Cost

• Cost Estimation Manual For Low Rise Buildings
• DPWH Department Order No. 137 Series of 2017
• Program of Works (POW)


  The total estimated cost of the project which covers the Civil Works Cost, Engineering Supervision and Administrative Overhead, Road Right-of-Way Acquisition Cost, Construction Contingency, etc.
• Program of Works (POW)


  • Includes information about the project location and limits, quantity and unit cost for each item of work, construction duration, funding source, equipment requirements, etc
• Approved Budget for the Contract (ABC)


  The total estimated agency estimate (direct cost, indirect cost and tax) for civil works contract of infrastructure projects, wherein it is the ceiling of award of contract for government locally-funded projects and reference for comparison of bid costs of contractors for both locally-funded and foreign-assisted projects
• Detailed Unit Price Analysis (DUPA)


  The determination of reasonable unit cost of each item of work which reflects the breakdown showing the quantities of work items, unit prices of materials, equipment rental rates, labor rates and DPWH-prescribed indirect costs including taxes
• Standard Labor Rates


  Matrices prepared and issued by Department of Public Works and Highways (DPWH) periodically showing the required compensation for manpower workforce of different categories, which comprises the minimum wage as approved by the NWPC, DOLE plus the monetary benefits
• ACEL Guidebook 2022


  A guidebook where rental rates of commonly used equipment for infrastructure projects are based. It is published by Association of Carriers and Equipment Lessors, (ACEL) Inc.
• Construction Materials Price Data (CMPD)


  A compilation of unit prices of construction materials updated quarterly per District Engineering Office to be used as reference in the pricing of materials component of the pay items of work in the preparation of DUPA, ABC & POW, including new items of work involved in a VO (Variation Order)
• DPWH Standard Specifications for Public Works and Highways


  A compilation of detailed descriptions of work items in constructing public works and highways projects such as roads, bridges, buildings, etc. In other words, a compilation of specifications of standard works acceptable to the DPWH
• DPWH Standard Specifications for Public Works and Highways


  • Composed of specifications containing detailed description of the workmanship, material requirements, technical dimensions, materials proportion, datum lines and grades and other established references to follow or adhere to, e.g. AASHTO,ASTM,etc.; basis of measurement, payment and unit of measure/measurement; and basis of acceptance and special details that would give the user a clear view of the work to be done
• Low Rise Building


  One-storey up to 5-storeys in height, i.e. from 3.00 m up to a maximum of 15.00 meters above established grade; while not generally requiring an elevator if the building/structure is purely residential use; fire escapes and other safety systems are mandatory for all low-rise buildings/structures
• Cost estimation is a complicated, delicate and an integral part of the engineering field
• Cost estimation scopes everything that took place, takes place, and is taking place in any field of work
• Everything starts from the acquisition of land ownership before proceeding with the design process
• There is a professional fee for the architect or civil engineer who will design the building/structure
• The major concern related to the design and construction is how much the project will cost the owner
• If the project cost exceeds the capability of the owner, the project may not commence or require redesigning or other reconsiderations
• The second major concern related to the design and construction is how much the project will cost the engineering firm
• As professionals and businessmen, engineers want to ensure they will gain the right profit/salary from the project
• The golden rule of cost estimation is 'Mabuti na ang lumabis kesa magkulang' (Better to overestimate than underestimate)
• Failed cost estimation is the main reason why many engineering firms went bankrupt, especially those handling multi-million projects
• Cost estimation techniques and best practices


  • Skills in the interpretation of the plans and specifications
  • Wide experience in actual construction and estimating works
  • Familiarity with different types of construction materials and equipment
  • Consideration on actual site condition in the preparation of DUPA i.e. hauling distance, terrain, etc.
  • Familiarity on laws, policies, guidelines and procedures pertaining to the implementation of government infrastructure projects to ensure cost estimates are done at the right cost
• Things to consider in cost estimation

  • What shall be done and what it requires to be done
  • Equipment and Materials
  • Who will be doing it
  • How long will it take to be done
• The DPWH's Manual follows the general pattern of building construction, with parts for Earthworks, Plain and Reinforced Concrete Work, Finishing, Electrical, and Mechanical
• Non-reusable materials


  Materials like concrete mixes, metal bars, CHB that cannot be reused
• Reusable equipment


  Equipment like trucks, backhoes, concrete mixers that can be rented
• Non-reusable materials can be estimated with a higher quantity to account for accidents, construction and human error
• For reusable equipment, the main concern is the amount of time it will be used/rented for construction
• Operated rental rates


  Includes operator's wages, fringe benefits, fuel, oil, lubricants and equipment maintenance
• Labor classification (skilled, unskilled, etc.) with corresponding salaries or rates, number of each, and their expected progress as a unit must be considered
• The duration of tasks is important to determine the total time and cost for labor and equipment
• Assumptions on travel time for loaded and unloaded dump trucks may vary depending on traffic and road surface conditions
• Preparation of the Detailed Unit Price Analysis (DUPA)


  1. Determine the scope of works based on approved plans and specification

  2. Calculate the quantity and cost of material component of every item of work based on plans, specifications and prevailing prices

  3. Determine the appropriate quantity and cost for manpower and equipment requirement

  4. Determine the unit cost per item of work
• The appropriate number and category of supervisor including unskilled labor to be deployed depends on the specific type and complexity of an item of work to be done</b>
• Cost Estimation Process


  The Estimator shall determine the items of work involved based on the Approved Plans.

  2. The Estimator shall prepare the DUPA, ABC & POW including its attachments applying the items of work involved based on the latest standard labor rates & CMPD, standard cost sheets and D.O. 22, Series of 2015.

  3. The District Engineer shall approve the ABC & POW, if the project is within the limits of authority delegated to him/her.

  4. If beyond the authority of the DEO, forward the DUPA, ABC & POW and Approved Construction Plans together with the required attachments to the Regional Office for review/evaluation and approval, if the project is within the limits of the delegated authority of the Regional Director.

  5. If Planning and Design Division of the Regional Office will make an adjustment in the quantities and delete/add pay item/s in the submitted construction plans, the ABC & POW shall be adjusted accordingly by the District Engineering Office and resubmit the same for approval.

  6. If beyond the authority of the RO, forward the DUPA, ABC & POW and Approved Construction Plans together with the required attachments to the Bureau of Construction (BOC) and Bureau of Design (BOD) respectively, for review/evaluation for approval of the Assistant Secretary for Technical Services, Undersecretary for Technical Services or Secretary depending on the limits of authority.

  7. If Bureau of Design shall make an adjustment in the quantities and delete/add pay item/s in the submitted construction plans, the ABC & POW shall be adjusted accordingly by the Regional Office and resubmit the same for approval.
• Material Management Process


  1. Contract for construction is awarded

  2. Contractor begins awarding subcontracts and purchase orders

  3. General Conditions establish procedures for submittal of shop drawings and samples

  4. Purchase order describes materials to be supplied, quantities, and purchase amount

  5. Complex items have detailed specifications and drawings as part of purchase order
• Purchase Order

  • Quantity or number of items required
  • Item description
  • Unit price
  • Special instructions
  • Signatures of agents empowered to enter into a contractual agreement
• Approval Process


  1. Contract drawings are not specific enough, so subcontractors and suppliers must provide shop drawings, product data, and samples for approval

  2. Submittal may be approved, approved with noted corrections, or not approved and require resubmission
• Fabrication and Delivery Process

  1. Largest amount of time is lost or gained in this phase

  2. Duration depends on nature of material and physical transformation involved

  3. Contractor must employ methods to monitor materials throughout fabrication and delivery

  4. Delivery is checked for compliance with approved submittal