Modular and Pre-fabricated Houses

 While this is getting popular in fast developing countries, here in the Philippines, this hasn't fully earned the trust of the people. Most Filipinos are accustomed to the traditional masonry system using hollow blocks that are available anywhere in the country. We cannot blame them, This is a tried and tested system that lasts almost a lifetime. Resistant to typhoons which is very common occurrence in the country.

Modular and Prefabricated Houses is an alternative. Here are some reasons why we should take a second look at this alternative has to offer;

1. They are built fast! Some companies claim they can build your house in a day! While this can be true, it will still depend on many things like size of the structure, location, etc. And commonly, the site preparations are not included in the build time. Meaning, before they start their works, site works should already be done. These are; Foundations and Pedestals, Piping and Septic Tank, Standard Electrical requirement by local Power company, etc.

Because they are built fast, it's ideal for mass housing, temporary shelter during calamities and ultra-affordable homes for sale.

2. They are way cheaper! We cannot have a proper apples to apples comparison with the traditional system because Prefabs are mostly in very different materials and system. This actually what makes it cheap while still having an acceptable quality and durability. Some of the materials commonly used in Prefabs are; Steel, Engineered Wood, Fiber Cement and many more being developed. And of course, what makes it cheap is the faster build time. Imagine comparing a 3-month long construction to a 3-day erection. Actually, if we are going to directly compute for the materials, it costs more than its equivalent raw materials available in the market. The reason for this is processing. Prefabs, so it is called are prefabricated in a warehouse. It is processed in such a way it can be dismantled and completely loaded in a delivery truck.

3. As I've mentioned, they are of acceptable quality and durability. But this is still actually the biggest doubt of everyone. They may not be as strong as our traditional masonry, but it's engineered to keep up with our common needs for shelter. Let's also accept that even concrete and masonry structures have their share of failed cases. And most of the time, we just don't realize it but after a few years, we tend to improve our homes. This now makes the investment for masonry impractical.

4, While there are already companies that offer decent designs of Prefab houses, still choices are limited and so as the options to customize it according to our preferences. If you have the budget, it's better to give Prefabs the least considerations. Of course there are a lot of after-built improvements and modifications, but I think it somehow defeats the purpose of having a Prefab for cost and time.

Final take, to my fellow Filipinos, don't be afraid of building technology. As long as it's certified by our professionals, there is merit in considering these to have a better and decent home.

PS, I am not affiliated to any Prefab company or paid to endorse anything. This is just my personal opinion as an Architect.

Comments are welcome!

How to deal with Contractors

First, I would like to apologize for not posting for a very long time. Let's just continue quickly!

If you have already picked your contractor, then congratulations! Because you're almost done with the hard part.

For the sake of fairness, respect and maintaining good relations, it is advisable that you or your Construction Manager, issue a Notice of Award to all contractors who participated in the bidding. It is important to inform everyone including the designing architect who the winning contractor is. There are several reasons why this should be done. First, as I stated, to show respect to everyone. Second, it wouldn't be so hard to negotiate with the other participating contractors if your deal with the winning contractor didn't go well for some unexpected reasons. You, your Architect and/or CM would not be tagged as staging a ghost project to solicit bid bonds and free information.

Dealing with contractors will most likely be easy if the contractor that you have chosen is a good one. A good contractor is usually transparent and will be willing to explain to you in detail your contract with him. Feel free to ask all your questions. They are probably expecting it! It is also actually good for them because they will have a clearer view of your expectations. Just make sure you are only asking questions related to the project. Avoid asking comparative questions. Don't compare you're projects to other projects.

If you hired a Construction Manager, you should not ask your contractor questions directly. All questions should be coursed through your CM. The CM can answer all the basics in the construction. And you can expect an unbiased answer. And sometimes, there are questions that should be intended for the Architect/Designer and not for the contractor.

If you only have a small project and you think hiring a Construction Manager is too much for you, then you just have to trust your contractor. If you have no knowledge in construction, avoid intervening in construction site works. It will only delay your project. A good contractor, would fairly deliver and would not gamble to risk his name and reputation. It is advisable that you keep your concerns on things that you should as a client as much as possible. Don't stress yourself on going into the detailed process and focus only on the agreement and schedule.

When negotiating a contract with your chosen contractor, make sure you consider the following;

1. You or your CM should review the bid estimates including the inclusions and exclusions and also terms and conditions. Normally, the detailed list of items in a bid estimate includes everything necessary to completely deliver the project accordingly. But it would be great if you also do some research about the specifications so you can negotiate for upgraded items. Like for example, door handles or faucets. If you have preference for these, you can haggle and maybe given a free upgrade!

2. Insurances, Warranty and Retention. I think I already mentioned this in my previous article. You may backread to review if you feel the need to. But basically, these guarantees should be clear in the contract. Warranty period is normally 1 year after the turnover and acceptance date. After this, the 5-10% retention can already be released to the contractor. If there are defects that the contractor failed to rectify, the owner may opt to hire other contractor to rectify and charge it to the retention cost.

3. Permits and Bonds. These includes all permits like Baranggay Clearance, Homeowners' Permit, Fencing and Building Permit and other required permits. Although, you may opt to hire a third party liaison to handle this, it is mostly practical to just include this to the contractor's responsibilities. Don't forget the Occupancy Permit. This is legally very important that some owners ignore. If something happens to you or your property, you will have a hard time to charge who's responsible since you do not have permit to occupy. Most subdivisions require Construction bonds and Delivery gate fee. This is for unexpected damages that may be caused in the subdivision during construction period. To avoid being bothered every time permits is required for delivery or certain construction activity, it is also recommended to just include this in the contractor's scope.

4. Construction Schedule, Payment and Penalty Clause. Target dates should be clear in the contract. It is not required but would be better if milestone dates will also be considered such us Major Concrete Pouring, Shell Enclosure, etc. As discussed also in my previous articles, the ideal payment schedule is thru progress billing. This can be according to monthly accomplishment as evaluated by your CM. If you don't have a CM, you can also do it yourself or better hire a construction professional that can make monthly assessment for you. Just make sure that this is stipulated in the contract. Penalties should not happen as much as possible. But if the contractor neglects the project and failed to deliver in time, the cost of penalty should be agreed in the contract.

5. Extra Work or Change Orders. It is quite normal during construction period that you realized you want to add or change something in the agreed plans or scope of work. It would be unfair to the contractor if you would ask this for free specially if this has a significant cost and may contribute delay on schedule. It is just fair to have extra charges aside from the agreed unit costs. But this should also be properly detailed in the contract.

6. Standard Items, Others and Special Cases. A contract should not be limited to the items listed above. If possible, ask a lawyer to review the final draft of the contract.

You should expect that there might be differences or variations in every projects, This is just a guide and not a sole standard reference.

Remember, always try to establish a good relationship with your contractor. Treat them the way you treat your doctor or your lawyer. The project will greatly benefit if there is harmony and understanding.

Tips in Selecting Contractors

After you completed the list of your potential contractors, next is to select your top picks.

Again, we will be assuming that your project is a common mid-cost residence probably ranging from 2M to 6M pesos. Cases might be different on higher or lower cost projects. I am also assuming that projects worth 6M up already is worth hiring a Construction Manager and he is the one handling or assisting the OWNER in dealing with the contractors.

According to what you found out on your initial gathering of infos, give more points to contractors with a good office and warehouse, has proper business documents, and has client references. Narrow down your pick into top 3-5.

Schedule a meeting with these contractors. It is recommended that you are the one who goes to their office since contractors might not accept your invitation if they feel that they have a very little chance of getting the project. They actually know if a Client is just soliciting information from them. Also, another advantage is, you can see and feel how the contractor treats his client and he will also feel that you are serious in considering him thus making him give you further information you need. This will probably be your second visit to their office.

Things to ask on your initial meeting with a contractor:

1. How many on-going projects they have. Actually, the lesser on-going projects they have, the more advantageous to you. Simply because, you don't share attention with too many projects. Chances are, your project will have the most out of the contractor's resources. Although, contractors tend to adjust as the number of their simultaneous projects increases.

2. Ask for reference project. If your project is a 2-storey residential with floor area of more or less 300sqm, ask the contractor of specific finished project with the same description as yours. If he is in construction industry for several years, he should have gotten similar project as yours before. This is to prove that he already has the experience and the expertise perfectly fit for your project.

3. Ask for basic contract terms and conditions. Some items that you should clarify are the following:

   a. Down payment. For these type of project, down payment usually range from 20-30%. Also, it is important to request a Guarantee Bond equivalent to the down payment. This is in case something goes  wrong and the contractor abandoned the project before it even started, you can claim back your down payment from the insurance company. Just make sure that the insurance company is reputable.
   b. Construction and Surety Bond. Aside from the Guarantee Bond, it is important also to have these so that you will be assured at any point during the construction period.
   c. Duration of Construction. This is for you to know how long they can finish your project. Also, this will help you manage your cash flow.
   d. Mode of Payment. The best mode of payment for contractors would be through Progress Billing with pro-rated down payment and retention.(We will discuss this further on my next articles)
   e. Excluded items. Although you are probably dealing with a General Contractor, there are still items that you will prefer to be excluded in the contract. This is because these items are owner-preference dependent. And/or for you to save on overhead charges if included in the contract.

4. Before you meet with them, prepare a set of blueprints and a copy of the Material Specifications prepared by your architect/designer. You will be giving each contractor a copy of these to be their basis of the estimates/quotation you will be asking them. If possible, give them also a standard bid form. You can ask your architect/designer or CM to make this. This is for apple to apple comparison of bids.

Expect that they will be asking further question upon reviewing the plans. If you can not answer their questions, or the questions are too technical for you, you will have to forward these to your architect/designer. Even if  only one contractor asked a question give your answers also to the other contractors. This is to keep them aligned and maintain a good cost comparison. In the architect's office, these are called bid bulletins.

Estimates usually takes a week or two to finish. If you are not in a rush, you can set the deadline of submission of bids 2 weeks after transmitting the bid documents to them.

For these types of project, a Closed Bid is usually the way to go. This means that they will be submitting their bids with their best price in an enclosed envelope and it is up to the client to decide on whom the project will be awarded.

Project Fails

Before we proceed on my recommendations on how to select and deal with contractors, let's discuss first some common mistakes committed by each parties that often times result to project fail. These mistakes are considerations in order to fully understand the ways in dealing with contractors.

Mostly in a client's perspective, the project fails because of the contractor. But usually, it is not the contractor that should always take the blame.

CONTRACTOR'S FAULT

1. Underestimate. If discovered before signing of contract, the contractor will probably withdraw unless otherwise, the OWNER agreed to correct the estimates and adjust the contract cost. Options are to have a higher cost or make some downgrading. If found out during construction this will have an impact to both the Contractor and the OWNER. The contractor might not finish the project, leaving the OWNER in a compromising stage.

2. Cheating. We all have the impression that all contractors tend to cheat, from material quality, overpricing, overbilling, etc. But there are still many contractors that would not risk their reputation in exchange for small additional income thru cheating.

Skipping procedure or shortcut of works is also cheating. But take note that not all shortcut works are considered cheating. There are some that are just mere construction techniques and technically acceptable.

3. Incompetence and Negligence. This results to poor quality and workmanship. Either produced by low-skilled workers or poor supervision, monitoring and checking of the foreman and/or the project engineer. Project engineer's poor comprehension of the plans and miscoordination can terribly ruin the project. Due to negligence, the contractor might also overshoot. The estimates are fair enough, but due to wrong execution and repetition of works, the allotted budget is reached before finishing an item. This results to frustrating losses.

DESIGNER'S FAULT

1. Incomplete and Inaccurate Plans and Details. The saying "No Plans are perfect" is an excuse for this. But the basic details should be ensured included in the issued set of plans. The CM and the Contractor should also review the plans before starting construction.

2. Late Response to Detail Request. It is normal that in some point during the construction, the CM and Contractor might find out that there are missing details in the plans. They are then permitted to submit a RFI or request for information to the Architect to issue the required design detail. But sometimes the architect's reply is taking too long that the project cannot move forward.

CONSTRUCTION MANAGER'S FAULT

1. Negligence. We are assuming that CM is competent and duly qualified, but failed to conduct proper checking resulting to wrong execution, misalignment and inconsistency of actual with the plans. This may cause delay to the project, material wastage and additional expenses.

2. Corruption. Yes, there is corruption even in construction. Some freelance CMs receives extra cash from the contractor in exchange for approval, recommendation to owner and other favors.

OWNER'S FAULT

1. Late Decisions. During construction, the OWNER's main participation is to make decisions. As the project progresses, he begins to see the actual. And because of this, he may decide to change something because he realizes that its not what he wanted. This is normal. That's why we have construction revisions. But the problem is most of the time, it takes too long for the owner to decide on the revisions and makes delay on the project.

2. Late Payment. Late payment usually happens during construction. And its quite understandable but not being late for more than a month. Because of this, the contractor tends to slow down or even stop at all since he is underpaid.

3. Too much Questioning. We understand that OWNERS are spending hard earned money for their dream house so its normal for them to ask questions. But sometimes, due to this questioning, a lot of nonesense issues arises and affects either directly or indirectly the progress of the project.

What I've mentioned above are only the most common mistakes. There are still more but might depend on the case or situation.

Tips in Finding a Contractor

If you prefer to find a contractor by yourself, please read on to have a heads up on finding a good contractor;

Steps in finding a good contractor:

1. Get a list of potential Contractors. If you are a first timer, at least 3 - 5 contractors should be in your initial list. But it is recommended that you keep as many contacts as you can so that you can have better options and add other candidates in case one contractor fails to meet your expectations.

Don't engage with them yet. Just get their contact and basic information.


Ways to find a Construction Contractor:
 1. Relatives and Friends' Recommendations
 2. On-line/Internet
 3. Yellow Pages
 4. Newspapers and Magazines
 5. Ad posters, Billboards, etc.
 6. Scout for ongoing construction projects
 7. Ask for your Designer's recommendations
 8. Product and Service Expositions

2. Gather information about the contractors. You can try searching for their website or online protfolio. You can also join forums and ask about any feedback about them. You can make a call to inquire and ask for their company profile. Many construction firms nowadays have online company profile.

Information to take note:
1. PCAB Classification. This is to ensure that the contractor is qualified to do construction works for your project.

2. Years in Service. Of course, the longer they have been in the industry, the more experience they have. But be sure to check the time line of their projects. Having only 1 project in 1 year is ok. But having no project in a year or two is an issue you should clarify with the contractor.

3. Finished Projects. Aside from reading the list of their accomplished projects, you can also ask about brief history of some of their notable projects so you can have an overview on how they handle projects and how they dealt with their previous clients.

4. Office. Knowing the location of their office is not enough. Go and visit. Investigate on how long they have been taking office in there. If they have been there for so long, about 10 years above, they might be doing good business then. Also proximity of their office to your project is an advantage.

5. Equipment and Material Warehouse. If possible, try to visit their warehouse also. A good contractor should have an organized warehouse. This is also a proof that they have the equipment, machinery and resources to finish quality projects.

6. Permits and Licenses. Although this should be there as expected, there's no harm in having a double check including the validity of the professional license of the engineers and architects in the firm.

7. Client and Project Reference. You can ask this at the early stage if you are seriously considering the contractor. But don't expect too much because arranging a project visit is not that easy but should not be impossible. In respect to their previous client, the contractor will normally seek for permission first before you go for the inspection. If this pushed through, chances are, you've found a good contractor. The fact that you have been allowed to visit their accomplished project only proves that they have established a good working relationship with their previous client, and possibly to you also in the future.

Remember, don't directly contact their previous clients and ask for feedback without asking the contractor first. This can be considered unethical and/or unfair collection of opinion. You'll never know. It might be that the client was the bad guy, and the cause of the project failure. If the contractor is in good faith, it would not be afraid to let you meet its previous clients.

We will continue with the Selection and Dealing with Contractors in the next articles. Thank you for reading.

Contractor with Construction Manager

Ideally in this setup, the OWNER seek first the services of an Architect or Architectural firm. After the plans are prepared, the Architect invites contractor to bid for the project. At least 3 contractors should participate in the bidding. If the OWNER knows a capable contractor, he can also invite him to join the bidding. It is important that the Architect should be the one conducting the bidding because he can set bidding guides so that every item in the bid breakdown can be compared apple to apple during evaluation. Also, if the contractors has questions regarding the design, they can directly ask the architect. The architect then can issue bid bulletins to answer all design related questions.

While the bidding takes place, the OWNER can then hire a Construction Manager. It is recommended that the CM is not related in anyway with neither the Architect nor the Contractor. This is to ensure a good check and balance during construction.

After the bidding, the winning contractor will then be engaged directly to the OWNER. Although the contractor will be the one preparing the contract agreement, it is still to be checked and evaluated by the Construction Manager. All provisions, terms and conditions will be reviewed by the CM. You should not ask directly your contractor of anything about the contract agreement because it might give you a bias answer. If you have doubts and questions, it is your CM that you should consult. The CM and the Contractor may have a language that you might not understand. But you can be assured that the CM is doing his best to make everything in your favor. Otherwise, his reputation of being a good Construction Manager will be compromised.

Again, the advantages and disadvantages are actually almost the same with the previous setups. The only difference of this setup is having a very good check and balance because these 3 Construction Professionals are directly engaged with you. The Architect will ensure that his designs and details are complete, accurate and on time because the CM and the Contractor will be checking these before the contractor executes the plans. The Contractor will less likely attempt to perform poorly or abuse you because they are being monitored and checked by the CM. The CM on the other hand must also do well because the project's outcome mostly depend on him. If the project is done accordingly and finished on time, the credit goes to the CM. CM firms are always after this, because of client reference. In short, because each of them are afraid of having an impression of being incompetent, they will have to perform at their best. And the one that will benefit from this is the OWNER.

Managed Construction

This setup usually happens in a complex project being done in phases. In this setup, the Construction Manager is the main man. He is the only one engaged with the OWNER. All other construction professionals involved in the project is under him or reports to him. He is the one making all the decisions including design issues, except for critical ones like aesthetic and structural impact which are consulted to the designing architect/engineer.

In most cases, there are several contractors in a project. There is a General Contractor, but his scope is usually limited to structural phase only. All other trades and specialty works are bid out to several contractors as the construction progresses.

ADVANTAGES:

1. The OWNER has less worries since the Construction Manager will be handling everything.

2. If managed properly, the OWNER can have big savings since every item of work will be given to the contractor with the best bid. Bids became usually low due to competition within the project.

3. There is no General Contract. If the OWNER decides to cancel the project, he has minimal obligations to settle.

4. If there is a contractor that does not perform well, the CM can easily replace him after his contract because his scope is probably just a small portion of the project at first. On the other hand, if the CM finds the contractor efficient, the CM can award him more works extending the amount of his contract.

DISADVANTAGES:

1. You only trust your CM. It would be hard for you to know if the CM is faithful to you. He may be receiving favors from some contractors in exchange to more contracts. Since he is the one evaluating the bids and contract, you are not sure if the evaluated cost is the cheapest cost you can have.

2. Warranty issues. Because there are several contractors in a project, there are often times confusion on who to claim warranty services. The CM should have managed this properly and documented everything for future references.

3. Contractors conflicts. Similar trade contractors in one projects usually finds themselves in a tight competition. Politics and work sabotage most likely happens. Also, if one contractor failed to do his part, other contractors that depends on his work will not be able to finish his works also. And if one contractor either intentionally or by accident, damaged the finished works of the other contractor, rectification works blows out to be a big issue. The blaming game now starts!

4. Conflicts on Temporary facilities. This is also related to contractors conflict. Because there are many contractors in a project, You should have an organized barracks and warehouse. It's like having a small temporary baranggay. You will need to address the issue of peace and order.

5. As the works are being done simultaneously by different contractors, the CM may need to hire additional inspectors to cope up with the speed of the progress.

Contractor through the Architect

The Architect can actually directly recommend a contractor. But for the purpose of cost comparison and counter checking of estimates, several contractors are invited to bid by the architect. This is to show the client that he has options to choose. The OWNER can even recommend his bet contractor to participate in the bidding. You will not have to worry of finding and dealing with contractors since the architect will be the one handling the bidding.

After the project is awarded to the winning bidder, the setup or situation will most likely be the same as the previous setup. Basically the same advantages and disadvantages.

Some architectural firms are offering their in-house construction management where-in, they can assign a full time project architect that will monitor the contractor and manage progress of construction. You will then be paying monthly charges for this.

The following are in addition to the advantages and disadvantages mentioned in the previous setup:

ADVANTAGES:

1. You can request your Architect to do regular inspection or at least do checking on construction milestone. He can then help you in evaluating and advise you if your contractor's accomplishment claims are substantial or not. He or his representative can also do random material checking to make sure that the contractor is following the prepared specifications and not using substandard materials.

2. You can seek design related advise during construction. If you are in doubt of a certain detail or you promptly want to change something, you can directly tell the matter to the project architect. Replies would probably be faster and will not compromise construction schedule.

3. Because the contractor is recommended by the architect, there is a very good chance that the contractor is competent and reliable. He must have been proven his reputation already to the architect in his previous projects. So you will have less worries in the contractor's credibility.

4. You can expect that the contractor will also perform well because if not, the recommending architect might not give him projects anymore in the future.

5. Faster response on design revisions since the project architect has direct contact to the firm.

DISADVANTAGES:

1. You will pay extra cost for the construction management services of the Architect.

2. If the architect is the one checking the contractor, who is then checking the architect? We can not be 100% sure that the project architect can mange correctly and/or efficiently all the construction issues in the project. Often times, they tend to be bias and always thinks that everything should be in the architect's favor.

3. Sometimes, project architects tend to be too strict that even causes delays in schedule. Example, if a material in the specification is not available anymore or very hard to find, contractors find it hard to seek approval of alternative brands or specifications.

4. Contractor-Designer, conflict or connivance. Although this rarely happen nowadays, still problems like these may arise anytime during construction.

Engaging your architect to do management work will protect you from possible abuse by the contractor but will cost you additional expenses.

Direct to Contractor

Again, assuming that you already have your plans prepared and you've found a good and reputable contractor, we will proceed on the next construction set-up which is Direct to Contractor. Here are some notable advantages and disadvantages of this set-up.

ADVANTAGES:

1. You can better plan your expenses because you already have a target cost for the construction works unlike in the previous setup, where in you continue to spend money until the project is finished. You will only know the cost of the project after it is completed. You only pay for the monthly accomplishment of the contractor meaning you only pay for the items that have been finished within the billing period

2. You don't need to engage yourself in the construction site since everything will be taken care by your contractor.

3. You will not be liable of any accident that might happen during the construction period

4. You will not have any problem regarding labor issues or workers' demands. You don't have to go look for workers by yourself since your contractor will be the one to manage all labor works and all issues related to manpower management.

5. You don't need to invest for construction equipment, power tools, and form works. A construction firm usually has these.

6. You wouldn't need to worry on the leg works for the legal documents regarding the project. Processing of permits and other documents are commonly part of the contract including all coordination works needed until the project is finished.

7. You don't have to worry on sourcing and buying of materials. Also, you will not worry of wastage, pilferage and warehousing since these are all part of the contractor's responsibilities.

8. You have a fixed schedule. If you agreed to finish the project in 6 months, the contractor should deliver the project to you in 6 months unless there are acceptable delays as stipulated in your contract. Otherwise, you can impose penalty charges on the delay of turnover.

9. If you have questions, expect that you can have professional answers and advises since most qualified contractors are professionals.

10. Warranty. All the works done by the contractor has 6 months to a year warranty. They will repair it with no extra cost from you.

11. You can request for as-built plans and other construction documentation that you can use as reference in future repairs, renovation or troubleshooting.

12. Contractors normally deploy at least 1 full time construction supervisor so that the project can be monitored and built accordingly.

DISADVANTAGES:

1. Higher cost. Because of mark-up and overhead charges, the net contract cost is surprisingly high if you will compare on direct cost estimates by informal contractors.

2. Any changes or additional works you want to impose during construction will be charged separately. These are called Change Orders or Extra Work Orders. Including item of works that you forgot to include in the scope of works. Although, most contractors are willing to charge no extra cost if the item you are requesting are just too minimal compared to the total contract cost. I actually don't fully consider this as a disadvantage because for me, it is just fair to charge for any additional works done which are not included in the signed agreement.

3. Unless you hired a Construction Manager or Inspector, it will be hard to check if the contractor is faithful in doing his construction works. It will be hard to monitor and check if all the materials the contractor is using are according to the prepared specifications and in acceptable quality standards.

4. If not monitored properly, contractors tend to speedup the construction but sacrifices the quality of workmanship.

5. Unless you hired a Construction Manager, it would be hard for you to evaluate the contractor's monthly accomplishment. unless, you know construction also. But again, you can ask questions if you have doubts or you can't understand the billing.

Contractor's In-house Design vs Architectural Firm's Design

Before we proceed on the next set-up, it is important that you first understand the difference between designs from an Architectural firm and designs by in-house designer of a Construction firm.

Many contractors nowadays already have in-house designers. So you can actually have the contractor make the design for you. But, you should be aware of the following;

1. When it comes to design expertise, design firms usually produces better designs than a contractor's in-house designer. Simply because the firm has a wider range of design resources, the firm allots more time in research and design improvement to keep them in trend and competent in all aspects of design. They already have a library of their design information, style evolution and compilation of reliable design solutions. They even have wider design exposure including in international design trends.

2. In-house designers are usually contractor-inclined. A design firm has the experience in dealing with their clients. They can easily understand the clients preferences according to their lifestyle and social status. In-house designers are usually young architects who knows architecture in theory but still lacks the experience in understanding their client since they rely mostly on their experience as a contractor and not as a designer. They focus more on constructing the house rather than understanding how the design works best to satisfy the needs of the client. Sure they can produce good designs, but designs produced by firms are probably better.

3. Even if the contractor tells you that they will be giving you the design for free, it may not be actually free at all. The charge may be indirectly included in the contract bid.

4. Drawing quality, accuracy and completeness is strict in every architectural firm. They make sure that the details are complete and precise. In house designers on the other hand focuses only on the drawing requirements and thinks that other drawings can be made later as the construction progresses.

5. And of course, if your house is designed by a known architect, you can brag about it! And of course, you will spend more since you will be paying design services separately.

I've stated the above points because you might be asking why you will need the services of a design firm if contractors can already prepare designs.

Direct Supervision

We will assume in all the articles regarding Construction Setup that you already have the plans prepared by your designer.

In this setup, parties involved are the following;

OWNER: the Client
SUPERVISOR: Freelance Engineers or Architects are usual candidates
WORKERS: Usually a group headed by a foreman.

This setup commonly happens in small projects. The owner usually has already engaged to a group of workers to do the job but he knows nothing about construction so he decided to hire a supervisor to oversee the project and to have it regularly checked professionally. This setup has great chances of working but will depend on the following;

(1) Construction expertise of the Supervisor

Expertise in construction is gained through years of experience. Young newly-licensed engineers might probably have learned the theories in school but would likely fail for the first time if not properly guided by a senior. An experienced professional however are hard to find and make them engage in this setup unless he is a relative or a close friend of yours. Solutions to most problems that arises in a project are not taught in school but learned through experience and active participation in the jobsite.

(2) Skill level of the Workers

Workers are generally categorized as skilled and unskilled. skilled workers however also has levels. Their daily rates are actually based on their skill level. The foreman usually is the most skilled of them all. He should be a multi-skilled person to qualify as a foreman.

The skills of workers are actually the hardest thing to gauge from the start. Someone who referred them to you would say that they are good but still you'll never know until the project starts.

ADVANTAGES:

(1) Less professional expense. Since you will be paying only 1 professional in monthly basis. Small projects are usually completed within 3-6 months.

(2) Less worries. Since someone is already taking care of practically everything, you will not need to worry of many things. And since the project is overseen by a professional, you will have greater assurance of safety.

(3) Less wastage. Materials for ordering can be quantified and computed accurately by a construction professional based on plans.

(4) Construction documentation. You can request for as-built plans and other documentations that you can keep for future reference if you will need to troubleshoot or renovate. You can also have your supervisor sign on documents needed in applying for occupancy and other permits.

DISADVANTAGES:

(1) Check and balance. Since there is only one professional present, no one will at all times check if he has supervised the project well. It will also hard for you to prove if he has been faithful and did not do any manipulations whatsoever that made him gain extra income or favors. You will just rely on your trust in him. Worse is if you found some irregularities in the middle of construction. By then, it would be hard to have him replaced if you decide to since he has already knowledge of the construction history of the project and the new one you will hire will have too much catching up works.

(2) Lack of tools and equipment. Most probably, tools and equipment are not included in the professional service of your supervisor. But he can probably help you in finding equipment to use may it be for rent or purchase cheap. Normally clients do not purchase equipment because its not practical since it might only be used once in the project. Contractors have probably invested for these machines because it can still be used in their other projects.

(3) Time and Budget adjustment. The longer the project takes, the more money you spend. Although, you have set a schedule, it would be very hard for you to push the deadline if something unexpected happened. Unexpected repairs or adjustment due to bad weather conditions will be added to your expense. Whereas if the work is in contract, you pay in fixed regardless of what happens or what unexpected things would come up. Also, at some point, you might encounter something that is beyond the technical knowledge of your supervisor thus prompting him to suggest to you to hire a consultant. This again will add up to your expenses beyond the budget.

(4) Warranties. Since the setup is pay per work, repairs on defective works will also be pay per work. Again, comparing it to contract setup, Works are usually in warranty of 6-12 months after the completion of the project. and this warranty is already included in the contract amount you paid. The contractor will do repair works with their expense for the period of warranty.

Overall, direct supervision is not that bad at all and actually professionally acceptable for small projects. At least you get to comply with the National Building Code that every project should be supervised by a qualified professional.

Construction Setups

I've already discussed in advance the 2 most popular informal type of setup in construction ("Pakyawan" or "Arawan"), As I've said, as a professional, I wouldn't recommend any of the 2 setup.

Here are my reasons;

1. You need to be more hands-on. You are the one taking care of everything your workers need. It consumes most of your time. And if you don't have any experience in job site construction, you may be abused by your workers. You will be also handling all the paper works, leg works, permits and other documents pertaining to the project.

2. You cannot guarantee that the foreman or lead man can fully read and understand the plans, specifications and other documents. Some skilled workers are able to read the plans through experience, but would not probably understand everything in it specially technical engineering annotations. This might then pose a big risk on the structural safety of the building. But just to be fair, I've met some foreman that can read plans very well. Lucky for you if you found one like him.

3. Usually, there is no scientific justification in quantifying materials for ordering. When you ask your foreman about the materials they need, he will most likely just make a wild guess of how many of these... and how many of that...etc. which may end up either too much ordered materials which leads to possible wastage, or short in quantity making you pay more on delivery charges for ordering again.

4. The workers probably has no equipment, power tools and warehousing schemes. Your best option for the equipment is to rent and you might also need to buy some power tools. Some important equipment you might need are: 1-bagger mixer, Jackhammer, Concrete Vibrator, Water Pump, Welding Machine, Formworks and Scaffoldings, etc. Some of the power tools you will need are: Drills and Grinder/Edger, etc. Contractor's normally have all of these so you wouldn't need to worry about these including safekeeping and maintenance of these tools and equipment. You might also have material pilferage problems if you don't have proper warehousing. This is the most common problem with the 2 setup.

5. Legal issues. After your project is completed, you will now need to process your occupancy permit. This permit is also needed when you are applying for Power and Water connections. And because there are no construction professional that supervised the project, you might find it hard looking for an engineer to sign and seal the documents risking his license for a project that he doesn't know if built correctly as per design. You might again end up paying more than you should at this point.

6. No one is to be blamed or be held responsible if something terribly wrong happened in anytime during the construction period. Sure you can blame the foreman or the workers. But how can you hold them responsible? Jailing them will still leave you with the problems they've caused.

7. You will not have warranties and construction documentations after the project is completed. So if something wrong happened months after the construction is finished, there is no assurance that you can still find the foreman or the workers. You will again be paying them for the repair works that they will be doing. Also, troubleshooting(commonly on electrical failure) will be difficult since you don't have any reference documents or as-built plans.


CONSTRUCTION SETUPS INVOLVING PROFESSIONALS:

1. Direct Supervision - You hire a pro who directly supervises the workers, interpret the plans and make the estimates and ordering of materials. You pay either fixed monthly supervision fee or Cost-plus (monthly fee plus certain percent on the total actual expenses)

2. Direct to Contractor - You engage into a contract with a licensed contractor or construction firm. Some contractors with in-house designer/architect even offer free design and preparation of all needed plans and other contract documents.

3. Contractor through the Architect - You probably hired an Architect to prepare the plans. The architect, then invited contractors to bid for the project. And after bid evaluation, awarded the contract to the best bidder. (note: lowest bid is not always the best bid)

4. Managed Construction - You hire a Construction Manager. The CM then, hires a Contractor or several sub-contractors. CM manages the project and deals with the contractors on your behalf.

5. Contractor with Construction Manager - Same as no. 3 but with the addition of the Construction Manager directly hired by you.

For the next articles, I will be discussing each setup in details. I will point out advantages and disadvantages so you can have better idea on which setup will suit your requirements.

Construction Professionals

In my previous post "An Overview", my aim is for non-technical people to understand the roles of individuals in construction. But the question that follows is "Who's who?"

Note that this article will only focus on Construction in general.

FIELDS IN THE BUILDING INDUSTRY

1. Design - Professionals in this field are the ones conceptualizing and preparing the plans. Design is composed of Architectural, Structural, Electrical, Plumbing, Mechanical, and Specialized Allied (Interior, Acoustics, Lighting, etc.)

An Architectural design firm is usually headed by the principal architect. The firm is composed of architects, engineers, draftsmen(now CAD operators and 3D Renderers), Architectural design firms usually has consultants. They are the designers of the other trades mentioned above. They are not directly part of the firm but merely Partners in the business. A firm may actually have several consultants on each field.

Professionals of each trade:
Architectural - Architect, Interior Designer, Landscape Architect
Structural - Civil Engineer, Structural Engineer
Electrical - Registered Electrical Engineer, Professional Electrical Engineer, Registered Master Electrician
Plumbing - Sanitary Engineer, Registered Master Plumber
Mechanical - Mechanical Engineer, HVAC Engineer
Specialized Allied - Interior Designer, Interior Decorator, Acoustic Engineer, etc.

2. Contractor - Mostly composed of Engineers but there are some architects on board also. The contractor is the one in the site doing the construction works. Contractor or constructor has classes. This gauges their capability to handle size and complexity of a project. Contractors of multi-storey buildings should be a Tripple-A General Contractor. For residential projects, even class C or D are qualified depending on their performance.

Sub-contractors are usually hired by the General Contractor for a specific work in the construction. This can be Electrical works or Plumbing works, etc. Subcontractors are also considered as standalone contractors. They are only called sub-contractors if they are under the General contractor and does not have direct contract with the client.

3. Project/Construction Management - The Construction Manager is considered as the OWNER's representative, This can also be composed of a team of professionals depending on the scale and complexity of a project. In most residential and small commercial projects, there is usually one full-time construction manager but he is assisted by other trade consultants as needed. They are the ones managing the project, setting and monitoring of the schedule, checking of the materials and contractor's workmanship quality, review of the plans, contracts and other documents and coordinates with the Designer as necessary, making sure also that the plans are strictly implemented. They are also the ones assisting the OWNER of his responsibilities as well. As I've mentioned before, his main duty is to protect the OWNER's interest. He makes sure that the Contractor is doing his job faithfully and evaluates the accomplishments for payment. He fills up the owner's lack of technical knowledge to avoid being abused by the contractor. A construction manager can be an architect or engineer with years of experience in the industry.

4. Product Development and Sales - Some engineers chose the path of specializing in a specific construction material. Instead of involving directly in construction, they develop materials and services for use in buildings.

5. Government Service - Engineers, architects working in DPWH and other related government institution. Professionals in the office of the Building official and City Engineer and City planning and development.

6. Maintenance and Administrative  - Often times, as a new building is completed, the OWNER absorbs one of the Construction Managers to be his Building Administrator. This is to take advantage of his knowledge on the construction history of the building. There are also new firms today that offer maintenance works only.

Construction is actually broader. But I believe the above explains the basics.

The question next is who to contact first if you want to build your house? I will be discussing this later. It is important that the CLIENT first understand the different construction setup. Please read my next post regarding this.

Buying or Building a House

BUYING A HOUSE,

I'm sure you've encountered some agents in the malls giving brochures, pamphlets, etc of a ready-to-occupy houses located in a newly developed subdivisions in nearby provinces. Some model houses are tagged with an attractive price while boasting the community amenities.

The Good.

(1) Units can be occupied right away after you complied with the requirements and agreed with the terms and conditions. You don't have to wait for several months of construction. You do not have to worry about the hassle of dealing with the contractors/workers. (Although, some setup are just showing you a model house then construct your house after you pay the down payment)
(2) Units are payable in monthly basis and/or can be loaned thru Bank or Pag-ibig fund.
(3) You get to see the actual unit before you get it. Others are even offering optional components or variations. You don't need to imagine the actual sizes of the spaces.

The Bad.

(1) Since the unit is pre-built, the quality is hard to assure. Most defects are not noticeable in the first few years of the house. Though some projects constructed by reputable developers are of considerable quality. If you are buying a second hand unit, chances are there are already repairs made that you probably don't know that may become a problem in the future.
(2) Cost is probably high. The Agents/Brokers will have his commissions. The developer should have its profit. The General contractor should have its profit. The Subcontractor should have its profit. The workers should also have its profit. Subcontracting setup is even up to 3rd-4th pass.
Although some developers claim that the construction cost is low because they built the houses in bulk.
(3) You have to live with the design. Otherwise, you'll spend more on renovation works. If you're not that particular on the place you live, then everything might be just fine with you.

For those mid earning employees who want to have their own house as soon as possible, this is the most popular choice. It's not that bad at all. But there could be better with the same value of investment.

BUILDING A HOUSE,

To some of us, building a house is an enjoyable process. At planning stage, they get excited thinking everything they dreamed of to be done specifically according to their preferences. This is of course assuming that they have found a good designer and contractor. But to many of us, we are afraid of this process. Especially if this is the first time we will be doing this.

The Good.

(1) The house is designed the way you want it. From planning, you get the chance to consider your lifestyle. You decide on where to put up the spaces and what are the spaces you need. You decide on what materials to use. Options are almost limitless.
(2) You can see the progress of Construction. You can see and check the materials and structural to make sure of the strength and durability. You have the chance to make last minute revisions, the moment you see something is not according to what you perceive.
(3) You can work out your budget without compromising your preference. With the help of the engineer, you can plan your cash flow. You can then have the option of by-phase construction where in by proper scheduling, wastage can be minimized due to project halt or delay. You can even set priorities so you may choose to finish certain portion and live with it while other portions are still in progress.
(4) The Budget can also be loaned in Bank or Pag-ibig fund.
(5) You will know your house very well. You can also require your contractor an As-built plan  so you'll have reference if you need to troubleshoot anything like electrical and plumbing system.

The Bad.

(1) You can not move-in immediately. You will have to wait till the construction is finished or portion of it is already livable. It might take you at least 3 months to a year to construct and move-in.
(2) You need to involve yourself in every concern during the construction period. It consumes your time. Although, you will be advised and assisted by the designer and the contractor, you will have to make so many decisions. If you find this enjoyable, then its a good rather than a bad.
(3) You will need to pay for construction documents, bonds and taxes. You have to pay your designers for the plans and documents they will be preparing as well as for the signs and seals as required by the city building official. You might also need to pay for construction bonds, contractors all risk insurance (CARI), processing of permits, fire safety, etc. (Although, you may opt to let your contractor do these for you)

Other worse things that could happen;

(1) You have a poor concept of design and space. You just found out that it is not what you want after the building is done.
(2) You engaged with bogus or incompetent contractor. After you gave the downpayment, the contractor is nowhere to be found. Or the contractor's skills did not meet the quality you want. Or the contractor did not finish the project because of some reason that maybe your fault or his fault.
(3) You always decide late or changes your mind every now and then during the construction period.
The project is delayed because they are always waiting for your decision.
(4) Your suppliers caused delays on your project. Or you did not pay on time, that causes the delay.
(5) You ran out of budget in a compromising stage of construction. (Although, this will less likely happen if your contractor prepared a cash flow plan and gant chart)
(6) You violated some subdivision rules that causes a lot of wasted materials and labor accomplishments.


As you can see, It will still depend on you, your designer and the contractor you will hire. If you ended up with a good designer and reputable contractor in a reasonable contract price, then you will most probably have an enjoyable construction experience and a good project.

In my next posts, I'll be listing down some tips in finding a good Designer and Contractor.

The Do-It-Yourself Way

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!

"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.

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

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.

Construction FAQ - 1

In all the forums about construction I've joined in the past years, there are many common questions that are frequently asked. Well, to avoid repeated posts questions and answers at the forum, I will attempt to list them here and try to answer them to the best of my knowledge.

Question No. 1: I want to build my House/Building. What should I do first?

My Answer:

First, find out if you already have the following:

1. LOT with the right classification.

Residential for Houses, Commercial for Commercial Establishments,etc. If you are not sure of the lot's classification, you can go to your local Municipal Hall Land-use and Zoning Office and check in the Land-use Map. Residential areas are commonly shaded with color yellow or orange and Commercial areas are in red. Institutional is in blue and Agricultural is in Green.

If you are thinking of changing the land-use of your property eg; agricultural land to commercial land, you will be required to secure ECC or Environmental Compliance Certificate from DENR.

2. BUDGET

It's self explanatory, everything will work out if you have this.
For those who doesn't have this yet, you can try to use your other assets and properties. Loan is a good answer. It comes in many form. it's up to you how to obtain it.

The next question is "how much is the budget?" We'll discuss this later.

3. WILL

If you have the first two, but do not have the will, then all is nothing. right? In my experience, the owner's Will mosty dictates the progress. Lack of budget became out of problem. Or it may be that a simple problem may cause the construction to stop. Just what like a song says: "... 'pag ayaw may dahilan, 'pag gusto palaging mayroong paraan..."

If you already have these, next is to consult a professional, preferably an Architect, who is a relative of yours or a close friend or someone already known to the profession. Why? Simply because it's very hard to trust anyone. Kahit pa nga kamag-anak minsan nagkakasiraan pa di ba? Please, please, please, do not ask ideas from those who are not in the field of construction. Or yun mga nakikialam lang at nagmamarunong. This oftenly ruins your disposition and may lead you to miserable path and end up not enjoying the construction procedure. Trust me on this! You don't entrust your health to someone who is not a Doctor, or your Legal Cases to someone who is not a Lawyer. Right?

Many are afraid to consult a Construction Professional thinking that they will be paying too much for any of his services. But fact is, payment only starts upon signing of contract. Initial advises and even initial designs are usually free.

Everything else follows. the architect will then translate your dream house to reality!

For other questions, you can email me at royestrella@gmail.com

An Overview

The Main Cast of Characters in the Construction Project:

OWNER
The Protagonist. The Producer

ARCHITECT
The Author!

CONSULTANTS
The Co-Author and Advisers

CONTRACTOR
The Director and the Staff

PROJECT MANAGER
The Editors and Quality Checkers

Above is a simple metaphor to simply explain the roles of the individuals in a construction project. This may be inaccurate but I think good enough to be understood by laymen. Although this is explained in details in many Construction and Architectural Books, I believe posting this would greatly help and enlighten the OWNERS and the people who are confused in the process of constructing.

Question: Does this mean that there should be at least 5 individuals involved in a Construction Project?

Answer: Not exactly! It depends on the type of project, its scale and complexity. In some small projects, there may be only the Owner and the Contractor, or the Owner and the Architect with a Team of Workers, or in some cases, The Owner and the Workers directly. In Large projects, Designers and Consultants are a team composed of Professionals specializing in their respective fields. The Team is usually headed by the Designing Architect. General Contractors have their Field Supervisors and Subcontractors. There are also other Specialty Contractors directly hired by the Owner.

It is still recommended to have all the listed above present in a project. This decreases the chances of poor and unsatisfactory product especially in large complex projects. But in most cases, what’s keeping the ‘Others’ off is the budget. Owners tend to think that it is not worth paying engineering services in small projects and hiring a Foreman or skilled workers is the way to save a lot. Others even opt to Do-It-Yourself. In some cases it worked! But in some cases it didn’t and created more complex problems and frustrating results. Well it’s up to you to decide and take the risk. Having them all is not a guarantee but at least would place you in a safer side.

Many are afraid to consult a Construction professional. Maybe because they think that the charge is way too expensive. Fact is, An Architect or Engineer would likely not charge you yet in your initial meetings. Except for well-known Design Firms, most Freelance Architects would answer basic questions without pressuring you to hire him immediately. Some even give free initial designs according to your preferences. And some more others give free advises! Unlike other profession that is like a Taxi meter the moment the consultation started. You may not realize yet that if you didn't hire a construction professional, you may have so many questions specific to your project that you are dying to know the true answer. Chances are, you might end up having what you need but does not understand it well by heart. You might even experience comparing with your friends' projects. You will be burned by the question "Why does his... like this and mine is not?" or even "We have the same... but why his... is cheaper?"

For me, finding a Good Contractor is actually the hardest part for the Owner. With so many Fly-by-night contractors nowadays, it is a nightmare if you ended up to one. But there are ways on how to find a Reputable Contractor. We'll discuss this on my next posts.

FYI: The Architect may function as both the Designer and the Builder. As explained in the UAP(United Architects of the Philippines) Documents’ Design-Build Services, this may be possible but not in all cases.

For ethical reasons and to ensure that there is ‘check and balance’ the Architect-Builder and/or Contractor should not function as the Project Manager. Project Managers are usually the Owner’s Representative and has the main duty of protecting the Owner’s interest.

Welcome!

I've been reading a lot of web articles and blogs in the internet before. Many times I tried to start my own but never had the time. Or maybe I'm just not in the mood to make one. Finally, I decided to create this blog... hoping I may contribute and help people specially Filipinos around the world, to inform and give my insights that may help them make better decisions, and to exchange ideas and perspective with co-leagues to continuously develop and enrich new concepts.

I welcome my self in this new world as I welcome you in your visit!