v5.

PROJECT COST AND PROGRAMMING

The worst error a prospective fishfarm operator can make is to develop an area without project cost estimates and a programme of development. Development money is wasted, and management of the area may be difficult or impossible. Poor planning is the major cause of project failure and even leads to personal bankruptcy. It is very necessary that preparation of the project cost estimates as well as programme of development be done before any construction is started. It is important to know approximately how much will be spent to finish the whole project. It is better that one knows how and when the project will be constructed and completed. The importance of the project cost estimates and programme of development should not be underestimated.

5.1 Project Cost EStimates

The cost of development can be estimated based on the 1) data gathered in the area, 2) proposed layout plan, and 3) design and specification of the physical structures and other facilities.

5.1.1 Pre-development estimates

a. For the preparation of Feasibility Study. Whether the fishpond operator will apply for a loan in the Bank or he will use his own money to finance the development of a fishpond project, a feasibility study of the area is needed. The feasibility study will be his guide in the development and management of the project. All activities such as the development, management and economic aspects are embodied in the feasibility study. It is a specialized work by engineers, aquaculturist and an economist having special knowledge in fishfarming industry. Usually, for the preparation of the feasibility study, the group charges about 2% to 10% of the total estimated cost of development. b. For the Survey of the Area. An area survey includes a topographic survey, and re-location survey. Whether the area is owned by a private individual or by the government, an area survey by a licensed Geodetic Engineer is very important for the proper location and boundary of the land. It is one of the requirements in the application for a 25-year Fishpond Lease Agreement in the BFAR and also in the application for a loan in the Bank. It must be duly approved by the Bureau of Lands. A topographic survey is necessary in the planning and development of the project. A re-location survey must be conducted to check the validity of the approved plan as well as to avoid conflict in the future. An area and topographic survey done by a Geodetic Engineer will cost about 400.00 for the first hectare or a fraction thereof and 50.00 per hectare for the succeeding hectarages. Re-location survey is cheaper than the area and topographic survey.

c. For the Construction of a Temporary Shelter. Experienced fishpond laborers generally do not live in the locality. To be more effective they need to have a place to stay during the construction activities. For the construction of a shelter house made of light material, assume a cost of 300.00/sq.m. of shelter. This includes materials and labor costs. d. For the Construction of Transport Facilities. Flatboats will be needed in the transport of mudblocks. A banca may be used in going to the site. Cost of construction varies from locality to locality. A flatboat with dimensions of 8' 4' 14" will cost around 500.00. A small banca will cost around 600.00. e. For Representation and Transportation Expenses. This item is not included in the cost of development of a fishpond project. However, it appears that a big amount is being incurred in representation and transportation expenses before the project is started. Example of expenditures are follow-ups of survey plan of the area, FLA application and bank loan. Other expenses are incurred in canvassing of supplies and materials, survey of manpower requirement and equipment needed in the development of a project. Representation and transportation expenses cover about 1020 percent of pre-development cost.

5.1.2 Development Proper.

a. For the Clearing of the Whole Area. Clearing the area of vegetation can be divided into three categories, namely: 1) cutting and chopping, 2) Falling and burning, and 3) uprooting and removal of stumps and logs. Generally, cutting and chopping costs about 500.00 per hectare; piling and burning costs about 300.00 per hectare; and for the uprooting of stumps and removal of logs, costs depend on their size and number per unit area. A hectare pond, for instance, having 200 stumps of size below 15 cm. in diameter will cost about 800.00. Stumps numbering 50 pieces with diameter over than 15 cm. will cost about 1,000.00 per hectare. Cost for the clearing depends upon the prevailing price in the locality. b. For the Construction and Installation of Gates. Cost of construction and installation of a gate can be calculated based on its design and specification proposed in the area. The two kinds of gate commonly constructed in fishponds ( concrete and wood) will be discussed separately. 1. Estimating the cost of construction and installation of a concrete gate: a. Based on the plan of a concrete gate, determine the area and volume of the walls, wings, floor, bridges, toes, aprons and cut walls and compute for the total volume using the following formula: A=LW V=At VT = V = V 1 + V2 + V3 + Where: A = V = Area Volume L = W = Length Width

VT =

Total volume t

thickness

Determine the number of bags of cement, and the volume of gravel and sand by multiplying the total volume with the factors precomputed for a Class A mixture plus 10% allowance for wastage, thus: No. of bag cement = Volume of Gravel = Volume of Sand = (VT 7.85) + 10% (VT 0.88) + 10% (VT 0.44) + 10%

Class A mixture has a proportion of 1:2:4, that is one part of cement for every two parts of fine aggregate (sand) and four parts of coarse aggregate (gravel). b. Every square meter of a concrete gate uses 6.0 m. long of reinforcement bar placed at an interval of 0.25 m. both ways on center. This is equivalent to 1 bars at a standard length of 20 feet per bar. The floor and toes use the same size of bar, thus: No. of reinforcement bar = (Af + 4t) 1.5 Where: Af = Area of the floor At = Area of the toes The walls, wings, etc. use two different sizes of reinforcement bar, thus:

Where: Aw = Area of the walls Ax = Area of the wings An = other areas c. Find the total area of a concrete gate by adding all the areas mentioned in (a). Calculate the weight of tie wire no. 16 by multiplying the total area with a standard value per sq.m. of concrete, thus: Weight (kg) = AT 0.3 Kg/sq.m. d. Calculate the volume of boulders needed by multiplying the area of the flooring with the thickness of fill.

e. Form lumber can be calculated by multiplying the area of walls, wings and bridges by 2. Plywood can also be used as form. Since lumber measurement is still in feet it should be converted into meter, (see conversion table). Use 2" 3" wood for form support. f. Bamboo puno could be calculated from the area of the flooring. A square meter of flooring will require more or less 20 puno staked at an interval of 0.25 m. both ways on center. This, however, depends upon the hardness of the floor foundation. g. Screens and slabs are calculated based on the design of the concrete gate. h. Assorted nails are calculated based on the thickness of the form lumber used. i. Labor cost is 3540% of total material cost. However, close estimates can be computed by determining the cost of labor for the construction and removal of temporary earth dike, excavation of the foundation, staking of bamboo puno, placing of boulders and gravel, construction of forms, concreting of the gate and others. 2. Estimating the cost of construction and installation of a wooden gate. a. Based on the plan of a wooden gate, determine the size and number of lumber for the sidings and flooring. Compute for the total board feet using the following formula:

Where: L W t b. = Length of lumber in inches = Width of lumber in inches = thickness of lumber in inches Based on the design and specification of the pillars and braces, compute for the total board feet using again the above formula. c. Determine the size and number of lumber needed for slabs and screen frames and compute the total board feet. d. Calculate the assorted nails (bronze) based on the lumber used. e. Calculate the coal tar requirement in gallons. f. Calculate the cost of nylon and bamboo screens. g. Calculate the labor cost at 3040% of the material cost or calculate in detail according to the labor requirement. Calculation includes the construction, painting and installation of the wooden gate and excavation of the floor foundation.

c. For the Construction of the Proposed Dikes. Dikes constructed in fishponds vary in sizes. Bigger dikes are, of course, more costly to construct than smaller dikes. In other words, the perimeter or main dike will expend more than the secondary or tertiary dikes. The cost of construction is calculated based on the volume of soil filled and generally it costs 6.00 per cubic meter. Labor cost, however, depends on the prevailing price in the locality. Transport distance of soil material to the dike is also considered in calculating the cost of construction. Long transport distance decreases individual output per day and thus will increase construction cost. Working eight hours a day, one skilled worker can finish diking, using one flat boat, based on the following distances: 10 100 meter distance 101 300 meter distance 301 500 meter distance 6 7 cu.m./day 5 6 cu.m./day 4 5 cu.m./day

d. For the Excavation and Leveling of Ponds. Cost for excavation depends upon the volume of soil left inside the pond after the dikes have been constructed. Considering that some soils have been excavated for diking purposes, only about 60% is left for excavation. Generally, escavation costs about 2.00 per cu.m. depending upon the prevailing labor cost in the locality. After excavation, leveling of the pond bottoms follows. This involves the cut-and-fill method (excavation and dumping to low portions). Generally, leveling costs about 2,000.00 per hectare. e. For the Construction of Facilities. Facilities include the caretaker's house, working shed, bodega, chilling tanks, etc. For proper estimates there should be a simple plan of the facilities. However, rough estimates can be made based on the floor area of a house to be constructed. For a house made of light materials, assume a cost of 400.00 per sq.m. floor area; and for concrete structures, assume 1,000.00 per sq.m. All assumed costs include materials and labor based on 1979 price of materials. f. For the Purchase of Equipment. A fishpond project cannot be operated without equipment. Examples are fish nets, digging blades, shovels, scoop nets, bolos, etc. These items should be included as part of the total development cost. Such equipment should be listed and calculated. g. Contingencies. There should be a contingency fund for unforeseen expenditures, increase of prices and other materials not included in the above calculations. Assume 10% of the above costs for contingencies.

5.1.3 Cost estimate

For the purpose of determining the cost of developing a new brackishwater fishfarm project, a typical example of a 50-hectare fishpond project applied to the Bureau of Fisheries and Aquatic Resources for a 25-year Fishpond Lease Agreement is presented below. I. Pre-Development

1. For the preparation of feasibility study 1,000.00 2. Re-location of boundaries 2,000.00 For the construction of temporary shelter for laborers (light 3. 4,000.00 materials) 4. For the construction of flatboats, 5 units at 500.00/unit 2,500.00 5. For the purchase of small banca, 1 unit at 600.00 600.00 6. For representation and transportation expenses 3,000.00 Sub-total 13,100.00 II. Development Proper Clearing of the area at 600.00/ha. (cutting, chopping, burning & 1. 30,000.00 removal of logs Construction of dikes (filling, compacting and shaping by manual labor) Main dike along bay and river 1,920 linear meters, 6.0 m base, 103,680.0 a. 2.0 m crown and 2.25 m height or a total of 17,280 cum. at 0 6.00/cu.m Main dike along upland, 840 linear meters, 5.5 m base, 2.0 m b. 37,800.00 crown, and 2.0 m height or a total of 6,300 cu.m at 6.00/cu.m Main canal dike, 980 linear meters, 5.0 m base, 2.0 m crown, c. 33,957.00 and 1.8 m height, or a total of 6,174 cu.m. at 5.50/cu.m 2. Secondary dike, 2,540 linear meters, 4.0 m base, 1.0 m crown & d. 52,387.50 1.5 m height or a total of 9,525 cu.m at 5.50 per cu.m Secondary canal dike, 400 linear meters, 4.0 m base, 1.5 m e. crown and 1.4 m height, or a total of 1,540 cu.m at 5.50 per 8,470.00 cu.m Tertiary canal dike, 240 linear meters, 3.5 m base, 1.5 m crown f. 3,600.00 and 1.2 m height or a total of 720 cu.m at 5.00 per cu.m Tertiary dike, 700 linear meters, 3.0 m base, 1.0 m crown and g. 7,000.00 1.0 m height or a total of 1,400 cu.m at 5.00 per cu.m Construction and installation of gates Main double opening concrete gate, 2 units at 20,000/unit a. 40,000.00 including labor cost 3. Construction and installation of 10 units secondary wooden b. 30,000.00 gates at 3,000.00 per unit Construction and installation of 15 units tertiary wooden gates at c. 22,500.00 1,500/unit 4. Excavation and levelling of pond bottoms (cut-and-fill) a. Nursery Pond, 1.5 ha at 2,000/hectare 3,000.00 b. Transition Pond, 4.0 ha at 2,000/ha 8,000.00 c. Formation Pond, 8.0 ha at 2,000/ha 16,000.00 d. Rearing Pond, 32.0 ha at 2,000/ha 64,000.00

5. Uprooting and removal of stumps at 600/ha For the construction of facilities a. Caretaker's Hut made of light materials, 2 units at 6,000/unit 6. b. Bodega, made of light materials for inputs and equipment, 1 unit c. Chilling tank with shed, made of light materials For the purchase of equipment a. Nets for harvesting 7. b. Digging blades and carpentry tools c. Containers 8. Contingencies (10% of cost) Sub-total TOTAL

30,000.00 12,000.00 5,000.00 3,000.00 3,000.00 1,000.00 2,000.00 52,350.05 562,750.5 5 575,850.5 5

ESTIMATED COST FOR ONE UNIT DOUBLE OPENING MAIN CONCRETE GATE Cost of Materials 1. 2. 3. 4. Cement Sand Gravel Boulders Reinforcement Bar 5. a) 20' b) 3/8 20' Plywood form 6. ( 4' 8") Lumber (S4S) a) 2" 2" 12' 7. b) 2" 3" 12' c) 1" 2" 12' d) 1" 12" 12' 8. Assorted Nails 9. G.I. Wire #16 10. Bamboo Puno Quantity 140 bags 10 cu.m. 20 cu.m 8 cu.m 80 pcs 35 pcs 49 pcs 30 pcs 16 pcs 10 pcs 6 pcs 10 kgs 20 kgs 400 pcs Unit Price 24.00/bag 60.00/cu.m 80.00/cu.m 50.00/cu.m 22.00/pc 12.00/pc 48.00/pc Amount 3,360.00 600.00 1,600.00 400.00 1,760.00 420.00 2,352.00

I.

II. Labor (40% of material cost) Contingencies (10% of material cost) III.

3.00/bd.ft 360.00 3.00/bd.ft 288.00 3.00/bd.ft 60.00 3.00/bd.ft 216.00 7.50/kg 75.00 8.00/kg 160.00 4.00/pc 1,600.00 Sub-total 13,251.00 5,300.00 1,325.00 T O T A L 19,876.00 say 20,000.00

ESTIMATED COST FOR ONE UNIT SECONDARY WOODEN GATE

Cost of Materials I. 1. 2. 3. Description 1"10"14' Ply Board 1"10"8' Slabs 1"12"14' Pillars and Braces 2"3"10' Quantity Unit Price Amount 34 pcs. 3.00/bd.ft. 1,190.00 3 pcs. 3.00/bd.ft. 60.00 2 pcs. 3.00/bd.ft. 84.00 4 pcs. 3.00/bd.ft. 60.00

4. 5. 6. 7. 8. 9. II.

Screen Frames Groove Nylon Screen Bamboo Screen Nails Coaltar

2"3"8' 2"3"14' 3"4"10' 2"3"16' 1-"2"7' 1-"2"10' Mesh size #1/16 3m long whole bamboo Assorted

7 pcs. 2 pcs. 12 pcs. 2 pcs. 1 pc. 16 pcs. 8 sq.m. 6 pcs. 8 kg. 2 cans

Labor (30% of material cost)

3.00/bd.ft. 84.00 3.00/bd.ft. 42.00 3.00/bd.ft. 360.00 3.00/bd.ft. 48.00 3.00/bd.ft. 5.25 3.00/bd.ft. 120.00 3.00/sq.m. 24.00 4.00/pc. 24.00 7.50/kg 60.00 60.00/can 120.00 Sub-total 2,281.25 684.37 T O T A L 2,965.62 say 3,000.00

ESTIMATED COST FOR ONE UNIT TERTIARY WOODEN GATE I. Cost of Materials 1. 2. 3. 4. 5. 6. Ply Board Slabs Pillars and Braces Grooves and Screen Frames Nails Coal tar Description 1"12"10' 1"12"10' 2"3"10' 1-"2"8' Assorted Quantity 20 pcs. 3 pcs. 14 pcs. 18 pcs. 6 kg. 1 can Unit Price Amount 3.00/bd.ft. 600.00 3.00/bd.ft. 90.00 3.00/bd.ft. 210.00 3.00/bd.ft. 108.00 7.50/kg. 45.00 60.00/can 60.00 Sub-total 1,113.00 333.90 T O T A L 1,446.90 say 1,500.00

II. Labor (30% of material cost)

NOTE: Costing based on 1979 retail price

5.2 Program of Work and Schedule of Development

A simple definition of project programming is listing construction activities in relation to manpower requirement versus the volume or piece of work required at a certain time of development. Project programming is undertaken to determine how and when a project will start and be completed with a given amount of work and labour force. It is done by determining the number of laborers that can finish a certain activity in a given period based on their daily output, or by determining the number of days a piece of work can be finished based on the available laborers in the area. In the preparation of the programme and schedule of development, careful analysis and presence of mind is required because it will be the basis of implementation of the project. Evaluations and calculations must be carried out realistically so that a job is properly developed and economically done.

Assessment of the manpower is necessary in order to have an assurance of the required number of people even during the start of the construction. In most cases, laborers skilled in fishpond construction are not readily available at the site, and if available, the number is not sufficient for the requirement. If this happens, there is a need to import skilled laborers from the neighboring town or province. In the survey of manpower, points to be considered are as follows: a. Quantity of skilled laborers that can be hired in the area and vicinities. b. Work experience or duration of involvement in fishpond development. c. The time in which the laborers are available, either year-round or seasonal. d. Labor cost and condition of payment; and e. System of work practiced by the laborers. Construction materials should be canvassed to determine their availability in the locality. It is important for the fishpond operator to know the source of the construction materials before the programme and schedule of development is made. In the assessment of the construction materials, the points below should be considered: a. Quality and quantity of the materials; b. Unit cost and mode of payment; c. Sources of construction materials and the system of delivery; d. Availability of materials, whether seasonal or year-round; and e. Status of the dealer.

5.2.1 Program of work

For the purpose of giving example, a proposed program of work covering September to December 1979 of the BFAR-FAO/UNDP Brackishwater Aquaculture Demonstration and Training Center, Lala, Lanao del Norte is presented below. Proposed Program of Work For BFAR-FAO/UNDP Brackishwater Aquaculture Demonstration & Training Center Lala, Lanao del Norte (September to December 1979) ACTIVITIES 1. EARTHWORK a. Construction of dikes daily 120 100 1. Digging blade 2. Flash board SUPPORT NATURE OF DAILY LABOR DURATION FACILITIES WORK REQUIREMENT (days) AND EQUIPMENT

b. Construction of

canals Excavation & c. leveling of pond bottom (cut & fill) d. Removal of stumps

3. Flat boat

2. CONSTRUCTION OF GATES a. b. Construction of temporary dike Excavation of gate site

Piling of bamboo c. puno & boulders Construction and d. installation of wooden forms Preparation and installation of e. reinforcement bars f. Concreting g. h. Removal of forms & temp. dikes Construction of screens & slabs Cutting of vegetation

Labor contract

40

100

1. Mixing form 2. Shovel 3. Water drum 4. Boat 5. Bolo & hammer 6. Steel saw 7. Digging blade 8. Carpentry tools 9. Mason tools

3. RE-CLEARING a. 1. Bolo and Ax 2. Bamboo raft

Removal of debris b. and logs 4. FARMHOUSE CONSTRUCTION a. Excavation of footing

Daily

120

100

b. Piling of bamboo

Labor contract or by administration

20

100

1. Mixing form 2. Shovel

puno on footing & tie beam Construction and c. installation of wooden forms Preparation and installation of d. reinforcement bars e. Concreting Construction of the floor, walls, f. ceiling, roofing, etc. Construction of g. doors and windows 5. GROUND & PARKING SITE a. Filing & Compacting By administration 1. Digging 20 80 2. Flat boat 3. Digging blade 4. Steel saw 5. Water drum 6. Hammer 7. Carpentry tools 8. Mason tools 9. Plumbing tools

Piling of bamboo b. puno at the side 6. ROAD DIKE Completion of the dike by side and a. top filing and filing & shaping Surfacing with b. boulders, gravel & sand WATER TANK 7. AND PIPING SYSTEM Labor contract or by administration

1. Crane 2. Dump truck 3. Flat boat

10

50

5.2.2 Schedule of development

For the purpose of determining the target dates of the proposed fishpond project, a schedule of construction activities, based on the accomplished program of work, is prepared. Presented below is an example of a schedule of development for a 20-hectare fishpond project: Lincoln's Agri-Business Enterprises Schedule of Fishpond Development (March-February 1979) ACTIVITI MAR APR MAY JUNE JUL AUG SEPT OCT NOV DEC JAN FEB ES Preparation XXX 1. of feasibility X study Acquisition XXX XXX XXX 2. for bank X X X loan Pre-location 3. XX survey Canvassing 4. of materials XXXX & laborers Construction XXX 5. of temporary X shelter Clearing of XXX 6. XXX the area X Establishme 7. nt of XX markers Construction XXX XXX XXX XXX XXX 8. XX of main dike X X X X X Construction XXX 9. of main gate X Construction 10 XXX XXX XXX XXX XXX XXX of partition . X X X X X X dikes Construction 11 XXXXXX of secondary . XX gates Construction 12 XXX of tertiary . X gates Construction 13 XXXXXX of supply . XX canals

Pond 14 excavation . and leveling Construction of 15 caretaker's . hut and bodega 16 Others .

XXX XXX XXX XXX X X X

XXXXXX XX XXX X