Cost Estimation

Real talk about construction costs

Hey, Daniel here. Every time I ask “how much to build a house?”, I get a different answer.

• 20k per sqm?
• 30k?
• 50k?

Short answer: 20k is a myth (unless you want bare concrete). 35k is realistic for “nice but simple”. 50k+ is where it starts looking like Pinterest.

why the prices are fake

Contractors quote low to get the job. “Sir, 25k per sqm only!” Then halfway through:

• “Sir, tiles not included.”
• “Sir, gates separate quote.”
• “Sir, fence is extra.”

Suddenly your 25k house is 40k.

the “rough” breakdown

(don’t quote me on this, prices change every week seriously)

Structural (30-40%)

• Concrete, rebar, labor.
• Boring but keeps the house standing.
• Cement prices fluctuate like crazy so… pad this budget.

Finishes (30-40%)

• This is where you bleed money.
• Tiles: 500/sqm or 5000/sqm? your call.
• Windows: Aluminum or uPVC? (uPVC is double the price).
• Doors: Solid wood? Hollow core?

MEP (Mechanical, Electrical, Plumbing) (10-15%)

• Wires, pipes, septic tank.
• Don’t cheap out on wires. Fire is bad.

The “Project Management” Fee (10-20%)

• The contractor’s profit.
• Sometimes hidden in material markups.

BOM (Bill of Materials) is king

Don’t accept “global estimate”. Ask for the BOM. Line by line. “100 bags cement @ 230 pesos.” “500 hollow blocks @ 18 pesos.”

If they won’t give you a BOM? Run. They’re hiding something.

doing it yourself? (owner-builder)

You can save like 20-30%. BUT. Do you know how to check rebar spacing? Do you know if the mix is wet enough? Do you have time to chase suppliers when the truck is late?

My friend tried this. Saved 500k. Aged 10 years in 6 months. Worth it? idk.

the hidden costs

• Fences (expensive!)
• Gate
• Driveway
• Utilities connection (Meralco/Water lines can cost 50k+)
• Permits (don’t ask. just budget 50k-100k and cry)
• “Snacks” for workers (merienda is mandatory culture)

bottom line

Budget what you think it costs. Add 20%. Then add another 10% for “oops”.

And whatever you do… never pay full upfront. Ever.