Renovation budget for a 55 m² serviced apartment in Manila — first project

W

wren_lending

Architect
Established
PHP 2,919,000 is the provisional budget for renovating a 55 m² serviced apartment in Manila, so the size of the reserve could materially affect what I commit to the main contract. The intended work covers the two wet areas, kitchen, finishes, electrical testing and limited efficiency improvements; I am not adding space.

The larger uncertainties are concealed moisture, old plumbing, possible structural repairs and items the contractor may exclude. Which inspections or small opening-up works would you complete before accepting a price, and would the remaining risk justify a 15% or 20% contingency? Building approvals, working restrictions and delivery times for specified materials also need to be reflected in the programme.
 
I’d carry roughly 15% if plumbing access, moisture testing and the electrical condition are investigated before signing. If the contractor is pricing mainly from visible surfaces, I’d lean closer to 20%.

Ask for a written exclusions list, not just inclusions. Specifically: making good after opening walls, disposal, temporary protection, testing, building access charges, permit-related costs and substitutions when specified materials are unavailable.
 
A few missing facts could change that contingency: Is the apartment currently operating, and must any part remain usable during the work? What access does the building allow to pipe risers, shutoffs and electrical panels? Also ask the administration about working hours, delivery routes and approval timing before accepting the contractor’s schedule. A small unit can still lose days when trades cannot work in the intended order.
 
I’m not convinced a bigger percentage is the main answer. A vague PHP 2,919,000 scope plus 20% remains vague. Separate genuine unknowns from items the contractor should price now.

For example, list each electrical circuit to be tested, identify which bathroom surfaces are being removed, and state who repairs finishes after plumbing access. Keep contingency for concealed defects, but don’t let ordinary omissions consume it.
 
Sequence the intrusive investigation first: moisture readings and leak tracing, limited openings where plumbing access is uncertain, then electrical testing. After that, lock the kitchen and bathroom layouts before ordering materials. Wet-area repairs should precede flooring and paint.

I’d also request a programme showing approvals, procurement and site work separately. Otherwise a long-lead item can look like a construction delay when it was actually ordered too late.
 
One addition to my sequence: define “moderate energy upgrades” before tender comparison. If that means lighting changes, appliance allowances or added electrical work, each bidder may interpret it differently. The electrical check should also produce a clear decision point—what findings trigger replacement work, who prices it, and whether that work affects walls or ceilings already scheduled for finishing.
 
That decision point is important, but I’d avoid opening everything merely to eliminate uncertainty. Targeted inspection should follow the likely risk areas; excessive exploratory work creates its own repair bill.

Keep the schedule buffer separate from the cash contingency. Manila permit or building-approval timing and material lead times may delay completion without increasing the contractor’s base work, while concealed moisture or damaged services can affect both time and cost.
 
This helps. I’m going to treat PHP 2,919,000 as preliminary until the plumbing access, moisture risk and electrical testing are better defined. I’ll ask bidders for matching inclusions and exclusions, plus separate allowances for concealed-condition work rather than one broad provisional amount.

The programme will also show building approvals, orders and construction as separate lines. I’ll initially reserve 15%, then reconsider that before contract signing if targeted inspections cannot resolve the main unknowns.
 
You must log in or register to reply here.
Back
Top