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How hard can build and sell be?

Once upon a time, Mrs. F wanted to start a build-and-sell business. It was the opportune time since she inherited a decent-sized property perfect for townhouses.


Mrs. F thought she could do it by himself–without a contractor–to maximize profits. Based on her calculations, she could double her profits by doing it herself. She was a hands-on person who was meticulous with details–things she picked up from the corporate world. "How hard can it be?" she thought.


Months passed, and the townhouses were almost done. During Mrs. F's routine inspection, she discovered diagonal cracks emanating from the corner of a window. So, she called her engineer buddy, Jun, to check it out.


Upon seeing the cracks, Jun scratched his head and told her the diagonal cracks signified structural issues. Eager to find out what went wrong, Jun investigated further.


He went outside and noticed another townhouse being constructed a few houses away. He also saw that Mrs. F's construction workers were acquainted with the folks from the other townhouse. By this time, Jun had an idea of what happened. After some conversations with the construction workers from both townhouses, his theory was confirmed.


During the time of construction, there was a nationwide shortage of cement. You wouldn't be able to find any even if you offered top dollar for it.


The contractor of the neighboring townhouse befriended Mrs. F's construction workers, sending merienda after work occasionally. One day, the contractor of the other townhouse borrowed cement from Mrs. F's construction workers, promising they would give it back as soon as they could find a supply. Mrs. F's workers lent them some bags, trusting they would return them when needed. Mrs. F just left the site and wouldn't likely find out, they thought.


Days passed, and the contractor still had not returned the cement they borrowed. This was a massive problem since Mrs. F's construction workers were scheduled to pour concrete the following days. Since they couldn't do anything about it, they worked with what they had.


The diagonal cracks seen resulted from the poor structural integrity of the walls, which was caused by the improper cement mix. Thus, Mrs. F faced a severe dilemma: redo everything and lose millions or hide the construction defects and push through selling the properties?

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