Builk.com plans Bt90-bn footprint in construction industry by 2015

Builk Asia, a start-up software company that runs Builk.com, a social-media site for the construction industry, plans to become the marketplace for Bt45 billion worth of projects by next year and to double that figure by 2015.

Builk.com has welcomed a Bt12.5-million investment by Project Planning Services (PPS), an engineering consultancy and architecture firm, of which Bt500,000 will be used to increase Builk Asia’s registered capital.

Builk Asia principal and evangelist Patai Padungtin said the investment would also be put towards development of products and services. The firm plans to develop and launch a new application for construction consultants and construction-project owners to give PPS customers a tool to help them increase competitive advantage and productivity. 

“It is an application that runs on the iOS platform that can be used via smart phones and tablets,” Patai said. “It is also a Web-based application. 

“Currently, we have an app for contractors that is based on the Android platform. That is just a pilot project. But now, we will develop an app on the iOS platform. It is expected to be launched within the next three months.” 

Patai said Builk.com would be transformed from a free site supported by advertising to a transaction-based, pay-per-action (PPA) business model. 

Currently, 1,900 companies are registered members of Builk.com, comprising 1,400 contractors and 500 construction suppliers. However, there are a lot more suppliers that use the service without registration. Patai said that on average, one contractor normally dealt with 150 suppliers. The size of projects at Builk.com varies considerably, from just Bt5,000 to as much as Bt800 million. 

“Our mission is to encourage suppliers who use the services of Builk.com without registering to become members. Currently we offer services free of charge, but by early next year we will launch Builk.com 3.0, which will have more features and functions to serve not only contractors but consultants and project owners. We will introduce features to help suppliers and contractors contact [one another] and interact, such as sending RFQs, or requests for quotations. These enhanced features require suppliers who benefit from the service to pay for it,” Patai said.

Under the PPA model, suppliers who have purchase orders for more than 1,000 transactions will be charged. Patai said Builk.com would introduce e-marketing and payment services later. 

After the launch of the new services early next year, Builk.com aims for the total value of construction projects interacting over the site to reach Bt45 billion, which is around 10 per cent of the total value of the private construction segment (excluding construction under government projects). Then it aims to double the value of construction projects interacting over Builk.com to Bt90 billion by 2015.

Patai said that after negotiating with several investors, both Thai and foreign venture capitals, he finally decided to receive investment from PPS, a listed company in the Market for Alternative Investment (MAI) and a top construction consultancy and engineering company. PPS has the same passion as Builk.com for increasing the standard of Thailand’s construction industry and for assisting small and medium-sized enterprises. 

Apart from its plan to expand its business in Thailand, Builk.com also plans to get into the Australian market this year. It already has a presence in Indonesia through its partner Builk Indonesia Company. 

Builk.com 3.0 is equipped with social-network-enabled features. That and other key features will be available in Thai, Indonesian and English. 

PPS chief financial officer Phongthon Tharachai said Builk.com’s products and services as well as its business model were very interesting, and that was why his firm decided to invest in it. 

“Importantly, we have the same passion to improve the Thai construction industry with technologies to enable all parties in the ecosystem to improve competitiveness and business performance,” he said.

He added that PPS had tried to develop a system like Builk.com’s for internal use by hiring local software companies, but those firms did not understand the construction industry, so the development failed. 

“We tried three times, with three software firms. As a result, now we have three different databases of clients. By investing in Builk Asia, which operates Builk.com, we have developer teams who understand the construction business to develop software and applications for us and for our clients. 

“We also have invested in a start-up firm that aims to go regional and has not limited itself to the local market. We will support them with our expertise and know-how in the construction business as well as financial support,” Phongthon said.