Construction projects post 28,389 in the second quarter

1. The countrys construction projects from approved building permits summed up to 28,389 during the second quarter of 2010. This reflects a 1.2 percent annual decrease from 28,726 constructions projects during the same period in 2009. 
    

2. Residential type building in the second quarter of 2010 recorded a total of 22,033, slightly lower by 0.4 percent than last years total residential construction of 22,122. Similarly, non-residential construction for the period slumped 4.1 percent to 3,020 from 3,148 non-residential constructions during the same quarter of 2009. 
    

3. Moreover, construction for additions, alterations and repairs with a combined total of 3,336, dropped 3.5 percent from 3,456 reported on a quarter-on-quarter basis. Figure 1 compares the number of construction projects by type for the second quarters of 2009 and 2010. 
    

    
    

4. The countrys highest number of construction projects by region were located in CALABARZON (Region IVA) with 9,606 or 33.8 percent of the total. National Capital Region (NCR) with 3,642 constructions (12.8%) ranked second, followed by Central Luzon (Region III) with 2,980 constructions representing 10.5 percent of the total. Completing the list were Central Visayas (Region VII) with 2,138 constructions (7.5%) and Davao Region (Region XI) with 1,829 constructions (6.4%). 
    

5. At the provincial level, Cavite reported the biggest number of construction projects with 3,299 or 11.6 percent of the total. This was followed by the province of Laguna with 2,696 (9.5%) construction projects. Other provinces which exceeded a thousand mark were Batangas with 1,640 (5.8%), Rizal, 1,593 (5.6%) and Pampanga, 1,025 (3.6%) construction projects during the second quarter 2010. Figure 2 shows the distribution of construction projects by region. 
    

    
    

   Value of construction surges 39.3% to PHP49.1 billion 
    

6. Total value of construction during the second quarter of 2010 rose 39.3 percent to PHP49.1 billion from its previous quarter value of PHP35.2 billion. 
    

7. Value of residential building construction also exhibited an increase of 25.2 percent amounting to PHP25.2 billion from PHP20.2 billion registered during the same quarter of 2009. 
    

8. Similarly, value of non-residential construction, remarkably posted a growth of 71.6 percent amounting to PHP20.4 billion from PHP11.9 billion registered during the same period of 2009. 
    

9. In addition, combined value for additions, alterations and repairs estimated at PHP3.4 billion, also increased by 8.4 percent from PHP3.2 billion reported during the same period of 2009. Figure 3 compares the aggregate value of construction by type for the second quarters of 2009 and 2010. 
    

   

    

10. Across the country, value of construction for the NCR had always remained highest at PHP25.3 billion, accounting for 51.5 percent share of the total value. Region IVA and Region III ranked a far second and third with shares of 16.5 percent (PHP8.1 billion) and 7.0 percent (PHP3.4 billion), respectively. 
     

    Single type dominates residential construction 
     

11. Total value of construction for residential buildings reached PHP25.2 billion with a total floor area of 3.0 million square meters, translating to an average cost of PHP8,384 per square meter. This represents an increase of 10.8 percent compared with the average cost of PHP7,564 per square meter of the previous year. 
     

12. Single type residential units numbered to 19,945 (90.5%), indicating the highest among residential building constructions. Total value of construction for this type reached PHP12.9 billion covering a total floor area of 1.7 million square meters translating to an average cost of PHP7,380 per square meter. 
     

13. Apartment/accessoria followed next with 1,605 applications representing 7.3 percent of total residential construction. This type of residential building construction had an estimated construction value of PHP2.6 billion with total floor area of 396.9 thousand square meters or an average cost of PHP6,468 per square meter. Figure 4 displays the percentage distribution of the number and value of residential building construction by type for the second quarter of 2010. 
     

    

     

    Average cost of non-residential construction is PHP8,453 
     

14. During the second quarter of 2010, value of non-residential construction was PHP20.4 billion pesos with a total floor area of 2.4 million square meters. This translates to an average cost of PHP8,453 per square meter. 
     

15. Commercial type dominated all other types of non-residential construction numbering to 1,723 or 57.1 percent of the total. Value of construction for this type was estimated at PHP13.6 billion covering a total floor area of 1.5 million square meters or an average cost of PHP8,948 per square meter. 
     

16. Institutional building construction, which ranked a far second, recorded to 520 (17.2%), with construction value of PHP3.2 billion and a total floor area of 363.8 thousand square meters or an average cost of PHP8,788 per square meter. 
     

17. The least number of non-residential construction was reported for agricultural type with 116 or 3.8 percent of the total. Construction value was estimated at PHP137.4 million covering a total floor area of 59.4 thousand square meters, translating to an average cost of PHP2,315 per square meter. Figure 5 shows the number and value of non-residential construction by type for the second quarter of 2010.

TECHNICAL NOTES

PRIVATE BUILDING CONSTRUCTION STATISTICS

Background

The collection of approved building permit forms started in 1977 when the National Census and Statistics Office and the Department of Local Government and Community Development entered into an informal agreement in 1976 to implement the provisions of the national building code and monitor the building permit forms. Later on January 6, 1978, Memorandum of Agreement between NCSO and the former Department of Public Works, Transportation and Communication (DPWTC) defined the agencies responsibilities in the collection of private construction statistics. From then on, the collection, processing, analysis and dissemination of construction statistics became the responsibility of the NCSO (now the National Statistics Office) while the printing of the building permit forms became the responsibility of the DPWTC (now the Dept. of Public Works and Highways (DPWH)).

With the devolution of some functions of the National Government to the LGUs under the 1991 Local Government Code, the implementation of the National Building Code is vested in the city or municipal government. In 1993, a joint Memorandum Circular was issued by the Department of Interior and Local Government (DILG) and the DPWH defining the duties and responsibilities of the municipality/city engineers relative to the implementation of the National Building Code (NBC) and in the production of construction statistics from approved building permits. As a result, the printing of the building permit and certificate of completion forms became the responsibility of the local building official.

Scope and Coverage

Private construction statistics from approved building permits relate to data on new constructions and additions, alterations and repairs of existing residential and non-residential buildings and other structures undertaken in all cities/municipalities of the country.

For this publication, data for the provinces of Apayao, Kalinga and Sulu are not included in the tabulation as these provinces did not submit building permit documents and certification of no construction before the deadline. However, if any, these are to be included in the annual tabulation. For the province of Tawi-tawi, no building permit was issued during the reference period.

Source if Information

Construction statistics are compiled by the National Statistics Office (NSO) from the copies of original application forms of approved building permits as well as from the demolition permits collected every month by NSO field personnel from the Offices of Local Building Officials (LBOs) nationwide.

Limitations:

1. Data on private building constructions refer to those proposed to be constructed during the reference period and not to construction work completed during the reference period. 
    

2. The completeness of the number of building permits collected relies on the approval of applications filed with the LBOs. Hence, private building constructions without approved building permits are excluded in the tabulation of data.

Geographic Classification

Private building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC). The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities and barangays in the Philippines. It consists of 17 administrative regions as approved under Executive Order No. 36 dated 19 September 2001 (Providing for the Reorganization of the Administrative Regions in Mindanao) and Executive Order No. 103 dated 17 May 2002 (Dividing Region IV into Region IV-A and Region IV-B, transferring the province of Aurora to Region III).

The geographic codes are in accordance with NSCB Resolution No. 3, Series of 2005 that approved the PSGC.

Industry Classification

Private building construction statistics utilizes the amended 1994 Philippine Standard Industrial Classification to classify the main activity through the use or type of occupancy of the building.

Collection

The number of building permit forms accomplished by the applicant comes in five (5) copies. The NSO copy of the approved building permit is made available within the first five (5) working days after each reference month. Collections of these documents from the Local Building Official (LBO) in city/municipality are undertaken by NSO field personnel within this period.

Collected documents for each month are properly checked as to its completeness by verifying the beginning and ending numbers indicated in the permit numbers. Missing numbers are indicated, with corresponding reasons, in the transmittal. In cases where there is no construction in a given month in a municipality, a certification that there was no construction is provided by the LBO to the NSO field staff.

Data Processing

Data processing of approved building permits is done both manually and mechanically. Copies of documents collected from the offices of LBOs are properly controlled, sorted, edited and coded, folioed and encoded in the NSO provincial offices. During machine validation, inconsistent and invalid entries which are flagged in an error listing are corrected in the data file. This process is repeated until there are no more inconsistent or erroneous entries found in the error listing. The cleaned data files are then forwarded to NSO Central Office for further processing and consolidation of data files for the generation of preliminary tables. Data files received after the cut-off dates of submission set for each quarter are to be included in the final data.

Preliminary results are based from data files that have undergone data processing in the provincial offices. Hence, preliminary results may be revised to include documents received after cut-off period for preliminary tabulation and/or due to additional data processing and evaluation at the Central Office. The revision of statistics for a particular quarter is reflected in the annual tables which are considered as the final data. The annual tables are generated when all the monthly tables for the year have been completed and finalized.

Statistics Generated

Construction statistics generated from approved building permits provide monthly data on building construction at the municipality level nationwide.

      This statistics include:

• number

• floor area

• type of building

• value of construction

• number of storey

Statistical Tables

The statistical tables are presented at the regional and provincial levels by type of building and by period according to form of ownership. Preliminary tables are generated 90 days after the reference quarter while annual tables are generated eight months after the reference year. Statistical tables at the municipal level are also generated but are not published.

Unpublished Data

Aside from the preliminary tables posted in the NSO website, annual, quarterly and monthly statistical tables at the municipal level by type of building and by form of ownership are available at the Industry Statistics Division, National Statistics Office.

Other special tabulations may also be made available upon request, addressed to the Administrator, National Statistics Office, Solicarel Bldg. I, Ramon Magsaysay Blvd. Sta. Mesa, Manila.

Dissemination

Construction statistics derived from approved building permits are made public in the form of Special Releases posted in the NSO website. The quarterly Special Releases are reports containing the preliminary results of construction statistics generated 90 days after the reference quarter while the annual Special Release is a consolidated report of the quarterly preliminary data including the revisions made in the preliminary results and data from documents which are submitted after the cut-off dates for each quarter. 
 

Definition of Terms: 

Building Permit - A written authorization granted by the Local Building Official (LBO) to an applicant allowing him to proceed with the construction of a specific project after plans, specifications and other pertinent documents have been found to be in conformity with the National Building Code (PD 1096).

Building - Any independent, free-standing structure comprised of one or more rooms or other spaces, covered by a roof and enclosed with external walls or dividing walls, which extend from the foundation to the roof.

Construction - All on-site work done from site preparation, excavation, foundation, assembly of all the components and installation of utilities and equipment of buildings/structures.

Residential Building - A building for which its major parts or more than half of its gross floor area is built for dwelling purposes. This type of building can be of the single type, duplex, an apartment and/or accessoria and residential condominium.

Single House - A complete structure intended for a single family or household, i.e. bungalow, 2-storey house, nipa hut.

Duplex - A structure intended for two households, with complete living facilities for each; it is a single structure divided into two dwelling units by a wall extending from the floor to the ceiling.

Apartment - A structure, usually of two storeys, made up of independent living quarters, with independent entrances from internal walls and courts.

Accesoria - A one or two-floor structure divided into several dwelling units, each dwelling unit having its own separate entrance from the outside.

Residential Condominium - A structure, usually of several storeys, consisting of multiple dwelling units.

Other residential constructions - Consist of school or company staff houses, living quarters for drivers and maids and guardhouses.

Non-Residential Building - This type includes commercial, industrial, agricultural and institutional buildings.

Commercial Buildings - Office buildings and all buildings which are intended for use primarily in wholesale, retail and service trades; i.e. stores, hotels, restaurants, banks, disco houses, etc.

Industrial Buildings - All buildings which are used to house the production, assembly and warehousing activities of industrial establishments; i.e. factories, plants, mills, repair shops, machine shops, printing press, storage plant, electric generating plants.

Institutional Buildings - All buildings which are primarily engaged in providing educational instructions and hospital/health care; ports, airports and other government buildings; i.e. school, museums, libraries, sanitaria, churches, hospitals.

Agricultural Buildings - All buildings which are used to house livestocks, plants and agricultural products such as barn, poultry house, piggeries, stables, greenhouses and grain mill.

Other Non Buildings Constructions - These include cemetery structures, street furnitures, waiting sheds, communication towers, etc.

Addition - Any new construction which increases the height or area of an existing building/structure.

Alteration - Construction in a building/structure involving changes in the materials used, partitioning, location/size of openings, structural parts, existing utilities and equipment but does not increase the overall area thereof.

Repair - Remedial work done on any damaged or deteriorated portion/s of a building/structure to restore its original condition.

Demolition - The systematic dismantling or destruction of a building/structure or in part.

Street Furniture - These are street structures consisting of monuments, waiting sheds, benches, plant boxes, lampposts, electric poles and telephone poles.

Floor Area of Building - The sum of the area of each floor of the building measured to the outer surface of the outer walls including the area of lobbies, cellars, elevator shafts and all communal spaces in multi-dwellings. Areas of balconies are excluded.

Total Value of Construction - The sum of the cost of building, electrical, mechanical, plumbing and others. The value is derived from the approved building permit and represents the estimated value of the building or structure when completed.

Source:   National Statistics Office
                 Manila, Philippines