Philippines 2011

Construction Cost Handbook

Davis Langdon & Seah Philippines Inc.

The following handbook of information relating to the construction industry has been compiled by: Davis Langdon & Seah Philippines Inc. 4th Floor Kings Court I Building 2129 Pasong Tamo, Makati City Manila 1231 Philippines Telephone : 811 2971 Fax : 811 2071 Email : aph@dls.com.ph Website : www.dlsqs.com Davis Langdon & Seah Philippines Inc. 2011 All rights reserved. No part of this publication may be re-produced or copied in any form without prior written permission from Davis Langdon & Seah (Philippines).

If advise concerning individual projects is required, we would be happy to assist. Unless otherwise stated, costs reflected in this handbook are anticipated Manila costs in 4th Quarter 2010. Davis Langdon & Seah Philippines Inc. would like to acknowledge the assistance of Jones Lang LaSalle Leechiu in providing additional data and information for this publication.

Published by Davis Langdon & Seah (Philippines)

DAVIS LANGDON & SEAH (PHILIPPINES)

The information contained herein should be regarded as indicative and for general guidance only. Whilst every effort has been made to ensure accuracy, no responsibility can be accepted for errors and omissions, however caused.

CONSTRUCTION COST DATA

Construction Costs for Selected Asian Cities Construction Costs for Philippines M & E Services Costs for Philippines Construction Cost Specification Major Rates for Selected Asian Cities Retail Prices of Basic Construction Materials for Philippines Unit Cost for Ancillary Facilities for Philippines M & E Major Plant Costs for the Philippines Fit-out Costs for Philippines Kitchen Equipment Costs for Philippines

CONSTRUCTION COSTS FOR PHILIPPINES

18
PESO/m2 BUILDING TOTAL TOTAL SERVICES

CONSTRUCTION COSTS FOR PHILIPPINES

DESCRIPTION

1. CONSTRUCTION COST DATA

DOMESTIC Average standard apartments, high rise Luxury apartments, high rise Town houses Individual prestige houses
27,100 33,100 20,300 39,700 29,200 34,900 23,700 40,350 6,800 8,900 2,700 7,900 9,300 13,00 4,600 12,150 33,900 42,000 23,000 47,600 38,500 48,800 28,500 52,500

OFFICE/COMMERCIAL Average standard offices, high rise Prestige offices, high rise Shopping Centers
24,050 30,750 30,000 25,800 32,600 31,800 9,450 13,150 8,100 13,200 16,400 12,700 33,500 43,900 38,100 39,000 49,000 44,500

INDUSTRIAL Owner operated factories, low rise

12,300 13,850 3,900 6,650

16,200 -

20,500

HOTELS Resort hotels, inclusive of F.F.&E 3-star budget hotles inclusive of F.F.&E 5-star luxury hotels inclusive of F.F.&E
36,750 35,450 49,750 49,050 42,400 51,700 11,350 12,450 14,250 -

13,950 16,600 22,300

48,100 47,900 64,000 -

63,000 59,000 74,000

OTHERS Carparks, above ground General hospitals

13,750 36,400 17,700 39,600

3,250 12,600 -

5,000 21,400

17,000 49,000 -

22,700 61,000

Costs are at 4th Quarter 2010 levels. Manila building costs are expected to increase by approximately 0.5% per month (compounded) during 2011.

19

DAVIS LANGDON & SEAH (PHILIPPINES)

M & E SERVICES COSTS FOR PHILIPPINES

20
PESO/m2 FIRE LIFTS / PLUMBING TOTAL ELECTRICAL MECHANICAL SERVICES SERVICES S E R V I C E S S E R V I C E S ESCALATOR SERVICES 6,800 - 8,900 8,900 -12,700 2,700 - 4,600 7,900 -12,150 3,600 - 4,200 400 - 900 3,900 - 4,800 2,100 - 3,700 1,400 - 1,800 600 - 1,500 3,000 - 5,500 2,500 - 2,950 600 - 900 700 -1,300 800 - 1,500 1,400 - 1,800 800 - 1,500 1,400 - 2,600 700 - 1,500 2,400 - 3,700

M&E SERVICES COSTS FOR PHILIPPINES

DESCRIPTION

DOMESTIC Average standard apartments, high rise Luxury apartments, high rise Town houses Individual prestige houses

1. CONSTRUCTION COST DATA

OFFICE/COMMERCIAL Average standard offices, high rise Prestige offices, high rise Shopping Centers 9,450 -12,900 3,300 - 4,400 3,000 - 4,000 13,150 -15,950 4,800 - 6,000 4,000 - 4,300 7,900 -11,300 3,600 - 5,400 2,500 - 3,700 650 -1,100 1,600 - 2,200 900 - 1,500 650 -1,200 2,200 - 2,900 1,500 - 2,000 650 - 800 700 - 1,700 650 - 1,100

INDUSTRIAL Owner operated factories, low rise 3,900 - 6,650 2,000 - 3,500 650 - 1,050

550 - 900

700 - 1,200

HOTELS Resort hotels, inclusive of F.F.&E 11,300 -13,950 4,400 - 5,200 3,000 - 3,300 3-star budget hotles inclusive of F.F.&E 12,400 -15,350 4,700 - 5,500 3,300 - 5,000 5-star luxury hotels inclusive of F.F.&E 14,250 -20,950 5,400 - 8,400 4,000 - 6,000

650 - 950 1,500 - 2,000 1,800 - 2,500 650 -1,100 1,800 - 2,300 2,000 - 2,700 650 -1,100 1,800 - 3,000 2,400 - 3,800

OTHERS Carparks, above ground General hospitals

3,250 - 5,000 1,100 - 1,650 12,600 -20,150 5,000 - 7,700 4,200 - 6,500

550 - 750 1,100 - 1,700 500 - 900 750 -1,500 900 - 1,800 1,750 - 3,900

Costs are at 4th Quarter 2010 levels.

21

DAVIS LANGDON & SEAH (PHILIPPINES)

1. CONSTRUCTION COST DATA

CONSTRUCTION COST SPECIFICATION

The costs for the respective categories given on the previous pages are averages based on fixed price competitive tenders. It must be understood that the actual cost of a building will depend upon the design, procurement methods and many other factors and may vary from the figures shown. The costs per square metre are based on construction floor areas measured to the outside face of the external walls/external perimeter including lift shafts, stairwells, plant rooms, water tanks and the like. All buildings are assumed to have no basements (except otherwise stated) and are built on flat ground, with normal soil conditions and minimal external works. The costs exclude land cost, professional fees, finance and legal expenses. The standards for each category of building vary from country to country and do not necessarily follow those of Manila. FF&E refers to loose furnitures, fixtures and equipment. FF&E is excluded from office, residential and retail project costs, but are included in hotels and country club project costs. DOMESTIC Average standard apartments of 6-8 flats per floor, 50 m2 - 150 m2 per flat, facade comprising textured paint and punch window, internal finishes comprising wood parquet, plaster and paint and painted rubbed concrete to residential units and local ceramic tiles to toilets. Luxury residential facade comprised of window wall, textured paint with stone accents, finished with homogenous tiles, wood cladding and coved timber ceiling to lobby, combination of wood planks, plaster and paint and gypsum board to residential units and homogenous tiles to toilets. Air conditioning, gensets, automatic sprinkler system, complete plumbing and disposal system, complete fire alarm and detection system, CATV system are allowed for luxury apartments and prestige houses. 22 Services to standard apartment also include for paging system and Davit type gondola. Services to luxury residential also include CCTV cameras on lobby, track mounted type gondola and helipad provision. OFFICE/COMMERCIAL Based on buildings 30-40 storeys high with floor plans minimum 1,000 m2 per level. Average standard offices and shopping centres have bare finish and exclude A/C ducting and light fittings to tenants areas. Prestige offices have curtain wall elevations, stone finished lobbies. INDUSTRIAL Owner operated factories exclude manufacturing equipment, air-conditioning and special services provisions. HOTELS F.F. &E. includes interior decoration and loose furniture, etc. but excludes hotel operator's items (e.g. cutlery, crockery, linen etc.). Includes 1 level of basement. OTHERS Carparks to be multi-storey, above ground. Schools with standard government provisions. Student hostels to university standard. Hospitals include fit-out to nursing rooms, hospital facilities; services i.e., oxygen piping, A/C, genset, ultrapure water sytem, fire suppression system and special type plumbing fixtures; fit-out to doctors' offices is excluded.

23

DAVIS LANGDON & SEAH (PHILIPPINES)

1. CONSTRUCTION COST DATA

RETAIL PRICES OF BASIC CONSTRUCTION MATERIALS

Cement
Php / bag (40kg) 230 210 190 170 150 130 110 90 70 50 2006 2007 2008 Year 2009 2010 15 14 13 12 11 10 9 8 7 6

FOR PHILIPPINES

Ordinary Concrete Hollow Blocks

Php / piece

4" thk

6" thk

2006

2007

2008

2009 Year

2010

Aggregates
Php / m3 1,100 1,000 900 800 700 60 600 500 400 300 2006 2007 2008 Year 2009 2010
Sand Gravel

Timber
Php / bdft 140 120 100 80

40 20 0 2006 2007 2008 Year 2009 2010

So ftwo o d Hardwo o d

28

29

DAVIS LANGDON & SEAH (PHILIPPINES)

1. CONSTRUCTION COST DATA

RETAIL PRICES OF BASIC CONSTRUCTION MATERIALS

Reinforcing Bar (Intermediate Grade - Grade 40; 275 MPa) kg

FOR PHILIPPINES

Structural Steel (Angle Bar; A36)

Php / kg 75 70 65 60
1/4" x 2" x 20' 3/8" x 3" x 20'

Php / 65 60 55 50 45 40 35 30 25 20

1 6mm 32mm

55 50 45 40 35 30 25

2006

2007

2008 Year

2009

20010

2006

2007

2008 Year

2009

2010

Reinforcing Bar (High Yield Grade Grade 60; 10 MPa)

Php / kg 65 60 55 50 50 45 40 35 30 25 20 2006 2007 2008 Year 2009 2010 30 25
1 6mm 32mm

Structural Steel (Wide Flange)

Php / kg 60 55

14 x 30 lbs

45 40 35

2006

2007

2008 Year

2009

2010

30

31

DAVIS LANGDON & SEAH (PHILIPPINES)

1. CONSTRUCTION COST DATA

UNIT COSTS FOR ANCILLARY FACILITIES FOR PHILIPPINES

DESCRIPTION
SQUASH COURTS Single court with glass backwall including associated mechanical and electrical services but including any public facilities (enclosing structure not included) TENNIS COURTS Single court on grade with acrylic surfacing completed with chain link fence Single court on grade with artificial turf surfacing including chain link fence Extra for lighting SWIMMING POOLS Half Olympic (25m x 16m) 6-lanes outdoor swimming pool built in ground, fully tiled, per pool complete with 5m wide deck and associated equipment Half Olympic (25m x 16m) 6-lanes indoor swimming pool with suspended structure (enclosing structure not included) fully tiled and completed with 5m wide deck, including mechanical ventilation and associated equipment. Extra for heating equipment Extra for salt chlorine generator BASKETBALL COURTS Exposed court, approximately 975m2, including player benches and excluding equipment Covered court approximately 975m2, including metal viewing seats, built-in furnitures, provision for T&B, etc.* per court 3,400,000 7,200,000 GOLF COURSES (Based on Average Cost Model of an 18 hole golf course in Asia) per pool 11,200,000 Excluding fairway construction and rough hydroseeding per court 1,960,000 Sauna room for 4-6 people complete with all accessories (enclosing structure not included) STEAM BATHS Steam bath for 4-6 people complete with all accessories (enclosing structure not included) per room per room 500,000 per court 1,300,000

UNIT

PESO

DESCRIPTION
PLAYGROUND EQUIPMENT Outdoor playground equipment comprising various activities and safety mat SAUNAS

UNIT

PESO

per set

500,000 to 1,500,000

per court per court

2,400,000 500,000

500,000

per hole

20,000,000

per pool per pool

1,500,000 500,000

Including fairway construction and rough hydroseeding GOLF SIMULATOR Complete golf simulation system complete with projector, high impact projection screen, artificial grass putting turf, putting green cup and control computer with software overall size 4m x 7m x 3m high (enclosing structure not included)

per hole

25,000,000

per set

3,000,000 to 4,500,000

per court

17,550,000

* includes provision for forward/rear fold ceiling mounted basketball goal.

32

33

DAVIS LANGDON & SEAH (PHILIPPINES)

1. CONSTRUCTION COST DATA

M & E MAJOR PLANT COSTS FOR THE PHILIPPINES

DESCRIPTION
1. Water cooled electric chiller 2. Air-cooled electric chillers 3. Cooling Towers; induced draft 4. Air Handling Units (AHU) 5. Packaged water-cooled units (PWCU) 6. Fire Pumps; electric motor driven 7. Fire Pumps; diesel engine driven 8. Standby generator sets

UNIT
per TR per TR per GPM per TR per TR

COST (Php)
16,000 25,000 25,000 35,000

DESCRIPTION

UNIT

COST (Php)

9. Power transformers, with built-in primary protections; padmount

per KVA

1,600 6,000

1,500 2,000

10. Power transformers, with primary protection; silicon oil filled 11. Power transformers, with primary protection cast resin

per KVA

1,300 4,400

11,000 18,000 per KVA 16,000 21,000 2,0005,000

17,000 21,000

20,000 30,000

per HP per KW

22,000 25,000 5,500 9,000

NOTE:
1. 2. Rates are based on direct supply of imported quipment and materials by the developer. Rates include all government imposed taxes, import duties brokerage fees and allowances for local materials and installation cost. 3. 4. Rates exclude preliminaries and contingencies. Rates are based on fixed price tenders received in 4th Quarter 2010.

34

35

DAVIS LANGDON & SEAH (PHILIPPINES)

per HP

12. Sewage Treatment Plant; Sequencing Batch Reactor (SBR); including civil works

per m/day

1. CONSTRUCTION COST DATA

FIT-OUT COSTS FOR PHILIPPINES

DESCRIPTION
HOTELS Public Areas (Front of House) : 3-star Hotel 4-star Hotel 5-star Hotel Guest rooms : 3-star Hotel 4-star Hotel 5-star Hotel Notes : 1. Includes furniture, floor, wall and ceiling finishes, drapery, sanitary fittings and light fittings. 2. Excludes partitioning, M & E works, building shell, chandelier, operational items and equipment (e.g. bed, cutlery, crockery, linen, television, refrigerator, etc.), opening expenses, stage equipment and computer systems. COMMERCIAL Shopping centers Notes : 1. Mall/Public areas only; tenant area to be bare finish 2. See notes 1,2 & 3 below 18,000-22,000 18,000-22,000 24,000-28,000 30,000 up 16,000-18,000 20,000-25,000 25,000-35,000

PESO/m 2
OFFICES

DESCRIPTION

PESO/m2

Standard offices * Executive offices ** Banking lobby *** * Medium quality systems furniture ** High quality furnitures and finishes *** Imported stone finishes; double volume spaces Note : See notes 1, 2 & 3 below

18,000 - 26,000 35,000 - 50,000 55,000 - 65,000

RESTAURANTS General dining restaurant Fine dining restaurant 15,000 - 30,000 30,000 up

Note : Includes furniture, floor, wall and ceiling finishes, minor alteration to air-conditioning and fire services installation to suit layout, exhaust for kitchen but excludes exhaust flue, operational items (e.g. cutlery, crockery, linen, utensils, etc.).

NOTE:
1. Costs are at December 2010 Levels. 2. Costs include wall, floor, ceiling finishes, doors, FF&E, M&E Works service reticulation, preliminaries Forex US$1 : 44

3. Costs exclude operational equipment and supplies, structure, external enclosure, major M&E plant, financing and developers costs, professional and marketing fees.

36

(Cont'd)

37

DAVIS LANGDON & SEAH (PHILIPPINES)

1. CONSTRUCTION COST DATA

FIT-OUT COSTS FOR PHILIPPINES

(Cont'd)

KITCHEN EQUIPMENT COSTS FOR PHILIPPINES

DESCRIPTION
BUSINESS CLUB

DESCRIPTION
THEATRES / CINEMAS Theatres * Cinemas ** * Includes stage rigging and equipment, draperies, AV equipment projectors, screens, acoustics and seatings Includes screens, projection equipment, seats, finishes, ticketing booth

PESO/m 2

COST (Php)
15M - 20M

55,000 - 70,000 30,000- 45,000

500 - 900 m floor area

2

EXECUTIVE DINING 200 - 400 m2 floor area

15M - 25M

**

4 STAR HOTEL 50 - 150 rooms 5 STAR HOTEL

20M - 30M

BUSINESS CLUBS BAR / BILLIARDS * * Excluding kitchen equipment

45,000 - 70,000 40,000 - 45,000 OFFICE CANTEEN 200 - 300 m2 floor area 10M - 20M

NOTE: 1. Costs are at December 2010 Levels. 2. Costs include wall, floor, ceiling finishes, doors, FF&E, M&E Works service reticulation, preliminaries Forex US$1 : 44 3. Costs exclude operational equipment and supplies, structure, external enclosure, major M&E plant, financing and developers costs, professional and marketing fees.

38

39

DAVIS LANGDON & SEAH (PHILIPPINES)

AUDITORIUMS

50,000- 65,000

200 - 500 rooms

30M - 40M

GENERAL CONSTRUCTION DATA

Trends in Construction Cost for Philippines Construction Value Construction Activity Lead Time of Different Packages Utility Costs for Selected Asian Cities Estimating Rules of Thumb Progress Payments Construction Materials Wholesale Price Index Minimum Wage Average Earnings Index for Construction

2. GENERAL CONSTRUCTION DATA

TRENDS IN CONSTRUCTION COSTS FOR PHILIPPINES

Php / m2 (Thousands)
80 70 60 50 40 30 20 10 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year
Office Bldgs. - Grade A Residential - Luxury A pts. Retail Stores Hotels - 5-star

Building Construction Cost (Php/m 2 )

Y e a r Hotels Office Residential Retail US$ to Php

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

55,200 56,160 57,240 57,750 58,800 58,850 60,000 60,200 66,960 67,000 69,080

30,240 30,680 31,270 31,625 32,200 32,175 34,000 36,980 45,120 45,120 46,860

36,000 36,140 36,835 37,125 36,680 36,850 37,000 37,410 44,160 44,180 45,760

21,000 20,800 21,200 20,625 18,840 19,800 21,750 26,500 29,500 29,800 32,340

48.00 52.00 53.00 55.00 56.00 55.00 50.00 43.00 48.00 47.00 44.00

42

43

DAVIS LANGDON & SEAH (PHILIPPINES)

2. GENERAL CONSTRUCTION DATA

CONSTRUCTION VALUE
Construction Value (Php Billions) 105 90 75 60 6 45 4 30 2 15 0 0 2001 2002 2003 2004 2005 2006 Year 2007 2008 2009 2010* 12

CONSTRUCTION ACTIVITY
Usable Floor Area (Millions m)

Residential Non-Residential

10

Residential Non-Residential

2001

2002

2003

2004

2005

2006 Year

2007

2008

2009

2010*

Construction Value Php (1,000) Year Residential 2004 2005 2006 2007 2008 2009 2010*
* Forecast Source

Usable Floor Area (m) Year Residential 2004 2005 2006 2007 2008 2009 2010*
* Forecast Source

Non-Residential 40,032,078 33,560,552 50,772,217 53,240,552 50,718,172 48,895,248 81,079,077

Non-Residential 5,746,819 5,234,044 6,024,889 7,028,643 6,310,071 5,355,568 8,924,500

49,948,139 51,454,973 51,179,051 53,596,319 69,043,520 77,953,836 94,791,872

8,511,351 8,460,337 7,808,050 7,740,142 9,305,281 9,848,587 11,224,213

: www.census.gov.ph/data/sector data

: www.census.gov.ph/data/sector data

44

45

DAVIS LANGDON & SEAH (PHILIPPINES)

2. GENERAL CONSTRUCTION DATA

LEAD TIME OF DIFFERENT PACKAGES

Process Code* (in weeks) Packages Insitu Concrete Works
Structural steel frames Claddingcurtain walling Brickwork Roof finishesprofiled metal Windows Drylining, plaster and screeds Demountable partitions General joinery Raised floors Suspended ceilings Decorations (wall coverings) Stone wall and floor finishes 2 2 2 2 3 1 2 2 2 2 2 3 3 2 4 3 5 3 5

Process Code* (in weeks) Packages

Passenger lifts (non-standard) Escalators Mechanical pipework Ductwork

A
1 4 10 1 3 2 1

B
1 2 2 1 1 1 1

C
2 2 4 3 1

D
5 14 4 6 -

A
8 4 4 4 6 2 1 6 2 4 1 3 4 2 2

B
3 2 2

C
1 4 27 18 1 3 3 6 6 10 13 8

Sprinklers Air-conditioning plant Variable airvolume unit Electrical package Switchgear Generators (600 kW) Light fittings Security systems Controls Furniture Data and voice

2 2 1 3 2 2 1 3 3 2

4 3 3 6 4 3 4

* Process Code Legend: A - Working Drawing B - Approve working drawing C - Procurement of materials D - Manufacture

The lead time provided shall serve only as guide for use in projects, this is due mainly to the variability of factors like local customs processing/clearing, material availability, among others. Lead times do not refer to any particular building/project type and are based on average times. For example; Air-conditioning plant may require between six and twelve weeks depending on the plant specified or required. Therefore, an average of nine weeks has been used in the table.

46

47

DAVIS LANGDON & SEAH (PHILIPPINES)

2. GENERAL CONSTRUCTION DATA

Construction Materials Wholesale Price Index Base Year ( 1985 = 100 )
2009 Dec
ALL ITEMS A. Sand, stone and gravel B. Cement C. Lumber D. Plywood E. Wood Products F. Fuels and lubricants G. Asphalt H. Glass and glass prods. I. Hardware J. Metal Pipes K. PVC Pipes L. Concrete Products M. Plumbing Paints N. Paints O. Reinforcing Steel P. Structural Steel Q. GI Sheets

in the National Capital Region (NCR)

2010

2010 Jan
462.1 691.7 344.2 449.0 253.8 552.5 601.7 601.7 267.8 388.9 436.9 461.8 383.4 227.5 258.9 804.2 418.5 283.1 366.4 472.4 370.5 251.1 172.2 355.2 392.9 338.4

Ave

Feb

Mar

Apr
470.7 691.7 341.4 454.1 258.2 477.2 560.8 632.8 280.2 387.7 425.8 472.5 383.4 228.9 255.4 824.8 447.5 285.6 366.4 492.2 371.3 254.0 172.2 355.2 393.8 343.1

May
477.3

Jun

Jul

Aug

Sep

Oct

Nov

460.0 460.5 679.2 340.8 451.4 253.8 490.8 535.4 601.7 267.8 386.1 430.0 461.8 378.0 224.8 259.0 802.7 418.5 272.9 680.7 338.4 450.8 256.3 497.7 461.6 606.2 267.3 387.2 429.8 460.5 375.6 224.7 258.6 814.3 427.5 274.2 359.4 454.9 359.4 258.7 172.2 328.7 381.3 336.1

460.4 461.1 691.7 340.5 448.6 255.1 540.5 632.8 632.8 278.8 383.7 424.1 464.7 383.4 227.5 255.4 800.5 412.2 283.9 366.4 492.2 371.0 251.1 172.2 355.2 393.8 343.1 691.7 340.3 448.6 257.0 555.5 626.1 626.1 280.2 383.7 424.1 464.7 383.4 227.5 255.4 802.7 412.7 284.7 366.4 492.2 371.0 251.1 172.2 355.2 393.8 343.1

478.8 479.7 483.7 482.1 482.1 459.7

705.6 705.9 706.2 708.1 707.9 707.8 707.8 348.6 358.4 361.9 359.4 353.0 351.7 346.6 468.0 472.5 472.5 483.5 486.0 486.0 486.0 261.7 261.7 262.5 263.9 263.9 267.9 267.9 481.6 481.7 481.7 485.4 485.8 488.0 488.0 558.2 542.9 538.7 548.3 533.3 542.9 517.4 632.8 632.8 632.8 632.8 632.8 632.8 680.2 282.8 282.8 285.0 292.2 292.2 292.2 292.2 393.2 393.6 394.2 394.2 394.2 394.2 394.2 431.5 431.9 431.9 430.6 430.6 430.4 430.4 482.3 482.3 482.3 482.3 482.3 482.3 482.3 383.7 383.7 384.0 387.2 387.2 387.2 387.2 257.9 258.3 258.7 259.1 258.4 257.8 259.7 832.6 834.0 835.4 839.7 831.3 829.5 829.5 450.9 450.9 452.7 454.6 451.9 451.9 451.9 289.9 291.7 293.6 294.0 294.0 294.0 294.0 366.4 366.4 366.4 368.6 368.6 368.6 368.6 492.2 492.3 492.3 492.5 492.5 492.5 492.5 374.3 375.4 377.3 377.0 377.0 377.0 377.0 254.0 254.0 256.2 257.6 261.7 266.0 266.0 172.2 172.2 172.2 172.2 172.2 172.2 172.2 355.2 355.2 355.2 355.2 355.2 355.2 355.2 399.5 400.8 402.3 402.3 402.3 402.3 402.3 343.1 343.1 341.1 343.1 343.1 343.1 343.1 229.7 229.7 230.0 230.0 230.0 230.0 230.0

R. Aluminum & other Metal Products 361.4 S. Exterior Electrical Equipment Supplies T. Interior Electrical Equipment Supplies U. Tileworks V. Blasting Materials W. Machinery and Equipment Rental X. Electrical Rough-in Materials Y. PVC Pipes 453.5 361.4 261.2 172.2 328.7 382.3 338.4

Source: www.census.gov.ph/data/sectordata

54

55

DAVIS LANGDON & SEAH (PHILIPPINES)

2. GENERAL CONSTRUCTION DATA

MINIMUM WAGE
Peso per Day

AVERAGE EARNINGS INDEX FOR CONSTRUCTION

(1978 = 100)
YEAR ANNUAL January February March April May June July August September October November December 2,386.3 2,300.6 2,521.0 2,511.4 2,601.4 2,556.8 2010 2009 2,253.8 2,250.1 2,211.0 2,335.0 2,413.6 2,447.9 2,317.0 2,188.0 2,234.1 2,304.6 2,064.8 2,135.8 2,143.7 2008 2,206.3 2,165.1 2,121.2 2,232.5 2,312.7 2,365.6 2,255.8 2,168.7 2,146.7 2,193.6 2,131.2 2,163.0 2,219.3 2007 2,106.6 2,090.3 2,048.9 2,155.0 2,176.2 2,218.0 2,110.2 2,084.8 2,062.9 2,101.5 2,036.1 2,071.3 2,123.5

450.00 400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00
2000 2002 2004 YE A R 2006 2008 2010

Year 01 November 1990 01 January 1991 16 December 1993 01 April 1994 02 February 1996 01 May 1996 06 Febuary 1997 01 May 1997 06 February 1998 31 October 1999 01 November 2000 05 November 2001* 01 Febuary 2002* 25 June 2004* 16 June 2005 11 July 2006 28 August 2007 14 June 2008 28 August 2008 23 June 2010

Wage Order # NCR 01 NCR 02 NCR 03 NCR 03 NCR 04 NCR 04 NCR 05 NCR 05 NCR 06 NCR 07 NCR 08 NCR 09 NCR 09 NCR 10 NCR 11 NCR 12 NCR 13 NCR 14 NCR 14 NCR 15

Amnt. of Increase 17.00 12.00 17.00 10.00 16.00 4.00 15.00 5.00 13.00 25.50 26.50 15.00 15.00 20.00 25.00 25.00 12.00 15.00 5.00 22.00

Peso per Day 106.00 118.00 135.00 145.00 161.00 165.00 180.00 185.00 198.00 223.50 250.00 265.00 280.00 300.00 325.00 350.00 362.00 377.00 382.00 404.00

YEAR QUARTERLY Q1 Q2 Q3 Q4

2010

2009 2,253.8

2008 2,206.3 2,172.9 2,311.4 2,169.7 2,171.2

2007 2,106.6 2,098.1 2,168.1 2,083.0 2,077.0

2,402.6 2,556.6

2,265.4 2,392.8 2,242.2 2,114.8

* ECOLA (Emergency Cost of Living Allowance) Source : National Wages & Productivity Council, Department of Labor and Employment

56

57

DAVIS LANGDON & SEAH (PHILIPPINES)

OTHER INFORMATION
Philippine Map Public Holidays IDD Codes & Time Differences Conversion Factors DLS Professional Services Quality System Environmental Sustainability Development Management International Directory of DLS Offices

5. OTHER INFORMATION

PHILIPPINE MAP

PHILIPPINES KEY DATA

POPULATION Population (August 2007) Population# (2010) Urban Population * Population under 15 Population over 65 Ave. annual growth rate (2000 - 2007) GEOGRAPHY Land Area Agricultural Area (2009) Capital City (population Metropolitan Manila) (population Manila) ECONOMY 2010 Average Headline Inflation Rate (2000 = 100) Gross Domestic Product (GDP) (1Q to 3Q) GDP per capita Php 6,083.444bn Php 68,685.15 3.81% 300,000 km2 42.98% Manila 11.55M 1.66M 88.57M 94.01M 30.14% 31.97% 3.31% 2.04%

CONSTRUCTION (1Q to 3Q) Gross value of const. output Net value of const. output Net value of const. output as a proportion of the GDP Php 610.214bn Php 356.032bn 4.18%

* Population of Philippines key cities only # Forecast / Projected

86

87

DAVIS LANGDON & SEAH (PHILIPPINES)

Monetary Unit

Peso

5. OTHER INFORMATION

DLS PROFESSIONAL SERVICES Normal Services :

Preliminary cost advice and cost planning Advice on the type of contractual arrangements to be used Advice on obtaining tenders Preparation of tendering documents Negotiation with contractors Visiting site and valuation of works in progress Assessing the cost of proposed variations Attending site and other meetings Preparation of financial statements Settlement of final cost with contractors and sub-contractors Advice on contractors claims

Special Services :
Construction feasibility studies Budget formulation Analysis of cost/design options Cost planning Value engineering Cash flow evaluations Cost monitoring and/or cost control of construction works Project management or co-ordination Reinstatement assessments for fire insurance Quantifying mechanical and electrical Quantifying civil engineering works Definition and operation of plant procurement programmes Cost engineering Evaluation and operation of serial (maintenance) contracts Financial evaluation of package bid contracts Cost and contract research Advice on litigation Tax treatment of construction expenditure Research and consultancy in all aspects of construction economics Interior decoration and fitting-out works Preparation of fixed asset registers installation works

100

101

DAVIS LANGDON & SEAH (PHILIPPINES)

5. OTHER INFORMATION

QUALITY SYSTEM
DLS Philippines Inc. attained ISO 9001 accreditation in September 1998 then successfully converted to ISO 9001:2000 in December 2003 and to ISO 9001:2008 in January 2010. In addition to the Quantity Surveying Services, DLS Philippines Inc. was also certified for ISO 9001:2008 for the following: a) Development Management Consultancy Services for Building and Engineering Sector; and b) Envrionmental Sustainability Consultancy Services for Building and Engineering Sector DLS Philippines Inc. recognises the importance of Quality Assurance especially in a country where Quantity Surveying is not a well recognized profession and quality service is of paramount importance. The establishment of a standard quality control system for all aspects of the services being provided, coupled with our inhouse staff training programmes, ensures that DLS Philippines continues to provide the best services available to our clients.

ENVIRONMENTAL SUSTAINABILITY
Overview of Leadership in Energy & Environmental Design (LEED)
The U.S. based Leadership in Energy & Environmental Design (LEED) Green Building System is a voluntary third-party rating system in which credits are earned for satisfying specified green building criteria. Projects are evaluated within six environmental categories. Sustainable Sites Water Efficiency Energy & Atmosphere Materials & Resources Indoor Environmental Quality Innovation & Design

102

103

DAVIS LANGDON & SEAH (PHILIPPINES)

Certified, Silver, Gold and Platinum levels of green building certification are awarded based on the total credits earned.

5. OTHER INFORMATION

ENVIRONMENTAL SUSTAINABILITY
Professional Services Professional Services
Construction Pre Design
Integrated sustainable design consulting ensures available opportunities are recognized and explored Assist in team selection Evaluate project-specific opportunities and challenges based on target LEED Certification Create project-specific green guidelines Provide pre-bid conferences and contractor training Assist during construction, including submittals and progress reports Monitor the implementation of green guidelines or green site conditions

Operations
Perform post-occupancy project audits lessons learned Provide benchmarking of portfolio performance

Design
Team members work closely and effectively towards a green solution. Create sustainable design checklist including schedule and design implications Thoroughly evaluate design at key stages and provide detailed instructions to the design team Monitor design team responsibilities Coordinate cost analysis with sustainable design goals Liaise with USGBC Assist and compile LEED documentation for certification

Being part of LEED Global Linkage

Davis Langdon & Seah (Phils) Inc. is a member of US Green Building Council (USGBC) and the Philippine Green Building Council (PGBC). Our environmental sustainability services employed highly skilled Leadership in Energy & Environmental Design Accredited Professionals (LEED-RAP).

104

105

DAVIS LANGDON & SEAH (PHILIPPINES)

5. OTHER INFORMATION

ENVIRONMENTAL SUSTAINABILITY
Green Building Facts
An Up-front investment of 2-5% in green building design, on average, results in life cycle savings of 20% of the total construction cost.
Source: The Costs and Financial Benefits of Green Buildings: A report to Californias sustainable Building Task Force, October 2003.

DEVELOPMENT MANAGEMENT
OUR APPROACH We provide advice and consulting services at strategic, policy and operational levels, concentrating on three key areas: Improving business performance Making development and construction more sustainable Assessing market potential and key trends

Operating cost decrease 8-9% Building value increase 7.5% Return on investment improved 6.6% Occupancy ratio increase 3.5% Rent ratio increases 3%
Source: McGraw Hill Construction, Greening of Corporate America SmartMarket Report, 2007.

Our multidisciplinary team is skilled in change management, process improvement, procurement, sustainability, economics, market analysis and research. In everything we do, we are committed to creating value for our clients by: Working collaboratively with them Developing a deep understanding of their needs and aspirations Providing tailor-made solutions Being accessible and responsive

Green buildings consume less energy and fewer resources Green buildings consume 15-20% average less energy than conventional buildings Green buildings save, on average, 40% of drinkable / potable water Corporate perception of whether green fosters innovation: 57% agree; 28% neutral and 15% disagree.
Source: McGraw Hill Construction, Greening of Corporate America SmartMarket Report, 2007.

PROJECT MANAGEMENT
Integrated Project Management is based on four distinctive phases in the project life cycle: 1. Business Needs and Project Inception In the early stages of a project, Davis Langdon & Seah creates the conditions for success by defining a set of value drivers based on an understanding of all stakeholder interests and requirements.

106

107

DAVIS LANGDON & SEAH (PHILIPPINES)

5. OTHER INFORMATION

We consider needs, identify risk and can assist with business planning. Where appropriate, we assist with the production of feasibility and cost estimates, the development of master plans, option appraisals, overseeing of site acquisitions, management of planning consents and advice on funding strategies. We work with clients to manage the appointment of suitable consultants, including the agreement of services and fees. 2. Project Strategy & Development At the early development stage we compile strategic and design briefs and produce an overall project execution plan. We oversee the production of costs to agree budgets and provide a detailed master programme for project delivery. We recommend the most appropriate procurement strategy and manage the selection of the best value construction team. We provide a single point of contact for the client when dealing with third parties, contractors and suppliers. 3. Project Control & Delivery Prior to commencing, we make sure that a commercially viable solution has been agreed, that all contracts are administered in the correct form and that necessary management procedures are in place. We set up systems and processes to enable the sharing of information, management of change and identification of potential risks to successful project delivery. We monitor quality, time and costs and provide leadership to the team, resolving issues, liaising with third parties, and reporting on progress as agreed with the client.
108

4. Commissioning & Asset Management In the final stages of the project, we oversee commissioning, agree completion, settle final accounts and enable the smooth transition of the asset through to ongoing management. Post-handover, we instigate project reviews and feed lessons learned to the client for future

PLANNING
The planning and programming team is a multifunctional group of professionals who are dedicated to the primary management requirement of planning and programming. Our approach is to assist in controlling progress, not simply monitoring it. Benefits Professional planning and programming Enhances management's understanding of progress and assists trade-offs and decision making Reduces uncertainty in project completion deadlines Avoids costly time overruns Provides expert advice that designers and clients understand Gives high quality clear outputs that make a real contribution to project success Enables corrective action advice to mitigate programme slippages and variations

109

DAVIS LANGDON & SEAH (PHILIPPINES)

4th Floor, Kings Court 1 Building 2129 Pasong Tamo, Makati City 1231, Philippines Tel: (632) 811 2971 Fax: (632) 811 2071 manila@dls.com.ph