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ASSOCIATION OF CARRIERS AND EQUIPMENT LESSORS (ACEL), INC.EQUIPMENT GUIDE BOOK EDITION 24The 24th edition of the ACEL Equipment Guidebook has been updated to conform to the volatility of the changing market. Industry experts and association members have been consulted to come up with the best possib...

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ASSOCIATION OF CARRIERS AND EQUIPMENT LESSORS (ACEL), INC. EQUIPMENT GUIDE BOOK EDITION 24

PREFACE The 24th edition of the ACEL Equipment Guidebook has been updated to conform to the volatility of the changing market . Industry experts and association members have been consulted to come up with the best possible approach for the computation of rates that would approximate the lessor's operating cost and other incidentals. W e have factored in such variables like acquisition cost, depreciation, spare parts replacement costs, operators wages, full dollar fluctuations and interest rates, ect. As in our earlier edition we are using dollar rates for the computation and we have considered factors like equipment rating, testing and standardization cost. Another fomulais used for light and medium equipment. Basic reference to the average utilization per year for type of equipment have been incorporated and useful features such as economic life, tire and undercarriage life and salvage factor have been sourced from a reputable cost reference and included in the formulation for a more realistic approach in the estimation of recovery instrument. The rates listed are based on five (5) year old equipment and such rates are mere standards. This being the case actual rates may vary depending on worksite condition, age and availability of equipment to be used and the attachments needed. the rates of new and slightly used equipment shall equal the prevailing rates multiplied by the factors listed below: ASSOCIATION OF CARRIERS AND EQUIPMENT LESSORS (ACEL), INC. EQUIPMENT GUIDE BOOK EDITION 25

PREFACE The 24th edition of the ACEL Equipment Guidebook has been updated to conform to the volatility of the changing market . Industry experts and association members have been consulted to come up with the best possible approach for the computation of rates that would approximate the lessor's operating cost and other incidentals. W e have factored in such variables like acquisition cost, depreciation, spare parts replacement costs, operators wages, full dollar fluctuations and interest rates, ect. As in our earlier edition we are using dollar rates for the computation and we have considered factors like equipment rating, testing and standardization cost. Another fomulais used for light and medium equipment. Basic reference to the average utilization per year for type of equipment have been incorporated and useful features such as economic life, tire and undercarriage life and salvage factor have been sourced from a reputable cost reference and included in the formulation for a more realistic approach in the estimation of recovery instrument. The rates listed are based on five (5) year old equipment and such rates are mere standards. This being the case actual rates may vary depending on worksite condition, age and availability of equipment to be used and the attachments needed. the rates of new and slightly used equipment shall equal the prevailing rates multiplied by the factors listed below:

ACEL has delisted equipment which are twenty (20) years old or more, specifically with earthmoving equipment. However, these rates can be requested from the ACEL Secretariat. 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 (DOLE) Order No. 13, Series of 1998 on Guidelines Governing Occupational Safety and Health in the Construction Industry. All illustrations and trademarks of manufacturers have been reproduced by photo offset method from originals. "The Equipment Specification Guide Section" is intended for information purposes and should not be construed to depict contrary representation. Government agecies like the Department of Public W orks and Highways (DPWH) , National Irrigation Administration (NIA) , Department of Interior and Local Government (DILG) , etc.) have endorsed the Equipment Guidebook as basis for project cost estimates. ACEL acknowledge that the Guidebook is a collaboration effort of its members and the different suppliers and dealers of construction and allied equipment. Updating of the guidebook is a continuing process and new edition will be released as needed.

PROFILE 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 up 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: H. R. Lopez, Inc.; Monark International, Inc.; Heights Construction, Inc.; Alas Contruction, Inc.; Bormaheco, Inc.; Pacific Equipment Corporation; Dimson (Manila), Inc.; and Heavy equipment Service Co., Inc.

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 purcahse 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 generals membership. W ith 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 develop. 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 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 W orks 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 Eequipment Performance Handbook Edition 1 Vol. 1". The specifications contained in this handbook will help in equipment sourcing and identification since this is a conprehensive guide for those not too acknowlegeable 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 releaed. 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 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 Equipment. The ACEL equipment Guidebook Edition 23 was released in December 2006. This particular edition of the guidebook has been updated to include computations that would use dollar rates on operated dry and bare month. It also featured estimates on fuel consumptions. Endorsements for this issue come from government agecies like the DILG / DPWH / DTI / MMDA / MWSS NEA / NIA and PPA. In January 2009, Edition 24 of the ACEL Equuipment Guidebook was released to incorporate updates in the computation of rates. For this issue peso value of computed rates were also shown. This time endorsements were received from PPA / PCA / NPC / NIA / NEA / MMDA / DTI / DOTC / DPWH and DILG. To better improve the services to its members various initiatives were done, namely: 1) inquiries regarding retals were referred to member companies; 2) assistance were given to members in the purchase or disposal of parts and materials; 3) set-up of an agreed minimum operation of equipment rented on a bare rental basis of 200 hours per month; 4) enforced the general agreement that courtesy discounts of up to 10% be applied among members; 5) public certifications of equipment were issued to enable members to participate in bids; and 6) made representations with the US Bases in Clark and Subic for the accreditation of its members to enable these companies to participate in bids and to provide opportunity to bid for US Government Property Sales. From that time on, ACEL became the pulse and the voice of the industry. Throught the years, ACEL has been very successful in rpotecting 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 vigoruosly fro 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: 1) to develop norms in establishing career paths for operators and mechanics, 2) to develop programs for mechanics and operators in order to upgrade their knowledge, 3) to develop standards to equitably measure productivity; and 4) to develop programs to train future testors/assessor. 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: Wheel Loader Operator, Motor Grader Operator, Hydrolic Excavator (Backhoe) Operator, Tower Crane Operators, Rough-Terrain Crane Operator and Truck Mouted Crane Operator. The following year, three (3) Trade Skills Standards and Trade Test Standards were developed and these are the Hydrolic Mechanic, Heavy Equipment Electrician and Crawler Tractor (Bulldozer) Operator. Subsequent years saw the finalization of more test standards which are the Crawler Crane Operator, Rigger, 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 Corporation (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 intership 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 a part of continuing educationprogram, these technical seminars included the following: Failure Damage Analysis and W ear Control, Hydrolics: W hy does ir fail?, Proper tools and W ire Ropes Cable Management, Engines: Operating Cost Reduction, Trouble Shooting and Repowering Techniques, Filtration W ithin the System, W elding, the Truck Mouted and Rough Terrain Crane Operation, Safety Rigging W orks, Equipment Managers' Course, Trainers Training Program, Reducing Operating and Maintenance Cost of Heavy Equipment, Preventive Maintenance Management, among others. ACEL has also sponsored the Technology Forum for all PHILCONSTRUCT Exhibitions since it was started in 1995. the forum featured seminars on equipment management, construction safey, manpwer development, construction processes and technology. In recognition of ACEL's crucial role in manpower development, Technical Education and Skills Development Authority (TESDA) (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: motor grader operator (A&B class) , hydrolic excavator operator (A&B class) , wheel loader operator (one category) , tower crane operator (A&B class) , truck mouted crane operator (A&B class) , crawler crane operator (A&B class) , rigger (general - one category) , heavy equipment electrician (A&B class) , hydrolic mechanic (one category) , bulldozer operator (A&B class) , heavy equipment mechanic (3rd, 2nd, & 1st class) and road roller operator (one category) . A certificate of competency and a competency certification card are issued to all successful examinees. In December 2005, as a part of its continuing program fro the development and upgrading of competency of the nation's manpower resources, the Association of Carriers and Equipment Lessors, Inc. and the Technical Education and Skills Development Authority (TESDA) have signed the Memorandum of Agreement (MOA) that would give ACEL the sole responsibility of implementing a nationwide and unified system of occupational skills assessment and certification in the heavy equipment sub sector of the construction industry. To date, renewal of this ACEL accreditation continues to be given as a sign of the trust and confidence of TESDA in ACEL as an organization. In its role as an Accredited Organization (AO) , ACEL which has the technical capability and resouces to undertake the program will serve as TESDA's partner in strengthening industry-led assessment and certification that will result in developing world class manpower resources and, thus, help in increasing the middle manpower's employability both locally and internationally. In January 2006, the following Competency Standards, Competency Assessment Tools and Curriculum Standards were developed for heavy equipment sub sector: bulldozer, hydrolic excavator, motor grader, backhoe-loader, on-highway dump truck, off-highway dump truck (rigid) off-highway dump truck (articulated) , road roller, forklift, concrete pump, transit mixer, screed attachment, paver, gantry, stacker, heavy equipment servicing (mechanical) , crawler crane, truck mounted crane, rough terrain crane, tower crane, and rigging. In 2007-2008, ACEL continued to conduct various trainings on forklift operation, mobile crane operation and rigging, hydrolic excavator operation, construction safety and health courses for site officers and loss control management course. It also finalized the development of training modules for additional skills in the heavy equipment sector. A procedure manual for accreditation of assessment center and competency assessors was also finalized. In 2009, ACEL signed a Memorandum of Agreement (MOA) with TESDA to implement the Pangulong Gloria Scholarship Program which aimed to provide the training and scholarship to selected beneficiaries. TESDA will provide funding while ACEL will recruit and train nominees for the following skills: Hydrolic Excavator, Bulldozer, Forklift, W heel Loader, Rough Terrain Crane, Truck Mounted Crane, Road Roller and Rigging. ACEL is also tasked to conduct a competency assessment of each nominee prior to the issuance of a national certification. During the 50th Anniversary of the Philippine Constructors Association in November 1995, ACEL played host to the biggest equipment show ever staged in the country. Held at the Ortigas Complex, the event showcased the equipment fleet and capabilities of ACEL members. The latest models and brands of heavy equipment and support tools were exhibited during the three-day event. Highlights of the show were the holding of the Skills Olympics, the House Building Competition and the Equipment Show. 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. In May of 1996, the name of ACEL was changed to the Association of Carriers & Equipment Lessors, Inc. The word "Construction" was changed to "Carriers" to encompass all entities and services included in its scope of operations. ACEL has transcended borders and has establised chapters in Cebu and Davao in 1988 and 1997 respectively. As in the national chapter, focus has always been on manpower development and establishment of equitable rental rates. DOLE Order No. 13 which set the guidelines governing Occupational Health and Safety in the Construction Industry was a landmark policy that ensures the safety of construction workers in the worksite. ACEL as an accredited organization of TESDA formulated accreditation test for equipment inspectors and test standards to comply with the minimum standards for safety to be used in the workplace.

Another focus has been the establishment of closer ties with allied services and producers for sources of spare parts, machines and other needed supplies a...