Housing program contractors back out due to low profit

In addition to contractors backing out, Castro identified other causes of delay, permitting, due diligence on site suitability and land ownership, and the lengthy construction period for vertical housing.

Some contractors have withdrawn from the administration's Pambansang Pabahay para sa Pilipno Housing (4PH) program due to low profit margins, causing delays in the construction of houses for Filipinos, Malacañang revealed.

"Maliit po kasi ang presyo na ibibigay natin sa taong bayan para i-avail ito kaya ang ibang contractors po ay hindi po sumasang-ayon na makisali or sumama sa gantong klaseng proyekto (The price we are offering the public to avail of this is low, so some contractors do not agree to join or take part in this kind of project)," Communications Undersecretary Claire Castro said in a press briefing on Monday, March 31.

In addition to contractors backing out, Castro identified other causes of delay, permitting, due diligence on site suitability and land ownership, and the lengthy construction period for vertical housing.

"So ito po ay mga issues na hindi po ninanais ng administrasyon (These are issues the government did not want to happen)," she said.

Despite these challenges, Castro, citing information from the Department of Human Settlements and Urban Development (DHSUD), reported progress in the implementation of the 4PH program.

Based on the DHSUD data cited by Castro, there are currently 90 ongoing projects nationwide in various stages of development and construction.

"Ang ilan po dito ay nabuo na po, nagawa na po, at ito yung magje-generate ng total of 259,365 housing units (Some of these are already completed and is expected to generate 259,365 housing units)," she said.

Additionally, 82 projects are in the pre-production stage, with 436 proposals still pending approval.

At least 8,000 housing units are scheduled for turnover this year.

President Marcos has previously acknowledged the ambitious nature of the 4PH target of 1 million housing units per year to address the backlog.

"We are aiming for 1 million homes. One million low-cost and socialized homes a year. It is an ambitious number, but we will try very, very hard," he said in November 2022. 

Source: Manila Bulletin

What is the Doctrine of Laches?

In the realm of Philippine law, the doctrine of laches plays a pivotal role in ensuring fairness and equity. It is a legal principle that prevents a person from asserting a claim if they have delayed unreasonably in doing so, to the prejudice of another party. This doctrine is rooted in the idea that "equity aids the vigilant, not those who slumber on their rights."

Defining the Doctrine of Laches

Laches is not merely about the passage of time; it concerns the inequity of enforcing a right after an unreasonable and unexplained delay. While statutes of limitation provide a fixed period within which legal action must be initiated, the doctrine of laches focuses on the fairness of allowing a claim to proceed despite the delay.

Elements of Laches

To invoke the doctrine of laches in the Philippine legal context, the following elements must typically be established:

1. Neglect or Delay: The party asserting the claim failed to act within a reasonable time to enforce their right.

2. Knowledge of the Right: The claimant was aware, or should have been aware, of their right to take action.

3. Prejudice to the Opposing Party: The delay caused harm, disadvantage, or prejudice to the other party.

4. Inequity of Allowing the Claim: Enforcing the claim after such a delay would be unjust or unfair.

Laches vs. Prescription

It is important to distinguish laches from prescription, as they are separate legal concepts:

• Prescription is a statutory concept that sets a fixed time limit for filing legal actions. Once the prescribed period lapses, the right to bring the action is extinguished, regardless of the circumstances.

• Laches, on the other hand, is an equitable principle that can be invoked even if the statutory period has not yet expired, provided the delay in asserting the claim is deemed unreasonable and prejudicial.

Application in Philippine Jurisprudence

The Philippine Supreme Court has repeatedly upheld the doctrine of laches in various cases, particularly in disputes involving property, contracts, and inheritance. For instance:

• In property disputes, a party who fails to take timely action to reclaim land or assert ownership rights may lose their claim if the opposing party has occupied or improved the property in good faith over a significant period.

• In inheritance cases, heirs who delay challenging the distribution of an estate may be barred from asserting their claims if the delay causes undue hardship to other parties.

Example Case

Consider a scenario where a person’s ancestral land is occupied by a relative. Despite being aware of the situation, the owner takes no action for 30 years. During this time, the relative builds a home, plants crops, and resides on the land in good faith. If the owner suddenly files a case to reclaim the land, the court may dismiss the claim on the grounds of laches, as the delay has caused significant prejudice to the relative.

Importance of Vigilance

The doctrine of laches underscores the importance of vigilance in protecting one’s rights. It serves as a reminder that the law does not favor those who neglect their responsibilities or delay legal action to the detriment of others.

Conclusion

In the Philippine legal context, the doctrine of laches is a safeguard against stale claims and inequitable outcomes. It promotes fairness by balancing the rights of claimants with the interests of those who may be unjustly affected by unreasonable delays. To avoid the pitfalls of laches, individuals must be proactive in asserting their rights and taking timely legal action when necessary.

Source: ZRE

Breaking down life insurance

Ever been approached by an insurance agent who offered you insurance that you never really understood? I'm sure it happens a lot. More often than not, we get insurance because of the following reasons: the insurance agent is a good friend, and we didn't want to turn him down, or we thought it was an investment. So let's try to give the low down on some basic concepts about life insurance.

There are two major types of life insurance: ordinary life (OL) and variable unit linked (VUL).

Ordinary life insurance. There are two types of insurance products that are classified under OL: traditional life insurance and endowment.

For traditional life insurance, living benefits come in the form of cash surrender values and/or dividends. Cash surrender value is the monetary amount that you would get in case you surrender your life insurance before the policy's maturity. Usually cash values start accumulating by the third or fourth year.

Thus, it will take a while before the cash values grow bigger than the total premium you are paying for. Policy owners can also take loans from cash values of their OL policies. Dividends, meanwhile, are the nonguaranteed cash benefits given to policyholders depending on the insurance company's performance.

The cheapest type of traditional life insurance is a term insurance where one is covered for a certain period of time or up to a certain age only. Term insurance has no cash values nor is it participating in any dividends distribution. However, term insurance can be converted to a traditional life insurance.

Aside from the traditional life insurance, endowments are also classified as an OL product. Endowments are different from traditional life insurance in that after paying premiums, you can periodically receive cash benefits after maturity. It is a good tool for forced savings. Returns are guaranteed but interests in the returns are most often lower than inflation.

OL products also have nonforfeiture options in case you'd like to surrender your policy before maturity and different settlement options for claims.

Variable unit linked. VUL insurance products are probably the most famous insurance product these days. A VUL is an insurance product with an investment component. It is like a term insurance and a mutual fund combined into just one product. Similar to OL, there is a fixed minimum death benefit or face amount. However, since VULs have an investment component, the death benefit can grow as your investment grows.

Unlike OL products, VULs don't have cash surrender values nor dividends. In VULs, a portion of your premium buys you units which have equivalent value called the Net Asset Value per Unit (Navpu). The Navpu changes on a daily basis, thus if you multiply your units by the Navpu, you will get the actual value of your investment or the account value.

A policyholder can regularly add to their investments to their VUL on top of the premium they are paying. These additional investments are called top-ups.

Usually, there are three types of funds where you can invest in: equities fund, balanced fund or bond fund.

Since these are investments, the returns you can get are not guaranteed, but you can potentially earn from 4 percent to 15 percent annually from your investment. Policy owners can also withdraw a portion of their investments but can incur withdrawal charges usually within the first five to 10 years depending on the product.

Note though that even if some VULs are considered limited pay, cost of insurance will still be deducted from your account values. It is advised to make regular top-ups so you won't deplete your account values. Once the account value becomes zero, the policy lapses.

For both OL and VUL, one can also have additional coverage that is called riders. Every insurance product can have different riders. These riders can come in the form of additional insurance coverage for death via accidents and disability due to accident, waiver of premiums in case of disability, critical illness coverage and a lot more.

Having insurance is an important aspect of personal finance and understanding the different types of life insurance products is just one step in picking the right one for you. In case you already have one, it might be a good idea to review its features and see what type of insurance you got. In case you're looking for one, remember that the key to picking the best insurance product for you is making sure it addresses your needs and is aligned to your goals.

Source: Manila Times