Philippine Construction Highlights Today

PHILIPPINE CONSTRUCTION HIGHLIGHTS TODAY

Philippine Constructors Association, Inc. May 2011 Volume II, Issue 2 PCAB blazes a trail as it pilots the AMO Orientation Course .Pasig City– The approved mandatory ity of the Philippines (CIAP), Philippine requirement for the 16-hour Authorized Constructors Association, Inc. (PCA), Phil- Managing Officers’ (AMO) Orientation ippine Contractors Accreditation Board Course spearheaded by the Philippine (PCAB), and AMOs from a wide array of Contractors Accreditation Board construction firms. (PCAB) was piloted last April 29-30, The AMO Orientation Course was organ- 2011 at the Escobar Training Center, ized to apprise all participants of the exist- Philippine Constructors Association, Inc. ing construction laws, codes and standards, (PCA) secretariat. including guidelines governing occupa- In attendance were more than 32 repre- tional safety and health in the industry. sentatives from different construction The AMOs show off their certificates of Also plowed in the orientation were vari- AMO course completion bodies in the Philippines, including Na- ous construction management applications. tional Constructors Association of the Taking into account the escalating de- There to speak were PCAB Chairman Philippines (NACAP), Construction mands of the contracting business and Engr. Ramon Allado, PCAB Executive Manpower Development Foundation the recent untoward mishaps in many Director Rene Fajardo, Atty. Apollo San- (CMDF), Construction Industry Author- construction sites, the need to congre- galang, former Build-Operate-Transfer gate all AMOs and kit them out with (BOT) Center Executive Director Atty. such knowledge was deemed impera- Pascual De Guzman, Engr. Arnel Boston tive. and Engr. Ric Fernandez. The orientation came up a scratch as The first day of the orientation covered participants were able to allude to the topics relating to construction laws, codes issues that they intended to raise during and regulations, PCAB regulations, and the open forum that followed the pres- other applicable laws such as PPP, BOT, entations. The certificate of course BOI and labor. completion awarded to each participat- Training path in the industry and construc- ing AMO is now a requirement in the PCAB Chairman Ramon Allado cooks tion project management were the subjects release of PCAB license registration, up the orientation as he discusses con- whether renewal or original issuance. struction laws, codes and standards raised and hashed over on the second day.

PCA asserts position on Wage Increase at the Tripartite Industrial Peace Council

Manila— Philippine Constructors Asso- issue any wage order to increase the The TIPC functions as the main consul- ciation, Inc. (PCA) Executive Director wage, provided that the existing contracts tative and advisory mechanism attached Manolito Madrasto attended the Tripartite of the construction projects under which to the Department of Labor and Em- Industrial Peace Council (TIPC) meeting all affected personnel are working are ployment (DOLE) with the Bureau of held last April 14, 2011 at the Bayview correspondingly fine-tuned with auto- Labor Relations (BLR) acting as its Hotel, Manila. matic adjustments in the wage to cover Secretariat. distortion that will occur to all other per- Among its functions are to monitor the Given a whirl in the said meeting was the sonnel remunerated higher than the mini- full implementation of all tripartite in- increase in minimum wage called for by mum wage. different sectors in the construction indus- struments, to review all existing labor try. Another meeting is set to happen on May policies, and to serve as a communica- 2, 2011, in which developments in the tion channel among government, work- The PCA will not raise any objection on subject discussed in the said meeting will ers and employers. the proposal should the regional bodies be discoursed about. PHILIPPINE CONSTRUCTION HIGHLIGHTS TODAY April GMM: Sec. Singson touches on opportunities and reforms Pasig City -The General Membership -member countries in terms of infrastruc- Meeting held at the Oakwood Premier ture-building, Sec. Singson emphasized Joy-Nostalg Center last April 29 was that “doing the right projects at the right another success story for the Philippine cost at the right quality” will be DPWH’s Constructors Association, Inc. (PCA) as guiding tenet starting 2011. Public Works and Highways Secretary He guaranteed that for the duration of his Rogelio Singson graced the event with term as the DPWH chief, openness, trans- his expounding words. parency, major reforms and traceable re- ―Reform is ongoing in DPWH to as- sults in all dealings and transactions in the sure you that this will be a much new department will unyieldingly be set in DPWH Secretary Rogelio Singson builds up different ballgame.‖ stone. the hype on the underway reforms to be im- plemented by the DPWH under his helm These were the very words of Sec. With the P1.1 billion saved by the DPWH Singson as he got things rolling in the in government funds from July 2010 to 2011 was aimed at making the national forum themed “Idea of a DPWH-PCA March 2011, Sec. Singson substantiated budget duly utilized to address the press- Partnership for Better Infrastructure the open, competitive and transparent ing concerns of the Filipino people, and Delivery.” biddings that they uphold in the agency to improve the budget process through under his helm. the involvement of Filipino citizens in the preparation of the FY 2012 National Also hashed over in its entirety was the Budget. Medium-term Infrastructure Investment Program, which involved the FY 2012 He assured that no stone will be left un- budget approaches that shall be employed turned as the DPWH earmarks the 2012 by the agency as it capitalizes on the P90- budget to the upgrading, paving and re- 100-billion budget allocated for DPWH habilitation of national roads, the estab- projects this year. lishment of tourist destinations and improvement of national airports, RoRo Among the priority projects cited by Sec. ports, food production areas in economic Singson were the first five public-private zones, and the construction of 5-m wide partnership (PPP) projects slated this PCA members and representatives from and 20-m long loading and unloading year, the improvement of arterial and sec- different construction bodies pin their ears bays. to Sec. Singson’s presentation on DPWH ondary roads, the upgrading of design Priorities and Strategies standards roads and bridges together with In its aim to streamline the bidding proc- the strict enforcement of the anti-truck ess in DPWH towards procurement re- He said that the DPWH’s vision is to overloading campaign it seeks to espouse, form, Sec. Singson also reeled off that become an utterly-effective and effi- flood control projects in some major ur- the former 20 documentary requirements cient government agency by 2030, im- ban areas, and climate change adaptation. are now down to 5 downloadable docu- proving the life of every Filipino ments. This, according to him, was de- He also underscored the partnership that through quality infrastructure. signed to preempt questions of disquali- the DPWH recently entered into with fication due to failure to submit com- This year, the DPWH sets its sights on Civil Society Organizations (CSOs) in its plete and timely documents. sustaining economic growth and reduc- aim to go against manipulations in project ing poverty by creating infrastructures procurements, in so doing announcing Singson beat the drum for great opportu- that will facilitate the mobility of goods that President Benigno Aquino’s 10 nities for all constructors to participate in throughout the land and providing con- months of reform has finally resulted in a the public biddings for the upcoming big struction services like irrigation sys- more competitive, upstanding and high- infrastructure projects slated this year, tems and flood control programs that principled DPWH. singling out PCA as its equal in improv- will take full advantage of our water ing the Philippine construction industry. resources. Also accentuated in his talk was the Budget Partnership Agreement between ―I have always considered PCA our part- Consistent with Sec. Singson personal the DPWH and Bantay Lansangan, a partner in developing good infrastructure advocacy, safeguarding the environ- nership of road sector stakeholders, which projects for the Philippines,‖ he said. ment through building safe infrastruc- includes the PCA as Adviser, formed to In attendance were a total of 103 PCA tures is also one of the DPWH’s major make all business processes within the members and representatives from dif- advocacies this year. DPWH transparent. ferent construction bodies in the country, Letting drop that the Philippines is al- In a nutshell, Sec. Singson shared that the including NACAP Board members and ready outmaneuvered by other ASEAN inking of the agreement last March 11, the entire PCAB Board. May 2011 Volume II, Issue 2 CHINCA invites ACF, PCA to Beijing DPWH to save up to Beijing, China—Following the first Construction Committee Member Billy P7 billion International Infrastructure Investment Belisario, PCA Corporate Secretary & The reformulation of the infrastructure and Construction Forum (IIICF) held Legal Counsel Atty. Ma. Elena Go Fran- project cost assumptions of the De- last May 11-12, 2010, the ASEAN cisco and PCA Executive Director Mano- partment of Public Works and High- Constructors Federation (ACF) and the lito Madrasto. Also with them is newly ways (DPWH) is expected to yield a Philippine Constructors Association, appointed PCAB Chairman Ramon Al- considerable P7 billion worth of sav- Inc. (PCA) was invited again to attend lado. ings this year. the 2nd IIICF this May 26-27 in Bei- The theme ―Investment Cooperation En- jing, China. ergizes the Sustainable Development of The reassessment process is expected to considerably cut back the cost of To make up the ACF delegation are Infrastructure,‖ for this year’s forum will infrastructure projects to be imple- ACF Chairman Jorge Consunji, ACF be on resources development and infra- Vice Chairman Anthony L. Fernandez, structure construction, investment coop- mented by the DPWH in the course of ACF Secretary General President eration and interconnection, green low- DPWH Secretary Rogelio Singson’s Ronaldo L. Elepaño, Jr. and REID carbon infrastructure and China’s engi- tenure in office. Foundation Deputy Team Leader Raffy neering technology and will showcase Sec. Singson aims at having the whole Hernandez. exhibits, project presentations, post- length of arterial and secondary roads conference services and avant-garde in- and bridges rehabilitated and paved by The PCA delegation is composed of: formation access. the end of Pres. Benigno Aquino’s PCA President Levy V. Espiritu, PCA term, who appointed him as Transpor- Director Rosario Evangelista, PCA PCA and CHINCA are expected to sign a Director Noel Policarpio, PCA Public Memorandum of Understanding & Coop- tation chief last June 2010. eration (MOU&C) during the affair. Department of Budget and Manage- ment (DBM) Secretary Florencio Abad said that Sec. Singson’s team DPWH Sec. Singson to grace Beijing Forum was able to generate as much savings as they were able to substantially slash Manila - In an exclusive interview, & Industry Secretary Gregory Domingo the costs of infrastructure projects. DPWH Undersecretary Pye Yabut dis- and participated in by Sec. Singson. President Aquino said in his speech closed to the PCA that DPWH Sec. th Corollary to the forthcoming trip, Sec. during the 75 anniversary of the Rogelio Singson has accepted the invi- Singson has thus invited the PCA Delega- DBM that the renewed culture of gov- tation of the China International Con- tion to join him in his proposed meetings ernance that he promised to bring forth tractors Association (CHINCA) to their with the China Development Bank, the is already being entrenched in the way 2nd International Infrastructure Invest- China Export—Import Bank, and the agencies under his helm work. ment and Construction Forum (IIICF) Ministry of Commerce in his drive to in Beijing, China this coming 26-27 draw the mainland Chinese investors and Meanwhile, Sec. Abad said that re- May, to speak on the infrastructure in- construction contractors to actively par- views on project cost estimates are vestment opportunities in the Philip- ticipate in the Philippine PPP Program. done to cash in on procuring same pines. type of projects in the future at a much The PCA has accepted the offer of Sec. lesser cost and eventually allowing the This is welcome news to the PCA as it Singson and has started to formulate (1) a implementation of these projects to likewise has a high-level delegation list of potential PPP Projects; (2) a list of turn up with good quality. The cost positioned to attend the same event, PCA members that are prepared for PPP estimate review done by the DPWH is together with the ACF delegation led Projects; and (3) the Rules of Engagement expected to lower the project costs of by its current Chairman, PCA Past that the members of both PCA & all infrastructure projects on the cards President Jorge Consunji. CHINCA shall adhere to in the Philip- by as much as 20%. The invitation stemmed from the recent pines for PPP projects as well as other Both departments hope that the gen- PPP Roadshow to China led by Trade non-PPP Projects. eration of savings from the cost pro- jections pans out after the review. Published by the Philippine Constructors Association, ―Other agencies will be similarly Inc. evaluated, and we are optimistic that 3rd Floor, Padilla Building the same level, or at least significant Francisco Ortigas Jr. Road, Ortigas Center, Pasig City 1605 level of savings will be generated, Tel (632) 6312778/6313135 Fax (632)6312788 once the cost assumptions have been Email: [email protected] reviewed,‖ Sec. Abad said. PHILIPPINE CONSTRUCTION HIGHLIGHTS TODAY DOTC jacks up LRT-MRT O & M cost

Mandaluyong City—The previous P14 ate the railways are really capable of meeting billion project cost for the operation and the demands of the contract, the government maintenance of the Light Rail Transit Line 1 intends to keep the financial capacity of all (LRT 1) and Metro Rail Transit 3 (MRT 3) interested firms in check. was jacked up to P15 billion as Department Consistent with the jacking up of the project of Transportation and Communications cost of the O&M contract of the two rail- (DOTC) Undersecretary Ruben S. Reinoso, ways, the requirement for the value of the Jr. said the previous estimate did not include similar contract bidders have completed in DID YOU KNOW? the power cost. the past was also hiked up from P7 billion to Buildings in the District of Columbia Of the almost 50 firms that have submitted P7.5 billion. (DC) cannot be taller than 13 floors. their expressions of interest in bidding for This is so that people who cross the Reinoso, who is concurrently the chairman of the LRT and MRT contract, 10 have already threshold of whichever part of the city the Special Bids and Awards Committee of could catch a glimpse of the obelisk bought bid documents as of May 4. the Department of Transportation and Com- Washington monument erected near the The bid documents worth P500,000 will be munications, announced in a conference last west end of Washington, DC. available until July 10, a day before the month that only firms that have completed a actual bidding scheduled on the 11th. Only similar project in the past with a value of at NOTICE TO ALL firms with these bid documents will be al- least 15% of the approved project cost for the CONTRACTORS lowed to join the pre-bid conference on May two railways will be allowed to join the bid- Please be advised that in a refer- 14. ding. endum held on May 4, 2011, the ―The deadline for bid document purchases The operations and maintenance of the two Philippine Contractors Accredita- was extended to avoid limiting bidders that metro manila railways is among the priority tion Board (PCAB) RESOLVED want to partake in the auction,‖ Light Rail projects of the administration this year. that the policy on AMO Written Transit Authority spokesman Hernando T. Examination as a Pre-requisite to Cabrera said. REMINDER the Filing of New License Appli- cation (Board Resolution No. 183, These firms include the Metro Pacific In- General Membership Meeting Series of 2011), be made effective vestments Corp., Ayala Corp., DM Consunji June 24, 2011, 12 noon earlier, that is, from July 31, 2011 Inc., Optimal Infrastructure Development, Oakwood Nostalg Premier Inc., Sumitomo Corp., Marubeni Corp., to May 16, 2011. ADB Avenue., Ortigas Center, SERCO, Abratique and Associates Philip- Pasig City pines, Inc., Ecorail Transport Services, Inc. - Rene E. Fajardo Guest Speaker: and Autre Porte Technique Global, Inc. Officer-in-Charge Honorable Renato Puno Source: The Philippine Star To ensure that contractors who eye to oper- Retired Supreme Court Chief Justice

Study: PHL to lose P200-B in the next ten years for road upkeep City of Manila—A study conducted by Philippine road network, 1.5 million are ship would be an imperative tool towards Paris Manila Technology Corporation trucks and 50 percent of them are recur- effective upkeep of Philippine road infra- (PAMATEC) showed that the Philip- rently teemed with overloaded cargos. structures. pines is bound to lose about P200 billion PAMATEC suggested that if all existing ―The private sector can come in and take in the next ten years as it does up its roads estimated to cost P1.21 trillion are over the anti-overloading campaign of the 30,000-kilometer network of substan- properly maintained and kept in check, their government over the next 10 years. The gov- dard national, provincial, municipal and lifespan could last at least 20 years. The ernment does not spend a single centavo at barangay roads. study showed that with 10 percent overload- the onset of the project while at the same In a statement, PAMATEC president ing rate, however, the normal 20 years life- time is assured that national, provincial, mu- and chief executive Hubert d’Aboville span of a road infrastructure in the Philip- nicipal, and barangay roads are adequately said that 50 percent of the country’s pines is reduced to 14 years while with 20 protected,‖ d’Aboville said. percent, this lifespan is even slashed to 10 thoroughfares are depreciated by unbri- D’Aboville said that truck drivers should be years. dled overloading of trucks and vehicles responsible for their freights and should not and would need all-out repairs in the The study recommended that the govern- be allowed to plot their courses when over- next decade. ment taps the private sector in curbing overloaded. He advised that the government im- According to the study, of the 8 million loading trucks and in preventing the future plements a hard-line awareness campaign vehicles that take traverses through the depreciation of the country’s network of against overloading to bear this advocacy. roads. He stated that public-private partner- May 2011 Volume II, Issue 2 May 2011 Volume II, Issue 2 PPP to address corruption issues on infra, says Wanted: Applicants for Purisima CIAC Arbitrators

City of Manila—―We look forward to won’t be one big event or one big case. It’s Pasig City—The PCA is in receipt of a working with you in a public-private part- a journey. And we’ve already started that request from the Construction Industry nership so that we can create a better Philip- journey,‖ Purisima said. Arbitration Commission (CIAC) for nominees as future CIAC Arbitrators. pines.‖ According to him, since the national This was how Finance Secretary Cesar Puri- boundaries are already obscuring, what As such, the PCA is presently on the sima got down to business with the US- seems to be of greater importance now is look-out for men and women of distinc- ASEAN Business Council during his US for the Philippines to become a part of a tion within the PCA membership in whom the business sector as well as the visit last month. global supply chain of products. And in order to facilitate that, the country must government can have confidence as Purisima was in Washington, DC to grace have the right infrastructure. CIAC Arbitrators. the International Monetary Fund (IMF) and Along the lines of building infrastructures, Those interested would have to meet the World Bank meetings with Ernie Bower, following requirements: senior adviser and director of the Center for he also underscored how having blinkered Strategic and International Studies, and to policies in the implementation part could 1. At least 40 years of age at the time of thrash out the governance and corruption suppress the principle behind realizing application; issues in the Philippines especially those these projects. 2. Holder of a Bachelor’s degree in relating to infrastructures. ―You may have the right infrastructure, but Engineering, Architecture, law or Among the issues brought to the table were if your policies are inward-looking, then Accountancy; issues on graft and corruption, poverty, tax again you won’t be able to participate 3. Licensed to practice his/her profes- evasion and smuggling taken precedence by completely,‖ he said. sion in the Philippines and must be government officials behind closed doors. He took note that the go-getting PPP pro- nominated by his/her professional organization through a duly ap- As said by Purisima, the rapid growth of gram being pushed by the present admini- proved Board resolution; population in the Philippines by 2.1 to 2.2 stration is one way to make the Philippines percent should be accompanied by rapid competitive as it will be carried out with 4. At least ten (10) years in the practice growth in infrastructures by 6 to 7 percent the assistance of internationally-acclaimed of his/her profession and ten (10) so as to maintain equilibrium. consultants who have the capacity to turn years of work experience in con- this vision into a highly-viable and promis- struction management-related activi- Laid emphasis on were issues on infrastruc- ing venture. ties or in handling of construction ture gaps and misdirected policies on imple- He assured that through the merger of the disputes and/or contract negotia- menting projects, which he maintained as tions; the roots of the abating economy of the private and public sectors for a rational and Philippines. According to him, the current transparent endeavor, the Philippine econ- 5. In full enjoyment of his/her civil administration is keen at purging these omy shall slowly but surely pull through. rights and must not have been con- victed of crime involving moral tur- sticking points stifling economic growth in Purisima said that while the government order for development to materialize. pitude or any crime for which the prefers solicited proposals, it is still open penalty imposed upon him/her is He cited the public-private partnership to unsolicited proposals on unique tech- over six (6) months of imprisonment; (PPP) program of the country as its spring- nologies that may well-aid the country in and board towards realizing this end. implementing the PPP infrastructure projects slated this year. 6. Willing to undergo all screening ―Obviously, the fight against corruption requirements and attend an accreditation course for arbitrators to be conducted by the CIAC. CoST Phils secures WB Contract Those interested or if you know of some- one within the PCA family that can qual- Pasig City—The World Bank Philippine and the Philippine Government Electronic ify and interested to be a CIAC Arbitra- Country Ofice has recently awarded a Procurement System or PhilGEPS to en- tor, may kindly submit their resume’ to US$30,000 Consultancy Contract to the sure that the 31 (Material Project Informa- the PCA Secretariat for the proper proc- CoST Philippines Foundation (CoST Phils) tion (MPI) are uploaded and disclosed to essing. for the Disclosure, Assurance and Report the PhilGEPS website for public viewing, Disputes always occur in construction Engagement covering three (3) on-going with the COA acting as the Assurance projects and dispute resolution through World Bank-funded DPWH Projects under Entity checking on the veracity of such arbitration or any of the alternative dis- disclosures and further reporting whatever the NRIMP2 Program. pute resolution methods is much better Causes of Concerns are found during the The CoST Phils Project shall involve the than settling things through the formal engagement, which covers the project life DPWH, the Commission on Audit (COA) court system. cycle. PHILIPPINE CONSTRUCTION HIGHLIGHTS TODAY DOLE sheds light on service & labor-only contracting City of Manila—Stakeholders were fi- So as to meet the third prerequisite, a and security of tenure. contractor should have capital stocks and nally clarified as Department of Labor Such are bordering on the entitlements subscribed capitalization in the case of and Employment (DOLE) Board Attorney due regular employees, except that the corporations, tools, equipment, imple- Joel Petaca explained the legal aspects of security of tenure of a contractual ments, machineries and work premises service contracting during the recently- worker is co-terminus with the contract st directly employed by the contractor to concluded 1 National Forum on Labor- between the principal and the contrac- complete the service outsourced. Contracting. tor or with the specific phase of the job Among the issues that were shed light on Petaca said that without meeting the in which he is engaged. aforesaid standards, a contractor is reck- were the rudiments of contracting and Conversely, Atty. Petaca stressed that oned rather as labor-only than being a subcontracting arrangements, employ- while the contract between the principal legitimate contractor. ment provisos, employer-employee rela- and the contractor comes to a termina- tionships, and contractual employees’ This type of contracting, according to tion, the relationship between the con- rights and privileges, coming to grips with him, can never be engaged in by coop- tractor and the workers continues on a Department Order No. 18-02 of the Labor eratives not inherently engaged in the floating status. Code entitled Rules Implementing Arti- contracting business. cles 106-109. He added that the status backslides to In such a case, Petaca stated that the the contractual status as the contractor At the outset, Atty. Petaca expounded on employer-employee relationship exists enters another service contract. contracting and subcontracting as two not between the principal and the con- permissibly interchangeable terms in the tractor but between the principal and the Philippine context. workers brought in by the contractor on CITC seeks Labor ―Contracting, which can be used inter- board. Code amendments on changeably with subcontracting, is al- The delineation is said to be crucial in lowed in the country; it is a management standardizing the liabilities of contrac- Construction prerogative subject to legal limitations set tors and principals. out in D.O. 18-02,‖ he said. Subcontracting Atty. Petaca also spelled out the relation- As opposed to labor-contracting, he ex- ship that exists between the principal and City of Manila—Recent developments plained that legitimate contracting in- the contractor in labor-only contracting, in construction industry’s industrial volves a trilateral relationship—first in a the latter merely being an intermediary peace has moved the Construction Tri- service contract between the principal and between the principal (as the direct em- partite Industrial Peace Council (CITC) the contractor, and second, in a contract ployer) and the contractual workers. to conduct a review of the provisions of of employment between the contractor DOLE Department Order No. 19, Se- He said that any matter vis-à-vis the rela- and his workers. ries of 1993 providing for the tionship existing between the two parties ―Employment Guidelines in the Con- According to Section 5 of the Rules Im- is to be sought legal resolutions through struction Industry.‖ plementing Articles 106-109, labor- the Civil Code, in lieu of the Labor contracting refers to an arrangement in Code. The review moved for the change in which a contractor or subcontractor sim- nomenclature of construction subcon- In the Philippine context, the Labor ply conscripts and assigns workers to do tracting to ―trade contracting‖ or ―trade Code stands to govern employment prac- certain jobs for a principal without prac- subcontracting‖, as such activities par- tices and labor relations, whereas the ticing the right of control over the work of takes of the use of specialized trade Civil Code primarily deals with family the contractual worker and without having skills that a general/prime contractor and persons relations which include adequate capital relating to the jobs and may require and to be differentiated properties, successions, obligations, con- services of the recruited contractual f r o m l a b o r - only contract- tracts and subcontracts. worker. ing/subcontracting. Likewise tackled in the forum were the This arrangement is prohibited by law as The CITC is the official tripartite body rights and privileges of a contractual it demonstrates the incapacity of a con- that addresses labor standards & rela- employee. tractor to meet the requirements of a le- tions, occupational & safety concerns in gitimate contractor, which include having Stipulated in the 8th section of the D.O., the construction industry, composed of a business independent of a principal, the amended Labor Code lays down the representatives of construction contrac- having control over the performance of rights and privileges of contractual em- tors associations; construction workers’ his workers, and having adequate capital ployees as safe and healthy working con- organizations; and government agen- to sustain the contract. ditions, labor standards, social security cies and instrumentalities that regularly and welfare benefits, self-organization deal with the construction industry. May 2011 Volume II, Issue 2 Developers’ construction malpractices, unsafe?

Pasig City—With the recent construction fire protection system works, elevator in- puts a question if such takes away any accident at the Makati Eton Properties site stallation works, wall finishing works, ceil- responsibility on the part of the contrac- which claimed 11 lives of construction ing finishing works, floor covering works, tor, should the materials supplied be workers caused by the collapse of a work electronic, communications & IT wiring found to be considered substandard. works, and many more. platform gondola, the questionable practices The spate of construction accidents now of a great number of private developers has The practice has done away with the hiring poses questions to the construction indus- again been put at the forefront of inquiry. of a prime or general contractor and instead try: provides one contractor of what is called an In recent years, in the interest of lowering 1. What is now the responsibility of the construction costs, several private develop- ―Attendance Fee‖ to cover for so-called coordination work with all the other nomi- Project Developers and Construction ers have resorted to implementing their con- Project Managers with regards to the nated contractors hired by the developer. struction works through what is technically enforcement of occupational and called ―By Administration‖. The problem with such practice is that even safety standards that should be im- The practice calls for the hiring of a Con- with the ―Attendance Fee‖, it does not result plemented in all construction sites? into accepting full responsibility for all ac- struction Project Manager who is then 2. What is now the responsibility of tasked to coordinate and approve the vari- tivities of the nominated contractors/ subcontractors as is usually the case for a Project Developers and Construction ous activities that make up an entire project Project Managers with regards to Prime or General Contractor. construction work. substandard construction materials? The choice of nominated contractor belongs The various construction activities are then 3. Does it mean that the Project Devel- to either the Project Developer/Owner or the parceled out to various entities covering opers and Construction Project Man- Construction Project Manager and hence specific works such as site excavation agers involved in such practice of works, foundation works, superstructure should take the full responsibility, similar to a Prime or General Contractor had one been construction ―By Administration‖ works, interior partition works, exterior constitute that of the practice of a hired. cladding works, electrical works, plumbing General Construction Contractor? works, water system works, air- The predominance of Owner-supplied mate- conditioning, heating & refrigeration works, rials is now prevalent and such a practice 4. Do they need a PCAB License?

Philconstruct 1st Green Construct Philconstruct Mindanao 2011 Forum Visayas 2011 Davao City—The Philconstruct and Tech- Pasig City—PCA, with a focus on devel- Cebu City—Backed by a union of the nology Forum Mindanao 2011 to be held oping a unified industry standardization country’s most respected industry organi- 07-09 July 2011 at the Convention Hall, program, is leading the industry’s shift in zations, Philconstruct Visayas 2011 to be Bangko Sentral ng Pilipinas, Davao City . building, design, and construction as major held on 01-03 September 2011, Water- The event is being co-organized with the players starts to focus on constructing for a front Cebu City Hotel & Casino, has DCACI and supported by the PSVARE. sustainable future by launching Green quickly established a reputation as the ―Our two organizations will continue to Construct to be held under the banner of new meeting hub of clients, contractors, put in great efforts to give exhibitors and Green Philippines 2011 on 17-19 August and specifiers involved in the building sponsors a show that brings together the 2011 at the SMX Convention Center. and construction industry. The show is construction industry’s decision-makers ―This is without a doubt the only place being co-organized by CCA, endorsed by from around the Mindanao region that where you can meet key decision-makers PSVARE and supported by ACEL, IIEE, include architects, designers, engineers, eager to discover the latest green technolo- NAMPAP, PICE), PIID, and the UAP. consultants, contractors, builders, develop- gies, products, and services. This is the ―Modesty aside, allow us to mention that ers, and other related stakeholders, experts, perfect way to build your client base and this exhibit has three times more booths professionals, and traders in one conven- generate sales. It is the definitive event for and five times more sales than any other ient venue for business. The best is yet to showcasing your products and services to exhibit ever done in this part of the coun- come.‖ —Wilfredo H. Guerzon, Jr., Phil- this discriminating market.‖ --Cezar ―Boy‖ try. This is the only event where you will construct Mindanao 2011 Chairman. Punsalan, Green Construct Chairman. meet the real buyers from the entire Last year’s show generated impressive The show will also host the 2nd Sustainable Visayas region and exhibitors will never numbers that includes Total Exhibitors: 71 Building Technology Conference which run out of chances to discover new busi- companies, Total Booths Occupied: 88 will once again bring together a selection ness opportunities, network with the right booths, Total Space Occupied: 1,634 sq. of renowned local and international sus- decision makers, and get involved with m. net, Total Registered Trade Buyers: tainability experts to discuss in detail best the next available project. This is the only 2,316 and an impressive reported on-site practices and solutions for greening the place you should be at!‖ —Bernard Vonn sales reaching 42.5 million pesos. industry. I. Sia, Philconstruct Visayas Chairman. PHILIPPINE CONSTRUCTION HIGHLIGHTS TODAY Home Depot launches new store in Makati Makati City— The Home Depot got un- organizations, members of the press and The new store will cater to the pro- der way as it successfully launched its new fessional demands of architects, inte- three-storey, 12,322-sq.m. store-within- rior designers, engineers and other store branch in Chino Roces Ave., Makati related trade professionals and was last May 9, 2011. especially put up to address the escalating demands of Makati and its Among the head honchos spotted in the nearby cities for construction materi- said event were Makati City Mayor Hon. als. Jejomar Binay, Erwin Binay, Jr., Philip- pine Constructors Association, Inc. (PCA) ―The customers can look forward to more surprises from The Home De- President Levy Espiritu, PCA Execuive The new 3-storey Home Depot Makati branch Director Manolito Madrasto, United Archi- launched last May 9, 2011 pot… More stores, more products, tects of the Philippines National President better service, competitive prices for our customers are always our primary Archt. Ramon Mendoza, and Integrated trade partners. Accredited Professional Organization of agenda,‖ Home Depot said. Its management grandstands its added Architects (IAPOA) Director Archt. Anto- Free internet connectivity and soon- third floor-feature especially designed to nio Loveria. to-open café inside the new branch house an offbeat events hall that can play are just two of the indulgences Home Also in attendance were presidents of the host to a wide array of trade events like Depot customers are to bargain for in building and construction industry’s elite exhibits, conventions, corporate meetings the next few months. and other special functions. PCA PERSONALITY OF THE MONTH Tripartite Golf 2011 Results Baguio City—The annual Summer Tri- For the Team Play results, ACCI partite Golf Tournament utilizing both came out as Champion with a total of golf courses of the Baguio Golf & Coun- 972 points. Coming in as 1st Runner try Club and the John Hay Golf & Coun- -up was the PCI/ACEL Combine try Club was held last 12-13 May 2011 with 962 points. And of course, 2nd and was participated in by the PCA Golf Runner-up was the host EEGC with Club/ACEL Golf Club Combine; the 949 points. ACCI Golf Club; and this year’s host For the Individual Play results, Over- Electrical Engineers Golf Club or EEGC. all Champion was Cesar Lacuna with RONALDO R. ELEPANO, JR. The PCA/ACEL Golf Clubs Combine 97 points. Jun, as he is fondly called, a product of fielded a total of 32 players while the Division One Champion was Kit An- the De La Salle University and a dedi- ACCI Golf Club reported in 33 players. geles, 1st Runner-up was Arthur Am- cated family man, is the incumbent Sec- Meanwhile, the host EEGC turned up paya and 2nd Runner-up was Ryan retary General of the ASEAN Construc- with 28 players. Abdon. tors Federation. Concurrently, he is the current PCA 1st Vice President and A Guest Players’ Group also signed up Division Two saw Fr. Bonie Chavez Philconstruct Committee Chairman. for the 2-day play bringing the total par- topping as Champion, 1st Runner-up ticipants to 120. A former ACEL President, he has exten- was Carlito Chua and 2nd Runner-up sive management experience in the field The tournament was played using System went to Mar Rodelas. of construction equipment management 36 covering Division I, II, III and the Division Three Champion was and leasing as well as in overseas con- Guest Division with points to count on Robert Divina, while 1st Runner-up struction operations, and is now Presi- all 3 divisions to determine the results of went to Jun Sevilla, Jr. and 2nd Run- dent of DMCI Global Inc. the team play. ner-up was Rik Borger. Jerry Tan came out as Champion for the Guest Division. Meanwhile, special awards went to Dennis Almario for the Longest Drive, to Jack Santos for the Most Accurate Drive and for Nearest to the Pin went to Vicman Fermindoza.