Loberiano, M. RORO Port Comparative Research

Project Cost: Passenger Terminal Building in Port of Benit and Port of Sebaste 1

Far Eastern University

Institute of Architecture and Fine Arts

Nicanor Reyes St., Sampaloc, Manila

PROJECT COST ESTIMATE: COMPARATIVE RESEARCH OF RORO PORT

PASSENGER TERMINAL BUILDING

A Statistical Method of Research Comparing Port of Benit and Port of Sebaste

A Research Presented to

Arch. Arnulfo Dado

Far Eastern University – Manila

In Partial Fulfilment

of the Requirements for

PROPRAC 451

by

LOBERIANO, MICAH GERALDINE B.

AR0851

July 19, 2012


I. ABSTRACT

Given that port development plays an important role to the progress of a particular region

and state, the Medium Term Development Plan (MTDP) of the Philippines (2004-2010)

takes into consideration the demand for transportation in the archipelagic nature of the

Philippines is significant. According to MPDC (2004), the development of Roll-On Roll-Off

ports answer the need for transportation to a fast and cheap connectivity of regions in Luzon,

Visayas, and Mindanao in transporting people, shipping cargo and goods. As Port of Sebaste

represents Western Philippines, Port of Benit for Eastern Philippines, and BALWARTECO

RORO Port represents my thesis study, the purpose of the study is to determine the range of

estimated project cost of the passenger terminal building of the three given ports. Also, the

study aim to identify the influential changes between the project cost in terms of the total lot

area, price per square meter cost and the terminal building capacity. All in all, the major

concern of the study is to understand how project cost estimate of the three passenger

terminal building varies to each other as a reference to future developments relating the

subject matter of project costing and estimate.

Keywords: project estimated cost, passenger terminal building, transportation, Roll-on Roll-

off Port

II. RESEARCH DURATION

From: June 2012

To: July 2012


III. RESEARCH TITLE

Project Cost Estimate: Comparative Research of RORO Port Passenger Terminal Building in

Port of Sebaste, Port of Benit and BALWARTECO Port of Allen

IV. BACKGROUND OF THE STUDY

Sea ports serve as vital infrastructure facilities that bridge the gap between production

and consumption centers, provide access to markets and social services. In the country today,

water transport is always in demand since it is one of the cheapest means of transporting

passenger and goods to and from different islands. Philippine Ports Authority (2009) stated

that an improved and adequate port facilities and services to spur trade and commerce, open

up new economic opportunities, reduce inter-island socio-economic gaps, promote stronger

inter-regional linkages and increased access to social services.

Project Cost Estimate is an approximate calculation on how much will a particular project

will likely to cost. It is necessary that a project has a reliable estimate for a responsible

financial management and a well capital outlay cost for a proper investment of a precise

development. Regarding Project Cost Estimate of a sea port development MTPDP (2009), a

new and improved approach of transport is introduced under the term of Pres. Gloria

Macapagal Arroyo with partnership with private sector as part of her program in Greater

Island Transport, Mobility and Accessibility, known as the Roll-On Roll-Off Terminal

System as project investments. This deals with the accommodation of passengers and

vehicles both as cargo. Philippine Ports Authorities (2009) also necessitates that the sum of

project cost in developing RORO port terminal will always vary to the time and date of

development, the scope and area of the project, price of the land and to the project capacity.


Under Philippine Ports Authority (2010), the scope of the comparative research will be

based on the given official Project Cost of the three cases, the Port of Sebaste in Western

Visayas and the Port of Benit in Eastern Visayas both as public port and BALWARTECO

Port of Allen as private port. Both cases contain bill of quantities that determine the major

items of work. Respectively, the research will only take into consideration the development

of the RORO Passenger Terminal Building.

The research aims to understand the changes and differences in Project Costing in RORO

Passenger Terminal Building development and to identify the influential changes between

the project cost in terms of the total lot area, price per square meter cost and the terminal

building capacity.

The result of the study will be beneficial for concerned planning authority as a reference

of possible Port Passenger Terminal Building development in project costing and estimate.

Recommendations will also be beneficial for planning agencies working in other city and

dealing with costing and estimate issues related to the type of project development.

The research will also be useful to students taking Bachelor of Science in Architecture as

their reference and basis for the requirements and needs in Port Passenger Terminal Building

project costing and estimation.

V. PROFILE OF PORT COST ESTIMATES

All data and figures are based on Philippine Ports Authority (2009) Formulation of

Master Plans and Conduct of Feasibility Studies for Selected Ports in the Port District of

Visayas Phase II. This includes the following:

a. PORT OF SEBASTE - ANTIQUE


Cost Estimates

The bill of quantities stated herein was determined based on major items of work

except for the buildings where it was based on its floor area. For utilities and other

ancillaries are priced on a lump sum basis.

The unit cost reflected herein is inclusive of materials, labor, equipment and other

materials required to finish the work and mark-ups as profit, overheads, contingencies

and taxes.

The Project Cost consists of the Physical cost of the development and contingency

costs and the cost of Engineering Supervision Fee.

Passenger Terminal Building Capacity = 100 pax

Source: Philippine Ports Authority Feasibility Study 2009

Item Item of Work Amount (in Php)

No.

1 GENERAL EXPENSES 852,327.86

2 MARINE WORKS 9,738,750.00

3 MARINE STRUCTURES 1,740,000.00

4 ROCK WORKS 17,518,000.00

5 SUPPORT FACILITIES 13,619,642.75

PROJECT COST, SUM OF a.) to d.) 43,468,720.61

Item Particulars Amount (in Php)

No.

a.) Construction Cost 43,468,720.61

b.) Engineering Fee, 5% of a 2,173,436.03

c.) Physical Contingencies, 10% of a 4,346,872.06

d.) Price Contingencies, 10% of a 4,346,872.06


5 SUPPORT FACILITIES

5.1 Buildings

5.1.1 Passenger Terminal Building Sq. M. 120 25,000.00 3,000,000.00

5.1.4 Transit Shed Sq. M. 330 15,000.00 4,950,000.00

5.1.6 Guard House Units 1 6,750.00 6,750.00

Sub-Total of Item 5.1 7,956,750.00


The Construction Schedule

The construction work is to be completed in Three Hundred Sixty (360) Calendar

days. Construction activities shall be arranged and finalized during detailed

engineering stage.

b. PORT OF BENIT – SOUTHERN LEYTE

The bill of quantities stated herein was determined based on major items of work

except for the buildings where it was based on its floor area. For utilities and other

ancillaries are priced on a lump sum basis.

The unit cost reflected herein is inclusive of materials, labor, equipment and other

materials required to finish the work and mark-ups as profit, overheads, contingencies

and taxes.

The Project Cost consists of the Physical cost of the development and contingency

costs and the cost of Engineering Supervision Fee.

Item Item of Work Amount (in Php)

No.

1 GENERAL EXPENSES 1,600,000.00

2 MARINE WORKS 17,372,167.00

3 MARINE STRUCTURES 13,207,530.00

4 ROCK WORKS 3,236,525.00

5 SUPPORT FACILITIES 5,009,385.00


Item Particulars Amount (in Php)

No.

a.) Construction Cost 40,325,607.00

b.) Engineering Fee, 5% of a 2,016,280.35

c.) Physical Contingecies, 10% of a 4,032,560.70

d.) Price Contingencies, 10% of a 4,032,560.70



5 SUPPORT FACILITIES

5.1 Buildings


5.1.4 Guard House Sq. M. 2.25 2,900.00 6,525.00


Passenger Terminal Building Capacity = 180 pax Source: Philippine Ports Authority Feasibility Study 2004


The construction work is scheduled to be completed in Three Hundred (300)

Calendar days. Construction activities shall be arranged and finalized during detailed

engineering stage.

c. PORT OF BALWARTECO – ALLEN NORTHERN SAMAR

Under the financial aspect of port development in Allen, Northern Samar it should

be noted that it’s ideal to established a ferry terminal thru a well balance cost

estimate of BALWARTECO or Balicuatro Warfage and Terminal Corporation

that make the Allen as the direct linkage of Daan Maharlika. This takes into

consideration the demand of satisfactory service the increasing volume of

vehicular traffic.

Item of Work Amount (in Php)

COST OF LOT 15,000,000.00

BUILDING CONSTRUCTION 18,760,000.00

LAND DEVELOPMENT 2,902,000.00

SUPPORT FACILITIES 518,400.00

PROFESSIONAL FEES 19,762,297.00



5 BUILDING COST

5.1 Buildings


5.1.4 Warehouse Building Sq. M. 1,000 8,000.00 8,000,000.00


Passenger Terminal Building Capacity = 385 pax Source: BALWARTECO Balicuatro Warfage and Terminal Corporation 2011


The construction work is scheduled to be completed in Four Hundred Five (405)

Calendar days. Construction activities shall be arranged and finalized during detailed

engineering stage.

VI. PROJECT COST ESTIMATE COMPARATIVE ANALYSIS

Cost estimate of a building or a project are definitely affected by different factors in the

construction planning. Indeed these factors determine the rate of rise and drop of pricing and

costing that affects the budget allotted for the development and the kind of development ahead.

The methods for the comparative research are illustrated to the following tabulation and graphs.

COMPARISON USING AREA METHOD AND UNIT-USER METHOD (BUILDING

CAPACITY)

LOCATION METHOD OF COMPARISON

AREA METHOD BLDG. CAPACITY

GFA PRICE/SQ. M. TOTAL

SQ. M. (Php) (Php) (PAX)

NORTHERN SAMAR 480 10,000.00 4,800,000.00 385

SOUTHERN LEYTE 200 9,850.00 1,970,000.00 180

ANTIQUE 120 25,000.00 3,000,000.00 100

TOTAL 800 44,850.00 9,770,000.00 665

AVERAGE MEAN 266.67 14,950.00 3,256,666.67 221.67


CASES LOCATION METHOD OF COMPARISON

DATE OF CONSTRUCTION TOTAL

DEVELOPMENT SCHEDULE COST

( YEAR ) ( NO. OF DAYS ) (Php)

PORT OF ALLEN NORTHERN SAMAR 1997 405 4,800,00.00

PORT OF BENIT SOUTHERN LEYTE 2004 300 1,970,000.00

PORT OF SEBASTE ANTIQUE 2009 360 3,000,000.00

Considering the three cases, the result of the comparison shows that the Gross Floor Area

for development influences the range of cost to the total cost of the development. Also, as the

GFA influences the scope of possible project total cost, the given location dictates the price per

square meter. This given prices varies directly to the allotted zoning value of the land. Even the

three cases is interrelated type of development, the zoning plan for each location will not be the

same as the other.

The building capacity is derive from the user statistic of PPA and BALWARTECO. The

capacity affects the area that had been developed. Allen has the highest building capacity

therefore it also has the highest GFA for development. Even though the location has 10,000Php

cost of the land, Allen has the highest project total cost for it has the highest scope of GFA. On

the other hand, even though Sebaste has the highest cost per square meter of 25,000Php it has the

lowest project total cost. I therefore determine that the building capacity under the user-unit

method plays has the primary role in dictating the Gross Floor Area of development, the price

per square meter is secondary although it is dictated by the zoning cost and value depending on

the location.


GRAPHICAL INTERPRETATION:

To illustrate the relationship of the bldg. capacity, GFA and the price per square meter of

the land, the researcher used median and arithmetic mean of descriptive statistics. Given the

computed data above, the median of the cases is approximately around 2,500,000Php for total

cost, 15,000Php per square meters, and 200 number of passenger for the capacity. This shows

that the two developments, Sebaste and Allen are averagely above the median of cost

development while Benit is below the average cost. The graph also shows that the higher number

of building capacity per passenger the higher mark-up will be on the total cost of the project.

Regarding the use of Arithmetic Mean of the three RORO Port, the central tendency of cost


estimation of the cases is 266.67 for GFA, 14,950 for cost per square meter, 3,256,666.67 for

total project cost, and 221.67 for terminal capacity per pax. Thus, the graph shows the massive

effect of user capacity of the building in estimating the GFA resulting to the estimated cost of

construction.

VII. CONCLUSION

All in all, the result of the research comparison articulates that in estimating a public

access zone such as sea port terminal, Unit-of-Use Method (Order of Magnitude Estimate or

User Unit Method) is much applicable than Area Method in getting the possible total estimate

cost of the project. Because primarily, the test tells that the number of user or the building

capacity dictates the overall area for sea port terminal. Getting the estimated cost using Area

Method is a secondary but still an important consideration dealing with project cost estimation.

Thus, the building capacity varies directly in determining the Gross Floor Area of development

and this also varies directly to the price per square meter of the land/location. And these three

factors are directly proportional to the value of the total estimated project cost. Capacity to GFA,

GFA to the cost of site and is equal to the total probable project estimated construction cost.

VIII. REFERENCES

AllenSamarAbout (2011). Characteristic of the province. Retrieved, June 15, 2012, from

www.allensamar.lhosting.onfo/allen.html.

BALWARTECO ( 2010 ). Statistic and estimated project cost. Philippines: Allen Northern Samar


Eduardo, R. (1992). The northern samar integrated rural development project: a study in rural

development administration. University of the Philippines.

Historical Data for the Province of Samar (1950). National Library. Philippines: Manila

Municipality of Samar (2010). Economic, natural resources, infrastructure, and social services.

Retrieved, June 22, 2012, from http://samar.lgu-ph.com/directory.html

National Economic Development Authority ( 2010 ). Medium term development plan from 2004

to 2010. Philipppines : Tacloban

Philippine Ports Authority ( 2004 ). Port of benit final report. Consultancy services for the

formulation of mater plans and conduct of feasibility studies for pmo-tacloban and pmo-

tagbilaran in the port district of visayas package I. Philippine: South Harbor Port Area

Manila

Philippine Ports Authority ( 2009 ). Port of sebaste final report. Consultancy services for the

formulation of mater plans and conduct of feasibility studies for selected ports in the port

district of visayas phase II. Philippine: South Harbor Port Area Manila

Suan, A. ( 1997 ). Balicuatro warfage and terminal corporation history. A study for allen as

linkage for economic growth. Philippine : Northern Samar

Tolentino, M. J. et. al ( 1995). Northern samar and its development needs findings from a quick-

look survey. Institute of Philippine and Culture. Ateneo Manila University. Quezon City

Loberiano, M. RORO Port Comparative Research

Documents

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detailed engineering

visayas phase

passenger

philippine

gross floor

unit cost

project cost