Photo Credits; Roderick Abad/Business Mirror

Everyone dreams of having a house. A place where we can relax, rest and unwind. A shelter that binds family and friends together. A place that protects us from the elements and even danger.

There are different types of houses in the Philippines. It can be the traditional "Bahay-Kubo", the Spanish influenced "Bahay na Bato", the American influenced "Tsalet" and "Bungalow" and the modern Townhouse. These houses developed and evolved over 100 years. Upon construction of any of those house types, house owners should always consider their budget when building their dream house.

According to Top-Notch, a construction company in the Philippines, the cost of construction is generally computed in two ways. First is through detailed estimating and second is through the area method.

Detailed estimating refers to the process of deriving the total cost by computing the quantity of each item of work and their equivalent materials and labor cost. This process requires that a plan be prepared first before the estimate can proceed. It is the more accurate method of computation and usually arrived at a lower cost than the area of method. This method is preferable because it forces the contractors or house builders to define all of the required construction details and prevent disagreements during the progress of construction work. (Top-Notch Construction, 2015)

Estimating through area method is the faster way to derive the cost of construction. The contractors only need to get the required floor area and he can derive the total cost of the building by multiplying it by cost factor which may range from as low as Php15,000 per square meter and as high as Php25,000 per square meter for a decent livable building. The cost factor that the contractors will use depends on the specified requirements of the client and some other factors that he may consider as relevant in the costing method. However, it cannot accurately compute the cost impact of different factors such as the number of rooms, number of windows, number of toilet and bath, the height of the structure, types of finishes, type of fixtures and other factors that affects the cost of house construction.

Because of these limitations, housebuilders are forced to put a relevant mark-up to their estimate to ensure that the cost will be enough or higher than is actually required for the building construction and thus arriving at a higher cost compared to the first method. The area method is advisable to only be used for budgeting purposes, using this method for contractual purposes is highly discouraged because it may result in unresolved disagreements during the progress of construction which may lead to abandonment or stoppage of the construction projects and may end up to legal battle. (Top-Notch Construction, 2015)

There are six (6) things needed to provide a detailed cost for construction according to Reliable Home Builders:

1. Soil topography of your lot to determine if cut and fills are needed.

2. Subdivision's bonds and extra cost.

3. Check the availability of electricity and water supply, the drainage system and other utilities.

4. Check the accessibility and logistics

5. Check the nearest or available hardware store

6. Skilled work rates. These factors are necessary in order to determine the budget or a cost that is applicable upon your house construction.

The amount of your house varies on its design, its size, materials to be used and the amount of labor. This 2019, according to Trading Economics, the housing index in the Philippines increased to Php12,232 per square meter in the second quarter of 2019 from Php10,261 per square meter in the first quarter of 2019. Housing index in the Philippines averaged Php 8275 per square meter from 2002 until 2019, reaching an all-time Php12,682 per square meter in the first quarter of 2018 and a record low of Php 4,889 per square meter in the fourth quarter of 2002.

The following are the corresponding amounts per square in constructing a house according to other construction companies:

For the middle-class family in the Philippines, local home builders reveal that the cost of constructing a house ranges from Php 15,000 to Php 20,000 per square meter

Meanwhile, according to the Construction Cost Handbook of Langdon and Seah Philippines Inc., a construction consultancy service provider, terraced houses and average standard homes with one to two bedrooms tend to cost between Php 25,700 and Php 31,000 per square meter.

Detached houses and high-end residences usually cost between Php 53,900 and Php 63,150 per square meter. This already includes mechanical and electrical expenses and plumbing services.

If you prefer to construct a 100-square-meter house, here are the following information you should know:

For Basic Bungalow, a single-story home would cost you about Php 100,000. With this, you can have a living room, a dining room, a small kitchen, a bedroom, and a bathroom.

If you want to build a suitable secondary story, you'll need to increase the budget to Php 150,000.

For the amount of Php 250,000 to Php 300,000, you can have a 100-square-meter property that is basically whole in terms of structure. This includes painting expenses and preparations for setting up the electricity.

If you dream of a 400-square-meter bungalow with a living room, dining, kitchen, three (3) bedrooms, two bathrooms, a terrace, and a garden, your budget would be around Php 2.8 million.

It would typically take around six (6) months to finish a house construction. It is also possible to finish earlier depending on the design and size of the house. You can also add more manpower however it would increase the expenses. Seeking advice or suggestions or hiring an architect or engineer would be better for you to know what's the best plan and action in building your dream house.

When building a house, always remember that this will be your home. Make sure to get the best value of your money upon its construction. Houses are our assets, it's our lifetime investments.