The Philippine construction industry is an actively expanding industry, which has a high economic significance for the country. As infrastructure requirements grow, project complexity increases, and demands for quality and efficiency rise, the need for accurate and reliable construction cost data has never been greater.

The “Construction Cost Guidebook – Philippine Edition,” hereafter referred to as “Guidebook” has been written with this need in mind. It serves as an essential tool for professionals across the construction sector, whether they are involved in cost estimation, project management, procurement, or any other area where cost awareness is critical.

In the pages that follow, this Guidebook will provide you with a comprehensive and practical guide to understanding construction costs in the Philippines, organized by a structured system using the CSI MasterFormat®. We structured this based on 16 divisions of construction activity, assuring that the data and information can be easily found by the users according to their own needs.

The data contained within this Guidebook will support your budgeting and estimating efforts and ensure that you are working with the most accurate and up-to-date information available.

Introduction to the Guidebook

Construction Cost Guidebook – Philippine Edition in essence, is not just a book of numbers. It is a professionally selected reference aiming to help construction specialists with the problems they may encounter when trying to calculate building project costs. Through the detail cost breakdowns, such as the minimum and maximum unit prices, this manual gives the users real-world data with which to make informed decisions. These figures have been gathered through extensive research, vendor quotes, and industry reports to warrant credibility.

The Guidebook covers a wide range of construction activities—from the simplest tasks to the most specialized works—across all types of building and infrastructure projects. It is outlined to separate construction tasks into natural elements, thereby providing its users with the possibility of easy access to the information they are seeking. Each of the items presented in the tables will have associated details, i.e., code, description, unit of measurement and minimum price, the maximum price, and vendor references.

Purpose of the Guidebook

The purpose of the Guidebook is to make a secure, user-friendly tool available to construction stakeholders in the Philippines. Cost estimation is a critical part of any construction project and having access to accurate and up-to-date data can make all the difference between a successful project and one that runs over budget.

Accuracy of costs is difficult to derive without the support of precise data and the professionals frequently have to work by “guesstimate” which results in error, delays and eventually in cost overruns. In this Guidebook, we tried to remove that ambiguity by providing a data set which is both up-to-date and readily interpretable.

Not only as a cost estimation tool, the Guidebook can be expected to assist in more effective decision making through the life cycle of the project. By providing information on unit price movements, the Guidebook allows the user to adjust the project plan to factor in current market realities. From addressing the daily discrepancies in foreign exchange rates to

incorporating cost-saving measures, this guidebook assists construction professionals in keeping pace with changes that may affect project cost and duration budgets.

Intended Audience

This Guidebook is aimed at a wide range of professionals working in the construction industry in the Philippines. Its primary audience includes:
Cost Estimators/Quantity Surveyors: Use of this Guidebook for construction cost estimation is essential to individuals/owners who have the responsibility of compiling cost estimates for construction projects. Using its comprehensive and easily understandable tables and minimum and maximum unit price range, estimators can produce more accurate project budget estimates.

Project Managers: With this Guidebook, the Project managers can better manage the project budgets and its constraints. By referring to the cost data in real-time, project managers can adjust as needed to avoid cost overruns.

Procurement Teams: Professionals responsible for sourcing materials and services for construction projects will benefit from the vendor reference section of the Guidebook, which provides information on suppliers and vendors for various materials and services.

Engineers and Architects: For engineers and architects using cost information, the cost data will help in preparing and designing projects. Understanding the cost implications of different materials and construction methods will aid in making design decisions and help to improve the budget.

Contractors and Subcontractors: Contractors can refer to this Guidebook for cost estimation of specific jobs and estimation of unit price adjustment of their share of the project. This can assist them to bid more effectively while ensuring profit.

Owners and Developers: Individuals and organizations funding construction projects benefit from the Guidebook’s cost data as it helps them make informed decisions on project feasibility and overall budget management.

Government Agencies and Regulatory Bodies: Governmental bodies responsible for construction projects, especially in the public works domain, can use this data when evaluating bids, approving budgets, and ensuring good cost benchmarks.

Although the main users of the Guidebook are the primary construction stakeholders, the Guidebook can also be of use to everyone who has an interest in the financial side of the Philippine construction business, whether they are academicians, researchers, or students.

Why this data matters for building projects in the Philippines.

Reliable and updated construction cost information is the basis of good management of construction projects, and this is even more relevant in the Philippines where construction costs can change a lot.

The data contained herein is a compilation of several hundred projects from thousands of vendors across the country.

The user is presented with a glimpse of the range of cost from vendors, subcontractors, and main contractors.

The data is presented in a minima-maxima format to show a range of cost that is submitted by these companies during the procurement process.

Can the unit prices deviate from the minima-maxima window

Yes, definitely.
Building up the unit price for each company can vary in so many degrees and forms.

Smaller companies would have a simpler and leaner organization that would translate

to lower overhead. Vis-à-vis with bigger companies, the overhead tends to be higher that leads to higher construction cost.

Technology and methodology also play a significant part in the pricing patterns and behaviors of each vendor.

The reader is encouraged to understand the nuances of the cost build-up via a unit price analysis.

In essence, cost refers to the total expenses incurred in producing a good or service, while price is the amount of money a customer pays for that good or service. Essentially, cost is what it takes to make something, and price is what it sells for.

Here are the other factors that can affect pricing:

a. Material sourcing
b. Material Availability
c. Foreign exchange rates
d. Logistics
e. Labor Rates
f. Productivity
g. Labor and skills availability
h. Type, size and capacity of equipment
i. Equipment utilization rate
j. Equipment age and efficiency
k. Location
l. Weather & Climate
m. Accessibility
n. Geopolitical events & Situation
o. Project duration
p. Quality standards
q. Time of the year
r. Supply and Demand
s. Inflation
t. Permits and environmental compliance
u. Contractor’s mark-up & contingencies
v. Economies of scale
w. Risks
x. Government regulations & Policies

Every project will have different factors affecting its cost. This is very important to understand when using this book.

The data presented herein might not capture the scenario of your project and you have to adjust accordingly.

It is very important to note that a careful study of these factors will always lead to a more robust and competent set of estimates.

What is the difference between the Bill of Quantities (BOQ) and the Bill of Materials (BOM)?

This is a very common question among construction practitioners and most of the time, it is used in the wrong way.

A BOQ is a contractual document used primarily for tendering and cost estimating. The quantity of the BOQ is the measured dimensions from the plans. Nobody can argue that a 4m by 5m room has 20sqm of floor area.

The BOQ will show the floor area covered by say, ceramic tile finish, as 20sqm. Any wastage, breakage and cut lengths are not counted in the quantities. Allowance for wastage, breakage and cut lengths are considered in the unit price, not in the quantity.

As for the BOM, it is an operational document used for procurement, ordering and fabrication. You use the BOM to process your purchase order to buy materials. That means you add the wastage, breakage and cut lengths to the quantity.

So, if the BOQ only showed 20sqm of ceramic tiles, the BOM will show the breakdown into components such as : tile adhesive in bags, ceramic tiles in pieces, grout in bags, spacers in pieces; all inclusive of allowances for wastage, breakage and cut lengths.