Veteran civil engineer in PH construction industry debunks allegation of overpricing, corruption in controversial SEA Games ‘cauldron’

Amid the controversy surrounding the SEA Games ‘cauldron’ because of allegation of overpricing from Senator Drilon, a netizen named Allan Leyte, a civil engineer according to his FB profile, has stepped forward to lend his expertise and check if Drilon was correct or not.

The story goes like this. According to Engr. Leyte., someone asked him if the CAULDRON SEA Games was indeed overpriced. He answered, “Maybe.” Leyte reasoned that as taxpayer and a citizen, it is his right to criticize the government. While relaxing, he decided to check if indeed there was corruption.

Someone has ask me kung overprice ba ung CAULDRON sa SEA games..and I saidMaybe,? I have the right to criticize my government for that. Habang kuyakoy, I will see the proof if it is overpriced.

But before he continued, he said he is qualified to talk about the issue because of his experiences in government contract.

First, Am I have experiences in government contract? Yes I am..so lets see.. Cauldron cost 55 M..OVERPRICE nga ba?? Analyze natin.

To make it easier for ordinary netizens to follow, Leyte divided the topic of the CAULDRON into 4 major aspects namely: design and engineering, structural and foundation, fire mechanism, fuel and wing tip/wrist tag.

According to Leyte’s analysis, the P55-million construction cost of the SEA Games cauldron is very well within the budget if he was the one constructing it. By the way, this also includes the design fee for National Artist Manosa.

DESIGN & ENGINEERING 4.5 M..medyo overprice but since its done by National Artist Architect it is fine.and It is less than 10% of overall contract of 55 M..pasok

STRUCTURAL &FOUNDATION 13.5M Rule of thumb for steel 40-60. (40% 4,1M for foundation for steel including the gas tank foundation and 60%8,4M for Structural steel at 40meter high so it maybe 200k plus per meter height of steel…Roughly estimate…pasok din). Edit (Mali po ito. 40m ang una assumption ko based sa nabasa ko news feed..I have to make ratio and proportion just to verify the 40ft…so sa 200k per meter height aba panalo ka…say ang average mo per meter height ay 2 tons aba nsa presyo ka pa lang ng raw material steel. See the computation below for 40ft ).

FIRE MECHANISM plus fuel for 10 days fire is 32M.if youre in Oil and Gas project you understand that Construction of Gas and Safety is not cheap… di yan tubo ng tubig mag me tagas lagyan ng goma ok na..gas yan..how much is 50Million pag sumabog Cauldron mo? thats include Testing and Commissioning..O&G standard..it is pasok.

Updated Market price ng FIRE MECHANISM is
18M that roughly 360KUSDollar(say 330KUSD ung equipment+40KUSD commisioning service). Realistic price yan as compare mo pag O&G paggagamitan. Market value ng equipment and service dagdagan mo pa foreign and local taxes.

FUEL 5M(includes 380m pipes ,malamang rubberlined mga pipe nyan bolted, site install at bawal iwelding sabihin natin 4M yung piping 4M/380m equals 10.5k per meter of pipe include exavation at install (say 8k for rubberlined pipes at 2.k laborequipment ) pasok yan if your in MEP contracts ) Fuel say 1m for 12 day plus LPG vaporize rental sama mo tax pasok sa 6M fuelcost at pipes. 32M is fair enough.

WING TIP/WRIST TAG for 6M for stainless steel that can stand high temp of fuel.. that correct..

Me pahabol bakit daw 6M ung stainless mahal namn yan…sige punta muna tayo sa junkshop tanong tau kano kilo ng junkstainless di yan didikit sa magnet..120-150php/kilo. Mahal nga..so punta tau sa gumgawa ng Stainless handrail ng hagdan 500-1000php kilo..teka punta muna the sa ACE hardware tanong towel rack ay 2500 php isang kilo ata bigat nyan MOEN tatak..mahal nga stainless… balik tayo sa site ano kaya bigat stainless steel nyan..kung ako designer itapat ko sa 2tons yan Stainless Steel kase iyan ang pinakamadali weight na binubuhat ng crane…so 2000kgs yan….hehehe… eh ano price…eh di doblehin ko ung price ng gumagawa ng hagdan doble din ang kapal so 2000 Php/kilo yan…so 2k times 2k equal 4M yng material na steel.. dagdag ka 2M sa fabrication, welders at install crane overhead8% taxes12%..Viola 6M..kala nyo ha….tapos ang estimate…

So Therefore I conclude within my capacity and Knowledge, the CAULDRON is not OVERPRICED.

On questions why the need for the CAULDRON when a simple torch is fine?

Leyte said that for P15B budget, it’s a shame if we don’t have the CAULDRON as the highlight of the brand new New Clark City Coliseum (stadium). If we spent P10B for the APEC Summit where it was ll talk, why not the SEA Games when the cost of building the infra projects was only P5B? Leyte asked.

Leyte urged netizens to imagine that Laos and Myanmar have the lotus caudron for SEA Games while the Philippines does not? Leyte asked how far ahead the Philippines was when compared to Laos and Myanmar many years ago in terms of economy but lately, they have overtaken us? IMO, personal opinion, Leyte was wrong on this one. The PH, in terms of economy, is still ahead of these two countries.

Moving forward, Leyte argued that the SEA Games is meant to boost and boast economy. Hosting is a matter of national pride. Leyte compared this to a school intrams wherein the host school will have to defend and support the home turf. And when something goes wrong, you speak against your school. Leyte asked what kind of student are you if you do that?

Leyte remarked if you’re an engineer and criticized the cauldron without researching for proofs, you are a stupid engineer!

EXTRA Commentary: Personal Opinion ko lang.
Bat ba kailangan ng cauldron eh pede namn SULO lang..but for 15B budget tapos you have Brand New Clark City Collesium.. thats a shame if done without the cauldron..gumastos nga tau sa APEC ng 10B puro talkies lang why not SEA with INFRA eh 5B lang lamang??

Bakit nga ba me Cauldron?? Isipin nyo nalng Myanmar nga at Laos me Lotus Cauldron for SEA game tapos Pinas wala? Laos at Myanmar gaano ba tayo ka angat date sa kanila tapos nagun naungusan na tayo in terms in economy???

Games are meant to Boost and Boast Economy. Its a National pride parang yung host ka ng Intrams sa School nyo at me dadayo…then you have to Support and Depend your Turf..Home advantage ko to. Tapos kung me sablay organizer ng school mo siraan mo school mo?? Ano klase estudyante ka??

Tapos Engineer ka naturingan and criticize the cauldron without researching for proof ,???…eh di BOBO mong Engineer..

Anyway ala basagan ng trip…Me time na ulit sa FB..di na busy!!!!!

Me error daw 40ft daw ung height…Eh di recompute natin. So Structural and Foundation is 13,5 M…(40-60)4,1M sa Foundation at 8,4M ung Structural Steel on 12.192 meter high so 656K per meter .Try natin sa weight let say visually comparing to my previous steel project around 24 tonnes ung structure… current tonnage cost ngaun ay 350k/ton( cost of materials around 100k/ton(100Php per kilo ng steel 1ton is 1000kg), angle bars.etc kung bibili ka sa junkshop 20Php/kilo hehehe) and steel fabrication/installation around 250k labor at equipment, paints, tax, profit markup, anchotbolts, overhead cost na 8% etc include 12% VAT pa (sarap i DUPA-Detail Unit-Price Analysis….eh) ..dapat di me lalampas sa 500k per ton para maging competitive ung price ko so 350K x 24 tonnes=8.4M (60% of 13.5M)…pasok pa din.

so balik natin sa Calculation ng 656K per meter height average..say 2 tons ung first meter then less as goes upward…so 350K times 2 tons is equal to 700K ..then your average price per meter height is 600Kplus on 12,192 M ht ng structure 650K x12 approx =8,4M (Estimate by Strip means you take a small part para ma detail mo kahit ala plano para maicompare mo sa pinka malapit na parameter mo which is the 1st meter assuming that it weight 2 tons)–Estimate na walang plano lang by nearest assumption ginagamit ko..Shhhh strategy yan ng mga master Estimator sa steel by weight and by strip.

Updated actual price ng structure only is 7M so less sya sa 8.4M na estimate ko while foundation include landscaping na is 5M compare to 4M estimate for foundation so halos pareho lang.

PS.. seryosong katuwaan pag me spare time lang me ah..

You know what??? I actually crticizing our goverment but not in negative way but by positive way.

What is the real reason of this GOD Damn CAULDRON mess????

Leyte said it is the paranoia and the perception that every government project is OVERPRICED.

Why Projects are “mostly” OVERPRICED.?

Leyte, speaking from experience, blamed the practice of giving gifts to politicians (money) and the contractors has to recoup their loss, from you know where.

It is the CULTURE of “GIFT” by the POL%#*N$.t the Contractors has to recoup the loss by this system.

Of course, Leyte offered his suggestions how to deal with it and minimize the impact of corruption the quality of the project. He claimed it is hard but doable.

SOLUTION? It hard but effective.

1. Standard all Contractor %Profit.(say 1.35 or 1.5 uplift for all Government Project)
2. Standard all %Gift ( make Gift and Corruption Legal but Controlled). Say max 5% only of total cost.
3. Establish Commission on Contract…. Different from COA (COA is after the Project while Contract is working before the project). The Contracts has the responsibility to Answer to this GOD DAMN CAULDRON. Hindi si Go, Hindi si Angara, Hindi si Drillon mappaliwanag sa inyo…ano alam ng mga politico to na naghahawak sa kapiraso papel at paano nila mahimay at paipaliwanag ng tama???..nag engineer engineer kuno…hehehe.

Last CONCLUSION : CAULDRON is not OP because nobody ask a GIFT from it….BleeeeHh… Ss nasasabi BAIS ako??? Nagkataon lang na di siya talaga OP. Remember if you Criticize a Government provide a Solution wag ka Talkies lang at pa BOBO lang…

Oi off topic. Me ngtanong..gaano daw kabilis magestimate ang engineerr kahit ala pa plano???….hirap non ah….cge try natin…Sir, engr pagawa sana me bahay bungalow…. ah ganun ba gaano ba kalaki??? Mga 5meter by 5meter engr…Tingala muna ung engineer…tingin sa langit magbibilang ng bituin kunware…..ah 5×5 bungalow times ko 12k/sq.m…. sagot ni engr nsa 300k yan roughly..detail nalang natin pag me plano na at dagdag nalng nating finishes….kitams…ang bilis namn nun…. Ang Engineer po tingin palng alam na price…heheheheh

Note: Engr. Leyte’s words are written in bold while words in regular style are mine.

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Source: Allan Leyte

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