At the Construction project site, which one will prevail? The plan or cost estimates?

No matter how much a contractor may want to get the job, they will not proceed with a project if the bid cost is too high compared to the approved plan.

Government Projects

The Department of Public Works and Highways (DPWH) is the lead agency that approves construction plans in the Philippines.

The DPWH will not hesitate to ask for a lower price from the contractor if the approved plan costs more than the bid cost. For the contractor to win the job, they need to have a realistic price approved by the DPWH.

The problem is most contractors do not factor in the escalation of prices when they submit their bid costs. By the time the project is awarded to them, the prices of materials and labor have increased, and they are left with no choice but to increase the project's price.

This article will discuss the importance of having a realistic price for the approved plan and how it can help the contractor win the job.

In any construction project, the winning bidder’s price will be close to the Approved Budget for the Contract (ABC). But there are many construction projects where the bid prices are well above the ABC. There are also construction projects awarded to the lowest bidder, but the project faces many cost overruns during construction.

To understand why this happens, we need to understand the difference between the Approved Plan and the bid cost estimates. The Approved Plan is the document that is used to determine the ABC. The bid cost estimates are the project cost estimates that the bidders submit.

The Philippines’ Department of Public Works and Highways (DPWH) has a standard format for the Approved Plans. The DPWH approves the plans, and the bids are based on the approved plans.

Private Projects

For the architect, you are tasked with creating the perfect design for your client. But what happens when your client wants a different design than you have proposed? Do you stick to your guns and hope they will see the brilliance of your original plan, or do you give in and make the changes they want?

There is no easy answer to this question, as each situation is unique. However, you should consider a few factors before making your decision. First, you must figure out what is most important to your client. Is it the design's overall look or the project's cost? If cost is the most critical factor, you may be better off making the changes your client wants. However, if the look of the design is most important, you may want to stick to your original plan.

Second, there are two common ways of estimating the construction cost of a project: the architect’s estimate and the bid estimate. The architect’s estimate is based on the architect’s drawings and specifications, while the bid estimate is based on contractors' bids. Both methods have their pros and cons, but it’s essential to understand their differences before deciding which one to use.

The architect’s estimate is generally more accurate than the bid estimate, but it can be more expensive. The bid estimate is less accurate, but it is typically less expensive. Ultimately, deciding which estimate to use depends on the project's needs.

Conclusion

Project implementation, quantity surveyors, project management, and contractors in the Philippines all decide which documents will prevail, architectural plans, or cost estimates. The architect's plans are the basis for the project, but the cost estimates are used to determine the budget. The project management team decides which documents will be used during the project implementation. The contractor's role is to follow the plans and specifications.

It is pretty clear that cost estimates always play a crucial role in construction projects. It is cost estimating that decides the fate of a project. The project can be curtailed if the cost estimation is not up to the mark. On the other hand, a well-crafted cost estimate can make a project successful.

The construction project site will always prevail in government and private projects. The plan or cost estimates cannot be implemented without the construction site's approval.