EEI Corporation TITLE Rev. No.

: 0
Construction Division Construction Method Statement for the Proposed Date : Oct. 16, 2001
Beach Access Road Page : 1 of 9

There will be one Project Management Team (PMT) to undertake the “Proposed Costa de Madera Beach
Access Road” for Costa de Madera Landholdings, Inc.” The PMT shall be headed by a Project-In-Charge
(PIC) who shall be responsible for the timely and safe execution of the project according to client’s
specifications. The PIC will organize group of experienced and qualified personnel to undertake the various
civil works for the project.

Upon receipt of notice that we are awarded the contract, each Project Management Team shall be organized
immediately and prepare a detailed Project Operation Plan (POP) with careful review of the scope of works,
construction drawings and specifications of the project.

Simultaneously, PMT will also identify, reserve, rent or purchase the necessary tools and equipment needed
for the work. The line up of personnel can be referred to the manpower-loading schedule and, the equipment
line up from equipment loading schedule.

Safety

Safety shall be our primary concern in the execution of the works. A safety engineer will be mobilized to
ensure Safety Policies and Programs are implemented. The project’s Safety Programs shall be developed
tailored to client’s Safety Requirement and Policies. The safety engineer shall be primarily responsible in
ensuring all workers are properly oriented with the hazards of the work.

Workers will be required to have personal protective equipment such as safety helmets, safety shoes, and
safety goggles. Housekeeping will be strictly implemented to avoid accidents.

Quality Control and Assurance

PMT will mobilize site quality control engineer, who reports directly to the project manager, to ensure
quality of work, conformance with client’s specifications and for appropriate quality control
documentation. A Quality Control and Inspection Plan will be prepared for client’s approval. The “Quality
Control Plan” will define specific responsibilities in quality control and various test and inspection points.

Record of inspection both for materials, processes and tests are recorded in a Quality Control Inspection
Report (QCIR). For raw materials, usually a mill certificate, certificate of conformance and record of test
(by testing agency or in-house) are prepared, recorded and kept. These documents form part of quality
documents required for traceability.

For in-process and final inspection of activities like welding, record of tests like MT (Magnetic Test), PT
(Penetrant Test), UT (Ultrasonic Test) and RT (Radiographic Test) are prepared, recorded, approved and
conformed by client or his authorized representative.

These test documents are kept in file and available for reproduction.

Qualification, Sourcing and Mobilization of Workers

 EEI Corporation TITLE Rev. No. : 0
Construction Division Construction Method Statement for the Proposed Date : Oct. 16, 2001
Beach Access Road Page : 2 of 9

Qualification of Workers

Workers to be mobilized for the project will be qualified according to our Personnel Qualification
Standards (PQS) to ensure workers are capable of doing each job. We have PQS for Mason,
Rebarman, Forms Installer, Steelworker, Scaffolders, etc. Our PQS includes 60% trade test and 40%
written test. They were also given aptitude and psychological test to be able to determine
psychological and behavioral problems. Interviews are conducted if test results are inconclusive.

After passing the psychological and aptitude test, they are required to undergo comprehensive
medical examination to be performed by medical clinics authorized by the government.

Sourcing

Workers to be mobilized for this project will be selected according to qualification vis-à-vis
capabilities and dedication. Manpower sourcing shall be done after identifying the required skills for
the project. Workers shall be sourced primarily from the following:

 Local sources

To build rapport with local government, most of our workers will be sourced primarily from
Batangas, though workers will undergo the qualification tests as discussed above. Only workers
which passed the qualification tests shall be hired.

In case skilled workers in the communities are not enough to sustain requirements, then we can
mobilize skilled workers from EEI Homebase. Workers will be sourced primarily from the following:

 Present Manpower Inventory

Preference shall be given to workers who have been in our company for long. Most qualified are
those who had work with projects with scope of works similar to this project.

Our workers have undergone training programs at our Craft Training Facilities in EEI-CD
Manggahan Headquarter. Our training center is well equipped with modern teaching equipment,
aids, and workshop equipment. We have qualified trainers who have the qualification and
extensive experience gained from years of exposure in the field. Our training center and facilities
are capable of training men in the following trades:

 Formworks and Scaffolding Works

 Rebar Fabrication
 Masonry works
 Structural Erection and Rigging
 Welding Technology (SMAW, TIG, MIG, SAW, FCAW)
 Pipefitting and Boiler making
 Millwright and Equipment Alignment
 Structural Erection and Rigging
 Electrical and Instrumentation
 Manpower/Personnel Information System (PERSIS)/Manpower Data Bank
 EEI Corporation TITLE Rev. No. : 0
Construction Division Construction Method Statement for the Proposed Date : Oct. 16, 2001
Beach Access Road Page : 3 of 9

In case additional manpower are required, we can immediately generate list of qualified workers,
who are on indefinite leave or vacation due to project completion, through our computerized
Manpower/PERSIS (Manpower/Personnel Information System). The system has the capability to
sort and categorized workers with work experiences similar to this project.

Mobilization

Mobilization of workers shall be done following the “Manpower Mobilization Plan” prepared by the
Project Management Team at the initial start of the project. Hiring and deployment of additional
workers as the project progresses will depend on PMT advice and request.

Sourcing and Mobilization of Tools and Equipment

Construction tools and equipment will be deployed to the jobsite in accordance with the established Tools
and Equipment Loading prepared by PMT. Only tools and equipment which have passed
certification/load and calibration test will be deployed to jobsite. Tools and equipment lined up for
mobilization to this project shall come from our equipment yard in Majada, Laguna.

Major equipment and tools to be mobilized for this project are:

a. Backhoe/excavators
b. Dump trucks
c. Graders
d. Payloaders
e. Vibratory road rollers
f. Water tank
g. Vibratory screeds
h. Tamping machines
i. Truck-mounted pumpcrete

Project Controls

Timely and sound project management actions are dependent on proper feedback.. Clearly defined
systems and procedures which have been developed for effective project control will be used in projects.
Manual and computerized techniques are employed in various control measures as in project schedule,
materials control, equipment and tools control, design, quality assurance/quality control, cost reporting,
and control of field change order and design.

Project Schedule Control

The construction schedule shall serve as road map in the execution of the project. As such it shall be
followed from the initial project start to completion.

Our project schedule is prepared using Primavera Planner software with the construction plan
prepared through PERT/CPM method to present the logic. Monitoring shall be done weekly with
corresponding report submitted to client. Analysis of actual of versus planned progresses, variance
analysis and productivity measurement is employed through out the project.
 EEI Corporation TITLE Rev. No. : 0
Construction Division Construction Method Statement for the Proposed Date : Oct. 16, 2001
Beach Access Road Page : 4 of 9

Material Control

Control of materials purchases and materials requisition shall be the responsibility of project
materials controls engineers. As such, they must be fully aware of the type of materials and quantities
in the estimate.

Withdrawal of materials from the field warehouses shall be covered with a Jobsite Materials Issue
Form (JMIF) duly approved by the field supervisor of the area concerned, and countersigned by the
materials control engineer and the construction manager. Only JMIF bearing signatures of these
signatories are honored.

Equipment and Tools Control

Equipment and tools control monitors such areas as selection of the appropriate equipment, operation,
and maintenance, optimization of usage, and fuel and lubricants consumption.

Cost Reporting

Cost reporting provides the project management with information on the financial position of the
project. Relevant reports such as variance analysis, cost for completion, and cash flows are regularly
generated.

Change Order Control

Change order control is exercised to ensure that no project change is made until all parties are aware
of cost, schedule and performance impact of any change on the project.

Document and Drawing Control

Document and drawing control are employed to ensure proper recording, safekeeping, and retrieval of
project-related documents, drawings, and communications. A Document Control Custodian will be
mobilized at project site to ensure implementation of our document control system.

Project Support

Our total execution plan includes other activities that are also essential in the successful completion of the
project.

Temporary Facilities

After the award of contract the PMT will immediately commence with the planning of the temporary
facilities in coordination with client. We shall provide our own camp/accommodation facilities and
site facilities.

Site Facilities
 EEI Corporation TITLE Rev. No. : 0
Construction Division Construction Method Statement for the Proposed Date : Oct. 16, 2001
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Site facilities such as site office, warehouse, tool room, and rebar fabrication shop shall also be
provided on client’s designated location on project site.

Site facilities shall be designed for efficient workflow and optimized use of space. Material
laydown areas will be arranged into sections by general class of materials providing access for
equipment during delivery and hauling. Perimeter fence shall be constructed to protect the
materials from intruders and pilferage.

CONSTRUCTION METHODOLOGY

General Construction Scheme

Inasmuch as there is no other way for our equipment during the construction of proposed access road, our
plan is to commence the development of the proposed access road from chainage 436.675 along MC01,
and moves backward toward chainage 316.95. All works along this length will be completed in two
months. This involves various earthworks, construction of gabion retaining walls, drainage lines and road
construction.

At the start of the third (3rd) month, work will now start from chainage 320 and progresses backward to
chainage 0 along MC01. This works will be completed in three (3) months and involves the construction
of concrete retaining walls, grouted rip raps, drainage lines and road construction.

Site Survey and Layout

Survey group shall be mobilized ahead of the regular working crews and staff. Survey group shall
commence with a joint survey with client’s representative to locate property boundaries, construction
limits and or construction right of way (ROW) legal markers. After the joint survey, a route survey shall
be conducted to establish the centerline of the road and chainages at control line MC 01 and MC02 as
indicated on the plans. Theodolite shall be used to establish the centerline and chainage of the proposed
road. Stations /chainage markers shall located on locations where it won’t be disturbed during earthworks.

Excavation and Site Grading Works

After surveying of the area, excavation and/or stripping of the topsoil shall commence immediately. This
shall be done using a backhoe for bulk excavation works and graders for soil stripping in some areas.
Payloaders and dump trucks shall be utilized for disposal of excavated/stripped soil from the area or
stockpiling in a designated location near site if excavated soil maybe used for backfilling and
embankment purposes. Stripping of topsoil shall be done carefully and coordinated with the equipment
operator to avoid rework.

Immediately after stripping, at each chainage, placement of slope stakes shall be carried out. Stakes are
driven in angled way from the centerline to delineate not only the limits of stripping but also indicate the
limits of cut and fill as determined by project engineer and surveying party chief. Location of slope stakes
is only scaled from the cross-section plan and laid actually using steel tape. Cut and fills are written on
that side of the stake facing the centerline.
 EEI Corporation TITLE Rev. No. : 0
Construction Division Construction Method Statement for the Proposed Date : Oct. 16, 2001
Beach Access Road Page : 6 of 9

After cut and fill operation, the proposed subgrade must be verified by cross sections before laying of the
base courses will start.

Construction of Reinforced Concrete Retaining Wall

Construction of reinforced concrete retaining wall shall commence as soon as the survey group has laid
out the proposed line/location of the proposed retaining wall and before the adjoining roadway is stripped
off with topsoil.

Excavation

Excavation for retaining wall shall be done using backhoe to the desired elevation as shown in the
drawings. Excavation shall be carried out only after clearing and grubbing of areas with vegetation
and matted roots. All excavated materials shall be stockpiled on a designated location near site if
excavated materials are to be utilized for backfilling, otherwise when not to be utilized then excavated
materials shall be disposed immediately using dumptrucks.

Rebarworks

Rebar Fabrication

Rebar fabrication works shall be done by a dedicated group of rebar fabricators. A rebar
fabrication shop shall be established at site for cutting and bending of rebars. Reinforcing bars
shall be procured in Manila and all delivered rebars shall be randomly checked for conformance
to project specifications. Only rebars which passes QC inspections in Manila will be delivered to
job site.

Fabrication of rebars shall be done following a rebar cutting list, which shall be prepared by a
field supervisor. The rebar cutting list shall be submitted to the rebar fabrication foreman for the
preparation of a Rebar Fabrication Schedule based on the Project’s Master Schedule. He shall see
to it that he has the adequate resources for the timely serving of rebar requirements of the whole
project.

All fabricated rebars shall be handled and delivered to job site using a trailer. Rebars shall be
bundled with proper tag or identification for traceability.

Rebar Installation

Reinforcing bars are placed in exact position as shown on the drawings and held securely in
position by concrete block and ties during concrete pouring. Lifting of rebars shall be done
manually piece-by-piece.

Formworks
 EEI Corporation TITLE Rev. No. : 0
Construction Division Construction Method Statement for the Proposed Date : Oct. 16, 2001
Beach Access Road Page : 7 of 9

Formworks system to be utilized for construction of retaining walls shall be done using panelized
forms with complete accessories.

Concreting Works

Ready-mix concrete for this project shall be procured from a local concrete supplier. Proximity to the
project site shall be our primary criteria in the selection of ready-mix supplier. Samples of concrete
mixes shall be taken randomly as specified in project specifications.

Concreting works shall be done after client’s approval of our “Pouring Request”. Interval of mixes
shall be planned and identified during concrete operations to avoid overmixture of concrete. Placing
of concrete shall be arranged so that no face of concrete shall be left more than one hour before fresh
concrete is placed against it.

Concrete will be deposited directly to the concrete forms using truck-mounted pumpcrete. After
deposition of concrete, it should be consolidated properly by means of concrete vibrator. Concrete
vibrators shall be at all times held vertically during consolidation of concrete to avoid segregation of
the aggregates. Concrete vibrator is withdrawn from the concrete at a rate of 1in. per second to avoid
displacement of the aggregates.

Backfilling and Compaction

Backfilling and compaction shall be done using appropriate equipment and all backfilling materials
shall be compacted on a layer-by-layer basis to achieve the specified percentage of maximum density
at optimum moisture. On small backfilled areas, vibrating plate compactor will be used for
compaction, while on large backfilled areas vibratory rollers will be used. Whether a vibratory roller
or vibrating plate compactor is used, the maximum depth of compacted and minimum number of
passes required shall follow the requirements in the specifications.

Fill materials shall be of approved type. Samples of backfilled and compacted materials shall be taken
and conducted for field density test and shall attain 95 % compaction. The test sample or specimen
shall be taken on every layer of compacted materials and shall be tested in accordance with the plans
and specification.

Portland Cement Concrete Pavement

Preparation of subgrade

Preparation of the subgrade shall be started as soon as the bulk excavation and /or soil stripping have
been carried out to the desired grade and elevation. On areas where storm drainage and reinforced
concrete culvert (cross pipes) are to be installed, then this shall be installed ahead of the subgrade
/base course preparation. Compaction shall be done using vibratory road roller and/or vibrating plate
compactor whichever is applicable. Compaction shall be done until a uniform density of not less than
95 mass percent of moisture content is achieved or as specified in the client’s specifications.
Subbase and base course
 EEI Corporation TITLE Rev. No. : 0
Construction Division Construction Method Statement for the Proposed Date : Oct. 16, 2001
Beach Access Road Page : 8 of 9

Aggregates of sub-base course may consist of hard, durable particles or fragments of crushed stone,
crushed slag, or crushed or natural gravel and filler of natural or crushed sand or other finely divided
mineral matter whichever is specified. The aggregate sub-base materials will be placed on uniform
layer, and shall be compacted thoroughly before laying the upper layers. Vibratory road roller shall
follow the progress of aggregate laying for layer-to-layer compaction. Rolling shall progress
gradually from the sides to the center, vice-versa and shall be done continuously until the whole
surface has been rolled.

In general, aggregate materials shall be laid on layers of 100-mm. minimum followed by vibratory
road roller compaction until the specified percentage of maximum density is achieved. In order to
achieve required compaction, the moisture content of materials shall be adjusted by watering or
sprinkling water.

Base course shall also be laid and compacted in the same manner as subbase aggregates, though
laying of these materials shall be done on layers of 50 mm. thick for each layer followed by vibratory
road roller compaction until the specified percentage of maximum density is achieved.

Concreting works

Concreting works shall be done in by lane-at-a-time method. This is done so that areas to be
concreted shall be readily accessible. Depending on the schedule, length of the lane or strips that will
concreted per day shall be terminated on a planned construction joint. Concrete mixes shall be poured
directly from the concrete mixers by means of its chute. Spreading concrete mixes shall be done using
concrete screed and other appropriate hand tools.

Concrete curing shall be done using polyethylene sheets laid on newly laid concrete and remain in
place for the entire curing period.

Gabion Retaining Walls

Areas/sections where gabion retaining walls are to be constructed shall be developed ahead so that the
installation of gabions could be started immediately. Construction of gabion retaining wall shall
commence as soon as the survey group has laid out the proposed line/location of the gabion retaining wall
and before the adjoining roadway is stripped off with topsoil.

Excavation

Excavation in mountain slopes where gabion retaining wall is to be installed shall be done using
backhoe to the desired elevation as shown in the drawings. Excavation shall be carried out only after
clearing and grubbing of areas with vegetation and matted roots. All excavated materials shall be
stockpiled on a designated location near site if excavated materials are to be utilized for backfilling,
otherwise when not to be utilized then excavated materials shall be disposed immediately using
dumptrucks.

Installation of gabion baskets

 EEI Corporation TITLE Rev. No. : 0
Construction Division Construction Method Statement for the Proposed Date : Oct. 16, 2001
Beach Access Road Page : 9 of 9

Installation of gabion baskets shall commence after compaction of the grade elevation where first
layer of baskets are to be laid. Prior to laying of each gabion basket, it shall already be filled with
selected fill boulders/rocks. Filled baskets shall be lifted using a 20-tons cap mobile crane. Gabion
baskets shall be hitched to avoid deformation of the basket due to the boulders weight.

Laying of gabion baskets shall be done intermittently with backfilling and compaction, i.e. after
laying one basket layer, backfilling and compaction shall follow immediately up to the basket level
that had been laid. Compaction shall be done using vibratory road roller on large backfilled areas,
while tamping machine shall be utilized in constricted areas.