FAIRBUILDING NETWORK

Introducing

Creating a new marketplace.

Enabling construction with a conscience.
Overcoming poverty, one project at a time.
The FairBuilding Network is a platform that brings together
willing buyers and willing sellers in the Base-of-Pyramid
(BoP) construction market. It identifies and highlights projects
developed by NGOs, local government units and social housing
developers that are normally off the radar of the mainstream
building industry. Acting as a catalist, FairBuilding connects social
developers, both commercial and non-for-profit, with members of
the building promote industry that are willing to their social agenda
by contributing products and services well under their normal
terms. Every trading single project brought to fruition on the
FairBuilding Network is a small step towards overcoming poverty
and homelessness.

With this innovative approach, the FairBuilding Network has

embarked on a quest to change the lives of the most disadvantaged
people in the emerging world.
 FAIRBUILDING NETWORK

THE CHALLENGE
One of the Philippines most urgent and prevalent infrastructure deficiencies
is housing. Currently, 22.8 million people in the Philippines live in slums or
informal settlements. Residents lack resources to legally settle in urban areas
and have nowhere else to go, occupying private and government-owned land
which is often in high risk areas such as riverbanks, bridges, railroad tracks
and hillsides. As a consequence, informal settlement residents are exposed to
both natural and man-made hazards. They do not hold land rights. They lack
sanitation and clean water access. They are exposed to pollution, congestion
self and noise. They made dwellings are highly vulnerable to natural disasters.
Community initiatives and social housing developments are disproportionally
disadvantaged in accessing the goods and services of the building industry.
FairBuilding Network has set out to change that.

CONSTRUCTION NEEDS OF
MANILAS POOR: THE FACTS
As part of its commitment to corporate social responsibility, BCI in 2012
conceived the BCI Fellowship initiative to investigate ways to support
impoverished communities to obtain affordable housing. In collaboration
with Asian Social Enterprise Incubator Inc. (ASEI), BCI Fellowship explored
the socio-economic and housing situation of informal settlements in Metro
Manila, and the ramifications for the building industry.

A 2013 quantitative market study was conducted to identify the potential

for urban social housing development. The study extrapolated the Quezon
City results to conclude that the total market volume for construction
material to replace Metro Manilas informal settlements amounts to over
USD $650 million. With an assumed 6% annual population growth, an
additional USD $40 million value will be added each year. There would also
be a substantial market for home improvement. Additionally, government
figures estimated that there is approximately USD $481 million in locked
land assets that cannot be utilized due to informal settlers occupying
these lands. These numbers highlight considerable opportunities for the
construction industry in the Metro Manila area alone; the likely market
potential for the Philippines is even greater.
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OPPORTUNITIES FOR THE BUILDING INDUSTRY

There is a remarkable misperception of global markets that prevents empowerment of underprivileged
communities. In economics jargon, the billions of impoverished people are referred to as the base of the pyramid
(BoP). It is commonly understood that individually, they lack economic power and so businesses tend to dismiss
them as relevant target groups. It was C.K. Prahalad who corrected this misconception and highlighted the
tremendous potential benefits to large companies if they could suspend long-held orthodoxies and choose to
serve BoP markets in ways responsive to their needs.

Preconceptions are no less engrained in the building industry. It is commonly believed that it is difficult to
compete profitably in an undeveloped market. In recent years, however, there have been notable successes by
forward-looking multinational corporations and organizations who have devised innovative projects to open up
BoP markets.

The housing sector is potentially enormous at the BoP, particularly in developing countries with fast growing
populations. One of the most inspiring examples is the Patrimonio Hoy (Property Now) program, launched
in Mexico in 1998 by the multinational cement manufacturer, CEMEX. The company introduced an innovative
Savings-Credit-System whereby low income families obtained access to credit based on their savings and
payment discipline. Since the program first began operating in 2000, Patrimonio Hoy has provided affordable
solutions to more than a million people throughout Latin America and has enabled more than 350,000 families to
build their own homes. Houses took a third of the time to build, at a third of the costs.

WHERE FAIRBUILDING STARTED

In most emerging and developed market economies, the building sector enjoys relatively favourable and
consistent market conditions. That said, lack of transparency makes it systemically hard for market demand and
supply to meet and match up, causing not only market inefficacies but also making room for graft and corruption.
This is where BCI Media Group comes in.

Founded in 1998, BCI Media Group researches close to 250,000 construction projects per year across Southeast
Asia (including Hong Kong), Australia and New Zealand. BCI serves over 11,000 professionals in over 7,000
member firms and maintains a network of over 1.0 million industry contacts in the region.

By comprehensively researching and illuminating the demand side of the market projects in the development
pipeline from concept design all the way to construction BCI creates a degree of market transparency that
allows the building industry to compete efficiently and on a level playing field. Where BCI is active and utilised,
developers and designers have a greater choice when sourcing products and services. Better quality products
are specified and the lowest bidders win. Unfair trade practices and corruption dont have protective environment
of murkiness and secrecy in which they thrive.

We started to ask, what if we were to extend BCIs role as transparency catalyst in the mainstream market to the
market of underprivileged? The answer led to the formation of BCI Foundation, an Australian not-for-profit entity,
which became the social action arm of BCI Media Group and operates the FairBuilding Network.
 FAIRBUILDING NETWORK

OUR JOURNEY: HURDLES AND INSIGHTS

As a first step, we established the software solution: an
online platform the FairBuilding website that enables
the communication and interaction between the different
construction market players. The backbone of the platform is
a growing repository of social building projects that essentially
mirrors the BCI project leads database. Similar to BCIs
commercial project leads service, the database is accessible
to building material manufacturers and suppliers, contractors,
subcontractors, engineers and designers, with one main
difference: in contrast to the commercial BCI service, access
to the database is free.

The platform was launched in June 2014 at a highly visible

launch event in Makati, with more than 100 invited guests in
attendance. While the day marked a significant milestone on
our FairBuilding journey, it was only the start of our efforts to
actually bring FairBuilding to life.

Our initial thrust was to populate the FairBuilding project

database with social projects organised and funded by
NGOs. To that end we signed Memoranda of Understanding
with nine highly reputable organisations whose projects we
uploaded onto the FairBuilding Network (FBN) database.
These organisations have listed (and are currently promoting
to the industry) 95 projects on the FairBuilding Network. These
projects represent an estimated housing supply for approx. However, despite our efforts, the online platform didnt ignite
56,373 underprivileged families. the traction we were hoping for.

In order to avail the social developers of a broad array of
suppliers providing discounted products and services we
invited 273 building industry players (called FairBuilding
Partners) onto the FBN platform. By listing themselves as
FairBuilding Partners these firms have identified themselves
as being interested in working with NGOs on social projects,
and have indicated their willingness to stretch their economic
possibilities to help projects off the ground.
In mid-June 2015, we developed a guided approach that
focused on mutual trust and commitment as the key foundation
for an effective exchange between NGOs and industry partners
on the FBN platform. As a result, we have begun to place
more emphasis on establishing relationships with and between
individual NGOs and industry partners on a personal basis. We
do so by strategically creating an atmosphere of trust between
the different partners based on a mutual understanding of the
aims and intentions the FairBuilding Network.

Since the beginning, the Network has been growing and key
stakeholders in the industry have showed their support.
FAIRBUILDING NETWORK

NEW STRATEGIC APPROACH

The new focus has contributed to the first exciting success

stories of the FairBuilding Network, which bode well for the
future. With our new approach, we introduced the following
tools and activities:

Project specific events called Engagement Forums: we

organise bi-monthly meetings between NGOs and industry
partners. This allows the NGO to articulate specific needs
associated with projects, and suppliers can gauge if they wish
to get involved and do well by doing good. We have organised
six forums between Oct 2015 and Oct 2016.
We also organise and facilitate exclusive meetings between
NGOs and individual suppliers designed to introduce suppliers
to specific project opportunities.

Accreditation: we encourage FairBuilding Industry Partners

to become Committed Partners. By signing a formal Letter
of Commitment an accredited partner undertakes to grant
specific discounts (at least 20%) when supplying goods and
services to FairBuilding projects. This makes the supplier stand
out as committed to doing good, and allows the NGO to zero
in on preferred partners when sourcing suppliers. To-date
FairBuilding boasts 45 Committed Partners.

Strengthened the Gold-Partner status as a real badge of

honor: with the annual FairBuilding Awards we acknowledge
the companies that have a genuine concern for disadvantaged
communities and a willingness to do well by doing good.

1413 Social Building Partners

11 Gold Partners
10 3 Social Building Advocates
51
45 Committed Industry Partners
224 Construction Industry Partners 1 supporter
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SUCCESS STORIES
After almost 2.5 years, we can look back on a number of
exciting and inspiring success stories the FairBuilding Network
facilitated between our NGO and Industry Partners.
One of our greatest success stories are the transactions
and collaborations between Industry Partners and Virlanie
Foundation, Inc. In this regard, Floor Center was generous to
Virlanie Foundation is a private,
non-profit organization reaching
out to street children in the
Philippines. For more than 23 years,
Virlanie has been helping children
who come from difficult situations
to hope for a brighter future and
become responsible and independent adults. Currently,
Virlanie has eight homes providing care for babies and young
children, young adults and children with special needs. Since
2015, Virlanie Homes undergo renovation to ensure a decent,
safe and comforting home for the children.
FairBuilding Network is credited with having a significant
impact on the refurbishment of three of their homes: Masaya
Home, Babies & Toddler Home, and Aime Home.
Contribution of BOYSEN PAINTS
to Virlanies MASAYA HOME
One of the first successful
transaction brought about by
the FairBuilding Network was
between Boysen Paint and
Virlanie Foundation, Inc. (VFI) in
which Boysen granted VFI 20% discount in the total costs
of painting supplies needed in the refurbishment of Masaya
Home last October 2015.
in an environment that support their development and learning.
One aspect of the renovation needs of Alme Home were the
floor tiles which were Aime Home cracked and urgently needed
replacement as the sharp edges of the broken tiles were cause
of injuries.
donate over 200 tiles to Virlanie Foundation.
The refurbishment of Aime Home was a
great opportunity for Floor Center to step
in and make a difference for those children.
Contribution of LEXIAR HANDYMAN, PHINMA PROPERTIES to
Virlanies BABIES & TODDLERS HOME
The third success story from Virlanie involves the organisations
Babies and Toddlers Home. In this facility, Virlanie cares for
abandoned and neglected babies and toddlers: some of the
babies were found unattended in random and unsafe locations
such as a gasoline station or even inside a garbage bin of a
shopping mall.
Virlanie Foundation requested for FairBuildings assistance
in finding a contractor to work on the refurbishment of the
building. This resulted in another successful transaction with
Virlanie and Lexiar Handyman Builders Co. Lexiar is one of
FBNs committed partners led by its manager, Alex Sabanal,
who has a heart in helping the poor and the disadvantaged.
Lexiar granted Virlanie 15% (amounting to over 80,000 PHP)
discount to the total cost of the project. Other than the 15%
discount from Lexiar Handyman, Phinma Properties also
granted Virlanie a 10,000 PHP financial assistance to support
them in the completion of the project. Boysen was also
involved in this project, giving Virlanie another 20% discount
for the needed painting materials in the refurbishment of BTH.

With the help of the contributions from Boysen, Masaya Home

is now painted and beautified to promote a vibrant mood full of
hope and aspiration for the children.

Contribution of FLOOR CENTER to Virlanies AIME HOME

With the success of Masaya Home, another building of Virlanie
was seeking support in refurbishment. The Aime Home plays
a vital role in Metro Manila by taking care of children with
disabilities. Most of the children in Aime Home come from
public institutions and government-run shelters for street
children. Some kids are also brought here by their families
since they cannot deal with the social stigma or afford the
expensive medical treatment. Virlanie ensures that the children
receive special health care and assistance. Aime Home
currently fosters more than 26 vulnerable children who grow up
FAIRBUILDING NETWORK

Another NGO and Social Developer, who benefitted from the

FairBuilding Network is Base-Bahay Foundation, Inc.

Base-Bahay, an initiative of the Hilti-Foundation, is a socially-

oriented organization that utilizes local, renewable raw materials
for creating sustainable and resilient housing solutions. Base-
Bahay has completed various construction projects for the poor,
the homeless and the survivors of natural calamities particularly
those of Typhoon Haiyan in 2014.

FairBuilding Network is proud to be actively involved in the

realization of one of Bases projects. FBN has nurtured multiple
transactions with Bases construction of 21 duplex homes in
Bagong Silangan, Quezon City. These homes were turned over
in August 2016 to 42 families who will be relocated from Payatas
and other flood prone areas in Bagong Silangan.

FairBuilding has enabled four successful transactions with Base

Bahay between November 2015 and October 2016:
Base Bahay purchased plumbing requirements (PVC pipes)
from Ambassador International, Inc., with the latter giving 20%
discount (approximately 40,000 PHP) for both purchases.
Matimco, Inc. supplied doors with a discount of 20% which
amounted to approximately 40,000 PHP
Jacinto Colorsteel supplied the roofing requirements offering
another 20% discount (67,500 PHP).
Yatai International Corporation has made multiple transactions
with Base Bahay, giving 25% on electrical supplies (about 12,
380 PHP) and donating a total of 294 compact fluorescent light
bulbs (about 12, 500 PHP).

The realization of this project will have a great impact on the

beneficiaries. Not only will they be able to live in beautiful new
homes, but the success of this project also lies primarily in the
fact that it will free these families from risks they are forced to
deal with as they live in Payatas. They will be less prone to
health hazards brought about by the dump of garbage right
across their current homes. Also, relocating these families
enables them to their lives in a safer environment.

Getting to see the children from the MASAYA and

AIME homes was a very humbling and gratifying
experience. The FairBuiding Network is very noble
in its cause, and we are absolutely thrilled and
grateful to have been able to become a part of it.
Looking forward to more partnerships and en-
deavors together.

- Atafeh Zanjani,
VP of Marketing, Floor Center/ Tile Depot Philippines

OUR SUPPORTERS
Although BCI Media Group has taken it on itself to fund the
development and start-up of the FairBuilding Network, we
believe that collaboration is the key to success. Hence we have
invited like-minded, socially progressive businesses to join us in
our quest to bring affordable buildings to the poor one project
at a time.
We are honored to have financial support of Yatai International
Corporation.
Designed for the discerning consumer in the new millennium,
OMNI electrical and lighting products conform to the global
concept of sustainable development. OMNI quality products
are manufactured under IS09002 systems. Production is
supervised by highly competent technical personnel equipped
with international know-how and steeped in strict quality control
mind set, turned out with the state of the art technology, they
are energy efficient and environment friendly yet very affordable.
OMNI product lines fullfill the safety and performance
requirements of the Philippine National Standards (PNS) which
conforms with the standards set by international Electro-
technical Commission (IEC). These products not only passed
the mandatory testing of the Bureau of Products Standards
(BPS) for PS and ICC Quality Mark Certification, but also bear
the stamp of approval/quality of the other countries (i.e. CE,
GS, TUV, etc.)
FAIRBUILDING NETWORK
For the past 60 years, Pacific Paint (BOYSEN) Philippines, Inc.
has been fortunate to receive help from many people to help
it grow from a humble repacker of solvents to one of the top
60 paint companies in the world. The company appreciates
how a little help can turn something small into something big,
and has engaged in numerous corporate social responsibility
(CSR) programs to give back and help paint a better future for
our country.
To this end, Boysen has several CSR programs in education,
including a scholarship program that has supported over a
hundred architectural students since 2005, funding for the
construction of school buildings and classrooms for thousands
of students, and a fresh coat of paint for many schools as well
as numerous socialized housing projects.
Paint is a simple yet powerful way to add color to our lives,
improve our surroundings aesthetically, and uplift our spirit.
Boysen aims to push the social transformational value of
paint even further by developing products that help address
environmental concerns such as air pollution and climate
change, and make its customers become part of the solutions
to these problems. For example Boysen KNOxOUTTM Air
Cleaning Paint is used by many socially responsible corporations
and individuals and has been deployed in a street art project
along EDSA, transforming Manilas busiest thoroughfare into
the worlds longest air cleaning art gallery.
Boysen transforms its customers into models of social
responsibility, in the process helping all its customers paint
a better future for the Philippines.
FAIRBUILDING NETWORK

INAUGURAL FAIRBUILDING AWARDS 2016

In November 2016 FairBuilding Network celebrated two years of successful collaboration
with social building and industry partners to advance the housing needs of the poor.
More than 120 representatives from the construction industry, the social housing sector
and national and local government attended the festive gala dinner as we celebrated the
contributions of our industry peers who helped us make the world a better place!

During 2016 FairBuilding was able to initiate 25 procurement transactions that resulted in
a total savings of 1.5 Million PHP, by way of significant discounts and in kind donations
of construction material, services and labour. FairBuilding Network duly recognised the
10 Gold Partners involved in the 25 transactions as social responsibility leaders in the
industry and awarded them the coveted FairBuilding Gold Partner status.

The Gold Partners are:

Boysen
Floor center
Philips
Ambassador International
Phinma Properties
Lexiar Handyman
Matimco
Ambassador
Jacinto Colorsteel
Floor Center
 FAIRBUILDING NETWORK

The highlight of the event was the keynote speech given by Commissioner Yolanda
Reyes, who encouraged the industry representatives to continue their efforts for those
living in inadequate housing conditions through engaging in the FairBuilding Network.

We will join hands in making a

difference in the lives of others through
Fair Building Network, PRC and UAP.
Our organisations and a lot of people live
in the service for others.
- Yolanda Reyes, Commissioner of the Professional Regulation Commission

The performance of the Virlanie Children Choir reminded everyone again of our
works mission. The girls and boys from Virlanies orphanages fascinated the
audience with their skill and a highly professional presentation. Their presence
made it tangible why a helping hand is so paramount.

At FairBuilding we believe that each and every company
in the construction industry has the ability and the moral
obligation to contribute to the fundamental rights of individuals
and communities to a decent home and adequate building
infrastructure. We believe social responsibility should be
viewed as a guiding principle for corporate activities alongside
the legitimate pursuit of commercial gain.
Our vision for FairBuilding is to become the CSR-go-to-
place for the construction industry in South East Asia. Similar
to Fairtrade we want to establish FBN as a ubiquitously-
recognised brand that embodies the social conscience of the
building and construction sector. We want to connect social
developers (NGOs), suppliers, builders and AEC professionals
with the purpose of creating a new marketplace that offers lower
prices for BoP construction projects and consequently enables
more families and communities to live in decent homes.
While our aim is to continue relationship building and to
facilitate the faster and cheaper implementation of social
projects by liaising between project promoters and the
industry, we ultimately work towards encouraging the social
and commercial organisations to interact independently from
us. We see the FairBuilding Network as an engine that we are
happy to prime, but ultimately, we want to see it operating
under its own steam.
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WHY GET INVOLVED TODAY?

FairBuilding Network services are free for all members of the building industry (suppliers,
contractors, subcontractors, architects and engineers)
Registering as a FairBuilding Partners takes only few minutes on our website
www.fairbuilding.org
As a partners you will be invited to one of our local Engagement Forums and be introduced to
the latest NGO construction projects on the market
Transactions with NGOs are rewarded with the FairBuilding Network Gold Partner status, a CSR
badge of honor which shows that you have genuine concern for disadvantaged communities and
a willingness to do well by doing good.

The FairBuilding Network is proudly suported by:

info@fairbuilding.org BCI Foundation Limited

www.fairbuilding.org