5.

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 =A t
VT = V = V1 + V2 + V3 +
Where:
A =
V =
VT =

Area
Volume
Total volume

L =
W =
t
=

Length
Width
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

=
=
=

Length of lumber in inches

Width of lumber in inches
thickness of lumber in inches

b. 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
2. Re-location of boundaries

1,000.00
2,000.00

3. For the construction of temporary shelter for laborers (light materials)

4. For the construction of flatboats, 5 units at 500.00/unit

4,000.00
2,500.00

5. For the purchase of small banca, 1 unit at 600.00

6. For representation and transportation expenses

600.00
3,000.00

Sub-total

13,100.00

II. Development Proper

Clearing of the area at 600.00/ha. (cutting, chopping, burning &
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, 2.0 m
a.
crown and 2.25 m height or a total of 17,280 cum. at 6.00/cu.m
Main dike along upland, 840 linear meters, 5.5 m base, 2.0 m crown,
b.
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, and 1.8
c.
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 & 1.5
d.
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 crown
e.
and 1.4 m height, or a total of 1,540 cu.m at 5.50 per cu.m
Tertiary canal dike, 240 linear meters, 3.5 m base, 1.5 m crown and
f.
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 1.0 m
g.
height or a total of 1,400 cu.m at 5.00 per cu.m
Construction and installation of gates
1.

3.

a.

Main double opening concrete gate, 2 units at

labor cost

20,000/unit including

b.

Construction and installation of 10 units secondary wooden gates at

3,000.00 per unit

Construction and installation of 15 units tertiary wooden gates at

1,500/unit
Excavation and levelling of pond bottoms (cut-and-fill)
c.

30,000.00

103,680.00
37,800.00
33,957.00
52,387.50
8,470.00
3,600.00
7,000.00

40,000.00
30,000.00
22,500.00

a. Nursery Pond, 1.5 ha at 2,000/hectare

4. b. Transition Pond, 4.0 ha at 2,000/ha

3,000.00

c. Formation Pond, 8.0 ha at 2,000/ha

d. Rearing Pond, 32.0 ha at 2,000/ha

16,000.00

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)

8,000.00
64,000.00
30,000.00
12,000.00
5,000.00
3,000.00
3,000.00
1,000.00
2,000.00
52,350.05

Sub-total

562,750.55

T O TAL

575,850.55

ESTIMATED COST FOR ONE UNIT DOUBLE OPENING MAIN CONCRETE GATE
Cost of Materials
1.
2.
3.
4.

I.

II.

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

Unit Price
24.00/bag
60.00/cu.m
80.00/cu.m
50.00/cu.m

Amount
3,360.00
600.00
1,600.00
400.00

80 pcs
35 pcs

22.00/pc
12.00/pc

1,760.00
420.00

49 pcs

48.00/pc

2,352.00

30 pcs
16 pcs
10 pcs
6 pcs
10 kgs
20 kgs
400 pcs

3.00/bd.ft
3.00/bd.ft
3.00/bd.ft
3.00/bd.ft
7.50/kg
8.00/kg
4.00/pc

Labor (40% of material cost)

Contingencies (10% of material cost)

III.

360.00
288.00
60.00
216.00
75.00
160.00
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
1.

Ply Board

2.

Slabs

3.

Pillars and Braces

4.

Screen Frames

5.
6.
7.
8.
9.

Groove
Nylon Screen
Bamboo Screen
Nails
Coaltar

I.

Description
1"10"14'
1"10"8'
1"12"14'
2"3"10'
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

Labor (30% of material cost)

II.

Quantity
34 pcs.
3 pcs.
2 pcs.
4 pcs.
7 pcs.
2 pcs.
12 pcs.
2 pcs.
1 pc.
16 pcs.
8 sq.m.
6 pcs.
8 kg.
2 cans

Unit Price
Amount
3.00/bd.ft.
1,190.00
3.00/bd.ft.
60.00
3.00/bd.ft.
84.00
3.00/bd.ft.
60.00
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.

II.

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

Labor (30% of material cost)

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

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.

2.

NATURE OF DAILY LABOR DURATION

WORK
REQUIREMENT
(days)

SUPPORT
FACILITIES
AND EQUIPMENT

daily

120

100

1. Digging blade
2. Flash board
3. Flat boat

Labor
contract

40

100

EARTHWORK
a.

Construction of
dikes

b.

Construction of
canals

c.

Excavation &
leveling of pond
bottom (cut & fill)

d.

Removal of
stumps

CONSTRUCTION
OF GATES
a.

Construction of
temporary dike

b.

Excavation of
gate site

c.

Piling of bamboo
puno & boulders

d.

Construction and

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

installation of
wooden forms

3.

4.

5.

e.

Preparation and
installation of
reinforcement
bars

f.

Concreting

g.

Removal of
forms & temp.
dikes

h.

Construction of
screens & slabs

9. Mason tools

RE-CLEARING
a.

Cutting of
vegetation

b.

Removal of
debris and logs

1. Bolo and Ax
Daily

120

100
2. Bamboo raft

FARMHOUSE
CONSTRUCTION
a.

Excavation of
footing

b.

Piling of bamboo
puno on footing
& tie beam

c.

Construction and
installation of
wooden forms

d.

Preparation and
installation of
reinforcement
bars

e.

Concreting

f.

Construction of
the floor, walls,
ceiling, roofing,
etc.

g.

Construction of
doors and
windows

Labor
contract or by
administration

20

100

1. Mixing form
2. Shovel
3. Digging blade
4. Steel saw
5. Water drum
6. Hammer
7. Carpentry tools
8. Mason tools
9. Plumbing tools

20

80

1. Digging

GROUND &
PARKING SITE
a.

Filing &
Compacting

By
administration

b.
6.

7.

Piling of bamboo
puno at the side

2. Flat boat

ROAD DIKE

a.

Completion of
the dike by side
and top filing and
filing & shaping

b.

Surfacing with
boulders, gravel
& sand

WATER TANK AND

PIPING SYSTEM

1. Crane
2. Dump truck
3. Flat boat

Labor
contract or by
administration

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)
A C T I V I T I E S MAR APR MAY JUNE JUL AUG
Preparation of
XXX
1. feasibility
X
study
Acquisition for
XXX
2.
XXXX XXXX
bank loan
X
Pre-location
3.
XX
survey
Canvassing of
4. materials &
XX XX
laborers
Construction
5. of temporary
XXXX
shelter
Clearing of the
6.
XXXX XXX
area
Establishment
7.
XX
of markers
Construction
XXX
8.
XX
of main dike
X
Construction
9.
of main gate
Construction
10. of partition
dikes

SEPT OCT NOV DEC JAN FEB

XXXX

XXX
XXXX XXXX
X

XXXX
XXXX

XXX
XXX
XXXX XXXX
XXXX
X
X

Construction
11. of secondary
gates
Construction
12. of tertiary
gates
Construction
13. of supply
canals
Pond
14. excavation
and leveling
Construction
of caretaker's
15.
hut and
bodega
16. Others

XXXX

XXX
X

XXXX
XXX
XXXX
X
XXXX XXXX

XXX
XXX
X

XXX
XXXX
X
XXXX