Philippine Construction and Design (Issue #1) by saibermedia

PHILI PPINE THE MAGAZINE FOR PHILIPPINE CONSTRUCTION PROFESSIONALS

MAIDEN ISSUE VOL. 1 NO.1 JULY 2012

dpwh uses new method of constructing underpass at araneta quezon avenue interchange PPP Project Pushing Phil. Dev’t. to its Threshold Arch. ramon s. mendoza Leading with vision and passion July 2012

Philippine Construction&Design 1

2 Philippine Construction&Design July 2012

from the editor

Philippine Construction & Design

Building an avenue for information exchange

This is an opportune time for us in the field of media and communication to provide a medium for information exchange that aims to benefit all stakeholders in the construction industry. That avenue is our e-magazine entitled Philippine Construction & Design. For our maiden issue, we focused on government infrastructure projects particularly the Public-Private Partnership Program of the Aquino Administration. This revitalized program promises to spur economic development through infrastructure projects. But with its thrust to promote transparency, project appraisal is thoroughly evaluated. The bidding procedure is crafted to level the playing field. However, implementation of projects is not moving as fast as expected. You will find our regular sections that include the local and international construction news, supplier profile, industry profile, special reports on public and private construction projects, project management, cost and finance management, and many more topics that will be of interest to the construction community. With this e-magazine, we commit to deliver an informative and interesting issue every month. But we also want our readers to participate in creating our e-magazine more responsive to the needs of the construction industry. We encourage you to share with us information, news, activities, projects as well as your opinions, comments and suggestions.

contents CONSTRUCTION NEWS

02 Calendar of Events

CONSTRUCTION MANAGEMENT

04 News Roundup

24 Project Management

07 International Report

26 Cost & Finance Management

Japan shares revolutionary building techniques with DPWH

Caterpillar strengthens production capacity in China

Planning is a must for successful and profitable projects

Cost techniques save time and money

10 Industry Report

28 Sales & Marketing Management

14 Project Report -Public

30 Products & Technology

FEATURES Public-Private Partnership (PPP) Projects DPWH uses new method of constructing underpass

16 Project Report -Private Building smart homes for the Filipino families

Marketing to customers in 2012 redefined Volvo Backhoes Doosan DA30 ADT Husqvarna Hyperfloor

33 Price Movements

The up and down sides of construction materials

18 Special Report

17th Worldbex 2012

20 Personality Profile

Architect Ramon S. Mendoza

22 Supplier’s Profile Hilti Philippines

Welcome to Philippine Construction & Design!

Rodolfo de Guzman Editor-in-Chief

ON THE COVER Assures no FloodinG WitH tHree subMersible PuMPs

dPWH uses new method of constructing underpass at Araneta – Quezon Avenue interchange

Editor-in-Chief: Graphic Artist: Contributors: Advertising Sales Executive:

Rodolfo de Guzman Anabelle Flores Katherine Verances Marfal | Rachel Rañosa | Ed Velasco Charmaine Altejos

The Philippine Construction & Design is an e-magazine published monthly by Saiber Media Inc., with business address at Rm. 1524 City & Land Mega Plaza, ADB Ave. cor. Garnet Rd., Ortigas Center, Pasig City. Official website is www. Publisher is Mr. William L. Ogan. For your editorial, online subscription and advertising placement, please contact (632) 945.8510. Please send your comments and suggestions to saibercraft@yahoo.com and rudy.saibermedia.com. Copyright ©2012 All rights reserved. July 2012

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calendar of events Archidex 2012 July 4 - 7, 2012 ARCHIDEX is the biggest event, congregating for the architecture, interior design and the building industry professions and industry leaders, giving them this opportune platform to keep abreast with the developments in the built environment, mingle and network with captains of the industry, besides sourcing for innovative products, designs and services. Venue: Kuala Lumpur Convention Centre (KLCC), Kuala Lumpur, Malaysia Interbuild Quingdao 2012 July 17 – 19, 2012 The 8th China Quingdao International Building and Decoration Materials Exposition is regarded as the third biggest building materials fair in China. Interbuild Quingdao focuses on doors, windows, curtain walls, wooden doors, flooring, coatings, ceramics and sanitary, sun-shade products, etc. Venue: Quingdao International Convention Center Philconstruct Visayas 2012 September 6 – 8, 2012 Venue: Waterfront Hotel, Cebu City, Philippines Build Asia 2012 September 11 – 13, 2012 8th Build Asia Int’l Exhibition and Conference is being organized by full UFI member of the Global Association of Exhibition Industry (Paris – France) and Ecommerce Gateway Pakistan (Pvt.) Ltd. that focuses on the immense potential of the building and construction industry in Pakistan. The Event also incorporates Furniture Asia, Property Asia & Stonefair Asia International Exhibitions. Venue: Karachi Expo Centre, Karachi, Pakistan Balticbuild 2012 September 12 - 14, 2012 BalticBuild is a leading autumn fair for construction & interiors in the North-West Russia. Prior to 2002 the exhibition was known as Batimat and Baltic Building Week. Venue: Lenexpo Fairgrounds, St. Petersburg, Russia Connex India 2012 September 12 – 15, 2012 CONNEX INDIA 2012 is the outcome of extensive research in the Indian construction industry. Visitors attend to source new products and to meet new contacts and increase networks. Venue: India Exposition Center, New Delhi, India Baghdad International Construction Expo September 13 – 16, 2012 This international event will showcase the latest developments in building technologies, construction materials and equipment. Venue: Baghdad International Fairground, Baghdad, Iraq Constech 2012 September 19 – 21, 2012 CONSTECH 2012 is re-positioned as the annual construction machinery and equipment “face to face” market place for over 300 exhibitors and suppliers to showcase their latest machinery,

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equipment, tools and methods to over 3,500 targeted key decision makers and trade buyers from the entire spectrum of the construction industry and market. Venue: IMPACT Exhibition and Convention Center, Bangkok, Thailand Green Building & Retrofits Expo Asia 2012 September 19 – 21, 2012 Green Building & Retrofits Expo Asia (GBR Expo Asia) will be held in conjunction with the 4th edition of BMAM Expo Asia, an international exhibition and conference on building maintenance and asset management for the Asian market. A total of 251 exhibiting and co-exhibiting companies from 28 countries will showcase an array of technology, equipment, services and solutions covering the entire spectrum of facility management & maintenance, property management, green building and retrofit sectors and industries. Venue: IMPACT Exhibition and Convention Center, Bangkok, Thailand Kazcomak Central Asia 2012 September 19 – 21, 2012 The Kazakhstan International Exhibition is a specliazed exhibition showcasing development in quarry operations, asphalt production, real patching and renovation, and public utilities construction. Venue: Atekent International Exhibition Centre, Almaty, Kazakhstan Bace Expo Dhaka 2012 September 19 -22, 2012 BACE Expo 2012 - Bangladesh Architectural, Construction & Engineering Industry Symposium & Trade Show, in its 6th edition, is the meeting point of the domestic and international business community to explore the growing business potential in the building & construction sector in Bangladesh. Venue: Atakent International Exhibition Centre Dhaka, Bangladesh Restructura Genova 2012 Sometime November 2012 A professional Construction & Real Estate trade show that is organized by Fiera di Genova. This construction & real estate trade show exhibits the latest products in the industry and the best practices for capturing sales leads. Venue: Fiera di Genova, Genoa, Italy Saudi Build 2012 November 11 – 14, 2012 Evaluate the latest offerings in building materials & equipment, architectural finishing products, stone, marble and granite products, construction tools and technology, engineering services, infrastructure materials, security & safety systems, among others. Also establish is new representation agreements, expand their existing business and source their project needs, all under one prime location. Venue: Riyadh International Exhibition Centre, Riyadh, Saudi Arabia Bauma China 2012 November 27 – 30, 2012 A trade fair of international character that offers exhibitors access to the target market of China and Asia. Venue: Shanghai New International Expo Centre, Shanghai, China

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news roundup

Japan shares revolutionary building techniques with DPWH Leading construction engineers and researchers headed by Mr. Yuuki Aratsu, Deputy Director General of JICA Economic Infrastructure Department, presented new technologies and techniques in tunnel construction, porous asphalt pavement, pavement quality control, concrete bridge construction, advanced pavement, and rapid road construction.

he Philippines, an archipelagic country, needs well constructed roads and bridges that will assure dependable means of transporting people and merchandise from the Visayas and Mindanao to Luzon and vice versa. A road and bridge network across the country is so important for the Philippine economy to post substantial gains. In the advent of climate change it is imperative for the Philippines to establish more roads and bridges that can withstand natural calamities like floods and earthquakes. It is very timely for the Japan International Cooperation Agency or JICA to have sponsored and conducted a seminar on modern building technologies for roads and bridges right here in Manila. It was dubbed “Latest Japanese Road

and Bridge Construction Technology”. Department of Public Works and Highways (DPWH) Secretary Rogelio L. Singson was very receptive to this assistance program from Japan and gave his full support. During the two-day seminar, participants from DPWH’s regional and district offices, other government agencies and private constructor organizations were briefed on the latest technologies and research papers on construction and adaptive technologies that can be used to build infrastructures that can survive the destructive effects of extreme weather conditions. Leading construction engineers and researchers headed by Mr. Yuuki Aratsu, Deputy Director General of JICA Economic Infrastructure Department, presented new technologies and techniques in tunnel

construction, porous asphalt pavement, pavement quality control, concrete bridge construction, advanced pavement, and rapid road construction. The latter will be very useful in the Philippines since immediate and efficient road repairs must be done specially during the rainy season. Furthermore, the team of Mr. Aratsu tackled topics on quality control system technology and urban expressway management that can be instrumental in the thrust of DPWH to build more quality highways across the country. With this cooperative assistance from Japan, the Philippines is positioned to gain much in realizing its goal of transforming all temporary bridges along national roads to become permanent by the year 2016.

ArthaLand plans more commercial projects

http://www.arthaland.net

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rthaLand Corporation, one of the aggressive land developers in the country, is very optimistic in building more commercial projects after starting off with Arya Residences on McKinley Parkway inside the Bonifacio Global City (BGC). Arya Residences is a 43-storey condominium project with 260 units. The total cost of the project is pegged at P 4.5 billion. Selling price for the units range from P10 million to P25 million. This high rise residential condominium project is considered, in its category, as the first to receive the accreditation by the United States-based Leadership in Energy and Environmental Design or LEED for its innovative architectural design that promotes energyefficiency and offers an eco-friendly environment. ArthaLand, formerly REIB Realty Developers Inc., is banking on its inventory of real properties inside Metromanila like the E-square property inside BGC and nearby places like Laguna, Tagaytay and Batangas for its future developments. Presently, the company has investments in the 36-storey Exportbank Plaza in Makati City and the 44-storey One McKinley Place in Taguig City.

66-storey Grand Hyatt Hotel A grand fusion of luxury and prestige

he Bonifacio Global City (BGC) landscape will soon be home to the Grand Hyatt Hotel when it takes its rightful place in this premier location in Taguig City by 2015. It will rise on a 1.5 hectare lot in BGC and will have 40,000 square meters of office space, world class residential apartments with a luxurious podium. It will house high-end retail stores and a 66-storey condotel that boasts of 450 superb guest rooms. This magnificent project is a joint venture of Federal Land, a subsidiary of the Metrobank Group, and Orix Corporation, a leading financing company in Japan. This mixed-used real estate development will be managed by the Grand Hyatt Hotels Worldwide. The entire project will be under the new company named Bonifacio Landmark Corporation (BLC). BLC Chairman Alfred Ty represented Federal Land in inking the joint venture with Orix Corporation. This is a repeat partnership when both parties co-built The Grand Midori Makati, a prominent two-tower residential enclave. This new addition to the roster of world class edifices in the prestigious address that is the BGC is expected to further give a big boost to the construction industry. Soon, when the Grand Hyatt Hotel complex will lord over this cityscape of grandeur, more inroads in the tourism industry will be felt and it will be more fun to stay in the Grand Hyatt Hotel in the Philippines! http://www.skyscrapercity.com

to rise on old bus terminal in QC

he bandwagon on construction of shopping malls seemed to have given old neighborhoods new lease on life. Otherwise considered white elephants, old buildings are torn down to give way to new establishments either commercial shopping centers or high rise condominium projects. In the aftermath, a more vibrant neighborhood becomes the center stage for mall goers and shoppers. The former Pantranco bus terminal at the

http://www.facebook.com/fishermall

Fisher Mall

corner of Quezon Avenue and Roosevelt Avenue in Quezon City will breathe in a new air of development when the Fisher Mall opens its doors to residents of Quezon City and neighboring cities. Fisher Mall is expected to be completed by 2013. This multi-billion peso development project is owned by Mallers Investment Corporation under the helm of veteran businessman Roberto del Rosario. The appointed general contractor is the Metro Stonerich, a category

“AAA” contractor as classified by the Philippine Contractors Accreditation Board. Metro Stonerich is also an ISO 9001:2008 certified company that adheres to strict quality standards. Fisher Mall is envisioned to cater to the every need of the most discriminating shoppers with top-of-the-line stores offering a wide range of quality products and services. It is located on a 1.9 hectare lot and will have a total floor area of 104,000 square meters.

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news roundup

www.tourism -philippines.com

Vista Land to roll out 32 subdivision projects in 2012

Western Visayas bridge project under PPP study development project in Camella Candon, Ilocos Sur is now fast becoming the center of commercial activities. As of the 3rd quarter of 2010, it has already generated P 104 million in new investments. On the opposite end, Camella Puerto Princesa will emerge as the premier housing development in an eight hectare lot in Barangay Bancao. It will be designed as a Caribbean themed gated community and will offer house and lot packages ranging from 40 square meters to 179 square meters. It will be offered from P 1 million to P 4.7 million.

Expressway projects under PPP to be bid out in 2012 Department of Public Works and Highways (DPWH) Secretary Rogelio Singson disclosed that P 33 billion worth of road projects are up for bid before the end of 2012. The second phase of the NAIA Expressway Project will cost P 13.58 billion and will be bid out this July. This project is a 5.2 kilometer elevated expressway that goes through the Ninoy Aquino International Airport (NAIA) aimed at easing vehicular traffic and shortening travel time going to and fro the NAIA terminals. This 4-lane expressway will extend from Sales St. to Andrews Avenue, MIA Road, Domestic Road up to Roxas Boulevard in Pasay City. There will a toll plaza and five on and off ramps that will be constructed. Above the NAIA Expressway, the DPWH will build another road network aimed at providing easy access to the country’s premier airport by travellers coming from the north and south of Metromanila. The NLEX-SLEX Connector Road is a 13.4 kilometer, 4-lane elevated expressway that will link NLEX and SLEX via the Philippine National Railways (PNR) alignment. Total construction cost of the NLEX-SLEX Connector Road project is P 19.984 billion. 6 Philippine Construction&Design July 2012

There are 19 congressmen from the region including Iloilo Representative Jerry Trenas, pushing for the implementation of the PanayGuimaras-Negros Trans-Link Bridges Project. This project is based on a 1999 study conducted by the Japan International Cooperation Agency (JICA) estimated to cost roughly P 53.661 billion. Funding for this project will be drawn from the Official Development Assistance loans or ODA. The funding has been requested by the Philippine government through the Japan Ministry of Trade and Commerce. The 23.19 kilometer bridge will connect Leganes, Iloilo to Guimaras and then to Negros province. The benefits include opening of more business opportunities, cut the cost of transportation and boost tourism in the Western Visayas region.

www.infrapppasia.com

ista Land and Lifescapes Inc., the Villar-led property development company in the country continues to lead in horizontal property development with its flagship brand Camella. For 2012, the company will roll out a total of 32 subdivision projects, sealing its position as the leading housing developer of single detached houses located in private subdivisions. Likewise, Vista Land aims to kick off this year with eight residential condominiums targeting the middle income group. The total project value is pegged at P 42 billion. An 11-hectare master planned

www.laposada.com.ph

international report

Caterpillar strengthens production capacity in China

www.cat.com | www.intlequipmentsales.com

The world renowned equipment manufacturer Caterpillar Incorporated remains bullish in its projections to increase its production capacity by constructing an additional facility in China. The new plant will be erected within the site of Shandong Engineering Machinery (SEM), the local subsidiary of Caterpillar when it acquired it in 2008. The US-based equipment company plans to manufacture track-type tractors that will carry the brand name of SEM and will be marketed in China and in other parts of the world. Corollary to this expansion program, Caterpillar is mulling to increase the production of its wheeled loaders line 300% in two years. At present, SEM manufactures paving products, wheel loaders and motor graders. The company looks forward to producing the initial batch of dozers at the end of 2012 and slowly increase it by 2013 and 2014 in anticipation of more demand in the global market due to the upswing in construction activities worldwide. The proposed construction of the new facility will immediately commence once all the necessary permits and government requirements are met. In the meantime, Caterpillar continues to manufacture construction and mining equipment, diesel-electric locomotives, diesel and natural gas engines and industrial gas turbines.

FAA confers construction safety award to Addison Airport

www.sxc.hu

Ensuring safety in the skies from the ground

India boosts solar power generation by 100MW

India, one of the fastest emerging economic giants in Asia, is poised to tap solar energy once more to boost its power generation by as much as 100MW. Reliance Power Limited was granted a $103 million loan facility by the Asian Development Bank (ADB) to construct a concentrated solar power plant in the village of Dhursar in the Jaisalmer District of Rajasythan. This site was selected since it has one of the highest elevations in the area that can fully harness the energy source from the sun. The total estimated value of the plant project is $415 million expected to be finished by May 2013. When it becomes operational, the plant will be able to help cut back emission of green house gases by as much as 250,000 metric tons per year. Power distribution will be through transmission lines now being used by the nearby Dahanu solar power plant, thereby saving time and resources in putting up its own line.

Air travel is considered one of the safest ways of commuting because strict safety regulations are being implemented to the highest standards possible. Statistics would show that there are even more road accidents recorded in any period of time than incidences of airplanes crushing or air collisions happening. The Federal Aviation Administration or FAA is the regulating and monitoring body that ensures that all airports abide by the highest standard of safety. The FAA conducts periodic tests and evaluation of airports and grades them accordingly. When there are deficiencies in safety measures, an airport could be given a downgraded rating. When this happens overall operations could suffer unless remedial actions were done to the satisfaction of the FAA. Last year, the FAA conferred the construction safety award to Addison Airport in Dallas, Texas for its completed runway reconstruction project. The project was undertaken by Garver Engineers and EAS Contracting. The runway project met the most stringent safety standards in relation to the work done, namely: the upgrade and improvement of approach lighting, grading of the 7,200 feet runway and the drainage system. The runway was subjected to reconstruction work involving application of new layer of asphalt. Some 1,263 truckloads of asphalt were used to ensure that the desired thickness of asphalt is achieved. Also, new coats of paint were applied covering 181 miles. Electrical cables were laid, spanning 22 miles in all. Lastly, a massive area was landscaped with grass compared to 35 football fields. July 2012

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international report

China dominates world shopping mall constructions

www.echinacities.com

The massive economic capital of China made it land on the top three spots worldwide for shopping mall construction according to the real estate property services firm CB Richard Ellis (CBRE). The growing consumer market in China, particularly in the bustling cities of Tianjin and Shenyang, is responsible for the fast pace of construction of shopping centers in the country. Once referred to as the sleeping giant, China is currently booming with mall constructions left and right. According to CBRE, Tianjin, a port city in the northeastern portion of China near Beijing has more shopping center space under construction than any city in Europe like Moscow and Paris. Tianjin, who is on the no. 1 spot, has about 16 mall projects in different stages of completion. When finished the total mall space area could reach 2.45 million square meters. On the other hand, Shenyang, an industrial city near North Korea is the center of economic trade with Japan, Russia and North and South Korea. In the pipeline are 18 shopping center projects with a total floor area of 2.18 million square meters. Incidentally, Shenyang is ranked no. 2 in the world for the most number of shopping malls.

Xayaburi dam project draws power from Mekong River www.greenbuilding-asia.com

GBR Expo Asia 2012 to boost green building technology The use of green technology in construction is now becoming the norm with more construction professionals veering towards green building solutions. The awareness of environmental conservation and energy efficiency prompted exhibition organizers like IMPACT Exhibition Management Co. Ltd. and CMC Exhibition Services Pte Ltd. to organize events that will address the need. Green Building & Retrofits (GBR) Expo Asia 2012, a world class exhibition of the latest technologies of environment friendly and sustainable products, is expected to draw more than 5,000 visitors on September 19-21, 2012 in Thailand. The GBR Expo Asia 2012 will showcase energy efficiency and energy harvest (renewable and alternative energy); building structure and substructure; green building materials and systems; exterior works and landscaping; building mechanical and

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electrical services and management; water efficiency management; and waste and toxic management. Thousands of new technologies will be featured by about 300 leading companies in the building industry from all over the world. GBR Expo Asia 2012 is being held in conjunction with Building Maintenance and Asset Management Expo Asia 2012 and four other building and construction related exhibitions, namely: CONSTECH 2012, INSTALL/PALME Thailand 2012, Pool&Spa Tech Asia 2012 and Landscape Asia 2012. All will be held in Halls 5-8, IMPACT Exhibition and Convention Center, Bangkok, Thailand and a total of 15,000 visitors is expected to attend. For more information, contact IMPACT Exhibition at tel. no. +66(0) 2833 5210, fax: +66(0) 2833 5127-9 or email: info@ greenbuilding-asia.com.

A Thai company recently signed a $ 2 billion contract for the construction of the Xayaburi dam on the Lower Mekong River. The project aims to harness hydroelectric power that will supply 95% of the electricity it will generate to Thailand. The Xayaburi Power Co. Ltd., a LaoThai joint venture, hopes to start the project this year and expects it to be completed in eight years. According to reports from the Energy and Mining Industry, the project will cost roughly $ 3.8 billion. However, the actual construction has been suspended pending the issuance of the necessary environmental clearances from the Mekong River Commission (MRC). The MRC is a regional body composed of four Southeast Asian countries, namely: Laos, Cambodia, Thailand and Vietnam. For its part, Laos is planning to build 70 hydropower projects on its vast river system and hopes to maximize hydroelectric power as source of energy. However, oppositions from different environmental groups seem to stymie the construction of the dams. The MRC is on the spotlight as the Xayaburi hydropower dam project is hanging in the air pending further assessments of its impact on food security, water quality, water resource and livelihood of those communities that will be directly affected.

www.nytimes.com (Photo by Jim Wilcon /The New York Times)

Chinese construction firms get more US projects A bridge that will connect San Francisco and Oakland is made in China. The 2,050foot long bridge will be shipped to the United States in batches and assembled on site. The bridge is composed of 12 segments, with the four enormous steel skeletons shipped last from Shanghai to San Francisco. This is among the latest construction projects that Chinese construction firms have completed in the US. Chinese construction companies are now among the top construction service providers in the world. Five out of the top ten companies are Chinese that includes the China

State Construction Engineering Group (CSCEC), besting even the American company Bechtel. CSCEC has already built seven schools in the United States and apartment blocks in New York and Washington DC. Likewise, the company bagged the contract to renovate the subway system in New York, refurbish the Alexander Hamilton Bridge and build a new platform near the Yankee Stadium. The edge of Chinese construction companies over European and other contractors is their easy access to financing, aside from cheap labor and machineries built in China.

http://www.maximizingprogpress.org.

http://www.sightandsoundbarrier.com

Singapore promotes green buildings

Singapore, with very limited natural resources, has turned to support the construction of green buildings. This initiative is geared at reducing the use of fossil fuels that in 2010 contributed to the largest carbon footprint per head in the Asia-Pacific region. In 2005, the Singapore government started a program to promote the construction of high-tech, low-energy buildings as well as the retrofitting of old ones to conform to green building standards covering 80% of all buildings by 2030. As of now, there are 1,000 government-certified green buildings in Singapore that comprises 13% of gross floor area in the state. One of the prime movers of the green building initiative is the United World College Southeast Asia. The campus features green building technologies such as rooftop solar panels, cascading walls that reduces heat and the optimal use of natural light. It was reported that the cost of solar panels has been falling down by about 4% annually and this will encourage the use of these materials by more contractors. To add to making energy efficient buildings, Singapore has also started to develop desalination and sewage recycling technology to mitigate the effect of water shortages.

USG lightweight panels gain wide acceptance The United States Gypsum Company (USG) has introduced the lightweight panels under the brand name Ultrascreen It is made up of aggregated portland cement board reinforced with polymer-coated glass fiber mesh. It can also contain steel strips that are placed between the cement board and the foam. The standard panels are approximately 4 feet by 12 feet in size with interlock edges and are lightweight at 450 pounds. The panels have five benefits. First, they are easily installed using a boom truck thereby lessening installation time as compared to masonry work. Second, all raw materials used are easily available. Third, the panels can contain recycled ingredients like fly ash and recyclable materials such as steel and plastic. The fourth benefit is that it serves as a sound barrier where noise is reduced by adding amount of cement board face layers. Lastly, the panels cost less than current systems of screens due to savings in installation costs. July 2012

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industry report

c.hu www.sx

Public-Private Partnership (PPP) Projects

Pushing Philippine development to its threshold By Rodolfo de Guzman

“The PPP Center is envisioned to honor that social contract by acting as the country’s premier champion of the country’s PPP program, providing its technical expertise and resources to ensure that these PPP projects are done in the right way, as properly prepared projects, at the right time, at the right price.”

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f the Chinese businessman considers the number “8” a lucky one then maybe Executive Order No. 8 of President Benigno Simeon C. Aquino III will have the same aura of success. The executive order pertains to the creation of the Public-Private Partnership Program or PPP. It replaces the existing Build-Operate-Transfer or BOT Program of the previous administrations under Republic Act 6957 in 1990 and the Amended Build-Operate-Transfer or BOT Law under Republic Act No. 7718 in 1994. “The PPP Center is envisioned to honor that social contract by acting as the country’s premier champion of the country’s PPP program, providing its technical expertise and resources to ensure that these PPP projects are done in the right way, as properly prepared projects, at the right time, at the right price,” relates PPP Center Executive Director Cosette V. Canilao. This ushers in a new chapter in Philippine economic history where major infrastructure projects of the government will take center stage as priority program to boost economic development not only in key cities of the country but the countryside as well. “The PPP Center enables Implementing Agencies (IAs)

industry report

to undertake these PPP projects with the due diligence that is necessary so that the people’s hard earned money are spent wisely, maximizing its benefits to reach its target beneficiaries,” states PPP Center Executive Director Canilao. With the promise of lesser red tape in the processing of government projects, complete transparency in bidding procedures and leveling the playing field for both local and foreign investors, the PPP augurs well for the Philippines. It hopes to provide sustainable growth and genuine development for poverty alleviation that is expected to redound to benefitting all strata of Philippine society. “The Public-Private Partnership Program or PPP is a flagship program of President Benigno S. Aquino III that was instituted to help accelerate our nation’s infrastructure development and address the country’s infrastructure deficiency,” discloses Executive Director Canilao. If the masses and the marginalized sectors of society are to reap the fruits of these PPP projects, the question then remains, “How will PPP projects improve the life of the average Juan dela Cruz?” PPP Center carries on the BOT task The PPP Center serves as the facilitator for all major infrastructure projects of the government and the Implementing Agencies (IAs) like the Department of Public Works and Highways (DPWH), Department of Transportation and Communication (DOTC), Department of Education (DepEd), Department of Agriculture (DA), Department of Health (DoH) and other agencies. “The Philippine Public-Private Partnership (PPP) Program is not a different strategy from the Build-OperateTransfer (BOT) Program initiated by the government in the early 1990s….the PPP Program is an expanded strategy of the government to engage private sector financing, efficiencies and innovations not just in traditional infrastructure sectors (power, rails, highways, roads, ports, etc.) but also in critical development sectors such as health and education,” reveals Executive Director Canilao. Basically, the functions of the PPP Center include the following: 1) provides advisory services and technical assistance in project preparation

and development; 2) recommends plans and policies related to PPP; 3) manages and administers the Project Development and Monitoring Facility (PDMF), a fund allocated for the preparation of bankable PPP projects; and 4) monitors and facilitates the implementation of priority PPP projects. These distinct mandates of the PPP Center place it at the forefront, championing the country’s PPP Program. During the project preparation stage, the Center provides PPP capacity development assistance to IAs, including Local Government Units (LGUs). It also funds pre-investment activities thru the PDMF fund that the Center is managing. Likewise, the Center provides advisory services on the legal, technical and financial matters related to the PPP project at hand. “….The Center provides the IAs with the technical skills, tools and resources necessary to ensure that projects are structured correctly and are truly viable. The PPP Center also initiates policy reforms to create an enabling environment for PPP investments,” adds Canilao. Big ticket projects gain traction in 2012 The infrastructure projects rolled out at the end of 2011 totaled 10 and expected to fully take off in 2012, highlighted by a water supply project, school infrastructure and improvement of domestic airports initiated by the Metropolitan Waterworks and Sewerage System (MWSS), the DepEd and the DOTC. The Daang Hari-SLEX Link Road project preparation was started early in the second quarter of the current year and was bid out on December 12, 2011. On December 22, 2011, the DPWH’s Special Bids and Awards Committee formally awarded the 30-year concession to the winning bidder, the Ayala Corporation, for the bid price of P 902 million besting the P 608 million bid of San Miguel Corporation. The project involves the construction of a new 4-kilometer, 4-lane toll road from the junction of Daang Reyna and Daang Hari in the Las Pinas/Bacoor, Cavite area to the South Luzon Expressway or SLEX. Ayala Corporation in partnership with

“The Philippine PublicPrivate Partnership (PPP) Program is not a different strategy from the Build-Operate-Transfer (BOT) Program initiated by the government in the early 1990s….the PPP Program is an expanded strategy of the government to engage private sector financing, efficiencies and innovations not just in traditional infrastructure sectors (power, rails, highways, roads, ports, etc.) but also in critical development sectors such as health and education.”

PPP center head Cosette Canilao during the 45th Annual metting of the ADB Board of Governors in Manila.

July 2012

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industry report

“This allotment was augmented by $6 million grant from Australia Agency for International Development or AusAID through the Asian Development Bank. This is expected to be further augmented by P160 million in 2012 by the government.” Mactan Cebu International Airport

NAIA Expressway Project Phase II

the Spanish engineering firm Getinsa is expected to complete the project by the second half of 2013. This is a milestone as this becomes the first PPP project that has been auctioned off by the Aquino government. The NLEX-SLEX Connector Project is another important road link measuring 13.4 kilometers with four lanes that will be constructed as an elevated expressway aimed to close the gap and complete the Luzon industrial beltway transport axis by connecting the NLEX with SLEX. The DOTC, on the other hand, is spearheading the Rehabilitation and Improvement of the Puerto Princesa Airport Project to the tune of P 4.2 billion. This project is very timely since the Puerto Princesa Underground River has been included in the top ten list of

12 Philippine Construction&Design July 2012

the New 7 Wonders of the World, and tourist influx is anticipated to increase in the near future. DOTC aims to upgrade the airport to the standards of the International Civil Aviation Organization (ICAO), thereby elevating it to world class status. The future beckons well for the construction industry As the PPP Center carefully evaluates and monitors project proposals, the local construction industry stands on the center of development, playing a vital role in the successful implementation of PPP projects by the government. “With a more invigorated infrastructure industry, we will see a positive change in the country’s investment landscape with more investors, both local and foreign,

coming into play and supporting our PPP program. This in turn will structure a more encouraging investment climate that will prove favorable to the banking and finance markets, enriching the local infrastructure market with fresh opportunities that will bank-roll our PPP projects. To the Filipino, this means having more jobs, and whose basic needs like health, education, food security, water and a working road network, among others, are sufficiently met. This is how the PPP program will change the face of this nation, through a more resilient and vigorous economy centered on transparency and accountability,” reveals Executive Director Canilao. The Establishment of Cold Chain Systems Covering Strategic Areas in the Philippines Project of the Department of Agriculture costing P1.5 billion will support the food supply chain wherein fresh agricultural produce especially in the fisheries sector will assure consumers of quality products at affordable prices. In the long run, productivity will increase and more jobs in the agricultural sector are expected to be generated. On the other hand, the projects involving the development of potable water sources under the New Water Supply Source Project and the Operation and Maintenance of the Angat Hydro-Electric Power Plant (AHEPP) Auxiliary Turbines No.4/5 and the Macua Mini-Hydro Power Plant projects are expected to generate more constructing and local engineering

works, thereby contributing milestones to the construction industry. Forging international cooperation bolsters PPP projects The government initiative to fully promote PPP projects has gained much attention from the international community both on the level of foreign governments and the international business community. The Philippine Government has allotted an initial P300 million in 2011 alone to the Project Development and Monitoring Facility (PDMF) to help IAs in developing properly structured projects. “This allotment was augmented by $6 million grant from Australia Agency for International Development or AusAID through the Asian Development Bank. This is expected to be further augmented by P160 million in 2012 by the government,” Executive Director Canilao discloses. The PDMF is used to finance the preinvestment activities that include among others the following: pre-feasibility studies, feasibility studies and other transaction advisory services. Recently, the United Kingdom Trade and Investment Mission in Manila expressed optimism and is keen in

participating actively in the PPP projects. The UK was reported to be the biggest investor in the Philippines for the past decade from 1999-2010 with some $12 billion in net foreign direct and net portfolio investments. For its part, Trade Secretary Gregory Domingo offered the UK investors opportunities in the tourism, infrastructure and information technology industries. At the moment, the UK investors have already expressed interest in the LRT-MRT Extension Project and the Philippine Orthopedic Center Modernization Project. Even foreign consultancy firms like the PricewaterhouseCoopers (PwC) have shown confidence in the PPP program of the Philippine government and in fact have been involved initially in some of the big-ticket projects as consultants. Aside from the AusAID and the Asian Development Bank, the British Embassy and the Canadian International Development Agency (CIDA) are working closely with the PPP Center as strategic partners. On the local front, spearheading inter-agency cooperation are the Department of Finance, Department of Trade and Industry and NEDA.

The Die Is Cast With all the hullabaloo going on for the PPP program, the fact remains that the PPP projects will serve as the primary vehicle for the country’s socioeconomic development program when the formula succeeds. It is not a simple game plan for the Aquino government nor is it an easy task for the PPP Center as a facilitator and catalyst of growth and development. Weighed on its shoulder is the gargantuan task of seeing through the proper implementation of projects that will benefit all stakeholders under an atmosphere of transparency, fairness and accountability. The ball is rolling and the die is cast. “One guarantee that the Aquino Administration has put in place to safeguard that there will be no repeat of the scandalous PPP projects and where accountability and transparency will be the norm of the transactions for PPP projects is the revitalization of the PPP Center. This is what we are tasked to do. Our objective is to make sure that PPP projects undertaken by the Implementing Agencies are well prepared, well structured, and can withstand intense review and scrutiny with no room for pockets of irregularities,” explains Canilao. Just like the tango, both the public and private sector must dance to the same tune. Each possesses a specific role and must adhere to the rules strictly. With the assurance by the Philippine government of transparency and a level playing field, and with the PPP Center as the facilitator, the dream of achieving development goals by the end of 2016 may yet be realized. “It will be difficult to give a fearless forecast of what to expect for the entire duration of the Aquino administration. But this is what I know right now. The PPP Program of the Aquino administration is an important cog in our country’s development efforts. It is a flagship of the Aquino administration….This is the President’s social contract with all of us. The PPP Program is one of the legacies that President Aquino can give to this country when his term ends,” Executive Director Canilao opines.

PPP Center Executive Dir. Canilao (L) and DILG Usec. Austere Panadero (R) sign LGU MOA.

July 2012

Philippine Construction&Design 13

project report-public

Assures no FloodinG WitH tHree subMersible PuMPs

dPWH uses new method of constructing underpass at Araneta – Quezon Avenue interchange By Jun Garcia

“This is more convenient than the conventional retaining wall wherein you will be excavating a larger area at once. Through this method, soil erosion will be avoided and water leakage is much lesser,”

he Department of Public Works and Highways (DPWH) has applied for the first time the diaphragm wall type method in constructing a 440-meter long depressed roadway (underpass) along Quezon Avenue corner G. Araneta Avenue (formerly C-3). Engr. Allyson P. Lagunda, Project Engineer of the C-3 – Quezon Avenue Interchange Project, explains that the diaphragm wall is basically done by first excavating the retaining wall, then planting the rebars before pouring S4 type cement. “This is more convenient than the conventional retaining wall wherein you will be excavating a larger area at once. Through this method, soil erosion will be avoided and water leakage is much lesser,” claims Lagunda. The tunnel structure along Quezon Avenue has a total length of Sta. 6+710 to Sta. 7+150, 440m. The length of approaches is measured at 365m (with Retaining/ RC Diaphragm Wall) while the length of underpass bridge is 75m. The R.C. diaphragm retaining wall is 450 mm to 750 mm thick and 3.50 to 15.00 meters long. The RC center column and tie beam at underpass bridge and left turning lane is measured at 800mm x 1200mm RC

14 Philippine Construction&Design July 2012

The ongoing dPWH underpass project at Araneta – Quezon Avenue Interchange

Column, 800mm x 800mm RC Tie Beam. Its permanent ground anchor is diaphragm walls with H = 7.50 m (min) and RC flat slab is 800 mm thick, 75 m for the bridge over tunnel. Construction Cost The total cost of constructing the diaphragm walls for the 440 meter stretch amounted to PHP 161,105,086.80. A diaphragm wall is normally being used in basement building. Lagunda says contractors in Bangkok and Malaysia, among others, have also applied this kind of method in constructing roads in their country. The C-3 – Quezon Avenue Interchange Project is the first among the ten (10) depressed roadways in Metro Manila that has this kind of make. The project, which includes a 75-meter long overpass bridge crossing C-3 and improvement of the existing road and drainage facilities along the project area is contracted at PHP 430,018,633.96. Its contractor, the Ciriaco Construction, projected completion time to be 15 months or 450 calendar days. Structural works started on June 20, 2011. “As of September 11, 2011, we have an accomplishment of 15 percent and we have a positive 10% which means we are way ahead of schedule,” says Lagunda. With

a total manpower of 169 working 24/7 rain or shine, the contractors are confident of meeting the target completion date. It also deployed a total of 36 construction equipments. The majority of which is the BG 40 with Grab that is being used to construct the diaphragm wall. They also have five cranes in site which really makes the work on schedule. According to Lagunda, the Bauer Foundations Phils., Inc., which is the subcontractor of the project, is one of the only two contractors that has BG 40 with Grab equipment. Project Objectives For government projects such as this, it is very important to determine the very purpose of a multi-million construction work and the benefits it will give to the majority of the people. Primary objective of the depressed roadway is to improve the traffic flow at the intersection of two (2) major roads in Quezon City; the C-3 (G. Araneta Avenue) and Quezon Avenue. It also hopes to improve transport efficiency of the city’s road network; complementing the Metro Manila Urban Transport Integration Study (MMUTIS), LRT 4 and the Metro Manila Expressway

(Skyway Phase 3). “We expect the traffic to ease in the intersection. Generally, there is an average of 2,500 vehicles passing the intersection per hour per day as per the survey conducted by MMDA. The volume of vehicles will lead to a slowdown in cueing. With the underpass, it will allow continuous and uninterrupted flow of traffic on two lanes of both ways,” assures the project engineer. Among the challenges encountered in the early phase of the project is the presence of utilities; where a water pipe system of Maynilad Water Services was affected. But constant communications with these utility companies like Meralco and PLDT as early as August 2010 accidental damages to existing infrastructures were prevented. Guaranteed no flooding Meticulous project planning at the onset enabled the project engineers to identify three major issues. First, runoff water at the underpass along Quezon Avenue will be conveyed to the curb and gutter towards a series of grated inlets that will be strategically spaced out in the entire stretch of the underpass. Second, from the gutter grated inlet, runoff water will drop down to the

underground lateral box culvert (800 x 800mm) and flows by gravity up to the lowest portion of the underpass. From there, runoff water will be conveyed into a pump sump/cistern (4.95 x 10.40 meters). Third, the pump draws up the runoff water to the at-grade roadside drainage system (910mm dia., elev. 9.36). The outfall of the at-grade system that has a design out-invert elevation at 8.15 is at the San Juan River. This is higher than the maximum flood level elevation 8.11. Three (3) units of submersible pumps, each with 277 liter/sec. capacity, will be installed inside the pump house that is capable of operating automatically. Each pump, equipped with sensors, is programmed to be activated depending on the level of flood water on three height levels. A spare pump can also be installed in case of breakdown. The three submersible sewage pumps including the pump house costs PHP 16 million. “I can guarantee that there will be no flooding. Not even the Mariblo creek will become a threat to the underpass. I will bet my name and my years of stint at DPWH where I started since 3rd year college, that flooding will not happen,” concludes the project engineer.

“We expect the traffic to ease in the intersection. Generally, there is an average of 2,500 vehicles passing the intersection per hour per day as per the survey conducted by MMDA. The volume of vehicles will lead to a slowdown in cueing. With the underpass, it will allow continuous and uninterrupted flow of traffic on two lanes of both ways.”

July 2012

Philippine Construction&Design 15

J.A.O. Builders

Building smart homes for the Filipino families By Rodolfo de Guzman

n building a house, there must be a collaboration of minds and talents provided by exacting engineers, visionary architects, creative interior designers and highly trained and skilled craftsmen and trades people. As a team, these individuals blend their expertise to create what the home maker wants. The thrust of J.A.O. Builders and Development Corporation is to provide premium service to their clients. And for 15 years, this 100% Filipino company that was started by three brothers in 1997, J.A.O. Builders remains true to its commitment of providing quality homes for the Filipino family.

16 Philippine Construction&Design July 2012

Building like an orchestra creating a symphony “We treat our clients as our partners from the start to the finish. We provide them with free house design and cost estimates for them to appreciate our products and services,” says AlexaAmbida, Creative Manager of J.A.O. Builders. The company makes sure that the client is involved with the project from the start, at the time of design conceptualization up to the actual turnover of the finished house. “Initially we ask our clients what they want and how much is their budget. Then we try to come up with a design and specification based on their preference and budget,” reveals Ms. Ambida. The company executes

the appropriate design with blueprints and floor plans that are given to clients in compact discs. Also, the company provides a 3-D model of the house. “We at J.A.O. also provide assistance to our clients if they need financing for their mortgage since we have established partner agreements with certain banks and financing institutions so housing loans are processed without much burden to our clients,” states Ambida. Like an orchestra playing beautiful music together, the J.A.O. Builders’ team shares their insights and creative juices with the client to create that dream house that the company promises to deliver. And for the more than 1,000 projects already finished,

project report- private

“We at J.A.O. also provide assistance to our clients if they need financing for their mortgage since we have established partner agreements with certain banks and financing institutions so housing loans are processed without much burden to our clients,” this formula has been proven to work well for J.A.O. Builders and its satisfied clients. Building on quality and durability J.A.O. Builders’ founders believe that building a house is a serious endeavor especially for the Filipino family because it is not merely a building but it is a home with all the memories of the family in it. Because of this, brothers Engineer Ferdinand, Allan and Orlando Manalastas formed the company to provide the Filipino family with high quality homes at reasonable prices with a 15-year accountability on the structure and a one year guarantee free of charge. J.A.O. Builders is very particular with the strength of its structural works to ensure that its homes abide by the strictest civil engineering standards. The company uses Portland cement for its reinforced concrete slabs, footings, columns and beams. It uses Grade 33 reinforcing bars, 6” CHB for exterior walls and 4” CHB for interior walls with 350-500 psi. For its roofing covers, J.A.O. Builders uses either the “rib-type” or “tile-type” 0.50mm pre-painted long span steel roof. J.A.O. offers a shopping list of house designs To date, the company has a showcase of pre-designed houses categorized by style such as Classic-Contemporary, Modern, Asian, Victorian and Mediterranean. These designs carry a common feature of high ceiling living room with floor-to-ceiling glass windows to allow natural light to illuminate the interior and allow free flow of air for maximum ventilation. The house models range from 2-bedroom, 2-storey houses to 4-bedroom, 2-storey structures with lanai, terraces or balcony, carport, family hall and den. For some models there are also provisions for an attic.

For these designs, the homeowner has to have at least 150 square meters of lot. “In fact, we can tailor fit the design to the lot and we can make necessary adjustments to the plan and design according to the desire of our client. We give them the design and cost estimate for free, a service we believe only J.A.O. Builders can provide,” says Ambida. J.A.O. Builders' smart homes The showcase product of J.A.O. Builders is its Smart Homes. Conceptualized about two years ago, Smart Homes follow the idea of having a house that enables the homeowner to experience luxury, comfort, entertainment, protection and safety without compromise. Simply put, the Smart Homes have a mind of its own. “To avoid the hassle of turning exterior lights on and off, we have incorporated in our Smart Homes automated lighting system with timer switch that can be programmed to turn on and off at certain hour of the day,” enthuses Ambida. A Standard Finish Smart Home comes with Package A that includes the following: Panasonic Automated Outside Lights Timer Switch model TB-388-09K; Therisma and Hotspa Water Heaters; 5 sets of Emergency Lights model GA-1001-LED; Yale Biometric Door Access using fingerprint data; Panasonic Hybrid System PABX-7 units Telephone; WiFi Set-up using Linksys WRT320-N Router and Linksys WAP610-N Access Point; Security Vault model DS-300-FR; Rangehood model H-61.6; Panasonic Fire Alarm/Smoke Detector; and the Sliding Shower Enclosure & Shower Panel for the Master’s bedroom toilet and bath. This package costs P3.985M for JS-160 model and P4.985M for the JS210 model. A Superior Finish Smart Home can be

had with Package B amenities. Under this package, the homeowner will get the same gadgetry in Package A with some additions as follows: the Panasonic Dimmer Switch for full control of the brightness of lights; the AIPhone Doorbell with Camera model JK1MD that allows the residents to see who are at the door and talk to them through intercom system; and the Kitchen Sink Erator model 158 ½ hp. An Elite Finish Smart Home includes Package C with all the amenities provided in Package B. The difference is the type of Rangehood model H-71.6 and the Shower Enclosure that comes with Shower and Glass Shelves model Koller DE-007. There is a 4-Channel CCTV System that can be accessed through a laptop computer or mobile phone and the Motion detector with Siren model 515SK installed near the master’s bedroom. This package costs P5.045M for the JS-160 model and P6.255M for the JS-210 model. A promise to every Filipino family Everyday, the three brothers together with its more than 300 employees work hard to deliver their promise to the Filipino families, a bulk of which comes from families of OFWs who entrusted their hard earned dollars to a company that shares with them their aspirations. “We will continue to innovate in terms of our product offerings and further improve our services. Within the year we will be launching an added customer service that will allow our clients more participation in the construction of their dream homes but with less hassles to them but I can’t reveal that to you now,” says Ambida. One thing is definite; J.A.O. Builders will continue to build, innovate and deliver quality and smart homes to the Filipino family.

A customer relations officer attends to a client at the J.A.O. office in Quezon City

July 2012

Philippine Construction&Design 17

special report

17th Worldbex 2012 Welcome Arch

17th Worldbex 2012

Building the future By Rodolfo de Guzman

“Our products are very durable, light weight but strong and can be used as skylight for residential and commercial buildings.”

his annual event, heralded as the biggest construction and building trade show in Asia, was organized by Worldbex Services International (WSI), a Philippine based company founded in 1996 that has since been spearheading world class exhibitions and specialty events. This year’s 17thWorldbex Building and Construction Exposition incorporated in its primary objective to include economically and environmentally sustainable concepts that are fast becoming the wave of the future in building technology. Product innovations Worldbex 2012 organizers projected that visitors could reach almost 138,000 composed of architects, engineers, construction companies, land developers, building contractors, interior designers, landscaping practitioners and the general public that included homeowners and

18 Philippine Construction&Design July 2012

condominium dwellers. One company worth looking at was Mariwasa Siam Ceramic Inc., that showcased its 2012 Tile Collection featuring its “scratch-free tiles” where the ceramic tile body is protected with engobe layer and durable glaze. Also, they introduced the “safety tiles” that significantly minimize risks of slips and falls on both dry and wet surfaces. Polylite Industrial Corporation is a distributor and installer of colorful polycarbonate sheets used as roofing materials for skylight, store display windows, trellises, bathroom partitions, greenhouses, laboratory countertops and flooring. “Our products are very durable, light weight but strong and can be used as skylight for residential and commercial buildings.” discloses Pia Dujali, Account Executive for Polylite Industrial Corporation. Puyat Steel Corporation, manufacturer

of the Apo Roof brand, had on display several samples of its engineered roofing system that comes with a 10-year warranty against corrosion and 2-year warranty on installation. Its product line included Corspan (pre-painted corrugated roof), Super Span (pre-painted long span roof), and Tilespan Elite (designed like tegula tiles) among others. Kent Floors Inc. offered two product categories under the brand name Kent Vinyl and Kent Wood. The Kent Vinyl line referred to vinyl floor tiles that are made in the standard 12”x12” size but varies in thickness from 1.3mm to 3.0mm. “We have a new product that was recently launched that we call the Carpet Vinyl Tiles that was created to mimic the design and print of real carpets,” says Dawn Medalla, Marketing Consultant for Kent Floors Inc. It comes in 18”x18” size format at 3.0mm thickness. iWata Solar Energy Home System products range from energy efficient high power LED lamps, LED Bulbs, LED Flood lights, Motion Sensors to Solar Panels. “We have a single 15-watts solar panel that can power at most two light bulbs and this system can cost initially about P9,800 with free electricity from the sun,” reveals the representative of Colent Diversified Products Inc. Other exhibitors were Davies Paints, Multi-Line Corporation, Excel Roof, and Matimco House of Wood. There were also land developers and building contractors who joined the exposition like J.A.O. Builders, SM Development Corporation, Suntrust, Empire East, and many more. Worldbex 2012 expo and competition The exposition this year featured five major categories, namely: 1) Furniture Gallery, 2) Architects’ and Interior Designers’ Gallery, 3) Grand Embassy Pavilion, 4) Business Matching, and 5) the ObraMaestra: desenioecologico design competition. The Business Matching section conducted one-on-one sales and consultancy meetings among buyers and sellers. The Obra Maestra: desenioecologico featured interior design entries from different universities like the University of the Philippines Diliman, University of Sto. Tomas, Philippine Women’s University, University of the East, St. Scholastica’s College, PSID and many more.

The competition was a joint undertaking of Wilcon Builder’s Depot and the Council of Interior Design Educators. 14th Worldbex seminars Part of the exposition was the 14thWorldbex Seminar series. Architect Amado de Jesus talked about tropical architecture while Architect Chu Yang Keng talked about eco-friendly approaches to architecture with his lecture entitled “Towards Nature Centric Architectural Designs.” Mr. John Aguilar touched on the idea of “green architecture” with his discourse on building green and flood adaptive homes. Engineer Abdo Kardous gave valuable pointers on advance methods and techniques in proper construction management from start to finish. On the second day, Architect Paulo Alcazaren also talked about “green architecture”, sustainable development

and “bio-climatic designs” that are more adaptive to the changing environment. Internationally acclaimed Architect Felino Palafox Jr. stressed the importance of urban planning in project development to ensure more sustainable communities in the future. The other speakers were Architect Albert S. Yu, IDr. Leo Almeria, Alex Araneta, Roumel Itum, Brian Farnsworth, Martin Klaasen, and Anthony Pangilinan. Worldbex 2012 Succeads With trade professionals and respected personalities in the fields of construction, engineering, and architecture gathered up under one roof, the 17thWorldbex proved to be another success. Worldbex 2012 showed you the latest in building technologies and new products so start your project and see your dream come true, at least for now!

A sales representative of E-shing Corporation explains the features of Castle waterproofing products.

July 2012

Philippine Construction&Design 19

personality profile

Architect Ramon S. Mendoza

Leading with Vision and Passion By Katherine Verances Marfal

For Architect Ramon Santos Mendoza, a true leader knows and understands how to create a genuine vision that will lead his people towards fulfillment.

Arch. Ramon S. Mendoza during a ribbon cutting ceremony.

20 Philippine Construction&Design July 2012

or Architect Ramon Santos Mendoza, a true leader knows and understands how to create a genuine vision that will lead his people towards fulfillment. On his second term as national president of the United Architects of the Philippines or UAP, he had already implemented remarkable policies and programs for the benefit of the organization. Among his major achievements as UAP National president include shaping the UAP’s public realm. Furthermore, under his stewardship, UAP became the first and only accredited professional organization to have received the Most Outstanding Accredited Professional Organization award four times. Last June 22, 2012, UAP was given the 5th award. This will make the organization a strong contender for the Hall of Fame Award. Building on a strong foundation Architect Ramon Mendoza’s career as an architect started after finishing a degree in Bachelor of Science in Architecture from the University of Santo Tomas as a UST Cultural Scholar in 1973 for being one of the founding members of UST Salinggawi Dance Troupe. He took and passed the Architecture Board Examinations in 1974. Having much to thank for in his alma mater, Mendoza vowed to serve UST in whatever capacity and he became actively involved with the UST College of Architecture Alumni Association (USTCAAA). Architect Mendoza co-founded the UST Atelier Alumni Association and sat as one of its Board of Directors from 2001 to 2005. As a leader, he understood the gentle art of persuasion through respect. Because of

his great leadership skills, he was tapped to head the UAP Annual Golf Tournament in 2002 and had served in the UAP Golf Cup for ten consecutive years where he was instrumental in generating more than P 20 million in net revenue for the organization. Mendoza steers UAP to the next level Architect Mendoza’s advocacy in instituting parliamentary practices in all UAP national and local meetings and assemblies mirrors his utmost desire to professionalize the organization. His efforts bore fruits as one of the milestones was the publication of the first UAP Parliamentary Rules and Procedures in 2006. Under his term as UAP Area A vice president, his leadership has been most notable for his successes in leading Area A in two consecutive successful area conferences, namely: the DAPAYAN Conference held in 2007 and the SANDIWA Conference in 2008. These led to the institutionalization of Area Conferences in the UAP that was formally instituted in fiscal year 2009-2010. This man of vision and passion has indeed steered UAP to the next level by promoting awareness on collaborative discussion on issues and concerns within the Area. In February 3-4 of this year, the Architect’s Summit on Collaborative Action and Leadership (or ASCAL for brevity) was held at La Carmela de Boracay Resort Hotel Station 2, Boracay, Aklan. As a result of this exercise, closer collaboration with other professionals was established thereby enabling them to come up with appropriate solutions to their concerns.

“I am determined to use my character, skill and leadership, stature and the enormous respect I had won among all those I have worked with to enhance quality service to my colleagues,” Office of Governor Daza.

Arch. Mendoza presents his designs for a socio-civic project.

Architect Mendoza nurtures the soul of UAP With the help of his colleagues, Arch. Mendoza continues to pursue UAP’s corporate social responsibility philosophy. UAP partnered with the Department of Education (DepEd) through the creation of “UAP IskulTakubets” Project that ensured the construction of safe, accessible, clean and environmentally responsible public school toilets in public elementary schools nationwide. As of June 15, 2012, UAP had already turned over ten toilets to ten public elementary schools nationwide, with more to come by the end of the current year. UAP was also tapped by DepEd to evaluate existing public elementary and high school sites across the country. This aims to explore innovative designs and technology that is cost-effective and disaster-resistant. A result of this partnership was the successful completion of “Bayanihang Pampaaralan Design Competition”. UAP collaborated with the Health Futures Foundation, under the leadership of former Health Secretary Jaime GalvezTan. The project was named “UAP Alay sa Ginhawa at Kalusugan or AlagaKa Project”. It involved creating a functional and innovative health center that is costeffective and sustainable. To date, UAP had already constructed and turned over one health center in Lipa City, Batangas while two more are under construction in Bohol and Palawan.

Again, UAP participated in the Pasig River Rehabilitation Commission to help clean the waterways in Metro Manila and determine the appropriate strategy to rehabilitate them. UAP is set to finalize the conceptual design of the medium-rise buildings for the In-City Housing Project along Estero de San Miguel surrounding Malacanang Palace as an adjunct program in support of revitalizing Pasig River. Lastly, UAP sealed an agreement with the Pacman Partnerships for the Poor Inc., an organization spearheaded by Pambansang Kamao Congressman Manny Pacquiao. UAP’s assistance was solicited to establish a provincial hospital in Saranggani province. In addition, UAP was tapped to design two hospitals in Samar in cooperation with St. Scholastica and the

Coming in full circle Arch. Mendoza’s comprehensive and diverse experience in the practice of architecture – in residential, institutional, commercial and educational buildings – served as a foundation for his distinguished career as an architect and a raison d’etre for his elevation to the College of Fellows in 2001 in the field of Allied Profession, the same year when the three future UAP Presidents (Robert Sac, Henry Olonan and Boy Roldan) were also conferred. With all his socio-civic work, his career has truly come in full circle with a series of impressive accomplishments that benefitted both the private and public sectors.“I am determined to use my character, skill and leadership, stature and the enormous respect I had won among all those I have worked with to enhance quality service to my colleagues,” Arch. Mendoza emphasized. Indeed, as Architect Ramon S. Mendoza embraces more challenging tasks ahead for the service of the communities around him, his determination to lead and “live his vision” is an affirmation of his being a true leader.

Arch. Mendoza (with hard hat) poses during the ground breaking ceremony of a project.

July 2012

Philippine Construction&Design 21

supplier's profile

Hilti Philippines

Asserting leadership in power tools by Rudy de Guzman

Hilti, one of the leading international companies that manufacture power tools and equipment for the construction industry was founded by Martin Hilti 1941. The corporate headquarters are based in Liechtenstein.

22 Philippine Construction&Design July 2012

he Hilti Corporation, one of the leading international companies which manufactures power tools and equipment for the construction industry was founded in the Principality of Liechtenstein in 1941 byMartin Hilti. The corporate headquarters are still based in Liechtenstein. For over half a century, Hilti remains in the forefront of providing premium-quality construction tools. “If we are to rank Hilti in the Philippines from the competition in terms of sales we probably are in the No. 2 or No. 3 position,” discloses Enrique B. Ballarta, Hilti Philippines Marketing Manager. But the strength of Hilti, aside from its high-quality and high-performing tools, lies in its people – a group of highly trained professionals along with a strong corporate culture. “Our philosophy is customer centric. We impart to our team members the importance of incorporating in their daily activities the ability to address the needs of our clients,” adds Ballarta.

Corporate culture Hilti Philippines values its customers above all. The corporate culture, cultivated in the corporate headquarters in Schaan, Liechtenstein, has been replicated in all its branch offices in over 120 countries. In fact the company has incorporated in its operation the so-called Our Culture Journey program. New hires as well as existing employees participate in frequent training. It was started in 2005, where a series of Team Camps were held. It serves as a management training program where three vital philosophies are imparted on the participants, namely: corporate values, purpose for the company’s existence, and leadership. Customers first Since 1996, Hilti Philippines has operated independently of the Hong Kong branch. Its operations are centered in Metromanila, Metro Cebu and Metro Davao. There are some 76 highly trained Account

“Our philosophy is customer centric. We impart to our employees the importance of incorporating in their daily activities the ability to address the needs of our clients,” Managers (AM) throughout the country who address the needs of the construction industry, specifically contractors, engineers, architects and government agencies like Department of Public Works and Highways (DPWH). “Since the company was founded, we market our products and services through direct consulting. Our AMs go direct to our clients and explain the technical details and the value-for-money they get from using Hilti tools and fastening systems,” enthuses Ballarta. One advantage of buying Hilti tools is the company’s offer of a lifetime service. “We are able to offer Hilti Lifetime Service because we strongly believe our products are much better than others,” Ballarta stated. The unique service package carries three unique features: 1) zero repair costs whatsoever for one (1) year from the date of purchase; 2) after this, a 30% repair cost limit for the entire life of the tool; and 3) a lifetime manufacturer’s warranty. Additionally, repair services in Metromanila have the unique three-days-or-free guarantee where repair time is set at a maximum of three days and up to five days for areas outside Metromanila, Metro Cebu and Metro Davao, otherwise the customer pays nothing. Anchoring on product excellence Hilti prides itself on the superior quality products borne of extensive research and technological development. “Central to our products is the technology where we have the edge, since our research and development is very extensive. We forge close relationships with universities around the world, including in Liechtenstein, Switzerland and Germany,” reveals Ballarta. As a result, Hilti continuously develops new, innovative products in its portfolio. The Hilti Cordless System is an extensive line of cordless power tools ideal to work fast and flexibly. These include cordless impact drivers, compact drills, rotary hammer drills, chargers and accessories. The Hilti Measuring System include the following: laser range meters, rotating lasers,

multidirectional lasers, rebar detector and Ferroscan, and optical tools. These tools are used to measure distances, area and volume calculations. These tools include the Hilti PRI 2 rotating laser and the Hilti PD 42 laser range meter. The latter measures distances of 0.05 meters to 200 meters with laser precision. It is capable of checking parallels and right angles with MIN/MAX function. The Direct Fastening System involves the powder-actuated fastening tools ideal for fastening to steel, concrete and sandstone quickly and conveniently. The Hilti DX 460 powder-actuated tool has an automatic cartridge feed with repetitive fastening action. Also available are nail magazines with general purpose nails used for wood, concrete, sand lime-masonry and steel. The Drilling and Demolition Tools include equipment used for heavy loads like rotary hammers, combi hammers and breakers. The Hilti TE 30-AVR rotary hammer is perfect for light chiselling on masonry, finishing and cleaning up on concrete. The Hilti TE 700 AVR is a medium to heavy duty chiselling tool used mainly on walls for demolition and corrective work. The Hilti TE 1500-AVR is used for demolition of concrete and masonry work at floor or below waist level. Accessories include Hilti polygon chisels suited for heavyduty performance without re-sharpening. The Anchoring System is ideal for temporary fastenings like forming braces, jacks and other fastening applications. An example of this is the Hilti HLC sleeve anchor. The Diamond Coring and Cutting System is used to penetrate ducts, pipes and cables. It is also used to create openings for ventilation, stitch drilling for breaches, and boring holes for service entries. Moreover, it can be used for core drilling in ceilings, walls and floors without hammering or vibration. One of the product models is the Hilti DD 200 diamond coring system. The Cutting and Sanding Tools are best used for cutting, grinding and brushing metallic and mineral base materials. They are also used for creating cable channels in concrete and tiles. The special feature is the active torque control that reduces unwanted recoil movement. Example of this is the Hilti DEG 125-P angle grinder. The Firestop System is meant to seal construction joints, topof-wall joints, small metal pipes and HVAC penetrations. Example of this is the Hilti CP 606 flexible firestop sealant. Lastly, there is the Hilti Foam

System that is used for insulating window joints, attics and dry walls. The Hilti CF-I 750 insulating foam is an all-purpose, HFC-free application that is very easy to dispense and economical to use. Expanded portfolio Hilti believes that economic indicators are positive and the market for power tools is growing. “According to World Bank the economy is improving and we believe that in the next five years there will be a steady growth in demand for our products so we are building our product portfolio,” says Ballarta. At the same time Hilti is identifying growth areas in other regions in the country. With the dispersal of property development in other places like Tarlac, Pangasinan, and Ilocos Norte in Luzon and Cagayan, Butuan and Zamboanga in Mindanao, Hilti is also preparing by fielding more account managers to serve the market. “We are ready to address the demands of the market and if needed we can deploy our account managers or even set up offices in areas like Ilocos Norte, as these plans are in the pipeline,” reveals Ballarta. Lastly, Hilti is diversifying its marketing strategy to include allied industries related to construction. The company has developed new products that will cater to the mining industry especially in Benguet and Baguio. Likewise, it is coming up with new tools appropriate for construction of oil refineries and other related projects. New products and innovative technology will carry Hilti through the next decades. The future for Hilti has just begun.

July 2012

Philippine Construction&Design 23

PROJECT MANAGEMENT

Successful Project Management

Planning is a must for successful and profitable projects

50 %

100 %

Every contractor plans to build a project profitably and to be on time and within budget. Successful contractors have a keen understanding of the construction process. This includes not only the actual construction of the project but also effective planning, scheduling and the construction process.

he management of a construction project is a four step process – establishing a project plan, preparing a project schedule, supervising the project schedule and management of change events. Planning a project Establishing a project plan is the first step. Like a jigsaw puzzle, all parts must be identified since all are necessary to complete the puzzle. Also the process may involve the establishment in time and cost of each piece. This ultimately leads to knowing the final cost and time of the project. Plan development and specifications for the project allow a construction party to identify what is included in its scope of work and related activities as well as activities that are not

24 Philippine Construction&Design July 2012

included. This identification process is critical to the contractor to know what activities have not been assigned and could “slip through the cracks”. During the planning phase, project price is established using several methodologies like competitive bidding; a not to exceed value contract; or paying the cost of the work plus a fixed fee. When this is done, a contract is prepared and a definite project schedule is drawn. Construction parties concerned must now identify where to source labor, construction supplies and equipment. Finally, the project must meet all government regulatory requirements while the contractor is generally tasked with obtaining all the needed permits.

2011 Description April

May

Jun

July

Aug.

Sept.

Oct.

Nov.

Clear the Site Form Foundations Foundation Utilities Slab Casting Remove Forms Frame Structure Frame Roof Exteriror Brick Internal Framing Install Doors and Windows Interior Finishes Painting Fixtures Equipment Clean Up

Figure 1. Sample of a bar chart Project schedule The proper scheduling of tasks is the most critical part of the construction management process. Proper schedule divides the construction activity into different time schedules and activities. All parties involved in the construction need to be involved in the schedule and “buy into” the project sequence before construction begins. Schedules can be simple or sophisticated, depending on preference. Identifying the different work descriptions. Figure 1 is a sample of a bar chart. The use of the critical path method (CPM) technique is the most common methodology for developing and displaying project programs. With CPM, each work activity is assigned duration, from the start date up to the end date of the project, and sequenced to follow and precede another activity. This sequence of events is the critical path. Multiple paths are normally created and many occur simultaneously and independently from one another. CPM software used in planning and scheduling creates a logic diagram or network that can be displayed graphically showing the materials, labor and equipment needed for their work. This also allows the owner, architect, engineer and contractor to prepare decisions or approvals based on completed work items or deliverables. Monitoring With the start of construction, the schedule becomes a dynamic tool where the contractor instructs construction parties how often to update their own work. A schedule is updated at least monthly to keep pace with payment schedules. It is important to analyze all scheduled and executed activities to determine if updates will delay or otherwise affect projected completion dates. The contractor needs to constantly monitor schedules and solve problems as they occur.

Change Events There will be changes during the construction of any project. Managing these changes is different from monitoring progress and reflecting changes in the updated schedules. Modifications may be done to adopt the changes and refinement could include the breaking of foundation work into several activities such as surveying the footing locations, drilling the footings, or assembling reinforcement steel cages. A change like this describes future work in greater detail and is considered a revision to the schedule. When changes in timetable occur, the whole schedule must be adjusted to absorb the additional week and compensated in terms of manpower and man hours. Unforeseen events like weather conditions, labor problems and unusual phenomena can cause changes in schedule thereby leading to revision of design, owner-added change orders, and incomplete designs that have been completed. The contractor is ultimately responsible and must provide the resources to put the project, if delayed, back on track. All revisions or routine updates to the construction schedule are republished, distributed, and communicated to all parties. If project planned completion date is affected, the contractor needs to evaluate the project sequencing to determine how to avoid seeking a later completion date unless schedule extension is granted. The contractor is responsible, as part of his duties as well as the owner’s right, to be regularly informed of construction project progress. Following these practices will guarantee a successful relationship between the owner, contractor and subcontractors as well as help ensure a successful project.

July 2012

Philippine Construction&Design 25

www.sxc.hu

cost & finance management

Cost techniques save time and money Using budgeting techniques and costing softwares are essential in project cost management

26â&#x20AC;&#x192; Philippine Construction&Designâ&#x20AC;&#x192; July 2012

he success or failure of a construction project is dependent on the basic input that makes the project going; and that is money. Reality dictates that the cost of any construction project that usually runs in the hundreds of millions of pesos depends on several variables. Preparation of a complete and realistic budget is a critical activity in managing the construction project. Since the prices of construction materials are very volatile, it is very difficult to determine the actual costs of materials to be used for the entire project. Usually, cost estimates are done with reasonable parameters considered. The cost of labor is also factored in especially in relation to the various job activities. Wages are computed and rates are assigned for each activity in varying amounts. This cost may be predicted in advance since rates are less vulnerable to sudden fluctuations.

A well prepared cost estimate is important, not only to maximize financial resources but also critical to the profitability of the construction project. In doing so, several cost estimating methods can be used to ascertain that projected budget figures will not be too far off from actual costs incurred. Job Costing and cost control system The use of job costing method refers to recording of all costs involved for a certain job or specific construction activity. It is recommended that all cost pertaining to the job or construction activity be recorded in a ledger or any file document where all particulars are written including receipts, materials description, prices, volume of purchases, labor rates, man hours spent and where the materials were used. It is also advisable that at the start of the project, a budget is made as basis for comparison on actual expenditures. By doing this, cost is monitored periodically and managed to prevent overspending or underspending. The total job cost is the sum of direct and indirect materials used, labor cost and overhead expenses. Labor cost is computed in terms of variable labor rates for each job activity and the number of hours spent per activity for a certain period of time. To aid in estimating costs, there are tools that can be used aside from the calculator. There are now computer softwares available in the market. One of this is the job costing software called Seradex.

“current value of total cost of an asset over its entire operating life that includes the initial cost of capital, costs of occupation and the cost of the asset when disposed at the end of its life cycle.” disposed at the end of its life cycle.” This method is gaining acceptance from construction professionals because it is a more systematic and logical way to determine project costs. It is more realistic in the sense that it considers inflations as well as depreciation at the end of the life cycle of the asset or the building. It is recommended that this method be used in the design stage of the project. Costing becomes more accurate and responsive to the prevailing market realities since alternatives are already identified during the design stage. As a result, more options are presented to the manager for decision making. Construction professionals can make use of the software called the BridgeLCC, developed by NIST, as a convenient tool for construction project costing.

Learning ABC for construction project costing Learning the ABC in construction project costing is as simple as learning to read in the primary grades. ABC stands for “activity based costing” where due considerations are given to the following: identification of activities; resources used for the activities; and cost of resources determined by purchase receipts. In detail, the ABC method also identifies the cost per unit of material; the different construction activities outlined to finish the job; and the amount of resources consumed per activity in terms of volume and monetary value. By doing so, the manager can easily determine the cost of materials, labor, and resources at any given time. This then allows the manager flexibility for adjustments and modifications in his budget. The beauty behind the ABC is that there is a clear relationship between the costs and the activities. This then shows what activity costs more compared to others and decisions can be prudently dispensed with to avoid unnecessary expenses and/or achieve savings. Again there are several activity based costing software programs that can be used, one of which is the SAS Activity Based Management program.

www.sxc.hu

Putting costs on the operating life of a project The assigning of certain costs and values on the life cycle of the project is one method that is now becoming more popular as a tool for costing. This is known as the “life cycle costing” or simply LCC technique. It is defined by the Royal Institute of Chartered Surveyors as “current value of total cost of an asset over its entire operating life that includes the initial cost of capital, costs of occupation and the cost of the asset when

July 2012

Philippine Construction&Design 27

SALES & MARKETING MANAGEMENT

Marketing is an indispensable management tool that is a vital function of a company or organization that involves, among others, the identification and study of consumer behaviour and preferences.

Marketing to customers in 2012 redefined T

he consumers of today are so sophisticated that marketers have come up with so many new ways to reach its audience. Segmentation of the market has been done few years back to fully identify consumers that companies want to address. As such there are groupings that were designed to identify certain types of consumers; short of labelling them just like products for easy identification. Mobile generation The younger generation composed of the teens, “tweens”, and “yuppies” possess remarkable dexterity that makes them easily reached through “mobile marketing”. The iPhone, iPad and Android provide platforms for convenient mobile

28 Philippine Construction&Design July 2012

communication with voice calls, text messaging, and email that allows the consumers ready access to information and to a company’s products and services. The emerging scenario will be biased towards more advanced computer technology and gadgets so that by exploring the mobile network, the marketer can position itself to be in the forefront of promoting its products and services to the millions of subscribers to local mobile phone providers. Social media marketing The serious marketers must adjust their marketing scheme by tapping the internet since a lot of time is spent on the web, especially by the younger generation whose

means of communicating is no longer limited to text messaging. The wide reach of the internet is a fertile ground for marketers to place their advertisements and messages available in social networking sites like Facebook and Twitter. Likewise, the social media network also serves as a rich source of information on consumers’ profiles that can be very useful in formulating effective marketing plans. Value for money What customers look for today is valuefor-money. In other words, consumers want to buy products and services worth their price tags. And believe me, there are a lot of consumers that are conscious of the prices

photo courtesy of www.divanna.com

and worth of what they are buying. This is happening because of economic factors and consumer’s changing perception of quality and product value. It is therefore important for marketers to re-evaluate their products and services visà-vis their marketing strategies. Consumers will be harder to convince to buy something “on sale” just because it is “on sale”. Events marketing Another popular way of marketing one’s products and services is events marketing. The increasing rate of construction of shopping malls and commercial establishments like SM Malls, Robinsons Malls, Ayala Town Centers, Glorietta Malls, Gaisano Malls in the Visayas and Mindanao, makes events marketing a very potent tool of promotion. Events vary as to what is being celebrated depending on the season or occasion. During these celebrations there are live bands, singing contests, dance competitions, fashion shows and even live guesting by popular actors and actresses. Property and land developers often place sponsorships and marketing events in malls as their way of reaching their target market.

Big property developers capitalize on this opportunity since a couple of them also own these malls. Celebrity marketing In the Philippines, celebrity marketing remains to be a sure-shot formula for marketing success. Although there were some that were not too successful, majority of endorser-led marketing campaigns proved to have delivered the goods, so to speak. The Filipino consumer’s psyche is so attuned to celebrity endorsers that if they talk about a certain product or service they become authoritative spokespersons that can entice consumers to buy. Consumer products and real estate companies use the same formula by signing up known TV and movie personalities like actress Anne Curtis for SMDC and international heiress Paris Hilton for Azure Urban Resort Residences of Century Properties. Innovating for the long haul If marketing was simply limited to product brochures, radio advertisements and flyers, then the potentials of business growth will also be hampered. The good part in this is

that the Marketing Manager now has a lot of tools to use for his marketing campaign to attain his objectives. If he is marketing high tech gadgets then he can make use of mobile marketing or social media as platforms. If a company is a construction firm, it can also maximize the potentials of the internet to reach out to prospective clients. Similarly, real estate developers can avail of ad space in social networking sites to promote its projects to more buyers. The reality in the field of marketing remains to be the ability of the Marketing Manager to spot trends and new developments and techniques available in the field. Furthermore, he or she must be flexible to embrace changes to create more opportunities. Access to information and the marketer’s competence to digest and make use of the information to his or her advantage will still be the main strength to lean on in the course of intense marketing competition. To win in this game, the marketer must rely on a dose of science of statistics, an ounce of keen perception and a gram of common sense.

July 2012

Philippine Construction&Design 29

www.volvoce.com

products & technology

Volvo BL60B & BL70B Backhoe Loaders

These versatile backhoe loaders are packed with mechanical muscles for excavating work, rugged yet equipped with comfortable operator’s station. It is designed to combine serviceability, function and style. The BL60B model has an 83 hp (62kW) engine with operating weight of 15,410 lbs. to 20,459 lbs. It has a bucket capacity (LDR) of 1.0 cu/yd. The BL70B model has 91 hp (68kW) engine with operating weight of 16,777 lbs. to 21,671 lbs. It has a bucket capacity (LDR) of 1.3 cu/yd.

www.deere.com

John Deere 17 D Excavator www.constructionequipment.com

Hyundai Skid Steer Loaders

Hyundai, the South Korean heavy equipment manufacturer, recently launched its skid steer loader series with Models HSL850-7A and HSL650-7A. The compact but very powerful loader Model HSL850-7A runs on a 68 hp engine with operating weight of 7,253 lbs. and a maximum dump height of 7 ft. and 9 inches. Its bucket capacity is 0.48 cu/yd and 74.6 inches wide. On the other hand, the HSL650-7A is packed with a 35.9 hp engine with operating weight of 5,787 lbs. and a maximum dump height of 7 ft. and 3 inches. Its bucket capacity is 0.4 cu/yd that measures 64 inches wide.

30 Philippine Construction&Design July 2012

This mean machine excavator carries a Final Tier 4-certified engine with reduced tail swing and variable-width undercarriage. It works on 14.8 hp (11.0kW) at 2,400 rpm. Its maximum digging reach is 3.90 meters (12 ft. and 10 inches) and maximum digging depth of 2.17 meters (7 ft. and 1 inch). It is lightweight at 4,173 lbs. or 1,893 kgs.

products & technology

www.boschtools.com

This handy but very powerful drilling tool is ideal for home projects and minor repair jobs. It contains a longer piston and impact bolt together with a precisionmachined striker that boasts of a higher hammer speed and power. It runs on an 8-amp motor but with less vibration due to the longer air cushion between the striker and the piston. This drill has variable speed operation from 0-1,230 rpm and has three operating modes for hammer, drill and combination hammer/ drill functions. It bores holes of up to 1 1/8 inches in diameter.

www.mascns.co.uk

Bosch RH228VC Bulldog Extreme Max Rotary Hammer Drill

Case Compact Excavators Perfect for landscaping jobs and working on tight spaces is the Case Compact Excavators. Designed to perform tough earth moving jobs, these compact excavators deliver power and utility with superb agility ideal on working with compact areas as well. Its special feature of center-swing boom allows it to dig around stationary objects and obstacles without affecting the surrounding area.

Husqvarna Hiperfloor Polished concrete floor using the husqvarna hiperfloor system gives the unique elegance and beauty to every home at a fraction of the cost of other flooring systems. This method involves grinding, treating and polishing concrete floor to make it more attractive, glossy and practically abrasion resistant. This is very durable and hygienic and requires minimal amount of maintenance and cleaning. This is a practical alternative to wood floors, vinyl and ceramic tiles.

www.trucksplanet.com

www.husqvarna.com

DOOSAN DA30 ADT (Articulated Dump Truck) The Doosan DA30 ADT is a much improved and redesigned model MT31 with 365 horsepower using the Tier 4-Interim engine that is eight percent more powerful. The transmission has eight forward and four reverse gears and has a permanent 6-wheel drive. The machine weight (empty) is 51,588 pounds. The payload rating is 31 tons and the heaped capacity is 23.3 cubic yards. The loading height is nine feet and eight inches. It has a maximum speed of 32.4 mph. The torque is 1,381 ft.-lb. at 1,300 rpm that represents 28 percent jump. There is also a special articulation system with articulation hinge behind the turning ring that provides equal weight distribution to the front wheels. July 2012

Philippine Construction&Designâ&#x20AC;&#x192; 31

products & technology

Allen HDX 750 Ride-On Trowel

EPOCH Series Flaw Detectors One of the diagnostic test equipment available in the market is the Epoch Series flaw detectors from Olympus NDT. This device is designed to allow non-destructive, ultrasonic testing of a DPF’s cordierite, silicon carbide or ceramic substrate to detect any internal cracks.

32 Philippine Construction&Design July 2012

TEREX CR662RM Roadmix Material Transfer Vehicle Paver The CR662RM model carries a Tier 4-Interim diesel engine by Cummins, model QSB6.7, that generates 260 horsepower. With this power the CR662RM model is still five percent more fuel efficient than the older model. This equipment sports a new design with low-profile hood that enables improved visibility. The design was also crafted to allow the cleanest air to cool down the radiator. The elevator width is 30 inches; elevator angle is variable and the throughput is 600 tph. It has a storage capacity of 43 tons. When it is equipped as an MTV, the swivelling conveyor can swing 55 degrees right or left of center. On the other hand, as a paver it has two 5-foot long spread auger sections.

www.constructionequipmentguide.com

www.directindustry.com

www.concretefloor.com

The Allen Engineering HDX 750 is an all-hydraulic-powered ride-on trowel that runs on a 74 horsepower Kubota diesel engine. It has a Genereation III joystick power steering function with independent hydraulic blade pitch. The seat and arms can be adjusted to suit the operator’s preference. It has 6-bladed rotors that are 60 inches in diameter with removable steps for easy access to the blades. Specifications include panning path width of 139 inches; maximum rotor speed of 140 rpm; overall dimensions of 124 x 63 x 63 inches. It weighs 2,414 pounds and has fuel capacity of 12 gallons.

Photo by Marcelo Terraza/ www.sxc.hu

PRICE MOVEMENTs

The up and down sides of construction materials By Rodolfo de Guzman

rices of construction materials are critical to the viability of a project and more so to the bottom lines of construction and real estate development companies. A minor change in prices of prime construction materials like cement, reinforcing steel and lumber may spell the difference of either a profit or a loss. Local manufacturers and suppliers of major construction materials that produce roofing materials, structural steel, gravel and sand, cement and others play a critical role in the construction industry as they are expected to meet demands of the local construction industry as well as satisfy their expectations on prices. For contractors, the name of the game then is price watch! They must constantly monitor movements in prices of major

construction materials in order to anticipate price fluctuations, meticulously evaluate price trends and adjust cost estimates prudently. Figures tell the story At the end of 2011, December, wholesale prices of all construction items on the average moved by 8.3%. By January 2012, prices mellowed to only 7.5%. Substantial change was recorded for fuels and lubricants by 2.8% from a high of 14.9% in December 2011 to 12.1% by January 2012. This movement may have been caused by world prices of oil and fuel products. Cement, on the other hand, moved from -2.6% in December 2011 to -4.3% based on preliminary data by January 2012. Reinforcing steel also exhibited minor change of 1.5% from

July 2012

Philippine Construction&Designâ&#x20AC;&#x192; 33

pRiCE MOVEMENTs

10.2% in December 2011 to 8.7% in January 2012. Asphalt likewise recorded 1.4% change from 13.7% to 15.1% for the same period. Two items, however, stayed at par, namely: glass and glass products at 1.8% for both periods and plumbing fixtures and accessories/waterworks at 5.0%. Retail price watch Data from the National Capital Region (NCR) show that on the average the monthly change in the retail price index of selected construction materials went down to -0.2% in January 2012 from a positive 0.4% in December 2011. This change is a welcome development since actual market prices retracted thereby benefitting consumers for lower prices. The price index for the following materials for the same period likewise dropped: from 0.2% to -0.3% for electrical materials; from 0.1% to -0.4% for painting materials and related compounds; from 0.3% to -1.4% for masonry materials; from zero growth to -2.3% for tinsmithry; and from 0.6% to 0.4% for plumbing materials. There were also notable price reductions in cement, paints and related compounds, GI sheets, sand paper and electrical wires and wiring devices for the said period of December 2011 to January 2012. However, there were reports of price increases in plain round steel bars and common wire nails.

Inflation creates ripples in prices Construction materials are not spared from inflation. Records from the National Statistics Office (NSO) would show that on a monthly and yearly basis, varying inflation rates are experienced in selected construction materials. NSO data for NCR would show that from 2001 to 2009 inflation rate for electrical materials vary drastically. In 2001, inflation rate was recorded at 4.7%. In 2002, it dropped to a low of 0.6%. By 2003, it again climbed to 2.3% and reached 6.6% in 2004. Then it skyrocketed to 10.3%in 2005, 11.5% in 2006 but mellowed down to 8.6% in 2007. In 2008 it slightly rallied to 9% and in 2009 plummeted to 3.2%. Please refer to Table A below for inflation rates from 2001-2009. This erratic behavior is evident also to other types like carpentry, masonry, painting, plumbing, tinsmithry and miscellaneous construction materials. Historical data will show that inflation rates for selected construction materials may be tied up with overall socio-economic condition of the country in a specific period of time. It is therefore safe to say that those involved in the construction industry must always be aware of the socio-political climate in the country as well as the economies of other countries. Analysis of these data will help the contractors price their products and services more realistically for the benefit of both the client and the providers of said construction services.

TABLE A. Year-on-Year Inflation Rate on the Construction Materials Retail Price Index 2001-2009 Year All Carpentry Electrical Items Materials Materials

Masonry Painting Plumbing Tinsmithry Materials Materials Materials Materials & Related Materials Compounds

Miscellaneous Construction

2001

4.6

2.4

4.7

5.7

6.5

3.5

2.3

16.9

2002

1.0

-0.6

0.6

2.0

1.3

3.3

4.8

2003

3.3

0.2

2.3

-0.6

4.2

2.4

3.7

29.3

2004

6.7

5.6

6.6

6.5

4.8

6.8

1.6

23.2

2005 9.8

10.0

10.3

8.2

9.0

10.8

8.7

12.1

2006

5.9

2.8

11.5

5.1

6.9

4.9

1.1

4.2

2007

4.9

0.8

8.6

4.7

6.2

4.7

-0.3

9.9

2008

9.2

7.6

9.0

7.1

6.1

5.2

1.9

33.8

2009

0.5

3.3

3.2

4.2

4.1

2.0

2.6

-24.5

34â&#x20AC;&#x192; Philippine Construction&Designâ&#x20AC;&#x192; July 2012

Publishers: Philippine Construction & Design

General

Readership, Distribution and Circulation

Philippine Construction and Design is published to •serve the construction industry and all its stakeholders

The publication is published in the web and is made •available for free to all interested. The web has potentially

particularly architects, engineers, contractors and suppliers, providing them news summaries and information on latest developments, management technologies, new products and equipment, cost movements of construction materials, profiles of leading personalities in the industry, construction projects, etc. The magazine will also discuss issues and topics that are important to the construction trade. It hopes to serve as a voice for the industry as a whole as well as provide information that construction professionals will find useful to their business and profession.

millions of readers all over the world though the magazine’s primary target readers are the professionals and decision makers involved in Philippine construction, which is estimated to be over 100,000 stakeholders in the industry. Readers include major decision makers and top executives that make buying decisions, leading government officials, and other professionals involved in planning, investing, design, and construction.

Publisher Publishers are Filipinos based in Thailand with 40 •years of experience in publishing since 1972. They

pioneered in the publication of construction, business and tourist publications in Thailand, publishing Siam Construction, a monthly trade journal for the construction industry, What’s On This Week, What’s On Pattaya, What’s On Phuket, What’s On Chiangmai and What’s On Samui, all tourist publications located in major travel destinations in Thailand. They also publish a newspaper Samui Express in the island of Samui. Over 20 years ago in the Philippines, they also published Philippine Civil Engineer, a professional publication published for Philippine Institute of Civil Engineers (PICE);Philippine Construction Management, a professional journal for construction executives;and various directories for professional buyers like the Philippine Construction Directory, Philippine Export Directory, and Philippine Professional Buyers Guide. However, they closed their Philippine operations around 10 years ago after almost 20 years in the country due to political problems at that time and the ensuing financial turmoil. The Publishers plan to reestablish their operations initially with this construction publication, Philippine Construction and Design, to be followed with other magazines involving trade and logistics, medical hospitals and clinics, travel and hotel management within the next 24 months after the launch of Philippine Construction and Design.

Philippine Construction & Design is an e-magazine published monthly by Saiber Media Inc. with business address at 1524, City & Land Megaplaza, ADB Ave. cor. Garnet Rd. Ortigas Center, Pasig City, e-mail add: phil.constructionanddesign@yahoo.com.ph|saibercraft@yahoo.com, for free online subscription: www.issuu.com/philippine construction and design. Send email for your comments and suggestion to saibercraft@yahoo.com or contact Tel. No.: 945.8510.

July 2012

Philippine Construction&Design 35

36 Philippine Construction&Design July 2012