CASE STUDY -MBA

Francon Builder Journey to Tuao, Cagayan

(Taking the long, winding road to success)

Soldiers Journey

“Mr Jayson Cimatu, the National Irrigation Administration (NIA) Engineers rejected
the structure that you have made.” This is the first statement Mr. Cimatu received from
Ms Fiona – a Chinese national and the acting Project Manager during a phone
conversation. In a polite manner he answered her, “What’s the reason why they rejected
it?” Then suddenly Fiona burst out angrily like an automatic M16 rifle, “We gave you all
the support and help you needed, and now you are giving me a problem. You have no
engineer and you just let your workers do the job. Blah! Blah! Blah!” Mr. Cimatu just let
Ms. Fiona talk without listening to her and he just walked away. He went back to his hotel
in Quezon City and tried to calm down but the conversation with the Chinese woman still
lingers into his head. Then his phone rings but when he saw that it’s Ms. Fiona on the line
he immediately rejected the call. He could not bear that a Chinese woman shouting at a
military officer like him. At the back of his mind he is asking himself why a foreigner in this
country whom her country of origin have a territorial dispute would just act like she is not
a foreigner. As a true Filipino and with a military blood he cannot hide his true feelings
about China that is- anti-China mentality. “It’s only because of the project that I have to
establish a good rapport with them. Being a former investigator of many cases in my
previous assignment, I have to dig out the real cause of the problem, and that is now my
mission” Mr. Cimatu whispered.

Business Journey: How it started

He was enjoying his assignment place in Maguindanao and General Santos area
when his aunt called. She presented her idea to Mr. Cimatu that is - if he likes to have a
joint venture with her in hauling minerals business from one of the mining areas in
Palawan. “It will be a profitable business and political protection will not be a problem, I
know the vice mayor of the town of Espaniola, Palawan”, he recalled his aunts words. He
was convinced that the project was worth investing thus he agreed for the joint venture.
He provided his share to the project and from there, they were able to buy vehicles such
as Japan surplus dump truck. There were four of them in the family who were persuaded
to give their respective shares for the business. The venture was actually profitable
because they received good and regular income from the revenue of the business. The
project with its positive performance, again, they decided to buy another truck after a year.
Likewise, Mr, Cimatu bought his second hand Pinoy surplus dump truck. The two trucks
were primarily used for the joint venture operation while the other vehicle whom Mr.
Cimatu personally bought was also used for the construction company. His cousins saw
the progress of the business similarly bought two dump trucks of their own for the venture.
However, due to heavy activities in the operation, all trucks that they purchased were
always broke down. Thus, their regular income from the operation of the company were
used in the repair and maintenance of vehicles specifically the dump trucks. Sometimes,
they have to shell out for other expenses. The maintenance is too heavy that resulted to
a family misunderstanding. As a result, family members wanted to sell their shares to Mr.
Cimatu.

After studying his options, he decided to bring home all the trucks in Ilocos Norte and
started to venture with a new construction business of his own. Fortunately, his business
venture is timely because it was then that former President Benigno Aquino wanted to
focus on infrastructure. At first, the construction business was very lucrative and he have
to add more equipment. However, he was cheated by some general contractors until such
time that he could not maintain the cost of doing business and the maintenance of
equipment anymore. Hence he finally decided to look for other area to venture for his
construction project.

Hitting the jackpot

It was mid April 2019 when his friend from Tuao, Cagayan called. He asked him
if he is interested in joining him with his company. Mr. Cimatu learned that his friends
company was the only qualified firm to subcontract for the Chico River Irrigation Pump
Project. A Chines Funded project amounting to Four Billion Pesos. They visited the area
and discussed with the Chinese Company Project Manager. They have a nice
conversation and agreed with the contract prices. He was hesitant at first, to take
structural jobs because he wanted to focus on truck hauling. However, he was convinced
by his partner that it’s a profitable work for the structures.

During that time, he have no money to venture in Cagayan for the structures since
he have to buy materials and pay for the salary of his workers. A born risk taker, he
borrowed money from a lender and pawned his beloved pick-up truck. Mr. Cimatu needed
to pay the interest of course. So, he bought all the materials and tools needed as
preparation for their deployment. They spent a total of two hundred thousand pesos for
the materials and tools alone and another one hundred thousand during our deployment
to buy woods, diesel, foods, cash advance of the workers, allowance of drivers and
foreman, and additional materials. He slept in the area for a week to directly supervised
and lead the works. They disregarded safety procedures and security since the area was
also infested with New People’s Army (NPA). The profit became their primary concern
over their safety.

The Challenge Begins

During their first week of deployment, everything was going on smoothly and well.
However, problems aroused when they started the road crossing structure for the water
canal. The NIA and Chinese Engineers have different ideas and standards which
confused Mr. Cimatu and his team. They were caught in the middle of their unprofessional
implementation of the project. NIA engineers were very strict and will not allow any slight
mistake. If they found out, they will let the contractor remove what they installed for how
many days and do it over again. Luckily, Chinese Engineers lent a helping hand and
guided the team of Mr. Cimatu and approved the works but the NIA Engineers rejected it.
With this situation, his workers became irritated and always complaining since their work
was subcontracted labor. They have no income anymore and nothing to send to their
families. The dispute between NIA and Chinese Engineers were getting worse everyday.
 He decided that his most trusted foreman and his uncle who happened to be the
husband of his mother’s sister will take charge of the project. Mr. Cimatu could not endure
anymore the situation of seeing everyday those engineers. He might kill one of them if he
could not hold his temper. He gave all the instructions on what to do. His foreman is well
experienced in irrigation projects working in many bigger NIA projects. He even knew how
to read the plans.

Workers Losing Temper

While arguing with his fellow public servant at home, He received a telephone call
from his foreman. His workers encircled the engineers of NIA and Chinese and wanted
to hurt them. They could not endure anymore the style of the engineers. They are already
tired repeating all the instructions of the engineers. They wanted to hurt and even kill
those engineers. The three engineers are speechless and could not move since the
workers were armed and ready to hurt them. A cool blooded relative pacified them and
let the engineers walk away from the project site.
The following day, almost all of the workers left without any permission. They went
home and don’t want to work anymore taking away some of the company’s tools. He was
left with workers residing in the barangay and he needed to continue the project so that
they will be paid by the company and at least recover some of the expenses.

Because of that incident, the company became stricter. However, the project
manager is always advising me to disregard the NIA engineers.

A dream built through sheer grit and guts

The project continued the structure forms until pouring of cement with the
permission from the Chinese Company. However, when the forms were removed, there
are air gaps in the cemented structure. His uncle did not make any remedy to repair the
air gaps immediately until the NIA Engineers noticed it. They rejected the structure and
would not let the workers repair it. And that prompted Miss Fiona the acting project
manager to call Mr. Cimatu.
A family that builds together….

During the construction of the structure forms, the NIA Engineers would not allow
Mr, Cimatus Team to use plyboards that he personally bought. he insisted that it is alright
to use and it was even approved by the Chinese Project Manager. Steel forms were
limited and exclusively used by Chinese workers in other areas of the whole project.

During the scheduled pouring of cement, the Chinese Company failed to notify the
NIA engineers to supervise. When I asked Ms Fiona, she said that our relationship with
NIA is not good and they will not approve our forms so they proceeded with the pouring
with their own engineer.

Mr. Cimatu’s uncle whom he trusted to supervise the project, sold the tools and
equipment to finance his vices. He has no concern in repairing the problem of the
structure and secretly left the area leaving all his debts problems to him. Mr Cimatu’s
dilemma now is : should he continue with his business journey or concentrate his duty as
a soldier.
During our site inspection of the Chico River Irrigation Canal Project

Barracks construction in progress

 With my workers

Enduring the heat of summer. Road Crossing Structure.

Structure ready for cement pouring using ply boards and woods.

Well-funded Chinese metal forms and Chinese workers.