CM650 - Assignment no.

Name: Beny B. Sahagun Jr. Date: Dec. 6, 2020

Subject Specialist: Dr. Guillermo O. Bernabe MSCM - 1C

Question #1 : Discuss the Philippine industry sector

1.1.      Output
          1.2.      Input

Ans.:

Among the Industry sector, Construction posted the highest year-on-year growth rate. It

tripled at 15.9 percent for the year 2018, significantly higher than the previous year’s

growth of 5.3 percent. The share of Construction industry to GDP grew to 6.8 percent

for the year 2018 brought about by increases in both public and private construction

activities.

1.1 The Construction output, as measured by the Gross Value Added (GVA)

amounted to PhP 625.2 Billion in real terms in 2018, that’s a 15.9 percent growth rate

compared to last year’s PhP 539.3 Billion

1.2 On the other hand, Construction investments, as measured by the Gross

Value in Construction (GVC) valued at PhP966.4.0 Billion in real terms, a 15.1 percent

expansion compared from the PhP840.0 Billion investment during the same period in

2017.
Question #2:  Discuss the Industry Clients Sector
2.1.      Public Owners
           2.2.      Private Owners

Ans.:

2.1 Consist of national and local government agencies or units tasked to

implement construction projects intended for public use/service. Currently, Government

infrastructure investments (valued at Php219.6Billion in real terms), expanded by 13.5%

in 2017 due to the implementation of infrastructure projects under the Build Build Build!

Program to realize the golden age of infrastructure

2.2 On the other hand, private owners refer to non-governmental entitites

requiring services for residential, commercial and/or industrial construction. As for its

contribution to the economy, private construction activities in 2017 (valued at Php634.1

Billion in real terms) increase by 3.3 percent, as there is a continuous demand for high-

rise residential condominium and commercial buildings

Question #3: Discuss the major types of governmental project owners

3.1 Infrastructure agencies
3.2 Non-infrastructure agencies

Ans.:

3.1 Infrastructure agencies refer to a type of government project owners whose

primary function is to provide the necessary public works or facilities within the areas of

responsibility. The bulk of public construction projects are implemented by these

infrastructure agencies:
A. Department of Public Works and Highways (DPWH)
B. Department of Transportation (DOTr) / Department of Information and
Communication Technology (DICT) (former Department of Transportation and
Communication (DOTC) )
C. Department of Energy (DOE)
 Under these three (3) agencies are several offices and government corporations
also classified as infrastructure agencies such as:
o National Power Corporation (NPC)
o National Irrigation Administration
o National Electrification Administration (NEA)
o Philippine Ports Authority (PPA)
o Local Water and Utilities Administration (LWUA)
o Bureau of Air Transportation (BAT)
o Philippine National Railways (PNR)
o Light Railways Transit Authority (LRTA).
Most of these agencies have decentralized organizational structures which allow for
infrastructure planning and delivery at the regional and district levels. The National
Housing Authority (NHA) is also part of this group

3.2 These agencies undertake construction projects that are merely incidental to
their respective mandates such as:
a) School buildings Department of Education (DepEd), Commission
on Higher Education (CHED) and Technical Education, Skills &
Development Authority (TESDA)
b) hospitals and health centers by the Department of Health (DOH)
c) tourism facilities by the Department of Tourism (DOT)
d) courthouses by the Department of Justice (DOJ)
e) development of export processing zones by the Philippine
Economic Zone Authority (PEZA),
f) various projects undertaken by Local Government nits (LGUs)
Question #4: Discuss Contracting Sector
4.1.      Formal Subsector
           4.2.      Informal Subsector
Ans.:

4.1 Formal subsector is composed of contractors duly licensed by the Philippine

Contractors Accreditation Board (PCAB).

4.2 Informal subsector consists of private individuals, mainly homeowners, who

hire skilled workers such as carpenters and masons as well as family labor for their

construction needs. The activities of this subsector are largely unmonitored.

Question #5: Population and geography using table

5.1 Registered number of licensed contractors

5.1.1 2000, 2001, 2002, 2003, 2004, up to 2018
Ans.:

Registered number of Contractors

12000
10909

10000 9719

8268
7844
8000 7336 7488
6574 6861 6719
5988 5962
6000 5505 5516 5747
5169
4781 4490 4665 4861

4000

2000

0
2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2017- 2018-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
**
Question #6: Licensed Contractors by Region using table

6.1 2000, 2001, 2002, 2003, 2004 up to 2018

Ans.:
STATISTICS OF PCAB LICENSED CONTRACTORS BY REGION
CONTRACTING FISCAL YEAR (CFY)*
REGION 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019**

Region 1 401 350 307 283 255 231 221 236 233 233 249 257 259 284 321 339 355 371 249
Region 2 211 228 225 190 174 144 131 142 155 156 158 161 174 206 234 244 283 325 203
CAR 213 228 225 207 258 223 220 244 260 279 315 310 329 349 363 385 449 509 314
Region 3 817 825 747 676 622 517 476 520 557 595 639 642 699 795 854 912 1082 1212 800
Region 4A 961 899 796 713 673 592 554 584 639 695 752 794 782 900 1004 1101 1315 1469 902
Region 4B 171 169 158 138 136 120 106 105 115 116 119 114 117 131 137 150 171 194 133
Region 5 405 400 359 307 274 237 229 249 271 283 307 311 322 349 355 393 430 470 360
Region 6 293 263 233 197 181 157 153 163 167 174 199 210 211 227 258 275 309 338 218
Region 7 386 366 334 308 272 258 226 233 208 235 226 265 274 325 366 414 517 587 328
Region 8 275 273 257 242 209 178 175 182 191 200 210 222 230 259 265 305 353 395 282
Region 9 313 281 270 255 237 200 180 214 197 227 237 231 243 243 246 251 286 314 219
Region 10 236 217 180 157 149 132 108 115 103 100 111 112 106 136 152 163 210 273 177
Region 11 345 323 253 223 202 155 144 151 147 197 227 244 274 321 360 418 521 640 316
Region 12 225 244 208 182 166 142 133 140 130 123 127 124 125 155 175 199 230 252 157
CARAGA 158 162 156 132 117 103 93 94 83 86 85 85 92 103 112 130 154 174 106
ARMM 162 102 85 85 75 62 58 57 54 53 58 59 72 78 85 114 152 172 100
NCR 2272 2006 1781 1693 1505 1330 1283 1236 1351 1417 1497 1606 1653 2000 2201 2475 2902 3214 1855
GRAND TOTAL 7844 7336 6574 5988 5505 4781 4490 4665 4861 5169 5516 5747 5962 6861 7488 8268 9719 10909 6719

Source: Construction Industry Authority of the Philippines - Philippine Contractors Accreditation Board (CIAP-PCAB)
Notes:
*A Regular License shall be valid for one fiscal year, from the 1st of July to the 30th of June of the ensuing year, unless suspended, invalidated, cancelled or revoked earlier by the Board, and shall be renewed annually. [Per Rule 3, Section 3.2.a
of Republic Act No. 4566 or the Contractor's License Law]
**Data is from July 1 to August 9, 2018
Question #7: Licensed Contractors by principal classification using table
7.1 2000, 2001,2002, 2003, 2004, up to 2018

Ans.:

STATISTICS OF PCAB LICENSED CONTRACTORS BY PRIMARY CLASSIFICATION

CONTRACTING FISCAL YEAR (CFY)*
PRIMARY CLASSIFICATION 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-20182018-2019**

General Building 2497 2353 2105 1963 1785 1480 1383 1484 1589 1725 1853 1900 2032 2274 2430 2716 3273 3747 2249
General Engineering 4677 4282 3854 3496 3164 2681 2552 2668 2771 2894 3031 3043 3143 3399 3472 3776 4260 4708 3072
Trade 280 360 293 195 258 347 283 238 218 247 283 451 358 668 989 1068 1312 1445 857
SP-Airconditioning & Ref. 14 15 13 15 11 9 7 9 12 11 11 12 16 18 22 25 30 37 21
SP-Aluminum Work 3 2 2 2 0 1 1 1 1 1 1 1 1 2 1 4 5 1
SP-Communication Facilities 35 21 21 20 17 12 14 14 13 17 18 23 31 42 46 57 82 98 58
SP-Concrete Pre-casting 2 3 4 3 2 1 2 0 1 0 0 0 0 0 1 2 2 4 2
SP-Electrical Work 184 176 163 168 146 139 141 142 151 160 180 184 222 275 328 373 433 485 275
SP-Electromechanical 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 4 7 3
SP-Elevator & Escalator 7 3 2 2 2 2 2 2 3 4 2 2 4 5 5 3 4 4 3
SP-Fire Protection Work 5 4 3 4 5 4 3 3 3 3 6 7 7 9 7 11 12 16 4
SP-Foundation Work 2 2 4 3 4 6 5 2 3 4 4 4 4 4 3 3 3 4 3
SP-Landscaping 0 0 0 1 1 2 1 1 1 1 2 2 1 1 2 1 5 6 3
SP-Mechanical Work 80 68 63 75 67 58 54 69 62 68 97 87 103 121 136 171 222 264 125
SP-Metal Roofing & Siding Installation 1 1 1 1 0 0 0 1 0 0 0 1 1 2 2 3 2 3 1
SP-Navigational Facilities 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0
SP-Painting 13 13 15 11 10 6 9 6 7 6 4 3 5 6 7 13 20 23 8
SP-Plumbing & Sanitary Work 6 8 7 5 4 6 5 4 5 6 8 7 9 12 11 14 17 12 11
SP-Soil Stabilization / Slope Protection
/ Reinforce Earth 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0
SP-Structural Demolition 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0
SP-Structural Steel Work 6 6 7 6 7 7 8 5 5 5 5 6 9 9 8 12 13 10 5
SP-Waterproofing 18 5 8 7 8 7 9 6 6 6 2 5 8 7 9 9 13 21 11
SP-Well Drilling 14 14 9 11 12 13 11 10 10 11 9 9 8 7 7 9 8 10 7
GRAND TOTAL 7844 7336 6574 5988 5505 4781 4490 4665 4861 5169 5516 5747 5962 6861 7488 8268 9719 10909 6719

Source: Construction Industry Authority of the Philippines - Philippine Contractors Accreditation Board (CIAP-PCAB)
Notes:
*A Regular License shall be valid for one fiscal year, from the 1st of July to the 30th of June of the ensuing year, unless suspended, invalidated, cancelled or revoked earlier by the Board, and shall be renewed annually. [Per Rule 3, Section 3.2.a of Republic Act No.
4566 or the Contractor's License Law]
**Data is from July 1 to August 9, 2018
Question #8: Licensed Contractors by Size of firm

8.1 2000, 2001,2002, 2003, 2004, up to 2018

Ans.:
Question #9: Number and percentage Distribution of construction-related

professionals

9.1 2000, 2001, 2002, 2003, 2004 up to 2018

Ans.:

Question #10: Discuss Labor Sector

10.1.    project workers or employees
           10.2.    non-project workers

Ans.:

10.1 Project workers/employees are “those employed in connection with a particular

construction project or phase thereof and whose employment is co-terminus with each

project or phase of the project to which they are assigned.” (Section 2.1, DOLE

Department Order No. 19, Series of 1993 (Guidelines Governing the Employment of

Workers in the Construction Industry)).

 10.2 Non-project workers/employees are “those employed without reference to

any particular construction project or phase of a project.”. In other words, non-project

workers are the office personnel of construction firms while project employees consist of

the professional, technical, skilled, semi-skilled, and unskilled manpower hired for

specific projects.

Question #11: Percentage Distribution of Construction Workers/Employees

(Professional, Technical & laborers)
11.1. 2000, 2001, 2002, up to to 2018 using table

Ans.:

% of Construction Number of employees in the

Year Total Labor Force Workers/Employees (Professional, Philippine construction
Technical & Laborers) Industry
2018 41,157,000 9.392% 3,865,516
2017 40,333,992 8.769% 3,536,848
2016 40,997,968 8.239% 3,377,669
2015 38,741,000 7% 2,711,870
2014 38,651,000 6.7% 2,589,617
2013 38,118,000 6.2% 2,363,316
2012 37,600,000 5.9% 2,218,400
2011 37,192,000 5.6% 2,082,752
2010 36,047,000 5.6% 2,018,632
2009 35,062,000 5.4% 1,893,348
2008 34,089,000 5.4% 1,840,806
2007 33,706,000 5.5% 1,853,830
2006 32,699,000 5.3% 1,733,047
2005 32,876,000 4.9% 1,610,924
2004 31,741,000 5.2% 1,650,532
2003 31,524,000 5.4% 1,702,296
2002 30,251,000 5.3% 1,603,303
2001 30,085,000 5.2% 1,564,420
2000 27,775,000 5.1% 1,416,525
Source : Philippine Statistics office
Question #12: Discuss Materials Sector distribution of these facilities and the annual
installed capacity by geographical area
12.1.    Cement
           12.2.    Aggregates
           12.3.    Reinforcing Steel Bars
           12.4.    Galvanized Iron Sheets
           12.5.    Lumber

Ans.:

This sector is composed of manufacturers and suppliers of materials used in the

construction process. It encompasses dealers, importers, and retailers of a wide variety

of construction products, the most basic and critical among which are cement,

aggregates, reinforcing steel bars (rebars), galvanized iron (GI) sheets, and lumber

12.1 Cement – It is a binder, a substance used for construction that sets,

hardens and adheres to other materials to bind them together.

 Total capacity
Company name Plant Location Region Production Capacity Region
per region
LafargeHolcim La union I 1.8 MT/yr I 3 MT/yr
Northern cement pangasinan I 1.2 MT/yr III 21.68 MT/yr
Big Boss Pampanga III 5.76 MT/yr IV-A 6.3 MT/yr
CRH Norzagaray III 1.8 MT/yr V 1 MT/yr
CRH Bulacan III 1.7 MT/yr VII 6.93 MT/yr
Eagle Cement Bulacan III 7.1 MT/yr IX 50000 Ton/yr
LafargeHolcim Bulacan III 3.32 MT/yr X 3.9 MT/yr
Phinma Mariveles, Bataan III 2 MT/yr XI 2.45MT/yr
CEMEX Antipolo IV-A 2.7 MT/yr
CRH Teresa Rizal IV-A 2 MT/yr
CRH Batangas IV-A 1.6 MT/yr
Goodfound Bicol V 1 MT/yr
CEMEX Cebu VII 4.4 MT/yr
Mabuhay filcement Cebu VII 0.526 MT/yr
Taiheiyo Cement Cebu VII 1.5 MT/yr
CRH Danao City VII 0.5 MT/yr
Petra Zamboanga IX 50000 Ton/yr
LafargeHolcim Misami Oriental X 3 MT/yr
CRH Iligan X 0.9 MT/yr
LafargeHolcim Davao City XI 2.45MT/yr
Source : Asiacementrade Bali indonesia Tech paper
 12.2 Aggregates – It gives volume, stability resistance to wear or erode and

other desired physical properties to the finish product.

12.3 Reinforcing Steel bars
  Steel Asia is the largest manufacturer of rebar in the Philippines with total annual
production capacity of 2.1 million tons per year anticipating a multi-decade
growth trajectory for the country, has another 2.5 million tons of capacity in its
expansion pipeline
Reinforcing steel bars manufacturers located in the Philippines :
 Metro manila – 23
 Cainta – 23
 Bulacan – 16
**In Mindanao : government owned national steel corp. (NSC) has its facilities
in Iligan City

12.4 Galvanized Iron Sheets

COMPANY NAME SPECIALTIES
1. DN Steel Marketing, Inc. Roofing and Insulation
2. Steel Asia Reinforcing Steel Bars
3. Steel Centre Philippines, Inc. Steel Fabrication

4. AMSTEEL Structures, Inc. Structural Steelworks

5. ESC Steel Philippines Inc. Steel Pilling

6. Sonic Steel Industries Inc. Largest Galvanizing Company in the

Philippines

12.5 Lumber
Question #13: Discuss Equipment Sector
13.1.    Lessors
           13.2.    Importers
           13.3.    Manufacturers

Ans.:

This sector is composed of equipment owners and equipment and spare parts

suppliers. Equipment owners consists of the government, contractors, and equipment

lessors while suppliers of equipment and spare parts are composed of importers-

distributors and local manufacturers.

13.1 Lessors The most organized private equipment leasing operation for

construction is undertaken by the Association of Carriers and Equipment Lessors, Inc.

(ACEL).
 The Association of Carriers and Equipment Lessors (ACEL), Inc. was formed two

decades after the 2nd World War, when the country was in direst need of construction

equipment and other technical resources that would facilitate the reconstruction of the

devastated nation. Several contractors and equipment lessors gathered together to

devise a plan through which the unavailability of construction equipment in construction

activities in sectors such as power, irrigation, transport, commercial, housing and real

estate developments could be addressed.

13.2 Importers - There are two types of importers of construction equipment

 Import brand new machines usually as exclusive distributors.

 Those that import second-hand equipment

WORLD’S TOP TEN CONSTRUCTION EQUIPMENT MANUFACTURER

13.3 A manufacturer is an organization or business that produces goods to sell them to

a customer. Manufacturers transform raw materials, components, assemblies, and so

on, into finished products, often involving processes organized into a production line.

Examples in the Philippine are:

 TDT POWERSTEEL CORPORATION
CONSTRUCTION CEBU COMPANY
CASTLEPOWER SOLUTIONS PHILIPPINES INC.

Question #14: Discuss Financing sector

  14.1.    Owner Financing
14.1.1. Government Projects
14.1.2. Non-government Projects

Ans.:

14.1 Owner financing involves financing for project owners in building various

types of structures.

14.1.1 Government projects - Infrastructure projects of the government

are financed from both local and foreign sources. Local funds for projects of the

national government are derived from continuing annual budgetary

appropriations (continuing appropriations under executive order 182 – the Public

Works Act and the General Appropriations Act).

14.1.2 Non-government projects - Loans from government and private

banks and equity financing are the main sources of funds for private construction.

The key government shelter finance institutions tasked with funds generation for

housing construction and acquisition are as follows:

Social Security System

- the primary provider of funds for home mortgages of private sector employees.
Government Service Insurance System
 - the main provider of funds for mortgages of government employees.
Home Development Mutual Funds
- a compulsory saving scheme for housing for government and private employees
(popularly known as the PAGIBIG fund)

Question #15: Contractor Financing

Ans.:

The basic sources of operating funds for contractors are equity financing (i.e.,

sinking their own funds into the business) and credit financing (or borrowing from

external resources). The advance or down payments of project owners under

construction contracts also help augments operating capital.

 Commercial banks are the main providers of credit to contractors.

 Other sources of working capital funds are loans from private development banks

and savings and loan associations. Rural banks and specialized government

banks have no recorded lending for construction.