Most of us believe that if you DIY a certain work, you save a lot because you do not need to pay someone for doing the job. But fact is DIY works are often times costs you more than you think! Especially for those who are doing things first time. Here are some points we usually don't realize;
LEVELS OF DIY
We will consider the very simple work like changing a lightbulb to some complex works like making your own furniture, to building your own house, etc. There are things that can be done by almost anyone by just following very few steps, using simple tools and few common materials. Generally, by common sense, we can determine if a work is getting too complicated. This is the time that we tend to think twice if DIY is still an option. Sure then we can insist in pursuing DIY, but you should understand the risks and ready to face the consequences.
LEVEL OF QUALITY
Admit it. Not all of us are born gifted craftsman. I cant remember I've known someone doing an excellent job in their first attempt. Of course, this is not impossible to achieve. But we're talking about majority situation. We may be satisfied with the quality of our DIY projects, but comparing it to the works of someone who has a career for it, we can see the big difference. So what makes the difference?
(1) It's his career. He has done this so many times before that he may already mastered the art of it.
(2) Chances are, he has better tools or more so, he handles his tools more efficiently.
(3) Because of his experience, he probably has better techniques and developed shortcut processes. He knows how to handle troubles during the process. And thus minimizing wastage in materials and efforts.
(4) Assurance. You will feel assured because the work is done by an expert.
Well, if quality is not an issue for you since your project serves its purpose well as you expected, then it might be a success.
A DIYer's Nightmares!
(1) You did it all wrong. You wasted money and effort.
(2) You need to repeat because somewhere along the process you got mistakes.
(3) You got lost in following the step by step guide
(4) You already have the materials you need but you don't have the tools needed and/or the space you need to do your works.
(5) You did it! but everyone is mocking you because it didn't look great.
Tips on going DIY.
(1) Make a lot of research. Gathering as many information as you can may give you a huge chance of success in your project.
(2) Plan your work. After you have gathered enough research, next is to make a plan or review a suggested step by step procedure. This will minimize possible errors.
(3) Make sure you have all you need. Remember, once you started your project, there's no turning back, otherwise, you will be wasting everything. If you found out that something is missing in the middle of the game and you can't find it due to some availability issue, then it might be an early game over!
(4) Make a simple practicality test. Sometimes, we are forced to buy something in bulk because it's a standard market retail but we only need just a small portion of it. So it's so frustrating. You don't even know if you can still use the rest in the future or maybe resell it. Check your manhour rate and compare it to the one you can hire to do the job. If you're a pro or a manager, most probably, your rate per hour is much higher.
(5) Look for reference project. Someone might have already done your project before. You can ask him for advise or even ask for his help.
(6) Make time. DIY projects consumes more of your time. Be sure you have enough time to spare for the project.
(7) Patience. All DIY projects needs a lot of patience.
Benefits of DIY
(1) Self fulfilling. Even if you ended up spending more, and a lot of reworks, the feeling after you finish the project compensates.
(2) You gain experience. If you need to do it again, you are now much confident and probably you can do better, faster and cheaper.
(3) You know your project very well. Once there is trouble, you can fix it by yourself and won't need to wait till the serviceman arrives.
(4) You can brag. You can show the world that you did something not ordinary just by yourself.
For me DIY is not that bad at all. In fact, I'm a DIYer myself and have finished several DIY projects myself. What's important is to know your capacity, understand the risks and be determined to do the project.
If by going DIY, you are compromising your safety, better just hire the right man for the right job!
Thursday, August 28, 2014
Tuesday, August 26, 2014
"Pakyawan" or "Arawan"
To define as a setup in construction...
"Pakyawan" - You have an informal contract with your workers and agreed to finish a certain scope of work for a certain amount. Usually, the Foreman or Leadman bills you weekly according to the accomplishment of their work. This can be Labor and Materials or Labor only.
"Arawan" - You pay your workers weekly according to the number of days they worked. This is very common in the province. In some place, meals are even provided for the workers by the owner.
So which is better?
Actually, as a professional, I wouldn't recommend any of the two except maybe if you have a very simple project. Hiring a Contractor or Project Manager is still ideal. I'll explain why in my succeeding posts. But for now, we'll get into the things we should know about the two setup.
In "Pakyawan" the faster they finish the works, the bigger the earnings they get. Unfortunately, often times, the quality is sacrificed because the workers tend to work in their fastest pace otherwise they will only end up earning less than their daily rates. While in "Arawan". The workers tend not to care about the time to finish the works since they would have their salaries at the end of the week anyway.
In "Pakyawan", the weekly accomplishment is often hard to quantify since there would be probably unfinished works that we can only assume percentage of completion. So, its either you overpay or less likely underpay. But of course accomplishment claim is always more than the actual accomplishment. In "Arawan" you only have the weekly payroll as basis of your labor expenses.
So how can we deal with these?
If you decide to engage in pakyawan, here are some of my tips;
1. Have a written agreement.
Can be handwritten as long as understandable. This will be good for both of you. This will prevent the workers from denying a specific work as not included in their scope. If you have a list of scope of their works in your written agreement, you can easily check what's included and what is not. It can also help you in evaluating the cost of the finished work since every item has corresponding amount in the agreement. For the workers' favor this will also prevent you from insisting item of works that is not really included in the agreement.
You can also have an agreement on the quality. You can set an existing house or building near you as basis or benchmark of the quality that they should deliver, otherwise they will not be paid.
2. Ask other parties for quotation.
This is to gauge more or less if someone is overpricing. Or if the quotation is too good to be true.
3. Learn to Evaluate.
At least check the basics. measure, check the straightness, level and plumb line. Inspect visually. If this would be hard for you, go ask someone who can do this for you. Don't rely only on the claims of your workers. Remember, if you overpay them at first they tend not to finish the works since they are thinking that the remaining works has now lesser value.
4. Have a regular inspection
Inspection and monitoring the progress of your project will boost the work and avoid cheating and wasting of your materials.
As you have guessed, engaging to this might take up more of your time. Otherwise, you accept the risks of not completing the project or spending more than you expected.
If you decide to engage in arawan, here are some of my tips;
1. Know your workers.
Atleast the foreman or leadman is a relative of yours or someone you know. Some workers claim that they are skilled carpenters or masons but actually knows nothing but labor works. You will then be paying higher rates and worst, wouldn't get the job done correctly.
2. Set schedule.
Be idealistic! Expect that they will argue with your set schedule, but that's just fine! You can then arrive at a good agreed schedule. Atleast they are aware that they should finish the works by then.
3. Have a regular inspection.
This is very necessary. You should always let them know that you're always there watching them. So that they will not be encouraged in working slowly. You can also always remind them of the schedule.
4. Set site rules.
Curfew, Timekeeping, proper outfit, safety, etc.
If you don't make this, most probably, your jobsite will be a mess! Workers like to drink after work. If your place allows it, let them take a bit. But be clear that this should be regulated. Your neighbors might file complaints that may compromise your project. And also, hangover may cause your workers not to be efficient the following day.
5. Pay on time.
Remember that most of your workers rely only on their weekly salary. If you delay their payroll, they might get angry and even intentionally make damages on your project or worst, beat you.
As you have guessed, engaging to arawan might take up most of your time. Otherwise, you need to hire a trusted supervisor to do the works for you.
What I've discussed are just mere part of the issue. There are other important matters like; reading the plans, estimating bill of materials, securing permits etc. We'll go in details with these in my next posts.
Thanks for reading.
"Pakyawan" - You have an informal contract with your workers and agreed to finish a certain scope of work for a certain amount. Usually, the Foreman or Leadman bills you weekly according to the accomplishment of their work. This can be Labor and Materials or Labor only.
"Arawan" - You pay your workers weekly according to the number of days they worked. This is very common in the province. In some place, meals are even provided for the workers by the owner.
So which is better?
Actually, as a professional, I wouldn't recommend any of the two except maybe if you have a very simple project. Hiring a Contractor or Project Manager is still ideal. I'll explain why in my succeeding posts. But for now, we'll get into the things we should know about the two setup.
In "Pakyawan" the faster they finish the works, the bigger the earnings they get. Unfortunately, often times, the quality is sacrificed because the workers tend to work in their fastest pace otherwise they will only end up earning less than their daily rates. While in "Arawan". The workers tend not to care about the time to finish the works since they would have their salaries at the end of the week anyway.
In "Pakyawan", the weekly accomplishment is often hard to quantify since there would be probably unfinished works that we can only assume percentage of completion. So, its either you overpay or less likely underpay. But of course accomplishment claim is always more than the actual accomplishment. In "Arawan" you only have the weekly payroll as basis of your labor expenses.
So how can we deal with these?
If you decide to engage in pakyawan, here are some of my tips;
1. Have a written agreement.
Can be handwritten as long as understandable. This will be good for both of you. This will prevent the workers from denying a specific work as not included in their scope. If you have a list of scope of their works in your written agreement, you can easily check what's included and what is not. It can also help you in evaluating the cost of the finished work since every item has corresponding amount in the agreement. For the workers' favor this will also prevent you from insisting item of works that is not really included in the agreement.
You can also have an agreement on the quality. You can set an existing house or building near you as basis or benchmark of the quality that they should deliver, otherwise they will not be paid.
2. Ask other parties for quotation.
This is to gauge more or less if someone is overpricing. Or if the quotation is too good to be true.
3. Learn to Evaluate.
At least check the basics. measure, check the straightness, level and plumb line. Inspect visually. If this would be hard for you, go ask someone who can do this for you. Don't rely only on the claims of your workers. Remember, if you overpay them at first they tend not to finish the works since they are thinking that the remaining works has now lesser value.
4. Have a regular inspection
Inspection and monitoring the progress of your project will boost the work and avoid cheating and wasting of your materials.
As you have guessed, engaging to this might take up more of your time. Otherwise, you accept the risks of not completing the project or spending more than you expected.
If you decide to engage in arawan, here are some of my tips;
1. Know your workers.
Atleast the foreman or leadman is a relative of yours or someone you know. Some workers claim that they are skilled carpenters or masons but actually knows nothing but labor works. You will then be paying higher rates and worst, wouldn't get the job done correctly.
2. Set schedule.
Be idealistic! Expect that they will argue with your set schedule, but that's just fine! You can then arrive at a good agreed schedule. Atleast they are aware that they should finish the works by then.
3. Have a regular inspection.
This is very necessary. You should always let them know that you're always there watching them. So that they will not be encouraged in working slowly. You can also always remind them of the schedule.
4. Set site rules.
Curfew, Timekeeping, proper outfit, safety, etc.
If you don't make this, most probably, your jobsite will be a mess! Workers like to drink after work. If your place allows it, let them take a bit. But be clear that this should be regulated. Your neighbors might file complaints that may compromise your project. And also, hangover may cause your workers not to be efficient the following day.
5. Pay on time.
Remember that most of your workers rely only on their weekly salary. If you delay their payroll, they might get angry and even intentionally make damages on your project or worst, beat you.
As you have guessed, engaging to arawan might take up most of your time. Otherwise, you need to hire a trusted supervisor to do the works for you.
What I've discussed are just mere part of the issue. There are other important matters like; reading the plans, estimating bill of materials, securing permits etc. We'll go in details with these in my next posts.
Thanks for reading.
Wednesday, August 20, 2014
The "How much to build a house?" question.
Straightforward, this refers to cost.
The purpose of estimates is to determine how much more or less the cost of a certain project. One thing to note is that estimates are expected to be not exactly the same as actual cost. But it's aim is to have a figure that is as close as possible to the expected actual cost so we can check and workout our budget.
The basic in finding the cost of a project is requesting for a quotation.
COST OF A SPECIFIC ITEM OR SERVICE;
If what you need is a specific item or service, you can directly go to the supplier and ask for a quotation. Expect that the supplier will be asking you for details of the item you need. If the detail they are asking is too technical for you, then you might need to consult your architect/engineer. You can canvass on other several suppliers so you can have a better deal. Just remember that the lowest price is not always the best quote. Be keen on quality, service warranties, and reputation of the supplier. Finding a supplier is quite easy nowadays. You can look in the internet or visit the nearest Home Depot or maybe some local hardware.
COST OF A PROJECT;
If what you need is cost of a project, may it be renovation, repair or new construction, the usual thinking is to look for a contractor and ask for an estimated cost. This might be right but in my opinion is not the best thing you should do first. If you go directly to a contractor, expect also that it will ask you details like designs, plans and scope of works. If the contractor has an in-house designer, he may also offer you a free design deal provided that they will be the one having the contract. You might also encounter some contractor that will give you instant amount just basing on basic parameter you gave like floor area and space requirements. But take note that this is probably ball park estimates only. You should not rely quickly on the said estimates because it will most likely frustrate you if your expenses exceeded this estimate in actual. The logic is how can he give a reliable estimates if there are no technical basis like design plans and specifications. If what you show is only a picture of what you want, how can he know the exact dimensions, all the materials used and other details? Of course they can assume, but again the estimates will probably be rough. Chances are either the project will be overpriced or the contractor will leave the project before it is completed because the cost is not enough to finish the project. Whereas, if the basis of the estimates are plans with complete dimensions and details, the estimates will have a very high accuracy.
Therefore, I recommend that you consult an Architect/Engineer to prepare the designs first. You can even ask your designer to conduct a bidding to have the best deal from reliable contractors. Of course, assuming that your Architect/Engineer is a seasoned reputable professional. Many newbie professionals nowadays are just eager to have a project but still lacks the experience to properly complete a project.
MATERIAL AND LABOR COST;
Material cost refers to the materials you will be using for your project. But it is important to note that in a project, not all the materials you will buy will be part of your structure. some material are just needed in the process. examples are basic tools and formworks.
There is a "rule of thumb" in determining the Labor cost of a project. Labor cost is estimated as 30% of the Material cost. For me, this actually the most unreliable way of computing for the Labor cost. Check out the following example; (1)You bought 2 sets of Door Locksets. Both are knob type. But the one you bought first is worth 1000 pesos because this will be for your Bedroom door while the other one is just worth 150 pesos since it will only be used in your storage room. Will you agree that the labor cost of installing the two will be different since they have different material cost? I don't think so. Both locksets can be installed by a skilled carpenter in approximately 2-3hours each. (2) Assuming that you now have a very long list of materials with respective cost so you now have a total material cost. You now computed the labor cost using the 30% rule of thumb. But you decided to opt for cheaper alternatives of most of the materials perhaps getting the cheaper brand and reduced your material cost to 50%. Would you think that the Labor cost should also be reduced to 50%. That's a big loss to the contractor since the scope of his works is still the same as before!
For me, the "rule of thumb" is just for initial rough estimates to have an idea more or less how much you will pay for labor works.
PREVAILING COST
As requested, I'll be posting this as a guide for ball park estimates for residential buildings.
As of September 2014;
1. Low end house - Php 10,000.00 - 15.000.00 per squaremeter
2. Mid end house - Php 15,000.00 - 25,000.00 per squaremeter
3. Semi-High end house - Php 25,000.00 - 30,000.00 per squaremeter
4. High end house - Php 30,000.00 - above
The purpose of estimates is to determine how much more or less the cost of a certain project. One thing to note is that estimates are expected to be not exactly the same as actual cost. But it's aim is to have a figure that is as close as possible to the expected actual cost so we can check and workout our budget.
The basic in finding the cost of a project is requesting for a quotation.
COST OF A SPECIFIC ITEM OR SERVICE;
If what you need is a specific item or service, you can directly go to the supplier and ask for a quotation. Expect that the supplier will be asking you for details of the item you need. If the detail they are asking is too technical for you, then you might need to consult your architect/engineer. You can canvass on other several suppliers so you can have a better deal. Just remember that the lowest price is not always the best quote. Be keen on quality, service warranties, and reputation of the supplier. Finding a supplier is quite easy nowadays. You can look in the internet or visit the nearest Home Depot or maybe some local hardware.
COST OF A PROJECT;
If what you need is cost of a project, may it be renovation, repair or new construction, the usual thinking is to look for a contractor and ask for an estimated cost. This might be right but in my opinion is not the best thing you should do first. If you go directly to a contractor, expect also that it will ask you details like designs, plans and scope of works. If the contractor has an in-house designer, he may also offer you a free design deal provided that they will be the one having the contract. You might also encounter some contractor that will give you instant amount just basing on basic parameter you gave like floor area and space requirements. But take note that this is probably ball park estimates only. You should not rely quickly on the said estimates because it will most likely frustrate you if your expenses exceeded this estimate in actual. The logic is how can he give a reliable estimates if there are no technical basis like design plans and specifications. If what you show is only a picture of what you want, how can he know the exact dimensions, all the materials used and other details? Of course they can assume, but again the estimates will probably be rough. Chances are either the project will be overpriced or the contractor will leave the project before it is completed because the cost is not enough to finish the project. Whereas, if the basis of the estimates are plans with complete dimensions and details, the estimates will have a very high accuracy.
Therefore, I recommend that you consult an Architect/Engineer to prepare the designs first. You can even ask your designer to conduct a bidding to have the best deal from reliable contractors. Of course, assuming that your Architect/Engineer is a seasoned reputable professional. Many newbie professionals nowadays are just eager to have a project but still lacks the experience to properly complete a project.
MATERIAL AND LABOR COST;
Material cost refers to the materials you will be using for your project. But it is important to note that in a project, not all the materials you will buy will be part of your structure. some material are just needed in the process. examples are basic tools and formworks.
There is a "rule of thumb" in determining the Labor cost of a project. Labor cost is estimated as 30% of the Material cost. For me, this actually the most unreliable way of computing for the Labor cost. Check out the following example; (1)You bought 2 sets of Door Locksets. Both are knob type. But the one you bought first is worth 1000 pesos because this will be for your Bedroom door while the other one is just worth 150 pesos since it will only be used in your storage room. Will you agree that the labor cost of installing the two will be different since they have different material cost? I don't think so. Both locksets can be installed by a skilled carpenter in approximately 2-3hours each. (2) Assuming that you now have a very long list of materials with respective cost so you now have a total material cost. You now computed the labor cost using the 30% rule of thumb. But you decided to opt for cheaper alternatives of most of the materials perhaps getting the cheaper brand and reduced your material cost to 50%. Would you think that the Labor cost should also be reduced to 50%. That's a big loss to the contractor since the scope of his works is still the same as before!
For me, the "rule of thumb" is just for initial rough estimates to have an idea more or less how much you will pay for labor works.
PREVAILING COST
As requested, I'll be posting this as a guide for ball park estimates for residential buildings.
As of September 2014;
1. Low end house - Php 10,000.00 - 15.000.00 per squaremeter
2. Mid end house - Php 15,000.00 - 25,000.00 per squaremeter
3. Semi-High end house - Php 25,000.00 - 30,000.00 per squaremeter
4. High end house - Php 30,000.00 - above
Update as of 2021;
1. Low end house - Php 12,000.00 - 18.000.00 per squaremeter
2. Mid end house - Php 18,000.00 - 30,000.00 per squaremeter
3. Semi-High end house - Php 30,000.00 - 40,000.00 per squaremeter
4. High end house - Php 40,000.00 - above
Please take note that these assumptions are just based on my own personal opinion considering my 14 years of experience as a Construction Professional.
Simple things to remember
1. Go canvass! Canvassing is a lot easier nowadays because of telephone, celphone and internet.
2. Be wise, don't just believe on someone that uses a 'crystal ball' in estimating giving instant cost.
3. Ball park estimates are not that bad. But remember not to rely solely on this. You only need this to gauge if your budget can work out.
4. A good Construction Professional will always consider your budget. He will make sure that you will be satisfied. Simply because, he will not be just after the professional fee but more on after the good feedback from you and gain more clients.
If you have any further questions, please feel free to email me at royestrella@gmail.com. Hope this article may help your decisions.
2. Mid end house - Php 18,000.00 - 30,000.00 per squaremeter
3. Semi-High end house - Php 30,000.00 - 40,000.00 per squaremeter
4. High end house - Php 40,000.00 - above
Please take note that these assumptions are just based on my own personal opinion considering my 14 years of experience as a Construction Professional.
Simple things to remember
1. Go canvass! Canvassing is a lot easier nowadays because of telephone, celphone and internet.
2. Be wise, don't just believe on someone that uses a 'crystal ball' in estimating giving instant cost.
3. Ball park estimates are not that bad. But remember not to rely solely on this. You only need this to gauge if your budget can work out.
4. A good Construction Professional will always consider your budget. He will make sure that you will be satisfied. Simply because, he will not be just after the professional fee but more on after the good feedback from you and gain more clients.
If you have any further questions, please feel free to email me at royestrella@gmail.com. Hope this article may help your decisions.
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