‘OVERPRICED’: Molo waiting shed cost slashed to PHP 586K; contractor still unpaid

By Rjay Zuriaga Castor

The cost of the controversial waiting shed in Barangay Katilingban, Molo, has been revised and reduced from its original contract amount of PHP 798,525.47 to PHP 586,653.37 after evaluation, or approximately 26.5% less than the original cost.

City Engineering Office (CEO) acting head Engr. Dianaline Señoron explained that their reevaluation of the project resulted in a cost variation of PHP 211,872.10.

The reduction stemmed from the reassessment of several major components, particularly the roofing, paver blocks, temporary facilities, and project layout works, which were deemed inflated in the original computation.

Though the cost has been revised, Señoron clarified that the scope of work or plan is still the same.

The bulk of the cost decrease came from roofing, temporary facilities, and paver works, which alone account for over 80% of the cost variation. Only the foundation and concrete works were increased.

Señoron noted that a variation order reflecting the revised cost has already been submitted to the Commission on Audit (COA) for evaluation, but the agency has yet to respond.

A variation order for a project is a formal document used to authorize changes to the original scope of work in a construction contract. These changes can include additions, deletions, or substitutions to the project scope, materials, costs, or timeline.

COA then reviews variation orders to ensure that the changes are justified, properly documented, and authorized according to procurement laws and local government policies.

Señoron said the contractor, Abelarde Builders and Supply, has not requested a final inspection, and her office is unaware of whether the project has been completed. The latest development was the installation of three solar lamps earlier this October.

The project has yet to be turned over to the city government, and payment remains pending.

“That is the cost based on our evaluation. That is what we are going to pay. If the contractor does not agree with that, we will not pay,” she said.

COST DETERMINATION, BIDDING

The CEO prepares the project cost estimate based on detailed engineering design and reflects prevailing market prices for materials, labor, equipment, and other costs.

The waiting shed project began under former acting city engineer Salvador Mariano Pedregosa, with Engr. Jonberlie Ladua serving as the project-in-charge. Señoron only assumed office on July 1, a day after Iloilo City Mayor Raisa Treñas-Chu officially took over.

The cost estimate, along with technical specifications, plans, and other requirements, is then compiled into the bidding documents. These documents form the basis for the public bidding and are prepared to comply with procurement laws and regulations.

The Bids and Awards Committee (BAC) is responsible for conducting the bidding process according to the procurement law and relevant guidelines. The BAC then issues the Invitation to Bid to the public.

The contractor submits a bid during the bidding process, which may be lower or higher than the estimated cost. However, the contractor’s bid is only considered against the pre-determined cost estimate prepared by the CEO.

The government’s cost estimate guides the evaluation and approval of bids to ensure fairness, prevent excessive pricing, and protect public funds. Only bids that are responsive and responsible — those that meet the qualifications and requirements — are considered.

In most cases, the contract is awarded to the lowest calculated responsive bid — the eligible bidder with the lowest bid amount that meets all conditions.

After a post-qualification confirms the bidder’s capability, the BAC will recommend the award to the local chief executive for approval.

A notice to proceed is issued to start the project, and the contractor will deliver the project according to the contract terms. The process is then followed by the local government conducting an inspection and acceptance upon completion.

Señoron explained that the original project cost was likely based on the fabrication price, which is a lump sum or a quotation amount. This original cost likely reflected a generally agreed-upon price but was less detailed or itemized, which resulted in a cost of nearly PHP 800,000.

In contrast, the recent evaluation of the project cost was done using a more detailed, specified estimated cost approach. This approach breaks down the project cost into individual items or components, each with its own estimated price based on current market rates, quantities, and specifications.

Despite the big difference from the original cost, Señoron believes that, based on her evaluation, the project is not overpriced.

“In my evaluation, we cannot say that this is overpriced. In my evaluation, we cannot say,” she said.

Meanwhile, she noted that while residents of the barangay had requested a drainage project, a waiting shed was instead constructed. Señoron explained that the proposed site for the drainage project was located on a private lot.

“No matter how many times you request, there needs to be a deed of donation for us to proceed,” she said.

Amid criticisms that the waiting shed is not necessary, Señoron emphasized that the project was intended to benefit residents, particularly during the rainy season and extreme heat.

“This is for the residents of the areas, especially during the rainy seasons and summer. Rest assured that we are for transparency and good governance in all of the projects we implement,” she said.

She assured that the ongoing evaluations would ensure taxpayers’ money is properly spent, adding that only the approved and verified project cost will be released by the city government.

REQUESTED BY GANZON

Señoron confirmed that the project was requested by former Vice Mayor Jeffrey Ganzon.

The waiting shed is funded by a PHP 2 million allocation for citywide waiting sheds under Supplemental Budget No. 3, approved during Ganzon’s term in August 2022.

She added that no other waiting sheds were constructed under the same allocation, as most proposed sites were deemed unviable — either located on private property or along national roads.

The contract with Abelarde started on Nov. 20, 2024, and was originally set for completion within 25 calendar days.

However, on Nov. 27, 2024, civil works were suspended after a request that the site is still being used as a parking area for the Molo District Health Center.

Construction only resumed on Aug. 14, 2025. With only 18 days remaining within the allowable period, the project was expected to be completed by around Sept. 1.

Señoron said City Administrator Melchor Tan personally ordered a reevaluation of the project’s cost in August this year after discovering that several items were priced higher than expected.

The project was then reviewed by another engineer from the CEO, who was not directly involved in the implementation.