TEAM BER

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 HELLO!
I am Allan B. Arellano
I am here because I have to say something.
You can find me at the @LanArellano1

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Tell mo!
Tell ko!
 Game?

WARM UP!
 “3
What is the second
farthest planet from
the sun?

Charot lang! 5
 CURRENT
ISSUES IN
CONSTRUCTION
INDUSTRY
 a. (1): a vital or unsettled
ISSUES mattereconomic issues

(2): CONCERN, PROBLEM

b: a matter that is in dispute between two

or more parties

c: the point at which an unsettled matter is

ready for a decisionbrought the matter to
an issue

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 1. SHORTAGE OF
QUALIFIED WORKER

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 “
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Ano para sayo ang
depinisyon ng
“qualified worker?”

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 25, 552
Whoa! That’s a big number, pero bakit nga may
shortage?

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Why?

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For what reason?

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 The construction industry has been on
the rise for the past few years and is expected
SHORTAGE to continue to grow continuously. Despite
this growth, 70% of contractors say that they
OF are having a difficult time finding qualified
QUALIFIED workers or professionals to fill these growing
positions. This misalignment between the
WORKER number of available jobs and the number of
skilled workers will continue to be in issue the
construction industry will face in 2017.

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 Companies already are having
to look at their compensation
plans, salary, and other benefits
to be able to retain current
workers and attract new
workers
2. SAFETY

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 “2
Gaano kahalaga ang
safety sa construction
site?

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 Construction work is inherently
dangerous which makes insurance and
workers compensation costly
expenditure. 71% of respondents in a risk
mitigation webinar stated they had
experienced a safety incident or injury in the
SAFETY last 12 months. Stricter punishments are being
enforced against companies that are accused
of negligence. In addition to financial
penalties, some construction company’s
owners and/or their foreman are being
convicted of manslaughter.

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 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.
 👩

3. GENERATIONAL
DIFFERENCES

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 “7
Anong ugali/traits ang
gusto mo sa magiging
katrabaho mo?

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 “
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Magaling ka ba
makisama?

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 Another conflict that may arise in
construction industry is the conflict
between generations. More and
more millennials are entering the
job force who have very different
GENERATIONAL
work ethics and sets of skills than
DIFFERENCES
different generations in the
field. This difference of opinion
may cause conflicts to arise, in
particular between veteran
employees and new employees.

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4. TECHNOLOGY
ADAPTATION
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 “1
Magbigay ng
advantage ng
Technology?

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 “
5
Magbigay ng
disadvantage ng
Technology?

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 Necessary construction technology
includes cloud-based software, integrated
collaboration, and mobile project
management. Companies must be
Technology strategic when implementing
technology to not upset the veteran
new

Adaptation employees who are set in the traditional

way of doing business. Companies must
implement technology slowly and steadily
to reap its benefits with minimal blowback
from employees.

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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. BIM and laser scanning are
becoming more commercially affordable,
and despite the initial investment, save
the company money in the long run by
streamlining processes
 👩

5. ENVIRONMENTAL
SUSTAINABILITY

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 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
Environmental problems become more at the forefront of
Sustainability the global agenda, they will have to make
changes to avoid negative attitudes from
the public. This is not an easy feat for the
construction industry and will take many
years to accomplish.

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 “
What has hands but
cannot stroke, pat,
clap or sign?

clock
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 5. PROJECT
COMPLEXITY

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 This 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
Project on time or cause them to lose all
profitability from date slippage. According
Complexity 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.
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 Project Delays
Unforeseen jobsite conditions. Changing scope.
Design rework. All of this leads to project delays
with only 25% of projects coming within 10% of
original deadlines. Subcontractors attribute delays
and change orders to design-induced rework and
changes in scope. Companies submit project
proposals based on the availability of resources.
Therefore, delayed projects will cause a kink in the
entire scheduling and resource management of a
construction company.
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6. UNPAID WORKS

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 It is important to have positive cash flow
for the company. Unfortunately,
subcontractors are not receiving payment
for their completed work in numerous
Unpaid instances. Subcontractors are front-
loading costs on many projects and paid
Works their suppliers and employees. However,
they are patiently awaiting payment from
the General Contractor or owner who may
be disputing the payments although the
work is completed.

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7. Retirement of aging
boomers

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 Across the nation, thousands of baby
boomers are retiring per day. This is a
troublesome statistic considering
Retirement that 54% of construction managers are

of aging boomers. With them leaves the requisite

knowledge and experience that they have
boomers gained over their career. Construction
executives must figure out how to
transfer all of that knowledge to a new
batch of hires in a time of labor shortage.

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8. Unfavorable Contract
Terms

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 Construction projects inherently assume a lot
of financial risk. Disjointed interests shift a
large amount of risk on subcontractor. In
increasing numbers, subcontractors are
Unfavorable receiving contracts with unfavorable terms
such as liquidated damages, consequential
Contract impacts, warranty coverage, etc. During a
Terms recent eSUB construction webinar on risk
mitigation, 86% of respondents indicated they
had received a contract with liquidated
damages. Any missed deadlines will directly
hit your pocketbook.

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 “6
Balik-aral: Magbigay
ng isa (1) issue na
nabanggit na

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10. Tariffs

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 “
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Ramdam mo ba ang
pagmamahal ng
bilihin? Ex: Bigas

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 ◦ Currently, the tariffs have raised the
price of steel, aluminum, timber, and
more. Some building material costs
have increased by 20% so far with an
estimated increase starting
in January. These tariffs can increase
Tariffs the overall cost of construction
making it harder for contractors to
guarantee material costs. The inability
to guarantee material costs could
result in contractors eating more of
the cost of a project and losing a lot of
potential for profit.
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◦ Teach, us ye the laborious work
To pursue your footsteps we wish,
For tomorrow when country calls us
We may be able your task to finish.
And on seeing us the elders will say :
"Look, they're worthy 'f their sires of
yore!"
Incense does not honor the dead
As does a son with glory and valor.

Hymn To Labor
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