Case 2. R.E Construction: It's now or Never

I.

CASE SUMMARY

Engr. Romeo Estabillo decided to organize his own construction firm after passing civil enginee engineeri ring ng board board exam in year 1981.He 1981.He starte started d accepti accepting ng contrac contracts ts for constr constructi uction on of  residential houses then slowly his clients grow in number. !t first he has two assistants. "ne is #r. $ilvino $antiago whose tas% was as draftsman and to assist assist Engr. Estabillo Estabillo in supervisin supervising g wor%ers wor%ers at the various construction construction sites. sites. &he other  one is #r. Romulo #amaril who was assigned to coordinate purchasing boo%%eeping and other  related administrative activities. !t the third year of operations Engr. Estabillo was already directing operations in his newly constructed office inside his residential compound. 'y this time ( more female employees were hired to assist in the various tas%s performed in the office. 'y 199) Engr. Estabillo already has six full*time civil engineers two draftsmen ten administrative personnel one messenger and one security guard. 'y +une 199, he felt that business was continuously growing so he will have to secure four  additional civil engineers on a full time basis. He was hesitant in his decisions for he feels that he may that be able to perform his functions since he was directly supervising all operations. -ith these thoughts he pondered on how he will go about solving the problem.

II.

OBJECTIVES 

Help Engr. Estabillo decide whether he should secure four additional civil engineers on his firm.



$tate the ros / 0ons in hiring four additional civil engineers.

III. POINT OF VIEW 0ivil Engineers can carry out business with a wide variety of clients providing necessary services that ma%e cities run smoothly and %eep building upright. 'ut is hiring an additional four  civil engineers in a full*time basis worth the ris% to a growing construction firm li%e Engr. Romeo Estabillo has &he fact that he was directly supervising all operations in his firm2 it3ll be an additional pain in the nec% for him to add additional civil engineers. "n the other hand hiring them would be of  great help as for his continuously growing firm. 4r. &homas 0. $chlefeir a consultant and author of 0onstruction 0ontractors3 $urvival 5uide once 6uoted2 7-hile 3m not anti*growth growth has been associated with most of the 1 common element of contractor failure:. &his statement would simply imply the ris% you have to ta%e after ma%ing a simple decision with regards to your growing business. f you begin to ta%e larger ;obs as method of growth all of these ;obs are simply larger than those you3ve done

 before and there3s additional financial ris%. However if you ta%e traditional ;ob of the same size you3ve been doing you3re ta%ing wor% you commonly do and you3re comfortable with.
IV.

CASE ANALYSIS !dvantages in hiring Four Additional Civil Enin!!r" •

#ore clients can be accommodated by their firm

•

0an lessen the duties and responsibilities of his present six full*time civil

•

engineers ncreased in profit due to increased in clients

4isadvantages in hiring Four Additional Civil Enin!!r"

• • •

!dditional cost for the ) civil engineers3 salary. =arger scope of things to supervise as for Engr. Estabillo3s side. >inancial ris% 

f Engr. Estabillo3s firm is really earning profit well and is continuously growing it would be best for him to hire four additional civil engineers. !side from it will bring more clients to his firm it will also be an additional profit for his firm. &a%ing ris% is an essential in a growing  business. f he wants his business to expand and to be successful he should be strong enough to ta%e the ris%. -ith regards to his problem if he can still supervise all operations in his firm  proper organization of wor%s would be the best solution for it. f he can3t accommodate to supervise all operations why not hire someone to do it so Hiring a supervisor who is 6ualified enough to do that ;ob instead would be his best solution to that p roblem.