CONSTRUCTION COST AND RISK MANAGEMENT

Engr. Kim Carlo Lat 0:00:

All right. So again, good afternoon everyone to our viewers. My first question is what comes in
our minds when we hear the word risk? Of course sir, we get scared, starting second thoughts
about the thing that we are going to comply with or to obtain to do. Thus, when there is a
possibility of making a profit kung gusto nateng kumita at may mga posibilidad rin na we lose
money, we call it risk, okay. So, today I have given an hour to share with you the brief
introduction for cost and risk management, and for us to realize what is or what this is all about
that we need to address the question na gaano o paano tayo naghahanda? On what is your
company, or the company's level of preparation against a specific disaster calamity or so on?
Gaano at paano tayo naghahanda sa mga bagay na hindi pa natin nakikita pero alam natin na
merong posibilidad na dumating. Perhaps we are all aware that when we talk about
construction, businesses, construction projects, and construction firms, we are subjected to this
word risk, okay. Regardless of what color are we in, regardless of kung sino ang ating dinadala,
no exemption, whether we are campaigning for sama-sama tayong babangon muli, or we are
campaigning for gobyernong tapat, angat-buhay ang lahat. The thing is, walang exemption
pagdating sa mga risk. Generally whether this, it's meeting the terms of a contract, maintaining
employee safety on the job site, project management, branding, and marketing, or dealing with
natural calamities, every piece of any construction project has its own hazards, we have to
remember that, if not manage ano ang mangyayari? So this risk can hurt, affect or can hurt or
affect your construction projects and prove fatal to your bottom line. Mas maaapektuhan yung
mga nasa baba, sa presensiya ng mga pabago-bago at pagtaas ng mga presyo ng mga bilihin,
lalo't higit sa mga panahon ngayon, we acknowledge that noh. The rising costs, new industry
trends, more complex projects, and increased safety concerns. Lalo't higit sa panahon ng
pandemya, having a risk management plan as a must-have for any company. I still remember
last May, I took the courage noh, to take or to develop or to start a small construction at the age
of 24 and then I realized noh, na there are so much risk that I have to attempt, that I have to
solve. It's not simply an objective of how to gain money, how to gain profit, o mas maging kwela,
cool o gwapo dahil you own a construction, but then again, I realize it's a big deal. This how to
start a construction business, and right now that we are talking the risk management, it's a big
help. An effective risk management plan must have an easy-to-follow yet detailed process to
help you control the risks, make decisions on how to deal with them, and turn them around to
boost your company. Okay, so for this afternoon, we will be talking the construction and cost and
risk management, the source of construction risks, how to manage risks, and of course the
benefits of risk management in our construction. So as we are defining the construction costs
and risk management, let's see this first.

Engr. Kim Carlo Lat 4:19:

So when we talk about the construction management, we are subjected into this forwards noh,
resource planning, cost estimation, cost budget, and cost control. Later on, I think there is a
speaker for cost control, and for sure, he'll be discussing the major parts or the deep or the core
part of this call cost control management, but allow me to give you an insight with this cost
management. It is a process noh, like what I have mentioned of resource planning, when we do
the cost estimating when we do the budgeting and controlling project costs. Cost management
processes are in place to help project teams plan and control budgets during the project life
cycle, throughout the project life cycle. So, the other hand, on the other hand, we have the risk
management, as mentioned here, process of identifying and evaluating the risks, methods that
can be used to mitigate their impact, and entails planning, monitoring, and controlling instances
of risks. So, for us to be able to craft a risk management plan noh, kailangan alam natin kung
saan nanggagaling ang mga posibilidad o ang mga posibleng problema natin. So we need first
to identify the factors that could most jeopardize our projects. So let's see kung ano ano ba o
ano ba yung mga main na pinanggagalingan nung ating mga constructions risk, and then we
will try to create your risk plan, you'll need to first figure out which elements are most likely to
threaten our initiatives, okay. So, we have, I have here the five sources of construction risk, una
yung kaligtasan, the safety, then we'll be talking about the financial, the legal and of course, the
project and environmental. Marami ang nagulat noong totoo pala ang epekto ng pandemiya, not
only in the health and the safety of people pero mas nagulat tayo kung gaano tayo naapektuhan
ng pandemiya in construction. That is while we enter in any construction site, may malaking a
signboard dun, "safety first". And when we did not expect that, malaki ang naging epekto nito sa
industriya ng construction. So, when we talk about the safety risks, any construction site risks or
hazards that can lead to worker accidents and, of course, to the health of our workers. So, the
first thing that we have to check noh when it comes to the sources of construction risk is the
safety. The second thing is the financial. Okay. So, factors that impact your financial flow,
including lack of sales, problems with the economy na we experienced now, unexpected costs
increase, ang pagtaas at ang hopefully pagbaba minsan noh, ng mga materyales, and of
course, the competition with the other firms or with other companies na hindi nawawala, okay.
And then, the third one is the legal. So when we talk about the legal, it is the potential dispute or
disputes in the fulfillment of contractors or the contracts with our client. And then, we have this
project's risks. So, project costs are hazards such as poor management of resources,
miscalculation of time, and what else? Lack of proper policies or misunderstanding of the
deliverables for our project. So, those are the risks under our projects. And then, we go on with
the environment, okay. Calamities, floods, earthquakes, and other natural phenomena that
damage construction sites and make work inaccessible. Kailangan while we are starting have
noh, and when we get to start a construction business, as we focus on our vision on our the
thing to obtain, we should not remember na meron at meron talagang problema na pwede
nateng kaharapin. I'm giving you now this noh, the safety, financial, legal, and project and of
course, the environmental, as the fundamental sources of construction risk. Again, kailangan we
are very aware kapag when we put up a construction na we are, we will be subjected to face
this kind of problems or to face this kind of risk, okay.

Engr. Kim Carlo Lat 9:55:

So, the next one is now that we know noh, kung saan ang potential na manggagaling yung ating
mga risk, ang tanong ngayon is how we are going to manage the risk? So you'll need to create
a risk management plan to properly manage risk. The procedure is divided into six major steps
so, what are those procedures? During my stay, as I teach in Mapua noh, one of the best thesis
or research papers that they are providing is coming up with different kinds of frameworks. So,
one of those frameworks is really addressing noh, kung ano at paano natin masosolusyonan
yung ating mga risk. So, what I'm trying to say here na hindi standard this six major steps noh,
there are different kinds or different types on how we will approach the risks that we may face,
okay, so let's begin with identifying the risk. Siyempre kailangan alam natin kung ano ba yung
mga risk na ating bibigyan ng solusyon. So, now that you know some of the most common
construction project risks, it's time to identify those unique to your project, kailangan alam natin
ano ba yung specific na risk dun sa aming project. So, risk identification should take place
during the pre-construction phase of the project to allow for time to manage any potential risks
before accepting them. So, as we survey as we checked the possible project as we are in the
pre-construction phase, kailangan malaman na natin ano-ano ba yung mga posibleng kaharapin
nung ating proyekto, and that is identifying risks. Remember that an effective way to analyze
risk is to hold brainstorming sessions with your project team and stakeholders. Kapag mas
maraming nag-iisip, mas marami tayong nalalaman, at mas marami tayong magiging
consideration, mas marami ang magbibigay sa atin ng possible na thing, possible solution to
manage the risks, okay. So, the goal is to identify all the possible scenarios that could impact
the project at an hand. A brainstorm session will allow teams or all the teams to contribute their
knowledge and expertise. Past projects can also be a help, can provide a helpful reference to
underside, to understand the size, the scope, and of course, the location. So, as I have
mentioned in our identifying or in order to identify the risk, we have to do the brainstorming
among our colleagues, among our team, para mas malawak yung ating panggagalingan ng o
ang ating pag-iisipan. And then, the next thing is prioritize noh, prioritize risk in order of
importance. Engineer, napakaraming risk kase noh, but we have them to prioritize it, we have to
acknowledge na hindi lahat ay kaya nating sabay-sabayan or sabay-sabaying resolbahin. So,
we have to set noh, kung ano yung pinaka priority, medyo priority at yung no priority. We have to
remember also that construction risks vary from each company, depende kung nasaan ang
industriya natin o kung ano ang nararanasan natin. A risk that may affect other businesses
might like, might not be a concern for yours. Hindi lahat ng concern niya ay pwedeng concern
din ng company mo. After identifying your risks, it is important to prioritize them based on two
factors. So, what are those two factors?

Engr. Kim Carlo Lat 14:28:

Una, the potential impact to your business. Ano yung impact? Gaano kalakas or kagrabe yung
magiging impact nun sa construction business natin? Pangalawa, the chance of that risk
materializing. When possible, we have to use the numbers such as you know, a peso or dollar
amounts and percentage for risk analysis para makita natin yung gravity, noh. So, as you can
see here, high impact, high probability, risks should be handled first, yun ang ating dapat
inuuna, while low impact, low probability of risk should be addressed on the last part. For
example, a price increase in the materials for your project can hurt your margins. So, it should
be handled with medium priority. Natural disasters have a high impact but have low probability.
So, if I, if you hired a contractor, and that contractor is unable to fulfill their portion of a project,
that risk is an example of one of the high impact, so, high probability, okay. So, again, creating
this three by three as standard or priority grid, like the one flash on your screen, can help us to
determine the least, most crucial for the management to give solution, okay. So again, for the
risk management, una, you have to identify the risks. Pangalawa, you have to prioritize the risk
in order of the importance. After that, determine your risk response strategy, let's strategize. So,
as you can see here, we have "avoid the risks, transfer the risk, mitigate the risk, accept the
risk". So, once we have evaluated the priority of the risk, we want to select a response strategy
for each hazard, whether it's for safety, for the environment, for legal, and so on, noh. While the
risk are complex, risk response techniques fall into these four categories, we have this avoid,
transfer, mitigate, and of course, accepted. So, when we talk about avoiding the risk, throwing
down projects or change the scope or scheduled or and scheduled. So, kapag nararanasan
natin at pakiramdam natin, if we feel that or if you feel that you are unequipped to handle or do
not have the right risk plans set in place, the safe option is to steer clear of the project or change
the scope, palitan natin. For example, you may want to avoid the building projects in areas
prone to earthquakes simply because we're not yet equipped with kung paano natin mas
masosolusyonan yung mga problema already present in the place, noh. Sabi nga natin kanina
as we identifying it, posible na makikita talaga natin yung mga potential na magiging problema
natin. So, if we can, if we are not equipped, we have to avoid it or we have to at least change
the scope or the details of our projects for example. Next is to transfer the risk, okay. So,
transfer risk to insurance or issue performance bonds. So, what does it mean? So, while we
acknowledge na medyo mas mapapagastos tayo, this solution may ultimately be less costly
than accepting the totality or the gravity of the risk itself. So, halimbawa, you can transfer the
risk to your insurance provider or approach an agreement with a supplier or subcontractor to
pass the responsibility. So, we will be getting noh, insurance, or help from the third party so,
whatever happens, we have the backup so, that is transferring the risk. Pangatlo, under the
determination, our response is to mitigate it, mitigate the risks, change suppliers or provide
equipment and training to workers. So, when you mitigate risk, okay, you create plans to keep
the risk as low as possible.

Engr. Kim Carlo Lat 19:24:

You can train workers and supply proper safety equipment to lessen the dangers of safety risks,
for example. So, indeed, what we are doing now is somehow noh, as we are getting knowledge
on how to start business or construction business, we are indeed mitigating it noh, we are trying
to be ready to solve and to face the possible risk that we may encounter. And the last thing
under the determination of the risk response is the acceptance, okay. Kapag sinubukan na natin
to avoid it, to transfer it, to mitigate it yet we still have the risk, we have to accept it noh, create a
contingency plan to work around the risk. There are times where you need to accept the risk to
complete a project. For example, you may decide to accept the delays cost noh, by weather, but
you plan to manage the project better to work around the problem. So, acceptance, accept the
risk, and give solution to the risk. Again, avoid, transfer, mitigate, and accept the risk. The fourth
one under our risk management is to execute a risk management plan. We have here the
strategy, the structure, the operations, okay. So, after conducting the assessment, on the
possible solutions that we give noh, to a risk management, we have now then to execute a
management plan. So, you'll then want to craft your risk management plan so, a risk plan
optimizes your risk response strategy, detailing crucial information for team members and
providing a set of solutions to either mitigate, transfer or accept the risks. In addition to stealing
priority, noh, an effective plan should detail the sources for each of your defined risks. So, again,
we have here the strategy, the structure, and the operation. So, the first one is the strategy,
okay. So, managing risk at the enterprise level using an indemnity plus in insurance or using risk
as means to improve the profit margin, okay. And then, structure, so creating a formal risk
department ensuring insurance protects earnings stream preventing over participation in
projects with a high risk. So, we will be creating a structure or a formal risk department that will
really address the possible problems. And then, the third one is operations. Set process to
review risks, create a safety culture and program. Setting a process to review risks, creating a
safety culture and program manage subcontractors and vendors preparing a comprehensive
documents and that is with our operations.

Engr. Kim Carlo Lat 22:58:

Again, our fourth risk management strategy is to execute a risk management plan. And then, the
variety of our services to address these complications in order to optimize or in optimizing your
firm to handle hazards, we have the software, financing, professional advice, and technology.
And as you have discussed this noh, on your on the previous meetings that we attended the
seminar, the webinar, noh, makikita at nalaman natin na may mga innovative talaga na mga
sources para mas ma-lessen natin yung mga potential risks natin noh. So, we have software,
the right cloud-based construction management software can help you manage and process
tasks quicker, including building design, the cost, safety compliance, and accounting so, these
functions help to mitigate risk as you handle an increasing number of projects. So, kailangan
aware tayo kung ano ba yung mga updates noh, when it comes to a, to our using of software.
Ano-ano ba yung mga bago at paano tayo matutulungan noh? Our awareness and our
knowledge doon sa software it will, of course, make our project easier, mas mabilis, quicker noh.
And of course, mas mababawasan yung potential risk natin, okay. And then, the financing. So,
we all know that construction businesses noh, they have credit lines, okay, often provide a good
precaution if you decide to accept various risks. So when we decide noh, we have to back up
with our plans in terms of financial stability and with the help of a construction credit lines, with
the help of the banks' noh, we may manage our construction risk. And of course, seeking with or
to a professional advice, okay. So, legal firms that specialize in construction contracts, as well
as bankers, accountancy firms, and different consultants are good sources of advice for
professionals for businesses. So, your insurance program can also advise you requirements
and the pros and cons of different programs that you are in. And of course, we have the
innovation of technology, okay. The use of new essential innovations such as, let's say drones,
VIM, and prefabricated building methods can help mitigate or eliminate common risks such as
poor time management, safety hazards, and then weather. So, we have to make use of our
connections, we have to make use of software, finances, we have to seek for professional
advice, and of course, we have to make use of the modern technology para again, maiwasan
natin kung ano yung mga posibleng magiging problema natin along the ride, okay. And next, I
hope you are still listening, I only have two slides left for this introduction of the costs and risk
management. And of course, involve members of the team. During the discussion under the
leadership skills and how we should lead the team, it was discussed there na it is important that
we involve or we acknowledge the participation ng bawat miyembro ng ating organization. We
cannot do it alone as CEOs, presidents, or executives, we cannot do it alone. So, construction
risk management is not a solo activity, okay? It must require the contribution of the major
players in the company. Updates on risk should be communicated at every level, mula sa baba
hanggang sa taas o mula sa taas hanggang sa baba, you have to communicate the possible
risks that we may face.

Engr. Kim Carlo Lat 27:43:

The three key players to participate in the construction process is, of course, the owner team,
the design team in terms of construction noh, and of course, the constructor or the contractor
team. So, since each team has its own set of practices and procedures, it is important or vital for
us to look into their processes and identify and eliminate risks where whenever possible, the
stakeholders also play an important role that can impact risks. So, the types of information to
monitor include the cash flows, drawings, and diagrams, schedules, and cost information, what
else in inspections, project files, even the logs, the contractors or the contracts, and regulatory
documents. So, we have to involve the member at every level noh of our team, the next one or
the last one is the risk contingency, and revise sorry, that is contingencies noh and revise. So,
with any reason that you decide to accept you'll want to create a contingency plan an alternative
method for finishing a project despite accept the risks noh, remember when we are creating a
vision of a company and in order for us to sustain it we have to develop different strategies
different or specific objectives in order for us to gain or to obtain our main objective that with this
risk contingency and revise we have to do, to do it as well noh, kailangan makita naten yung
bawat punto na pang gagalingan nung ating risks o nung ating possible problems. For example,
if your company decides to accept a project that provides a considerable amount of safety
hazards, you'll want to communicate those hazards to workers, your contingency plan would
provide solutions such as providing a list of chemicals, labeling all containers, and using
software that allows workers to check off safety precautions. So, risk management is not a
set-and-forget process. Again, let me repeat noh, it is not a set and forget process, but
consistent monitoring and revisions to your plan will help increase the resilience of your
business against any possible risks. kaya tayo nag kakaroon ng mga mid-year, annual planning
and for us to check whether our solution or the framework that we crafted for that possible risk
noh, is really working for us to assess for us to check okay. So, even after all risks have been
calculated and accounted for residual waste often remain due to unknown factors. So risk
transfer and risk acceptance as we mentioned on the previous slides noh, are common
response strategies to respond [Unintelligible] to this risk.

Engr. Kim Carlo Lat 31:41:

Again you have this identify [Unintelligible], sorry. Determine your risk response strategy and
then execute our plan even members involved the whole organization and then revise. Okay,
now we go on with the benefits of risk management in construction, after we acknowledge after
we identify, and then created after we created a contingency plan and revise our frameworks,
eto naman yung makikita naten noh, it's very beneficial for us. So, these are the benefits of risk
management in construction. So, the strategy may give your firm or construction firm with a
great deal of convenience and of course, the security. So by now, it should be evident that a risk
management plan can provide your company with great ease and security while building out a
plan requires a lot of effort effective risk management provide or provides some essential
benefits for your company.
Engr. Kim Carlo Lat 32:48:
So what are those benefits? Una streamlined operations, so once we have this risk
management plan, once it is set, it helps make your future projects easier to assess, okay. mas
madali na katulad nung mga previous topics noh, sa una kase kailangan aalamin mo maraming
possibilidad at mas marami ang risk while we are starting up, okay and a long run makikita
naten, sabi nga naten hindi lang isang beses ginagamit yung framework that we can develop or
the management plan naten noh, kailangan pang matagalan, binabago pero kailangan laging
chine-check naten noh. So again, once a risk management plan is set, it helps you make your
future projects easier to assess team members have now the knowledge and tools needed to
make decisions and avoid risks improving the efficiency of your company. The second benefit is
enhanced safety of course noh, has one of the sources of risks noh safety, we have to enhance
it. Does risk management plans also help teams follow all safety and security standards on
construction sites. The possibility of a safety hazard is minimized moving projects along faster.
And the third one is higher confidence in projects. Meron na tayong framework, meron na
tayong plan so mas malaki o mas mataas na yung level of confidence naten to get projects noh,
and then we will start developing or considering new projects na hindi naten rireporte noh. So
with that risk management plan, we may have higher confidence in project so being equipped
with a sound plan allows teams to gain confidence over time in their projects over time as they
balance it, so since they are able to plan and fix mistakes, teams can save time and resources
in their projects. And lastly, pinaka gusto nateng marinig, we will definitely increase our profits.
So taking on un-managed risk can hurt your company profits.

Engr. Kim Carlo Lat 35:50:

Kaya lang, however, A carefully crafted and actionable risk plan helps to minimize this risk,
streamlined the operations, enhanced safety, lower costs and higher project confidence leads to
increase profits over the time. So again, as benefits nung ating mga risk management
framework and plans we have streamlined operations, enhanced safety, higher confidence in
projects, and increase profits. And as you go along this afternoon, we will be talking about the
cost control and some on construction management plans as well. So I think that's all my part as
the introduction for construction, construction risk, and of course the cost management. So,
remember again, let me remind noh when there is a possibility of as making money up as
making income and the possibility of losing it that that is a risk. And we have to take and we
have to accept it that risk is present sa lahat ng gagawin naten in our construction. Again
marami salamat for sharing your time with me at magandang tanghali po o hapon sa inyong
lahat.

Engineer Clark 37:15:

Wow, Engineer. Kim thank you very much noh, sa ano naten topic naten about the risk and cost
management. question lang you said a while ago that diba pumasok ka sa construction industry,
can you share naman yung naging problem mo or how did you solve naman noh. During the
process of the project? Can you share to our participants paano mo siya sinolve noh.
Engr. Kim Carlo Lat 37:42:
Well first Engineer I would like to tell first to our viewers na they have made a right decision of
joining this how to start a construction business. Because two years ago, wala meron nang, of
course, meron ng mga ganito kaya lang masyadong malaki yung tiwala mo sa sarili mo na sa
akin noh, sabe ko kya to kase, I'm in academe nag master's ako in construction management.
So perhaps alam ko, alam ko na yung mga how to manage it. Kaya lang along run noh, to share
it noh. Nung during my first project, I took a very my first project last year as an individual
contractor, nagulat ako na hindi pala kung ano yung mga tinuturo ko noon that really applied
doon sa specific and exactly doon sa mismong industriya. So what happened there is of course
we have your mis-calculations, though you are teaching cost estimation, Na akala mo alam mo
na and then you get to check the estimates of your students, but then it's on the actual field
makikita mo, mali maraming mali, maraming pagbabago, maraming kailangan iconsider na mga
risk naten noh. So hindi ako nahihiya na during my first project hindi talaga ako kumita. Tas nag
labas pa ko ng puhunan noh. Kaya when I was reading your profile Sir. Clark noh, during your
first years din, hindi lang pala ako. So it's very common to everyone kumbaga license and your,
how you did during your college or how you do, how you do it things now, hindi talaga lisensiya
kung paano makakaiwas sa mga posibleng problema. So during my first years doon sa
constructions doon sa business noh, mahirap una mahirap humanap ng kliyente kapag hindi mo
na identify yung tamang market. Kaya while I'm listening to the branding and marketing, so
nakikita at natutunan ko, ganun pala yun dapat noh. You have to get your market first, you have
to identify who you are first, prior to get to involve yourself in different industries of construction.
So marami maraming natutunan Sir. Clark.

Engineer Clark 40:33:

Wow thank you, so talagang ano noh, hindi ibig sabihin na more on by the book lang tayo, more
on about the you know, sa education noh, more on of course it's a mix iba rin yung equip tayo
with education and of course the experienced. Kase more on the experience dun tayo natututo
diba engineering?

Engr. Kim Carlo Lat 40:58:

Tama yan sir.

Engineer Clark 40:58:

Once kase noh, na pagdaanan naten yung mga ganun klase ng risk mas naiiwasan na naten
siya to the future projects na madadaanan naten. And it comes to cost money expense sabi mo
kanina lumiit na nga yung kita naten noh, or worst baka nag abono kapa.

Engr. Kim Carlo Lat 41:17:

Tama yun sir, nangyayari nangyayari yung mga ganun, kaya nga what I have learned is that in
order for us to manage it properly, we have to see it exactly kung paano [Unintelligible] sa
mismong ground. Kailangan, una kailangan talaga handa tayo, sabi nga naten kapag meron
tayong potential or meron tayong possibility to earn and possibility to lose money noh, we called
it risk and we have to be ready to take that risk. Pero siyempre sir noh, as you go along dapat
hindi naman laging, baka risk lang to o parte lang to ng mga problema nateng sosolusyunan.
We have to learn something from our past projects definitely, at yun na yung pinaka kita naten
noh. Especially yun na yung pinaka take home ko, so lagi kong kino convince ang sarili ko na
baka ganun talaga yung presyo ng experienced, ganun talaga ang presyo ng kaalaman, at baka
ganun talaga yung presyo ng puhunan na dapat meron ako, so yun yon sir.

Engineer Clark 42:35:

Para sa UF lang yan noh, University of Failures.

Engr. Kim Carlo Lat 42:40:

Sa UF tama po

Engineer Clark 42:43:

Miss Carla sabi, nag abono kami dahil sa pandemic kase nga diba hindi naman ini expect yun
noh, and then yun lang. I think we're good engineer sa susunod na ating programs and
webinars sana makasama ka namin ulit.

Engr. Kim Carlo Lat 42:58:

Maraming salamat sir

Engineer Clark 43:01:

Baka may gusto kang i-plug like your services or anything na pwede niyong i-plug, you may do
so.

Engr. Kim Carlo Lat 43:10:

Yeah, of course, if you need help with some of our construction services noh, maliit na
construction company palang yung sa amin noh. And I started this construction business a year
ago lamang. So if you need anything, just contact me, I am the managing director for the Lat
Construction and Engineering consultancy. And of course, even in some of the academe sides, I
can also help noh, sa ating mga viewers. Again maraming salamat po for this opportunity to
learn and to be with you this afternoon. Maraming Salamat sir.

Engineer Clark 43:52:

Engineer sorry, may isa lang question dito from Architect Gelo. Question lang can we add the
contingency by percentage to our quotation on client?

Engr. Kim Carlo Lat 44:04:

Sorry, sir, Ano yun sir?

Engineer Clark 44:06:

Can we add daw ba ng contingency? So quotation to their client?
Engr. Kim Carlo Lat 44:11:
Yes, sir noh. So kaya lang we have to be very, we have to inform our client as well, noh.
Kumbaga eto yung mga nasa pag uusap naten. But during the presentation, and if we think that
during the pre-construction process and we discover or we see na may mga posibilidad na
ganoong construction and risk, noh pwede nateng siyang i-add noh, Pero again depende yan sa
pag uusap ni client and us as a contractor.

Engineer Clark 44:51:

Right, I think that's it. Thank you, engineer. Thank you very good answer. All right.

END