate negative impacts on persons, property, and the environment. Explosive storage on-site should be limited as much as possible, but if this is necessary,

then all federal, state, and local regulations governing explosive storage must be followed. In blasting design there are generally two major considerations: safety concerns and operational concerns. Safety concerns should always come first. Pre-Blast Review Meeting Before blasting, the Blaster-in-Charge should assemble all blast crew personnel to review the blast area security plan and blast emergency plan. The blast area is the area in which there is any potential for flying material, air over-pressure, or gases from an explosion to cause injury to persons. The Blaster-in-Charge should cover the following issues: 1. Acknowledge the shot is properly loaded, hooked up, secured, and ready for detonation. 2. Review the blast firing time schedule. 3. Review the direction of the blast movement, and define the blast area for

34 | Philippine Construction&Design January - February 2014

security purposes. 4. The Blaster-in-Charge should specify who should fire the shot and define the safe shot initiation location. 5. Review the communication system that should be used between the Blaster-in-Charge and all blast area security personnel. 6. Specify what signals should be used to announce: a. Pre-blast warnings b. Blast time c. All clear d. Blast countdown suspension 7. Outline general emergency plans that should be used in case of an accident or other unplanned event. 8. Review procedures for handling misfires. 9. Confirm all warning signs have been posted Clearing and Guarding Procedures The Blaster-in-Charge should coordinate blasts, with all concerned parties, on an approved schedule. To do so, clearing and guarding procedures must be set, communicated, maintained, and evaluated. 1. A safe area around the shot area should be determined and cleared. Guards should be assigned to secure all possible entryways into the blast area. 2. The Blaster-in-Charge should be in constant radio communication with all personnel during the clearing and guarding operation. 3. When all guards confirm that the area is secure, the Blaster-in-Charge should connect the primary initiation device 5 minutes before the scheduled blast time. 4. The 5-minute blast warning signal should then be sounded. 5. Four minutes later, the 1-minute blast warning signal should be sounded. 6. At blast time, the Blaster-in-Charge should fire or instruct the designated shot-firer to fire the blast. 7. After the post-blast fumes have dissipated to safe levels, the Blaster-in-Charge should inspect the shot area. During the examination the blaster should look for: a. Dangerous rock conditions. b. The presence of undetonated explosives, and/or initiators. c. Abnormal blast conditions and any other hazards. 8. All misfires should be safely removed, and other hazardous condition corrected or secured. 9. When the area is clear of hazards to nearby traffic, the public, or the job site personnel, the Blaster-in-Charge should give the all-clear signal and relieve the guards from their posts. 10. An approved lightning detector should be used to monitor approaching electric storms. All precautions should be taken in the event of a storm. Misfire Procedures When blasting misfires occur—or are

suspected—the misfire procedures plan should be initiated. The Blaster-in-Charge should determine the affected area. 1. No one is to enter this area for at least 30 minutes. 2. mOnly the minimum required people should enter the area to safely re-fire, wash out, or recover unshot explosives. 3. Record the location of any potentially undetonated explosives on the blast report. 4. Expand the blast security area if flyrock potential is increased when misfires are reblasted. Blast Emergency Plan The elements of specific blast emergency plans should vary based on the unique site conditions. The plan as a minimum should include the following. 1. Post all emergency response telephone numbers, including medical response, OSHA, MSHA, fire department, police, state regulatory authorities, home phone numbers of all site supervisors and workers. 2. Plan should be clearly communicated and understood by all personnel. 3. Define notification procedures and their timing. 4. Identify location of first-aid kits and identify first-aid providers. Blast Reports Individual blast reports should be prepared for each blast. Blast reports should include the following. 1. Blast date, time, and location 2. Weather end environmental conditions, such as wind speed and direction. 3. Blast geometry: hole size(s), hole depth, drill pattern, number of holes, bench height, and sub-drilling. 4. Blast hole loading summaries: typical hole loads, explosive types, primers, detonator delays, stemming type and quantity, as well as total explosive utilized, byproduct. 5. Shot volume and powder factor calculations. 6. Initiation timing schemes: in-hole delays, surface delays, and planned hole firing times. 7. Blast effect monitoring data (such as ground vibration levels, air-over-pressure measurements). 8. Notes about blasting results. 9. Name and signature of blaster-in-charge. Risk Management Risk management in blasting work is increasingly becoming more challenging as work inevitably occurs in more populated areas. Not only is the work closer to people and structures, but concern about blasting effects on animals and utilities are also increasing. Sometimes it is possible to use mechanical methods to excavate rock, but these are slower, costly, and may still have vibration issues. Regardless of the scale of the blasting work, sometimes engineers and contractors underestimate the importance

of preparing blasting controls and public relations programs. The consequences of this are often severe. Public Perceptions The public’s perception of blasting has been forged from scenes in movies like Die Hard and Apocalypse Now. People do not want blasting occurring, or explosives stored, near their homes. Some recent tragedies with explosives have created genuine fear amongst the general public. In light of these liabilities and public relation issues, it is imperative to ensure that the blasting plan is as foolproof as possible, and the public informed about the work planned for the site and educated about blasting, its effects, and the controls put in place for everyone’s protection. For most projects, engineers develop blasting specifications designed to ensure that blasting is done safely and in conformance with project requirements. The quality and thoroughness of the specifications can greatly affect the outcome of the project. In most cases, risk is transferred by contract clauses, but in some serious cases, owners and others have become embroiled in legal action and have ended up with financial losses. Contractors and blasters usually understand the risk associated with the work. Occasional accidents and incidents, such as flyrock and premature detonation, are the result when blasters do not employ adequate blast design and control practices. Along with these wellknown risks, there are secondary risks such as vibration and air overpressure that result from blasting operations. Other issues that may have some impact may involve explosives storage and transportation. Managing Blasting Risk Engineers and planners can use the following approach to manage blasting risk. First, ensure that the project design is practical. Second, define prequalification requirements for the contractors who are to bid on the project. Third, develop specifications that clearly define performance and safety requirements for the work. Fourth, ensure that the work is overseen by capable personnel. Safe blasting requires four basic elements: 1. Proper design 2. Specification 3. Prequalification 4. Oversight Unless property is damaged by flyrock, most claims of damage caused by vibration and air overpressure are “perceived” damage claims, where observed damage may have been caused by other conditions such as settlement, poor construction, weathering, differential temperature, and humidity. Public Relations All blasting projects—large or small— occurring near any concerned neighbors, require some level of public relations work.

The level of this public relations (PR) work is a function of the blasting duration, timing, and the level of concern by the neighbors. Engineers and designers understand that it is unlikely that the planned blasting will cause any real injuries to the neighbors or damage their property. Because of this belief, it is sometime hard for them to become enthused about PR work. The neighbors, however, have a different impression of explosives, which is gained from popular TV, movies, and well-publicized accidents or disasters. So, ignoring the public is to invite potential delays and eventually costly legal action. Issues of Concern Generally the neighbors’ areas of concern fall into three categories: • Noise • Vibration damage • Danger Planned PR Steps It is usually a good idea to hire a competent public relations firm to handle the PR issues as they relate to the project. The activities include: • Managing perceptions • Dealing with issues and concerns • Listening and communicating about the risk • Delivering a consistent message Pre-Blast and After-Claim Property Condition Survey Pre-blast surveys are an extremely important tool for prevention of blasting complaints and subsequent damage claims. In many cases, pre-blast surveys lower the project liability risk, as well as serve as a venue to educate the neighboring public. A professionally performed survey also will influence the attitude of the adjoining property owners. Depending on the project, the area surveyed can be as close as 300 feet or half a mile and greater. Pre-blast reports should include written notes, photographs, or video, and in some cases, diagrams and measurements to classify existing conditions. Settlement surveys by independent firms may also be necessary. The surveyors should be given some PR training so that they may effectively start the public education process. Conclusion It is important to understand that risk management starts well before the blaster shows up for work on the project. Engineers and planners must ensure that the project design is practical. The contractors are prequalified to ensure that they are capable to successfully perform the work. The specifications must clearly define the performance and safety requirements of the work. And that the work is overseen by qualified and capable construction personnel at all levels. --by Peter G. Furst, Liberty Mutual Group

January - February 2014

Philippine Construction&Design

http://www.whatishowto.net

HUMAN RESOURCE MANAGEMEnT

Human resource planning in the construction industry; can it ever work?

he main reason behind the Construction Industry to be poorly regarded is generally thought to stem from the nature of the work and the terms on which the labor is recruited. The construction Industry in number of countries has also been characterized by the outsourcing of labor through sub contractors and other intermediaries that prohibits them from taking the advantage of employment schemes. Over and above, it has a long been portrayed as the image of discriminatory “Macho culture”. Moreover in number of developing nations there are no safety measures for laborers. For e.g. as cited by International Labor Organization, “In countries such as Cambodia, construction workers earn just US$1.50 a day and there are no laws to provide safety measures to workers,” thus, here the role of Human Resource Management Comes in. The managers in this Industry are often heard saying ‘our people are our most important asset’. However, human resource management (HRM) in the construction industry is severely under-developed as compared to the other industrial sectors. This we may owe to the fragmented structure of the construction sector. However, Industrial leaders have started realizing the importance of the ‘human resource’ in this competitive environment. As stated by Paul Teicholz (1994), there was decline in the construction industry.

Over the past 40 years the Industry increased at an average compound rate of -0.59%/ year. There had been a requirement of more field work hours per dollar of contract. The construction industry lagged behind other industries in development and in application of labor saving ideas and in finding several measures to substitute equipment for labor. The casual nature of the employment in the construction Industry makes planning a vague exercise. This is the Human resource information systems(HRIS) that presents number of measures to cope with these problems ensuring reliability, accuracy and accessibility of the human resource information. The construction industry is one of the largest sectors employing large number of people, providing work to significant proportion of the labor market and providing significant share of the world Gross Domestic Product (GDP). Any construction project involves skilled manual labor which gets support from management. It is a duty of the management to coordinate many professional, construction and supplier organizations whose involvement can change through the course of the project. The dynamism that involves in the process and the need to integrate a wide range of occupational cultures, gives the construction one of the most complex project related Industry in which there is a need to apply good

36 | Philippine Construction&Design January - February 2014

Construction Industry involves in its vicinity a diverse labor force, contributing towards the long and enduring “Process of Creation”. As cited by Gerald Finkel in his book, “The Economics of the Construction Industry”, The American construction industry employs over five million people and provides millions of additional support jobs in related fields. Yet, it is least lucrative profession for many as it involves peripatetic work schedule, along with it job insecurity associated with poor working conditions, health and safety records and employee welfare provisions within the industry. Human Resource Management (HRM) practices. According to Decenzo and Robbins, “Human Resource Planning is the process by which an organization ensures that it has the right number and right kind of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives”. The main aim of Human Resource Management is to ascertain the manpower needs of the organization both in right number and right kind. And it’s quite true with the Construction Industry. In the phases that Construction Industry passes through, it becomes adequately apparent to retain the professional employees in order to remain in competitive market. The employee turnover and wastage is an extremely important issue for construction companies, thus Human Resource Management (HRM) is an essence of the Construction Industry whereby it build up its image by creating an environment of trust between the employees and employers by looking into the every aspect of the employees needs. Several researches have found that money has never been considered as the major criteria to retain the labor force in the ensuing projects. It is a motivational force that accounts for high performance by executives. Recent studies conducted by Hay Consulting Group and Hornberger

whereas non-manual employment goes more according to the conditions of ‘soft’ HRM models. According to John Storey, Human Resource Management works according to the relations to the performance on line management responsibility, performance management, and values and beliefs of personnel managers. A dynamic manager balances two sets of forces: the firm’s external advantages on one hand and its internal strengths and weaknesses on the other and here the Importance of Human Resource Management cannot be ignored. Thus the human resource planning in the decision making process ensures that enough competent people with appropriate skills can be able to perform jobs where and when they will be needed. As such, “it enable us to define the organization’s need and assessing the available pool of people to determine the best fit.”’ The most serious implication that Environmental and Market forces can inflict on the Construction Industry is an on-going shortage of skilled workers including large number of retirements, creates necessity to provide Human Resource Management strategies .Then dependent on immigrant workers, the problems of reimbursing the wages and to benefits to attract labor force and to keep within the financial constraints of current market forces. There has been a very little and systematic research on the labor force, even fewer studies that address the problems being faced by the labor force. The behavioral science approach is adopted as measure for human resource development. Some emphasis on interpersonal behavior focusing on the individual as a socio-psychological being; others emphasize on group behavior subject to their attitudes, habits, pressures and

conflicts. The role involves the formulation of concepts and explanations about individual and group behavior, the empirical testing of these concepts in many different experimental and field settings, and the establishment of actual managerial policies and decisions. The process of manpower planning involves Determining the objectives of man power planning, preparation of current man power inventory, Demand forecasting, supply forecasting, Estimation of the man power requirements, Making an action plan for redeployment and redundancy, determining jobs requirements of the jobs to be filled, Employment plan, Training and development plan. Thus Human Resource Planning in Construction Industry will always work if implemented constructively. But there are certain disadvantages too in following Human Resource Planning like there is generally an identity crises and many managers as well as human resource specialists are not able to comprehend the rationale or purpose of human resource planning and unless the human resource planners undertakes the strong commitment and purpose they are most likely to face in the diverse structure of Construction Industry. In the long run, the human resource management should have the support of Top Management, otherwise it will be ineffective. To get the success human resource management should be slowly and expand gradually otherwise it is bound to fail in the Construction Industry. To best achieve the target it is very essential to bridge the gap between the present resources and future needs. The future action should be appropriately planned for keeping the labor force into a competitive spirit. Published: 2006-12-24 ; Author: Suneet Kaur

http://newsinfo.inquirer.net

Management Company’s Annual Construction Executive Retention Survey suggested that executives work hard and achieve more to have a feeling of fulfillment and attainment of Fruit. This sole motivation is provided by Human Resource Management Team. In the construction Industries companies relies in sub contracting in most of the construction phase. Therefore the construction industry includes large number of small and medium sized enterprises which carries on its operational activity for large main contractors. Hereby the Human Resource Management may not work as per the organizational set up. The wrong sub contractor if appointed can lead to numerous losses and his removal is the most agonizing thing to do. Athough there are advantages in adopting the subcontracting system and some strategic benefits from the use of labour subcontracting, but this system has adverse consequences for workers, companies, the industry and Human Resource functions. In case of the strategic involvement, the construction companies can take up the Strategic Human Resource Management policies to fulfill their long term perspectives. In the day to day operations, there is also a need for the organization to take great care to balance organizational and individual needs of the employees’ in-order to successfully fulfill the strategic needs. But the biggest issue is the trend amongst the Industrialists to bestow the responsibilities of all the operations to line managers instead of Strategic Human Resource Management (SHRM). Hereby, SHRM looses all the control and rely on the policies and practices of autonomous line managers. Hereby, line managers have the role to balance their staff needs to those of the organization. The main feature of Construction Industry is its inherent ability to adhere to the outside forces that exerts a powerful force on its everyday growth. Here also Human Resource Management strategy comes into play whereby it capitalizes the opportunities and mitigates the threats through their management policies. For e.g. a company captured an opportunity in a government sponsored infrastructure project coming in next five years. And it needs more skilled labor for heavy civil engineering work but has extra labor for general building construction. By utilizing the human Management Resource it can proactively retrain its managers and operatives with the requisite skills and exploit the new market opportunities. Human Resource Management develops strategy according to the labor market situation in which it is operating. The practice of the manual labor in the construction industry performs according to the ‘hard models’ of Human Resource Management

January - February 2014

Philippine Construction&Design

PRODUCTS & TECHNOLOGY

Volvo’s PL3005D

rotating pipelayer raises the bar in safety, productivity and versatility

The PL3005D from Volvo Construction Equipment is one of the industry’s safest and most productive pipelayers, thanks to its world-class load management system, 360° reach and excavator-conversion capability. Volvo’s innovative PL3005D pipelayer combines a 51 ton lifting capacity with a host of industry-leading safety and productivity-enhancing features – to produce one of the highest performing machines in the sector. The excavator-based PL3005D achieves this enviable position by fusing high-tech load monitoring and telematics systems with simple, intelligent design. Already available with a Volvo Tier 4i/Stage lllB- compliant engine, the PL3005 is now also available with a powerful Tier 3/Stage IIIA engine for lesser regulated markets.

Chinese contruction equipment ZL30F

Doosan articulated dumptruck

The Doosan ADT concept offers a larger load capacity in all weight categories. Additional load capacity, combined with superior power and traction, allow for improved productivity. The unique advantages of the Doosan ADTs permanent six-wheel drive, the free swinging rear tandem, the front mounted turning ring, the independent front wheel suspension and the sloping rear frame provide excellent driving stability with equal weight distribution and superior traction. The Doosan Articulated Dump Truck is designed to work under very tough conditions and travel over 55 km/h.

1. Adopting hydraulic-mechanical transmission; 2. Adopting central articulated frame and load-sensing hydraulic steering gear 3. Adopting four-wheel drive, lowpressure wide-base off-road tire and pendular rear axle that can make the front loader have good off-road performance,

trafficability and more traction; 4. Fully enclosed cab with adjustable and suspension seat can provide comfortable driving and wide view; 5. Using 16/70-24 ultra-wide tyres to increase the stability of the whole machine and the service life of tyre; 6. Brake system adopts vacuum booster, air over hydraulic caliper disc brake on 4 wheels

TV800 Tandem Vibrating Rollers

The Terex® range of pedestrian and tandem vibrating ride-on rollers have been designed to work within the demanding conditions of the rental market while providing smooth and powerful performance. Operating weight kg (lbs) 1,559 (3,437) Drum width mm (ft) 800 (2’ 6”) Static linear load kg/cm (lbs/in) 9.7 (54.3

Terex Fuchs MHL360 E Material Handler The MHL360 E material handling excavator has a Tier 4-Interim, six-cylinder, 254-horsepower turbocharged engine that offers more power than the D Series and improves fuel consumption. The MHL360 E material handler has a Tier 4-Interim, six-cylinder, 254-horsepower turbocharged engine that offers more power than the D Series and improves fuel consumption. High-performance hydraulic system features a separate slewing circuit, allowing machine swiveling to quickly start and stop. The Terex Fuchs energy recovery feature feeds braking energy back into the main hydraulic pump as the operator slows slewing of the upper structure to reduce load on the engine. The system delivers up to 20 percent faster load cycles over the D-Series, says the company. The engine uses EGR and automatic regeneration of the DPF. Both the engine and hydraulic system incorporate larger cooling systems, protected by vented panels, to increase airflow. The hydraulically height-adjustable cab offers a maximum eye-level elevation of up to 20.1 feet above ground level and independent forward movement up to 7.2 feet. 38 | Philippine Construction&Design January - February 2014

gRATINGS/PLATFORMS Features: Anti-Theft, Light weight/low, installation cost, Corrosion/Fire Resistant, Low noise an impact payload, Many colors available, Bearing an Load Standard: Serial No. Application Capacity 1 Walk platform 2kN/m2 equivalent uniformly distributed load. 2 Platform between stairs 3.5kN/m2 Equivalent uniformly distributed load 3 Overhaul Platform 4kN/m2 Equivalent uniformly distributed load 4 Staircase Tread Proposed by the clients For more information call D.B. International Sales & Services Inc. Tel. No.: (+632) 7234460 to 64 visit www.dbiphils.com email us: corporate@pbiphils.com

9100 system DTM Epoxy Mastic

EMPIRE SUN

Split Type Solar Water Heating System provides versatility in installation because the solar thermal collectors can be installed separately from the storage tank. It can be designed to suit the volume requirement of clients and can use pressurized or nonpressurized stainless steel tank. This is applicable for industrial, commercial and residential application. EMPIRE SUN Split Type Solar Water Heater is another quality product of Edward Marcs Philippines Inc.

Superior protection that requires no priming: • Maximum corrosion protection • Applicable floor to ceiling, • Less prep and application time • VOC compliant For more information Contact Holz Coatings Int’l. Inc. at (800) 553-8444 e-mail: custermerservice@rustoleum.com, visit www.rustoleum.com/industrial.

Rite Hite, Revolution Fan, HVLS (High Volume Low speed) Move the most air over the largest area at the lowest cost Benefits. Improve worker productivity, Year round comfort for employees & factory workers, Energy savings, Cools down warehouses to protect product during storage Please visit our Website: http:// www.ritehitefans.com, Exclusively sold by Basic Machinery & Acoustics Corporation at Suite 103, TWG, Makati Cinema Square, TWG, Chino Roces Ave. Tel. 811 1572 – 73, Fax. 811 1652 Email: info@basicmac.com

HALLOW CORE SLAB SYSTEM Is a floor system consisting of precast prestressed slabs with longitudinal cores. These cores optimize the use of structural concrete on the slab by reducing concrete volume and slab weight while still mainting adequate section properties. Hollow core slabs are the most widely used type of precast flooring due to its highly efficient structural design i.e. lightweight sections capable of longer spans; This system also reduces cost by eliminating the need of formworks for the slab. It’s smooth soffit or slab bottom eliminates the need for drop ceiling and is ready for painting. For more info contact Jackbilt Industries at 8462222.

lucky hdf door It is made out of HDF (High Density Fibreboard) skillfully handcrafted, engrave and machine-pressed to create an elegant and modern look design. Which will then be covered by PVC skin to create a smooth surface or groove effect just like wood doors • it is primarily used as Bedroom doors • easy and ready to install as the doors are already finish product. no need to apply paints • comes in 4 unique designs and 4 different colors: beige, white, wengue and mahogany • available sizes: .70 x 2.10 / .80 x 2.10 / .90 x 2.10. For more information call Tanay Industries corp. at 3738236

January - February 2014

Philippine Construction&Design

PRODUCTS & TECHNOLOGY

Bosch Demolition Hammer

Tweco Fabricator 211i Welder This 57.3-lb., fully integrated MIG-StickTIG inverter welding system offers the flexibility of using 115- or 208/230-VAC single-phase primary power, 50 or 60 Hz. • Delivers a welding range of 5 to 150 amps on 115 VAC and 5 to 210 amps on 230 VAC • Includes a Tweco MIG gun, Stick electrode holder and work clamp and a Victor regulator • Options include a TIG torch and foot control, spool gun for MIG aluminum, carts or a roll cage

photo: pcd_demolition hammer The DH1020VC 25-lb. SDS-max Demolition Hammer features a longer inline design for improved weight distribution during horizontal and vertical demo applications. An extended air cushion in the hammer mechanism and de-coupled main handle reduce vibrations in two locations inside the tool. • Produces 17 ft.-lbs. of impact energy • 12-position Vario-lock allows user to rotate and lock chisel into 12 different working positions • Variable speed dial reduces impact rate and impact energy • Constant Response electronics offer soft start, overload protection and maintain constant motor speed under varying loads • Service Minder light indicates need for carbon brushes to be changed • Tool-free bit change with automatic bit locking, dust protection and maximum impact energy transfer

JLG X550AJ Compact Crawler Boom Lift The X550AJ Compact Crawler Boom’s design includes a tracked undercarriage that climbs steps and a narrow chassis for access through gates, standard doorways, and public buildings. The X550AJ’s low, 4,630-lb. weight allows it to be set up on sensitive flooring and landscaping. • Working height: 55 ft. • Horizontal reach: 21 ft. • Overall width: 31 in. • Maximum platform capacity: 440 lbs.

40 | Philippine Construction&Design January - February 2014

Solar Battery Charger The Solar Panel battery chargers are combine a charge with patented high frequency pulse technology to maintain and condition vehicles or an equipment battery while in use or sitting idle. • Continually charge, maintain and even extend normal battery life cycles • Designed for 12- and 24-volt batteries • 2-, 5-, 6- and 25-watt versions • Pulse Technology cleans (desulfates) battery plates • Clear, polyurethane plastic coating mounted on laminated aluminum substrate make panels impervious to weather, aging and damage from bumps and knocks • Feature high efficiency, high quality crystalline silicone cell which can pack more power per square inch and have a smaller footprint than standard amorphous “thin film” solar cells

Atlas Copco Pit Viper 311 Blasthole Drill for Holes up to 125 Feet Pit Viper 311 wide-range rotary blasthole drill can drill holes to 125 feet in a narrow range of sizes 9 to 12.25 inches. Pit Viper 311 wide-range rotary blasthole drill can drill holes to 125 feet in a narrow range of sizes 9 to 12.25 inches, which fills the gap between the hole ranges of the Pit Viper 351 and the Pit Viper 270. Drive train options include both Tier 4 and Tier 2 engine choices. The tower has an interchangeable unit and accommodates large sheaves for either single-pass or multi-pass applications. Bits can be changed above the Pit Viper 311 rig’s deck even while singlepass drilling 65-foot-deep holes. The two-speed hydraulic rotary head delivers 12,880 lb.-ft. of rotation torque at 140 rpm and 7,000 at 240 rpm. A new cab has a fully adjustable chair with joystick and cab controls, and has been elevated above the deck to give the operator a better view.

Doosan Portable Power Generators Doosan portable light tower

Four redesigned mobile generators have Tier 4-Interim engines: G150, rated at 122 kW; G190, at 155 kW; G240, at 190 kW; and G325, at 261 kW. Analog control panel has large, brightly lit meters. Onboard engine diagnostic display panel includes controls and indicators required to operate the aftertreatment regeneration system. Dual frequency capability is now standard to enable the units to power 50Hz applications with the flip of a switch. Connection panels are more accessible, with more wiring connections available. Sound levels were reduced by as much as 5 dBA. Cooling system is now housed in a separate compartment and uses electric cooling fans and a state-of-theart radial-fan. Services intervals are 500 hours, and increased onboard fuel capacity provides longer run times.

Komatsu D61EXi-23 Dozer With the new D61i-23 crawler dozers, Komatsu, in collaboration with Topcon, has introduced a new automated blade-control system, Intelligent Machine Control, which represents a significant advance in this evolving technology. The innovative engineering behind Komatsu’s new system involves two major aspects: repackaging system components and making the machine intelligent enough to use the automated system from the first rough-cut pass to the final finishing pass. The result, says Komatsu, is a significant productivity increase for both experienced and less-experienced operators.

The redesigned LSC portable light tower from Doosan Portable Power features a new powertrain equipped with a Kubota D1005 engine. This 1,800-rpm water-cooled diesel engine meets Tier 4-Final emission regulations. The power rating of the LSC has been increased to 6 kW with the utilization of a new high-output alternator. This additional voltage allows operators to illuminate the unit’s four 1,000-watt metal halide floodlights and utilize the receptacle power function simultaneously. Fuel tank capacity has also been increased, extending the LSC’s runtime to 55 hours. The compact frame design maximizes truckload shipping, with the ability to accommodate 12 fully assembled units on a standard flatbed trailer for more costeffective transportation, the company says.

Caterpilar M318D MH Waste Handler Cat M318D MH Waste Handler is a wheeled excavator with purpose-built undercarriage and boom modifications, but retains the proven features of the conventional M318D MH counterpart. The heavy-duty swing-bearing tower is now centered on the undercarriage, placing it equidistant from axles and stabilizers for symmetry and optimum balance, whether working over the front or rear. In addition, the tower is larger to accommodate the hydraulic cab-riser swing bearing. The new boom has a shorter pin-to-pin length of 17.6 feet, compared with the conventional M318D MH’s 21-foot boom. Solid tires are available.

January - February 2014

Philippine Construction&Design

PRODUCTS & TECHNOLOGY

www.constructionequipment.com

Bomag BM-35 Series Milling Machine Models BM1000/35, BM1200/35, and BM1300/35 comprise the BM35 Series milling machines with new rear rotor mills. The BMS 15 interchangeable holder system uses a single bolt for holder retention and requires 75 lb.-ft. of tightening torque. A tempered steel material extends service life, the company says. The operator’s stand is isolated from vibration and has a swivel seat that allows all work to be done while seated.

42 | Philippine Construction&Design January - February 2014

Lean-burn gas generator set Cummins Power Generation launches new lean-burn gas generator set product line. This is the latest 2MWe model Cummins Power Generation has launched a new lean-burn gas generator set product line. The new 50Hz products, which extend the capabilities of the existing QSV91G generator range, offer exceptional transient performance and improved fuel capability, allowing them to run on low methane number fuels and produce lower emissions. The new line marks the debut of a MWe variant, alongside the improved 1,540 kWe and 1,750kWe models. Primary applications for the new models include prime, peaking and combined heat and power (CHP), as well as continuous operation in island mode and standby power. Their robust load handling attributes and capability of running on pipeline and low methane number fuels down to 43MN make them suitable for remote locations where grid power is unavailable, such as mining, oil or gas fields, or in regions of the world where grid power is either unreliable or inaccessible. In keeping with Cummins’ commitment to a reduced carbon footprint to help meet worldwide emissions standards, NOx emissions ratings as low as 250 mg/ Nm3 are available where required. The range retains its proven ability to run on biogases from landfill, digester and sewage sites. In another step-up in performance, the new product line is designed to meet the ISO 8528 G1 standard. For more information, visit www. cumminspowerdocs.com

PRICE MOVEMENT

http://www.casteels.biz

www.reliable-remodelers.com

Year-on-Year and Month-on-Month Growth Rates of Construction Materials Retail Price Index: October and September 2013 All Items October 2013 Year-on-Year 1.8 Month-on-Month 0.1

September 2013 Year-to-date 1.9 3.0 0.0

Year-on-Year The annual increase in the construction materials retail price index (CMRPI) in the National Capital Region (NCR) eased to 1.8 percent in October from 1.9 percent in September. It primarily resulted from the negative annual rate of 2.4 percent noted in miscellaneous construction materials index. In addition, a slower annual gain was posted in masonry materials index at 4.0 percent from 6.2 percent and tinsmithry materials index, 5.7 percent from 6.3 percent. On the other hand, the annual increment in carpentry materials index picked up 0.8 percent from 0.5 percent; electrical materials index, 2.5 percent from 1.7 percent and plumbing materials, 1.6 percent from 1.5 percent. The annual adjustment in painting materials and related compounds index remained at 0.1 percent.

Month-on-Month The CMRPI in NCR advanced 0.1 percent in October from zero growth in September. A higher monthly rate was observed in carpentry materials index at 0.4 percent in October from -0.6 percent in September; electrical materials and painting materials and related compounds indices, 0.5 percent from their corresponding last monthâ&#x20AC;&#x2122;s rates of 0.4 percent and -0.1 percent; and plumbing materials index, 0.2 percent growth from -0.2 percent. The tinsmithry materials index retained its September rate of 0.1 percent. The rest of the commodity groups however, posted negative rates during the month in review. Price increments were registered in selected construction items such as plywood, lawanit, common wire nails, electrical wires and wiring devices, paints and plumbing materials. On the other hand, downward price adjustments were seen in gravel, sand and steel bars.

January - February 2014

Philippine Construction&Designâ&#x20AC;&#x192;

PRICE MOVEMENT NATIONAL STATISTICS OFFICE NATIONALSTATISTICS STATISTICS OFFICE INDUSTRY AND TRADE DEPARTMENT INDUSTRY AND TRADE STATISTICS DEPARTMENT Manila Manila MATERIALS WHOLESALE INDEX (CMWPI) IN NATIONAL CAPITAL REGION (NCR) CONSTRUCTION CONSTRUCTION MATERIALS WHOLESALE PRICEPRICE INDEX (CMWPI) INTHE THE NATIONAL CAPITAL REGION (NCR) (2000 = 100) (2000 = 100) Line No.

OCT

SEP

SEP222.5

222.6 AUG

MMODITY GROUP OCT

ALL ITEMS

D GRAVEL

SAND AND GRAVEL

CONCRETE PRODUCTS

CEMENT

HARDWARE

222.5

203.1 203.1 222.6 222.3 205.2 192.0

205.0

AUG

JULY

MAY

2013

222.3 221.4 JULY 222.0 JUNE

APR

220.9 MAY

202.3 202.3 222.0 202.3 221.4 220.9 204.6

192.0

192.2

190.7

214.9

214.1

213.9

190.4

219.3 FEB

202.3

200.9 200.9 220.3200.9219.8 220.0

204.3

202.2

201.5

190.2

190.0

187.6

185.8

213.7

212.5

212.4

184.3

179.7

183.5

183.3

212.3

210.7

212.6

212.3

202.2179.8201.5 180.3 179.8

201.5 179.8

LUMBER

192.0

231.3 192.2 231.3 192.0

230.0 190.7 230.0

230.0 190.2 230.0 190.4

229.9 227.6 190.0227.6187.6

G.I. SHEET

183.5

180.6

178.5

REINFORCING STEEL

251.3

251.0

250.0

STRUCTURAL STEEL

10 TILEWORKS

CING STEEL

RAL STEEL 14

181.2 281.7 180.4 281.7

231.3

182.1 230.0 180.3 231.3

183.9

183.7

252.6

251.8

252.6

179.7

201.9

199.1

214.1

213.9

251.3

213.7

212.5

199.9

201.6179.7199.5 178.1 179.7

201.2 179.5

200.8

227.5 185.8

223.8 227.3 184.3227.5179.7

226.4 183.5

183.3

178.5

176.8

178.3

177.9

177.3

250.0

245.6

249.7

249.5

212.4

180.4 281.8 180.3 281.7

180.3279.2179.8 281.7 279.1

179.8 279.1

179.8 230.0 179.8

179.8 230.0 179.8 230.0

179.1 177.4 229.9178.1227.6

176.3 227.6

179.7

201.9

200.8

183.7 251.3

197.8

197.6

179.7

179.4

183.5

251.3

200.7

197.5

200.7

197.3

179.4

179.3

200.7

198.7

198.3

212.3

179.8278.4178.1 276.0 278.3

179.7 278.0

179.7

172.8 174.8 227.5175.8223.8

174.0 227.5

227.3

179.2

198.3

197.2

198.5

198.0

251.0

250.0

212.2

212.6

179.2

178.5

196.2

210.7

178.5

196.2

212.3

197.5

179.2

180.6

197.1

200.9

182.8

200.4

180.4 281.7 281.7

179.7

199.1

213.9

200.9

218.5

200.8

248.1

179.2

178.5

176.8

178.3

177.9

250.0

245.6

249.7

249.5

196.2

193.2

195.8

195.0

197.6

194.4

PLUMBING FIXTURES & 281.7 ACCESSORIES / WATERWORKS

281.7 161.0 281.7 161.0

281.7 160.3 160.3

281.8 159.8 281.7 159.3

281.7159.0279.2 159.3 157.8

279.1 157.8

279.1156.3276.0 155.6 156.1

278.4 155.7

278.3

182.1

180.3 204.2 179.8 204.2

179.8 204.0 203.9

179.8 203.9 179.8 203.7

179.1203.3178.1 203.7 203.2

177.4 203.0

176.3203.1172.8 202.0 203.0

175.8 203.0

174.8

179.7

176.7 179.7 176.7 179.7

175.1 179.7 175.1

174.3 179.4 174.3 179.7

173.5 172.8 179.4172.8179.3

172.8 179.3

172.3 173.1 179.2173.1178.5

173.1 179.2

179.2

329.4

329.8

336.3

337.8

15 PAINTING WORKS

PVC PIPES D GLASS16 PRODUCTS

17 FUELS AND LUBRICANTS

AMBS, AND STEEL 18 ASPHALT T

251.3

181.2

DOORS, JAMBS, AND STEEL CASEMENT

13 ELECTRICAL WORKS

251.8

214.9

11 GLASS AND GLASS PRODUCTS

252.6

215.0

183.5

200.9

199.1 218.8

200.8

204.6 180.4 204.3 180.3

183.7

202.3

199.9 219.3200.4217.6

197.5

201.2

204.6 180.4 180.4 183.7

202.3

2012 NOV

218.9 DEC

199.5

205.0 181.2 204.6 181.2

213.9

OCT

218.5 AVE

217.6 JAN218.8

201.6

205.2

183.9

202.3

AVE

JAN

E PRODUCTS 5 PLYWOOD

183.9

202.3

204.6

FEB

220.3 220.0 APR219.8MAR

202.8 204.6

MAR

203.1

215.0

202.8

JUNE

203.1

2012 DEC NOV

2013

COMMODITY GROUP

201.9

19 MACHINERY AND EQUIPMENT WORKS RENTAL 199.1

331.6

333.5

201.9 200.8 464.0 464.0

335.3

200.8

333.8

327.8

200.7

324.5

200.7

333.8

337.0

200.7464.0198.7 198.3 464.0 464.0

464.0 464.0 of the 464.0 464.0 464.0 Republic Philippines

NATIONAL STATISTICS OFFICE 114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6 114.6 199.1 INDUSTRY 197.8 197.6 197.5 197.3DEPARTMENT 197.1 196.2 AND TRADE STATISTICS Republic of the Philippines NATIONAL STATISTICS Manila OFFICE

114.6

329.8

114.6

198.3464.0197.2 446.7

448.1 114.6

198.5 446.7 114.6

198.0

196.2

193.2

195.8

195.0

157.8

155.6

156.3

156.1

Materials Price203.3 Index in the National WORKS Table 3 Month-on-Month 204.2Percent 204.2Change 203.9on Construction 204.0 203.9 203.7 Retail 203.7 203.2 203.0 Capital 202.0 Region 203.1 Table 3 Month-on-Month Percent Change on Construction Materials Retail Price Index in the National Capital Region (2000=100) (2000=100) S 176.7 176.7 175.1 175.1 174.3 174.3 173.5 172.8 172.8 172.8 172.3 173.1

203.0

G FIXTURES & RIES / WATERWORKS

161.0

INDUSTRY AND TRADE STATISTICS DEPARTMENT 160.3 159.8 159.3 159.3 Manila

160.3

D LUBRICANTS 331.6 COMMODITYCOMMODITY GROUP GROUP

333.5

335.3

464.0

RY AND

ITEMS

ALL ITEMS EQUIPMENT

114.6

333.8

OCT SEP SEP OCT

464.0

0.1

0.0

114.60.1 114.6 0.0

327.8

AUG AUG

324.5

20132013

329.4

159.0

333.8

JUL APR JUL JUNJUNMAY MAY

464.0

-0.1

0.2

0.1

114.6 -0.1

114.6 0.2

464.0 0.1

MAR APR

464.0

0.3

114.6 0.1114.60.3 0.1

196.2

328.2

157.8

337.0

FEB MAR

464.0

329.8

2012

336.3

JAN NOV FEB DEC JAN

464.0

448.1

-0.3

0.7

0.1

114.6 0.3 114.6 -0.3

0.2

114.6 0.7

328.2

OCT DEC

464.0 0.3

114.6 0.1

173.1 2012

329.8

NOV

446.7

114.6 0.2

A. CARPENTRY MATERIALS

0.4

-0.6

0.4

0.3

0.2

-0.1

0.2

-0.3

0.1

0.0

0.1

ARPENTRY B. MATERIALS ELECTRICAL MATERIALS

0.4 0.5

-0.6 0.4

0.1 -0.1

0.00.4

0.2

0.3 -0.1

0.20.5

-0.1 0.1

0.2 -0.3

0.7-0.3

0.3

0.10.2

0.0 -0.2

0.1

MASONRY MATERIALS LECTRICAL C. MATERIALS

0.5-1.2

-0.3 0.4

0.1 -0.1

0.30.0

-0.3

0.2 1.7

-0.10.8

-0.8 0.5

0.1 0.1

3.8-0.3 -1.1

0.71.0

0.9 0.3

0.2

0.5

-0.1

0.3

0.4

-0.7

-0.4

0.6

-0.2

-0.8

0.2

0.3

0.4

-0.2

-0.1

0.2

-0.1

0.2

-0.1

-0.4

0.1

0.2

-0.4

0.7

3.6

0.0

0.3

0.7 0.2

D. PAINTING MATERIALS & RELATED COMPOUNDS

MASONRY MATERIALS

E. PLUMBING MATERIALS

-1.2

0.2

AINTING MATERIALS & RELATED COMPOUNDS

0.5

LUMBING MATERIALS G. MISCELLANEOUS CONSTRUCTION MATERIALS

0.2-2.1

INSMITHRY MATERIALS

F. TINSMITHRY MATERIALS

0.1

-0.3 -0.1

0.1

0.3

0.4

-0.2 1.0

-0.1 -1.0

0.40.2

0.1

0.2

Sources of Basic Data: NSO and other reporting establishments -2.1 MISCELLANEOUS CONSTRUCTION MATERIALS Processed by NSO

1.0

-1.0

rces of Basic Data: NSO and other reporting establishments cessed by NSO

44 | Philippine Construction&Design January - February 2014

-0.3 -0.7

-0.1 -0.5

1.7 -0.4

0.7

0.2 0.5

-0.1 -0.1

-0.4

0.7

0.4

-0.2

0.8

0.6

-0.8

-0.2

0.1

-0.8

0.0 1.5

3.8 0.2

0.2 0.2

-0.4-0.5

-1.1

1.0

0.0

0.3

1.5 1.7

0.2

0.1

0.6

-0.1 -0.3

0.2 -0.5

0.1-0.1

-0.5

0.7

3.6

0.0

0.3

0.7

0.2

0.5

-0.1

-0.3

-0.5

0.1

0.2

-0.5

January - February 2014

Philippine Construction&Designâ&#x20AC;&#x192;

46 | Philippine Construction&Designâ&#x20AC;&#x192; January - February 2014