LEVY V. ESPIRITU President DATEM INC.

If there is one construction company in the country that has built a reputation for quality work, and yet remained low-key, it is DATEM Inc. From a capitalization of R150,000 from five original incorporators, whose initials make up for the corporate name DATEM, the company has ballooned to billions worth of pesos now becoming one of the country’s few AAA leading construction firms in the high-rise construction segment.

DATEM takes its work seriously and is proud of its core value “malasakit” that makes what it is today.

Visionary company president LEVY V. ESPIRITU continues to steer DATEM to the right path. His spirituality has kept the company grounded all these years.

DATEM Inc. was established in 1984 by five engineers whose initials make up the name DATEM. Two of the original incorporators, however, already left the company.

“The name sounds good and it captures the imagination of people,” says Espiritu.

Espiritu, a civil engineer from the University of the Philippines where he was a scholar, is ably supported by two other visionaries DATEM Vice President for Engineering Morris S. Agoncillo, and Vice President for Operations Arnold P. De Asis.

Thegroupfirststartedwiththeconstruction of small houses, but it sets its sights on the bigger things. From the very start, DATEM has envisioned to give its clients total valueengineered service in terms of quality, time and cost. It continually seeks innovative ways to offer to its growing roster of clients.

Innovation is one of DATEM’s core values. It makes innovation where generating new ideas at every level in the organization a top priority.

“We didn’t realize it but in 1996 we had an opportunity to compete with the big boys,” Espiritu recalls. The company entered into a partnership with an Australian firm that specializes in formworks and precast technology and is widely regarded as a constant source of leading-edge design and construction innovation. DATEM adopted this new technology to offer to its clients, who always look for something new and different.

“That was our first big break,” says Espiritu, who employed this technology first with the ABS-CBN Center building. Several other construction firms followed suit.

From then on, DATEM grew slowly. It has evolved into a general construction firm specializing in the development and application of fast and safe design and construction methods, bringing to the country the combination of experience and technology.

Three decades later, the founders are now leading an organization of trailblazers with about 1,000 regular personnel and close to 11,000 skilled workers, laborers and carpenters.

It has evolved to become a diversified construction firm building Mega Manila’s remarkable structures and architectural marvels today.

DATEM has become the trusted partner to the country’s leading real estate developers, changing the nation’s skyline one iconic structure at a time.

Now, DATEM is an AAA category in the high rise construction sector. There are many other AAA contractors but they are into the horizontal construction projects. DATEM is in the high rise vertical where there is only very few only of them in this category.

DATEM has also created two subsidiaries DATEM Homes and DATEM Water.

“We have the ability to anticipate and respond to challenges and opportunities, improve our technology and competitiveness,“says Espiritu.

DATEM is set to debut in the local stock market in November this year with 15 percent of its shareholdings to be shared with individual investors at R14.15 per share. Proceeds will be used to fund its future expansion plans for its construction business, and two subsidiaries — housing and water businesses.

For its construction business, DATEM has more vertical construction projects in the pipeline that may need additional capital infusion as it anticipates additional workload given the country’s booming construction sector.

For DATEM Homes, Espiritu said they would like to participate in the construction of quality but affordable homes. They are looking at building 5-storey walk-up condominiums with a minimum price range of R450,000 to R1.2 million.

“We are targetting the 6 million housing backlog where most of the Filipino workers are in this range,” says Espiritu.

According to Espiritu, the company has the technology to come up with housing component that is very of high quality at very affordable prices.

DATEM is looking at additional residential developments in Angono, Cogeo, Antipolo, east Ortigas and Bulacan where land prices are still reasonable.

“We are looking at several properties in the outskirts and provinces in the Visayas,” he adds. At present, DATEM Homes is present in Davao and is looking at doing an expansion there. It is looking at some developments in Cebu and Iloilo.

For its water subsidiary, Espiritu says they have plans of providing more water services in some towns and provinces. They are looking at expanding its water business in Iloilo and Davao and in Pampanga. At present, it is operating a water project in Kalibo, Aklan providing 10 million liters per day.

DATEM has also partnered with a German firm for its water treatment technology to be able to come up with a sustainable source of water.

As the holding firm primarily engaged in the high rise construction business, DATEM accounts for the bulk of the business but the housing and water subsidiaries also have great growth potential.

Espiritu said that while their businesses are complementary with each other, he also stressed that they would like to stay in a business that provides the basic needs of the Filipinos — shelter and water.

“We’re looking at the basic needs of Filipino people and we constantly look into how we can improve our services to them,” says Espiritu.

That is why after establishing an expertise in the construction of high-rise buildings, DATEM’s natural expansion direction is the housing sector then came the idea of extending its services by providing water into these homes.

“We’ve decided to go into providing water for our homes because the strength of DATEM is innovation and technology development that can help us in growing the business,” says Espiritu.

Water and homes are DATEM’s support businesses to its growing construction business with the use of innovative technologies.

To be able to build quality housing at affordable prices, Espiritu said they have to employ innovative technologies that enable them to complete projects earlier and at highest quality.

“In water, we can service or treat water with the lowest operational expense so our transfer price can be very affordable and this can be done with new technology,” he adds. With new technology, DATEM has been able to finish a project earlier enabling them to save on cost.

“We want to believe that one of our strengths is to tap new technologies and be innovative in our service. Innovative technologies help us build quality works and become more cost efficient,” he adds.

DATEM has no foreign ventures yet but it is registered in Guam. DATEM is also actively exploring opportunities in the ASEAN region.

Espiritu is an active member of the Philippine Constructors Association (PCA) where he was a former president. PCA is also actively involved in the ASEAN Constructors Federation. This has given DATEM more exposure with construction firms from other parts of Asia.

DATEM is now testing the waters in Vietnam and is planning to venture into Cambodia to take advantage of the ASEAN economic integration. Espiritu said the Philippines is well positioned in the region.

ASEAN is in the process of harmonizing the trade skills in the construction industry to allow ASEAN workers to work anywhere in the region.

Espiritu is proud to report that in the harmonization of trade skills, ASEAN is using the Philippine skilled workers as its benchmark.

“Compared with all other ASEAN countries, we have better trade skills meaning we are more productive and more efficient. The productivity rate is measured via the TESDA NC 1, 2 and 3 and we are the benchmark,” says Espiritu proudly.

He said that Filipino skilled workers as the most preferred because they are productive than other ASEAN nationalities.

According to Espiritu, there are specific productivity rates in the construction industry that are measurable. For instance, there is a productivity rate in rebars on how many kilograms per man-hour per kilo.

To Espiritu, the Filipino trade skills in the construction sector can be attributed to Filipinos’ exposure of working all over the world.

“And Filipinos can readily adapt to new technology and our big advantage is the English language,” says Espiritu. Language barrier alone already slows down a process and because Filipinos can understand and speak English the work becomes easier and faster.

Filipino construction firms, however, have not been actively undertaking projects in other countries largely because there is so much work demand in the country.

“The Philippines is now the center of growth in construction in the region and we are one of the leading countries in the region that is experiencing economic boom in construction aside from Indonesia,” he adds noting that construction growth in Vietnam has tapered.

“The performance of the Philippine economy is doing very well so we have our hands full when it comes to construction projects,” he adds.

Espiritu, who comes from a family of engineers, first joined the country’s leading construction firm DMCI which concentrated in building and high rise construction. He started working with the Consunjis in 1979 and stayed with the company for five years.

“Basically, I like vertical construction instead of roads and bridges,” he says.

Espiritu is proud of all the quality highrise buildings they have constructed but there are certain projects that he would like to call landmarks. These include Mind Museum, the two towers of One Rockwell, Arya Residences of Arthaland, Discovery Primea, and the ShanggriLa Towers of the new east wing with 65 stories, among others.

Most of their buildings are green certified meaning they have passed the LEED certification from various groups including the US Green Building Council and other groups including the Philippines’ own green building certifying body. Most of its projects have green building practices for sustainable construction.

One thing DATEM is very proud about is its thoroughness when it comes to safety of its workers. In one project alone, they have attained 25 million man-hours without accident.

“That is in our vision to ensure the safety in the construction place,” says Espiritu, who treats his people like family.

At DATEM, workers can approach him anytime and share their problems and issues. They share their profits, too, with generous bonuses, including performance bonus.

“As a manager I tend to manage by objectives,” says Espiritu.

Even if they have to ensure that they produce quality works, most of its projects are completed ahead of schedule resulting in cost savings for the company.

“The success of DATEM is largely because the company takes their work seriously,” says Espiritu.

DATEM has four core values of integrity, excellence, innovation and “malasakit.”

Espiritu equates integrity with honesty. This could be the reason DATEM has kept its distance from government projects. It is only now that DATEM has started to bid for government projects under the PPP (Public Private Partnership) program.

Excellence stands for its relentless pursuit for continuous improvement in their projects, products, processes and services. Innovation is what has kept the company’s competitive edge as it offers more value to its customers.

“Malasakit” is its unwavering passion in its work and compassion towards peers, colleagues, and the country.

“DATEM’s success is basically because we take into heart our core values,” says Espiritu. But most important is the company’s unparalleled value of “malasakit.”

“Malasakit means compassion for our people and passion for our work. Malasakit has been there from the very start. That value is already ingrained in the hearts of our people and even in choosing the people who will be part of us. We always look at their attribute for passion and compassion,” explains Espiritu, who plays golf twice or thrice weekly,

DATEM has put importance to the value of “malasakit” more than intellectual capacity.

That is why Espiritu would not hesitate to hire an average applicant with “malasakit” than an intelligent one with the wrong attitude.

“I can see it even with our engineers who are mostly graduates from the provinces but have the passion for work,” says the 58-yearold Espiritu, who still goes to the construction site.

DATEM also continues to train people and engineers that even if they transfer to another company they would say they were trained by DATEM, which employs about 400 engineers out of its 1,000 regular workers.

Filipino engineers used to work abroad because of the high pay, but now that the economy has improved the gap in salaries has somehow narrowed down that most engineers prefer to stay here.

The company also sees more CSR programs under DATEM Foundation. At present, it conducts free medical missions for workers and immediate families. The company also extends housing and scholarship programs for the children of workers.

Espiritu believes that the growth of the economy is sustainable and that the construction industry is one of the huge drivers of growth. One of the pillars of the construction industry roadmap is the PPP program of the government.

“Growth is sustainable because of the ASEAN economic integration where the Philippines is a leading player,” says Espiritu believing that the growth is sustainable up to 2020.

He attributed the country’s growth to the principles of good governance of President Aquino. Hopefully, he said, this policy will continue whoever will win in next year’s election.

“Itshouldbebeyondpersonalities.Whoever is on top should have an unquestionable integrity,” says Espiritu.

Espiritu’s engineering skills are evident in his habit of solving puzzles. He started with 1,000-piece puzzle of mostly works of arts and paintings with the Roman Catholic setting like the painting of the Holy Family.

Notably most of his puzzles are religious in nature. Espiritu himself is a devout Catholic, who attended marriage encounter seminars with his wife. The family also holds prayer meetings through the years and his four kids have become part of the youth ministry making them involved with youth camps.

They always go to mass together on Sundays and pray the Holy Rosary together. Espiritu even kept a Holy Water at home and blesses his kids with it before they go out, like going to school.

“Those are traditions that we inculcate in them,” says Espiritu, who underwent a baptism at the River of Jordan and witnessed a miracle happened. He believes his wife was completely cured during a visit to Jerusalem.

“That’s what kept us together as a family, me myself and wife. As part of the Ignatian spirituality, we always go for annual retreat,” says the softspoken engineer.

In times of difficult decisions, he would go on a retreat for discernment.

During the Asian financial crisis where most contractors suffered and cut the salaries of workers, Espiritu attended a retreat and he ended up paying his people more.

His people reciprocated such gesture with improved productivity giving them an edge and keeping them afloat during those difficult times.

I believe we are grounded in Him. When we get caught up in the business of life, we sometimes forget the basics,” says Espiritu, who always reflects on what the Lord’s message wherever he maybe.

With Espiritu on top, DATEM will never forget the basics of life.