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