Construction projects require careful cost management to stay within budget and maintain profitability. A major expense is the delivery of construction materials. Transporting heavy equipment, bulky supplies, navigating traffic, and ensuring on-time arrivals – the construction delivery service can rapidly increase costs. This is why partnering with the right construction delivery services provider is so important for reducing expenses and managing the project efficiently.
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In this blog, we’ll explore how choosing the right delivery partner can help you optimize your construction material delivery budget.
How is the Philippine Construction Equipment Market Today?
The construction equipment market in the Philippines is experiencing significant growth driven by several key factors, according to a market research report by SPER. The report, titled ‘Philippines Construction Equipment Market Size – By Type, By Application – Regional Outlook, Competitive Strategies and Segment Forecast to 2033’, projects that this market will reach USD XX billion by 2033, growing at a compound annual rate of 7.2% during the forecast period.
Several key factors are driving significant growth in the construction equipment market in the Philippines. In recent years, there has been an increase in new construction projects and ventures entering the Philippine market. The government has launched various infrastructure projects aimed at boosting economic growth and creating jobs.
Challenges in the Construction Materials and Its Delivery
Focusing more on logistics costs for construction materials delivery service, a study about ”An Assessment of Logistics Performance of Manufacturing Firms in the Philippines” conducted by the Department of Trade and Industry (DTI) and the World Bank found that the Philippines is now facing higher logistics costs at 27.16% compared to neighboring countries like Indonesia, Vietnam, and Thailand at 21.4%, 16.3%, and 11.11%, respectively where 12% of construction materials companies participated in this study.
It further emphasizes that logistics companies often struggle to deliver goods completely and on schedule, especially when it comes to construction materials, chemical products, food items, and electronics. The geographic nature of the Philippines as an archipelago also challenges logistics performance depending on the island group where Visayas will take a month while in Mindanao for 2 weeks only when it comes to the cash conversion cycle, making it financially challenging to construction firms.
Factors Affecting Construction Costs in the Philippines
There are several key factors that can affect the constructions costs in the Philippines:
Location and Accessibility
- Land prices are higher in urban areas like Metro Manila compared to rural provinces.
- How accessible the construction site is impacts transportation costs for materials, equipment, and labor.
- Regional differences in labor and material costs also play a role.
Building Size and Design Complexity
- Larger buildings require more materials and labor, increasing costs.
- Complex designs with intricate details or non-standard elements require more time, skill and resources to build.
Choice of Building Materials and Finishes
- Higher-quality materials tend to be more expensive.
- Luxury finishes like high-end appliances or imported tiles significantly increase project expenses.
- Using local, eco-friendly or cost-effective materials can help reduce costs.
Labor Costs and Availability
- Labor costs range from PHP 500-800 per day based on skill level.
- Costs are often higher in urban areas due to demand and higher cost of living.
- Limited availability of skilled labor can lead to project delays and increased costs.
Permits, Licenses and Taxes
- Building permits, occupancy permits and other licenses add costs ranging from PHP 10,000 to over PHP 50,000.
- Taxes like VAT and property taxes must be factored into the budget.
Inflation and Currency Fluctuations
- Average 3.96% annual inflation from 2018-2022 impacted material and labor prices, according to World Bank.
- Exchange rate changes affect the costs of imported construction trucks materials and equipment.
- Future economic conditions can also influence overall construction costs.
Construction projects, large or small, rely heavily on the timely and efficient delivery of materials. Services like Transportify, specializing in the delivery of construction materials and even the construction debris hauling services, have evolved to meet this critical need, offering tailored solutions that span from standard materials to specialized items. By leveraging their expertise, construction firms can significantly reduce the logistical headaches and costs reduction associated with material transportation.
Why Choose Transportify as Your Construction Delivery Service Partner
Selecting Transportify as your construction material delivery service partner for construction projects provides numerous advantages to help logistics with cost reduction while increasing efficiency. Transportify has established itself as a top cargo delivery app in the Philippines, particularly favored within the construction industry for its comprehensive approach to logistics solutions.
Diverse Fleet Available
Transportify offers a diverse fleet of vehicle options, ranging from small pickup trucks to large wing vans capable of transporting different sizes of loads. This flexibility allows you to choose the most cost-effective vehicle option that fits your specific needs, without having to pay extra for unnecessary hauling capacity.
| Vehicle Type | Dimensions/ Weight Limits | Base Price (Metro Manila) | Base Price (Outside Metro Manila) | Base Price (Visayas/Mindanao) |
|---|---|---|---|---|
 Wing Van | 32 to 40 x 7.8 x 7.8 ft 12000kg to 28000kg | 7000 PHP | 6500 PHP | 6500 PHP |
 6w Fwd Truck | 18 x 6 x 7 ft 7000kg | 4850 PHP | 4850 PHP | 4850 PHP |
 Closed Van | 10 to 14 x 6 x 6 ft 2000kg to 4000kg | 1600 PHP | 1450 PHP | 1450 PHP |
 Open Truck | 10 to 21 x 6 ft x open 2000kg and 7000kg | 2300 PHP | 1950 PHP | 1950 PHP |
 L300/Van | 8 x 4.5 x 4.5 ft 1000kg | 415 PHP | 374 PHP | 335 PHP |
 Small Pickup | 5 x 5 ft x open 1000kg | 418 PHP | 338 PHP | 325 PHP |
 Light Van | 5.5 x 3.8 x 3.8 ft 600kg | 375 PHP | 292 PHP | 275 PHP |
 MPV/SUV | 5 x 3.2 x 2.8 ft 200kg | 240 PHP | 210 PHP | 160 PHP |
 Sedan | 3.5 x 2 x 2.5 ft 200kg | 220 PHP | 190 PHP | 140 PHP |
Technological Advancements
Embracing technological advancements, Transportify employs a construction material delivery app that integrates features such as API integration services, GPS-based route optimization, and all-in-app delivery service features. These advancements streamline the delivery process, cost reduction of fuel, and ensure faster delivery times, contributing to an overall cost reduction in logistics.
On-Demand Delivery and JIT Services
Transportify supports the just-in-time (JIT) delivery approach for construction projects. With JIT, materials are delivered precisely when they are needed on site through quick and scheduled bookings, avoiding the costs and risks of storing excess supplies.
Transportify’s on demand construction material delivery app, combined with their extensive network of driver partners, 24/7 live chat support, and real-time tracking, makes construction materials delivery service efficient and reliable. This allows for timely arrivals of construction materials right when you need them.
Flexible, Affordable Rates
Transportify rates are based on the distance to be traveled and the type of vehicle required. This pricing model gives clients the flexibility to choose the most cost-effective transportation option that fits their specific logistics needs and budget. This also allows businesses with changing and different logistics needs, especially those that rely heavily on logistics, like construction companies, to achieve significant cost reduction on their delivery expenses. Their flexible and affordable pricing structure makes it easy to find an economical solution without compromising service quality.
Business Program Benefits
For businesses, enrolling in Transportify’s Business Program provides additional advantages such as live support, prepay and postpay options, insurance, and more. These features are designed to cater to the specific logistics needs of various industries, including construction, providing a tailored and efficient logistics solution.
Some of the benefits include:
- Free enrollment
- 24/7 customer service support
- Flexible payment options
- POD and COD services
- Up to PHP 3 million warranty for damaged, lost or stolen goods during deliveries
- Dedicated team to document and handle loading/unloading of materials
- Assigned account manager to assist with bookings and business growth
To learn more about enrolling in Transportify’s business program, please visit our website at www.transportify.com.ph or email business@transportify.com.ph.
Download Transportify app by scanning the QR code or clicking the button below.
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