Researchers

: Arcillas, Rachel Hamid, Shaira

Bongcawel, Mooneyca Hamin, Rhealiza
Gaynor, Janica Tan, Matthew
 EXECUTIVE SUMMARY
COMPANY NAME NURBEN ENGINEERING & BUILDING
CONTRACTOR
ORGANIZATIONAL STRUCTURE SINGLE PROPRIETORSHIP

MAJOR BUSINESS ACTIVITY CONSTRUCTION

NUMBER OF CONSIDERED 3
COMPETITOR
DISTRIBUTION CHANNELS MAIN:
BALIWASAN, ZAMBOANGA CITY
SATELLITE:
San Manuel, Puerto Princesa,
Palawan and Mindanao Avenue,
Quezon City
 EXECUTIVE SUMMARY
MARKET PROMOTION Social Networking Sites
STRATEGIES

ESTIMATED PROPOSED N/A (HOW MUCH BUDGET ANG

MARKETING BUDGET KAKAILANGANIN?)
 Construction has been an aspect of life since the beginning of

human existence.

 Construction is generally used to describe the activity of the

creation of physical infrastructure, superstructure and related

to facility.

 Construction can be defined as the "process that consists of

the building or assembling of infrastructure"(Adam Smith

2008).
 Construction can be defined as the "process that consists of

the building or assembling of infrastructure"(Adam Smith

2008).

 The proposed study is about Nurben Engineering and

Building Contractor, a construction firm in Zamboanga City.

 It is engaged with Construction and Infrastructure Projects,

Plan and Estimates, Real Estate Developer, and Supervision

and Consultancy.
 The proponents have chosen Nurben Engineering and Building

Contractor, a construction business, as a subject and focus of

this strategic paper for the reasons that :

◦ This kind of business is vital to the economy of the city, and

◦ because of the interest of the proponents towards the

business.
 This strategic paper will focus only on the enhancement of

the strategies that the entity is using.

 It is the firm’s responsibility to step up its competitive

advantage against its potential competitors and further

envision the strategies and objectives to be drafted for the

constant growth of the business.

 The findings of this study will benefit the clients, who are in

search of an efficient construction firm.

 The study aims to bring the attention of the stakeholders to

the endless efforts and flexibility of Nurben with regards to

the constant improvement of the quality of their works and

services which will result in realizing top-quality projects here

in Zamboanga.
 This study will also provide substantial data and

recommendations about the operations of running a

construction firm for future reference of other users of the

said information gathered.

 To be able to come up with a enhanced strategic plan for the

company in order to achieve its objectives.

 To provide competitive advantage against its potential

competitors
The following are the primary objective of the company:

To provide quality, excellent To build a successful and

service that meets and long-term relationships
exceed clients’ expectations with clients, architects,
cost effectively within vendors, suppliers and
agreed time frames. subcontractors

To produce excellent To be able to incorporate

results in every job that will Health and Safety practices
be done in terms of quality are maintained to the
and durability. highest standards.
 To actively interact with
To be as energy efficient the clients, assess and
and environmentally establish their current and
friendly as possible. future needs.

To create an atmosphere
whereby the firm and its
associates offer a quality,
timely performance at a
reasonable price.
 The study will engage in enhancing the strategic planning of the

company.

 This study will focus in the current operations and strategies of the

firm.
 The researchers will conduct interviews to the involved

departments, which can be heads, directors or persons who have

knowledge about the firm to address all the questions and concerns

that the researchers will be having.

 Furthermore, the strategic planning will only be applicable in

Mindanao specifically Zamboanga city premises.

 METHOD FOR GATHERING INFORMATION:

◦ Web Research

◦ Face to Face Interview

 RESPONDENTS:

◦ key personnel the company specifically:

- Managing Officer

-different department heads (from the admin, construction,

finance and marketing, and quality management department).

◦ To know the objectives of the company and the actions

taken by the company to achieve it.

◦ To know what are the challenges in the company’s

operations and how do they cope with it.

◦ To assess the company’s current strategic plan and be able

to formulate recommendations.
 What are the company's mission, vision and objectives?

 How would the company plan to achieve their objectives?

 What strategies have the company used in the previous years in order to

achieve the objectives?

 What are the problems that the company have faced in achieving their

goals? How did they manage it?

 The group will also try to ask for the management's consent to obtain

supporting materials such as their organizational structure and other

manuals that they would like to disclose and would be useful for this

study.
 Environmental scenario

 Demand for the services.

◦ According to a Timetric report: ‘Construction in the

Philippines: Key Trends and Opportunities to 2021, there

will be continued growth at a rapid pace over the forecast

period (2017–2021) for the construction the Philippines.

 Environmental scenario

 Demand for the services

◦ The allotted budget for construction in Region IX in 2018 is

Php 21.9B for 661 projects based on House Based General

Appropriations Bill and Php 4.9B is allocated to Zamboanga

City with 113 projects.

 Environmental scenario

 Releasing of government funds

◦ The company handles this situations by first using the
resources of the company then just follow up the pending
funds.
 Competitors
◦ According to Philippine Contractors Accreditation Board
(PCAB), there are currently 211 Construction Firms
registered in Region 9 as of August 2016.
 Environmental scenario

 The rebel group, New People's Army

◦ The company receives threats from those group because

there are several projects that is located in areas where this

group is situated. This causes fear and delays.

 Environmental scenario

C. Natural Environment Factors

 Climate

◦ There are times that a project could not be finished on the

specified or target due to heavy rains or typhoons.

 Environmental scenario

 competency of its employees

 workplace environment also affects the productivity of the

company

 diverse set of employees

Assessment of the existing operations
(SWOT Analysis)

 Competent personnel

 Sufficient availability of raw materials and natural resources

 Good Relationship among customers

Assessment of the existing operations
(SWOT Analysis)

 Service provision is under controlled conditions

 Planning for the sequence of processes and sub-processes are

high required for construction/services to further enhance

customer’s satisfaction.

 Large distribution channel. (Full Construction in Mindanao; sub

construction in Luzon and Visayas)

Assessment of the existing operations
(SWOT Analysis)

 Growing housing needs

 Globalization and Urban-led growth to drive the national

economy

 Competitor quality issues

 Develop skills and capacity in new markets

Assessment of the existing operations
(SWOT Analysis)

 Distance between Construction Projects reduces business

efficiency

 Huge amount of money need to be invested

 Delayed constructions due to distance of location being

constructed.
Assessment of the existing operations
(SWOT Analysis)

 Surplus of Construction firms. Hence, competitors are

increasing

 Natural abnormal casualties such as earthquake and floods.

CONCLUSION
STRENGTH
OPPORTUNITY
S2 to O1: since housing
construction is growing.
Sustainability of raw materials and
resources needs to be intact. That is, build.
to be able to accommodate all
constructions that will be built.
S2 & S4 to O2: The company is
surely ready in more global and
urban-led growth for it has enough
materials and resources and services
are highly qualified.
WEAKNESSES
W1 to O1: Distance reduces
efficiency of the firm; hence,
construction will take time to
W1 to O2: In terms of location
where projects will be
constructed, the efficiency
of the firm reduces when it has to
be built far away.
CONCLUSION
STRENGTH
OPPORTUNI S2 & S4to O3: The company is
TY
highly qualified in terms of its raw
materials and services to capitalize
competitor poor quality
S1 to O4: Appropriate trainings,
education, skills and awareness will
be needed to develop employees and
give satisfaction to its customers
WEAKNESSES
W2 to O3: huge amount of money
needed to invest is a hindrance for
the company because this is an
opportunity also for the competitor
for they have the chance to lower
their investment. Hence, many
customers will not invest in the
company.
CONCLUSION
STRENGTH WEAKNESSES
OPPORTUNI W3 to O4: Delayed in construction
TY
will be difficult for the company to
develop in new markets, for they
will be having a negative image
because of these delays that are
usually happening especially when
constructions are being
constructed far away from its
primary market..
CONCLUSION
STRENGTH WEAKNESSES
THREAT
S1 to T1: Even though there are W1 & W3 to T1: because the

surplus in the construction firms company are poor in building

the Nurben Engineering and building construction of faraway locations,

contractor will still be intact for they hence, produces delays,

have plans in the sequence of competitors use this as their

processes and sub-processes which strength to divert the firm's

are highly required for customers to invest to their firm.

construction/services that further

enhance customer’s satisfaction.

CONCLUSION
STRENGTH WEAKNESSES
THREAT
S2 & S3 & S4 to T2: The company W2 to T2: because there's a

projected these fortuitous events and high investment in the firm. When

are prepared. Having a qualified fortuitous event will come,

materials and resources, skilled customers will be experiencing a

workers and satisfying service loss, and it will be hard for them to

customers need not to worry for the invest again in the project because

Nurben engineering and building the company does not take 100 %

contractor produces projects that are responsibility in the destroyed

highly intact and fortuitous-ready project.

constructions.
 OVERVIEW OF THE
COMPANY/ENTERPRISE
PROFILE:
 OVERVIEW OF THE
COMPANY/ENTERPRISE
Performance: (Operation Oriented)
 We are a family owned company, committed to becoming

the contractor of choice, pursuing excellence through

dedication, experience and disciplined employees with an

ongoing passion to deliver quality, timely and profitable

projects.
 To provide our customers with value through the

provisioning of engineering services, procurement,

construction, operation and management of infrastructure.

State of the Industry
 Objectives of the Company
General
 Objectives of the Company
General
 Objectives of the company
Specific
 Objectives of the company
Specific
 Objectives of the company
Specific
 PROPOSED
STRATEGIES
 marketing
STRATEGIES DESCRIPTION

Promotional Strategy • Publicized

• Gives a glimpses of the
services offered
• Customers will know of its
existence
Social Media Advertising • social networking sites
Excellent Customer Service • assuring customers that the
employees are well trained for
the service
Brand Positioning Strategy • offer services not commonly
offered by construction
businesses
PRODUCTION/TECHNICAL
STRATEGIES DESCRIPTION

Delivery Strategy • give top priority to fast

delivery and quick
accessibility of its services.
Construction delays happen
when things do not go
according to plan and since
construction is sequential,
these are often unavoidable.
Flexibility Strategy • To offer service that is not
offered by others.
PRODUCTION/TECHNICAL
STRATEGIES DESCRIPTION

Flexible Response Strategy • strict production schedule to

be followed by Nurben and
blockers
• possible changes must be
anticipated beforehand by
people responsible for these
kinds of tasks
 ORGANIZATIONAL

STRATEGY REASON
Participating more in different
seminars or workshops • add value to their knowledge of the

industry

• could help generate new ideas that

are beneficial to the firm

• Awareness of any technological

advancement related to the industry

 FINANCIAL
STRATEGY REASON

Investing in banks
• Obtain additional funding for the

continued expansion

The firm could also consider the following strategies from

Construction Executive written by McCarthy:
 FINANCIAL
STRATEGIES PURPOSE/DESCRIPTION

1. CHANGE PAYMENT TERMS Establish a payment schedule based

on the project’s percentage of
completion.

2. BILL AHEAD OF COSTS To ensure that contracts are front

loaded to receive higher payments
earlier.
This way the client is taking on
more of the financial risk instead of
the contractor.

3. GIVE A DISCOUNT FOR PAYING Encourage clients to pay faster by

WITHIN 30 DAYS offering an incentive.
 FINANCIAL
STRATEGIES PURPOSE/DESCRIPTION

4. CHARGE INTEREST ON LATE Charge a high enough rate to

PAYMENTS make clients pay attention.

5. CONSIDER LEASING OR Leasing and/or financing provide

FINANCING NEW EQUIPMENT excellent tax incentives to retain
working capital and spread the
cost out over the years that the
equipment is generating income.

6. MANAGE MATERIAL COSTS Minimizing procurement or

purchase costs is important to
controlling costs.
 FINANCIAL
STRATEGIES PURPOSE/DESCRIPTION

7. PLAN FOR THE TIMELY Help project managers meet

DELIVERY OF MATERIALS purchasing requirements.

8. MANAGE PRODUCTIVITY Controlling labor activity at

jobsites is a concern for
contractors. Labor productivity
can be measured as functional
units per labor hour for each
type of construction task.
9. TRACK PRODUCTIVITY Contractors should also
TRENDS OVER TIME benchmark their performance
against industry standards to
ensure that job costs are in
alignment with the competition.
 FINANCIAL
STRATEGIES PURPOSE/DESCRIPTION

10. USE RETAINAGE FUNDS TO YOUR Many banks are now allowing
ADVANTAGE retainage to be used to assist with
financing needs. Review the
available options and negotiate
better terms.
11. DISCUSS LOAN COVENANTS Avoid having an issue with banks if
the terms of covenants on
commercial loans or bonds issued
cannot be met

12. ASSESS YOUR TAX ELECTIONS Contractors who have proactive

CPAs with in-depth knowledge of
the construction industry benefit
from many tax elections that can
help improve cash flow.
 Being in the industry for a long period of time has become

one of its critical success factor

 places great emphasis on the ability to plan and execute

projects on a timely manner within an established budget and

meeting the required deadlines

 provide a continuous training for the employees to build a

more profound employee-employer relationship

MAJOR ASSUMPTIONS
 prepare its complete set of financial statements in accordance
with PFRS and guidelines provided in the GAAP
 shall ensure strict compliance with relevant regulatory bodies
and their requirements applicable to the industry
 prepared under the assumption that all the findings gathered
from the previous aspects remain constant
MAJOR ASSUMPTIONS
 inflation rate used to project the five year financial statements
is 3 percent. This is the rate according to the Statistics Portal.
 1.26 % growth rate was also used to project the 3 year
financial statement
 The proponents used the 2017 Financial Statement of Nurben
Engineering and Building Contractor as the basis for the
financial projection.
Review of the Related Literature

 Construction in the Philippines is set to grow at a rapid pace

over the forecast period (2017–2021), according to the latest
research from Timetric's Construction Intelligence Center.
 The construction industry is expected to continue playing an
important part in the Philippines’ projected economic growth,
especially as the country embarks on the “golden age” of
infrastructure.
Review of the Related Literature

 Construction Industry Authority of the Philippines (CIAP)

undersecretary Ruth Castelo said the industry is seen growing
its share of total employment in the country.
 Castelo said the industry is expected to employ some 5.8
million workers by 2022.
 “The construction industry has generated 3.3 million workers in
the entire Philippines in 2016. We expect to increase this by
another 2.5 million over the spread until 2022,” she said.
 “One of the biggest contributors to employment in the country
is the construction industry that‘s why it is really providing a
big boost to our economy,” Castelo added.
Review of the Related Literature

 Delays caused by political interventions and the unappealing

pricing structure of government infrastructure projects.

 “During the last administration, the turnover was quite good in

terms of the private sector and not so much on public
infrastructure because it was very minimal. This time around we
are expecting a lot. We are waiting. So where are the projects?”
Philippine Constructors Association Inc. (PCA) executive
director Ibarra Paulino told The STAR.
Review of the Related Literature

 He said member companies of PCA are in full support of the

government’s “Build Build Build” initiative and are “willing, able
and ready to support” the government in building its
infrastructure projects.
 Paulino said among the pressing issues hounding local
contractors include the delays they encounter in their projects
as well as the pricing structure of the government.
 “Most of the time we are challenged with the right of way
acquisition that delays the project and also some of the
political interventions that affects the delivery of the projects in
a timely manner,” he said.
Review of the Related Literature

 Despite the growth of the industry, 70% of contractors say that

they are having a difficult time finding qualified workers or
professionals to fill these growing positions.
Review of the Related Literature

 Many firms are concerned that the lack of a skilled workforce will
negatively affect safety. 47% of contractors say that an
inexperienced labor force is a safety concern.
 As the shortage of workers continues to be a problem in 2017,
firms will also have to be aware of safety concerns and adjust
appropriately.
Review of the Related Literature

 Another conflict that may arise in 2017 is the conflict between

generations. This difference of opinion may cause conflicts to
arise, in particular between veteran employees and new
employees.
Review of the Related Literature

 Technology has transformed the industry, and whoever cannot

keep up will be left behind. This has become especially true as
competition increases both in attracting workers and competing
for projects.
Review of the Related Literature

 The use of building information modeling (BIM), laser scanning,

and virtual reality will also become more used on 2017 and
become a necessary practice for firms.
Review of the Related Literature

 The construction industry continues to face issues combatting

their adverse effect on the environment as they produce 25-40%
of the world’s carbon emissions. As these problems become
more at the forefront of the global agenda, they will have to
make changes to avoid negative attitudes from the public.
 This is not any easy feat for the construction industry and will
take many years to accomplish.
Review of the Related Literature

 Construction projects are becoming more demanding and

complicated in the design. This trend will only continue into
2017 and will pose a challenge for the scarce workforce.
 Therefore, firms must be selective in what projects they choose
to accept. Taking too many projects may prevent companies
from complete the job on time or cause them to lose all
profitability from date slippage.
 According to Accenture, only 30% of firms
currently deliver projects on budget and
only 15% deliver on time. This number of
firms able to deliver projects on time and
budget will only decrease as the number of
skilled workers decreases and demand
increases.
 Review of the Related Literature
 According to the Philippine Statistics Authority (PSA), the number of
approved building permits increased by 20.8%, from 24,400 new
construction projects in the first quarter of 2013 to 29, 468 in the
first quarter of 2014. Moreover, the current Duterte administration
unveiled a three-year rolling infrastructure program (TRIP)
amounting to P3.6 trillion from 2018 to 2020.
 According to Industry Career Guide (Construction), the performance
of construction is connected at the gutlevel with the Philippine
economy, which, in the period 2000-2010, registered an annual
average growth of 4.7 percent. Within the same period, construction
grew at an average rate of 5.5%, accounting for a 5% average annual
GDP share and 15.2% of total industry output. In 2006-2010, when
measured as an expenditure type to boost capital formation,
construction’s value in inflation-adjusted terms averaged PhP414
billion annually, accounting for 45% share of total capital formation
expenditure and 8% of real GDP.
 Review of the Related Literature
 As stated by the Philippine Constructors Association, Inc., the
industry generates a substantial amount of jobs for the economy.
On the average, it supplies five percent (5%) of the total domestic
employment annually (equivalent to around 1.9 million workers
today). Employment levels posted a steady annual growth of two
percent (2%) in the past decade. The industry also provides many
jobs abroad, deployed construction workers in excess of 10,000 per
year in the key markets of major Filipino construction companies
not counting those employed directly by international construction
companies and consultants.
 According by Kristi Webb, “A construction business owner's first
step in the strategic planning process is to establish an internal
baseline. These early decisions will drive the rest of the strategy so
it is important that the goals are specific and measurable.” (Webb, K.
(2011). Developing a Strategic Construction Business Plan for
Growth. Construction Business Owner. Retrieved from
References
• https://www.construction-ic.com/pressrelease/construction-in-
the-philippines-will-continue-to-grow-rapidly-5803058

• http://www.philstar.com/business/2017/04/24/1693190/construct
ion-seen-fuel-phl-growth

• http://www.philstar.com/business/2017/07/15/1719598/contracto
rs-bullish-infra-amid-politics-pricing-issues

• https://esub.com/top-issues-facing-the-construction-industry-
2017/
References
• http://creditbpo.com/blog/key-trends-philippine-
construction-industry

• http://www.philconstruct.com/Page.aspx?id=39&pid=1

• http://www.constructionbusinessowner.com/topics/strategy/
construction-company-management/developing-strategic-
construction-business-plan