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"We in
the DPWH, as well as the constructors and suppliers who participate
in the implementation of projects are among the most frequent
users of the Guidebook and the beneficiaries of ACEL's efforts."
Gregorio R. Vigilar
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Acel's Story
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The upscale in construction activities in the mid-sixties was the start of the glory years of the construction industry. Massive infrastructure development was being done in various sectors such as power, irrigation, transport, commercial, housing and real estate development, etc. The upbeat scenario was a most welcome development but obstacles were inevitable. The formidable challenge of meeting the demands of the time
called for a pooling of all possible resources and one of
the more immediate problems that surfaced was the dearth and
serviceability of the construction equipment in use during
that time. Due to the prohibitive cost of acquiring brand
new equipment, or even second hand units, for that matter,
the contractors bonded together to come with a workable plan
to address the shortage of equipment. Eight (8) Charter Members were the pioneer members of ACEL and these companies were the following:
ACEL first introduced the practice of equipment leasing and rental. Today, this is considered the best possible alternative to owning construction equipment that will necessitate costly maintenance and upkeep. The first agreement forged by the group was the standardization of rental rates that will apply to all members owning and operating the same kind of equipment. The end result of all these efforts was the first ACEL Equipment Rental Rates Guidebook, which came out May 28, 1966. Equipment Rental Requisition forms were also standardized and were used as the basis for rental rates contracts as well as reference for rentals, sales and/or purchase of equipment. Through the years, the rental rates were revised and updated to adapt to the changing needs of the market. In 1979, a definite formula that approximates a lessor's owning and operating costs was accepted by the general membership. With this new approach in the computation rental rates, careful study was given to variable factors that influence rates such as acquisition cost, depreciation, replacement costs, operator’s wages, fuel and other costs. And to properly monitor this computerized database has been developed. Moreover, terms and conditions were better defined and broadened to cover all possible nuances of the trade. ACEL's unified vision to professionalize the industry was becoming more and more a reality. In 1981, Equipment Guidebook No. 15 which is an expanded edition that included equipment specifications and profile was published. This was later revised two years later because of the need to keep abreast of changing conditions in the industry. This particular edition was in collaboration with the Bureau of Equipment of the Department of Public Works and Highways whose endorsement of the Guidebook continues to this day. The subsequent editions of the guidebook included provisions for automatic escalation formula, inclusion of ports handling equipment and with Guidebook No. 19, ACEL launched a book on equipment performance "The Equipment Performance Handbook Edition 1 Vol. 1". The specifications contained in this handbook will help in equipment sourcing and identification since this is a comprehensive guide for those not too knowledgeable with equipment. ACEL has also, by this time, delisted some types of equipment which have become obsolete in the industry. In November 1992, the ACEL Equipment Guidebook, 20th edition was released. One useful feature of this particular edition is the inclusion of a basic reference on the average utilization per year for each type of equipment. This gives a more realistic approach in the estimation of recovery investments. For the 21st Edition of the ACEL Equipment Guidebook, all brand new models listed in the Guidebook are equipped with internationally accepted safety devices in accordance with the requirements of the Department of Labor and Employment Order No. 13 on guidelines governing Occupational Safety and Health in the construction industry. The newest edition is ACEL Equipment Guidebook, Edition 22 which incorporates provisions to consider the impact of dollar rates on labor and fuel; equipment rating; testing and standardization cost and other triggers of economic activity, as well as the inclusion of a separate formula for light and medium equipment. Also included in this edition is the ACEL Safety Manual for Heavy and Stationary Equiment. To better improve the services to its members various initiatives were done, namely:
From that time on, ACEL became the pulse and the voice of the industry. Through the years, ACEL has been very successful in protecting the rights of its members. It continues to establish linkages with other relevant organizations like insurance firms, freight and shipping companies, government agencies, etc. Together with the Philippine Constructors Association, Inc. and other industry organizations, it supported actions on the reduction of duties and taxes on undercarriage parts and successfully opposed the imposition of the Tariff Commission of additional dumping duties on tractor parts from Italy, among others. The Association has been in the forefront of activities in manpower development and has worked vigorously for the promotion of construction safety in work sites. The years that followed showed ACEL giving priority to manpower development. The subsequent boon and bust of the Philippine construction industry played a significant role in ACEL’s thrust to focus on manpower development and to come up with a system that can gauge workers’ capabilities and competence. Essentially, the focus is four-fold, namely:
By 1989, the Association initially entered into a Memorandum of Agreement with the National Manpower Youth Council (NMYC) to develop six (6) Trade Skills Standards, namely:
The following year, three (3) Trade Skills Standards and Trade Test Standards were developed and these are:
Subsequent years saw the finalization of more test standards which are the Crawler Crane Operator, Rigger, Road Roller Operator and the Heavy Equipment Operator. The Pilot Testing and Certification Program for Construction Heavy Equipment Operation and Maintenance was a collaborative effort between ACEL, the Construction Manpower Development Foundation (CMDF) and the National Manpower Youth Council (NMYC). The program provides testing and classification of operators and mechanics both in the government and private sector. In 1993, Career Path Programs for Mechanics, Operators and Engineers have been finalized and implemented. The program underscored the importance of upward mobility, occupational respectability and continuing improvement of the workforce. A partnership between the National Manpower and Youth Council (NMYC), Construction Manpower Development Foundation (CMDF) and ACEL was forged to come up with a suitable program for all the levels. It was also during the year that ACEL through the NMYC collaborated with the Japan International Training Cooperation (JITCO) which facilitated the transfer of technology of trainees sent by Philippine companies. The project is a purely private arrangement between Philippine and Japanese companies with both governments acting as facilitators. Duration of the training was a maximum of two years of technical internship on-site program. ACEL with the help of CMDF and the Ayala Foundation have come up with a financing scheme that enabled workers to undergo courses at CMDF on a Study Now, Pay Later Scheme. In this set-up ACEL was tasked to provide information on blue collar skills requirements and identification of possible candidates. ACEL member companies committed to provide some incentives like payments of salaries during training, corresponding salary adjustments for eligible trainees, subsidized tools and assurance of work placements for project worker’s status. Meanwhile, a comprehensive year long program of seminars has been developed and continues to be offered to date. As part of a continuing education program, these technical seminars included the following:
. ACEL has also sponsored the Technology Forum for all PHILCONSTRUCT Exhibitions since it was started in 199__. The forum featured seminars on equipment management, construction safety, manpower development, construction processes and technology. In recognition of ACEL’s crucial role in manpower development, Technical Education and Skills Development Authority (formerly the NMYC) has accredited ACEL as solely responsible for the implementation of programs of assessment and certification of middle level manpower in the heavy equipment sector. ACEL conducts regular trade testing which is composed of a written and practical performance test in the following occupational titles:
A certificate of competency and a competency certification card are issued to all successful examinees. Moreover, a tie-up with an engineering school for the development
of a course in heavy equipment operation and maintenance and
the establishment of an ACEL Cooperative for discounted equipment
parts for ACEL members have been added to its growing list
of achievements. At this point the Association has taken steps to increase
the coverage of companies eligible for membership to include
mining firms, real estate developers, quarrying firms and
financing/banking establishments. The rationale being that
these entities could be good sources of information and assistance
to ACEL members in their pursuit of their businesses. Another focus has been the establishment of closer ties with allied services and producers for sources of spare parts, machines and other needed supplies as used in the industry. More importantly, the association has forged alliances with the government and private sector and continues to buildup the relationship in pursuit of its interests. It has done continuous liaison work with agencies like DOLE, DPWH, BOE, MWSS, NIA, etc. The Association has made its position known regarding issues affecting the industry such as its opposition to the entry of foreign rental companies in the country and deliberations regarding the mandatory registration of heavy equipment . In April of 2000, ACEL moved into its new corporate office at the Jollibee Plaza Condominium at Ortigas Complex courtesy of generous ACEL members who advanced out of pocket the initial payment for the office. This project was the first for the newly formed ACEL Foundation, Inc. which was incorporated to provide leeway for ACEL to participate ad undertake activities not, otherwise, provided for in the Association’s charter. Hosting of sports activities have been a continuing concern for ACEL. Golf, badminton, billiards and bowling tournaments have been held to ensure that camaraderie is forged and the physical well being and fitness program for members are addressed. ACEL has come a long way since it was started in 1966. The
unselfish efforts of the men and women of the industry have
contributed, in a large measure, to the open and level playing
field now being enjoyed in the industry. The unified vision
ACEL has adopted will see it through the coming years. ACEL HISTORY AT A GLANCE 1966 – Incorporation of the Associated Construction Equipment Lessors, Inc. ACEL introduced the system of equipment leasing which is accepted as the best possible alternative to acquiring heavy equipment for immediate use, where outright purchase may not be possible because of the huge capital outlay involved. The first operational agreement among ACEL’s incorporators was the approval of a resolution calling for the standardization of rental rates, covering all members of the Association who have the same kind of equipment. On May 28, 1966 the first standardized Equipment Rental Rates was finalized and disseminated to ACEL members. 1979 - A definite formula which approximates a lessors’ owning and operating costs was accepted by the general membership. With this new approach at computing the rental rates, factors like acquisition costs, depreciation, replacement costs, operators’ wages, and fuel prices have been considered. 1981 - ACEL published Guidebook No. 15 which included an expanded guide to include equipment specifications and profiles. 1983 - ACEL coordinated with the Ministry of Public Works and Highway and the Bureau of Equipment Utilization to revise its rental guiding rates in order to reflect current market trends and nuances. 1984 - ACEL revised the guidebook to include automatic escalation formulae. 1989 - ACEL formalized its role in manpower
development by entering into a Memorandum of Agreement with
then National Manpower Youth Council in the development of
six (6) Trade Skills standards and Trade Test, namely: Wheel
Loader Operator, Motor Grader Operator, Hydraulic Excavator
(Backhoe) Operator, Tower Crane Operator, Rough Terrain Crane
Operator and Truck Mounted Crane Operator. Publication of the ACEL Equipment Guidebook No. 19 that included
ports handling equipment and launched the first ever locally
published book on equipment performance, the “Equipment
Performance Handbook Ed. 1, Vol. 1 – Crawler Tractor”.
1991 - DPWH first endorsed the ACEL Equipment Guidebook by coming out with CO No. 146 with the directive that such rates be used as basis for estimation of all government projects. ACEL – Cebu was incorporated. Established the JICA-funded Regional training center which aims to provide the industry with a continuing supply of manpower. 1995 - ACEL hosts the biggest equipment show as part of the activities of Philconstruct. 1993 ACEL transfers to its corporate office at Jollibee Plaza at Ortigas Complex. 1994 - ACEL finalized the development of the Career Path Development for Heavy Equipment Mechanics. 1996 - ACEL conducted the Trade Testing Officers Course (TTOC) 1997 - ACEL – Davao Chapter was incorporated. The same year, an undertaking was formalized for the training and trade skills testing of heavy equipment operators in the region. 1998 - Effectivity of DOLE Order No. 13 on guidelines governing Occupational Health and Safety in the Construction Industry. ACEL formulated accreditation tests for equipment inspectors and equipment test standards to comply with the minimum standard safety requirements. 1999 - The ACEL Foundation, Inc. was formed. This non-stock, non-profit organization aims to conduct and assist in research activities relating to the development of equipment, machines and tools utilized for the industry; to assist in the construction of scientific, training and educational institutions relating to the industry, to provide scholarships to deserving and qualified individuals; and to obtain loans and credit to achieve set objectives 2003 - ACEL Construction Equipment Safety Manual came to in CD form as part of the 2003 ACEL Equipment Guidebook. ACEL Golf Club was formed. ACEL joins the national emergency response team. ACEL has offered the free use of construction equipment when needed during relief and rescue operations. 2005 - MOA signing between TESDA and ACEL for the Philippine TVET Qualification and Certification System accrediting ACEL to undertake assessment and certification programs. During the Philconstruct 2005 ACEL conducted a whole day seminar on an “Introduction to Equipment Management Course” which aims to familiarize participants with the five (5) stages of equipment management; namely, selection, acquisition, administration, maintenance/lubrication knowledge and disposal. 2006 - Final output and project completion report for the development and validation of competency standards and competency assessment tools were submitted to TESDA. These include the following: concrete pump, asphalt paver, transit mixer, articulated dump truck, backhoe loader, on-highway dump truck. Signing of Memorandum Of Agreement between ACEL and TESDA designating ACEL as an Accredited Organization (AO) with sole responsibility assessing and certifying trade skills for the heavy equipment sector.
ONOFRE B. BANSON - Monark Equipment Corporation |
