Reytech pushes prefab as costs climb

REYTECH CONSTRUCTION and Development Corp. is promoting the use of pre-engineered building (PEB) technology as a way to reduce construction time and labor costs amid rising input prices and labor shortages.

Speaking to BusinessWorld on the sidelines of the Philconstruct Expo last week, Reytech Construction President Francis Reyes said PEB is a construction methodology centered on offsite prefabrication rather than a specific building material.

He said moving fabrication offsite allows the company to streamline construction and improve project efficiency.

“If everything is pre-built already, all you have to do is [assemble it]. As soon as it comes, you just bolt it and erect it,” he said.

Mr. Reyes said the approach reduces the need for onsite welding, which typically requires specialized equipment and heavy lifting.

Instead, prefabricated components arrive with pre-drilled holes, allowing structures to be assembled more quickly.

He said the company sees PEB reducing project implementation time and labor costs by 20% to 30%. The process also minimizes risks associated with weather disruptions and labor disputes.

To help manage material costs, Reytech Construction sources components through its Batangas facility and suppliers in China and Vietnam.

“The global supply chain promotes the efficiencies of other markets, particularly China and Vietnam, where the input cost is surprisingly lower than the Philippines,” Mr. Reyes said.

He attributed China’s cost advantage to its abundant steel supply and domestic foundries, while Vietnam benefits from lower fabrication labor costs.

Although concrete has traditionally been the preferred construction material in the Philippines because of the country’s exposure to natural disasters, Mr. Reyes said steel offers greater design flexibility and faster construction. He cited New York City’s Empire State Building as an example of a steel structure completed in about one year during the early 1900s.

“The flexibility in terms of how we get to execute new designs [is key],” he said.

Mr. Reyes said Reytech Construction is applying PEB solutions to major infrastructure projects, including airport developments undertaken with San Miguel Corp.

He added that the company’s adoption of PEB forms part of a broader effort to strengthen the country’s mid-sized construction sector through compliance with international standards, including the International Organization for Standardization’s 9001 quality management standard.

“We want to bring back the market’s confidence to the different mid-sized contractors in this country” he said.

“It’s high time for the Filipinos to get what they deserve… the right partner in building infrastructure, building their houses, building the malls, or building the high-rises that we need.” — Juliana Chloe A. Gonzales