P8B FOR GARDIOLAS
Even more surprising, though, is that a single clan — the Gardiolas of Mataas na Kahoy in Batangas — own and control two companies in the DPWH's list of top 10 contractors: JSG Construction Company Inc, which is ranked No. 1, and E. Gardiola Construction, which is ranked No. 7. (see table)

Top 10 Companies by Total Value of Contracts (2000-2008) Source: DPWH
NAME OF COMPANY	DPWH CONTRACTS (in billion pesos)
JSG Construction Co., Inc.	5.7
Meditechtrade and Development	4.6
Hi-Tone Construction and Development Corp.	3.9
G.C.I. Construction	3.5
Sunwest Construction and Development Corp.	3.0
L.R. Tiqui Builders, Inc.	2.3
E. Gardiola Construction	2.3
Northern Builders, Inc.	2.1
Ulticon Builders	2.0
Grace Construction Corp.	1.7

JSG Construction has so far obtained a total of P5.7 billion in public-works contracts, while E. Gardiola Construction has won contracts worth a total of P2.3 billion. Together, the Gardiola companies have secured contracts from DPWH worth P8 billion.

	AN E. Gardiola project: Improvement/rehabilitation of Bayorbor-Nangakaan Road in Mataas na Kahoy, Batangas. [photo by Tita Valderama]

JSG Construction is owned by Judy S. Gardiola and her husband, Edwin Gardiola.

Edwin’s brother Elmer and wife Elaine are owners of E. Gardiola Construction. Elmer is also among the incorporators of JSG Construction.

JSG alone has landed 464 projects spread across the Philippines, even as far as Mindanao. E. Gardiola, for its part, bagged 135 projects between 2006 to 2008.

According to the Gardiolas’ spokesperson, Lito Marana, JSG’s owners could neither confirm nor recall the 464 projects it is listed as having undertaken for the DPWH. Those projects, however, represent about four percent of the total value of contracts awarded by the DPWH since 2000. This is way above the average amount of contracts received per contractor (P77.3 million) and the median P13.5 million.

Still, the Gardiolas said in a statement issued through Marana: “We would like to believe that perseverance and hard work has a lot to do with that. We started small but with a big dream, we actively participated in various biddings and fortunately was able to get a lot of winning bids.”

They also said, “We have a proven track record for finishing projects on time and not been involved in any anomalous transactions or engage(d) in ghost projects.”

GAS STATION OFFICE?
How they have managed to do so, however, is unclear. After all, a field visit to JSG's declared office address in Mataas na Kahoy, Batangas, showed that the multi-billion-peso company — at least by DPWH standards — holds office at a gas station that is also owned by Judy and Edwin Gardiola.

	OFFICE of the JSG Construction Co. Inc. in Mataas na Kahoy, Batangas [photo by Tita Valderama]

A similar visit to the company addresses of E. Gardiola listed in the government directory and the DTI database meanwhile yielded curious results. The firm had vacated a condominium office on Panay Avenue, Quezon City over a year ago, according to the building security guard, while no authorized company officials could be reached at another address, a residential unit in Filinvest I in Fairview, Quezon City.

(By coincidence, Filinvest I’s residents include Public Works Secretary Ebdane. Years ago, Ebdane had bought a lot in Filinvest I but it was only recently that the house was constructed, neighbors said.)

E. Gardiola also lists a branch office in Mataas na Kahoy but it could not be located at all in the town. The local residents, asked for directions on the E. Gardiola office, pointed to the residence of Edwin Gardiola instead. A secretary named Lily at the Gardiola residence in Filinvest I also gave Mataas na Kahoy as the company’s office address.

Other top 10 companies whose offices turned out to be in residential areas include Meditechtrade and Development, which has its headquarters in Barangay Maytunas, San Juan, a residential area. Meditechtrade is No. 2 in the DPWH list and has won contracts with a total value of P4.7 billion.

L.R. Tiqui Builders, which ranks sixth and won bids on projects worth a total of P2.3 billion, operates out of a modest three-story building located inside a compound in Sta. Maria, Bulacan.

Under the Generic Procurement Manual, administrative overhead cost for the headquarters of contractors is imputed in contracts. This amounts to eight to 15 percent of the total value of the contracts.

CONFUSING PCAB DATA
Data from the Philippine Contractors Accreditation Board (PCAB) show that of the top 10 contractors in the DPWH database, companies ranked No. 3 to No. 10 supposedly have a “General Engineering – AAA” license category. This means they have obtained the track record and minimum “1,150 minimum overall credit points” required.

	OFFICES of L.R. Tiqui Builders in Brgy. Bagbaguin, Sta. Maria, Bulacan (above) and Meditechtrade and Development office in Brgy. Maytunas, San Juan (below) [photo by Tita Valderama]

Triple A contractors are qualified to join bids for roads and projects from Medium B to Large B types, or worth from P3 million to P50 million, and from P3 million to any higher amount, respectively.

However, JSG, which is ranked No. 1. and Meditechtrade, ranked No. 2, only have license categories of “B” and “A,” respectively.

For contractors with license category B, the cap on value of contracts is P3 million to P15 million only. License category A companies may bid for projects worth P3 million to P30 million only.

What sticks out as inexplicable in the PCAB data are two entries — the date PCAB issued the top 10 contractors their first license, and how the contractors were classified by type of business.

The PCAB said it gave JSG its first license in 1987, and classified the firm as a “corporation,” even as the company had registered with the SEC only in 1994, and had this registration revoked in 2006.

Sunwest Corporation, ranked No. 5 in the DPWH database, got its first license from PCAB in 1992, and was listed as a “corporation” even as it registered with the SEC only in 1997.

Hi-Tone Construction, ranked No. 3, got its first license from PCAB in 1997, and was classified as a “corporation” although no records could be found in the SEC confirming its existence as such.

In contrast, Meditechtrade, ranked No. 2, and E. Gardiola, ranked No. 7 in the DPWH database, were enrolled as “sole proprietorship” entities by PCAB even as they registered as corporations with the SEC.

DPWH Bureau of Research and Standards Director Antonio Molano Jr. explains that “triple A (AAA) contractor” usually denotes a “large” company. “We should be expecting that it has a proper office with proper staff because contractors are supposed to have ‘sustaining technical employees’ who would do the regular work,” he says.

“I have known contractors in the same category (AAA) but these are large companies with very big offices,” says Molano, mentioning the likes of F.F. Cruz and D.M. Consunji. ”They even have branches.”

Still and all, Molano considers E. Gardiola in “good standing,” considering its PCAB credentials. E. Gardiola also has the other requisite registrations, signing up with the Department of Trade and Industry (DTI) on January 28, 1994, and then with the Securities and Exchange Commission (SEC) on February 21, 2008 as A.E. Gardiola.

Under Republic Act No. 9184 or the government procurement law, registration with SEC is one of the minimum eligibility requirements for contractors participating in a public bidding for a DPWH project. This applies to corporations or companies. Registration with the DTI is required for sole proprietorship.