Startup company held ‘constructive’ talks with suppliers, contractors, clients
REVOLUTION Precrafted Philippines, Inc. said it is working on settling its obligations with suppliers, contractors, and clients “after a series of constructive discussions in the last few months.”
The startup company, along with subsidiaries Resurgent Corp. and Renegade Branding Concepts, said it has also reached “amicable resolutions” even with those who have filed a complaint with the National Bureau of Investigation.
“Revolution [Precrafted] previously committed to honor all legitimate contractual obligations from the very beginning, and this is what we have done and continue to do as we work on the remaining accounts,” Revolution Precrafted Chief Executive Officer Jose Roberto “Robbie” R. Antonio said in a statement.
Several suppliers and contractors filed complaints against Revolution Precrafted after finding issues with their contracts for real estate projects, where they said they had to pay for 10% of the contract value to be tagged as preferred suppliers.
The issue led to the resignation of Mr. Antonio from his posts as co-managing director and member of the board of directors of Century Properties Group, Inc. in February to allow him to resolve the complaints against Revolution Precrafted and its subsidiaries.
Revolution Precrafted said most complaints were “civil and contractual in nature.”
The prefabricated home construction company previously pointed to the coronavirus disease 2019 (COVID-19) pandemic for having “activated force majeure stipulations” in its deals. The clauses free parties from fulfilling obligations should unforeseen events, which would render them unable to do their responsibilities as stated, occur.
“It has been challenging with the pandemic, but we were able to resolve the issues together and we are pleased with the positive outcome,” Clarence de Guzman, who partnered with Revolution Precrafted as a preferred supplier, said.
For deals wherein it was the supplier of homes, Revolution Precrafted said it entered two settlement agreements with two developers to allow them to hire different contractors to continue with the projects.
Mr. Antonio’s embattled startup also completed 45 homes in another project and the developer is now looking for other contractors to complete the remaining homes.
“As to the few remaining claimants, the company intends to fully comply with its obligations, subject to such obligations being legitimate, fair, and in adherence to the terms of the original contract that the counterparties signed with Revolution [Precrafted],” the company said.
It is advising homebuyers to contact their property developers “as per Revolution’s agreement with partner developers.”
“The company wants to point out that due to the economic downturn, certain third parties owe Revolution [Precrafted] for homes it has delivered, and Revolution [Precrafted] will exert its rights to collect what it is owed as well,” the company said.
Revolution Precrafted said it is undergoing “a business review,” with its operations dependent on the recovery of the market it will serve.
“Our intention is to have a constructive, positive way forward for both the company and its stakeholders,” Mr. Antonio said. — Keren Concepcion G. Valmonte