Forum on Infrastructure and

Business Matching

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 Background of the Study

The Bureau of Investments (BOI) of the Ministry of Trade, Investments and Tourism
(MTIT)-BARMM is conducting a survey to assess the status of the demand for supplies,
materials and labor in relation to the construction industry in the BARMM.

The results of the study will serve as baseline data in assessing the current
construction industry in terms of availability of supplies, materials and labor. Further,
the survey is a prelude to the conduct of a “Forum on Infrastructure and Business
Matching."

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 Respondents of the Survey
The respondents of the survey are contractors, with 29 participants from the
provinces of Basilan, Lanao del Sur, Maguindanao, Sulu, Tawi-Tawi and Region XII and X.

Breakdown is as follows:
8 contractors in Cotabato City;
5 contractors in Tawi-Tawi;
5 contractors in Basilan;
4 contractors in Maguindanao;
4 contractors in Sulu;
1 contractor in Lanao del Sur;
1 contractor in Cagayan de Oro City; and
1 contractor in Koronadal City

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Profile of the respondents

15 contractors (51.7%) have been involved with construction projects in the

BARMM for less than five years, while 14 or 48.3% have more than five years.

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Profile of the respondents

Out of 29 participants, 13 contractors (44.8%) have C & D category. 8 contractors (27.6%)

are from B category, 4 contractors (13.8%) belong to category E, 2 contractors (6.9%) in
category A and 2 contractors (6.9%) in category AAAA and AAA.

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Profile of the respondents

22 contractors (75.9%) sourced out information on infrastructure projects

through PHILGEPS, while 17.2% through contractors’ association, and 6.9%
through word of mouth.

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16 contractors (55.2%) are aware of the PPP Projects in the BARMM while 44.8% or 13
contractors are not aware.

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15 contractors (51.7%) are aware of the ITH and other incentives being provided
for PPP Projects in the BARMM while 14 contractors or (48.3%) are uninformed of
the incentives being provided by the government.

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18 contractors (62.1%) sourced out their construction materials in the BARMM,
while 13 contractors (44.8%) in Davao and 4 contractors (13.8%) in Manila.

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In the last 3 years, the cost of supplies and materials in the BARMM had been
costly however reasonable according to 15 respondents (51.7%). While 41.4% (12
respondents) answered average cost which means prices are affordable based
on quantity and 2 respondents (6.9%) answered highly costly which means prices
are keep on increasing.

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Cost of Supplies and Materials in the BARMM for the last three (3)
years

7% Low Cost (Low Price)

Average Cost (Affordable prices based on quantity)
Costly (Reasonable Price based on Quantity &
Quality)
41% Highly Costly (Keep on Increasing based on Quality
and Quantity)

52%

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According to the respondents, sand and gravel (79.31%), cement (75.86), metal and
steel (72.41%) electrical (65.52%) and wood and timber (48.26%) are the most important
construction supplies and materials in the construction industry, respectively. Ten
contractors answered tiles and glass (34.48%) as an important materials while bricks
(48.28%), precast concrete (48.26%) and plastics (41.38%) are slightly important
construction supplies and materials.

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Most available to least available construction materials
Construction Items Percentage Ranking
Sand and Gravel 44.83% 1
Cement 37.93% 2
Electrical 31.03% 3
Wood and Timber 31.03% 3
Metal and Steel 31.03% 3
Plastics 27.59% 4
Precast Concrete 24.14% 5
Glass 24.14% 5
Bricks 24.14% 5
Tiles 20.69% 6

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CONSTRUCTION MATERIALS RATING LEGEND
PERCENTAGE
Late Payments by the Government to Contarctors Negatively Affected 41.38% 1st
Peace and Order Negatively Affected 27.58% 2nd
Availability of Supplies and Materials Negatively Affected 20.69% 4th
Covid-19 Pandemic Neutral 24.13% 3rd
Design and Scope change Neutral 17.24% 5th
Distance to Project Site Not so Affected 12.24% 6th
Regulatory Requirements Least Affected 12.24% 6th
Availability of Labor Least Affected 10.24% 8th
Schedule Problem Least Affected 12.24% 7th

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In your opinion, with one (1) year left of President Rodrigo Duterte’s term, where are we now on the Build, Build,
Build (BBB) Program in terms of accomplishment?

6.90%
10.30%

20.70%

62.10%

25% 50% 75% 100%

18 contractors (62.1%) expressed that there is already 75% completion on the BBB
Program of President Duterte. While 6 contractors (20.7%) answered 50% completion, only
3 contractors (10.3%) answered 100% completion and 2 contractors (2.9%) answered 25%
completion of the BBB program.

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Skilled 44.82% The respondents never encountered issues in terms of the
Semi-Skilled 48.27
laborers which means that there is enough supply of
manpower of laborers, while rarely on skilled and semi-
Laborers 51.72
skilled.

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22 contractors (75.9%) expressed affirmative response on the high impact of
infrastructure projects to the socio-economic development of the BARMM, while
7 contractors (24.1%) answered average impact of infrastructure.

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SUPPLIERS

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Respondents of the Survey
The respondents of the survey are suppliers from Lanao
del Sur and Maguindanao province;

Breakdown is as follows:

30%
19 suppliers in Maguindanao
8 suppliers in Lanao del Sur

70%
Respondents of the Survey
The respondents of the survey are suppliers from Lanao Cotabato
del Sur and Maguindanao province; City
25%
Breakdown is as follows:

19 suppliers in Maguindanao Marawi Cotabato City

(1 in Buldon, 3 in Sultan Kudarat and 15 in Cotabato City) City Buldon
50% Sultan Kudarat
8 suppliers in Lanao del Sur Marawi City
Buldon
(8 in Marawi City)
6%

Sultan
Kudarat
19%
Seventeen respondents (63%) are suppliers with above
five (5) years operation in the construction supply
business, while ten respondents (37%) are suppliers
with less than five years.
22 respondents (81.5%) answered they have mixed type of clients (public
and private) while 5 respondents (18.5%) answered they have
government type of clients (both local and national).
Company Category Monetary Value Percentage

Micro ≤Php3,000,000 25.09%

(7resp.)
Small Php 3,000,001- Php 15,000,000 40.7%
(11 resp.)
Medium Php 15,000,001-Php 100,000,000 25.9%
(7 resp.)
Large Php 100,000,001- and above 7.4% (2 resp.)
Most in-demand construction supply
Please mark the following items from 1 to 10. Mark “1” next to the item if it is the MOST IN-DEMAND construction material in the BARMM and mark “10”if it is the LEAST.

Construction Rating Ranking

Materials
Bricks Average 3
Cement Most in-demand 1
Precast Concrete In-demand 2
Electrical Most in-demand 1
Glass Average 3
Metal Steel Most in-demand 1
Wood & Timber Most in-demand 1
Plastics Average 3
Sand and Gravel In-demand 2
Tiles Average 3
Construction Materials Rating Ranking
Bricks Rarely 3
Cement Frequently 1
precast Concrete Often 2
Electrical Rarely 3
Glass Average 2.5
Metal & steel Rarely 3
Plastics Often 2
Sand & Gravel Often 2
Tiles Often 2
Wood & Timber Often 2
 Local Suppliers

Construction Materials Suppliers

Bricks BARMM
Cement DAVAO
Precast Concrete BARMM
Electrical DAVAO
Glass DAVAO
Metal & steel DAVAO
Plastics DAVAO Note: They also sourced out construction materials from
Sand & Gravel BARMM
Tiles DAVAO suppliers in Iligan City and Cagayan de Oro City.
Wood & Timber BARMM
Suppliers’ Abroad

Co n s t ru c tio n Ma te ria ls S u p p lie rs

Bricks China/ USA
Cement China/ Malaysia
Precast Concrete China/ Outside Asia
Electrical China
Glass China/ Malaysia
Metal & steel China
Plastics China/ USA
Sand & Gravel China/ Malaysia
Tiles China
Wood & Timber China/ Malaysia
 Construction Materials Rating
Bricks Never encountered shortage
Cement Rarely encountered shortage
Precast Concrete Rarely encountered shortage
Electrical Rarely encountered shortage
Glass Rarely encountered shortage
Based on the table, it only shows that there were enough supplies of Metal & steel Rarely encountered shortage
construction materials in the last two years amidst pandemic. Plastics Rarely encountered shortage
Sand & Gravel Rarely encountered shortage
Tiles Rarely encountered shortage
Wood & Timber Never encountered shortage
Frequency delays Rating

Frequently 7.7% (2 resp.)

Rarely 53.8% (14 resp.)

Never 38.5% (10 resp.)

 Cause of delivery delay

Construction Materials Main cause of delivery delay

Bricks Covid-19 Pandemic
Cement Covid-19 Pandemic
Precast Concrete Covid-19 Pandemic/ Equipment failure
Electrical Covid-19 Pandemic
Glass Covid-19 Pandemic
Metal & steel Covid-19 Pandemic
Plastics Covid-19 Pandemic
Sand & Gravel Covid-19 Pandemic
Tiles Covid-19 Pandemic/ Equipment failure
Wood & Timber Covid-19 Pandemic
Factors that affected the price increase of construction supplies in the last two years;

Major cause in the price increase Rating Ranking

Covid-19 Pandemic Major cause in the price increase 1
Commodity Pricing Major cause in the price increase 1
Labor Costs Less cause in the price increase 3
Local Market Disruption Less cause in the price increase 3
Peace and Order Least causein the price increase 7
Supply and Demand Major cause in the price increase 1
Scarcity of Supply Major cause in the price increase 1
 Major challenge encountered by suppliers Ranking
Competition Threat 2
Covid-19 pandemic 1
Peace and Order 4
Scarcity of Supply 3
 4.20%

25.00%

41.70%
Source of Information Percentage
PHILGEPS 41.70% (10 resp.)
MEDIA 4.20% (1 resp.)
WORD OF MOUTH 25% (6 resp.)
SUPPLIERS'ASSOCIATION 25% (6 resp.)
LETTER/ INVITATION TO BID 4.2% (1 resp.)

25.00%

4.20%

PHILGEPS MEDIA WORD OF MOUTH

SUPPLIERS' ASSOCIATION LETTER/ INVITATION TO BID
YES 88.89% (24 resp.)
NO Response 11.11% (3 resp.)
 Summary of the Survey
There were 56 survey forms distributed for contractors.

Out of 56 survey forms released, 29 respondents (51.79%)

answered and participated in the survey.

There were 44 survey forms distributed for suppliers.

Out of 44 survey forms released, 27 respondents (61.36%)

answered and participated in the survey.

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