Price of Makati bldg comparable to other govt buildings – contractor

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 (Left to right) Danilo Alano of Philippine Institute of Architects, Alexander Juliano, director-in-Charge of the Fraud Audit Office (FAO) of the Commission on Audit (COA), COA Commissioner Jose Favia and Mario Hechanova, former head of the Makati City General Services Department, take their oath at the start of the Senate Blue Ribbon hearing on Thursday. PHOTO BY EDWIN MULI

(Left to right) Danilo Alano of Philippine Institute of Architects, Alexander Juliano, director-in-Charge of the Fraud Audit Office (FAO) of the Commission on Audit (COA), COA Commissioner Jose Favia and Mario Hechanova, former head of the Makati City General Services Department, take their oath at the start of the Senate Blue Ribbon hearing on Thursday. PHOTO BY EDWIN MULI

THE price of the Makati City hall building 2 is comparable with other government building projects, an executive of Hilmarc’s Construction Corp., the contractor for the P2.2 billion building project, said on Thursday.

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Testifying at the resumption of the Senate blue ribbon committee hearing on the controversial office and parking building, Rogelio Peig, Hillmarc’s assistant vice president for legal affairs, said the construction cost of the 11-story building is not far from that of some public buildings that his company built.

Peig said Hillmarc was involved in the construction of some of the country’s landmarks including the SM Mall of Asia, Rockwell, GMA building and Asian Hospital.

Hillmarc’s public construction projects include the House of Representatives, Bangko Sentral ng Pilipinas (BSP), Sandiganbayan, and Quezon City Museum.

Based on data presented by Hilmarc, the Makati building averaged P69,549.92 per square meter (sq.m.). By comparison, the House annex Building or the Mitra Building had a contract price of P462 million and was constructed in 1998 at an average cost of P38,000 per square meter, Peig said.

He said if the Mitra building was constructed at the same time as the Makati City hall building 2 was built, the structure would have averaged P74,000 per square meter.

The south lounge extension of the House building cost P65,000 per square meter, and that north lounge P67,000 per square meter, he said.

Peig also said the Sandiganbayan building averaged P31,000 per sq.m. in 1998.

“So if we adjust that price based on the time the Makati building was constructed, the Sandiganbayan building will cost P61,000 per sq.m.,” he said.

The Calamba City hall which was built in 2002, at an average cost of P31,000 per sq.m. would cost around P65,000 per sq.m using the current index price of the National Statistics Office (NSO), Peig said.

He said the cost of the other public buildings he mentioned does not include pile foundation which the Makati City hall building 2 has. If the cost of the bored piling is added, those buildings would cost P8,000 more per sq.meter.

“And if we will add the additional cost to the Calamba City hall, the cost will increase to P73,000 per sq.m.,” he said.

Answering earlier claims that the Makati building is more expensive than privately owned condominium buildings, Peig said the difference in the price of government funded structures and privately constructed building comes from different procurement methods.

Mario Hechanova, the former head of the General Services Department of Makati City and a member of the Bids and Awards Committee, claimed that most of the bidding process during his time were rigged to favor the Binays’ friends and allies.

Hechanova denied receiving “cuts” from the projects that were bid out, although he admitted that the committee received a P200,000 monthly allowance from then Mayor Jejomar Binay.

Asked by Sen. Joseph Victor Ejercito if Hechanova received the allowance directly from Binay, Hechanova said it was given to them by the former city engineer Nelson Morales.

Hechanova once again linked Sen. Nancy Binay to the supply and delivery of birthday cakes for Makati’s senior citizens, saying the Vice President even followed up the payment for the cakes.

But the senator challenged Hechanova to present proof of her involvement in the supply of cakes.

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5 Comments

  1. The story here is that the quotation for govt structures & private structures are not the same. The question is why? Is it because the 20-30% SOP? The contractor (Hillmarcs) try to explain here that this is the normal setting for every govt bidding.

  2. The lawyer presented supposed apples to apples comparisons between the Makati building and other similarly situated buildings; he explained the supposed difference between private and public procurement practices to explain cost disparities; and he highlighted the supposed price of steel at the supposed time of purchase to account for the high construction cost.

    Sen. Alan Peter Cayetano warned the Hilmarc lawyer about perjury and then attacked the powerpoint presentation point by point. The lawyer and the engineers sitting behind him could not give a straight answer to Cayetano’s questions.

    Everytime Cayetano asked a direct question, the lawyer had to plead either lack of knowledge or claim that he did not bring documents to support his claims. In the end, the lawyer could not protest when Cayetano said the powerpoint presentation was intended to mislead the public and that the lawyer was simply reading off a p.r. release meant to make Hillmarc and Binay look good.

  3. ATTN: Times, my beloved daily, what is happening to you? This “spinned” presentation was shot down point by point by Senator Cayetano, where is that part? You know this argument of Hillmarc’s is invalid, right? Most of you watched the Senate hearing yesterday, right? It’s even posted in the official Youtube account of the Senate. Why is this one-sided?

    Times, what is happening to you???

    • Mr. Danilo, this post “The price of Makati bldg comparable to othr govt buildings–contractor” , is a news report. That is why the title ends with “–contractor.” Do you think, wrongly, that the title of the news story is the opinion or the statement of the Manila Times>? Please learn to read the whole news story and not judge by the title of stories. And even if you in this case you judged only by the title, you should realize that the title made it clear that it is a quotation from the contractor during the hearing. You must not suddenly conclude that a news story with a title you don’t like is the editorial of our newspaper. Please read the whole story.

    • Mr Rene Bas, don’t make me look like I’m stupid. Of course I read the whole story, that’s why I can conclude easily that this report and NOT a commentary is one-sided. Yes, this is the statement of Hillamarc’s. But WHERE is the part when Sen Cayetano shot down his statements point by point? To not include the other side makes an impression that your paper is BIASED.