How's Build Build Build?

The Build, Build, Build (BBB) program, launched under President Rodrigo Duterte’s administration in 2017, aimed to accelerate infrastructure development in the Philippines, focusing on enhancing national connectivity, reducing poverty, and driving economic growth. The program initially included over 100 key infrastructure projects across various sectors such as transportation, energy, and urban development. Here's an update on its progress and impact as of 2024:

1. Progress and Achievements

By the end of Duterte’s term in 2022, the Build, Build, Build program had seen mixed results. While it was initially ambitious, some projects faced delays due to issues like right-of-way disputes, financing challenges, and the COVID-19 pandemic. However, a significant number of critical projects were completed or reached advanced stages:

• Metro Manila Subway (Phase 1) and North-South Commuter Railway: These projects aim to improve mass transit in Metro Manila and nearby regions.

• New Clark City Development: This flagship project involves the creation of a new metropolis designed to decongest Metro Manila and serve as a disaster-resilient urban hub.

• Mindanao Rail Project: Phase 1 of this railway network, which seeks to connect key cities in Mindanao, has made strides, but delays have pushed completion beyond the original target.

In total, about 40-50% of the planned projects were completed or under construction by the time of the program's official end in 2022​(Philstar.com)​(Kelmer).

2. Transition to "Build Better More"

Under President Ferdinand Marcos Jr., the program has evolved into Build Better More, maintaining a focus on infrastructure but with greater emphasis on sustainability and inclusivity. The new administration continues to prioritize the completion of ongoing BBB projects while introducing additional projects to align with broader development goals under the Philippine Development Plan 2023-2028​(Philstar.com).

3. Key Challenges and Delays

The COVID-19 pandemic had a major impact on the timeline of several projects. Movement restrictions, supply chain disruptions, and budget reallocations toward pandemic response efforts delayed both the planning and execution of many infrastructure undertakings. Additionally, right-of-way acquisition remained a recurring issue, affecting road and railway projects​(Kelmer).

4. Economic and Social Impact

Despite the delays, the infrastructure projects that were completed under BBB have positively impacted economic growth by improving logistics, reducing travel times, and enhancing connectivity across regions. Key benefits include:

• Reduction in congestion in major cities, particularly with road expansions and new expressways.

• Generation of thousands of jobs, contributing to local economies.

• Increased foreign and local investment in areas where infrastructure improved​(Philstar.com).

Build, Build, Build laid the foundation for the Philippines’ infrastructure development, though it faced challenges along the way. The shift to Build Better More under the Marcos administration reflects a continued commitment to infrastructure as a cornerstone of economic growth, with adjustments for a more sustainable and inclusive approach. The program remains a critical part of the country’s long-term economic strategy, with ongoing projects expected to further boost development in the coming years.

How's Build Build Build?

Basic Estimated Construction Permit Cost

The cost of construction permits in the Philippines varies depending on the location, the type of project (residential, commercial, industrial), the size of the property, and the scope of the construction. Here's a rough cost estimate for various construction permits typically required for residential and commercial projects. These costs apply to most parts of the Philippines, though they may vary slightly by region, including Cagayan de Oro or other cities.

1. Building Permit

The cost of a Building Permit is usually based on the total project cost or the floor area of the building. This permit fee is calculated using a fixed percentage rate set by the local government.

• Estimated Cost:

  • For small residential projects (e.g., bungalow, <100 sqm): ₱5,000 - ₱10,000.

  • For medium residential projects (100 - 200 sqm): ₱10,000 - ₱20,000.

  • For large residential or commercial projects (>200 sqm): ₱20,000 - ₱50,000 or more, depending on the total project cost.

• Factors affecting cost: Size of the house, complexity of the design, and type of construction (e.g., commercial projects tend to have higher fees).

2. Barangay Clearance

Before applying for a building permit, you need to secure a Barangay Clearance to ensure that the project is approved by the local community.

• Estimated Cost:

  • ₱500 - ₱1,500 depending on the barangay.

• Factors affecting cost: The fee varies from one barangay to another, but for residential projects, it's usually minimal.

3. Zoning Clearance

A Zoning Clearance ensures that your project complies with the local land use and zoning regulations. This cost is often based on the land area and the type of project.

• Estimated Cost:

  • Small residential project: ₱1,000 - ₱3,000.

  • Medium-sized project: ₱3,000 - ₱8,000.

  • Large commercial project: ₱10,000 - ₱15,000.

• Factors affecting cost: Size of the property and the nature of the project (residential, commercial, or industrial).

4. Sanitary/Plumbing Permit

A Sanitary or Plumbing Permit is required to ensure that your plumbing and sanitation systems are compliant with local health and safety standards.

• Estimated Cost:

  • Residential project: ₱1,000 - ₱3,000.

  • Commercial project: ₱2,000 - ₱5,000.

• Factors affecting cost: The complexity of the plumbing system and the size of the building.

5. Electrical Permit

The Electrical Permit ensures that your electrical system is safe and complies with the Philippine Electrical Code.

• Estimated Cost:

  • Residential project: ₱1,000 - ₱5,000.

  • Commercial project: ₱5,000 - ₱10,000.

• Factors affecting cost: The electrical load requirements of the building, which are higher for larger or commercial projects.

6. Mechanical Permit

If your project involves the installation of air conditioning systems, elevators, or other mechanical systems, you’ll need a Mechanical Permit.

• Estimated Cost:

  • Residential project: ₱1,000 - ₱3,000 (if simple air conditioning).

  • Commercial project: ₱3,000 - ₱10,000 (depending on the complexity of the mechanical systems).

7. Fire Safety Evaluation Clearance

The Fire Safety Evaluation Clearance is required to ensure that your project complies with fire safety regulations. The cost of this permit depends on the size and scope of the project.

• Estimated Cost:

  • Small residential project: ₱1,000 - ₱3,000.

  • Medium residential/commercial project: ₱3,000 - ₱10,000.

  • Large commercial or industrial projects: ₱10,000 - ₱20,000+.

• Factors affecting cost: The size and complexity of the project and the fire protection systems installed (e.g., sprinklers, alarms).

8. Environmental Compliance Certificate (ECC)

An ECC is required if the construction project has a significant environmental impact. This is typically needed for large commercial or industrial projects but may not be required for small residential constructions.

• Estimated Cost:

  • Small residential projects usually do not require an ECC.

  • For medium to large projects: ₱5,000 - ₱10,000 for the processing fee, depending on the environmental impact.

  • Environmental Impact Assessment (EIA) cost (if required): This can be more expensive depending on the project, starting from ₱20,000 - ₱50,000 or more for extensive environmental assessments.

9. Locational Clearance

A Locational Clearance certifies that your construction project complies with the approved land use plan of the local government.

• Estimated Cost:

  • Residential project: ₱500 - ₱3,000.

  • Commercial project: ₱3,000 - ₱10,000.

10. Certificate of Occupancy

The Certificate of Occupancy certifies that the building is safe and complies with the approved building plans. This is required after the completion of construction.

• Estimated Cost:

  • Small residential project: ₱2,000 - ₱5,000.

  • Medium to large project: ₱5,000 - ₱15,000.

11. Fencing Permit

If you are constructing a fence around your property, you will need a Fencing Permit.

• Estimated Cost:

  • ₱1,000 - ₱3,000 depending on the size and complexity of the fence.

Other Potential Costs:

• Demolition Permit (if required): ₱1,000 - ₱5,000 depending on the size and type of structure being demolished.

• Excavation Permit: ₱500 - ₱2,000.

• Contractor’s License: If you hire a contractor, ensure they are licensed, which may cost an additional ₱5,000 - ₱10,000 if they don’t have one.

• Other Special Permits (e.g., heritage, environmental, or specific utility permits) may add extra costs, particularly for larger, more complex projects.

Contingency Fund

When estimating the total cost of permits, it's a good idea to set aside a contingency fund of around 10-15% of your overall budget. This ensures that you’re prepared for any additional or unexpected costs, such as amendments to the design or delays in the approval process.

For most residential projects in the Philippines, the total cost of permits (including the building permit, barangay clearance, zoning clearance, electrical, plumbing, and fire safety permits) ranges from ₱15,000 to ₱50,000. Larger commercial projects or industrial constructions can expect to pay ₱50,000 to ₱150,000 or more, depending on the scope and complexity of the project.

Basic Estimated Construction Permit Cost

Prefabricated Advantage

Prefabricated (or prefab) homes have become an increasingly popular option for residential construction due to several advantages. Here are the key pros of choosing a prefab home:

1. Cost Savings

• Lower Labor Costs: Prefabricated homes are built in factories, which allows for a more streamlined, efficient process. This reduces the need for skilled labor on-site and lowers overall construction costs.

• Fewer Delays: Factory-built components mean there’s less exposure to weather-related delays or labor shortages, which often lead to additional costs in traditional builds.

2. Faster Construction Time

• Quicker Build: Prefab homes can be built and assembled much faster than traditional homes, sometimes in as little as a few weeks, as components are made in a controlled factory setting and simply need to be assembled on-site.

• Parallel Workstreams: While the foundation is being prepared at the build site, the home can be constructed in the factory. This parallel process significantly shortens the overall timeline.

3. Quality Control

• Controlled Environment: Prefab homes are built indoors in a factory-controlled setting, which eliminates the risk of weather damage (like water or mold) during construction. This controlled environment allows for more precise construction and higher quality standards.

• Consistent Quality: Since these homes are built to the same specifications repeatedly, there is a level of consistency in quality, which can reduce defects compared to traditional construction.

4. Eco-Friendly and Sustainable

• Less Waste: Building in a factory means materials are used more efficiently, and there is less waste compared to traditional construction sites. Additionally, leftovers can often be recycled in the factory setting.

• Energy-Efficient Designs: Prefab homes are often designed with energy efficiency in mind. Many manufacturers offer eco-friendly features like high-efficiency insulation, energy-efficient windows, and renewable energy options (such as solar panels).

• Reduced Transportation Impact: By consolidating material use in one location (the factory), prefab construction often reduces the environmental impact of transporting materials to the construction site.

5. Customization Options

• Modular Flexibility: While prefab homes may conjure images of cookie-cutter designs, many modern prefab homes offer customizable options. Buyers can often choose from various layouts, materials, finishes, and features to create a personalized home.

• Expandable Design: Prefab homes can be modular, meaning that additional sections or units can be added later if needed, allowing homeowners to expand their living space over time.

6. Energy Efficiency and Cost Savings Over Time

• Tight Construction: Because prefab homes are assembled in a controlled environment, they often have tighter seams and better insulation, making them more energy-efficient than many traditionally built homes. This results in lower heating and cooling costs.

• Sustainability Features: Many prefab homes are designed to be eco-friendly with options for renewable energy, energy-efficient appliances, and materials that reduce the home's carbon footprint, further lowering operating costs.

7. Design Innovation

• Modern Aesthetic: Prefab homes often incorporate sleek, modern design elements, offering a more contemporary look compared to traditional homes. Architects and designers are innovating in the prefab space, leading to cutting-edge designs and materials.

• Flexibility in Style: While prefab is associated with modern and minimalist designs, it can also be adapted to various architectural styles, from classic to ultra-modern, to fit the aesthetic preferences of the homeowner.

8. Durability and Longevity

• Built to Last: Since prefab homes are designed to be transported and assembled, they are often constructed with durable materials that can withstand the rigors of transport. This can lead to a longer-lasting structure compared to some traditionally built homes.

• Weather-Resistant: Many prefab homes are designed to withstand a range of environmental conditions, with better resistance to weather events like storms and wind damage due to their robust construction.

9. Financing and Insurance Advantages

• Better Financing Options: As prefab homes become more mainstream, lenders are offering more favorable financing terms for these homes, with mortgages that closely resemble those for traditional homes.

• Lower Insurance Costs: Due to the high-quality construction and reduced risk of damage during the build process, some insurance companies offer lower premiums for prefab homes compared to traditional homes.

10. Reduced Site Impact

• Minimal Disruption: Since most of the home is constructed off-site, there is far less disruption to the surrounding environment. This can be beneficial for homeowners who are building in developed neighborhoods or areas with environmental restrictions.

• Cleaner Construction Sites: Fewer construction workers, materials, and equipment are required on-site, leading to a less cluttered, quieter, and safer build location.

11. Affordability

• Competitive Pricing: Prefab homes are often more affordable than traditionally built homes, especially when factoring in the savings from faster construction times, lower labor costs, and energy efficiency.

• Lower Long-Term Costs: Thanks to improved energy efficiency, high-quality construction, and reduced maintenance needs, prefab homes can offer lower long-term ownership costs.

Prefabricated Advantage