Philippine Construction & Design March-April 2014 by saibermedia

PHILIPPINE

THE MAGAZINE FOR CONSTRUCTION PROFESSIONALS VOL. 1. No. 11 MARCH-APRIL 2014

Construction industry seen to continue growing this year

27 Annapolis Condominium

The rise of Pyramids to High Rise Buildings with its challenges and opportunities

Occidental Glass and Aluminum execs think big for bigger market A Budding Waterproofing and Painting Company in the Philippines March - April 2014

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

2 | Philippine Construction&Designâ&#x20AC;&#x192; March - April 2014

contents Issue No. 11 -2014

CONSTRUCTION NEWS

CONSTRUCTION MANAGEMENT

View Point

Damn the torpedoes, full speed ahead .........................................

Calendar of Events March-April 2014 .....................................................................................

02 03

News Roundup

Construction industry seen to continue growing this year ...........................................................................................................

News Features

AG&P delivers Philippine built Australian gas refinery ....... 12

Association, Organizations and Companies PRC Chair Manzala discusses implications of ASEAN 2015 integration at the FEU - CDAP capability enhancement learning session ........................................................................................... 18

Sales & Marketing management

The critical importance of project cost control management ................................................................................................

Risk Management

Understanding Construction Insurance ...................................... 44

Products & Technology PP-R Pipes and Fittings ......................................................................

Price Movement

Year-on-Year and Month-on-Month Growth Rates of Construction Materials Retail Price Index: January 2014 and December 2013 ...............................................

International Report

Projects in Ho Chi Minh City launch apartment sales .......... 20

FEATURES Industry Report

The rise of Pyramids to High Rise Buildings with its challenges and opportunities ........................................................................................ 28

Cover Story

27 Annapolis Condominium ................................................................. 32

4 12 28 38

Supplier’s Profile

Occidental Glass and Aluminum execs think big for bigger market ............................................................................................... 38 HOLZ Coatings International: A Budding Waterproofing and Painting Company in the Philippines ............................................. 40

40 32

The Philippine Construction & Design is an e-magazine published monthly by Saiber Media Inc., with business address at 121 Splendor Hills Aznar Road, Pardo Cebu City Official website is www.philippineconstructionanddesign.com., E-mail address: saibermediaincorporated@ yahoo.com.ph ; saibermediainc@yahoo.com.ph Publisher is William L. Ogan. For your editorial, online subscription and advertising placement, please contact Tel. No.+(63 02) 463-4352 +(63 02) 463-4347 Please send your comments and suggestion’s to saibercraft@yahoo.com. Copyright ©2012 All rights reserved. March - April 2014

Philippine Construction&Design

view point

Damn the torpedoes, full speed ahead By Peter Wallace

he Philippines is 15-25 years behind the major countries in Asia when it comes to infrastructure. One of the world’s worst airports is a good start. Lack of political will (in this administration and also the previous ones) is one of the top reasons the Philippines lags behind other Asian economies. Opposition by some losers and well-intentioned but misguided critics is not far behind. The one I’d like to focus on today is legal intervention. It seems that almost anything the government proposes to do someone objects to—and takes to a court that obligingly accepts the case, thereby putting the project on hold. The two most recent ones are the P17.5billion Cebu airport terminal and the P1.72billion Automated Fare Collection System (AFCS). The winning bidders were chosen in an open competitive bidding process where every opportunity was given for raising questions and objections. By not doing so, the bidders accepted who their competitors were. But both projects were delayed because a losing bidder wouldn’t accept its loss. Maybe it had a good case, but why didn’t it raise the point during the bidding? And that’s what I’d like to suggest: that Congress pass a law allowing questioning of other bidders’ eligibility/capability only before a winner is chosen. Once a bidder has won the project, no complaint can be entertained. If Megawide Construction Corp. and its partner GMR Infrastructure Ltd. do have a conflict-of-interest issue, then this should have been raised and made known during the bidding. The same holds true for the AFCS project. Awarding was delayed from December to Jan. 30, all because a disqualified bidder appealed to be reconsidered. The rule in a bidding process is that the bidder must pass technical evaluation before its financial bid is opened. E-Trans Solution Joint Venture failed to pass the technical evaluation. If it had failed once, what would a second look do when all the documents are the same,

anyway? We have to stop stopping progress. It’s the same with non government organizations. Too often well-intentioned people, but without the expertise to fully understand the issue, or so obsessed with their single issue, can’t apply a reasonable balance. Take the proposed 600-megawatt coal-fired power plant in Subic. Several environmentalist groups filed for a Writ of Kalikasan at the Supreme Court to legally suspend RP Energy’s land lease and coal financing agreement. And progress was put on hold. We ARE going to have blackouts, our reserves are just too thin, and power plants are getting too old. They will, frighteningly soon, need to be replaced. Coal is a dirty fuel, and that is not acceptable, but with today’s technology the emissions from a modern coal-fired power plant can be within international limits. Yes, there are other, cleaner fuels, but they aren’t commercially viable. The cost to use them would be prohibitive and everyone is already complaining of cost today. So what do you want: cleanly produced electricity at high cost, or acceptably cleanly produced electricity at lower cost, or blackouts from time to time? We need a balanced approach. We don’t live in a perfect world and we can’t have perfect solutions. We have to accept the best compromise. As then president Fidel Ramos rightly said during our last power crisis (remember that? no power 8-12 hours a day), “No power is more expensive.” Well, we’re going to have no power again. We’d better stop opposing construction of new plants. We have to stop stopping national progress for personal gain, or opposition based on but one point, no matter how valid. We—the courts, and sometimes the administration—have to stop accepting delay that is not in the best national interest. Modern successes were achieved by countries where the leadership decided what society needed best, and went ahead and did it, ignoring vested-interest opposition.

2 | Philippine Construction&Design March - April 2014

“Damn the torpedoes, full speed ahead”— that’s how you win wars, that’s how a nation progresses. If President Aquino wants to leave a legacy, it should be this: In the last two years of my presidency I got things done by deciding what was best for a nation and not accepting opposition to it. The Chief Justice must play her part, too. She must instruct the lower courts to be more discretionary on what they accept. And for the Supreme Court to be equally discerning. If laws are needed to act in this way, then request such laws from Congress. The one I’ve suggested at the beginning of this piece can be the first. Another reason cited why the Philippines is behind its neighbors in terms of infrastructure is the low level of spending. The Philippine government allots a measly 2-3 percent of its gross domestic product for the construction of infrastructure projects. Major Asian economies spend an average of 5 percent. Infrastructure-related expenditures are projected to rise to 3.1 percent of GDP this year, or an estimated P400 billion. The amount will rise further to P600 billion (4.1 percent of GDP) in 2015 and P800 billion (5 percent of GDP) in 2016. But for the country to be at par with its neighbors, the recommended spending level on infrastructure (5 percent of GDP) must be implemented NOW, not in 2016. As I’ve said over and over again, action, tough action, has to happen. The time for plans, for discussion, for caution is long gone. According to the Social Weather Stations some 11.8 million families need to be brought out of poverty, and 12.1 million Filipinos need jobs. It won’t happen with plans (they exist already, anyway); it will happen with determined “full speed ahead” action. “Damn the torpedoes, full speed ahead” was said by US Adm. David Farragut during the American Civil War, which they won.

calendar of EVENTS

Local Events BIM Seminar for Academe March 18, 2014 - (8:00am – 1:00pm) Location: Manila Venue: Luxent Hotel (Timog Ave., Quezon City) Audience: Dean, Department Head, and Faculty (Civil Engineering Department) To register, contact us at (02) 926 2216 or send email to vtsmarketing@vtsphil.com Electronica China and Productronica China March , 18-20 2014 Venue: Shanghai New International Expo Center Location: Shanghai, China For more information call (632) 845-1324 / 759-6680 or send email to cahea@eccp.com 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. Tekla User Meeting 2014 March 28, 2014 (8:00am – 1:00pm) Location: Manila Venue : Crowne Plaza Manila Galleria Audience : Existing Tekla Users To register, contact us at (02) 926 2216 or send email to vtsmarketing@vtsphil.com CXO Meeting (Cast-in-Place) March 28, 2014 (1:00pm – 5:00pm) Venue: Crowne Plaza Manila Galleria Audience: General Contractors doing cast-in-place/reinforced concrete Concrete Contractors To register, contact us at (02) 926 2216 or send email to vtsmarketing@vtsphil.com

send email to vtsmarketing@vtsphil.com Mixed-Use Development 2014 May 7-8, 2014 Organiser: Trueventus Sdn Bhd Venue: Ascott Makati, Manila Contact person: Sandy Beh Call us on: -603-2781 1500 (ext 510) Email: sandyb@trueventus.com Website: http://www.trueventsglobalinformation.com/ CONTRAMKTG/MXD_PCD_PH.pdf Mixed-Use Development conference allows you an interactive and learning platform to ask industry leaders about their winning approaches and methods; and how they overcame the many reoccurring issues within an MXD context. Covering all types of developments, from horizontal and vertical, we will also be looking into all aspects of a mixed-use, covering not only retail and residential but office, commercial, hospitality and industrial as well. 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. 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.

International Events

BIM Seminar for Academe April 8, 2014 (1:00am – 5:00pm) Location: Cebu Venue : TBA (visit www.vtsphil.com for update) Audience : Dean, Department Head, and Faculty (Civil Engineering Department) To register, contact us at (02) 926 2216 or send email to vtsmarketing@vtsphil.com

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.

Tekla User Meeting 2014 April 8, 2014 (8:00am – 1:00pm) Location: Cebu Venue : TBA (visit www.vtsphil.com for update) Audience: Tekla Users, Steel Detailers & Fabricators, General Contractors, Precast Manufacturers & Detailers, Rebar Fabricator & Detailers, Structural Engineers, and Concrete Contractors To register, contact us at (02) 926 2216 or

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

Electronica China and Productronica China March 18-20, 2014 Venue: Shanghai New International Expo Center Location: Shanghai, China For more information call (632) 845-1324 | 759-6680 or send email to cahea@eccp.com IE Expo May 20-22, 2014 Venue: Shanghai New International Expo Center Location: China For more information call (632) 845-1324 | 759-6680 or send email to cahea@eccp.com Electrical Energy storage 4 – 6 June 2014 Venue: Messe Munchen Location: Munich, Germany For more information call (632) 845-1324 | 759-6680 or send email to cahea@eccp.com Electronica and Productronica India September 23-25, 2014 Venue: Bangalore International Exhibition Center Location: Bengaluru, India. For more information call (632) 845-1324 | 759-6680 or send email to cahea@eccp.com 4th China International Trenchless Exhibition TTUS 2014 March 1 - 3, 2014 Venue: China Import & Export Fair Pazhou Complex Location: Guangzhou, Guangdong, China China International Trenchless Technology & Tunnel and Underground Space Equipment Exhibition is a special and unique trenchless, tunnel. Metal CONEXPO-CON/AGG 2014 March 4 -8, 2014 Venue: Las Vegas, Nevada, USA Only once every three years, the construction world converges at CONEXPO-CON/AGG in Las Vegas. Being held on March 4-8, 2014 this show will represent an immense unveiling of all the newest equipment, technology and product breakthrough in construction. From earthshaking big iron to groundbreaking innovations, it’s all assembled in one place to help you work smarter. You can expect 2,400 exhibitors showcasing new products and technologies from every major construction industry, over 130,000 attendees, and comprehensive education programs. CONEXPO-CON/AGG 2014 – If it’s new, it’s here! Stell saudi Arabia 2014 Apr 07-10, 2014 Venue: Riyadh International Convention & Exhibition Center - RICEC Location: Riyadh, Saudi Arabia The 7th International Exhibition for Steel, Steel Fabrication and Metallurgy Industry

March - April 2014

Philippine Construction&Design

NEWS ROUND-UP

www.philconstruct.com

Construction industry seen to continue growing this year

PCA executive director Manolito Madrasto The country’s construction industry is seen to grow by more than a 20% this year from a year ago as the private and public sectors undertake projects to support the economy according to the Philippine Constructors Association, Inc. (PCA). “We expect the (value of the) construction industry to reach P380 billion this year. Last year, the value was about P300 to P310 billion,” said PCA executive director Manolito Madrasto in a press conference. Most of the growth, he said, would be accounted for by the private sector which

already accounts for 55 percent of the industry. “For a growing economy, the split should be 60-40, in favor of the public sector. But it is the reverse here, that is why we are pushing government for more pump-priming of the economy,” he said. While the Department of Public Works and Highways (DPWH) is already spending for infrastructure projects this year, he said “what is missing is (implementation) in the area of transportation.” PCA president Augusto Manalo added the DPWH is spending a little over P200 billion for infrastructure projects this year. For next year, he said, the industry is expected to post double-digit growth. “There are so many projects lined up by the private and public sector,” he said. He estimates the DPWH is spending between P260 to P280 billion for infrastructure projects next year. Among the public-private partnership projects which are seen to start next year and support the growth of the industry are the Cavite-Laguna Expressway and the Ninoy Aquino International Airport Expressway Phase 2. Madrasto said that with the government seen to accelerate spending in the coming years, the total construction industry is

expected to rise further to P650 billion by 2016, with P400 billion to be accounted for by the public sector alone. To prepare for the Association of Southeast Asian Nations (ASEAN) economic integration, he said the PCA is already training people and making plans to do business in other countries in the region such as Myanmar and Cambodia. In line with preparations for regional economic integration, the PCA making changes to the implementing rules and regulations of Republic Act 4566 or the Contractor’s License Law through the creation of a new license category known as AAAA, which would allow firms with 100 percent foreign equity to participate in big construction projects here, provided that the foreign contractor will invest at least P1 billion. Madrasto said the proposal has been approved by the Construction Industry Authority of the Philippines (CIAP) but still needs to be taken up by the economic cluster. The CIAP is tasked to promote, accelerate and regulate the growth and development of the construction industry. “We expect the changes to be approved this year,” Madrasto said. Louella D. Desiderio, The Philippine Star

Cadds Group and Tekla BIMsight – realtime, efficient collaboration between offices and disciplines Tekla BIMsight gathers construction documentation in one place Cadds Group, a multidiscipline drafting service and design Consultancy Company from Australia utilizes Tekla BIMsight extensively. Their Tekla BIMsight projects contain logged communication, PDFs, project plans, technical queries and all project information in one place that is easily accessed by all project stakeholders. This allows for transparent project progression and eliminates the fractured nature that is typical of traditional construction projects. At the end of each project they have a complete, interactive model that tells a story and is added to organizational process assets so improvements can be continually incorporated into future projects.

The National Economic & Development Authority in the Philippines has approved seven infrastructure projects with a combined value of PhP184.2bn (£2.6bn).Six of the seven will be implemented through public-private partnerships (PPP). Socioeconomic planning secretary Arsenio Balisacan said: “The rail projects will connect the train systems. The work includes three rail projects, an airport project, a transport terminal, a health facility and allow passengers to transfer from one train to another. This will also help reduce passengers’ travel time. The Mactan-Cebu International project will enhance the operational efficiency of the airport and will also provide convenience for airport passengers.” He added that the transport terminal project will make various modes of transportation accessible to people coming from nearby provinces to commute to and from Metro Socioeconomic planning Manila. The water supply project will address a supply gap and secretary Arsenio environmental problems including subsidence and salt water Balisacan intrusion. The largest project is the LRT Line 1 south extension (total cost PhP64.9bn) – an 11.7km line extension with 10 stations. The project will be implemented through a PPP. The private sector will undertake civil works and electro-mechanical works while the government will provide the rolling stock and depot with development assistance from the Japan International Cooperation Agency. The second-largest scheme is the PhP62.7bn MRT 7 project, which involves the construction of a 22.8km rail system with 14 stations. The project will be implemented under an unsolicited ‘build-gradually transfer-operate and maintain’ arrangement between the Department of Transportation & Communication (DOTC) and Universal LRT Corporation Limited.

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www.minda.gov.ph

Transport infrastructure construction bonanza

March - April 2014

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

NEWS ROUND-UP

NSO project construction projects in the Philippines to rise

The value of construction projects with approved building permits rose in the second quarter from a year ago on the back of substantial demand for residential and office spaces. This was according to the National Statistics Office, which reported that construction projects with building permits were valued at P66.4 billion in the second quarter, up by nearly 18 percent from P60.9 billion reported in the same period last year. The total value was spread over 29,424 projects, lower by about 4 percent than the 30,614 approved building projects reported for the same period last year. Nearly half, or P32.6 billion, of the total value of construction projects was accounted for by the residential sector. Nonresidential accounted for P28.5 billion and the balance covered repairs. The total floor area for residential projects stood at 3.3

million square meters, while that for non-residential settled at 2.1 million square meters. The total floor area for residential projects was up from 3.1 million square meters a year ago, while the total floor area for office and other non-residential projects was lower than last year’s 2.8 million square meters. The double-digit growth in the value of construction projects was attributed to still significant demand for residential and office spaces. Economists said the demand for residential spaces in the Philippines was partly boosted by remittances from overseas Filipino workers, while demand for office spaces was driven in part by demand from business process outsourcing (BPO) firms. Remittances continue to drive household expenditures in the Philippines, with global demand for overseas Filipino workers remaining strong. The Philippines has also become a key destination for BPO investments due to its English-speaking workforce and availability of information-technology infrastructure. Meantime, the 4-percent drop in the number of projects was attributed to the rising cost of construction materials. The NSO reported that retail prices of selected construction materials rose year on year by 3.9 percent in April, 4 percent in May, and 2.1 percent in June, for an average increase of 3.3 percent for the second quarter. The average increase in prices of construction materials was faster than the average inflation rate for the period of 2.7 percent. Michelle V. Remo, Philippine Daily Inquirer

State-run Philippine National Construction Corp. and Metro Pacific Tollways Development Corp. will sign a joint venture agreement today over the construction of a road that will connect the North Luzon Expressway and South Luzon Expressway. Metro Pacific Investments Corp., parent of Metro Pacific Tollways, proposed to construct the 13-kilometer connector road for P22.95 billion. Under the government’s proposal, the Segment 10 phase of the project will be redefined to cover the NLEX-SLEX Connector Road. MPIC is the majority owner of Manila North Tollways Corp., which operates NLEX. Other MNTC shareholders are Egis Projects S.A. of France, Leighton Asia Ltd. of Australia and PNCC, which holds the franchise to run the expressway. The Transportation, Public Works, Finance and Justice departments have

agreed to extend the concession agreement between PNCC and MPIC to the connector road project through the creation of a new joint venture to speed up constuction. MPIC, however, has proposed to merely incorporate the connector road project to the existing contract between PNCC and MPIC to make the toll lower. The supplemental toll operations agreement covers the construction of Segment 10, a 5.65-kilometer road that starts where Segment 9 ends on MacArthur Highway and stretches all the way to Circumferential Road 3. Segment 9 is a 2.4-kilometer portion linking NLEX to MacArthur Highway. Without the amendment to the supplemental toll operations agreement, government rules require that a Swiss challenge must be undertaken since the NLEX-SLEX connector road project was an unsolicited proposal. Lailany P. Gomez, Manila Standard Today

6 | Philippine Construction&Design March - April 2014

www.ppp.gov.ph

PNCC and Metro Pacific signs agreement

PNoy, MMDA launch IT-based, advanced traffic management network The Metropolitan Manila Development Authority (MMDA) on Wednesday inaugurated its newest state-of-the-art Traffic Signalization System (TSS), a highly advanced traffic management network that is expected to greatly improve the traffic situation and pedestrian and commuter safety in Metro Manila. President Benigno S. Aquino III led the inauguration ceremonies for the traffic signalization project, which is housed in a new and modern three-storey Command and Control Center (Metrobase) building located at the MMDA headquarters at the corner of EDSA and Orense Street in Makati City. MMDA Chairman Francis Tolentino said Phase 1 of the midterm TSS is capable of initially managing 85 priority intersections and 25 traffic control/video surveillance locations around Metro Manila under a new management software system. “In the future, this new system will be able to manage up to 500 intersections. TSS aims to upgrade, automate, and optimize the management and traffic engineering installations around Metro Manila,” Tolentino said. The project is a partnership of MMDA and the Spain-based technology firm Indra in a consortium with Meralco Industrial Engineering Services Corporation (MIESCOR). Among its benefits, Tolentino said, the new intelligent real-time traffic control systems under the Hermes system would help improve the safety of pedestrians, commuters, and vehicles through wellcoordinated signal routes resulting in faster travel time and reduction of traffic congestion. “It can analyze and consolidate information for faster mobility, improved road safety, optimized vehicle flow and pedestrian movement, and reduced travel times,” Tolentino said. With this landmark project, Tolentino pointed out that MMDA will now have more tools to effectively advance the management

President Benigno S. Aquino III watches the Video Launching of the New MMDA Traffic Signalization System and Command and Control Center at the new MMDA Command and Control Center in Makati City. Briefing him is MMDA chairman Francis Tolentino. (Photo by Gil NArtea/ Malacañang Photo Bureau)

of traffic flow in the metropolis through a state-of-the-art command center and modern traffic signal system. The new upgraded Information Technology (IT)-based traffic signalization system is set towards elevating mobility management in the future, through comprehensive and integrated approach that improves not just vehicle movement, but also the overall network movement of people, goods and services. Phase 1 of the project includes the installation of 25 new fiber optic, high definition Pan-Tilt-Zoom (PTZ) Traffic Control/Video surveillance cameras and 36 45-inch video screens to monitor activities, where around 150 CCTV and IP cameras are currently installed all over Metro Manila. By: Clara Masinag, InterAksyon.com

http://www.philstar.com

AIG Philippines eyes opportunities in construction sector

AIG Philippines president and CEO Mark Lwin

International insurance company AIG said it is ready to capitalize on the construction boom in the Philippines.The construction sector is expected to continue its strong growth this year, especially with the reconstruction and rehabilitation efforts in areas badly affected by super typhoon “Yolanda.” “The ongoing expansion of the Philippines economy and growth in large-scale construction projects presents AIG with opportunities to expand its construction insurance portfolio in the Philippines, and offers the Philippines construction industry an opportunity to take advantage of AIG’s recently enhanced resources and capabilities in its construction and constructionindustry product offerings,” according to

Daniel Abramson, AIG’s global head of construction. AIG recently held a forum “Managing Risks in Cross-Border Construction” in Makati City. The forum highlighted how a well-designed insurance solution can address complex risks and challenges in 21st century construction projects. AIG Philippines president and CEO Mark Lwin said, “We have tremendous depth of experience in construction, and other commercial endeavors, which help our clients manage, reduce, and avoid risks. AIG provides infrastructure solutions backed by an experienced underwriting team and has 38 engineers focused on Asia Pacific and the Philippines. ABS/ CBN

March - April 2014

Philippine Construction&Design

NEWS ROUND-UP

Manila relents, OKs ‘Torre’ construction The Manila City Council yesterday approved the construction of the questioned condominium on Taft Avenue after ordering its temporary suspension last year. The suspension order had been issued by the same council which ruled that the building violated zonal laws. The council had also cited the protests from groups that claimed its construction would affect the visual prominence of the shrine of National Hero Dr. Jose P. Rizal at the Rizal Park. Councilor Joel Chua, head of the oversight committee, said yesterday the council had decided to “reconsider their decision” on the construction of the Torre de Manila residences after its developer, DMCI, Inc., appealed to Mayor Joseph Estrada to lift the suspension order. “We considered their claims. Gusto

www.stream.wsj.com

RP increased construction after Typhoon Yolanda

kasi ni mayor, development. Pag pumutok yan, wala nang mag-iinvest sa Manila. Following that statement from the mayor, kung may problema, pagbawalan. We need to encourage investors,” Chua said. In their letter to the mayor dated December 18, 2013, DMCI, Inc.’s president Alfredo R. Austria emphasized that they obtained the necessary permits and clearances for the construction of the 49-story condominium unit in 2012, prior to Estrada’s term. “The zoning permit was issued after we submitted the development plans. As the former city planning and development officer did not deny the application, we continued on with the application for the building permit. Had our application for zoning permit been denied, we could have gone through the process of appealing to the local zoning

Reconstruction projects are set to result in strong growth for the construction sector in the Philippines over the coming year. The Philippine Contractors Association (PCA), which has been heavily involved in the clean-up operations following the typhoon, has predicted that construction activity will contribute to almost half of the countries economic expansion in 2014, with construction projects in 2014 likely to total P400 billion (US$9.17 billion). Investment in the development of housing and infrastructure will be the main drive for the construction sector, as both remain in short supply following Typhoon Yolanda. Local press has reported that around 7 – 11 million people were affected by the hurricane that has caused approximately US$15 billion worth of damage, with around 3900 dead and 600 000 left homeless. Growth during 4Q13 has fallen from 7.1% to 4.1% y/y compared to 4Q12. The Subdivision and Housing Developers Association has also reportedly called upon the construction industry to develop around 1 million new houses by 2016. Due to this, demand for building materials such as cement, concrete, steel and timber is set to remain strong. Cement The Philippine cement industry will benefit from the increase in construction activity. The Cement Manufacturers Association of the Philippines (CeMAP) noted that sales of cement were still higher than those in the same period in 2012, despite a sluggish market during the rainy season. CeMAP reported that the group’s six members, Cemex, Holcim, Lafarge, Northern Cement Corporation, Pacific Cement Philippines, Inc. and Taiheiyo Cement Philippines, Inc., saw an increase of 9.2% y/y in cement sales, which rose to 4.8 million t in 3Q13. Furthermore, cement manufacturers produced 18.4 million t of cement in 2012, an increase of 17.5% compared to 2011. Edited from various sources by Rosalie Starling 8 | Philippine Construction&Design March - April 2014

board, and applied for an exemption from the city council,” Austria said. •Temporary Suspension Last Nov. 26, the city council issued the temporary suspension order which was followed by a committee hearing on Dec. 12. In the joint committee report of the oversight committee and the committee on tourism headed by Councilor Don Juan Bagatsing, the lawmakers agreed that DMCI homes violated the zonal law or Ordinance No. 8119. The committee report said the condominium is located inside the institutional university cluster which imposes a maximum floor area ratio of four, and maximum percentage of land occupancy of 0.6. “Therefore, Torre de Manila is only allowed to construct a seven-story condominium building,” the report said. Danilo Victor H. Lacuna, Director of the City Planning and Development office, said the Torre de Manila “is in excess of the 42-story allowable gross building area.” However, the committee report said the high-rise building did not violate any national or local law that pertains to obstructing the prominence of the Rizal monument. This was backed by the Nov. 6, 2012 letter of the chairperson of the National Historical Commission of the Philippines (NHCP) Maria Serena I. Diokno to DMCI Consultant Alfredo A. Andrade. “The NHCP’s guidelines on monuments honoring national heroes, illustrious Filipinos and other personages seek to preserve the prominence and dominance of monuments, partly by keeping vista points and visual corridors to monuments clear for unobstructed viewing appreciation and photographic opportunities. Your project site is outside the front view of the national monument. Hence, it cannot possibly obstruct the view of the national monument,” Diokno’s letter said. The construction of Torre de Manila was approved by city councilors in a resolution passed this month with strict conditions set by Manila Zoning Board of Adjustment and Appeals (MZBAA). The MZBAA ordered DMCI, Inc. to furnish the City Planning and Development Office a copy of its Disaster Risk Reduction and Management plan as well as a commitment of support to barangay DRRM projects. The MZBAA asked the developers to create or provide livelihood or employment to its barangay or district residents, to ensure that the operation will not affect community heritage, traffic condition, public health, safety and welfare and to adopt green building practices. Jenny F. Manongdo

A major government project linking Luzon’s two major road networks is expected to start soon with the approval by the palace of the undertaking. Motorists and other road users will soon be breathing sighs of relief after the palace approved the contract for the Metro Manila Skyway (MMS) Stage 3 Project which will connect the Southern Luzon Expressway (SLEX) to the Northern Luzon Expressway (NLEX). The two are the major traffic arteries linking the capital region to urban centers south and north of it. The project, seen to start construction by the first half of 2014, will be fully funded by the Citra Central Expressway Corporation at an estimated cost of P26.5 billion (Dh531 million) and will be overseen by the Department of Transportation and Communications and the Toll Regulatory Board (TRB). “This new road is expected to help decongest EDSA [Epifanio delos Santos Avenue] and other major roads such as Quezon Avenue, Araneta Avenue, Nagtahan, and Quirino and greatly reduce travel time from Buendia in Makati City to Balintawak in Quezon City in Metro Manila’s northern fringes, from the usual two hours or more to just 15 minutes. A 2013 report released by the Japan International Cooperation Agency (Jica) estimated that some P2.4 billion worth of economic and opportunity loss is incurred daily as a result of Metro Manila’s

monumental traffic congestion. Metro Manila’s roads are notorious for getting flooded easily during the wet season due to poorly constructed and inadequately-maintained drainage systems. The planned new MMS Stage 3 project however will not suffer from flooding because it will be elevated. “The flood free, mostly elevated six lane expressway, has an approximate length of 14.2 kilometrres and will help reduce pollution, provide greater comfort and safety to the motorists and result to large savings in travel time, fuel and vehicle maintenance costs,” the Department of Transportation and Communications (DOTC) said in a statement. It added that the project, which is expected to be completed within three years, will also provide around 6,000 direct jobs and an additional indirect jobs of around 10,000 during construction. DOTC Secretary Joseph Emilio Aguinaldo Abaya said that the first section of the roadway from Buendia to Nagtahan may be opened for service by early 2016. Aside from the MMS Stage 3 Project, the government is also building a 7.5 kilometre expressway will connect the airport terminals country’s main gateway, the Ninoy Aquino International Airport (NAIA) with a wide seaside roadway linking it to Southern Metro Manila. The expressway will link the Ninoy Aquino International Airport (NAIA) Terminals I and II as well as the

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Philippine’s construction market bullish

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RP elevated highway to connect north and south Luzon road network

Diosdado Macapagal Boulevard and the Entertainment City casino complex. Presidential Spokesman Edwin Lacierda had earlier said that a major portion of project would completed in time for the Asia Pacific Economic Cooperation (APEC) summit in 2015. This will connect NAIA Terminals I and II through an elevated tollway structure. Traffic at the NAIA aerodrome had been perennially heavy as it is located in a busy area of Metro Manila. As a result, departing passengers had been advised by the authorities to be at the airport three hours before their flight departure schedule. Gilbert P. Felongco, Correspondent

Research from business intelligence specialist Timetric suggests that the market for infrastructure construction is growing fast in the Philippine. Timetric’s data shows that infrastructure accounted for 37.3% of the country’s construction sector and was worth US$9.6 billion in 2012. The market grew at a Compound Annual Growth Rate (CAGR) of 12.12% and is expected to reach a CAGR of 8.19% by 2017, having been boosted by the need to repair flood damage that occurred in 2012. The country’s construction industry is highly dependent on imports of construction machinery. Several mega infrastructure projects are underway at present. TheNational Economic and Development Authority launched an $8.3 billion flood management plan to improve drainage systems, river capacities and flood ways in Manila and neighbouring areas due to flooding in 2012. The plan is expected to be implemented in phases through to 2035. Despite this, the Philippines has one of the lowest ratios of investment in physical infrastructure to GDP in Southeast Asia; consistently below 3% compared to the regional average of 5%. Lack of adequate infrastructure has been a deterrent for businesses trying to enter the Philippine market. The new government initiatives are expected to support the expansion of the infrastructure construction market over the forecast period. www.WorldHighways.com March - April 2014

Philippine Construction&Design

NEWS ROUND-UP

The New Philippine Arena, the world’s largest, takes shape Due for completion in April 2014, the Philippine Arena will be the world’s largest indoor arena seating 50,000 people. Situated on a green field site north of Manila, the arena is of a scale not previously seen before in the Philippines, and will put the country on the world stage. The Client for the arena is Iglesia Ni Christo who are building it as part of a community development which, when completed, will include an arena, a university, a stadium, a sports hall, a hospital, several hotels and residential accommodation. Over the last 18 months, two shifts a day working from 7am to midnight, have kept the construction site buzzing with activity. A constant flow of concrete mixers, trucks with reinforcement steel, semi-trailers with huge pre welded steel components shipped from Korea, and many other trucks with materials and products from around the world have been pushing along a narrow dirt road full of pot holes that provides site access until the proper free-way ramps are completed. The scale of the project has become the talk of the town. In recent months installation of the roof cladding has commenced and the true scale of the 65m tall 220x170m wide building has become evident. Ron Van Sluijs, Populous After 15 months the vision is coming together

Major builders show interest in bidding for Integrated Transport System Terminal Strong interest from the private sector continues to heat up as ten (10) prospective bidders showed up at the pre-bid conference for the country’s P2.5 Billion Integrated Transport System (ITS) – Southwest Terminal. The ITS is part of a robust pipeline of projects under the Public-Private Partnership program of government. Ayala Corporation, Ayala Land, D.M Wenceslao and Associates, Inc., Eigis Projects Philippines, Filinvest Land Inc., Megawide Construction Corporation, Metro Pacific Investments Corporation, Robinsons

Land Inc, San Miguel Corporation and Vicente T. Lao Construction took part in the conference for prospective bidders making this one of the more popular projects under the country’s PPP program. The proposed transport terminal is sitting on a 2.9-hectare site located southwest of Metro Manila, specifically at the Philippine Reclamation Area (PRA) near the Uniwide Coastal mall in Paranaque City. The southwest terminal will strategically serve passengers from the Laguna, Batangas, and Cavite area.

10 | Philippine Construction&Design March - April 2014

As part of a transparent bidding process under the BOT law, the DOTC will be conducting one-on-one meetings with the prospective bidders staring February 11 until February 17. The DOTC will then issue to the prospective bidders the final bid documents on April 4, 2014. Bidders will be asked to submit their final bid for the ITS on May 15, 2014. The concept of a integrated transport terminal in Metro Manila takes its roots from Executive Order No. 67 issued out by President Aquino which mandates that an integrated transport system be constructed in the north and south of Metro Manila making sure that commuters experience a seamless and efficient travel by delivering reliable interconnections between different modes of transportation. The terminal will connect passengers from the provinces to other urban transport systems– railway, city bus, taxi, and publicutility vehicles (PUV) – serving inner Metro Manila. It will feature passenger terminal buildings, maintenance areas, arrival and departure bays, ticketing and baggage handling facilities, park-ride facilities, and, when necessary, transfer facilities such as shuttles to provide seamless transport connections.

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The Philippines:

Cementing growth A rising tide of investments in infrastructure development, combined with higher spending by the private sector, is set to drive the robust expansion of the construction sector, and in particular, the cement production segment. However, prices could be pushed up by rising demand as a number of large new infrastructure projects are rolled out. In late February, the Department of Budget and Management released its economic growth forecasts for this year and next. GDP is expected to expand by between 6.6% and 7.6% in 2013 and by 7.4% and 8.6% in 2014, with industry – including construction – leading the charge. Indeed, one of the biggest winners from the growth in 2012 was the Philippines’ cement sector. According to the Cement Manufacturers Association (CEMAP), demand for cement rose by 18% in 2012, the sharpest increase in 15 years. While prospects for the industry are seen as good for 2013 as well, the rate of growth is expected to be below that of 2012, with expansion of up to 10%. In early 2013, Ernesto Ordoñez, president of the CEMAP, said higher spending from the government on infrastructure developments would boost turnover. Increased investments in building developments are also expected to fuel the sector’s expansion this year. Lafarge

Republic, for example, one of the Philippines’ largest cement companies, is engaged in an aggressive expansion strategy to increase capacity within each of its manufacturing plants and subsidiaries to supply an additional 200,000 tonnes of cement per year in Luzon, 650,000 tonnes per year in Visayas and another 100,000 tonnes per year in Mindanao in 2013. “Given the rapid growth in construction investment, the outlook for the cement industry is positive, and most players are engaged in expansion plans to meet the growing demand for cement, aggregates, and concrete,” Don Lee, president of Lafarge Holdings, told OBG.” It appears increased state investments have already impacted cement producers, with several of the largest companies in the sector posting strong earnings for 2012. At the end of February 2012 results for one of the biggest, Holcim, showed sales up by 21%, following a fall of 5% the previous year. The company’s net income rose from the 2011 figure of around $50m to $89m, an increase of just under 80%. Eduardo Sahagun, CEO of Holcim, said strong construction activity in both the public and private sectors drove growth. “The cement industry has been growing at an average of 4% to 5% for the past 10 years,” he told OBG. “Since most infrastructure was brought to a standstill due to the new incoming government, the

industry grew at 1% in 2011 as opposed to 7% in 2010. However, 2012 was a catch up year that saw exceptional growth of 20%.” Another leading firm, Southeast Asia Cement Holdings (Seacem) reported to the Philippines Stock Exchange on February 11 that its year-end profits for 2012 were $92m, more than eight times its 2011 result of $11m. While the results are positive, there could be a downside for the economy. There are concerns that shortages could push up prices, which in turn could drive up inflation. The Bangko Sentral ng Pilipinas (BSP), the central bank, has moved to dispel these concerns, saying any price increase could be indicative of a surge in growth in the building sector. On March 2, Diwa Guinigundo, the deputy governor of BSP, said inflation was well in hand, being at the lower end of the 2.8-3.7% range targeted by the reserve for February, despite the rising costs of cement. “Prices of commodities are generally stable, with slight price increases for cement. The increase in cement prices should not be viewed negatively, as this signals renewed business activities in the construction sector,” Guinigundo said. To some degree, this supply-side pressure could be eased by a planned increase in production. Looking to consolidate on the strong performances of 2012, most of the Philippines’ leading cement producers have announced plans to expand production capacity, either bringing dormant plants back on line or opening new facilities. One other concern will be the government’s ability to maintain a steady flow of new developments. The state has committed to infrastructure projects worth $11bn in 2013, which it intends to increase to $16.74bn by 2015. However, the government has struggled to roll out large-scale developments in a timely manner in the past, with delays over planning and approval processes and funding allocations postponing start-ups and pushing back completion dates. If the government can streamline its own contribution, it is likely the construction industry will be able to meet the higher demands placed upon it by the investment programme, while also serving the private sector’s needs, which will provide the infrastructure needed to enable more efficient growth of other key segments of the economy such as agriculture and tourism.

March - April 2014

Philippine Construction&Design

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Construction Outsourcing:

AG&P delivers Philippine built Australian gas refinery

Built in Manila, shipped to Indiana

Photograph by AG&P

At the Atlantic, Gulf & Pacific construction yard and port in Batangas, about 90 minutes south of Manila by car, workers are putting the final touches on a combination of pipes, electronics, and crisscrossed steel beams that will become part of a gas refinery in Australia. The unit is about 50 meters (165 feet) high and 50 meters long and will connect with others like it, also made by AG&P.

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Each day, thousands of Filipino welders, pipe fitters, and other workers arrive at the yard, where cranes tower over open-air sheds that resemble airplane hangars, to make pieces of infrastructure projects destined for final assembly in locations worldwide. “Everything is meant to fit together like a giant jigsaw puzzle,” says Joseph Sigelman, the U.S.-born chairman of Manila-based AG&P. Average daily pay for construction workers in the Philippines last year was $7, according to the Ministry of Labor and Employment. The heavy lifting at the AG&P site is part of a wave of outsourcing that could do for the construction industry what Indian companies did for back-office services. Since taking over AG&P in 2010, Sigelman has turned a down-on-its-luck local builder into a specialist in making parts for power plants, oil and gas refineries, and other large projects for companies including Brazil’s Vale (VALE), and Bechtel andChevron (CVX) of the U.S. For a $3.8 billion expansion of an oil refinery in Whiting, Ind., BP (BP) bought made-in-the-Philippines coker units that took 47 days to ship from Batangas to Lake Michigan. Sigelman, 42, knows outsourcing. The former Lazard (LAZ) and Goldman Sachs(GS) banker went to India in the late 1990s to found OfficeTiger, a provider of outsourced back-office operations. In 2006, RR Donnelly bought OfficeTiger for $250 million. After starting up an energy service company in Colombia, Sigelman joined a group of investors to buy AG&P for $40 million. The company was founded by two Americans in 1900 during the U.S. occupation of the Philippines and built Manila’s water and sewage systems. It fell on hard times in the post-Marcos era. Sigelman sees a chance to replicate the low-cost outsourcing model that worked for him in India. Modular construction companies that once did only simple projects now can assemble complex equipment complete with instrumentation and electrical, mechanical, and ventilation systems. Sigelman says that thanks to advances in engineering software, “every single bolt and screw is noted in the computer.” As a result, “you can visualize how those things work on modules that are far denser than before,” says Sigelman, who calls AG&P’s model “IPO,” or industrial process outsourcing. Because of the fracking boom in the U.S., unmet demand for skilled construction workers is high. The same is true in such remote spots as the Alberta tar sands and the Australian outback. Construction outsourcing can help companies cut costs by as much as 20 percent, says Harvey Bernstein, vice president at McGraw-Hill Construction (MHFI) and co-author of a 2011 report on the industry. “If you’re building things in a manufacturing environment off-site, you might not have to get a licensed carpenter or electrician,” he says. “You can bring in lower-skilled people and set them up in an assembly-line situation where they’re doing something over and over again.” For intricate work such as welding, craftsmen are far more productive working at a bench in a warehouse than perched atop a ladder. The formula can work inside the high-priced U.S. as well, where savings can be achieved by using the assembly-line approach, with the help of some skilled labor. American construction company Cianbro built 22 electrical modules, some three stories tall, that will operate a new nickel-processing plant in Newfoundland being built by mining company Vale. Rather than construct the modules on-site, Cianbro built them in its factory in South Brewer, Me., then sent them by barge up to Vale’s plant in New Harbour. “The workforce to do this is specialized, and they may not be available in

“

The workforce to do this is specialized, and they may not be available in areas like Newfoundland or even along the Texas coast

”

-- Joe Cote general manager of Cianbro’s modular business. areas like Newfoundland or even along the Texas coast,” says Joe Cote, general manager of Cianbro’s modular business. “You’d have a hard time convincing these guys to go work up in Newfoundland.” At Camp Pendleton, the U.S. Marine Corps base in Southern California, a 500,000-square-foot naval hospital complex is set to open on Dec. 15, six months ahead of schedule and about $100 million under its $580 million budget. Clark/McCarthy, a joint venture of two U.S. construction companies, relied on preassembled kits for the pipes, ducts, and electrical components that it built in nearby warehouses. “The old way was that the shop sent giant pieces of raw duct work to the site and the workers cut them to size and then maneuvered them around beams and columns and made tiny adjustments on each one,” says Carlos Gonzalez, project director. “Now you just snap it in. It’s easier, it’s faster, and the quality is better.” At Camp Pendleton, the U.S. Marine Corps base in Southern California, a 500,000-square-foot naval hospital complex is set to open on Dec. 15, six months ahead of schedule and about $100 million under its $580 million budget. Clark/McCarthy, a joint venture of two U.S. construction companies, relied on preassembled kits for the pipes, ducts, and electrical components that it built in nearby warehouses. “The old way was that the shop sent giant pieces of raw duct work to the site and the workers cut them to size and then maneuvered them around beams and columns and made tiny adjustments on each one,” says Carlos Gonzalez, project director. “Now you just snap it in. It’s easier, it’s faster, and the quality is better.” Entire apartments are made in a factory in the old Brooklyn Navy Yard. Even in New York, using an assembly-line approach to make modules realizes savings by stripping out massive amounts of waste. “The construction industry is historically very inefficient,” says Richard Kennedy, co-chief operating officer for Skanska USA Building. “The more you can do in a controlled environment, the better.” Better still to do that in a low-cost country such as the Philippines. Sigelman won’t reveal privately held AG&P’s sales but does say the company, which had just 300 workers in 2011, now employs 5,200 and plans to increase head count to as much as 7,000 by yearend. AG&P has teamed up with Fluor (FLR), the Texas engineering company, to build a second construction yard in Batangas. Dan Spinks, Fluor’s general manager in Houston, won’t provide specifics on the savings gained by building in the Philippines. “I’ll just say there’s a significant difference,” he says. “Everything we do here in Houston, we can do there.” Bruce Einhorn and Matthew Philips.

March - April 2014

Philippine Construction&Design

news features

The Philippines energy grid is expecting a total of 5,468MW from hydroelectric power projects. Image: Shutterstock

Philippine hydro and wind power to boom in 2014 Renewable energy in the typhoonbattered archipelago received a boost as government issues green light for several proposed power plants as part of larger efforts to become 100 per cent powered by renewables within a decade

14 | Philippine Construction&Designâ&#x20AC;&#x192; March - April 2014

Hydroelectric power remains the most attractive renewable energy investment in the Philippines as eight new mini hydro projects gain approval for construction this year. Hydrotec Renewables, the developer of the eight projects, which champions the use of low-impact hydropower construction said this week the company is investing US$53 million to US$62 million on the combined 25-30-MW projects, eyed for completion by 2016. The projects are located in nearby provinces outside Metro Manila, with three in Rodriguez City (Sitio Wawa, San Isidro and San Jose), one in San Mateo, two in Marikina City (Tumana and Nangka 4) and two in Antipolo City (Hinulugang Taktak and Nangka 1). The company applies a ‘sustainable small hydro approach’, where it incorporates data gathered from hydrological, topological and metrological research in the construction process, including project site attributes to avoid the need to cut trees and inflict environmental disruption to the flora and fauna and existing communities, its website said. The company also espouses turnkey installation that do not require ‘tunnelling’ or capital intensive building, thus shortening the construction timeframe to only seven to nine months. The eight new projects will also be installed with real time, satelliteconnected weather forecast system at each of Hydrotec’s hydropower plants at no cost for the hosting local city or municipal government. This aims to improve the efficiency and operation of the plant by giving a precise 72-hour forecast about any meteorological events like storms, typhoons, direction and speed of wind and clouds, and amount of rainfall. Trash racks will also be installed to help remove waste and garbage materials from the rivers. The company, owned by Filipino and German investors, said it is also looking to install power plants in Leyte and other areas devastated by super typhoon Haiyan last November. The typhoon had put tremendous pressure on the nation’s power grid after causing major damages to energy facilities in the affected areas. Thus, renewable energy plays an important role in the reconstruction of these communities. The country is already one of the world’s leaders in renewable energy, with a third of its primary energy source coming

from renewables. Its Climate Change Commission said last year it is laying a sustainable energy roadmap which aims to shift the country’s current fuel system to 100-percent renewable energy capacity in a decade. “Any kind of renewable, ecological friendly produced electricity is an essential contribution to the protection of our environment and nature for forthcoming generations and it will stabilise or lower electricity prices,” Hydrotec Renewables managing director Hannes Mueller said in a statement. According to Department of Energy (DOE) data, hydropower - with a total capacity of 5,468MW - will contribute the most amount of renewable energy in the country. Out of this, 2,950MW are still in the pipeline. “The major benefit of our projects is the average annual contribution of hundreds of megawatt-hours of clean electricity to the Philippine grid, reduction of brownouts, avoiding thousands of tonnes of carbon dioxide emissions and a significant reduction of the import and dependence of crude oil and the operation of environment polluting carbon and diesel plants,” Mueller added.

Wind breaks

Separately, four wind energy projects in Luzon were awarded the certificates of commerciality last month which means developers can proceed with the construction of the projects and that upon operations, these projects would supply to the grid under the feed-in-tariff (FIT) system. The government has approved FIT rates for renewable energy last year for wind, solar, hydroelectric and biomass energy at a rate lower than those asked for by renewable energy developers. The FIT per kilowatt hour for solar power is set at PhP9.68 (US$0.223); wind, PhP8.53 (US$0.197); run-of-river hydroelectric power, PhP5.90 (US$0.136) and biomass PhP6.63 (US$0.153). Under the system, electricity sold to consumers is fixed for a period of 20 years. The projects are: Energy Logics Philippines for a 48MW in the municipality of Pasuquin; Energy Development Corp’s 63MW expansion of its existing project in the municipality of Burgos; AC energy Holdings’s 45MW in Pagudpud; Ilocos Norte through its joint venture with Northern Luzon UPC Asia Corp, and an 18MW expansion of its 33MW wind farm in Bangui.

These projects will add to five other ongoing constructions that have already received the ‘declarations of commerciality’ from the government. Wind power is third among proposed renewable energy projects in the country after hydroelectric and geothermal, aiming to supply 417MW to the grid.The 33MW Bangui Bay Wind Power Project in Ilocos Norte is so far the only wind project that is supplying the grid. The DOE further announced last month that in 2014, some 633.5MW of electricity coming from wind and solar projects will be added to the grid and can power 126,700 households. Director of the DOE’s renewable energy management bureau, Mario Marasigan said in a forum last year that renewable energy contributes between 38 to 39 per cent to the country’s overall primary energy resources. Geothermal and hydropower plants each account for about 14 per cent of the country’s total energy mix, while other renewable sources such as wind, solar and biomass are still comparatively undeveloped. The country is aiming for its overall renewable energy programmes to have a capacity of 15,304 MW by 2030, up from about 5440 MW currently.

“

The major benefit of our projects is the average annual contribution of hundreds of megawatt-hours of clean electricity to the Philippine grid, reduction of brownouts, avoiding thousands of tonnes of carbon dioxide emissions and a significant reduction of the import and dependence of crude oil and the operation of environment polluting carbon and diesel plants

March - April 2014

”

—Hannes Mueller

Philippine Construction&Design

news features

Focus on innovation at Productronica China Productronica China 2013 and electronica China 2013 closed their doors at Shanghai New International Expo Center on March 21 with 737 exhibitors and 47,287 visitors—a 13% increase compared to the previous year. The exhibition space has grown from three halls in 2012 to four halls in 2013. With 46,000 square meters, the trade fairs broke the records, increasing by 31%. Productronica China took visitors into future technologies, industry trends and rapidly growing markets. It displayed cutting-edge technologies in cable processing, dispenser, EMS, materials, SMT, coil winding, ESD, clean room, test and measurement, automation and

component manufacturing and more. Productronica China always convinces in displaying cable processing technologies. Global leading players such as JAM, komax wire, Lode, Practical Solution, Schleuniger, Schaefer or ShinMaywa, plus local pioneers including Hiprecise, Junquan, THB, Yinhua and others, presented their latest products. Marc Schuermann, Vice President Sales Member of General Management of Komax Wire, commented: “It’s a very exciting show. We have met about 550 customers. It’s quite busy for us. And all over it’s a great show.” Furthermore, the International Wire Harness Innovation Forum focusing on the

topics such as automotive wire harness, design and innovation of green wire harness and latest technologies on test system, was very well-attended throughout the trade fair. Visitors benefited from the brilliant views by experts, scholar and engineers who were from the well-known institutions of higher education and top industrial cooperation. Next productronica China and electronica China in Shanghai will be held on March 18-20, 2014. About electronica China & productronica China are the leading regional trade shows for electronic elements and assemblies and electronics production in China. The shows take place in Shanghai each March and are co-located with LASER World of PHOTONICS China. electronica China and productronica China are events in the electronics network of Messe München International. This network of electronics trade fairs includes leading regional events in Delhi, Hong Kong and Shanghai, as well as electronica and productronica in Munich. A total of 5.517 exhibitors and 200,000 visitors take part in these events. For further information on Productronica China visits and exhibition: www. productronicachina.com c/o Fairs & More Inc. Cahea Lim Ang, cahea@eccp.com Fairs and More, Inc. , a subsidiary of the European Chamber of Commerce of the Philippines, is the official and exclusive representative of Messe München in the Philippines.

Mixed-Use Development conference

environment, but also to enhance and enrich lives. Whether it’s a town center, urban village, or lifestyle center, planning a mixed-use development is essential. The wisdom of master planning is proven with Circuit Makati, a mixed-use urban center which is the city’s entertainment district. Another significant development is SM seaside city a 30-hectare mixed use project with the largest mall in southern Philippines as well as various residential, commercial, and tourism development in Philippines. M i x e d - U s e Development conference allows you an interactive and learning platform to ask industry leaders about their winning approaches and methods; and how

they overcame the many reoccurring issues within an MXD context. Covering all types of developments, from horizontal and vertical, we will also be looking into all aspects of a mixed-use, covering not only retail and residential but office, commercial, hospitality and industrial as well.

Urbanisation is expected to continue to be a dominant trend in 2014 and with it comes the opportunity for redevelopment of urban locations and the rise in mixeduse projects. Project delivery process of mixed-use is not the same as any “conventional” single-use projects. Successful implementation of mixed-use project requires a carefully assembled development team that possesses strong management, development and design experience. In today’s market, developers are looking at providing a live-work-play

16 | Philippine Construction&Design March - April 2014

March - April 2014

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

association, organizations and companies

PRC Chair Manzala discusses implications of ASEAN 2015 integration at the FEU - CDAP capability enhancement learning session Fresh from a series of meetings with Filipino professionals and skilled workers, and the National Qualifications Authority in Abu Dhabi, United Arab Emirates, PRC Chair Teresita R. Manzala met with members of the Career Development Association of the Philippines, FEU Faculty and Students in a capability enhancement learning session on “the implications of 2015 ASEAN Integration on Student Career Development and Education” at the FEU Technology Building on Wednesday, January 22. According to Chair Manzala, the ten ASEAN Member States have established their national qualifications frameworks and qualifications systems, utilizing different domains and qualification levels, with corresponding descriptors. These cover basic education, technical and vocational training, and higher education. The ASEAN Qualification Reference Framework will function as a device to enable comparisons of qualifications and providing the concept of “best fit” between qualifications from different countries. The AQRF is aimed at providing support and enhancement of the national qualifications frameworks. It addresses education and training sectors and the wider objective of promoting lifelong learning.” The ASEAN Member States have agreed on 2018 as the target for the referencing of their national qualifications frameworks with the ASEAN Qualifications Reference Framework. “By enabling comparisons of qualifications across member countries that will support recognition of qualifications and encouraging the development of national approaches to validating learning gained outside formal education, the AQRF aims to promote and encourage education/learner and worker mobility, and higher quality qualifications systems”, Chair Manzala added. The AQRF provides opportunities to open up large market for goods, skilled labor and professionals. Likewise,

improvement in the regulatory framework and the implementation of quality assurance in the recognition of qualifications of learners, skilled workers and professionals are intended to protect the interest of the public, primarily students and parents. Chair Manzala underscored the important features of the national

framework with the shift to outcomesbased education and use of learning outcomes, the conferment of recognition to education and training providers, certificates and licenses by government regulatory bodies, implementation of quality assurance mechanisms, pathways and equivalencies, and to ensure international alignment of qualifications.

PCA holds Constructors’ Cup for Yolanda victims Around 110 PCA members and guests once again demonstrated their mettle and golf prowess in the annual PCA Constructors’ Cup held last December 12, 2013 at the West Side Grille of Wack-Wack Golf and Country Club in Mandaluyong City. Organized by the Philippine Constructors Association, Inc. (PCA) Golf Club, the tournament was played in six divisions—Class A, B, C, Seniors, Ladies, Guests—and primarily aimed to raise funds for the victims of Typhoon Yolanda that had hit the country November last year. Mr. Alex Trinidad and Mr. Thomas Chau wrapped up the game as Lowest Net and Lowest Gross champions while Mr. Ramon Fernandez, Jr., Mr. Ed Lagman

18 | Philippine Construction&Design March - April 2014

and Mr. Gerry Pancho secured their wins in the A, B and C divisions, respectively. Meanwhile, Mr. Ed Manzanares and Ms. Daisy Reyes both came in first in the Seniors’ and Ladies’ divisions. Mr. Ernesto Lim also emerged as champion in the Guests’ Division. Special awards were also given to Mr. Jose M. Roy for the Longest Drive; Mr. Ver Raymundo for the Accurate Drive; Mr. Joni Bagalso for theNearest the Green; Mr. Raul Blay for the Nearest the Tree; and Mr. Gabby Gabinete for the Shortest Drive. The event was backed by Good Morning Int’l Corporation, Holcim Cement, Boysen Philippines and DDT Konstract, Inc. as major sponsors, with Impact and BusinessWorld as official media partners.

New ERA University Philippines Arena PWP is designing the campus landscape for the New Era University in Manila Philippines. The first phase development includes the Philippine Arena designed by Populous, which will be the largest indoor arena in the world with a seating capacity over 50,000; The Philippine Sports Stadium; The Sports Center, an indoor aquatic and tennis center; a hotel; and a 600 bed hospital. The landscape design for phase one includes: The Philippine Arena, the Stadium Gardens, and the Water Gardens. The Philippine Arena landscape design is defined by a curvilinear system of formal trees and covered walkways that echo the elliptical form of the Arena connecting two arrival areas, two plazas and a grand stair that leads to the arena. The Stadium Gardens are defined by vertical layers of palm trees, drifts of informal flowering gardens, and dense hedges that expose two clearings for accommodating large casual gatherings or organized events. Currently under construction, the project opening is scheduled for July 2014. Visitors arrive to the Arena by bus or by car at the vehicular drop-offs that lead to one of two Arrival Plazas. Covered walks lead to the Promontory Plaza that greets visitors with colorful flowering trees, stepped circular planters, planter walls, and garden displays. The space is intended for meeting, socializing, resting, and moving through to other destinations in the complex. From here, visitors have easy access to the Arena, Great Stairs, or Ciudad De Victoria Plaza through arced stairs, which also create a natural amphitheater for smaller events. The Ciudad De Victoria Plaza can easily accommodate massive performances, sporting events, and celebrations. PWP has designed the space to be as flexible as possible so that it may be successfully programmed to draw in repeated crowds and meet a variety of programmatic needs. In response to the need to provide human scale to such a massive space, PWP introduced a bold and graphic paving pattern, two 15M tall fountain jets that frame views to the Arena, and a richly layered plaza edge. The fountains may be turned off and fully drained so that the entire surface may be used during large events.

PCAB Amnesty 2013 ends The Amnesty declared by PCAB (the Philippine Contractors Accreditation Board) during 2013 has ended. The Amnesty was originally up to 31 January 2014 but the validity deadline was extended by the PCAB Board to 14 February 2014 in order to allow more unlicensed contractors to avail of the Amnesty. PCA Metro previously reported that the Amnesty was extended up to the end of February 2014. This report was based on specific information provided to it by PCAB personnel. PCA Metro apologizes for any inconvenience caused as a result of this erroneous information but wishes to underline that it posted this information in good faith based on information provided to it. The PCAB Amnesty was aimed at unlicensed contractors, unlicensed developers, project owners and the

like and architectural and engineering professionals engaging in activities that require a contractorâ&#x20AC;&#x2122;s license. In terms of the provisions of Republic Act 4566 enacted in 1065, only licensed contractors (which includes specialty and subcontractors as well as project owners constructing without the services of a contractor) may engage in construction contracting in the country. Failure to comply with licensing requirements under the act is an offense. License renewal for CFY (Construction Fiscal Year) 2014-2015 is now in full swing. PCAB licenses are renewable annually on or before 30 June. PCAB is now strictly enforcing and implementing the staggered license renewal starting in February and contractors who fail to comply with their renewal schedule will be required to pay an Additional Processing Fee (APF).

March - April 2014

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

INTERNATIONAL NEWS

Projects in Ho Chi Minh City launch apartment sales With positive signs on the real estate market since last year’s second half, some property enterprises are preparing to launch apartments to grasp business opportunities in the early months of the year, a local newspaper reported. The Saigon Times Daily quoted Phu My Hung Corporation as saying it would offer Green Valley apartments for sale this quarter. The Green Valley project consisting of four buildings of 20-27 floors supplies 546 apartments having an area of 88-194 square meters each. Phu My Hung has not announced the selling price but said the apartments were for medium-income earners and affordable to buyers with financial supports from banks. Also in Saigon South, The Park Residence located on Nguyen Huu Tho street with around 1,000 apartments of 52-73 square metres each has been put up for sales. The selling prices of such apartments start from 700 million VND (33,000 USD) per unit. The Park Residence’s investor is receiving bookings and will finish the project in 2016. Meanwhile, in District 6, Him Lam Land Company is about to sell apartments of the Him Lam Cho Lon project located near the district’s administrative centre. The project supplying around 1,400 apartments is almost finished. Khang Dien House Trading and Investment Joint Stock Company is going to launch the sale of Mega Residence townhouses in District 9. Khang Dien will sound out the market

by offering for sale around 160 adjoining houses at a price starting from 13.5 million VND per square metre, or some 1.99 billion VND per unit. With its location near Ho Chi Minh CityLong Thanh-Dau Giay Expressway and the belt road and especially a price equivalent to that of an apartment, the investor expects to attract many buyers to Mega Residence in the coming time. Besides, there are many other projects offering apartments for sale such as Illustrative image. Photo: Internet Lexington Residence in District 2 at around 20.6 million VND per square metre, PARCSpring in District 2 at 17.4 million projects on the company’s land left. More VND, Sunview Town in Thu Duc district at projects will be carried out when it can 11.2 million VND and An Phu 2 in District 8 find partners with financial capabilities, he added. at 16.8 million VND. Luong Tri Thin, General Director of Dat According to Cushman & Wakefield, the apartment sales volume was better Xanh Group, said Dat Xanh would not last quarter, mainly in the budget segment invest in individual apartment projects but having selling prices hovering around 15 develop clusters like small urban areas of 10-20 hectares each. It will be in charge of million VND per square metre. Cushman & Wakefield forecast the price all investment stages, from investment to construction and distribution. might continue to decline this year. Dat Xanh earned 66 billion VND in profit In related news, property enterprises said they would develop projects based on last year, doubling that of the previous year. Statistics of the Ho Chi Minh City’s their existing land and would not spread Department of Construction showed that investments this year like before. According to Nguyen Van Duc, Deputy around 5,000 among the apartment inventory Director of Dat Lanh Real Estate Company, of nearly 14,500 units found buyers last year. According to market observers, the the company started the year with a small apartment project having around 150 units market will continue to incline towards in Go Vap district and develop infrastructure buyers this year. Finished projects would for a townhouse project in Hoc Mon district. be more attractive to customers than those Duc said that these were the two final under construction. VNA

New highway to run through Boeung Tompong A new highway that is being built is expected to not only reduce traffic jams, but to also open up a large area for real estate development. The new highway, called Samdech Techo Hun Sen Blvd, runs from the intersection of Road 271 and Monivong Blvd to National Road 2 at Prek Kampis, and some initial work has already started. An employee of ING Holding Co, Ltd, a subsidiary of AZ Group, who asked not to be named, said the new highway is to help reduce traffic jams along National Road 2. The new road will be one-way with a park in the middle and will run for 9.16 kilometres and be 60 metres wide. The employee did not know how much

capital had been put into the project or when it was expected to be completed. “It is to avoid traffic jams between Phnom Penh and Takhmao, because in the Chak Angre area along National Road 2 to Takhmao there are traffic jams every day, so when this road is completed there would be no traffic problems,” he said. “My company has a development plan for the real estate in this area as well, but I do not know when that project will start.” A reporter from the Post who recently visited the area said there was some machinery doing work there and that some construction work had started. Kim Heang, the president of Khmer Real Estate Co, Ltd, said the construction work

20 | Philippine Construction&Design March - April 2014

is good because it shows the strength of real estate in Cambodia, particularly for land in this area. The construction work sends a signal to both national and international investors about the strength of infrastructure in Phnom Penh and also the strength of the property market in Cambodia. Po Eav Kong, the Managing Director of Asia Real Estate Cambodia, said: “If this road is completed fast and well, it will contribute positively to the development of the real estate sector in Cambodia, because I heard that AZ Group plans to build many residential projects in that area.” He added that although this project has not yet been publicised, he knew the company already had a master plan for the development. The company does not want to leak any information, he said, which may make property owners in the area demand higher-than-the-market prices. CNN

March - April 2014

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

INTERNATIONAL NEWS

Japan, Dong Nai consider Long Thanh int’l airport

Illustrative image. Photo: Internet Japan’s Deputy Consul General in Ho Chi Minh City Yakabe Yoshinori worked with the People’s Committee of southern Dong Nai province on February 14 to

plan the funding and construction of the planned Long Thanh International Airport. According to the diplomat, the Japanese government is considering

ODA provision for the project upon the consulate’s request. While there have been some concerns from Japan about local opposition to the building of the airport, Vice Chairman of the provincial People’s Committee Tran Van Vinh has argued that the government considers building Long Thanh Airport a better option than expanding Tan Son Nhat Airport in HCMC or Bien Hoa Airport in Dong Nai. The airport, covering an area of 5,000 ha, will include four runways. In the first phase, it is expected to receive 5 million passengers and 5 million tonnes of cargo a year. Once completed, Long Thanh will be able to accommodate A380 aircraft, the largest operating in Vietnam. Yoshinori said that recommendations coming out from the working session will be sent to the Japanese Foreign Ministry so that an ODA request for the project can be processed at the earliest time possible. Construction of the project is expected to commence in early 2016. VNA

US$31 million invested into Vietnam-Japan techno park project Tokyo Metro offers assistance to Hanoi Metro Japan’s Tokyo Metro will provide technical assistance and counselling services for the Hanoi Metropolitan Railway Management Board (MRB) to develop and run urban metro lines. A document to this effect was signed in Hanoi on February 18 by Tokyo Metro Co. Ltd CEO Yoshimitsu Oku and MRB director Nguyen Quang Manh. Both sides will exchange information and increase cooperation in human resources for metro projects. Since February 2013 the Japan International Cooperation Agency (JICA) has helped Hanoi carry out a project on technical assistance and increased capacity building of a Hanoi agency to operate and repair metro lines in the city. Tokyo Metro and MRB experts are working on the establishment of an agency to manage and operate the lines in the future. Yoshimitsu Oku expressed hope Tokyo Metro’s 90 years of experience will help Hanoi develop modern urban railines, giving it a facelift in the coming years. VOV online

Construction work began on an innovative Vietnam-Japan technology park in Ho Chi Minh City on February 17 with a total investment of US$31 million. Vie-Pan Techno Park covers an area of 13 hectares in Hiep Phuoc Industrial Park and is expected to open in October. The project is divided into two phases. Phase one capitalized at US$ 7.6 million covers three hectares and accounts for 55% of Vie-Pan Industrial Park, the remaining ten hectares makes up phase two from the Hiep Phuoc Industrial Park Joint Stock Company TheTechno Park aims to attract more investment from Japanese support industry firms. It will provide an all inclusive service, creating favourable conditions for Japanese investors in the city. At the ground-breaking ceremony, Japanese Deputy Consul General in Ho Chi Minh City Yoshinori Yakabe said the project is listed in Japan’s national strategy to support small and medium-sized companies. He confirmed there will be 690 Japanese firms investing in the country’s southern economic hub in 2014, 70 more than last year. Municipal People’s Committee Vice Chairman Le Manh Ha announced this is the first model to be applied in Ho Chi Minh City to entice Japanese businesses, noting that it will be expanded to other industrial and technology parks across the city. VOV online

22 | Philippine Construction&Design March - April 2014

US$1.2 billion paper facility to resume construction

The southern Hau Giang province’s People’s Committee has given the green light for Lee & Man Group to resume construction of a US$1.2 billion paper complex. In June 2007, the provincial People’s Committee initially granted an investment license to construct the complex but it has been delayed four times for financial and other scheduling reasons. With a total investment capital of US$1.2 billion including over US$350 million in the first phase, construction is set to resume in April 2014. The complex is expected to be fully operational by 2015 with a capacity of 600,000 tons of paper per year.

OCIC ready to construct more condos on Koh Pich

Overseas Cambodian Investment Corporation (OCIC) is ready to build two more 30-storey buildings in the Casa Meridian Condo development on Koh Pich (Diamond Island) in the near future. Om Bun An, sales manager of Casa Meridian Condo, said construction on the

two condos will start at the end of the year. Each building will be 30 storeys high, have an underground car park, 188 units and 16 shop houses. She added that the condos will be completed by the end of 2016. Part of the project is to build another butterfly bridge

Satellite cities a solution for overcrowded Phnom Penh The coming sprawls of Phnom Penh’s new satellite cities will bring about not only opportunities but also challenges for the population. “Any urban area has to sprawl outside the main city areas so that it can keep up with the increasing demand of commercial land,” said Chrek Soknim, deputy director at Vtrust Property Co.. The expansion of the central city to the outskirts of Phnom Penh can also be a good solution to the rising population. The latest data obtained from Phnom Penh City Hall shows the current population is about 1.6 million, growing from 1.4 million in 2008, while other sources indicate more than 2.2 million people in the city in 2012. Satellite cities are growing quickly. The government approved $2.1 billion of construction projects in 2012, while it was only $1.2 billion in 2011, data from the Ministry Of Land Management, Urban Planning and Construction shows. The Phnom Penh Post linking the Sofitel Hotel to Koh Pich. “The company is developing this now because it sees a need in the condo market,” she said. “I believe the projects will be a success due to Cambodian laws authorising foreigners to own a place from the first floor up as well as conditions provided by the companies.” The price of a Casa Meridian condo will range from $80,000 to $600,000 per unit. Om Bun An said there are three things that make her company confident about the project’s success. “First off, we installed quality materials. Secondly, the glass in the condos are wind-proof and sound-proof. Finally, the project is in a great location with plenty of fresh air.” Kim Heang, the president of Khmer Real Estate Co, Ltd, said demand for condos is greater than the number available. But he added that it can still be difficult to find buyers as the majority of Cambodians have yet to adapt to living in condos. However Kuy Vat, the president and CEO of VTrust Group, said that while local people are less interested in living in condos, most of the customers are foreigners who are looking for an investment and who also prefer living in condos. Vat predicts that Cambodians will soon change their habits and start to buy condos as the city expands.

March - April 2014

Philippine Construction&Design

INTERNATIONAL NEWS

Laos Breaks Ground On Troubled Railway Project Linking Thailand to Vietnam

Officials use shovels to ceremoniously break ground on the Savannakhet-Lao Bao railway project last December Laos has broken ground on an ambitious high-speed railway project linking the country’s western border with Thailand to Vietnam. Giant Consolidated, a Malaysian company will construct and operate the 220-kilometer (140-mile) railway. A groundbreaking ceremony to mark the laying of the “foundation” for the project was held last December in Savannakhet. “Malaysia’s Giant was awarded a contract to construct and operate the railway from Savannakhet, on Laos’s southwestern border with Thailand, to the Lao Bao border gate with Vietnam in the east last November 2012’ Giant appears to be steaming ahead with the project after what may have been a minor derailment last year. Construction of the railway, which also links Savannakhet city to Vietnam’s Danang port city, is expected to take four years. A financial institution reportedly had agreed in April last year to provide a U.S. $5 billion loan to Giant to fund the construction, but it is unclear whether the arrangement was confirmed. Laos was also in negotiations to borrow U.S. $7.2 billion from China to fund a second planned rail line, a 420-kilometer (260-mile) project linking the capital Vientiane to southwestern China. Laos assumed sole ownership of the project after a Chinese construction company pulled out of a joint partnership because it decided the project would not be profitable enough. Legislators and the Asian Development Bank have cautioned that the project is “unaffordable” and could sink the country into debt. Laos has no coastline or seaports, and the rail links are expected to lower the cost of exports and consumer goods and help drive the impoverished country’s socioeconomic development. The country’s current rail system consists of a 3.5-kilometer (2-mile) link over the Mekong River between Vientiane and Thailand’s Nongkhai. Second rail line RFA

24 | Philippine Construction&Design March - April 2014

Political woes send Phnom Penh house sales tumbling House sales have plummeted by up to 60 per cent since the election on July 28, according to property firms. Realty company Sour Soufang has seen sales decline by about 70 per cent since the first quarter, General Manager Borey Rith said. Many customers who have visited to inspect sample houses said they were waiting for the political turbulence to ease before making a purchase, she said. “If the political situation remains like this, the Cambodian economy will weaken further,” she warned. “We are investors; we are not taking political sides. We just want the leaders to do whatever they must to stabilize the country and improve the economy. Sales for His Borey have declined about 60 per cent as people wait to see whether the country’s political situation improves, said Teng Rithy, general manager of Borey River Town, which runs along National Road 6 in Russey Keo district’s Chroy Changvar commune. “I hope the Royal Government will make society stable and peaceful and then the situation will improve,” he said. The owner of Borey Mohasethey said sales have been relatively healthy despite an initial post-election decline, and added that customers now consider properties more carefully before making a purchase. Another bright spot was the Olympia City development in Phnom Penh. Project director Long Sopheak said that condominium sales have remained steady since the election. Aside from the political tension, a freeze by some banks in issuing loans may also be to blame for the drop in property transactions, according to Bunna Reality Group General Manager Noun Rithy, who pointed to a possible silver lining. With most possible homebuyers biding their time, now is in fact an opportune moment to invest in real estate, Rithy said. “The current political situation does not affect the real estate sector seriously as the policies of the new government signify stronger and deeper reform than before,” he said. “Previously, we were worried about political deadlock, but the formation of the new government is a positive sign for those who want to invest in Cambodia, even though the current political situation is not 100 per cent stable.” CNN

March - April 2014

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

INTERNATIONAL NEWS

Mascot begins new construction in Laos

Royal Haskoning Vietnam Mascot International is now in the process of building additional manufacturing facilities in Laos. The factory will be approx. 9,000 m2 and expected to house over 800 employees. MASCOT has strategically chosen Vietnam’s neighboring Laos for the new factory. This is to acquire a broader geographical production base and to increase flexibility and production capacity. The factory is being built in VITA Industrial Park, some 20 km from Laos’s capital Vientaine. As with the construction in Vietnam, MASCOT in Laos will again set the standards for high building safety and socially responsible production with safe and good working conditions. MASCOT’s factory in Laos will be approximately 9,000 m2 and is expected to be completed by the end of the year.

Cemex supplies concrete for Malaysia’s largest project Cemex is part of the winning consortium providing over 550,000m³ of ready-mix concrete for the first phase of what will be Malaysia’s largest infrastructure project, the Klang Valley Mass Rapid Transit (MRT) system. The first line of the project is the 51km Sungai Buloh-Kajang Line, across the heart of Kuala Lumpur. The line will have 31 stations, including seven underground. The Klang Valley MRT project is designed to ease public mobility in the Klang Valley region which is expected to see its population substantially grow during the next seven years. Approximately 130,000 jobs are expected to be created in relation to the MRT’s construction project. “We are honored to play a pivotal role in the largest public infrastructure project in Malaysia, a country where construction is crucial to its economic growth,” says Fikry Kaissouni, president of Cemex in

Malaysia. “The strategic distribution of our ready-mix concrete plants and our high standards of quality positioned us very well to provide materials for this project.” Cemex is supplying a high-durability, flowing concrete designed to minimise defects in the structures and allow for workability 39m deep. In addition, the concrete is specifically designed to meet the temperature-control requirements of the Malaysian climate, and the low-water permeability needed by underground substructures.

26 | Philippine Construction&Design March - April 2014

Malaysia’s construction boom has peaked, says new Business Monitor report Malaysia’s construction boom has reached its peak, according to a new Business Monitor (BM) report on the country’s infrastructure investment. The leading global independent business research data provider’s report states that Malaysia’s construction activity in Q2 2013 represented the lowest pace of expansion since Q4 2011. BM expects this slowdown to intensify, primarily due to falling demand for residential and non-residential buildings, as well as concerns about Malaysia’s fiscal position. These concerns have increased financing risks for publicfunded projects, say BM, particularly within the infrastructure sector. As a result, BM has maintained its construction growth forecasts for 2013 (10.1%) and 2014 (6.7%), but revised down its longer-term forecasts, from an annual average of 5.0% to 4.5% between 2015 and 2017. The BM report notes how in July 2013 the Malaysian Highway Authority said that the government was considering plans to construct a new coastal highway along the east coast of Peninsular Malaysia, from Kota Bahru in the state of Kelantan to Pengerang in Johor. The government would consider the viability of the project before undertaking it, according to the Malaysian Highway Authority’s Director Datuk Ismail Md Salleh. There is a need to improve connectivity and accessibility in the eastern coast of the country, while most parts in the western coast areas are well-connected and served with roads and highways, Salleh added. The project is expected to create economic spillover effects and open new growth centres in the east coast areas. WorldHighway

S’pore construction demand to remain strong this year: BCA

New $1.27bn Malaysian airport opening delayed by a year

Labourers work on a building construction site in Singapore. (AFP/ROSLAN RAHMAN) The Building and Construction Authority (BCA) expects it to remain strong this year, with total construction demand projected to come in at between S$31 billion and S$38 billion. Private sector projects made up almost 60 per cent of construction demand in 2013. Private construction demand constituted S$21 billion of the total S$35.8 billion, while the remaining demand worth S$14.8 billion came from the public sector. But in 2014, private demand is expected to moderate under property cooling measures.Instead, public housing and major infrastructure projects are forecast to be key drivers of construction demand this year, making up almost 60 per cent of the total projected demand. For 2015 and 2016, BCA said average construction demand is projected to be sustained at between S$25 billion and S$34 billion per annum. Sixty per cent of the total demand is forecast to come from building projects, while the remaining 40 per cent is expected to come from civil engineering projects. But industry leaders said construction firms will have to work on improving productivity through adoption of newer technology, such as prefabrication. John Keung, CEO of the Building and Construction Authority, said: “To address the concerns of rising manpower costs and the tighter labour market, it is very important for our consultants and builders to make full use of government funding to improve the way they build -- to use more technology rather than relying on workers -- to make sure that labour efficiency and productivity are really the key considerations in their projects.” Going forward, the industry will also be focusing on improving labour productivity. Sponsorships and apprenticeship programmes have been targeted at grooming high-skilled local talent. More than 500 scholarships at undergraduate, diploma and ITE levels were awarded last year. BCA’s recent employment survey showed that more than 60 per cent of the employment opportunities available for locals in the next 12 months are at the Professional, Manager, Executive and Technician (PMET) levels. Lee Yi Shyan, Senior Minister of State for National Development and Trade & Industry, said: “I urge our firms to continuously upgrade the skills of our foreign workers. “Over time, we should recruit and retain the more experienced, better skilled workers who are more productive, to alleviate the need to bring in more foreign workers to meet the higher construction demand.” Meanwhile, BCA also hopes to encourage better workmanship with the launch of its “Quality Mark Homes” mobile application, which aims to enhance home owners’ awareness of quality standards for materials and designs. CNA/nd/ms

The opening of a new $1.27bn airport to accommodate budget carriers has been delayed until next year because of design changes and other construction setbacks, Malaysia’s airport operator says. Malaysia Airport Holdings Berhad said that the contractors for the terminal building of the new KLIA2, need additional time and set late April 2014 as a new target date for completion. Operations are to start on May 2, 2014. The airport was originally slated to open in mid-2012 but was delayed due to design changes. The contractors also have blamed poor ground conditions for the delay. Malaysia Airports has said 90% of the project is complete and that costs haven’t risen despite the delay.

HÄFELE DESIGN CENTER in Phuket wins DGNB Award The outstanding and already award winning HÄFELE DESIGN CENTER in Phuket (Thailand) has recently garnered the first gold certification in Southeast Asia from DGNB (German Sustainable Building Council), one of the most prestigious certificates for

sustainable architecture worldwide. The project was designed and planned by OIA, following an environmentally conscious concept from the beginning. One of it’s unique features is the thermodynamic roof, which generates a breezy natural airflow throughout the ensemble and collects rain water, demonstrating how a sustainability concept can be put into practice, optimizing the use of natural resources as well as lowering overhead costs. Having met the criteria and requirements according to recently developed and to the tropics adapted DGNB standards, the first gold DGNB certificate was officially handed to Mr. volker Hellstern, managing director of HÄFELE (Thailand). The DGNB system is a holistic planning and certification process that rates properties in terms of their sustainability based on 6-aspect criteria: ecological, economical, socio-functional, technical, process and site quality. criteria consider the use of resources and energy, life-cycle costs, safety, integrated planning or accessibility.

March - April 2014

Philippine Construction&Design

industry report

Skyscrapers and the race to the skies:

The rise of Pyramids to High Rise Buildings with its challenges and opportunities

The Burj Khalifa of the United Arab Emirates - tallest building in the World but not for long

By: Ma. Nenevetch D. Reyes

(photo courtesy of www. burjdubaiskyscraper.com)

www.burjdubaiskyscraper.com

28 | Philippine Construction&Designâ&#x20AC;&#x192; March - April 2014

Men have always been fascinated by tall structures. In the ancient world were the pyramids of Egypt, which exuded such grandeur and immortality that it earned Egypt a place in history as one of the greatest civilizations of its time. Long past the age of mummies and pyramids, building innovations remain to be a grand showcase of power, socio-economic progress and technological advancement. Tall buildings best of all, exemplify manâ&#x20AC;&#x2122;s unquenchable desire to break old norms and reach new heights; to build structures of great magnitude, way beyond purpose. The first ever skyscraper was built in Chicago in 1885, the 10-storey Home Insurance Company Building designed by renowned Architect William Le Baron Jenney. It was also the first building to use the skeleton steel frame which became a standard for tall buildings. This became possible because of the important developments that emerged between the late 18th and early 19th centuries during the Industrial Revolution, characterized as a period of rapid change in technology. Steel, iron and glass were developed for use in buildings during that time, which allowed the construction of high rises without the need for awkward, wide bases. Another breakthrough of the Industrial Revolution was the development of the electric elevator, which we know is fundamental to tall buildings. We have come a long way since then, from the 42 meter high Home Insurance Company Building to the 828 meters of Burj Khalifa. Yet, by all indications, tall buildings will continue to thrive in the coming years and who knows how tall will mean enough. The most ambitious undertaking to date is the Kingdom Tower of Saudi Arabia, a magnificent one kilometre high megatall skyscraper which is underway and due for completion by 2019.

In fact, the tower was initially planned to soar one mile (1,600 meters) but the height was later reduced when it was determined that the location was not fit for a building of that height.

A Quick Look at the 2013 Global Statistics of Tall Buildings

Not only has tall gone taller; we are also building too many, too fast. Experts say the tall building industry is growing at an astounding rate. Based on the Council for Tall Buildings and Urban Habitat (CTBUH) statistics, a total of 8146 tall buildings have been built by the end of 2013, including those already demolished. Compared to the 2003 completion of 4896, it registers an increase rate of 63.3% in a decade. 73 tall buildings with heights of 200 meters and above were completed globally in the previous year, with Continental Asia largely dominating the statistics. Of the 73 worldwide completions, 90 percent were built in Asia, which corresponds to 65 buildings. 37 of the 65 completed in Continental Asia were in China and China has for six straight years, topped the list of countries with the most number of tall buildings (over 200 meters) completed. Some studies directly relate the rapid rate of increase and vast scale of urban development in this country to the huge influx of population to urban communities in the region.

Home Insurance Company Building

Why High Rise?

The proliferation of high rise buildings is born out of many factors, the most compelling of which is the need for more urban habitat. Anywhere in the world, most people choose to live in cities against the backdrop of skyscrapers, over living in peaceful, easy provincial settings. This is a manifestation of our predilection to urban life by which progress is commonly associated. Because of the influx of population and the increasing demand for public facilities and services in urban communities, continuous redevelopment of the existing cities and developing new ones become necessary. And as urbanisation rates explode around the globe, governments and urban planners increasingly see more high-rise to fill the need. Within the context of urban development, high rise buildings do have their advantages. For one, it can optimize efficient land use, which is high on the list of planning considerations because of the extremely high costs of urban land. Another advantage is that cities with tall buildings require fewer infrastructures and less energy which translates to being more cost-friendly and sustainable. High density living can also maximize the efficiency

www.comicvine.com

www.vincentloy.wordpress.com

http://en.wikipedia.org/wiki/Home_ Insurance_Building

Between China and the UAE, there exists a wide contrast in high rise ratio to citizens. China, on the one hand has a ratio of 7 million citizens to every building of 200 meters and above, while UAE on the other has 100,000 citizens to every building of 200 meters and above. Thus, according to CTBUH, this disparity implies that the movement of the tall building industry cannot be pinpointed to a single factor such as population, density, government, etc. but is motivated by many local and global factors.

CTBUH New Terminologies

With the burgeoning number of high rise buildings, and new record-breaking heights; recent terminologies have also been coined by CTBUH. Now there is Supertall - referring to buildings with heights over 300 meters and Megatall - for buildings over 600 meters. Very recently, CTBUH came up with another new word – “Vanity Height” - defined as “the distance between a skyscraper’s highest occupiable floor and its architectural top that does not contain a usable space. “Vanity height” is intended to put in better perspective the measurement and categorization of tall buildings involving extreme spires and other extensions, which have always been a cause for debate in the Tallest Buildings list.

Kingdom Tower of Saudi Arabia March - April 2014

One World Trade Center Philippine Construction&Design

industry report

“

We shape our buildings: thereafter they shape us.

”

---Sir Winston Churchill’

of major public transport system while minimizing the travel distance between sites of various activities. And because of the convenience of proximity, demand for more office spaces and living accommodations in prime locations continue to increase. Somehow, there appears a recognizable cycle of supply and demand; almost like a dog chasing its tail. Tall buildings proliferate to accommodate increase in urban population. Urbanization opens doors to more employment opportunities which encourage more people to flock to the cities. In turn, the need for more accommodations consequently leads to more high rise buildings.

The Risks and Challenges of Building High

However, tall buildings present complex problems. Overall, the challenge and objective is to be able to strike a balance between accommodating a large population while creating an environment that is habitable, safe, convenient, sustainable and well integrated with other public facilities and infrastructures. This is not easy because many factors come into play and cities change rapidly. Population grows rapidly while important resources diminish such as land, water, electricity and other non-renewable forms of energy among others. In the midst of these, the social and psychological impact to the occupants and the environment metamorphoses must also be significantly considered. History records incidences of high density living communities that failed in the social aspect. In the United States, the most prominent example is the Pruitt-Igoe Complex in St. Louis, Missouri built in 1954. It was a celebrated high density urban housing masterpiece of Architect Minoru Yamasaki, the same Architect who designed the World Trade Center. But in 1972, less than twenty years later, it was blown up after it became infamous for its crime, poverty and segregation and the buildings were severely vandalized beyond rehabilitation. At the onset, a building may appear successful and responsive to the objective but sustaining it as the population grows is where the real problem lies. “We shape our buildings: thereafter they shape us.” The biggest challenge however, is to be able to fully address safety concerns for high rise buildings. It is a tall order and requires the cooperation of all professionals and agencies taking part in the project - architects and planners, engineers from all fields, contractors and builders and concerned implementing agencies for building and fire safety. A small mistake in design or a lapse in judgement during construction can prove to be fatal later on.

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The Discovery Primea, now the 3rd tallest in the Philippines, stands proudly at 239 meters along Ayala Avenue, Makati Earthquake and fire pose the biggest risks to high rise buildings. In general, the higher the building, the bigger the risks. Fire risk is significantly higher in tall buildings because of the potential for more fire locations, and greater consequences of the fire itself to a greater number of occupants. Earthquakes too have greater impact on high rise buildings more than low-rise for the very obvious reason of height which makes it more vulnerable to structural failure when subjected to sustained dynamic wind and seismic motions. The risk is increased because of the bigger number of occupants to control and evacuate and the longer egress time required over limited vertical access. Earthquakes very often trigger widespread fire and collapse.

March - April 2014

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

cover story

27 Annapolis Building

27 Annapolis

Condominium A Bayswater unique concept of community living in a 45 storey high rise building By: Rizal Raoul Reyes Bayswater Realty wants to build a community in its 27 Annapolis project in Greenhills, San Juan city. The developer says the 45-storey structure is designed for families to live and relax in this high-end project that is definitely high quality and has no frills. “As a developer, we want to really build communities in our homes. We want you to have that sense of belongingness and that will make you come back, “says Andie Ngan, chief executive officer of Bayswater Realty in a recent interview with Philippine Construction and Design magazine. Ngan says Bayswater designed 27 Annapolis an active community in the Annapolis area. Further, it envisions 27 Annapolis to develop a role community in the area through the various activities they will conduct in collaboration with the owners. “The reason why we chose only to develop three-bedroom units is because we’re targeting a niche. We want to target buyers who will live there. That’s the vision of the company. We will build a way that families will leave there,” says Ngan. Emphasizing quality living, 27 Annapolis will have only have a total of 124 units designed for the class A market who are starting out or starting anew. Further, only four units will be constructed in every floor ensuring a big living space for the residents. Each unit will have a floor area of 157 square meters with a built-in kitchen and prefabricated cabinets. Prices of the lots start from P18.9 to P19 million, roughly P120, 000 per square meter. “Annapolis is competitively priced in the market because it is priced reasonably,” says Ngan. “We could have gone higher but we believe 124 is a good number. Otherwise, it gets too high and too many people will result into congestion. Further, it deviates from the vision of the company” For empty nesters, 27 Annapolis is the perfect place because it offers space for a family that does not require them to shell out a high maintenance cost. “Retirees can also fit to the 27 Annapolis lifestyle as it provides the convenience of and luxury of a condominium,” says Ngan.

32 | Philippine Construction&Design March - April 2014

“

As a developer, we want to really build communities in our homes. We want you to have that sense of belongingness and that will make you come back

”

---Andie Ngan

Ngan says Bayswater vision aims to develop “a rich variety of quality projects which evoke memorable experiences of the past, and promises of a bright future.” It also values people and will provide their personnel a healthy environment to enable them to reach their full potential Bayswater also seeks to be a responsible corporate citizen that will give back to the community where it operates for its growth and progress.

27 Annapolis Building Entrance

For the meantime, she says Bayswater will just focus on the 27 Annapolis project which is expected to be finished in 2017.

Amenities, project design and facilities Ngan says 27 Annapolis will provide the necessary amenities to ensure will achieve a high degree of satisfaction in a serene atmosphere. The amenities located on the 11th and 12th floors were thoughtfully designed. The state of the art gym is glassed enclosed on the 12th floor so that parents can enjoy their workout with stunning city views while being able to monitor their children playing in the kiddie’s swimming pool. Ngan describes the interior design of 27 Annapolis by Architect Gil Coscolluela as modern European style. The facade is also dominated by glass to minimize the heat. Parking is not a problem for the residents of 27 Annapolis because it has allotted a huge space for vehicles— three in the basement and eight in the podium level to ensure greater mobility for vehicles. Further, there is a clubhouse with several function rooms to enable members to conduct their social activities. A buffet

Amenity bar is also located on the ground floor for residents who want to relax and unwind. One of the noticeable elements in the design of 27 Annapolis is an owner has the option to convert the extra bathroom to a walk-in closet when it’s not being used. To avoid clutter in the apartment, an owner can bring down his extra stuff like golf set to the basement parking for storage. Since it has only four units in every floor, all residents will have their apartments located in corner lots. “Being a prime spot, they will have an obstructed view of the area of the surrounding areas,” says Ngan. It would be a different scenario when you buy in a typical condominium developer as buying corner lots are

always hotly contested which deprives other buyers of good viewing. The land area of 27 Annapolis is approximately 1,130 square meters and has 30X40 meters. The building has 2.5 meters of deep rough foundation. The type of soil in the area is adobe. Excavation has already reached 135 meters deep from 0.0 elevations. To ensure a solid foundation, the contractor performed rock anchoring and soil millings on the soil.

Partners

William Coscolluela, one of the stalwarts of Philippine architecture, is the chief architect of 27 Annapolis and founded W.V. Coscolluela & Associates (WVCA) in 1957. WVCA has made its mark in Philippine

March - April 2014

Philippine Construction&Design

cover story

“

Being a prime spot, they will have an unobstructed view of the of the surrounding areas

”

---Andie Ngan

architecture by designing several local projects in commercial/industrial and mixeduse developments, as well as residential, educational and residential projects. In the corporate sector, WVCA has designed the Zuellig Building, Unilab Corporate Center, Philam Life Tower, JG Summit, Robinson’s Tower, World Center and the Orient Center. Other projects done by WVCA were SM Aura, SM Seaside Cebu, Orchard Golf and Country Club, Joya Lofts and Towers, Regent Parkway, Iloilo Convention Center and Toyota School of Technology. WVCA also worked as design consultant in overseas projects in Guam, Malaysia, Singapore, Taipei, Saipan and China. Further Architect Coscolluela is leading the company to pursue the green agenda by environmentally-sound ideas and practices as exemplified by the Zuellig project. Design Coordinates, Inc. (DCI) is the project engineering firm of 27 Annapolis. Among the completed projects of the company are Ayala Center-Cebu, Ali Mall, CATS Motors, Inc, Honda Cars Alabang,

Ground Break Capsule

Honda Cars Cebu, Edsa Central major shop renovation, Puregold Pandacan, Shopwise, UST multi-deck carpark, SMX exhibition and conference center, Government Service Insurance System head office, Supreme Court building, Commission on Population regional complexes, among others. It provides project management, cost management, schedule management, quality management and contract management. R.S Caparros Associates and Company (RSCA) is the structural engineer of 27 Annapolis. Established in 1972, RSCA provides comprehensive professional engineering services to local and foreign clients covering industrial, commercial and residential projects. The company’s design and construction management group is composed of architects, engineers, project managers, construction managers, site engineers, and specification writers. RSCA deploys cutting-edge information communications technology to provide quick, cost-effective and economic solutions as well as innovative designs to each specific requirement. Projects handled by RSCA include BTTC Centre, Gem Tin Building, Insular Life Building, Robinson’s Galleria Mall, EDSA Central, Santa Lucia Residenza, National Bookstore Superbranch and Makati Supermart. Ngan speaks highly of the team behind the construction of 27 Annapolis. “We’ve really got a strong team. It’s really quite an

honor because this team is quite well known and reputable in the industry,” says Ngan. “We are also privileged they have partnered with us. They are responsible to make our vision come true,” adds Ngan. Ngan says the dedication of Architect Coscolluela is amazing as he regularly checks the status of the project. “He’s very hands-on with the project by conducting weekly meetings,” says Ngan. Architect Coscolluela is supported by his son Gil who is the designer of the common areas. RSCA, according to Ngan, has developed a conservative and stable structural design for 27 Annapolis. “They assured us that the parameters of the design are aligned with Zone 4 calamity international standards which include Japan and San Francisco,” says Ngan. “With only having four units per floor, it’s very, very safe on the design side,” adds Ngan. On the project management side, she says DCI has a wide experience in handling mega projects in the country. “DCI has an excellent track record in project management in the Philippines,” says Ngan.

For more information

on Bayswater Realty and 27 Annapolis, inquiries can be made through their website at www.27annapolis.com , or via e-mail at inquire@bayswater-realty.com.

L-R: Mr. Eric Ngan, Engr. Romeo Caparros (RSCA), Mr. Franz Ziebert (DCI), Arch. William Coscolluela (WVCA), Mr. Jose Oscar Salvacion (DCI), Mr. KC Tan, Ms. Andie Ngan, and Mr. Kirby Quintal.

34 | Philippine Construction&Design March - April 2014

March - April 2014

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

Interview with BasicmacAcoustics’ Chairman Mr. Jose Aguado

KISSING ECHOES GOODBYE We may not realize it, but of all our senses, only one is incessantly being barraged or assaulted, incredibly much more than the rest. Our sense of hearing. That’s because like it or not, there’s no escaping a cacophony of sounds in our daily lives. Think about it. While it may not be so bad at night, the pleasures of our waking hours are considerably diminished by auditory abuse, continuous or frequent. In the privacy of our homes, the roar of motor vehicles revving, running or honking; a neighbour’s blaring TV; perhaps the incessant whirr of an aircon. In the corporate world, we put up with meetings in function rooms that have not been sound-proofed; animated discussions; loud mouths; or even vibrating generators. What about the time you tried an intimate cozy restaurant only to shout your wedding proposal in order to be heard? Or that church service you’d gone to and couldn’t understand a word coming out from the loudspeakers? Philippine Construction and Design recently interviewed Mr. Jose R. Aguado at the Basic Machinery & Acoustics Corporation office on the Ground Floor of Makati Cinema Square Tower. The soft-spoken and acknowledged guru of Acoustics and Chairman of BasicmacAcoustics -- the country’s first and leading exponent of exceptional acoustics and sound conditioning since 1986 -- touched on at least two reasons for this daily circus of sounds that greatly disturb our sense of hearing, even our sanity. “For one, our good friends, like architects and building engineers, take Acoustics for granted and do not factor this element in their design,” Mr Aguado categorically stated. He explained that this is one of the reasons why the majority of their clients come to them only after the building’s finished. The second reason is the complacency of clients who take their time before approaching them and asking for their help. “It’s either they do not mind what’s wrong with the acoustics of their brand new building or they are simply in denial that something has to be done about it. So they wait and wait,” he added.

This is what happened, for instance, when a prospective client came to them 3 years after their building was finished and complained that their university gym had the problem of too many echoes.

36 | Philippine Construction&Design March - April 2014

Before he told us about the story, Joe as Mr Aguado prefers to be called, first gave us a good background on the intricacies of the picture. He explained that generally, today’s gyms tend to be multifunctional, having diverse uses which range from sporting events to student assemblies. Most gyms therefore double up as auditoriums. Strictly speaking though, acoustical requirements for the two are far from the same. As a rule, Gymnasiums require some level of acoustical “liveliness” while the priority for Auditoriums is speech intelligibility. Since the prospective client’s complaint was “too much echo”, Joe and his BasicmacAcoustics team concluded that theirs must be a multifunctional Gym, hence the acoustical issue to be addressed would be its Reverberation Time.Thus the exciting story of the “rebirth” of the University of Sto. Tomas Gym began. “It’s been 3 years and we couldn’t use the gym properly for anything because it has very high echo,” the University officer in charge of the project, lamented.His major complaint revolved around large gatherings like graduation ceremonies when the audience had to make do with poor speech intelligibility. The BasicmacAcoustics team proceeded to work on the large space of the 6,000 seater UST Gym. First, they conducted reverb time tests based on International Standards – ASTM (American Society for Testing & Materials). (Interestingly, Joe mentioned that the Philippines is the only country in Asia using US standards, the rest use British.) When they measured the gym’s existing acoustic environment,

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reverb time was 7.5 seconds! No wonder speech intelligibility was so poor. Joe explained that worldwide studies suggest 0.6 to 2.0 seconds as the optimum range for good speech intelligibility, depending on the dimensions of the room. For some “liveliness” in gyms or sporting arenas, up to 2.8 seconds is preferred, while the optimum range for a “live space” such as auditoriums should ideally have an average of 1.4 to 2.6 seconds, again depending on the dimensions of the room. Hence a compromise is sometimes required to satisfy both gym and auditorium acoustical requirements. Under such circumstances, Joe and his team set the target from 7.5 seconds to 1.7 and it took them approximately two and a half months to accomplish that objective. Tests conducted after completion of the job showed speech intelligibility at its best, leaving both Client and the BasicmacAcoustics team happy with their sound decisions. Too many echoes resulting in speech

intelligibility problems was also the concern of the Jesuits in Sacred Heart Church, Cebu City, 3 years ago. “The church was already 20 years old before they called us to help,” Mr Aguado narrated. Prior to that, they had a 5-year off-and-on dialogue with BasicmacAcoustic’s Consultant Dar Quintos, Acoustics/Audio Engineer and well-respected Acoustics guru. During that entire period, the Members of the Board, predominantly women, couldn’t believe that BasicmacAcoustics could reduce the echo. “It was a very challenging job as the church was 40-45 meters high, completely made of concrete and the average reverberation time was 8.5 seconds,” Engr. Quintos added, with his signature disarming smile. No wonder they talked about people complaining they couldn’t understand a word of what the priests were saying. Great sermons pathetically falling on “deaf” ears. Given the volume and the height of the church, plus the fact that they couldn’t do work everyday because of the spaces being used, i.e. Mass schedules and other church activities like weddings, etc., it took BasicmacAcoustics 4 months to install acoustical materials on the inner surface of the church all the way to the top. The goal was set at a maximum of 2.5 seconds but tests conducted after completion of the job showed a much better 1.7 average reverb time, exceeding expectations. Even without the tests, client could literally experience the beauty and clarity, the superior quality of speech intelligibility. They commented that even with the old sound system, they enjoyed the vast improvement in sound quality. The happy Client gave BasicMacAcoustics another job: the Sacred Heart Cebu Gym. Towards the end of our interesting interview on doing away with echoes, Mr Jose Aguado revealed that they just completed “a challenging, mentally stimulating and emotionally rewarding highend job that will considerably raise the bar and forever change the face of movie theatres in the country.” As he walked us towards the door, he said he’d like to wish, through this magazine, a happy 2014 to everyone in the construction industry, and that the best is yet to come.

March - April 2014

Philippine Construction&Design

SUPPLIER’S PROFILE

Occidental Glass and Aluminum execs think big for bigger market Young blood sets historic glass and aluminum pioneer firm in challenging new directions By Ed Velasco

luminum and glass are undoubtedly the most commonly used materials besides steel, and concrete, used in modern multi story buildings. Every structure needs glass and aluminum for various purposes. From windows to doors, both materials are widely used, with demand rising especially now that the Philippine construction industry is booming. The high demand for glass and aluminum is the dream market for Occidental Glass and Aluminum Supply as its third generation executives take on management of this old venerable firm. Two years ago, Roel Eden, the current owner, began his no-nonsense reforms at the company he inherited from his father. Eden, 39, is the third owner of the firm that started during the Second World War, in Negros Occidental, in 1942. The firm was and still is, as its name literally suggest, in the business of supplying glass and aluminum used for whatever purpose

Roel B. Eden

Sliding, Awning and Casement Window the client wants or needs Occidental Glass is part of the country’s history. Three years before World War II begun it was doing modest business in Negros. After the war, it transferred to the nearby island of Cebu City. In 1963, it again transferred to Pasig, when it was then part of Rizal province. It then again moved its premises to its current location in C. Raymundo Ave. in Sagad Pasig after its shop in Mabini St., Kapasigan was razed by fire in 1988. The company has naturally grown over the years and currently has 12 full time employees Clients go to their shop to request estimates of how much glass and aluminum they require for their building, shop, or other needs. That was the retail type business which Eden wants to improve on to make the firm better known to the entire country. Except that besides accepting only retail orders, Eden is now concentrating

38 | Philippine Construction&Design March - April 2014

to become a distributor of other high tech products like Yale, Stanley, GMT, Estron, Ryobi and Dorma in addition to engaging in wholesaling of glass and aluminum and contracting firms for maintenance of doors. The glass and aluminum they supply include these needed for kiosks, cabinets, partitions, store front display, aquariums, table glass, decorative mirrors, glass doors, framed doors, cashier counters, glass shelves, acrylic glass, frosted glass and tempered glass.

Now on top 10

“As of the moment we can say that we are now at the top 10 in Pasig in this business when it comes to number of customers and we’re trying our best to get more,” Eden told Philippine Construction and Design in a recent interview. Under his leadership, the firm is able to supply all the needs of the market. Eden

not supervises management and production but also goes out to the field to find new clients. He wants to widen their market not just homes and medium sized firms but also hotels, groceries and department stores. He is confident of the market being positive particularly with the distributorship of Stanley floor hinges. “That will follow. What matters today

Rockwell, Renaissance Tower, East Ortigas Mansions, Richmonde Plaza and Meralco.

4x of original output

Eden is proud of the company’s growth. This is about four times bigger when his father was still leading the firm. The increase in orders from factories was the result of Eden’s go-getter attitude. He

Medium sized structures. “If the owner wants to save lighting costs, then he can use spider-type,” according to him. This glass type has metals imbedded that protect it collapsing in times of quake. He corrected misconceptions that this type of glass is easier to collapse. What excites me is the multitude of possibilities of new projects. NEW meaning, projects that we haven’t even done before, such as Automatic Doors in Malls. The best brands usually rages from 1M to 4M depending on the sizes and specification. Distribution of Stanley Patch Fitting systems. For those Stanley only recently ventured into this product, it is exciting to push for a brand that has been a household name especially in the construction industry.

Smuggling a big headache

Glass Wall Cladding

Display Casement

Store Front

Glass Partition

is acquiring more customers, particularly bigger jobs and bigger customers, for us to serve their glass needs,” he said. The unorthodox style of managing the firm proved beneficial for Eden as it didn’t just increase their market size in terms of number of customers but also the size of customers and customer orders. Very recently, Eden was called by MONOLITH, which is the construction firm in charge of building Shangri-La in the Fort to do estimate of their glass supply “I was pleasantly surprised because we appeared on their radar (shortlist of suppliers)”. However, this is not the first time that a Triple-A firm has called him. Since he began to seek and acquire big clients, some of the most prestigious establishments in the country that became customers include San Miguel Warehouse in Pasig, Unilab, Home Depot, Jollibee Center, PNB, SM Sea Residences,

entered into wholesaling which dramatically increased company sales volume. “There’s no practical limit to how much work we can undertake. Let the orders come in and we’re here to fill them,” he affirmed. According to Eden, the boom in construction industry is not only good for his business but for the entire country as well. He said that many factories producing glass in the country are now being noticed due to its good quality. The glasses for doors, panels, windows and even façade that come from the Philippines are so good that these are now comparable with those manufactured in Singapore and Australia. He is proud to say that his firm can supply almost all types of glass, except the bulletproof and spider-type. There is a bullet resistant glass locally (Eden just found out recently). Spider Systems are popularly used in Tall and

The entry of China-made glass and aluminum is the biggest problem facing the glass and aluminum industry of the country. Some unscrupulous businessmen are buying these using consignees. “There’s no way to detect these,” he said. We have built glass wall cladding for three SM Hypermarket branches. The Entry to the higher echelon of clients doesn’t mean that Occidental will be abandoning the small and medium clients they used to serve when they started 72 years ago. “We are part of history and we don’t want that niche in history be replaced by the tide of the time. But as business we need to grow. Growing doesn’t mean abandoning your old clients. I grew up with many of our clients,” the owner said. Some of the illustrious individual clients they have served (and still serving many of them until now) include ex-Senate president Jovito Salonga, the late Ishmael Mathay and Frank Chavez and the half brother of former president Ferdinad Marcos. Among these clients, Eden said it was Salonga who was very keen on details. “A bar topnotcher and many times Senate president, Salonga was one customer you could not afford to lack in alertness when in front of him, you needed to be be sharp and knowledgeable to be able to reply to his questions,” he said. Occidental has supplied glass and aluminum to almost all the posh villages in Pasig, Makati and Quezon City: Valle Verde, Greenmeadows, Tiera Purra, Forbes Park, Dasmarinas Village and San Lorenzo Village. But under Eden’s term, he wants the firm to enter the big, high end business because he believes in the old adage that there’s no way to go but up. “This business is me. There’s no stopping until you get your aim,” he said. Asked what timetable he gives himself to reach his goal: “The market is the timetable. That’s why I go out of the office because the business is outside.”

March - April 2014

Philippine Construction&Design

SUPPLIER’S PROFILE

HOLZ Coatings International:

A Budding Waterproofing and Painting Company in the Philippines By Choy S. Gaerlan

Mr. Jonathan Morales in his office Stunning color aesthetics, subtle hue combinations, and modern surface texture treatments—these are design elements today that quickly catch attention when we check out edifice quality. They are all resultant miracles that masterful waterproofing and coating create. And among key factors in these is doing it right the first time. In fact, this is the work philosophy that guides Holz Coatings International in all its successful project ventures in the country, contracting major waterproofing and painting jobs with mega companies. The lesser the incidence of back jobs, the better for client satisfaction, costing, and your company image. Jonathan Morales, general manager of Holz Coatings, stressed this out in an interview. “It’s not that zero rejects or zero back jobs are possible all the time,” the young-looking Holz executive clarified. “There will be slight imperfections now and then that need retouching or redoing the second time around. But the point is to always aim at doing it right the first time.” That work philosophy has always minimized problems in the field. In the interview at his compact but highly efficient office in Piscor Compound, an industrial estate along

Amang Rodriguez Avenue in Manggahan, Pasig City, Morales confidently placed his company among top 10 suppliers of quality imported floor coating materials.

Distributor of World Class Industrial Coating Products

Together with his long-time buddy, Raymond Reyes, Holz sales and technical manager, Morales decided to distribute industrial coating and related products from top sources in Europe, Asia, and the US in 2006. At the time, they were already handling 10 regular furniture companies in the country. Later, a door of opportunity was opened in the Visayas through a good client, Vimel Tabinas, who is now head of Holz Cebu servicing Cebu Shamrock MDC Ayala, among other companies. Cebu Holz is currently manned by 4 office staff. Hard work and high company standards finally paid off. More companies gradually became regular clients after a foretaste of Holz quality. And no wonder: among the company’s guiding principles is to provide clients with only the best products and services in the most practical, costeffective way possible. Using the world’s best products increased the chances of doing

40 | Philippine Construction&Design March - April 2014

things right the first time. Thus, Morales underscored, Holz chooses materials in terms of “performance, efficiency, and costeffectiveness.” Armed with nothing but the best resources in the world, the company now successfully engages in contractcoating, zeroing in on industrial flooring, anti-rust and corrosion, waterproofing of various building materials, and wood finishing. How successful is the business so far? The enterprising general manager was a bit hesitant to disclose sales figures, preferring to stay low-profile in this area, but allowed a preview of the company’s budding sales strength by confirming that in industrial flooring alone, their typical project engagement is measured not by the hundreds but in thousands of square meters of floor space, which is not bad for a 7-year old company by industry standards. This is not to mention the smaller projects they have and the residential ventures they handle periodically, as their hectic schedules allow.

Major Clients

Holz list of major clients provide a further glimpse into its sales and output profile. For instance, it services majority of the facilities of the largest shopping mall and retail operator in the Philippines, most recently, the newly-opened malls in Sucat, Paranaque and Dasmarinas, Cavite. Its roster of major clients likewise includes the third largest shopping mall retailer in the Philippines, large enterprises in the economic zones, significant players in the oil and gas industry, and a collection of reputable names in the various vertical industries. Moreover, merely looking at the long list of work schedules on its office bulletin board—numbering some 32 items that day of the interview—is enough to impress one of its massive daily output. Indeed, Holz is a potential company to reckon with in the industry of waterproofing and coat painting, considering its aggressive mindset and posture envisioning itself as the foremost respected and reliable coating and applicator company in the country 5 years hence. From an initial capitalization of P2 million in 2006, the company has steadily

This proves cost-effective in the end because it considerably reduces, if not eliminates, incidences of back jobs. Some may cut down on expenses in favor of immediate profits or else reflect low bidding costs using sub-standard materials, to the detriment of quality, not realizing the bigger cost it entails eventually. —Jonathan Morales progressed to where Morales can say that it is adequately capitalized for the kind of growth that they are envisioning. With the current environment of opportunities, and a prudent management of company resources, one can safely say that the company can only continue with the current growth trajectory. This possibility can be glimpsed immediately from the quality products and services they offer.

Main Products and Services

Holz specializes in waterproofing products applied after a special pretreatment of surfaces for maximized results and then multi-coating on the same. Often, several layers of primer applications are done before the final multi-coating stages are applied to effect the doing-it-right-thefirst-time work philosophy. Morales hinted at sometimes going over the allocated budget for a project just to hit the desired final coating output. Morales averred: “This proves cost-effective in the end because it considerably reduces, if not eliminates, incidences of back jobs. Some may cut down on expenses in favor of immediate profits or else reflect low bidding costs using sub-standard materials, to the detriment of quality, not realizing the bigger cost it entails eventually.” Waterproofing and coating are applicable for various materials like wood, steel, or concrete.

Reyes, technical manager and also a licensed chemist, put it this way: “How do you finish 6 hectares of floor coating in 3 months when the industry comfortable standard is about 1 hectare in 30 days? Then add to that weather conditions.” He added that rain or shine, the show must go on. And how about doing gargantuan flooring jobs while the areas involved remain being used for business as usual? You have to come up with a feasible strategy how to overcome almost impossible obstacles to meet client expectation. Hence, Morales’ life and career philosophy: “Work smart, play hard,” he remarked matter-of-factly when asked about it. “Aside from enjoying your work like play, you have to be seriously smart about everything,” especially scheduling project duration.

Single-Minded Company Authors

Holz has come a long way and made stimulating progress that one wonders who the people behind its present success are. The Holz idea was birthed when Morales and Reyes decided to work together to start a waterproofing company dealing in coat contracting, plus exporting and importing relevant products. They first started selling Polycure products from Malaysia to local furniture manufacturers and wood working companies. In fact, since they’re forte initially worked along the lines of wood businesses, they had named the company “Holz,” which in German means wood. Then their connections grew, owing largely to their good reputations among erstwhile customers as reliable coating consultants prior to Holz. And anyway, Morales had already been initiated deep in the rudiments of wood coatings, being a former part-owner of a European wood coating company. Reyes, on the other hand, had been chemist for Fuller Obrian which dealt in coat contracting works. Moreover, Morales’ earlier stint with

the Swedish Becker Acroma as a young 27-year-old, business development manager in 2000 proved crucial, and this was further reinforced when he became general manager of Becker Acroma, Philippines in 2004. “It was during my training days at Becker that I learned a higher level of professionalism,” he fondly recalled. Morales and Reyes, La Salle industrial engineering graduate and FEU BS Chemistry graduate, respectively, became the dynamic duo that propelled Holz to its present industry stature. It now has a total of 22 full-time office staff [18 in its Pasig office] and somewhere about 120 to 250 field contractual workers. Morales and Reyes are proud to show off their recent investments, believing that a company should update and invest on equipment to better serve clients and cut labor cost. They have purchased several Shot-Blasting Machine units and Airless Spray Pumps with dust collectors. The former is for quick floor blasting treatments prior to coating, the latter for containing dust particles derived from shot-blasting to enable work areas to be used by employees even during the height of shot-blasting. On top of everything, only Holz offers a 5-year guaranty on all its works, which is a first in the industry. Other companies offer 3 years. This undoubtedly boosts the company’s image as among foremost companies in weatherproofing and coating.

Playing Hard after Thinking Smart

For leisurely hobbies and to periodically get away from all the think-smart bustles, Morales and Reyes find relaxation in firing, mountain biking, traveling, and enjoying resorts and beaches. Morales especially goes for resorts and beaches with his wife Hazel and their only son. Morales’ clan finds its roots in Pampanga, where his parents where into trucking and garments, but he considers himself a native of Pasig.

Challenges in the Business

Both Morales and Reyes confidently assert that every challenge is met adequately as long as the company focuses on fulfilling customer expectation, the time factor, cost, and a keen eye for quality—which are really Holz’s guiding principles. However, the time factor is of the essence among the four. You hit it and it hits the 3 others for you automatically. And it’s not just about speeding up projects to finish them pronto. It’s about smart time budgeting and planning. March - April 2014

Philippine Construction&Design

http://www.fundsforngos.org/wp-content/uploads/budget_1.jpg

Sales and marketing management

The critical importance of project cost control management In practically all fields on human endeavor cost is prime importance. This is especially true in planning and execution of construction projects. With prices quickly changing due to rapid escalation of the prices of materials in todayâ&#x20AC;&#x2122;s market the proper management of cost is indeed critical. The costs of materials, equipment and labor need to be closely considered from conception of the project up to its occupation and use. What is Cost Construction Management and what does it cover?

The establishment of realistic capital costs of a construction project is one definition of Construction Cost Management. It involves detailed cost planning and cost control services. This ensures that bidding and documentation are completed within preagreed cost of work and that the work is performed in the most economical manner in agreement with requirements of the program. A Quantity Surveyor or professional Cost Control Manager, that is unbiased and independent, is needed to protect the financial interests of the owner throughout the duration of the contract. The Quantity Surveyor or Cost Control Manager in the application of scientific principles and techniques, with engineering experience and judgment, is able to establish the best method of action in regards to estimation of cost, cost control and the profitability of the

42 | Philippine Construction&Designâ&#x20AC;&#x192; March - April 2014

project. The Cost Manager makes sure that the design is within the budget objectives of the project and able to meet quality and performance goals established. The success of the design and construction team, as in all teams, depends on skill and cooperation and the Cost Control Manager or Quantity Surveyor is a very important part of that team. The training and experience of the Cost Control Manager in the field of construction costs combines the function of an estimator, accountant and economist. The Cost Control Managerâ&#x20AC;&#x2122;s specific focus on the management of construction cost brings added value to the construction team. When owners start a building program they are making a major investment in an unknown quantity. Past experience has proved that projects that employed the services of Cost Control Managers or Quantity Surveyors as part of the

Services offered

The full advantage of having a Cost Control Manager or Quantity Surveyor is best appreciated if that person is part of the Design Team and thus able to give advice of costs on a continuing basis. Services enumerated below are at the specific stages of the work process and listed for reference: Feasibility Studies. Analysis of construction costs, operating costs, maintenance costs, costs of site servicing and cash flow are some of the costing studies that are covered during the feasibility studies. Such studies will also cover analysis of return of investments, profitability, financing arrangements and revenue forecast, and market analysis. Cost Control Managers or Quantity Surveyors are able to prepare for institutional, public, and large commercial projects analysis of budget needed, suggest building size within the budget and prepare cost studies including analysis of preparation

costs, maintenance and operating costs. Viability Analysis. The Cost Control Manager or Quantity Surveyor is able to advice clients at the very early part of deliberations, which is during the consideration of the viability of the project before its design. Based on past experience and recorded cost data, an estimate of the probable cost of the project based on its known requirements can be established. This enables the client to assess the project’s feasibility and estimate a tentative budget. This early estimate of cost involves a few assumptions on the project of its nature and construction. Design Solutions. Alternative analytical studies can be prepared by the Cost Control Manager or Quantity Surveyor, based on drawings that show the approximate shape of the proposed structure together with an outline of its specifications, on a number of design solutions. Normally three alternative solutions are prepared for costing. At this stage the cost study will allow the client to decide on the potential building shape and size, kind of construction materials, and on possible service systems. Development of Design. After a basic design has been selected, preliminary drawings are then prepared and from the preliminary drawings an estimate of the cost of each functional element of the project is developed as well as its relationship to the whole. All other following cost estimates and other fiscal changes is related to this first benchmark. The client is then able to assess the economic potential of the entire project as well as its various parts. Together with the designer, changes to the design may be made with the full

knowledge of its effect to the original budget.

Documents

Once the contract documents (i.e. General Conditions, Specifications, and Working Drawings) are practically completed, the Cost Control Manager or the Quantity Surveyor is able to reevaluate the work and prepare a final estimate. At this stage an overall review allows for last minute changes in market conditions during the bidding period is taken into account. The expertise of the Cost Control Manager or Quantity Surveyor provides a special awareness on the implications of the different methods of selecting the contractor and of the differing types of building contracts. The final estimate’s cost distribution can be rearranged to be able to make direct comparison with the price breakdown requested in bid documents by successful bidder and from which progress payments are based.

Bidding Package

The Cost Control Manager or Quantity Surveyor should be informed of any and all changes during the preparation of the bidding package from the documents prepared for the pre-bid update. Since final details and any changes therein can alter costs significantly, the Cost Control Manager or Quantity Surveyor can then consider these changes and advise the client and the design team to enable them to take the appropriate action. It is possible to avoid costly and time consuming process of redesign and reviewing construction projects by hiring independent and unbiased professional Cost Control Consultants and Quantity Surveyors. These professionals are able to oversee the financial cost of the project from the start to the completion of the project. Based on article by John Dunkerley, FRICS, PQS. PinnacleOne

www.spug.ph

construction management team from start to the end of the project will usually maximize return on investment. Though the facility maybe broadly defined in terms of its function and size there could be other important issues that need attention like: a) What is the length of time and effectively will serve its purpose?, b) Is the facility financially viable?, c) How well will it serve its users and the community? and d) How does it reflect the owner’s image? The Cost Control Manager initially sets up the program budget or confirms a previous established budget. Then as the design process progresses through its different stages, basic cost estimates are prepared by the Cost Control Manager or Quantity Surveyor. This basic cost estimates are used to report any changes in the anticipated cost. Allowances for additions or deletions to the design are made while the original program budget is maintained. The pre-bid estimate is used to evaluate bids submitted. The Cost Control Manager or Quantity Surveyor serves as advisor or technical manager. The judgment and services as of the Cost Control Manager will determine to a large degree the financial success of the project. The Cost Control Manager is thus a key member and major contributor to the Design Team. Choosing a Cost Control Manager should be done with due care. It should not be done casually or in an offhand manner. The Cost Control Manager selected should be one with the training, experience, capabilities and interests that fit best with project requirements and one that is able to work well with the Design Team.

March - April 2014

Philippine Construction&Design

RISK MANAGEMENT

Understanding Construction Insurance To avoid potential financial ruin in the dangerous world of construction owners, contractors, architects and construction professionals need to have better understanding of insurance and their responsibilities

roject sites are one of the most dangerous work places in the world and it is expected that accidents will happen. Serious property damage, personal injury to workers and others can cause financial ruin to owners or contractors unless insurance covers this awesome responsibility. Construction professionals need to be knowledgeable about insurance to be able to better administer construction contracts, or write their project specifications. Informed, they are better able to advise clients to seek information from insurance professionals. They need to be familiar with AIA General Conditions particularly on insurance and bonds (Article 11). The 24 paragraphs therein contain information on the different forms of insurance that owner and contractor require. Construction contracts are prepared by owners and contractors with the understanding that they have a mutual obligation to share responsibility for potential financial losses due to accidents and other calamities and need to share that responsibility by having insurance to cover some of the risks. Construction contracts define responsibilities of both the owner and contractor and insurance is an important part of that contract. It is of

such importance that 10% of the text of the AIA General Conditions is on this complex, inscrutable and arcane subject. In 1997 the AIA General Conditions were extensively revised with the insurance portions meticulously considered, rewritten, and edited by construction industry legal and insurance experts. This was done in consultation with architects who were highly respected in their field and outstanding in construction administration and documentation. Though construction professionals are not required to be insurance experts they, however, need to be able to understand enough to be able to deal with the insurance requirements of construction contracts and their administration. Insurance requirements are stated in the AIA General Conditions with the Supplementary Conditions prepared by the architect to cover the specific insurance coverage for the project The AIA General Conditions specify the insurance requirements in broad general terms however the Supplementary Conditions are written by the architect. These cover the specific insurance coverage needed for the project, what interests were to be insured, limits of the policy, risks to be insured against, contract term of the policy, and the deductible amount.

44 | Philippine Construction&Designâ&#x20AC;&#x192; March - April 2014

Architects, engineers and other construction professionals who provide insurance advice to clients are on risky grounds. In fact a number of professional liability insurance policies make a point of excluding coverage to construction professionals who foolishly provide insurance advice. Construction professionals are to respectfully decline when asked by owners for insurance advice. In cases where an owner followed erroneous insurance advice and sustained damage and losses, the construction professional providing erroneous advice could be held responsible for the loss and damage. Owners are to provide all legal, accounting, and insurance service needed for the project, according to the AIA Owner-Architect Agreement, revised in 1997. This means that architects and other construction professionals are to secure all insurance requirements from the owner. Since owners are not insurance experts they will in turn need to refer to their legal and insurance advisors. The AIA has provided a convenient form called Ownerâ&#x20AC;&#x2122;s Instructions Regarding the Insurance Contract, Insurance Bonds, and Bidding Procedures, 1987 Edition. This form is a nine page questionnaire which the architect or other construction professionals can present to clients.

This form can then be used by the owner’s insurance advisor to instruct the architect and construction professionals as to the owner’s insurance and bond requirements. Thus the architect is able to prepare the insurance specification in the Supplementary Conditions in accordance with provided instructions. Owners and contractors need to be provided with evidence of insurance certificates. These are provided free of charge by insurance companies, agents and brokers upon request. Contractor’s insurance certificates are to be addressed to owners whereas copies of the owner’s property insurance are addressed to the contractor. An important part of these certificates is the statement that the policies cannot be cancelled nor allowed to expire without thirty days notice given to owners and contractors. The AIA General Conditions require that all communications between owners and contractors have to go through the architect or construction professional concerned. Thus all communications, including insurance certificates, bonds, etc., are to be transmitted to the owner from contractor, or vice versa, through the offices of architect or construction professional. The architect or construction professional shall not comment on

adequacy or conditions of coverage and the covering letter shall be limited to the inventory of enclosures. Any advice is to be limited to informing clients to seek professional or legal advice concerning insurance coverage. It is essential to remember that all insurance and bonds need to be in force prior to any construction work at the job site inasmuch as insurance companies and surety firms are normally reluctant to issue coverage once construction has begun. Liability insurance is required for both owner and contractor with owner required to carry property insurance. Should the owner not have secured property insurance the contractor shall secure the same and charge costs to the owner. The owner may, according to a new 1997 proviso, require the contractor to purchase a Project Management Protective Liability insurance that covers the architect’s and other construction professionals’ liabilities. The owner will pay for this insurance. In case an insured event happens, insurance claims are to be made by the owner or contractor. Such claims are made

through its insurance broker. Owners and contractor shall administer its own claims though the architect or construction professional may be requested to provide relevant information. Owner and contractor will provide their own legal or insurance counsels for needed insurance advice. Architects and construction professionals should insure all its current business risks with general liability insurance, as well as car, fire, and valuable papers insurance. They might also have life and health insurance for key executives and staff. Employees should also be covered by workers compensation insurance. They should also have professional liability insurance. Friendly insurance brokers who can provide reliable insurance information are a valuable asset and cultivated through regular and continuing relationship. Construction bonds for contractors are the prerogative of the owner and its advantages and disadvantages to be discussed with its insurance and legal advisers. Some contractors, usually through lack of financial resources are not able secure bonds. Based on an article by Arthur O’Leary, FAIA, MRIAI

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March - April 2014

Philippine Construction&Design

PRODUCTS & TECHNOLOGY

PP-R PIPES AND FITTINGS For Hot and Cold Water

Advantages: • Resistant to corrosion • Leak Proof • For hot and cold Water • Can be connected to any other material used in existing installations • Easy installation • High Impact strength and flexibility PP-R Pipes and Fittings Manufacutured by Tanay Industries Corp. For more information contact LYS Marketing Corporation with Telephone No.: (632) 4122452; 4127155

DTC Read and Erase Live Sensor Data Flight Recording Advanced Function, Programming, and Coding Touch-screen, hand-held scan tool that allows for fast and simple access to advanced diagnostic functions. It also provides OEM level diagnostics for all Asian manufactures as well as excellent coverage for European and American manufactures. This kit includes the G-Scan scan tool and all necessary cables, connections and adapters. The best multibrand diagnostic tool for Asian cars, OEM coverage on Asian vehicles, very competitive on Europeans and domestic cars. For more information call Central Diesel at 4113711 to 13 or visit www.centraldiesel.com.ph

Manhole Covers

Features: Bearing and Load Standard: • Anti-Theft Grade Mark Testing Load (KN) • Light weight/low installation cost Light Weight E 20 • Corrosion/Fire Resistant Normal Weight F 100 • Very Low noise on Impact payload Heavy Weight G 240 • Many colors available Extra Heavy Weight H 360 Application: All manholes for underground transmission line, telephone cable lines and sewage drainage pipe line. For more information contact D.B. International Sales & Services, Inc. at 3447420 or visit www.dbiphil.com

SEDNA AIRE Uses the Solar Absorption System to achieve a significant reduction in energy consumption. With the use of Solar Absorption System, Sedna Aire is designed to carry full air-conditioning load especially during sunny periods. It utilizes Solar Vacuum Tube Collectors in absorbing heat energy from the sun which is in turn used to displace electricity used in the cooling process. Although it still requires electricity to pump the refrigerant, the amount of power used is minimal compared to that consumed by a compressor in a conventional electric air-conditioner. Sedna Aire, being a low electricity consuming air-conditioning unit, significantly reduces the harmful carbon (CO2) emission, a major cause of global climate change. It also uses the most ozone friendly refrigerant of today, R410, the refrigerant that will replace the most commonly used R22 of conventional aircon units by the year 2010. Our product is CE, UL, CSA, NATL/C certified and duly exempted by DOE to PNS 395-1:1995, obtaining the highest EER of 26. Savings, as spelled by this product, helps us realize a return on investment in 3 years or less, a benefit no other brands can provide. For more information call Edward Marcs Tel Nos.: (Manila) 9221371; 9221658 (Cebu) 6332.238-1972; (Davao) 6382.2962907 visit www.edwadmarcsphilinc.com

46 | Philippine Construction&Design March - April 2014

Combi-Blinds

Making a buzz in the interior home furnishing industry Combi-Blinds also known as Combi Double Shades is beautifully designed with alternating strips that can be adjusted to control the right amount of light you want to have in your interiors. Adding a touch of modern class and elegance, the Combi Shades are perfect for the modern homes and commercial spaces of today. Usually made of polyester fabric, the Combi Blinds are easy to clean and maintain making more and more homes and even commercial spaces switch from the conventional Draperies and Curtains. With various of available colors and textures and patterns, there's no reason not to love the trending Combi Blinds! For more information call. 4213641 | 4383825 e-mail: citicarpet@yahoo.com.ph or visit http:// citicarpet.webs.com.

9100 system DTM Epoxy Mastic

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 Tel. No.: (+632) 6425022; (+632) 5702491 e-mail: holz@ holzcoatings.com, visit www.holzcoat.com

Tokina® 3 in 1 Rechargeable LED Flashlight TRL-001 Features: • 3 in 1: Flashlight, Emergency Light & Sensor Night Light • 14+6 super bright LEDs • Comes with AC plug-in contact-less charging base • Automatically turns on when there is power failure • At night, lights up when motion is detected (IR motion sensor) • Modern, minimalistic design • Lithium-ion battery lasts for up to 8 hours depending on use For more information call Switch Sales International Tel. No.: (632) 6228922; (632) 7323709 E-mail: aiinno.sales@gmail.com

Carpet Tiles

When the opportunity arises to design a new floor an option you should consider are carpet tiles. Relatively inexpensive, these tiles provide all the modern perks of normal carpet at almost half the cost. For over 50 years tiles have been used to design floors. Also called carpeting in a box or modular flooring, nowadays carpet tiles have become even more popular due to their many advantages and lack of disadvantages. What are Carpet Tiles? These tiles are typically carpet melted into a high density piece of vinyl in squares of usually 18" x 18". They used to be only found in commercial premises due to their resilient and budget minded characteristics. But in modern times, they have become more popular amongst new homeowners and renovators. For more information call Citi Carpet Inc. Tel. Nos.: 4213641 | 4383825 e-mail: citicarpet@yahoo.com.ph or visit http:// citicarpet.webs.com. March - April 2014

Philippine Construction&Design

PRODUCTS & TECHNOLOGY

Combi Roller Shades

The newest trend in window fashions, Elegant® Combi Shades offer you excellent function combined with unmatched beauty and elegance. Privacy, sun protection and design chic, all in one amazing window shading product! Learn more from Micro Lines. Tel. No. 713-4610, 7134592 or email us at microlines. info@yahoo.com

Ribbed slab system

Ribbed Slab System is a system consisting of precast prestressed half slabs with concrete upstands (rib) that are purposely designed to provide the necessary stiffness to the slab for handling, act as spacers for mesh reinforcement, and to provide a positive tie between the precast element and in-situ concrete topping to ensure a composite action between both. It’s smooth or slab bottom eliminates the need for drop ceiling and is ready for painting. For more information call JackBilt Industries Tel. No.: 846-2222 DL: 856-3443 with email add: sales@jackbilt.com.ph or visit www.jackbilt. com.ph

crimplok series

Crimp it. Lock it.

KATO regzmm

Fully Hydraulic Excavator HD820R Bucket capacity: 0.45m3-1.1m3(ISO) Engine output: 110kW/2,050min4 (ISONet) Operating weight: 19,500kg (HD820R), 20,300kg(HD820RLC) For more information call International Heavy Equipment Corporation Tel. No.: (632) 929-3547 to 49 E-mail: info@ihec.com.ph visit www.ihec.com.ph

Base Metal Type: Cold Rolled Steel; 275 MPa or 40,000 psi Substrate: Galvalume 55TM; Aluminum-Zinc alloy-coated steel complying with ISO 9364. Also avilable in GALVABONDTM; Lock Forming Quality (PNS 67: 1986) Paint Coating: Standard: Double oven-baked epoxy primer and regular polyester finish. Coating: Top - Total of 25 microns; Finish Coat - 20 microns; Bottom - Total of 10 microns Backing Coat- 5 microns; Primer Coat - 5 microns Optional: Premium Fluorocarbon (PVdF) paint finish on top of corrosion-resistant epoxy primer.

48 | Philippine Construction&Design March - April 2014

Sliding , Awning and Casement window Fabrication – Modules, Kiosks, Cabinets, Casements, Office Partitions, Bathroom xPartitions, Store Front Display, Conference Rooms ,Aquariums etc. For more information call Occidental Glass & Aluminum Supply Tel. Nos.: 02.641-0562 | 02.9750178, e-mail: occidental.glass@yahoo.com; sales@ occidental.glass.com vist their website: www.occidentalglass.com

Lanko 101 Parentduit

101 PARENDUIT is a skim smoothing rendering paste to be mixed with cement or gypsum for levelling uneven surfaces and filling small bubbles in concrete surfaces. A smooth surface is obtained by eliminating blemishes such as grooves, seams and rock pockets. USES: Interior / Exterior, Reinforced concrete; Precast concrete panels; Traditional rendering mortars. Interior only: Lightweight concrete or lightweight block. Gypsum board (in gypsum mix). For more information call PAREX Group Inc. Tel. (632) 672 1708 Fax. (632) 672.17.07 e-mail: philippines@parexdavco.com or visit http://www. parexgroup.com.ph.

The rock security

Serious about security?

full-colour wide series refina

Various colour with the unique design to achieve elegance with style. For more information call Panasonic Philippines Eco Solutions Group Tel. No.: (02) 886-6291-94, visit www.panasonic. com.ph available in all leading electrical and hardware stores nationwide.

Having a CCTV installed at your place does not guarantee your safety. But it’s a good start. Choose the cameras for your security system that not only clearly catch the image as it happens, but deliver as crisp images when you review. Can you review/ replay the images clearly? Does your system send alerts when suspicious accurrence is detected? Can you view and monitor while you are mobile? Does your system reliably save and put a time stamp on the recorded data? if you are serious about your security for your home or business. Choose the provider that can give you the total solution. Our research and development team continues to develop products using leading technology and innovative design. For more information call The Rock Security Tel. No.: (+632) 7095125 E-mail: info@therocksecurity. com visit www.therocksecurity.com

CP HYDRAULIC POWERPACK

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

CP Hydraulic Powerpack is an extremely versatile hydraulic driven power generator construction equipment which has attachments for breaking, cutting, coring, pile driving and water pump. It functions as a compact hydraulic system similar to that backhoes. Attachments such the BRK 70 can be connected to the powerpack can be used as a 70 pound jackhammer. Another useful attachment is the SAW 14 which can be used as a 12-14” concrete cutter. Other attachments can provide other extremely useful functions which will help user accomplish the job faster, can just load it in a pick-up truck or SUV then perform all the necessary road works. Compare to using the conventional screw compressors which need to be towed behind a separate vehicle or a large and heavy concrete cutter which takes up a lot of space, the user can just bring the powerpack and use the attachments to get the same job done. Save time, save space, save effort, cost savings. For more information contact Elektro Werk at 411-0333; 724-1686.

March - April 2014

Philippine Construction&Design

PRODUCTS & TECHNOLOGY SECTION

New Concrete Polishing System: Concria Sleeking System

The Concria sleeking system allows you to polish a new or existing surface without the need for heavy grinding machines. Using a 6-step process, Concria discs are strong enough to expose “salt and pepper” and polish up to the equivalent of a 3,000 grit floor, leaving a glossy and hard, easy to clean, durable surface. The speed and efficiency of the system is far superior than that of traditional grinding and polishing. Concria allowed polishing of about 8,000 ft2 per day. The Concria discs, which snap onto standard brown stripping pads about a dozen at a time, are 3 inches (7.6 centimeters) in diameter and 10 millimeters thick. The diamonds for both grinding and polishing are bonded with a rigid resin. The strong resin helps increase the longevity of the discs. The system performs by utilizing the down-pressure from either an auto scrubber, swing machine or power trowel along with water to cut and polish the surface. The six-step process also includes an application of lithium-based densifier along with a guard to finish.

1021F and 1121F Loaders (Case)

STEEL HOUSE SYSTEM The Rapid Steel House system is the product of careful research, development and innovation on the various uses of steel with traditional b u i l d i n g materials, resulting in an integrated and value-added combination which offers clients a better approach to building a home. Our steel house offers clients a fast way to build a house using our system. Included in the system are the following: Roof framing system, Drywall & ceiling framing system, Floor framing system and Rapid Security doors the systems gives a termite free and an environment-friendly alternative. For more information contact Rapid Forming at (632) 7263533 or visit http://www.rapidforming.com

Wall/Wiresystem WS 482 with tools

Husqvarna CS 10

A flexible wall and wire saw in a single system for both small and large jobs. With the WS 482 HF wall saw you can change the blade’s direction of rotation, and saw on both sides of the track. The CS 10 wire saw enables dry cuts through thick concrete – without any water. The W 1120 is a general purpose blade that performs well in most application with high speed. The high-speed C 900 wire with it´s 40 beads per meter enables a tremendous cutting rate in a large choice of applications.

DD 110-W Hand Held Coring System (HILTI INC.)

Case’s 296-hp 1020F loader weighs 53,500 lbs. and comes with a 5.5-cu.-yd. bucket.

The 53,500-lb. 1021F and 60,800-lb. 1121F are specifically engineered for quarry, aggregate and truck-loading applications. The 1021F features a 296-hp engine, 5.5-cu.-yd. bucket and dump height of 121 in. The 1121F is rated at 320 hp, has a 6.25-cu.-yd. bucket and dump height of 126 in. A hydro-mechanical transmission package provides additional fuel savings, faster acceleration and faster hydraulic cycle times. Standard Z-bar or extended-reach (XR) configurations are available. Features include joystick steering, selectable power modes and a rearview camera. CASE CONSTRUCTION EQUIPMENT 50 | Philippine Construction&Design March - April 2014

The 12.8-lb. DD 110-W hand-held coring system is suited for applications from through holes to anchor holes, and on any jobsite with limited access. The compact, well-balanced tool has a bit capacity of up to 6 1/4 in. maximum and a minimum bit size of 5/16 in. HWC Core Bits are available for hand-held coring in reinforced concrete, while HDMU universal core bits with laser-welded segments enable drilling in masonry of all kinds. Virtually dust free is possible when fitted with the optional dust or water removal systems. HILTI INC.

PRICE MOVEMENT

Year-on-Year and Month-on-Month Growth Rates of Construction Materials Retail Price Index: January 2014 and December 2013 • Year-on-Year

January 2014 December 2013 Year-to-date

Year-on-Year

0.5

1.4r

Month-on-Month

-0.2

0.0

0.5

www.steelhollowsection.com

All Items

The annual hike in the construction materials retail price index (CMRPI) in the National Capital Region (NCR) further decelerated to 0.5 percent in January 2014 from 1.4 percent in December 2013. Annual declines were still noted in the indices of painting materials and related compounds and miscellaneous construction materials at -0.7 percent and -2.1 percent from their respective previous month’s rates of -0.1 percent and -1.6 percent. In addition, slower annual increments were recorded in the following commodity groups: carpentry materials index, 0.3 percent from 0.6 percent; electrical materials index, 0.4 percent from 1.8 percent; and masonry materials index, 1.0 percent from 3.9 percent. A higher annual gain was however registered in tinsmithry materials index at 5.9 percent from 5.4 percent while that for plumbing materials index remained at -0.2 percent.

March - April 2014

Philippine Construction&Design

PRICE MOVEMENT • Month-on-Month

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The CMRPI in NCR dropped by 0.2 percent in January from a zero growth in December. The following commodity groups posted decreases during the month: carpentry materials index, -0.2 percent from 0.1 percent; electrical materials index, -0.7 percent from zero growth; painting materials and related compounds index and miscellaneous construction materials index, -0.4 percent from their corresponding last month’s rates of -0.1 percent and 0.3 percent; and plumbing materials index, -0.3 percent from -0.1 percent. On the other hand, the indices of masonry materials and tinsmithry materials picked up 0.8 percent from their last month’s rates of -0.2 percent and 0.1 percent, respectively. Lower price quotations were generally observed in common wire nails, electrical wires and wiring devices, paints, sand paper, GI pipes and steel bars. Meanwhile, prices of cement and tinsmithry materials went up during the month. Republic of the Philippines NATIONAL STATISTICS OFFICE INDUSTRY AND TRADE STATISTICS DEPARTMENT Manila

Table 1 Construction Materials Retail Price Index in the National Capital Region Table 1 Construction Materials Retail Price Index in the National Capital Region (200=100) (2000=100) COMMODITY GROUP

2013

2014 JAN

AVE

DEC

NOV

OCT

SEP

ALL ITEMS

178.1

177.9 r

178.5 r

178.5

178.3

A. CARPENTRY MATERIALS

149.7

149.6 r

150.0 r

149.8 r

150.1

B. ELECTRICAL MATERIALS

205.7

207.1

207.2

C. MASONRY MATERIALS

180.3

179.9

178.8

179.2

D. PAINTING MATERIALS & RELATED COMPOUNDS

179.5

180.2

E. PLUMBING MATERIALS

164.5

165.1

F. TINSMITHRY MATERIALS

142.8

139.7

G. MISCELLANEOUS CONSTRUCTION MATERIALS

295.1

298.8

Sources of Basic Data: NSO and other reporting establishments Processed by NSO

AUG

2012

JUL

JUN

MAY

APR

178.3

178.4

178.0

177.9

177.7

149.5

150.4

150.3

149.7

149.3

207.3

206.2

205.4

205.6

179.3

181.4

181.9

181.8

181.3

180.3

180.0

179.1

179.2

178.7

165.0

165.1

165.3

165.0

165.4

141.7

141.6

140.9

140.8

140.7

296.3

295.5

294.7

300.9

297.9

MAR

FEB

JAN

AVE

177.1

176.6

177.2

173.2

149.0

149.2

148.9

149.3

148.7

205.2

205.4

204.4

204.2

204.9

197.9

181.8

178.8

177.4

178.8

178.6

163.6

177.9

179.2

180.0

178.9

179.2

180.7

178.2

165.5

165.2

164.8

165.0

165.1

164.7

164.8

162.7

140.4

140.9

139.9

140.6

139.6

134.8

133.0

300.9

299.6

300.3

298.7

298.9

299.9

301.5

302.3

Republic of the Philippines NATIONAL STATISTICS OFFICE INDUSTRY AND TRADE STATISTICS DEPARTMENT Manila

Table 2 Year-on-Year Percent Change on Construction Materials Retail Price Index in the National Capital Region Table 2 Year-on-Year Percent Change on Construction Materials Retail Price Index in the National Capital Region (200=100) (2000=100) COMMODITY GROUP

2013

2014 JAN

AVE

DEC

NOV

OCT

SEP

AUG

2012

JUL

JUN

MAY

APR

MAR

FEB

JAN

AVE

ALL ITEMS

0.5

2.8 r

1.4 r

1.5

1.8

1.9

1.8

2.1

4.0

3.9

3.8

4.2

5.0

3.9

A. CARPENTRY MATERIALS

0.3

0.6 r

0.5

0.8

0.5

1.1

0.6

0.4

0.0

0.4

0.3

0.9

2.0

B. ELECTRICAL MATERIALS

0.4

4.0

1.8

2.2

2.5

1.7

1.2

1.3

1.4

6.6

6.7

6.5

7.7

8.9

5.3

C. MASONRY MATERIALS

1.0

10.3

3.9

2.9

4.0

6.2

5.6

5.9

12.7

17.8

16.0

15.1

16.7

16.8

7.2

D. PAINTING MATERIALS & RELATED COMPOUNDS

-0.7

0.7

-0.1

0.0

0.1

0.8

0.6

0.1

0.8

1.2

0.8

1.8

2.5

2.8

E. PLUMBING MATERIALS

-0.2

1.4

-0.2

1.3

1.6

1.5

1.8

1.6

1.4

1.2

1.5

1.6

2.0

2.2

5.9

5.0

5.4

6.1

5.7

6.3

6.0

6.3

5.8

6.0

5.5

0.9

0.5

-2.2

-2.1

-1.1

-1.6

-2.4

1.4

-1.7

-1.2

-1.6

-2.2

-3.3

-1.8

0.1

2.2

11.8

F. TINSMITHRY MATERIALS G. MISCELLANEOUS CONSTRUCTION MATERIALS

Sources of Basic Data: NSO and other reporting establishments Processed by NSO

52 | Philippine Construction&Design March - April 2014

March - April 2014

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

54 | Philippine Construction&Designâ&#x20AC;&#x192; March - April 2014