Is a force majeure event a ground for not strictly enforcing a provision of the agreement?

Nation building via learning and being the best in business

State of Calamity nationwide, 9. 1 million Filipinos affected, 178 areas affected

A business protege is encountering a difficulty.  He had a  huge amortization in the agreement due end of July.   However, the initial agreement was  delayed by 3 mos because the father for no apparent reason  said there was not spa signed.  It took 3 mos before he was placated and had conformity to the original agreement.  

Now there is a flood due 3 weeks of incessant rain, and the place of the proejct is unreachable because of the flooding at the expressway on  the way to the project site.  The province is also placed on state of emergency.   

Way back in 1986, I encountered similar problem due to EDSA reb The land owner understood the situation and gave me extension.

Lady businesswoman, a Rotarian said she is starting to put businesses just like ours in her home province, looked upon me as a model

Nation building via learning and being the best in business

This post got over the weekend how do you do and our business.  She is a fmer Rotarian and brought us some deals back at her home province.   I said fine.  Hows our business.  Fine.  She said she is starting to make one beside the property she brought to us several years back.    1 hectare (but maybe she will not make money on that) Then she will go a next town where she has 3 hectare

But a 1 hectare project does not make money.  I can suggest recommend ways to make her project profitable

She said I am her idol.  Am wondering why???!

I told her she can contact me and meet how we can further help her in business. I have helped another lady, also a Rotarian put up 2 memorial parks in her island province.  Now we are on our way to 3...

The floods, the force majeure made a lot of things more challenging for many entrepreneurs/businessmen

Nation building via learning and being the best in business

                                                             NLEX impassable

                                                        Flooding at Calasiao

This post hates alibis and excuses but really the incessant rain.  One of the businesses being aided complained that many of the things he was to do were not done:

     1.  The expressway, and the province he was operating was flooded;

     2.  Things were not moving:   his bank loan transactions, other agreements, payment of his receivables

          were not moving because people were making excuses too because of the rain;

Buyers, prospects, investors do not come your way because of the bad weather....

The other parties are angry but thats it;   there are acts of God, and you just have to wait it out for the sunny day to come.   On Feb 26, 1986, I went to the land owner of the land we bought on installment which we are developing into a subdivsion, saying we cant pay on the date because of the difficulties at EDSA,  The Chinese land owner embraced me, and thanked me for my honesty and courage, and said they too in the car industry,  laid eggs.   And said things will be all right...

Defects in real estate properties deals: material defects that are repairable and those that are unrepairable

Nation building via learning and being the best in business

This post learned from a book by George Bockl on community based real estate business that there are 1 defects to watch out for:

     1.  The repairable ( material) defects  

     2.  The non repairable

Because of these, our filters for new projects only turned up very few projects.  We do not take projects where the water supply is doubtful, or those that are clearly flood prone or those that are near factories and pollution.    Anyway we do not have projects like we see now.   This post saw a subdivision project of a premium developer submerged in flood waters in Pampanga

The material defects are those that are part of the construction:  foundation walls, beams, columns, ceiling, roofing HVAC water sewage STP.   The non repairable are those that are inherent mostly in the land and location:   bad feng shui being located near a cemetery, near a river bank or beach property (can be eroded or destroyed by storm surge) near a volcano, sits neear a fault (like San Andreas)

So the buyers now would be wary because of the floodings.  What would result from these floods is that buyers would migrate to less flood  prone in the hills (but not in steep ravine that could erode)  The houses in Pampanga had sound construction but maybe they did not know about the elevation of the flood (it is easy now to check via google earth) or situated in flood plain. 

The towns involved in flooding in Pampanga  Bulacan and Tarlac may see sudden decline in values of real property (the zonal valuation would have to be revised -  ZV keeps going up up for the govt coffers)

Let us see also better compliance with no build zones, issuance of ECC and the like which every developer has to go through (except the companies owned by some officials that are exempt from inspection?)

Putting people first, or putting good system first

Nation building via learning and being the best in business

It is the mission of the compnay to provide jobs and employment (it is embodied in vision mission and beliefs and principle statement. )  However as of late, maintaining this priority is under extreme scrutiny as we encounter a generation of workers who abhor responsibility, hard work, vs the old school system, and sometimes brute insubordination.  We encounter plenty of unauthorized discounts, allowing a service to proceedd without payment.  This happens  despite constant training guidance and reminders.

Survival of the business and good health of business owners take precedence.   Especially if the labor environment is left leaning

Labor disputes are prevalent and sometimes the litigation involves negligence of the employee who failed to file the proper reports to the govt agency.  These things sap the energy to manage and run the business and prepare this for the future

In many companies, the idea is lean and mean, having outsourcing and offshoring to lessen cost of labor and administrative task of managing the labor

This post would rather than now have a system that can not be over ridden (a computer program) that an employee must simply follow otherwise the whole transaction will not proceed, lessening errors in human judgement.  This should have been before..  But it is a thing we must do now.  Beginning 2027...

The system that is firm and consistent overrides the emotional state of people and their motivation which could be variable.   System makes the business operaton consistent

This was supposed to be happening in car registration and NBI clearance.  The govt paid the Quiambao firm to authomate many govt processes.  I wonder if this is being implemented.

Essential system a small business needss

When business and govt leaders debase their personal values (character) they also devalue the economy

Nation building via learning and being the best in business

This was expressed in 1990s by one of the popular Fed boss (Greenspan I remember or Volcker?) that when you debase your personal values, the debasement of the economy follows.  He said these when markets fell because some of the top wall street guys were discovered to be sheenigan.  

Just look at Phil economy now.  Low FDI, cheap assets, no one dare to look at them because we have been popularized as the epicenter of corruption, of ghost projects, and endless stream trillions worth of infrastructure anomalies.   Who made them so -  business people in cahoots with politicians.   The vicious cycle of value debasement

Engaging prospective investors horde, or just deal with a representative

Nation building via learning and being the best in business

We prefer to deal with individual representing a clan or a group.   A town hall is ripe for shouting match and misunderstanding.  Better get spa, or board resolution and talk to one guy.  He talks to his group.  

I experienced that one well known realtor, a Pres of a firm selling golf shares in premium golf clubs, searching me out and asking me to do the whole works of putting up a subdivsion:   financial, sdp, operations, construction.  He had the cad free with several revisions  

The land was owned by 4 sibilngs now all dead (subject to EJS)  being new I proceeded without an engagement contract or a fee and or authorization from family members.  I depended on his word that he could handle his cousins.  ....could handle his cousins.

We spent hundred of hours poring through plans my staff prepared pro bono.  Being green and being from same school (whom I thought to be honorable and gentlemen we proceeded)   We happened to meet a certain GE, a cousin daw,  who for a fee:  would handle the EJS and prepare the subdivision plan, take care of BL and DHSUD for a fee (which was cheap then)  So I drafted a MoU for them and told them my role is done (di pa maliwanag ang fee for consultation and packaging)    Months passed.   Thereafter, the GE texted me because his cousin is nowhere to be found.    And so I followed up.  He didnt answer the phone    And all I got was a text:  his brod did not agree .. Maski kapatid niya hindi niya hawak, wala siyang authority.    He wasted my time and that of the GE..... Part of my tuition

Should profit arrangement be limited to existing proposed agreement or should it go into future product or new venture under the wings of original company

Nation building via learning and being the best in business

This was asked in a recent business meeting.  If we expand into other business should we retain the same sharing arrangement

I said we should limit this to the original purpose.  If this is a land deal, it is going to be just the land deal sales.  For services, it could mean a new corporation and new equity.  It could mean also a change in composition of investors.  Those in the land deal may opt out or not interested in new deals.

Better stick to the articles its intended purposes...

What if the other party, the joint project prospect says "no deal because you seem to be cooking us with our lard (ginigisa sa sariling mantika

Nation building via learning and being the best in business

We often encounter this in many deals.  Distrust of the other party and the thought that one is putting one over the other.   If they  were good enough, they would have done the project themselves.  They would know how to produce the money.   But the thing is they dont, that is why they are seeking and talking to a developer (because they know how to do the deal)

In a failed deal before which we tried to revive before.  we met yesterday with the business developer marketing, operations financial  and  construction team.  We proposed a hybrid deal:    joint project and sale for the 3 parcels.  Simultaneous.  However the other senior team at the other side said the other party may not agree (in which case the deal will be off)

The deal that fell through involved a cts that involved forfeiture which this post objected to being a financial suicide.  They brought it to other property developers and they did not have deal...  They were

not interested and the price was too high....

Now the negotiator was able to bring down the price by roughly  30 6 digits.  Thats great negotiation (because there were no takers.  )

We have to establish with certainity and confidence that really we CREATE THE WEALTH and they will get their desired PHP.   We have the intellectual property and expertise (and part cash) to make things happen.     (Tinanggihan na nga ng malalaking developer. )

Is making profits on deals that involve paper trading a good business; or must you involve in yourself that creates something for the world?

Nation building via learning and being the best in business

There are many people who make huge business on "patong" on margins toll over a transaction like stock trading, hedge funds,  crypto trading.   Are they the right businesses or good businesses.  For most people, just making money  on a deal is a business.   

Asking for toll:   interest,  service fee, packaging fee hedge fund management fee is enough business. One of the richest men on the planet made money by stock picking.  Well he invested his money on the company that really produced goods:    Apple, Coke, Gilette 

And that makes the whole business desireable as something advancing society and humanity.

Before I worked in a bank.  One of the colleagues happened to be the son of the Chairman.  Later on as part of the group he was sent to head a cement plant.  

Thereafter some years later we met again and said that being a banker was not really a godd job or business.  You are simply a commissioner on the money lent, you are not really creating something for the world.  You are a toll collector.  (But would anything be built, without funder or financier) without somebody pooling the money for your enterprise.   

Since you are simply a toll collector, that source of income could be volatile and not steady.  It could be affected by rumors, politics, weather.     Unlike if you create something for the needs of the populace.  

What do you think?  Are paper shufflers really businessmen?  

Participated in a deal negotiation with a foreigner on a long term lease yesterday

Nation building via learning and being the best in business

A cousin requested my presence in an event where:    1.   They will inaugurate a sculpture on top of a building as an attraction   2  where the proponent of a long term lease agreement will come to examine a draft lease contract and where the owners will appraise the proponent of character

This post examined and analyzed the draft:

1.  The property is intestate for probably 30 years or more.    

2.  The surviving heirs want to incorporate;  that can happen only if the EJS has been done

3.  The lease looked low but  the proponent will build the building and may probably increase the market

     value by 100%

4.  The sore point were:   EJS expenses, and the RPT

The negotiator arrived an hour late and learned he was in his 50s and lived for over 50 years in the PHL.  He thought a lot of opportunities in the PHL.  He says he is motivated by the thought he could make things better   He admits Koreans worked hard and are deeply influenced by military training that we should obey and be disciplined.  

After some discussion the unsettled items were:

1.  The amount of rent

2.   The need for EJS prior to the lease signing;   it could be two docs:   1.   a mou   2.   a conditional lease agreement;   Robie promised he can give advance to process the EJS.  We can wait for passage of law to reprieve penalties and interest on the delayed payment of estate taxes

3.  The property tax:  whether they will just pay for the building, or also the land... (The practice is for the commercial and industrial lease, the lessor pays the taxes...    The proponet says they pay for the building permit, mayors permit

This post noticed that for the representative of the owner, the attention was directed towards the small items that are straw traps for the negotiator and not on the substantial ones that affect the PHP of the deal.    and the things that matter  Or even the bait and non negotiable for the other party.    (Thats the advantage of experience

The negotiator says he will send draft of the (their own version) lease for the gaps in the current lease agreement draft we examined;

As for the business they are into retail business with 8 branches (franchisee) And the concept is so good that some big stores make about a million a month (This answers my concern for stability) And they have gone to this place for market studies.   They would go for 24 hours service because they see the young people being awake in the wee hours of the morning .  Will depend mostly on foot traffic

They plan to put up 3 buildings with total area of  1,000 sm, and will determine in 3 years if they will put up all of these..

Being consulted for a 25 year lease for as downtown 800sm commercial property

Nation building via learning and being the best in business

A cousin, daughter of favorite uncle who is into food production business, recently consulted me via text.  Because she is a relative, I gave my opinion via text.  Its a 800 sm property near the Municipal Hall, and the 3rd generation would make the decision respond to the deal proposal by a Korean corp:   5 years lease totalling P57,000,000.   or 170.00 /sm per month;   that translates to about P2.28m/year or P190,000.00 /month.  

 Will they make money on the deal?   Is this the best deal for the family?

The big deterrent on the deal is the fact that the property is intestate and the estate tax which include the compromise, interest and the estate tax itself is huge..The zonal valuation is higher now .(Better wait for the new law extending amnesty be passed)

Am awaiting an appointment as biz consultant by the heirs.    To clarify obligations and make a substantive comment guidance on the deal

Evaluating a deal - how much to sell a property

Nation building via learning and being the best in business

In the 1980s, I did a project  - 8 hectare prime property development which we bought from the famous Iloilo family now divesting of their holdings due to family intramurals.  I did not ask for salary or other compensation.    But asked instead for lots as compensation 3 lots -  2 x 400 sm, and one 300+   I could have asked for PHP.  But asked for lots instead to conserve the company cash flow.

The lot then was valued at P300.00 sm...  Now some lots were bought by Jollibee allegedly for P60K for sm...

Now some people are courting the 800 sm property, 3rd lot from the highway lot.   The asking before by the fam was P15,000.  Some are indicating that they would buy at P20,000.   However the lots near the lakefront is at P30,000/sm.  

The price should be near the P30,000 shouldnt it be?     Not P15,000?!!!

Tackling traffic, customs processing as key to improving competitiveness in export import trade

Nation building via learning and being the best in business

I was invited to join a gc of young entrepreneurs.  Its admin is top banker in the PHL who graduated ME from a top university in the PHL.

The main topic in the GC was the import export trade especially at ASEAN.   This is a top emerging opportunity.  China continues to be the source of cheap goods (I was told by a bikemate that he earns 100% on 2 to 3 months in one deal)  Why reinvent the wheel, when everything can be made in China, even custom design!!

However the hindrance (obstacles still despite having efficient logistics system) are:     difficult customs procedure, uncertain traffic rates (mostly under the table) and traffic and tongpats at street corners by TE and policemen.

The other topics were automotive industry -  the emergence of EV.  The structural weakness in the supply chain are the weakness:   repairs, servicing, charging stations financing... And the real estate.  It can only be alive near the industrial estates, processing zones where the workers aggregate.    Not anymore in my opinion as in MM, where real estate is overpriced, overbuilt

How when can we remove this difficulties in doing business (this laws are clawless?)

Ease of Doing Business Act (Anti Red tape law)

Is Pax Silica bad for the Philippines?

Nation building via learning and being the best in business  

Everybody is agog over the Pax Silica project 1,600 hectares in Tarlac City for tech hub presumably for data center locators.   Oppositors  have two issues:   that the data center will need too much water for cooling and it will further disrupt the power situation in Luzon grid, the supply situation all ready thin.

It is to be noted that the players in the AI supply system are numerous:

1.  Power gen -  turbines, cables, transmission tower, gen set, nuclear power, switch gears, nuclear power, bus...

2.  Cooling system -  aircon, water cooling for the chips

The business outside of high tech could be much much bigger than data center itself.    Data center should be better be located at the bottom of lakes or oceans which we have plenty.

Really, we could be missing out in case we just go along with the bandwagon thinking that Data center per se is bad    There are cooling system that are not dependent on fresh water  (How about salt water, the processors do not drink water -  its only for cooling, and there are various ways to cool the computers.   Power gens can be provided by their own locators)

  

By  Leo Cui

Shifting from labor intensive operations to mechanization

Nation building via learning and being the best in business

We have long fostered giving jobs and livelihood to workers as one of the missions of the company.  However, wages have been increased and wages of a worker amounts to 1/4 of a million.   It is going to be a burden soon.

However beginning 2025 we have bought two excavators to mechanize the digging operations    Costs shrink from P2,500 to only P500 if we are mechanized.

We will attempt to mechanize the:    grass cutting opetratins and the soil dumping.    We can buy from Chi na or /Lubao Pampanga

Shift to QR code from UPC Bar Code after 50 years

Nation building via learning and being the best in business

UPC bar codes made supermarket check out and inventory efficient:   faster and cheaper.   However there are news that the barcodes will be discarded in favor of the better tech:   the QR...

If you have a machine that can turn P20.00 into P100, or sell you milions what will you do to have it, develop it and have one of your own?

       

  SUBJECT  f you have a machine that can turn P20.00 into P100, or sell you milions what will you do to have it, develop it and have one of your own?

  Date:   July 26, 2026

We discussed this yesterday  to upgrade the marketing plans and resubmit the same in the new format, incorporating the new promos discussed.   This post further discussed

various tactics and tools to advance the efficiency and effectiveness of such machine

Objectives        1.  To further advance self improvement

                         2   To help SBUs reach sales targets

                         3.  To help develop skills and determine tools that will make sellers more effective

Background:    1.  Only people sell, AI cant

                        2.  We have to develop one system that sells, and here is one I see that can be effective and efficient

                        3.   Sellers create wealth that pays expenses and salaries. 

                        4.  Sellers make the world go round and advance move forward

                        5.  We have seen resistance of subordinates who do not like to see their work that does not work questioned or ordered revised

Gleaned from  YT:   How to sell so good that saying No looks stupid

From :    A LITTLE BIT BETTER  by Alex Horowiz

There are just four ways/methods

        1.  Attraction

        2.  Upselling

        3.  Downselling

        4.  Continuity 

        to address various situations and customer behavior

     SOME EXPLANATIONS

     A.  ATTRACTIONS

    1.  Attraction are offers that attract prospects as in AIDA, no offers, the ad readers will continue to scroll, no asttractivve offers, no hooks, no offers.

        Not a discount -  discount removes values,  FREE OR ADD ONs freebies add value

       1.  Grand price offers that is really valuable

            1.  Win millions, a car, by getting an offer

            2.  Win a plot FREE if you buy now;   or reserve now.

            3.  Free offer is better than a discount

                1.   Buy one take one instead of 50% discount

                2.   $30.00 for one set is bettone free  than $10.00 each

               3.   After you increased the price and there is resistance.     P1,700,000 for a GE, 12th lot is free (that is less 8%)

      2. Decoy offer:   offer a low ticket offer, and then upsell the prospect for something bigger.  Get his feet at the door

           e.g   offer a cheap lawn and when you sense he/she can buy GE offer him  one.  

     3.  Performance based free;   (Mostly gymn related)   "If you reach your weight reduction goal, we return to your $__enrollment fee

         We guarantee you (no one dies in your family in the next 90 days)  if you do we will give you an __discount;

    4. Pay less if you buy now  (referring to our at NEED VS pre need price)

Secrets of winning in business (from a millionaire)

Nation building via learning and being the best in business

The guyis the leader in FI racing ticketting.   His secrets:

1.  The hardest worker mindset is passe  Results, matter. 

2  If you are not winning, you are sticking to the rules

3.  Let the competitors underestimate you

4.  Winners repeat, (they become complacent)  losers improve reset.

5.  Be the best in the category....

Entering into a different sub branch of the industry? Dont we need focus? Doesnt it weaken the main business

Nation building via learning and being the best in business

Earlier, I had a the idea of letting a thousand flowers bloom, the  model being that of a keiretsu (or indu strial group) which happens in an industrial group.  If you are in an industry, you gather all your resources that are relevant:  suppliers, housing for employees, restaurants, malls, hospitals other materials   Thus an industrial estate matters.    You place all these in one location.  That is why an industrial estate does not work here in the absence of such model

Recently I learned that the family bought a commercial property near SM.  for good 8 numbers.  Said it wa xxx square meters.   Found out it was just yyy square meters and for which they paid for double.

Now this is the problem:

1.  The funds needed to expand tthe main business is frozen.   They said it was for flipping.  But the supposed buyers is not there.

2.  The seller is a sob although a religious person

3.  Colleciton is difficult

4.  The rent gives a slightly better than bank deposits...

Before when I was not married we had rental properties which we abandoned because of losses from:

 1.  unpaid utilities by the renters,   2.   renters damaging the property.   WE solved the problem by disposing off the rental properties

It is better to focus.  By focussing many opportunities reveal themselves.  The conglomerates have found it the hard way that they cant manage conglomorates welll (SMC will find out when it branched into infrastructures copying the MPTC group) ...  So some focus on the cash flow:   all cash flow in industries that people use everyday:   telephone, water, express way...    or condo  (however the downside is that if the industry is down, the whole ship goes down)     Or energy....