CHAPTER II

FINANCIAL STUDY

This chapter displays the outcomes of the market engineering

economy and managing of the project study. It is therefore important to

the study to assess the financial aspects of the proposed building. It is

expressed in peso to possible outcome of operating the project. This study

is very important in financing including possible resources and at the

same time completing a realistic projection of operating cost and revenues

by first making a complete and conservative estimate of the total cost for

the accomplishment of the project. Since the project was owned by the

government, there is no profit or income generated. Therefore, the analysis

used to justify the proposed four-storey high school academic building at

La Union National High School was the benefit-cost ratio analysis.

In the financial study of the Academic Building in La Union National

High School, every peso has given much priority and mindful analysis to

come up with a realistic and reliable cost estimates making to a justifiable

projection of project’s operating cost and revenues. Justifiable

assumption, survey and personal interviews directly to the administrative

officer of La Union National High School were considered to correlate the

said proposed school building to the existing parameters and conditions

of the La Union National High School since the new school building still

be a part of the school’s management and supervision.

I. PREPARATION OF INCOME STATEMENT

A. MAJOR ASSUMPTIONS

As a basis for quantifying the projected results of

management, the following assumptions are made:

1. The total cost of the project excludes the lot cost.

2. The depreciation value per year is computed using the sinking

fund method:

Where: d = (CO-CL) / (F/A, i%, L)

Dn = d (F/A, i%, n)

Cn = Co – Dn

Co = Initial Cost

CL = Salvage Cost

L = Useful life in years

3. Economic life of the building is 40 years with a salvage value

of 10% in the building cost.

4. Equipment, furniture and fixtures having a life of 15 years

with salvage value of 10% in the initial cost.

5. Miscellaneous fees are estimated to increase 5% annually.

6. Salaries of employees increase annually by 5%.

 7. Maintenance cost, water and power bills, office and school

supplies are estimated to increase by 5% annually.

8. Phil Health, GSIS, PAG-IBIG are estimated to increase 5%

annually.

9. Maintenance cost is determined as 10% of the total project

cost. Interest rate is assumed to be 8% annually.

10. Tax of the building is 5% of the revenue.

B. CALCULATION OF THE TOTAL PROJECT COST

The total project cost includes, initial cost of the building,

building structure, equipment, materials and miscellaneous for

all aspects.

Table 1: Detailed Estimate of the Project

ITEM UNIT MATERIAL

NO.
DESCRIPTION QTY UNIT LABOR COST
COST COST
CONCRETE
I
WORKS

a. Footing
Portland Cement 1753 bags 260.00 455,780.00 159,523.00
Fine Sand 97.5 cu.m. 560.00 54,600.00 19,110.00
Crushed Gravel 194.8 cu.m. 640.00 124,672.00 43,635.20

b. Column
Portland Cement 1151 bags 260.00 299,260.00 104,741.00
Fine Sand 64 cu.m. 560.00 35,840.00 12,544.00
Crushed Gravel 127.9 cu.m. 640.00 81,856.00 28,649.60
 c. Beams
Portland Cement 1900 bags 260.00 494,000.00 172,900.00
Fine Sand 105.6 cu.m. 560.00 59,136.00 20,697.60
Crushed Gravel 211.1 cu.m. 640.00 135,104.00 47,286.40

d. Slab
Portland Cement 1341 bags 260.00 348,660.00 122,031.00
Fine Sand 74.5 cu.m. 560.00 41,720.00 14,602.00
Crushed Gravel 149 cu.m. 640.00 95,360.00 33,376.00

e. Stair and
Landing
Portland Cement 285 bags 260.00 74,100.00 25,935.00
Fine Sand 15.9 cu.m. 560.00 8,904.00 3,116.40
Crushed Gravel 31.7 cu.m. 640.00 20,288.00 7,100.80

TOTAL COST FOR CONCRETE WORKS 2,329,280.00 815,248.00

II. STEEL WORKS

a. FOOTING
20 mm Dia.
528 pcs 460.00 242,880.00 85,008.00
Vertical bars
#16 Tie wire 44 kgs 75.00 3,300.00 1,155.00

b. COLUMN
16 mm Dia. RSB
1488 pcs 300.00 446,400.00 156,240.00
deformed bars
#16 Tie wire 39 kgs 75.00 2,925.00 1,023.75

c. BEAM
16 mm Dia. RSB
6136 pcs 300.00 1,840,800.00 644,280.00
deformed bars
#16 Tie wire 302 kgs 75.00 22,650.00 7,927.50

d. SLAB
16 mm DIA.
DEFORMED 4576 pcs 300.00 1,372,800.00 480,480.00
BARS
#16 TIE WIRE 484 kgs 75.00 36,300.00 12,705.00
 e. STAIR AND
LANDING
10 mm Dia. RSB
170 pcs 135.00 22,950.00 8,032.50
deformed bars
12 mm Dia. RSB
257 pcs 188.00 48,316.00 16,910.60
deformed bars
#16 Tie wire 30 kgs 75.00 2,250.00 787.50

f. RAILINGS
2"x3" Structural
46 pcs 1,750.00 80,500.00 28,175.00
Steel Tube
5" dia. steel pipe 12 pcs 380.00 4,560.00 1,596.00
12 mm steel
356 pcs 225.00 80,100.00 28,035.00
square bar

TOTAL COST FOR STEEL WORKS 4,206,731.00 1,472,355.85

MASONRY
III.
WORKS

6" thick CHB 9820 pcs 10.00 98,200.00 34,370.00

1066
4" thick CHB pcs 8.00 85,288.00 29,850.80
1
12 mm DIA.
1108 pcs 188.00 208,304.00 72,906.40
Deformed bars
#16 Tie wire 73 kgs 75.00 5,475.00 1,916.25
Portland Cement 1186 bags 260.00 308,360.00 107,926.00
Fine Sand 98.8 cu.m 560.00 55,328.00 19,364.80

TOTAL COST FOR MASONRY WORKS 760,955.00 266,334.25

PLASTERING
IV
WORKS

PORTLAND
892 bags 260.00 231,920.00 81,172.00
CEMENT
FINE SAND 47 cu.m. 560.00 26,320.00 9,212.00

TOTAL COST FOR PLASTERING WORKS 258,240.00 90,384.00

ROOF FRAMING
V.
WORKS
a. Truss
Assembly
150x50x20x1.5m
150 pcs 980.00 147,000.00 51,450.00
m C-purlins x 6m
 2"x10"x1.2mm
20 pcs 1,025.00 20,500.00 7,175.00
Facia board x 6m
3"x3"x6mm angle
68 pcs 760.00 51,680.00 18,088.00
bar x 6m
2.5"x2.5"x6mm
64 pcs 680.00 43,520.00 15,232.00
angle bar x 6m

b. Painting of
Truss Assembly
Rust converter 4 gal 510.00 2,040.00 714.00
Red Oxide 7 gal 450.00 3,150.00 1,102.50
Paint Thinner 3 gal 180.00 540.00 189.00
Paint Brush 1 lot 950.00 950.00 332.50

c. Hardwares
Grinding Disc 15 pcs 70.00 1,050.00 367.50
Cutting Disc 30 pcs 450.00 13,500.00 4,725.00
6011 welding rod 20 kgs 120.00 2,400.00 840.00
6013 welding rod 20 kgs 100.00 2,000.00 700.00

TOTAL COST FOR ROOF FRAMING WORKS 288,330.00 100,915.50

TINSMITHRY
VI
WORKS

a. Roofing Sheet
Pre-painted rib
240 sheets 380.00 91,200.00 31,920.00
type roofing sheet
Pre-painted end
44 pcs 178.00 7,832.00 2,741.20
wall flashing

b. Miscellaneous
GUTTER 43 pcs 178.00 7,654.00 2,678.90
Pre painted
263 pcs 120.00 31,560.00 11,046.00
spandrel (6")
Silicone sealant 2 gals 1,800.00 3,600.00 1,260.00
Neoprene
26 kgs 200.00 5,200.00 1,820.00
tekscrew
Touch-up paint 48 gals 1,200.00 57,600.00 20,160.00
5mm thk
10 rolls 1,250.00 12,500.00 4,375.00
insulation foam

TOTAL COST FOR TINSMITHRY WORKS 217,146.00 76,001.10

VII CEILING WORKS

HardiFlex Ceiling
Board (1/4 x 4' x 320 pcs 270.00 86,400.00 30,240.00
8')
Finishing nail 18 kgs 80.00 1,440.00 504.00
Wood Adhesive
3 gal 1,500.00 4,500.00 1,575.00
Stickwell

TOTAL COST FOR CEILING WORKS 92,340.00 32,319.00

PAINTING
VIII
WORKS

A. EXTERIOR
MASONRY PUTTY 30 gal 350.00 10,500.00 3,675.00
PRIMER PAINT 30 gal 480.00 14,400.00 5,040.00
PLEXIBOND 149 gal 950.00 141,550.00 49,542.50
TOPCOAT PAINT 60 gal 470.00 28,200.00 9,870.00
THINNER 23 gal 180.00 4,140.00 1,449.00
ROLLER 1 lot 1,000.00 1,000.00 350.00
BRUSH 1 lot 950.00 950.00 332.50
SAND PAPER 1 lot 600.00 600.00 210.00

B. INTERIOR
MASONRY PUTTY 822 gal 350.00 287,700.00 100,695.00
PRIMER PAINT 329 gal 480.00 157,920.00 55,272.00
LATEX PAINT 549 gal 470.00 258,030.00 90,310.50
ROLLER 1 1 1,000.00 1,000.00 350.00
BRUSH 1 1 600.00 600.00 210.00
SAND PAPER 1 1 600.00 600.00 210.00

C. CEILING
PAINT
PUTTY 132 gal 350.00 46,200.00 16,170.00
SCREEN TAPE 1 lot 500.00 500.00 175.00
PRIMER PAINT 80 gal 470.00 37,600.00 13,160.00
SEMIGLOSS
127 gal 650.00 82,550.00 28,892.50
ENAMEL
THINNER 68 gal 470.00 31,960.00 11,186.00
ROLLER 1 lot 1,000.00 1,000.00 350.00
 BRUSH 1 lot 600.00 600.00 210.00
SAND PAPER 1 lot 600.00 600.00 210.00

TOTAL COST FOR PAINTING WORKS 1,108,200.00 387,870.00

IX TILE WORKS

FLOOR TILES
60x60cm ceramic
1219 pcs 229.00 279,151.00 97,702.85
tiles

Cement mortar 38 bags 215.00 8,170.00 2,859.50

White cement
215 bags 90.00 19,350.00 6,772.50
joint filler

TOTAL COST FOR TILE WORKS 306,671.00 107,334.85

DOORS &
X
WINDOW WORKS

a. DOORS
D1, 1m x 2.1
24 sets 8,000.00 192,000.00 67,200.00
Solid Panel Door
D2, 0.9m x 2.1
16 sets 2,000.00 32,000.00 11,200.00
Hollow Core Door

W1, 3.6m x 1.80m

48 set 7,000.00 336,000.00 117,600.00
Casement Window
W2, 2m x 1.80m
8 sets 5,500.00 44,000.00 15,400.00
Casement Window
W3, 1.5m x 0.5m
8 sets 1,350.00 10,800.00 3,780.00
Awning Window
W4, 0.5m x 0.5m
8 sets 450.00 3,600.00 1,260.00
Awning Window

TOTAL COST FOR DOORS & WINDOWS 618,400.00 216,440.00

FORMWORKS
XI. AND
SCAFFOLDINGS

FORMS AND
STAGING
1/2"x 4ft x 8 ft
678 pcs 460.00 311,880.00 109,158.00
phenolic plywood
 2"x3"10" good
3518 bd.ft. 60.00 211,080.00 73,878.00
lumber
CWN 2 1/2" 171 kgs 110.00 18,810.00 6,583.50
FINISHING NAILS
127 kgs 80.00 10,160.00 3,556.00
1 1/2"
160,000.0
GI PIPES 1 lot 160,000.00 56,000.00
0

TOTAL COST FOR FORMWORKS AND SCAFFOLDING 711,930.00 249,175.50

ELECTRICAL
XII
WORKS

PVC Conduit Pipe

100 pcs 100.00 10,000.00 3,500.00
(3m x 19 mm dia.)
PVC Conduit
Coupling (19mm 20 pcs 14.00 280.00 98.00
dia.)
Octagonal
Junction Box
Type Gauge #16 60 pcs 31.00 1,860.00 651.00
(101mm x 101mm
x 53mm) Deep
Electric Wires
THWN/THHN 130 m 24.00 3,120.00 1,092.00
(2.0mm2)
Electric Wires
THWN/THHN 130 m 25.00 3,250.00 1,137.50
(3.5mm2)
Electric Wires
THWN/THHN 140 m 33.00 4,620.00 1,617.00
(5.5mm2)
Single Gang
16 sets 104.00 1,664.00 582.40
Switch
Two Gang Switch 15 sets 136.00 2,040.00 714.00
Three Gang
2 sets 197.00 394.00 137.90
Switch
Duplex
Convenience 25 sets 148.00 3,700.00 1,295.00
Outlet
Enclosed Air
Circuit Breaker
4 sets 1,350.00 5,400.00 1,890.00
100AF, 3P, 220V,
70AT NEMA I
Enclosed Air
Circuit Breaker
4 sets 1,200.00 4,800.00 1,680.00
50AF, 3P, 220V,
40AT NEMA I
Enclosed Air
Circuit Breaker
4 sets 550.00 2,200.00 770.00
50AF, 2P, 220V,
40AT NEMA I
 Panelboard and
Cabinets
4 sets 1,500.00 6,000.00 2,100.00
(Enclosed 60amp,
2pst)
1x20 W Industrial
48 sets 330.00 15,840.00 5,544.00
Type FLF
6” dia. Pinlight
with 18W 220V 64 sets 150.00 9,600.00 3,360.00
CFL
Standard Ceiling
24 units 2,500.00 60,000.00 21,000.00
Fan
Electrical Tape ¾”
50 pcs 35.00 1,750.00 612.50
x 20 yards
Equipment for
Fire Alarm Bell 8 sets 1,442.00 11,536.00 4,037.60
(Vibrating 6” dia.)

TOTAL COST FOR ELECTRICAL WORKS 148,054.00 51,818.90

PLUMBING
XIII.
WORKS

Water Closet 20 set 5,240.00 104,800.00 36,680.00

Lavatory 24 set 7,000.00 168,000.00 58,800.00
Urinal 12 set 6,500.00 78,000.00 27,300.00
Floor Drain 8 pcs 280.00 2,240.00 784.00
PVC Pipes (50mm
30 pcs 345.00 10,350.00 3,622.50
dia.)
PVC Coupling
30 pcs 34.00 1,020.00 357.00
(50mm dia.)
PVC Tee (50mm
40 pcs 37.00 1,480.00 518.00
dia.)
PVC 87.5 degrees
(6mm Bend x 20 pcs 26.00 520.00 182.00
50mm)
PVC Clean-out
with Plug &
24 pcs 24.00 576.00 201.60
Sealing Ring
(50mm)
PVC Pipes
25 pcs 700.00 17,500.00 6,125.00
(101mm dia.)
PVC 87.5 degrees
(6mm Bend x 10 pcs 85.00 850.00 297.50
101mm)
Water Tank 2 pcs 16,500.00 33,000.00 11,550.00
Mirror 8 sq. ft. 500.00 4,000.00 1,400.00
Water Meter 2 pcs 1,600.00 3,200.00 1,120.00
Water Pump 2 pcs 15,000.00 30,000.00 10,500.00
Solvent 50 cans 214.00 10,700.00 3,745.00
 Teflon Tape 30 rolls 15.00 450.00 157.50

SEPTIC VAULT
1. Concrete Slab
Portland Cement 194 bags 260.00 50,440.00 17,654.00
Fine Sand 11.2 cu.m 560.00 6,272.00 2,195.20
Crushed Gravel 23.4 cu.m 640.00 14,976.00 5,241.60
10 mm ᴓ RSB
deformed bar x 182 pcs 135.00 24,570.00 8,599.50
6m
#16 Tie Wire 24 kgs 75.00 1,800.00 630.00

2. Masonry
Works
4" thick CHB 1052 pcs 10.00 10,520.00 3,682.00
Portland Cement 43 bags 260.00 11,180.00 3,913.00
Fine Sand 3.6 cu.m 560.00 2,016.00 705.60
Crushed Gravel 2 cu.m 640.00 1,280.00 448.00
10mm ᴓ RSB
deformed bar x 29 pcs 135.00 3,915.00 1,370.25
6m
#16 Tie Wire 2 kgs 75.00 150.00 52.50

3. Plastering
works
Portland Cement 24 bags 260.00 6,240.00 2,184.00
Fine sand 1.4 cu.m 560.00 784.00 274.40
Sahara
waterproofing 5 bags 600.00 3,000.00 1,050.00
compound

4. Earthworks
Excavation 76 cu.m 235.00 17,860.00 6,251.00
Forms, stagging
8,000.00 2,800.00
and hardware

TOTAL COST FOR PLUMBING WORKS 629,689.00 220,391.15

EARTH WORKS
XIV.
& FILLS

EXCAVATION 682 cu.m 325.00 221,650.00 77,577.50

BACKFILL 0 cu.m 325.00 - -
 CRUSHED
GRAVEL 160 cu.m 640.00 102,400.00 35,840.00
BEDDING

TOTAL COST FOR EXCAVATION WORKS 324,050.00 113,417.50

XV. SITE WORKS

CLEARING
WORKS (clearing, 1 lot 8,000.00 8,000.00 2,800.00
and related works)
SITE
ENCLOSURE (site
enclosure, 1 lot 4,500.00 4,500.00 1,575.00
signages, &
related works

TOTAL COST FOR SITE WORKS 12,500.00 4,375.00

XVI. EQUIPMENTS
One bagger mixer
2 unit 172.00 17,200.00
(50 days)
Dump trucks (30
1 unit 1,420.00 42,600.00
days)
Concrete vibrator
3 unit 91.25 2,737.50
(10 days)
Welding machine
5 unit 371.00 27,825.00
(15 days)
Bar cutter (50
5 unit 219.75 54,937.50
days)
Bar bender (50
3 unit 351.50 52,725.00
days)
Back hoe (12
1 unit 1,537.00 18,444.00
days)
Plate compactor (3
2 unit 123.00 738.00
days)
Transit mixer (30
1 unit 1,318.00 39,540.00
days)
Water truck (30
1 unit 2,450.00 73,500.00
days)
Electric drill (50
5 unit 201.00 50,250.00
days)

TOTAL COST FOR EQUIPMENTS 380,497.00 -

SCHOOL EQUIPMENT,
XVII. FIXTURES AND
FURNITURES
ARM CHAIR 500 unit 400.00 200,000.00
MONOBLOCK
50 unit 250.00 12,500.00
CHAIR
 STOOL 100 unit 500.00 50,000.00
TABLES 25 unit 2,500.00 62,500.00
LABORATORY
100 unit 2,000.00 200,000.00
APARATUS
SPEAKERS 4 unit 1,500.00 6,000.00
MICROPHONE 3 unit 30,000.00 90,000.00

TOTAL COST FOR SCHOOL EQUIPMENT, FIXTURES

621,000.00 -
AND FURNITURES

TOTAL MATERIAL COST PHP 12,915,813.00

TOTAL LABOR COST PHP 4,204,380.60
TOTAL DIRECT COST PHP 17,120,193.60

OCM (10%) PHP 1,712,019.36

CONTRACTOR'S PROFIT (10%) PHP 1,712,019.36
12% VAT PHP 2,054,423.23
TOTAL INDIRECT COST PHP 5,478,461.95

TOTAL COST PHP 22,598,655.55

 Table 2: Summary of The Total Construction Cost

ITEM MATERIAL
DESCRIPTION LABOR COST
NO. COST
I CONCRETE WORKS ₱2,329,280.00 ₱815,248.00
II STEEL WORKS ₱4,206,731.00 ₱1,472,355.85
III MASONRY WORKS ₱760,955.00 ₱266,334.25
IV PLASTERING WORKS ₱258,240.00 ₱90,384.00
V ROOF FRAMING WORKS ₱288,330.00 ₱100,915.50
VI TINSMITHRY WORKS ₱217,146.00 ₱76,001.10
VII CEILING WORKS ₱92,340.00 ₱32,319.00
VIII PAINTING WORKS ₱1,108,200.00 ₱387,870.00
IX TILE WORKS ₱306,671.00 ₱107,334.85
DOORS & WINDOW
X ₱618,400.00 ₱216,440.00
WORKS
FORMWORKS AND
XI ₱711,930.00 ₱249,175.50
SCAFFOLDINGS
XII ELECTRICAL WORKS ₱148,054.00 ₱51,818.90
XIII PLUMBING WORKS ₱629,689.00 ₱220,391.15
XIV EARTH WORKS & FILLS ₱324,050.00 ₱113,417.50
XV SITE WORKS ₱12,500.00 ₱4,375.00
XVI EQUIPMENTS ₱380,497.00
SCHOOL EQUIPMENT,
XVII FIXTURES AND ₱621,000.00
FURNITURES
₱12,915,813.00 ₱17,120,193.60

TOTAL MATERIAL COST ₱12,915,813.00

TOTAL LABOR COST ₱4,204,380.60
TOTAL DIRECT COST ₱17,120,193.60

OCM (10%) ₱1,712,019.36

CONTRACTOR'S PROFIT (10%) ₱1,712,019.36
12% VAT ₱2,054,423.23

TOTAL COST ₱22,598,655.55

C. ANNUAL EXPENSES

1. Salaries and Wages

Laboratory Custodian (2) = Php 26,000.00

Utility Worker (3) = Php 15,000.00

Total Cost = Php 41,000.00

2. Phil Health, GSIS, PAG-IBIG

5% of Basic Salaries = 0.05(27,067.00)

Total Cost = Php 1,353.35

3. Additional Annual Expenses

Water and Power Bills = Php 354,000.00

School and Office Supplies = Php 84,000.00

Maintenance Cost = Php 60,000.00

Total Cost = Php 498,000.00

D. ANNUAL MISCELLANEOUS FEES

Annual Miscellaneous Fees

Student Occupies the Building per year

 Rooms (All Occupied)

Miscellaneous Fee per Student = Php 300.00

Number of Students = 540 students

Annual Miscellaneous Fee = (Php 300) (540)

= Php 162,000.00
 E. DEPRECIATION COST

𝒊
𝒅 = (𝑪𝑶 − 𝑪𝑳 )
(𝟏 + 𝒊)𝒏 − 𝟏

Annual depreciation costs:

A. Building Cost

0.08
𝑑 = (22,598,655.55)(1 − 0.1)
(1 + 0.08) −1

𝒅 = 𝑷𝒉𝒑 𝟕𝟖, 𝟓𝟏𝟏. 𝟎𝟏

B. School Equipment, Fixtures, and Furniture

0.08
𝑑 = (621,000.00)(1 − 0.1)
(1 + 0.08) −1

𝒅 = 𝑷𝒉𝒑 𝟐𝟎, 𝟓𝟖𝟒. 𝟎𝟑

TOTAL DEPRECIATION COST = Php 99,095.04

II. FINANCIAL ANALYSIS

A. BENEFITS

The benefits will come from the students’ miscellaneous

fees, through the income of the students when they become

professionals, and also through the alumni association

donations.

Miscellaneous fee = Php 162,000.00 per year

Average Income = Php 192,000.00 per year

 Average graduating students per year = 300 students

Benefits through Income = Php 5,760,000.00 per year

Alumni Donations = Php 100,000.00

Fund Raising during Foundation Days = Php 150,000.00

TOTAL BENEFITS = Php 6,172,00.00

DISBENEFITS (ANNUAL EXPENSES) = Php 540,353.35

B. COST

Present Worth of Maintenance Cost

Php 22,598,655.55 (0.1) = Php 2,259,865.55

Present Worth of Replacement Cost

, , .
= 𝑃ℎ𝑝 1,040,237.21
( . )

Capitalized Cost

Cc = Project Cost + Present Worth Maintenance Cost +

Present of Replacement Cost

Cc = 22,598,655.55 + 2,259,865.55 + 1,040,237.21

Cc = Php 25,898,758.31

The total cost of the proposed project is converted to

annuity to determine its annual cost.

1 − (1 + 𝑖)
𝑃𝑟𝑒𝑠𝑒𝑛𝑡 𝑊𝑜𝑟𝑡ℎ = 𝐴 𝑥
𝑖
 1 − (1 + 0.08)
25,898,758.31 = 𝐴 𝑥
0.08

𝑨 = 𝑷𝒉𝒑 𝟐, 𝟏𝟕𝟏, 𝟖𝟕𝟒. 𝟎𝟔

C. BENEFIT-COST RATIO

From the total annualized cost and total annual benefits

of the proposed project, the benefit-cost ratio is:

𝐵 6,172,000.00 − 540,353.35
= = 𝟐. 𝟓𝟗
𝐶 2,171,874.06

In order to say that a project is feasible, the B/C ratio

must be greater than one. Since the benefit-cost ratio is 2.59,

the project therefore, is financially feasible.

 CHAPTER III

ORGANIZATION AND PROJECT MANAGEMENT STUDY

Quality management system is the use of all the materials and

equipment, as well as human power, efficiently and effectively, to the

highest standard as possible, in order to bring about a best and quality

output. It also means to organize and coordinate worker to produce a

better quality outcome. This chapter focuses on the study of the

organizational management of the construction of the proposed project.

This chapter will discuss the proper management scheme of the

project. This shows the form of ownership undertaken by La Union

National High School, the people who will be part of the project, their job

description and specifications, functions, and their proper compensation.

Also, to the specific schedules from the preparatory stage start of operation

are to be shown. The organization of the school would be competent

enough to provide the necessary needs of the students and at the same

time, to be able to provide quality management. No matter how modern

the equipment, high skilled and experienced human resource the project

has, if there is no proper management, still resources such as time, money

effort will be put into waste.

Introduction

The administrative staff of La Union National High along with the

Government of La Union and Department of Public Works and Highways

generally will be providing the necessary technical and financial needs for

the project. Moreover, the administration of Lau Union National High

School as integrated by the Department of Education, is continuing as

staff development of their students.

A staff development program for the new Academic Building shall be

put in place. Such staff development program shall be in accordance with

the strategic role that the new Academic Building, as part of the main

stream od La Union National High School, will have to play in the

development of the municipal, as well as the Province of La Union.

Project Management and Source of Funding

The operation and the management of the project is the

responsibility of the Municipal Government of San Fernando headed by

Hon. Mayor Alfredo Ortega, the City mayor of San Fernando, together with

the Department of Education (DepEd) who will be helping the City

Government of San Fernando the needed financial cost from the

construction of the academic building.

 During the operation, the site engineer will provide the city

government a daily report, on includes the accomplishments report,

operation of the on-going construction since the mayor’s office will be the

head of technical, administrative supervision and personnel complement

subject to the construction of the academic building.

a. Operation

The 4-storey high school building shall generally and initially

correlate its operation and function to the current condition and parameter

implemented in the existing La Union National High School.

b. Operation Analysis

The 4-storey high school building shall operate according to the

guidelines in the Commission on Higher Education (CHEd) Memorandum

Order No. 1 of 2018 and the needs of the current students who deserve

better and comfortable classroom facilities which includes spacious

classroom with ventilation: also, to meet the demands of the growing

population of the students.

Organizational Set-Up

A. Construction Phase

1. Owner

Function: The one in-charge in providing financial needs for the

construction of the project.

2. Engineer

Functions:

a) The one responsible in ensuring that the construction abides

in the NBCP.

b) The one who orders for revisions to be made in site.

Qualifications:

a) Must have a good moral character, a citizen and Resident of

the Philippines and a licensed engineer.

b) Have at least 2 years of experience in the field and office.

Salary Scale: Php 1200.00/day

3. Safety Officer

Functions:

a) The one responsible in enforcing safety measures in the

workplace.

b) Monitors if the workers are complying to safety regulations.

 Qualifications:

a) Must have a good moral character, a citizen and resident of

the Philippines and a licensed safety officer.

b) Have at least 2 years of experience in the field and office.

Salary Scale: Php 500.00/day

4. Electrician

Functions:

a) The person who supervise electrical works.

b) Ensures that all electrical works abide the provisions of the

PEC.

Qualifications:

a) Should have at least 2 years of experience in electrical layout.

b) Have units of the master electrician, and knows how to read

drawing plans.

Salary Scale: Php 500.00/day

5. Plumber

Function: An expert and responsible in the installation of the

plumbing works in the plans and specifications.

Qualifications:

a) Should have a good moral character.

b) Must have experience in plumbing layout and preferably a

licensed master plumber.

 c) Have at least 2 years of experience, and knows how to read

drawing plans.

Salary Scale: Php 500.00/day

6. Timekeeper

Functions: Person who is responsible in the attendance of the

workers, records the daily accomplishment in the site and does

progress report.

Qualifications:

a) Preferably a college graduate.

b) Must have good moral character.

Salary Scale: Php 350.00/day

7. Foreman

Functions:

a) Supervises the works in the site if the engineer or architect is

not around.

b) Ensures that workers follow all the details in the plan.

Qualifications:

a) Must be skilled worker and have at least 2 years of experience

in the field.

b) Knows how to read drawing plans.

Salary Scale: Php 500.00/day

8. Leadman

Functions:

a) In the absence of the foreman, he acts as the head of the

construction works.

b) The one who supervised the works of skilled workers making

sure that they have quality works.

Qualifications: Must be a skilled worker and have at least 2 years of

experience in the field and knows how to read drawing plans.

Salary Scale: Php 450.00/day

9. Skilled workers

Function: A skilled laborer who is the head of a certain type of work.

a. Steelman

Functions:

a) The head of all steelworks.

b) Responsible in the preparation, fabrication, and

installation of all the steel to be used.

Qualifications:

a) Must be a skilled worker.

b) Must have at least 2 years of experience in steelworks.

Salary Scale: Php 400.00/day

 b. Carpenter

Functions:

a) The head of all carpenters.

b) Responsible in the preparation, fabrication, and

installation of all the formworks to be used.

c) May also assign works among laborers.

Qualifications:

a) Must be a skilled worker.

b) Must have 3 years of experience in carpentry.

Salary scale: Php 400.00/day

c. Mason

Functions: The head of all concrete works of the project such

as layout of CHB, concrete mixing and curing of the concrete

mixes.

Qualifications:

a) Must be a skilled worker.

b) Must have 3 years of experience in concrete works.

Salary Scale: Php 400.00/day

10. Laborer

Functions:

a) An all-around worker in the construction.

b) Does basic construction work in the site.

 Qualifications: He must be responsible and physically fit with his

work, and have at least 2 years of experience.

Salary Scale: Php 350.00/day

11. Painter

Functions:

a) Responsible in the painting the building.

b) May also assign works among laborers related to painting

works.

Qualification: Must be a skilled worker and must have at least 1 year

of experience in painting.

Salary Scale: Php 350.00/day

B. Operational Phase

1. Principal

Functions:

a) Administers the activities of the school and evaluates the

performances of the faculty and staff.

b) Regulates school policies which are being set by their

administration and agencies that are in partnership with the

school.
 c) Ensures that providing quality education is the highest

priority of the school by having up-to-date facilities for the

students.

d) Does the scheduling of subjects and loads of all the teachers.

e) Attends seminars and trainings that improves his/her

knowledge in supervising the school.

f) Innovates new techniques of teaching and learning for the

students and employees

Qualifications:

a) Must be a board passer of the degree Bachelor of Science in

Secondary Educations.

b) Have taken Master’s degree in this profession.

c) Have attended various seminars and training about school

management and supervision.

d) Have an enough working experience as a teacher.

e) Must have good communication and management skills.

2. High School Teacher

Functions:

a) Provides quality learning to students.

b) Attends updates with the course requirements of the subject.

 c) Maintains discipline of the students and makes every lesson

interesting for the students.

d) Attends school activities and meetings to be fully informed of

the policies and programs of the school.

e) Attends training and seminar that will enrich his/her

knowledge.

Qualifications:

a) Has a bachelor’s degree in secondary education and should

also be a board passer of this course.

b) Has taken master’s degree in any subject or courses related

to the specific lessons of this senior high school strand.

c) Have at least 2 years of teaching/mentoring experience.

3. Laboratory Custodian

Functions:

a) Manages and lends laboratory materials and apparatuses to

students who are enrolled to laboratory subjects.

b) Takes actions if any of the apparatuses/equipment was

defective, broken, destroyed by students.

c) Makes sure that borrowed materials are being brought back

within the time assigned.

 Qualifications:

a) A college graduate of course related to laboratory works.

b) Has enough familiarity of how to operate laboratory

equipment, tools and apparatuses.

c) Knows the specific name and usage of every material/tools

present in the laboratory.

4. Medical Staff

Functions: Provides health care to students and employees

Qualifications:

a) Must have a degree in Bachelor of Science in Nursing and

should be a licensed nurse as well.

b) Have undergone trainings about health care.

5. Janitor

Functions:

a) Maintains cleanliness within the school’s premises.

b) Does safekeeping of tools used in cleaning and gardening.

c) Assists other activities of school that needs manpower like

school decorations and installation of facilities.

Qualifications:

a) At least a High School Graduate.

b) Must possess honesty, hard work and be approachable to

every employee and student of the school.

Figure 2: Construction Phase Organizational Set-up
Figure 3: Operational Phase Organizational Set-up
 Chapter IV

SOCIO-ECONOMIC AND ENVIRONMENTAL STUDY

One of the most important aspects of every feasibility study is the

socio-economic and environmental aspect. This study determines the

contribution of the said project to the students and teachers of La Union

National High School. In this chapter shows the different impacts and

benefits of the project to the students and to the community.

Introduction

The success of the project is not only dependent on the profits

generated, but also from the social and economic benefits offered to the

students, employees and to the community. The establishment of the

proposed project will accommodate senior high school students of La

union. The proposed building will surely increase literacy rate and will

serve as an aid to measure the capacity of the project in meeting the

demands of the students. In the construction and operation of this project,

employment, taxes, and income are guaranteed. Which would increase the

revenue of the City of San Fernando, La Union. Upon the completion of the

said academic building in La Union National High School, environmental

awareness would be enhanced to all of the students.

 There are many benefits that the project has to offer, as long as socio-

economic and environmental aspects is concern. In this benefits, would

help in uplifting the literacy rate of the students of La Union National High

School.

I. EMPLOYMENT AND INCOME OF THE PEOPLE

In the construction of the four-storey academic building in La Union

National High School there are many manpower and professionals needed

which will increase the rate of employment and help the people for their

income. Upon construction of the project the employees will be guaranteed

to earn income for their families. Upon completion of the project teachers

and non-teaching staff are also needed in the school. Therefore, increase

in the employment rate is apply.

II. COMMUNITY DEVELOPMENT

The proposed project four-storey academic building in La Union

National High School will provide facilities for the students to acquire

comfortable learning and excellent education. Upon completion of the

proposed project will accommodate more students and will provide

comfortable and healthy environment for them. It will also provide quality

education that its students need in order to achieve their goals and become

successful and productive professionals in the future.

III. TAXES AND REVENUES

The proposed project will be constructed in La Union National High

School which is a public school funded by the government, it doesn’t

generate much taxes and revenues. Public schools are being funded by the

government which means that the government pays all the expenses of the

school from the salary of their employees down to the expenses on the

facilities and other resources needed by the school. In addition, during the

construction of the proposed four-storey academic building, the workers

can contribute to the taxes and revenues if they are not earning minimum

wage.

IV. DEMAND FOR MATERIALS AND SUPPLY OF COMMODITIES

The civil engineer should be in charge for the materials needed for the

construction of the proposed project that will be acquired at the local

hardware. The civil engineer will then choose the standard materials

needed for the construction and the local hardware will offer supplies for

the proposed project. The civil engineer or materials engineer that was in

charge in materials needed in the proposed project will be also benefited.

V. ENVIRONMENTAL IMPACT

Once the proposed project accomplished there will be an awareness to

the proper disposal of the garbage, therefore there is a need to hire

additional utility workers. And the contact between the students and

utility workers should adopt easily by the students so that they will be

carried out from the school that will lead to cleanliness and healthier

lifestyle. With this, awareness on the proper disposal of garbage inside the

new building’s premises and within the school’s parameter will be

promoted. Since it has to maintain the aesthetic beauty of the building to

draw the student’s interest as well as to come up to more conducive and

environmental friendly school.

The four-storey academic building in La Union National High School

will also take part of the various programs, projects and activities

implemented by the school. The school will adopt Waste Management and

Disposal Program wherein there will be at least two garbage cans labeled

with biodegradable and non-biodegradable materials in order to impose

proper segregation of waste in the campus.

With this integrated school programs concerned with the

environment and health of the students. The knowledge being learned and

acquired by the students will then be carried out from the school to their

own home. And will lead to more vigorous result of cleanliness and healthy

lifestyle which is then the start of more improved and higher state of

environmental development within the school.