CHAPTER 1

PROJECT DESCRIPTION

In the process of construction, there are many phases it will go through. One of the many phases will be
in estimating the cost of the whole project. Estimating is often done on excel or if needed, there will be
computer aided programs that will help in estimating the project quicker. Reliable information is needed.
From the cost of the supplies to the cost of each manpower present. All projects go through estimating
first to see the how will the company adjust to the varying cost of the projects whether it will be daily,
weekly or monthly. That is why it is important that estimation is done to avoid any problems that will
account in the future.
In this project, we will estimate the cost of a 210.11 sq.m two-storey residential building located in
Makati, barangay Pinagkaisahan and see what are the conditions and factors needed in estimating the
building situated there. In this study we will find out how much will it cost to build a residential building
located in Makati and find out the different costs other than the materials needed for construction.
Furthermore, the study aims to find the most economical way in estimating a project but to ensure quality
graded materials. Since the location of the building is in Makati, the cost per square area is higher than
most city. It is the land on which your property is built that actually appreciates in value over time. As
explained in this article, the value of the home is dependent on the land where it is built on because one
cannot easily produce land to accommodate the demand.
As such, people investing in residential properties in Makati can be assured that the value of their assets
consistenty appreciates over time, with the average price being higher than in most cities in Metro
Manila. Real estate services firm Colliers Jardine reports that the strong economy is boosting land values
in Makati to unprecedented heights. (Des Arellano)

1.1 Project objectives

 What is the cost per square meter currently in the Philippines most recently in the location
situated in Makati.
 What are the basic techniques in construction management that can be applied from planning to
implementation
 Using PERT-CPM, how to identify the duration of the whole project.
 CHAPTER 2

COMPETITIVE LANDSCAPE

Cost of construction projects in the Philippines varies differently from place to place. One factor to be
considered are the rates in the urban and rural area. Provincial rates are fairly much lower than that of
the rates in Metro Manila. Since the project is located within Metro Manila, the cost estimate is
relatively higher than most cities here in Metro Manila. According to the 2016 Construction Cost
Handbook of construction consultancy services provider Langdon & Seah Philippines Inc., the cost in
building a house still varies depending on the type and size. Terraced houses and average standard
homes (one to two bedrooms) tend to cost between Php25,700 and Php31,000 per square meter.
Detached houses and high-end residences, on the other hand, the cost is between Php53,900 and
Php63,150 per square meter. These values, as per Langdon & Seah, are already inclusive of the
expenses for mechanical, electrical, and plumbing services.

Based on the Construction Cost Handbook, the initial cost of my estimate is comparatively lower. In
order to change this, I had made adjustments from my first estimate. I’ve researched a few more
articles and cost of supplies that I would think would be right and applicable in my project. The total
cost of my initial estimate is Php 4,233,120.31 this is still the direct cost excluding the General
requirements of the indirect cost. If we compute the cost for example in the handbook is Php25,700
multiply it by the covered floor area of the project then it would show a total cost of Php 5,399,827.00
estimate. The difference of the first to the target cost is more than one million pesos in total. It
definitely needed adjustment of the first estimate. After examining the BOQ of the initial I had to add
more items that lacked in the last estimate and also added more preliminaries. Also, the cost per floor
area of the initial is Php 20,147.16.

Electrical and plumbing are also included in the direct cost. Estimating those two based on the plan of
the building. General notes should be considered for the reason that electricians and plumbers need
specific details on the materials they have designed in the plan. My sources mostly come from the
online stores found on the internet and cite prices that are reasonable and economical for the project.
2.1 Rebar Concrete Ratio

The ratio between steel and concrete creates an idea of how heavy the building is in terms of cubic
meter. To give an example, it is ideal to have atleast 120kg/cu.m in the important structural elements
in the building. The higher the value of the ratio means that the steel present in the concrete is
excessive thus there are less important structural steel in that member that does not contribute to
structural integrity of it.

To compute for the ratio, we need to compute first the rebars needed in the construction and the
volume of concrete in each structural member. We referenced the book of Fajardo, Simplified
Estimate. Aside from the book we also referenced some in the websites that shows how to compute
for the rebars. Cutting list must be prepared first for the computation. Included in the process of
cutting list, is the value engineering. Value engineering is when we compute for the needed materials
that is economical in the construction while not leaving the quality of it. It is also important to note
that in estimating the needed number of steels, in real time application the excess cut length is often
used in some parts of the construction project but in the case of estimating it first, we disposed the
excess.
 Figure 2.1
In the figure above taken from the book of Fajardo, he first cite out the needed spacing between ties.
Obtaining the height of the column he divided it by the spacing, from there we get the number of ties
needed in the column and an additional one. In the plan almost all is given, what matter now is the
bending of steel in the structural members.

Figure 2.2

Most of the bending considerations is used in beams and footings. In my estimate, I applied the 9D
bending for the mild steel minimum hook and bend allowance. In some cases, development length is
used for cutting list but the study is limited to simplifying the estimate.
 2.2 Value Engineering

Steel bar prices varies differently depending on the diameter or the length of the steel bar. Available
in the market currently are the lengths: 6m, 7.5m, 9m, 10.5m and 12m. Aside from the market, some
companies order customized length of steel depending if needed. Steel also have different yield
strength. In households, commonly used is grade 40.

To apply value engineering in the estimate, it is required to get the total length of steel needed for the
structural member. To come into the ideal or economical number of pieces needed and what kind of steel
is used, wastage should come into consideration. In application of value engineering, the less wastage the
better needed for the structural members and to reduce cost of estimate.
 CHAPTER 3

OPERATING REQUIREMENTS