Financial Adviser: 5 Business Lessons Everyone Can Learn from the 'Master Mall Builder,' Danilo Tamayo, Founder and CEO of DDT Konstract
In the realm of construction, where dreams take shape and structures rise, there is a someone whose name has become a testament to resilience, determination, and the power of craftsmanship. From humble beginnings to becoming a leading figure in the construction industry, Danilo D. Tamayo’s journey has become an inspiration to aspiring entrepreneurs and professionals.
Tamayo lost his job as a construction manager during the height of the 1997 financial crisis, when the Japanese company he was working for folded up. The economic downturn left countless individuals unemployed, and Tamayo found himself facing the same fate. Despite the challenging circumstances, he refused to let adversity define his future and he embarked on a relentless job search. However, the construction industry was grappling with the aftermath of the crisis, making it exceedingly difficult for him to secure employment. Undeterred, he hatched a bold plan: to establish his own construction company using his remaining P50,000 savings.
Tamayo's entrepreneurial spirit ignited as he ventured into subcontracting work for Ayala Land projects. The company initially focused on renovation projects, such as ceiling upgrades, guardhouse construction, and basketball court installations.
Through values such as attention to detail and commitment to delivering exceptional results, Tamayo's craftsmanship captured the attention of the SM tycoon Hans Sy.
Recognizing Tamayo's potential, Sy extended an invitation for him to bid for renovation of Taal Vista Hotel. The opportunity proved to be a pivotal moment in the entrepreneur’s career.
Soon after, Tamayo secured his first significant break: a P530 million contract to construct SM Molino. The successful completion of this project propelled Tamayo's company into the limelight and solidified his position as a trusted SM contractor.
The immense success of the SM Molino project served as a catalyst for Tamayo's company, DDT Konstract, to flourish.
As one SM mall project led to another, Tamayo's construction company garnered a reputation for delivering exceptional results, earning them numerous contracts for subsequent SM malls, as well as the malls of Ayala, Robinsons, and Megaworld.
Tamayo’s company, DDT Konstract, eventually achieved a quadruple A rating and helped place it in the elite company of other leading construction giants in the Philippines, including DMCI, EEI, and Megawide.
Building upon his successes in the construction industry, Tamayo also diversified into real estate that led to the birth of Dataland, a property development company that would complement DDT Konstract's construction expertise.
How did Tamayo's resilience enable him to overcome the challenges to become one of the largest construction companies in the country today? What lessons can we draw from Tamayo's dedication to excellence that earned him the trust and admiration of industry giants?
Here are the five business lessons every entrepreneur can learn from Danilo Tamayo, founder and CEO of DDT Konstract:
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1| Know how to persevere and be resilient
Entrepreneurship is a marathon, not a sprint. The ability to persevere through tough times is essential for long-term success. Resilience enables individuals to navigate through setbacks, failures, and obstacles that inevitably arise. It allows entrepreneurs to bounce back from adversity, learn from their experiences, and find alternative solutions to pressing problems.
Tamayo faced the challenge of losing his job in the construction industry. Despite this setback, he refused to be deterred and sought opportunities to rebuild his career. He made the bold decision to start his own small construction company using his remaining savings.
“Nag-start kami during the crisis,” Tamayo says. “Both me and my wife were jobless, because our company folded up so at that time, kailangan naming kumayod. We tried to apply for jobs. I was vice president sa fold-up na company, so nag-apply akong vice president, pero wala. Binaba ako sa project manager, operations manager, project foreman—wala lahat. That was very hard during the Asian crisis.
“So yan yun na wala kang makuhang trabaho. My wife, nauna syang nakakuha ng trabaho samin, pero ako kasi operation man; magaling akong magpatrabaho sa construction. So I thought of putting up a labor contracting company. Labor lang because that time we only had P50,000 savings.
“Nag-register kami nung April 8, 1998, exactly 25 years now. We were able to register pero walang pera. We started with this small room with three tables. Dalawa yung table ko—isa para sa estimate, isang table ko as manager. The problem was, nung nakakuha na ng first project, wala kaming pang-finance.
“Sabi ko dun sa asawa ako, nabalitaan ko yung nanay nya nakapagbenta ng rights dun sa half hectare na lupa nila, mga P500,000. Sabi ko, kunin mo yung P200,000, hiramin mo, pandagdag natin. Hanggang ngayon, yun ang utang na loob ko sa kanila kasi I was able to pay that after five years.
“It was really difficult. Hindi pa rin nakayanan. My wife, si Cynthia, naman nakakuha ng job, so sabi ko stay there para naman may pang-kain tayo, pang-tuition. After six months, wala pa ring project. Pumayat ako ng 10 pounds.
“Out of the P200,000 na inutang ko, bumili ako ng Elf truck. I designed the logo, for one hour only. Nilagay ko dun sa truck namin ‘Contact us.’ Tapos sinabi ko dun sa driver paikutin mo sa lahat ng Ayala projects.
“After that, tinawagan ako ng isang EVP ng Ayala, sabi nya, ‘Sayo ba to DDT?’ Sabi ko, ‘Opo.’ Sabi nya, ‘Talaga nangongontrata ka na? Bakit may project ka na?’ Sabi ko, ‘Meron, banda dyan,’ pero sa totoo wala.’ Sabi nya, ‘Halika, punta ka nga rito.’ Binigyan nya ako ng first project: aayusin yung nasisira na ceiling for P80,000.
“So ginawa ko agad yun, ang bilis. Two weeks ko lang ginawa. Bilib yung Ayala. Alam mo nangyari? Hindi ako binayaran kasi hindi pala ko accredited. But eventually, I was paid. That was my jumping point dun sa mga Ayala projects. Yung mga ginawa ko, mga maliliit lang, so ayun, gumapang na yan, until binigyan na ako ng project na gumawa ng bakod, pagkatapos guard house, basketball court, mga cistern, very lucrative.
“But my problem was, wala kaming finance, di ba? Ayaw pa kami pautangin ng bangko. Why? Wala pa kaming track record. Alam mo ginawa ko? Three years kami nagpa-five-six. Ganun kaganda yung trabaho. After one week, pagkatapos ko makakolekta, balik ko agad dun sa five-six. Madaming yumaman sa ‘min.
For three years, hindi kami nag-sweldo. Wala kami kinukuha sa company. Ang kukunin lang namin, gasolina ng sasakyan, pampa-kuryente, tubig, pagkain. That’s how hard it was to start a company na from zero talaga. Ako kasi magaling ako sa operations, sa construction, quality, hindi ako nade-delay saka walang disgrasya palagi.
“Sumikat ako sa Ayala. After that, na-monopolize ko na lahat ng project ng Ayala. Yung mga finishing nila na maliliit, small-scale. Lahat ng mga clubhouse nila, mga basketball court, sa amin na.”
2| Know how to deliver quality and efficient work
In today's competitive marketplace, delivering superior service and products sets you apart from competitors. When customers experience exceptional value and quality, they are more likely to choose your business over others.
Consistently delivering good service and high-quality products builds a strong brand reputation. Satisfied customers are inclined to refer your business to their friends, family, and colleagues. Word-of-mouth recommendations are powerful and can result in new business opportunities without significant marketing efforts.
Due to the high quality of his work, Tamayo earned the reputation of being an Ayala contractor. His reputation for delivering exceptional projects led to him being considered for the Taal Vista Hotel project. Tamayo's ability to deliver the project within the allocated budget and surpassing expectations caught the attention and admiration of Hans Sy, who gave him his biggest breakthrough opportunity—the construction of SM Molino.
“Eto ngayon, dahil Ayala contractor ako, kasi magandang quality yung gawa ko, pinatawag ako ni Mr. Hans Sy. Pina-bid nila yung Taal Vista hotel. Dalawa ang set ng bidders—yung malalaki like EEI, DMCI, kami maliliit, DDT, at yung mga di kilala lahat.
“Nung nag-nenegotiate na si DMCI, katabi ko si Jorge Consunji at yung assistant nya na EVP nya, nag-aantay sila kay Mr. Sy for negotiation. Tapos nag-uusap yung dalawa, sabi nila, ‘O, magkano yung ipapatawad natin?” Di nila alam nandun ako kasi di nila ako kilala eh.
“Napagusapan nila kung magkano yung idi-discount nila at sabi nila nasa P52 million, then narinig ko, ginawa kong P49 million. Hindi nila alam na ako yung kalaban nila, so I got the project. When we estimated the project, it was the height of may Iraq War. Mataas lahat ng presyo—semento, lahat ng construction materials. Pero nung ini-award na sa ‘min, tumigil yung war. Bumagsak ang mga presyo, materyales pa lang kumita na kami.
“Eto ngayon si Nanang, mother ni Mr. Sy, may donations sya sa simbahan na three-storey building. Ti-nap ako ni Mr. Sy. Sabi nya, ‘Gawin mo ito for P12 million. Gawin mo yan kasi gusto ko yung trabaho mo sa Taal Vista.’ Yung na-design ko na, based sa plano natapos ko ng P11 million yung budget, pero hindi ko na siningil yung P1 million.
“Natuwa yang si Nanang. ‘Mabait yung contractor natin, maganda pa yung trabaho nya. Mabilis pa,’ sabi nya. Pinarating sa akin, ‘Bigyan mo sya ng mall,’ sinabi nya kay Mr. Sy.
“So sabi ni Mr. Sy, ‘O sige, gawin mo yung SM Molino.’ Binigay sa akin yung project, so from P49 million contract, naging P530 million na. Pero wala akong pera. Wala akong equipment. Wala akong form of system, power cranes, wala lahat. Sabi ko kay Boss Hans, ‘Boss wala akong pera.’ Sabi nya, ‘O sige, sige, bigyan kita ng linya.’
“Yung employee pa ako for the past 20 years, madami akong na-develop na friendship sa mga suppliers kasi vice president dati. I was a decision-maker, kaya may network ako na mga suppliers. Ginawa ko lahat ng equipment ni rent-to-own. Natapos ko yung SM Molino. Successful, maganda. Ang baho-baho ko nun. Ako mismo nag fo-foreman. Ako nag pa-project engineer. Yun ang pinakamagandang mall at that time, sabi ni Mr. Sy.
“Nung natapos ko na yun, tuloy-tuloy na. SM Muntinlupa, Las Pinas, San Pablo, San Mateo, Consolacion Cebu, South Road Properties, Mall of Asia, lahat ng Savemore. In 12 years, it was phenomenal. SM made us.”
3| Know how to hire the best talent to take the business to the next level
Building a team with the best talents is vital for achieving sustainable success. By assembling a talented workforce, you gain access to a wide range of expertise, enhance productivity, foster innovation, promote collaboration, and improve employee engagement.
Investing in top talent not only strengthens your business internally but also enhances your reputation, customer satisfaction, and overall growth in the marketplace.
Tamayo hired the best talents to elevate his business to the next level through a strategic approach. His approach to hiring the best talent involved a combination of investing in capable individuals, and fostering a culture of care and support.
By valuing both expertise and character, Tamayo successfully attracted top talents who shared his vision and contributed to the growth and success of his business.
“Noong Taal Vista, nagka-TB (tuberculosis) ako kasi tinutukan ko e. Hotel kasi yan; daming varnish sa loob. You have to close the windows para hindi masira yung varnish, so pinapasok ko yun. Ako mismo nag-asikaso to make it perfect. Because of that nagka-TB ako pero nagamot din after few months.
“Tapos in-award yung Molino, I decided to get my assistant. I hired the best engineer in the Philippines at that time—yung vice president ng competitor ko.
“Sabi ko sa wife ko, si Cynthia, nung nagkasakit ako, ‘instead of me dying early because of the first mall na na-experience ko, yung sweldo ko itabi mo na, ibigay na natin sa capable assistant ko. ‘Yung na-hire ko na engineer, kausap ko sya for six months every weekend. Nung nakuha ko sya, nung nag-offer sya, hindi ko na nga tinawaran. ‘O sige pare, onboard ka na.’ So bumilib yung industry and we got invitations to bid left and right na.
“When Ayala land gave me those design bid projects, I knew I had to get a lot of talents already. Kumuha ako ng mga vice presidents. Ang lakas ng loob ko na kumuha. Sinabi nga sakin ni Jeff Lim ng SM Prime, ‘Hindi ka naman siguro matalino, pero magaling ka kasi kumuha ng talent.’ That was the clincher: how to get the best talent sa industry. I pay a lot, ang bilis.
“I think it’s more than the money. It’s the heart, because people will look at you. May puso ka ba? Kasi kung wala kang puso at puro pera lang ang pag-uusapan, balewala lahat yan. Yun ang nagustuhan nila. Kung may decision sila, shoot. I always consider myself the least among them kasi mas magaling naman sila sa ‘kin. I give them the freedom to decide and I take care of them a lot. It’s taking care of what they need.
“Yung wala sila makikita sila sayo na yabang. I am the role-model. I don’t have any vices. Nakikita nila. I think that’s what makes our team very strong, kasi meron sila tinitingnan na leader na may puso. I think leadership is humility. Kung mayabang ka, hindi ka pwedeng leader.”
4| Know how to excel in both strategy and execution
One of the key reasons why excelling in business is crucial is the heightened level of competition. In today's interconnected global marketplace, businesses face numerous challenges and rivals vying for the same customers, resources, and market share.
Differentiating yourself from the competition and standing out in the crowd requires a commitment to excellence in every aspect of your operations. Excellence breeds credibility and trust.
When you consistently deliver high-quality products or services, meet customer expectations, and exceed industry standards, you build a solid reputation for reliability and dependability.
Tamayo's excellence in business can be attributed to his continuous learning, diverse expertise, adherence to high standards, prioritization of relationships, and strategic decision-making. By expanding his knowledge, embracing Japanese principles of excellence and prioritizing employee welfare, he achieved success and gained trust and recognition from industry leaders, enabling him to establish a lasting legacy in the construction industry.
“Kasi nag-career path ako eh. Horizontal, pupunta ako sa vertical, tapos punta ako sa foundation. Yun ang sinunod ko. So ako palipat-lipat, I have to know foundation, I have to know building, I have to know roads and bridges, I have to know design. I have to know construction management. Kinareer ko lahat yun when I was an employee. Kaya nahasa ako sa whole aspect of construction—from management consultant, to design to documentation.
“I worked with a Japanese company called Kumagai Gumi, which excelled in everything—time, delivery, safety and quality. Dun ako na train. Ako ang gumawa ng Toyota manufacturing plant. Pinadala ako sa Thailand.
“I was trained by the Japanese in terms of specific delivery items, quality, time and safety. Of course yung pera kasi madali nang pag-usapan eh. Ang problema sa Negosyo, kung inuuna mo pera, at pinabayaan mo ito, babagsak kumpanya mo. Hindi ka lalaki. You do these things, money will follow. That’s my basic principle. That’s why we always excel.
“I never delay workers’ salaries. Tapos dun sa project, kung matapos nyo ‘yan, meron kayong additional one week, mga ganun. And sila, covered lahat ng statutories. Hindi kagaya ng iba na walang SSS, walang Pag-Ibig. Kompleto sila. Ang gusto nila rito is continuity. Kalat na sa industry na pag kinulang sila ng tuition fee, pupunta sa akin. I mean buong DDTKI. Kaya ang saya ko, sa dami nila napapag-aral ko. Yun yung legacy na gusto ko. Kaya maski papaano, kayod.
“Yung first bid ko with Ayala Land, nagpalugi ako. Dalawang generator house yun. Nalugi ako ng 10 percent purposely at that time. Lugi talaga. Abono. Pero yung kontrata, mga P2 million. Magkano yun, P200,000. Malaki yun at that time.
“Ginawa ko yun to make my product known by Ayala, para makita nila. Alam mo ano ginawa ko dun? First time ng Ayala makakita ng formwork system and then, sunod-sunod na yung binigay until ma-monopolize ko yung mga projects kasi magaling ako makipag-usap sa mga engineers tsaka sa foreman.
“There’s also the art of talking to the customer kasi it’s different. To get their attention and to make them agree with you is an art. Tuwang-tuwa yung mga may-ari if they know that you are talking from detail, kasi naintindihan ko sila. And yung parang you always put yourself lower than them. Yung maski alam mo na mas magaling ka, don’t do that. Sabi nga nila, ‘What is there to lose if you assume yourself to be the least even if you know that you are the best.’”
5| Know how to emulate role models and make it your own
Emulating successful individuals can provide you with a source of inspiration and motivation. By witnessing their accomplishments and realizing that they started from a similar position as you, it can ignite a sense of possibility and drive within you. Their success becomes a tangible example that fuels your determination to achieve your own goals.
Role models often serve as a benchmark for excellence. When you emulate their qualities and achievements, you raise your own standards and strive to achieve similar levels of success. This continuous pursuit of improvement pushes you to perform at your best and unlock your full potential.
Tamayo emulated construction magnate David Consunji by aspiring to be like him and adopting certain aspects of his success. He admired Consunji's achievements and sought to replicate them in his own business endeavors.
Tamayo’s admiration of Consunji pushed him to set higher standards for himself and his company. By striving to be like Consunji, Tamayo aimed to achieve similar levels of success and excellence. This constant pursuit of improvement helped Tamayo elevate his skills, reputation, and overall performance in the construction industry.
“Yung nag-umpisa ako, tinanong ako, ‘What would you like to be?’ Sabi ko, ‘Simple. I want to be like DMCI. Nung naka-bid ko si DMCI, my first major bid in Taal Vista, maliit lang kami noon, pero yung nag-bid ulit kami years later sa building na parehas na kami ng category, quadruple, triple A na. That’s it. Sabi ko sa CFO ko, DMCI na tayo.
“Ang goal ko noon ay maging katulad ni David Consunji. Hindi na nawala sa akin yun. Even the first car, kasi yung transit mixer truck nya Volvo. Yung sasakyan ni DM Consunji is Volvo. Ang first SUV ko is Volvo. Idol ko sya. (laughs). Pati pagsisigaw sa site, ginaya ko sya.
“Kasi in-interview ko yung mga tao nya. Grabe kung pano sya nagsimula. Although si Consunji, Public Works Secretary yan dati. Lahat ng officers ng DMCI kaibigan ko lahat, dahil idol ko siya eh. Ini-interview ko sila, ‘Ano pong ginagawa niyo? Pare, siya na gumagawa ng payroll mismo.’
“Sa Ayala kasi, siya ang contractor ng Tower One. Siya ang contractor ng Twin Tower. DMCI lahat yan. Kaya sabi ko, ‘Grabe etong si David Consunji.’ I was infatuated with him.
“Tapos sa Philippines Contractors Association (PCA), kung saan nagpupunta si David Consunji, doon pupunta. And si FF Cruz. Those were the two icons. Kung nasaan sila, uupo ako. Ako lang yung hindi nila kakilala. Gano’n ako ka infatuated kay David Consunji. Alam ni Sid Consunji ito. Inistorya ko ito sa kaniya eh. Kaya lang eh, tatayo yung isa, si FF Cruz. Eh senior, siguradong susunod ito pupunta sa toilet. Susunod din ako.
“They are both my idols. Labs na labs ko yan si DM (Consunji). Kaya nung namatay siya, parang palagi ko sya naalala.
“When I set-up the company, gusto ko maging pareho kay DMCI, Even the technology. In-improve ko lang si DMCI, kasi yung tower crane, parehas kami ng ginagamit. Yung form work system, ginandahan ko pa yung sakin. Tapos yung lego na building, yung pre-cast technology, hindi naniniwala si Mr. Consunji. Nagtayo ako.
“Yung pre-cast, in essence, dapat mas mahal. Pero in the end, mas mura. You know why? Kung ico-cost mo yung mga hollow block sa labas, mas mura, pero bukol-bukol. Pinabakbak mo, inulit mo, o kaya pinalatidahan mo ng makapal, o kaya minasilyahan mo ng mas makapal na masilya, mas mahal lalabas nun.
“Samantala yung precast, wala ng palitada. Wala pang scaffold sa labas. Kung i-market yan, kung hollow block yan, hindi maganda tingnan. Samantala yung pre-cast, nandun na, ikakabit mo na lang yung bintana, sa marketing, mas maganda yun.”
Henry Ong, RFP, is an entrepreneur, financial planning advocate and business advisor. Email Henry for business advice hong@financialadviser.ph or follow him on Twitter @henryong888
