Mapua Institute of Technology

Muralla St., Intramuros Manila

School of Industrial Engineering, Engineering Management
Service Engineering Management
___________________________________________________________________________

Proposed Structural Retrofitting of

National Library Building Ground Floor
Columns Including Restoration of the
Affected Areas, Phase III

Submitted by:
Balagtas, Marie Herricka P.
De Silva, Kevin Anthony R.
Factura, Terina Viktoria Q.
Lumbang, Racel Bernadette V.
Submitted to:
Prof. Rianina Borres

As partial fulfilment for the requirements of

EMG153 Project Management
3rd Qtr S.Y. 2015-2016
March 29, 2016

COMPANY/CONTRACTOR: GLOBAL-V BUILDERS CO.

CHECKED BY: Department of Public Works and Highways Bureau of
Construction
PROJECT: Proposed Structural Retrofitting of National Library Building
Ground Floor Columns Including Restoration of the Affected Areas, Phase III
LOCATION: T.M. Kalaw, Ermita, Manila

I.

COMPANY BACKGROUND

Company name
Global-V Builders Company
Address
4546 Quintos Street, Poblacion, Makati City, Metro Manila, Philippines
Listed in categories:
Tradesmen & Construction
Tradesmen & Construction / Construction services
Tradesmen & Construction / Construction
Global-V Builders Company is a private company existing under the laws
of the Philippines, headed by Lawrence C. Lim, with principal office address
at 4546 Quintos Street, Poblacion, Makati City, Metro Manila, Philippines.
Company
activities.

is

working

in

Construction

services,

Construction

business

II.

BRIEF DESCRIPTION OF PROJECT MANAGEMENT PRACTICE

A project is temporary in that it has a defined beginning and end in time,

and therefore defined scope and resources.
And a project is unique in that it is not a routine operation, but a specific
set of operations designed to accomplish a singular goal. So a project team
often includes people who dont usually work together sometimes from
different organizations and across multiple geographies. The development of
software for an improved business process, the construction of a building or
bridge, the relief effort after a natural disaster, the expansion of sales into a
new geographic market all are projects.
And all must be expertly managed to deliver the on-time, on-budget
results, learning and integration that organizations need.
Project management, then, is the application of knowledge, skills, tools,
and techniques to project activities to meet the project requirements. It has
always been practiced informally, but began to emerge as a distinct
profession in the mid-20th century.
Project management processes fall into five groups:
Initiating
Planning
Executing
Monitoring and Controlling
Closing
Project management knowledge draws on ten areas:
Integration
Cost
Human resources
Stakeholder management
Scope
Quality
Communications
Time
Procurement

All management is concerned with these. But project management brings

a unique focus shaped by the goals, resources and schedule of each
project. The value of that focus is proved by the rapid, worldwide growth of
project management:
as a recognized and strategic organizational competence
as a subject for training and education
as a career path
III.
CONCEPTUAL DEVELOPMENT
a. Problem analysis/need statement
Retrofitting of National Library of the Philippines Ground Floor
Columns
Agreement with the construction to be done in the National
Library of the Philippines (NLP) according to the terms and
conditions in the total amount of Twenty Four Million Seven
Hundred Sixty Thousand and Ninety Seven Pesos and 23/100
(Php 24,760,097.23) and submit the following documents which
will form part of the agreement:
1. Performance Security in any of the forms specified in Sec.
39, Rule XI of the Rev. IRR of RA 9184 and Clause 32.2 of
Section II of the Bidding Documents;
2. Duly signed PERT/CPM Network Diagram, Bar Chart with Scurve, Cash Flow Projection and Payment Schedule on
monthly basis;
3. Duly signed Manpower Schedule;
4. Duly signed Equipment Utilization Chart;
5. Duly signed Project Organization Schedule;
6. Duly signed Construction Method in detailed narrative
form;
7. Contractors All Risk Insurance (CARI) in accordance with
Clause 12 of the General Conditions of Contract;
8. Credit Line/Cash Deposit Certificate
9. Authority of Signing Official/Board Resolution/Secretarys
Certificate;
10.
Latest Income Tax and Business Returns duly
stamped and received by BIR and duly validated with the
tax payments made hereon. Tax Clearance from the BIR to
prove full timely payment of taxes.
11.
Certification under oath stating that the contractor is
free and clean of all liabilities to the Government; and
12.
Construction Safety Health program approved by
DOLE

b. Constraints analysis
Technical requirements
The contractor shall perform all works in the best and most
acceptable manner and in strict compliance with the
requirements and specifications provided in the contract and the
bid documents and shall observe the schedule of work as agreed
by the parties.
Manpower requirements
The contractor shall field a team of sufficient number of
professionals, provide manpower with expertise and experience,
and employ Registered Civil Engineers who can deliver the
required services and outputs as provided in the contract and the
bid documents: Provided that if NLPs representative requires the
contractor to remove a member of the contractors staff or work
force, for justifiable cause, the contractor shall ensure that the
person leaves the site within seven (7) days and is deemed no
longer connected with the work in the contract.
Further Assurances
The contractor hereby recognizes the position of truth and
confidence reposed on it by the contract and agrees to furnish its
best skills and judgement and to cooperate and coordinate with
NLPs
representatives
to
promote
efficient
business
administration and superintendence in the performance of the
required work, to have adequate supplies and materials, and to
ensure the implementation of the contract in the best and most
expeditious and economical manner consistent with the interest
of NLP.
License to Operate
The contractor warrants that it has the necessary permit or
license to operate and perform its undertakings in the contract
and agrees and obligates itself to comply with all rules and
regulations which are or may be issued by competent authorities.

Compliance with Laws and Ordinances

The contractor shall comply with all the laws, ordinances, rules
and regulations of both national and local governments that are
applicable to and/or binding upon the parties, the works covered
by the contract, or the persons engaged in the performance and
accomplishment of the project. The contractor shall be local
governments for the non-observance of such laws, ordinances,
rules and regulations

c. Objectives of the project

Nature
The contractor shall supply labor, materials, tools,
equipment and parts for the Project in accordance with the
contract and the bid documents.
The contractor shall perform and accomplish the project
strictly in accordance with its proposal and as provided in
the contract and the bid documents.
Quality of materials
The parts and materials to be delivered and installed shall
be the best of their kinds as described in the Bid
Documents: Provided, however, that NLP shall have the
right to inspect and reject materials which do not meet the
specifications and standards contained in the contract and
bid documents.

IV.

STATEMENT OF WORK

a. Development of Work Breakdown Structure

i.

Determine the total duration of the project

Total duration = A-B-F-J-M-R-T-X-Y =
15+150+30+30+45+30+45+15 = 360 days

ii.

Determine the critical path

Path A-B-F-J-M-R-T-X-Y
PAT
H
A-B
B-F
F-J

J-M
M-R

ACTIVITY
Ground Floor
Earthworks
Ground Floor
Concrete Jacketing (columns)
Second Floor
Concrete beams (w/ carbon
fiber)
Second Floor
Concrete Jacketing (columns)
Third Floor
Concrete Beams (w/ carbon

DURATIO
N
15

CUMMULATIVE
DURATION
15

150

165

30

195

30

225

45

270

fiber)
R-T
T-X

X-Y

Third Floor
Concrete Jacketing (columns)
Fourth Floor
Concrete Beams (w/ carbon
fiber)
Fourth Floor
Concrete Jacketing
(columns)

30

300

45

345

15

360

iii.

Allocate resources to project activities

iv.

Determine the total cost of the project

v.

Identify activities with over-allocation (if applicable)

N/A

vi.

Level or crash activities with over allocation (if applicable)

N/A

b.

Organizational Breakdown Structure

V.

SCOPE REPORTING

a. Cost Status Report

b. Schedule Status Report

c. Technical Performance Report

S-Curve is a display of cumulative costs, labor hours or other

quantities plotted against time. The name derives from the S-like shape of
the curve, flatter at the beginning and end and steeper in the middle, which
is typical of most projects. The beginning represents a slow, deliberate but
accelerating start, while the end represent a deceleration as the work runs
out.

VI.

RISK MANAGEMENT

a. Risk Identification
Access to NLP Premises
Regular Inspection
Review of Progress of Work
Variation Orders
Extensions of Contract Time

Safety and Security

Surplus Materials and Waste
Management
Inspection and Acceptance

b. Analysis of risk consequence and probability

Amount and Form
Discharge of the performance security
Grounds for forfeiture
c. Risk mitigation strategies
Performance Warranty and Warranty Security
Product and Service Warrant
Type of Contract
Structural Retrofitting
Restoration of Affected
Areas

Warranty Period
Fifteen (15) years
One (1) year

Anti-Graft practices
Pre-termination
Payment in case of pre-termination
Remedies in case of termination
Indemnity
Reparation
Amicable Settlement
Obligations not suspended
No employee-employer relationship
Non-disclosure
Non-adverse witness
Non-transferability
Non-waiver
Written Notices
Liquidated Damages
Venue of actions
Survival of warranties and covenants
Applicability of RA No. 9184 and other related laws
VII. PROJECT SCREENING
a. Determine the payback period of the project
Total Project Investment: Php 24,760,097.23
Annual Cash Flow/Revenue: Php 10,800,000.00
Individual
Students
Professio

Est. Daily
Visits
300
150

Entrance
Fee
100
100

Total
(Php)
30,000
15,000

nals
Total
Total
Total
Total

Daily Revenue from Visits: 45,000

Weekly Revenue: 45,000 x 5days =225,000
Monthly Revenue: 225,000 x 4weeks = 900,000
Annual Revenue: 900,000 x 12months = 10,800,000

Payback Period ( PBP )=

Investment
24,760,097.23
=
=2.2926 years
Annual Cashflow
10,800,000

b. Determine the IRR of the project (via MS Excel)

VIII. SUMMARY ASSESSMENT OF THE PROJECT MANAGEMENT

PRACTICE OF THE COMPANY

Upon the data gathering done by the group, they are able to
present the available document that doesnt require approval and strict
compliances. The project that aims to reconstruct the National Library of
the Philippines was well-planed and organized by the hosting parties and
contractor, for its best results. Proper allocation of tasks, cost and
budgeting was made and they are open to any possible risks that might
happen while the project is on-going. Contracts regarding the building
codes and service time were clearly stated, and as the group further

analyze and read the documents, they are pleased to know the flexibility
of the people behind the project.
The National Library Project Planning and management practice was
good. As what the group learned on project management, one of the main
requirements of a project, is that it should be SMART (Specific,
Measurable, Attainable, Realistic, and Time-Bound). Proper software was
used in the project to ensure its project time, and if it is open to
adjustments such as crashing and unexpected happenings like extension
of project that requires penalty cost, the management or contractor will
be able to know it ahead of time and can apply the possible strategies
and plans that are applicable in the project.
When it comes to finances, contracts regarding those are clearly
explained and shown, depending on the type of situation the project may
face. As for the groups analysis, their application on their lecture notes
regarding finances had a great impact on the group paper. They were able
to determine the possible payback period and internal rate of return in
their
project.