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05/07/2026

COLLECTIVE LEADERSHIP: THE SECRET BEHIND HIGH-PERFORMANCE CONSTRUCTION TEAMS
When I first began training unskilled workers, my objective was simple—to develop the skilled craftsmen that were becoming increasingly difficult to find.
As the program evolved, I introduce something even more valuable.
By encouraging workers to learn a second and even a third trade, I was not just producing better carpenters, masons, steelmen, or finishers. I was creating multi-skilled workers who understood the construction process beyond their own specialization.
This allowed me to organize them into highly flexible, self-sufficient work teams.
Each team consisted of about eight to twelve multi-skilled workers. Depending on the size of the project, I could simply add temporary laborers to support them whenever additional manpower was needed. Because the core members understood several trades, they could easily adjust assignments, help one another, and keep the work moving without constant supervision.
The key, however, was not only technical training.
Earlier, I had established a promotion ladder that rewarded workers based on competence, attitude, reliability, and leadership potential—not merely on years of service. Along with every promotion came greater responsibility.
Senior workers were expected to guide new workers, monitor workmanship, prevent material wastage, maintain quality standards, and solve problems before they became serious. Leadership was not viewed as a privilege but as a responsibility.
Over time, the senior members of each team did not simply become individual leaders. Together, they became the collective leader of the team.
Collectively, they assumed responsibility for different aspects of the work. They pay closer attention to quality and watched productivity. They constantly reminded one another of company standards and worked together to solve problems in the field.
Instead of depending on a single foreman, leadership was shared among the experienced members of the team. The team became self-managing because responsibility had become part of its culture.
This system gave our company a tremendous advantage.
By the early 1980s, I was able to undertake simultaneous construction projects for four major manufacturing companies in Marikina. Each company was assigned its own dedicated multi-skilled teams capable of operating with minimal supervision.
Supporting these project teams were a senior Architect and two young engineers whom I had personally recruited immediately after they graduated from college. I trained them not only in engineering and construction methods but also in leadership, planning, quality control, and the management systems we had developed over the years.
With competent engineers overseeing the projects and self-managing teams handling day-to-day operations, I no longer had to be present every hour of every day on every site. I could devote more time to acquiring new projects, improving company systems, and developing even more people.
Looking back, I realized that our greatest asset was never our equipment or our working capital.
It was the people we developed.
Anyone can hire skilled workers.
A better contractor develops skilled workers.
But the best contractors develop leaders who, together, build teams capable of leading themselves.
That was the system that enabled our young construction company to grow and successfully serve several major clients at the same time.
Today, collective leadership is even more relevant than when I first practiced it more than forty years ago.
The construction industry is changing at an unprecedented pace. New materials, new equipment, new technologies, digital tools, and new construction methodologies continue to emerge. No single project manager, engineer, or foreman can possibly master everything.
That is why leadership can no longer reside in one person alone. It must be shared by a team of competent, responsible people who continuously learn from one another and contribute their own knowledge and experience.
NEVER UNDERESTIMATE CONSTRUCTION WORKERS. GIVEN THE OPPORTUNITY, PROPER TRAINING, AND REAL RESPONSIBILITY, MANY WILL SURPRISE YOU. THEY DO NOT SIMPLY BECOME BETTER WORKERS—THEY BECOME PROBLEM SOLVERS, MENTORS, AND LEADERS.
— Engr. Enrico S. Cruz
Founder, URBAN Institute of Real Estate
[email protected]
Author started as a construction laborer in May 16, 1966 at 19 years old. Construction contractor and engineering professor in 1974. Still sharing practical lessons from more than five decades of experience in construction and real estate.

03/07/2026

TEACHING IN THE BARRACKS: DEVELOPING A MOTIVATED WORKFORCE
In the late 1970s, my construction business was growing steadily. As we were awarded more projects, another challenge was becoming increasingly obvious.
There was a serious shortage of skilled construction workers.
Many of the country's best carpenters, masons, steelmen, and foremen had already left for higher-paying jobs in the Middle East. Contractors throughout the Philippines were competing for the same shrinking pool of skilled workers.
Offering higher wages was only a partial solution.
Today you hire a skilled worker by paying a little more. Tomorrow another contractor offers him a higher wage. Next month he leaves for the Middle East.
The problem never really disappeared.
I realized that if I continued depending solely on the labor market, I would always be chasing skilled workers.
As soon as I understood the situation, I already had an idea for a more permanent solution. Instead of competing with other contractors for the limited supply of skilled workers, we would develop our own. Rather than hiring skilled craftsmen from outside, we would train our own unskilled workers and help them become skilled masons, carpenters, steelmen, and even foremen.
Fortunately, I was already an engineering professor at that time, so teaching came naturally to me. That experience gave me the confidence to organize a simple in-barracks training program for our workers.
Most of our workers stayed in company barracks after working hours. Instead of interrupting construction during the day, we conducted the training in the evenings.
Classes were held from 5:30 PM to 6:30 PM, followed by a free dinner provided by the company. After a thirty-minute dinner break, classes resumed from 7:00 PM to 8:00 PM.
The free dinner was not payment for attending the training. It was simply our way of encouraging participation and showing appreciation for workers who were willing to invest their personal time in improving themselves.
The program was conducted only when needed, depending on the company's manpower requirements. If we needed more masons, we trained future masons. If we needed more carpenters or steelmen, we organized training for those trades.
Our objective was never simply to teach workers how to perform a task.
We wanted them to understand why things had to be done correctly.
Basic construction quality became an important part of every training session.
Workers learned why adding too much water to concrete makes it easier to place but reduces its strength. They learned why proper curing is essential for concrete to achieve its designed strength and why neglecting curing often leads to weaker concrete and surface cracking.
We explained why proper surface preparation is important before plastering, why correct mortar proportions matter, why measurements should always be checked before cutting reinforcing bars, lumber, pipes, or other materials, and why unnecessary material wastage increases project cost and indirectly affects them.
Safety, housekeeping, use of electric tools, and respect for company property were also emphasized.
We wanted every worker to understand that quality was not the responsibility of the foreman or the inspector alone. QUALITY WAS EVERYONE'S RESPONSIBILITY.
After every classroom sessions, the real learning began..
Workers were assigned to actual projects where they practiced under the supervision of experienced craftsmen. A mason trainee worked as a mason's helper. A carpenter trainee assisted experienced carpenters. Learning continued every day on the construction site.
There were no written examinations. The construction site became the examination room. Workers progressed according to their actual performance.
Those who demonstrated competence, discipline, and good workmanship earned promotions to higher positions together with corresponding increases in salary.
Promotion was based on ability—not simply on length of service.
As the program matured, we expanded its objectives.
Instead of training workers only in their own trades, we encouraged them to acquire second and even third skills.
A mason learned basic reinforcing steel work. A carpenter learned masonry. A steelman learned formwork and carpentry.
The objective was not to make everyone an expert in every trade.
The objective was to create a more flexible workforce.
This proved to be one of the greatest benefits of the program.
When work in one trade temporarily slowed down, workers could assist another crew instead of remaining idle or being laid off. Many workers remained employed continuously from the beginning of a project until its completion.
The company benefited from greater productivity, improved coordination, and lower recruitment costs.
The workers benefited from longer and more stable employment, higher income, and greater opportunities for promotion.
Looking back today, I realize that our evening training program accomplished far more than solving a shortage of skilled workers.
It improved construction quality. It reduced material wastage. It increased productivity.
It developed multi-skilled workers. It created opportunities for promotion.
Most importantly, it gave many workers the opportunity to build better careers and better lives.
After more than fifty years in construction, I remain convinced that one of the best investments any contractor can make is not in additional equipment or machinery.
It is in the development of people.
The knowledge and skills we help people acquire remain with them for the rest of their lives.
MY LESSON
When skilled workers become scarce, many contractors respond by offering higher wages.
That may solve today's problem—but not tomorrow's.
A more sustainable solution is to develop your own skilled workforce.
When you invest in people, you are doing far more than filling vacant positions.
You are improving quality, reducing waste, increasing productivity, creating future leaders, and building a company that competitors will find difficult to imitate.
IN THE END, THE STRONGEST COMPETITIVE ADVANTAGE OF A CONSTRUCTION COMPANY IS THE QUALITY OF THE PEOPLE IT DEVELOPS.
— Engr. Enrico S. Cruz
Founder, URBAN Institute of Real Estate
[email protected]
Author started as a construction laborer in May 16, 1966 at 19 years old. Construction contractor and engineering professor in 1974. Still sharing practical lessons from more than five decades of experience in construction and real estate.

02/07/2026

POPULATION GROWTH IS SLOWING: WHAT IT MEANS FOR THE FUTURE OF REAL ESTATE DEVELOPMENT
For decades, one of the strongest drivers of real estate growth has been population increase. As the number of people grows, the demand for housing, commercial space, schools, hospitals, and supporting infrastructure naturally increases. This has provided developers and builders with a steady stream of opportunities and has supported the long-term appreciation of real estate values.
However, a major demographic shift is now taking place in many countries, including the Philippines. While the population continues to grow, the rate of growth is slowing down. Families are having fewer children, urban lifestyles are changing, and economic pressures are influencing household decisions. As a result, future population increases are expected to be lower than those experienced in previous decades.
This trend has significant implications for the real estate industry.
SLOWER POPULATION GROWTH MEANS SLOWER DEMAND GROWTH
It is important to understand that a slowing population growth rate does not necessarily mean that housing demand will immediately decline. Rather, it means that the rate at which new demand is created will gradually slow down.
For example, if a city previously added 100,000 new residents every year but now adds only 50,000, housing demand may still be growing, but at only half the previous pace. Developers who continue building based on old assumptions may eventually find themselves competing for a smaller pool of buyers.
In markets where supply continues to increase aggressively while demand growth slows, oversupply becomes a real risk. Excess inventory can lead to longer selling periods, lower profit margins, increased marketing costs, and downward pressure on PRICES.
COMPETITION WILL BECOME MORE INTENSE
During periods of strong population growth, many developers can succeed simply because demand is abundant. Even average projects may find buyers because there are enough people entering the market.
As demand growth slows, the situation changes. Buyers become more selective. They have more choices and more bargaining power. Developers must compete not only on price but also on quality, reputation, location, design, amenities, and after-sales service.
In such an environment, weaker developers may struggle to survive. Projects that are poorly planned, poorly built, overpriced, or inadequately managed may experience slow sales or financial distress.
The industry may eventually see consolidation, with stronger and more reputable developers gaining larger market shares while weaker players exit the market.
QUALITY WILL BECOME THE KEY COMPETITIVE ADVANTAGE
In a highly competitive market, quality becomes more important than ever.
Quality is not limited to attractive finishes or expensive amenities. It includes:
• Sound planning and market research.
• Proper site selection.
• Functional and efficient design.
• Durable construction.
• Reliable project management.
• Timely project completion.
• Honest marketing.
• Strong customer service.
• Effective property management after turnover.
Developers who consistently deliver quality projects build trust. Buyers, investors, and lenders are more likely to support companies with a proven track record. In a market where customers have many alternatives, trust becomes one of the most valuable assets.
BUILDERS MUST ALSO ADAPT
The challenge is not limited to developers. Contractors and builders must also adjust to the changing environment.
Owners and developers will increasingly favor contractors who can:
• Deliver projects on time.
• Maintain high construction quality.
• Control costs efficiently.
• Minimize defects and rework.
• Adopt modern construction technologies.
• Demonstrate professionalism and transparency.
The era when contractors could rely solely on low prices to win projects may gradually diminish. Owners are becoming more aware that poor quality often results in higher long-term costs through repairs, delays, disputes, and loss of reputation.
NEW OPPORTUNITIES WILL EMERGE
While slowing population growth presents challenges, it also creates new opportunities.
As markets mature, demand may shift from quantity to quality. Opportunities may arise in:
• Redevelopment of older communities.
• Senior housing and retirement facilities.
• Rental housing.
• Mixed-use developments.
• Sustainable and green buildings.
• Specialized residential products.
• Property rehabilitation and upgrading.
Developers who understand changing demographics and evolving consumer preferences will continue to find profitable opportunities.
CONCLUSION
Population growth has long been a powerful engine of real estate demand. As population growth rates decline, the industry must recognize that future demand growth may not be as strong as it was in previous decades.
The coming years are likely to bring more competition, greater market selectivity, and increased pressure on developers and builders to perform at higher standards.
In this environment, survival and success will depend less on the ability to build more projects and more on the ability to build better projects.
The future belongs to developers and builders who consistently deliver quality, create value for their customers, manage risks effectively, and adapt to changing demographic realities. As demand growth slows, quality will no longer be merely a competitive advantage—it will become a necessity for survival.
DEVELOPERS WILL NEED BETTER PROJECT MANAGEMENT, QUALITY AND COST CONTROL AND RISK MANAGEMENT.
— Engr. Enrico S. Cruz
Founder, URBAN Institute of Real Estate
[email protected]

30/06/2026

Cost Strategies During Rising Construction Prices and High Borrowing Interest Rates
Many owners believe that the best way to reduce construction cost is to negotiate a lower contract price.
That approach has its limits.
When construction material prices are rising and borrowing interest rates are high, every contractor must include in the bid the cost of financing, price escalation risk, supplier credit, and interest on borrowed working capital.
Ultimately, the owner pays for these costs.
A wiser approach is to ask a different question:
"HOW CAN THE OWNER AND CONTRACTOR WORK TOGETHER TO REDUCE THE TOTAL COST OF THE PROJECT?"
More than forty-five years ago, I experienced this firsthand.
In 1981, I submitted a bid for a ₱5.0 million construction project for a manufacturing company in Marikina.
At that time, with seven years of experience as a building contractor, I already had the engineering knowledge, practical experience, and a team of young engineers and project supervisors whom I had personally trained. I was confident that we could deliver an excellent project.
What I lacked was the working capital needed to comfortably finance a project of that size.
Recognizing that financing costs would eventually be passed on to the owner through the contract price, I proposed a financial arrangement as part of my bid.
I offered to reduce my bid if the company would assist in financing the procurement of major construction materials.
After evaluating my technical capability, organization, integrity, track record, and past performance, the company's management accepted my proposal.
They issued letters of guarantee to my approved suppliers, committing to pay them within seven days after delivery. Every payment was treated as a recoverable advance to the contractor and was deducted on a pro rata basis from future progress billings.
The results were remarkable.
• I significantly reduced my financing costs and was able to submit a lower bid.
• Major materials were purchased before further price increases.
• Construction proceeded without interruption.
• The company paid less than it would have if financing costs had been embedded in the contract price.
Both of us benefited.
That single project proved to me that intelligent financial structuring can reduce project cost more effectively than simply negotiating a lower contract price.
That experience taught me a lesson which remains just as relevant today:
THE OWNER'S ROLE IS NOT ONLY TO FINANCE THE PROJECT. IT IS ALSO TO DESIGN THE FINANCIAL STRUCTURE OF THE PROJECT.
An owner with sound construction project management can reduce costs through strategies such as:
• Assisting in financing major materials.
• Paying approved suppliers directly, with proper accounting.
• Issuing letters of guarantee to qualified suppliers.
• Encouraging early procurement of price-sensitive materials.
• Accelerating progress payments to reduce financing costs.
• Working with capable contractors whose only limitation is capital—not competence.
The objective is not to subsidize the contractor.
The objective is to eliminate unnecessary financing and related costs that contractors inevitably incur and ultimately pass on to the owner through the contract price.
Many talented young contractors never get the opportunity to build larger projects because owners judge them primarily by the size of their bank accounts.
Perhaps we should judge them by something far more important:
• Their competence.
• Their integrity.
• Their management capability.
• Their ability to deliver quality projects.
If those qualities are present, financing can often be structured. Competence cannot.
OWNERS AND DEVELOPERS SHOULD NOT SIMPLY SELECT CONTRACTORS. THEY SHOULD HELP DEVELOP CAPABLE CONTRACTORS BY CREATING FINANCIAL ARRANGEMENTS WHERE BOTH PARTIES BENEFIT IN THE LONG TERM.
That is not charity.
That is intelligent Construction Project Management.
— Engr. Enrico S. Cruz
Founder, URBAN Institute of Real Estate
[email protected]