Construction Cost Philippines 2016.pdf

Construction Cost Handbook

PHILIPPINES 2016

Langdon & Seah Philippines Inc.

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Handbook Cover Photos: 1. Proscenium - (upper left side) 2. ArthaLand Century Pacific Tower - (upper right side) 3. City of Dreams - (bottom)

Published by Langdon & Seah Philippines Inc.

The following handbook of information relating to the construction industry has been compiled by: Langdon & Seah Philippines Inc. An Arcadis Company 4th Floor King’s Court I 2129 Chino Roces Avenue, Makati City 1231, Philippines Telephone Fax Email Website

: : : :

(632) 811 2971 (632) 811 2071 [email protected] www.LangdonSeah.com

© Langdon & Seah Philippines Inc. 2016 All rights reserved. No part of this publication may be re-produced or copied in any form without prior written permission from Langdon & Seah Philippines Inc. 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. If advice 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 2015. Langdon & Seah Philippines Inc. would like to acknowledge the assistance of Jones Lang LaSalle in providing additional data and information for this publication.

INTRODUCTION

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TABLE OF CONTENTS Page No. Index Calendar About ARCADIS Philippines Vision / Mission Statement

4 6 7

1. CONSTRUCTION COST DATA Construction Costs for Selected Asian Cities M & E 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

12 18 24 26 28 30

Unit Costs for Ancillary Facilities for Philippines M & E Major Plant Costs for Philippines Fit-out Costs for Philippines Kitchen Equipment Cost for Philippines

40 42 44 47

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2. GENERAL CONSTRUCTION DATA Trends in Construction Costs 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 Construction Materials Wholesale Price Index in the NCR

2

51 52 53 54 56 58 60 62 64 65

TABLE OF CONTENTS

Page No.

3. PROPERTY COMMENTARY Commercial Residential Hotels and Serviced Apartments Retail Industrial

69 70 71 72 74

4. FINANCIAL Philippines Key Data Economic Highlights Financial Definitions Financial Formulae Mortgage Repayment Table Consumer Price Index Exchange Rates Currency Charts Prime Rates Manila Reference Rate

78 79 80 81 82 83 84 86 90 91

5. OTHER INFORMATION Philippine Map Public Holidays IDD Codes & Time Differences Conversion Factors Langdon & Seah Professional Services

94 95 104 106 108

Quality System Environmental Sustainability Development Management International Directory of Langdon & Seah Offices

110 112 116 119

TABLE OF CONTENTS

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CALENDAR JANUARY M

T W T

4 5 6 7 11 12 13 14 18 19 20 21 25 26 27 28

FEBRUARY

F S S 1 2 3 8 9 10 15 16 17 22 23 24 29 30 31

M T W 1 2 3 8 9 10 15 16 17 22 23 24 29

APRIL

2016

M

T W T

4 5 6 7 11 12 13 14 18 19 20 21 25 26 27 28

T W T

4 5 6 7 11 12 13 14 18 19 20 21 25 26 27 28

M 2 9 16 23 30

T W T

F

3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28 31

M 1 8 15 22 29

S 1 8 15 22 29

2017

2 9 16 23 30

T T W W T T

F F

3 4 5 6 10 11 12 13 17 18 19 20 24 25 26 27 31

T 2 9 16 23 30

M 7 14 21 28

T 1 8 15 22 29

M

F

S S 1 7 8 14 15 21 22 28 29

W T F S 3 4 5 6 10 11 12 13 17 18 19 20 24 25 26 27 31

W 2 9 16 23 30

T

W 1 8 15 22 29

6 7 13 14 20 21 27 28

6 13 20 27

FF 3 10 17 24

M 5 12 19 26

MM 1 8 15 22 29

TT 2 9 16 23 30

M

T 1 8 15 22 29

W W TT 3 4 10 11 17 18 24 25 31

FF 5 12 19 26

5 12 19 26

OCTOBER

M

T W T

F S

2 9 16 23 30

3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28 31

S 1 8 15 22 29

7 14 21 28

W 2 9 16 23 30

M

SS 6 13 20 27

M

T

6 7 13 14 20 21 27 28

W 1 8 15 22 29

T W T F S 1 2 3 6 7 8 9 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30 31

S 4 11 18 25

T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

JUNE S S 7 14 21 28

T F S S 3 4 5 6 10 11 12 13 17 18 19 20 24 25 26 27 31

NOVEMBER M

S 4 11 18 25

MARCH

SS SS 4 5 11 12 18 19 25 26

T W T F S 1 2 3 5 6 7 8 9 10 12 13 14 15 16 17 19 20 21 22 23 24 26 27 28 29 30

AUGUST S S 1 2 8 9 15 16 22 23 29 30

T W T F S 1 2 3 6 7 8 9 10 13 14 15 16 17 20 21 22 23 24 27 28 29 30

DECEMBER M

MAY S S 2 9 16 23 30

T F S S 2 3 4 5 9 10 11 12 16 17 18 19 23 24 25 26 30

SEPTEMBER S 7 14 21 28

T F S S 3 4 5 6 10 11 12 13 17 18 19 20 24 25 26 27

T W TT 1 2 7 8 9 14 15 16 21 22 23 28

JULY T W T

M

T F S S 3 4 5 6 10 11 12 13 17 18 19 20 24 25 26 27 31

JUNE F

3 4 5 6 10 11 12 13 17 18 19 20 24 25 26 27 31

APRIL

3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28 31

4

T W T

FEBRUARY

S S S S 1 7 8 14 15 21 22 28 29

M M TT W W TT FF S S 1 3 4 5 6 7 8 10 11 12 13 14 15 17 18 19 20 21 22 24 25 26 27 28 29 M

W 2 9 16 23 30

NOVEMBER S 2 9 16 23 30

JANUARY M M

7 14 21 28

T 1 8 15 22 29

AUGUST

F S S 1 2 3 8 9 10 15 16 17 22 23 24 29 30 31

OCTOBER M

M

MAY

F S S 1 2 3 8 9 10 15 16 17 22 23 24 29 30

JULY M

MARCH

T F S S 4 5 6 7 11 12 13 14 18 19 20 21 25 26 27 28

T F S S 2 3 4 5 9 10 11 12 16 17 18 19 23 24 25 26 30

S 4 11 18 25

SEPTEMBER M

T W T

4 5 6 7 11 12 13 14 18 19 20 21 25 26 27 28

M

F S S 1 2 3 8 9 10 15 16 17 22 23 24 29 30

DECEMBER T W T

4 5 6 7 11 12 13 14 18 19 20 21 25 26 27 28

F S S 1 2 3 8 9 10 15 16 17 22 23 24 29 30 31

CALENDAR

JANUARY

M T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

APRIL M

T W T

F

5 12 19 26

S S 1 7 8 14 15 21 22 28 29

M

S S 1 7 8 14 15 21 22 28 29

M

7 14 21 28

JULY

M

T W T

F

2 9 16 23 30

3 4 5 6 10 11 12 13 17 18 19 20 24 25 26 27 31

M M 1 8 15 22 29

T T 2 9 16 23 30

T T 4 11 18 25

F F 5 12 19 26

S S 6 13 20 27

S S 7 14 21 28

6 13 20 27

W W 2 9 16 23 30

TT 3 10 17 24 31

FF 4 11 18 25

5 12 19 26

SS 5 12 19 26

M

M 7 14 21 28

F S S 5 6 7 12 13 14 19 20 21 26 27 28

T F S S 3 4 5 6 10 11 12 13 17 18 19 20 24 25 26 27 31

CALENDAR

S 5 12 19 26

S 4 11 18 25

S 6 13 20 27

M

T W T

S 5 12 19 26

T W T 1 6 7 8 13 14 15 20 21 22 27 28 29

F 2 9 16 23 30

S 3 10 17 24

S 4 11 18 25

T F S 1 2 3 5 6 7 8 9 10 12 13 14 15 16 17 19 20 21 22 23 24 26 27 28 29 30 31 F S 1 2 4 5 6 7 8 9 11 12 13 14 15 16 18 19 20 21 22 23 25 26 27 28 29 30

F S SS 1 2 3 7 8 9 10 14 15 16 17 21 22 23 24 28

6 13 20 27

T 2 9 16 23 30

F 3 10 17 24 31

SEPTEMBER

M

T W T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

M

DECEMBER T W T

5 12 19 26

T W T 1 6 7 8 13 14 15 20 21 22 27 28 29

F 2 9 16 23 30

3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28 31

T W T

4 5 6 7 11 12 13 14 18 19 20 21 25 26 27 28

F 1 8 15 22 29

S 1 8 15 22 29

S 2 9 16 23 30

M

T W

T F S S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

M

T W T

S 2 9 16 23 30

F

3 4 5 6 7 10 11 12 13 14 17 18 19 20 21 24 25 26 27 28

S 1 8 15 22 29

S 2 9 16 23 30

SEPTEMBER

S S 3 4 10 11 17 18 24 25 31

NOVEMBER M

F

JUNE S S 4 5 11 12 18 19 25 26

AUGUST M

S 3 10 17 24

MARCH

T W T

T W 1 7 8 14 15 21 22 28 29

S 4 11 18 25

JUNE

MAY M

OCTOBER

T W 1 2 8 9 15 16 22 23 29 30

T W T F 1 2 3 7 8 9 10 14 15 16 17 21 22 23 24 28 29 30 31

4 5 6 11 12 13 18 19 20 25 26 27

JULY T 4 11 18 25

F 4 11 18 25

T W

S 3 10 17 24

M

T W T

2 3 9 10 16 17 23 24 30 M

4 11 18 25

5 12 19 26

F 6 13 20 27

S S 1 7 8 14 15 21 22 28 29

2019

T W T F S SS 2 3 4 5 6 7 9 10 11 12 13 14 16 17 18 19 20 21 23 24 25 26 27 28 30

M T W 1 2 3 8 9 10 15 16 17 22 23 24 29 30 31

MAY

W T 2 3 9 10 16 17 23 24 30 31

M

FEBRUARY SS 6 13 20 27

APRIL M 1 8 15 22 29

T 1 8 15 22 29

MARCH

S 4 11 18 25

NOVEMBER M

JANUARY M M TT 1 7 8 14 15 21 22 28 29

T W T F S 1 2 3 6 7 8 9 10 13 14 15 16 17 20 21 22 23 24 27 28

AUGUST

OCTOBER W W 3 10 17 24 31

FEBRUARY

2018

2 3 4 5 6 9 10 11 12 13 16 17 18 19 20 23 24 25 26 27 30

M

DECEMBER T W T

2 3 9 10 16 17 23 24 30 31

4 11 18 25

5 12 19 26

F

6 13 20 27

S S 1 8 15 22 29

7 14 21 28

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ARCADIS PHILIPPINES

ARCADIS PHILIPPINES Arcadis Philippines which incorporates Langdon & Seah Philippines Inc. (LSPI) is the country’s leading provider of construction consultancy services. Established in 1982 as the first Quantity Surveying company in the Philippines, it has grown to 350 staff and increased its services to provide Development Management, Environmental Sustainability and Water Consultancy Having worked on over 500 projects nationwide, covering both the private and public sectors, including infrastructure, residential, commercial, industrial, educational, health care, recreation facilities, hospitality and interior fit outs, the company’s experience, comprehensive cost and benchmarking database allows it to continue leading and setting the standards for consultancy services within the Philippine Construction Market. LSPI merged with the Arcadis Group in 2012 providing it with a global reach and the ability to call on the expertise and experience of over 28,000 professional staff from 350 offices around the world. Increasing its capabilities to providing planning, architectural design, engineering and management services, infrastructure, water, environment and building consultancy services.

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ARCADIS PHILIPPINES

LANGDON AND SEAH PHILIPPINES INC. Vision To be the leading Cost and Quantity Surveying, Environmental Sustainability and Development Management Consultant in the Philippines built environment providing the highest level of excellence in professionalism and integrity, working on modern, leading edge projects - integrating and coordinating each of our business lines.

COST AND QUANTITY SURVEYING Vision To be the leading Cost and Quantity Surveying Consultant in the Philippines built environment, providing the highest level of excellence in professionalism and integrity, working on modern, leading edge projects – integrating and coordinating our Cost and Quantity Surveying Consultancy with our other service lines of Environmental Sustainability and Development Management.

Mission Protecting the interests of our Clients, we commit to: • Provide our Clients with proactive, integrated service where we are working on the project covering more than one role. • Establish partnerships with major Clients, working together as an integral part of their management team. • Provide our Clients with service over and above their requirements through enhanced understanding of their needs. • Provide our Clients accurate and dependable services taking into account their needs and procurement options. Being the greatest assets of the Company, we commit to the growth and development of our Staff by: • Providing training, an exciting work environment and a competitive remuneration package. • Providing opportunities for career growth and professional development. • Encouraging and providing time and resource to gain external accreditation and qualifications in the field of Cost Consultancy and Quantity Surveying services at the earliest time.

VISION MISSION STATEMENT

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VISION MISSION STATEMENT

We commit to continuously protect the interest of our Stockholders by: • Maintaining and upholding our Chartered status with the RICS. • Maintaining our Quality Assurance accreditation while being committed to continual improvement. • Producing marketing materials and marketing strategy to diversify and widen our client base on Cost Consultancy and Quantity Surveying services. We commit to our responsibility to our Society, hence; • We contribute to socio civic works as a conscientious organization.

ENVIRONMENTAL SUSTAINABILITY Vision To be the leading Environmental Sustainability Consultant in the Philippines built environment, providing the highest level of excellence in professionalism and integrity, working on modern, leading edge projects – integrating and coordinating our Environmental Sustainability Consultancy with our other service lines of Development Management, Cost and Quantity Surveying Consultancy.

Mission Protecting the interests of our Clients, we commit to: • Provide LEED, BERDE and BREAM accreditation consultancy services and expanding this to a capability in other S.E. Asian accreditation systems such as Greenmark (Singapore). • Provide our Clients with a proactive, integrated service guiding them through the accreditation process and educating key parties where there is lack of past experience/familiarization with the process. • Provide our Clients with service over and above their requirements by achieving the project’s targeted sustainability certification, striving to go beyond the project’s pursued level within a reasonable cost and time. Being the greatest assets of the Company, we commit to the growth and development of our Staff by: • Providing training, an exciting work environment and a remuneration package that exceeds the highest local benchmark competitors. 8

VISION MISSION STATEMENT

• Providing opportunities for career growth and professional development. • Encouraging and providing time and resource to gain external accreditation, specialization seminars and qualifications in the field of environmental sustainability consultancy services at the earliest time. We commit to continuously protect the interest of our Stockholders by: • Developing the company as the foremost energy modeling center in the region, well-versed over a range of accredited software; that clients and other LS companies in S.E. Asia might refer for modeling services. • Expanding our Consultancy Services into other related fields such as carbon assessment, daylight simulation and commissioning works. • Developing our Consultancy Services to increase our involvement in the existing built environment as well as new build developments. • Producing marketing materials and marketing strategy to diversify and widen our Client base on Environmental Sustainability Consultancy. • Maintaining our Quality Assurance accreditation while being committed to continual improvement. We commit to our responsibility to our Society, hence; • We contribute to socio civic works as a conscientious organization.

DEVELOPMENT MANAGEMENT Vision To be the leading Development Management Consultant in the Philippines built environment, providing the highest level of excellence in professionalism and integrity, working on modern, leading edge projects – integrating and coordinating our Development Management Consultancy with our other service lines of Environmental Sustainability, Cost and Quantity Surveying Consultancy.

VISION MISSION STATEMENT

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VISION MISSION STATEMENT

Mission Protecting the interests of our Clients, we commit to: • Provide a high level Client’s Representative service incorporating strategic procurement advice, project management, planning, risk avoidance and programming services. • Provide our Clients with a proactive, integrated service where we are working on the project covering more than one role. • Establish partnerships with major Clients, working together as an integral part of their management team. • Guide our Clients through the development process and educating key parties where there is lack of past experience/familiarization with the process. • Provide our Clients with service over and above their requirements through enhanced understanding of their needs. Being the greatest assets of the Company, we commit to the growth and development of our Staff by: • Providing training, an exciting work environment and a competitive remuneration package. • Providing opportunities for career growth and professional development. • Encouraging and providing time and resource to gain external accreditation and qualifications in the field of Development Management services at the earliest time. We commit to continuously protect the interest of our Stockholders by: • Producing marketing materials and marketing strategy to diversify and widen our client base on Development Management services. • Maintaining our Quality Assurance accreditation while being committed to continual improvement. We commit to our responsibility to our Society, hence; • We contribute to socio civic works as a conscientious organization.

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VISION MISSION STATEMENT

CONSTRUCTION COST DATA

1

Construction Costs for Selected Asian Cities M & E 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 Philippines Fit-out Costs for Philippines Kitchen Equipment Costs for Philippines

12

860 - 920 1,170 - 1,310 605 - 690 1,280 - 1,370

Budget hotels - 3 star, mid market Business hotels - 4/5 star Luxury hotels - 5 star

HOTELS

1,180 - 1,375 1,350 - 1,685 1,575 - 2,030

Medium/high rise offices,average standard 820 - 870 High rise offices prestige quality 1,260 - 1,365 Out-of-town shopping centre, ave. standard 735 - 870 1,080 - 1,260 Retail malls, high end

OFFICE/COMMERCIAL

DOMESTIC

Apartments, high rise, average standard Apartments, high rise, high end Terraced houses, average standard Detached houses, high end

MANILA

4.010 - 4,330 4,210 - 4,970 4,920 - 5,710

3,080 - 3,650 3,820 - 4,710 3,140 - 3,690 4,180 - 4,960

3,140 - 3,690 4,240 - 4,940 4,310 - 5,030 5,580 - 6,350

HONG KONG

575 - 665 835 - 1,130 515 - 615 635 - 825

305 - 460 735 - 880 210 - 305 715 - 880

KUALA LUMPUR

965 - 1,350 2,180 - 2,360 2,790 - 3,145 1,675 - 1,960 2,790 - 3,145 1,855 - 2,175

1,750 - 1,930# 1,930 - 2,145# 1,930 - 2,075 2,075 - 2,290

1,360 - 1,540 2,075 - 3,075 1.750 - 1,965 2,215 - 2,930

SINGAPORE

(US$/m 2) BRUNEI

813 - 1,116 1,149 - 1,453 789 - 1,092 1,040 - 1,343 1,053 - 1,165 1,537 - 1,840 1,348 - 1,544 2,167 - 2,471 1,573 - 1,685 2,225 - 2,528

590 - 730 772 - 983 576 - 744 772 - 800

604 - 730 813 - 1,116 899 - 1,067 1,004 - 1,307 421 - 505 526 - 829 730 - 885 800 - 1,103

BANGKOK

1 CONSTRUCTION COST DATA CONSTRUCTION COSTS FOR SELECTED ASIAN CITIES

CONSTRUCTION COST DATA

CONSTRUCTION COST DATA

13

INDUSTRIAL

RM 4.33

N/A 1,610 - 1,750 2,000 - 2,145

2,790 - 2,930 S$ 1.40

2,590 - 2,810 2,540 - 2,950 3,970 - 4,490

5,130 - 5,830

Exchange Rate Used : US$1 =

PHP 47.00

Singapore

Rates are nett of GST and exclusive of contingencies # Includes raised floor and ceiling to tenanted areas but excludes office carpets (normally under tenant's fit-out) ^ Open on all sides with parapet

Bangkok

The above costs are at 4th Quarter 2015 levels, inclusive of preliminaries Hong Kong unless otherwise stated. Manila building costs are expected to increase by approximately 0.5% per month (compounded) during 2015. Manila Rates are exclusive of contingencies & include 12% VAT

HK$ 7.80

835 - 1,040

945 - 1,290 665 - 945^

2,370 - 2,950 1,470 - 1,730

1,843 - 2,146 B$ 1.37

N/A BAHT 35.61

610 - 913 713 - 1,016 1,640 - 1,943

N/A 416 - 720

505 - 660 168 - 270 N/A N/A N/A

511 - 814

375 - 678

N/A

449 - 562

Rates are exclusive of contingencies Offices of average standard are built to the following provisions: (i) Curtain wall/window wall facade (ii) Tenant are with screeded floor, painted wall and ceiling Schools (primary and secondary) are of public authority standard, no a/c and complete with basic external works. Rates exclude VAT and contingencies

210 - 235 265 - 295 560 - 610

345 - 475 200 - 255

415 - 465

N/A

2,410 - 3,060

305 - 385

560 - 650

740 - 945

N/A

450 - 460

Underground/basement car parks (