In a chance interview with Senate reporters yesterday, Escudero revealed that he was surprised to learn about the P23-billion allocation for the construction of the Senate’s new building, which he noted was only bid out for P8.9 billion.
The Senate president was quick to clarify that the suspension order was not due to questionable matters, but he just viewed the cost as excessive.
“It is shocking and in bad taste that the Senate would spend this much for our new home and office,” he said. “With the many bills that I am asked to sign, I want to look at it first and check it carefully if it is really appropriate.”
Escudero said they would also look at how the cost can be reduced.
Initially budgeted at P8.9 billion, he revealed that the cost of the project has ballooned to P13 billion, with an additional P10 billion required for completion, bringing the total to P23 billion.
“For me, it’s a bit hard to swallow and it’s really surprising,” he said.
Escudero announced his decision to suspend the construction of the new Senate building during his first flag-raising ceremony as Senate chief, informing officials and employees that the planned transfer to the new building would be delayed.
“It is not true that we will be able to move to the new building and land this September. It is also not true that we will be able to move before the end of the year. Even until 2025, I don’t think it will be because there are still many things that need to be prepared and there are also many things that we have seen and experienced that still need to be analyzed and studied,” he said.
Escudero noted that the unexpectedly high amount of expenses is particularly hard to accept given the economic crisis faced by most Filipinos.
He added that he had already given specific instructions to Sen. Alan Peter Cayetano, the new chairman of the Senate committee on accounts, who is responsible for ensuring the smooth transfer of the Senate to the new building and overseeing the project’s quality and timeliness.
“I have instructed Sen. Cayetano, based on his recommendation and letter, to postpone any bill or work until we can analyze and study,” Escudero said.
He said he made the decision after receiving a detailed report and recommendations last Friday from Cayetano concerning the escalating costs, quality issues and management inefficiencies surrounding the new Senate building project.
After he assumed the Senate presidency last May 22, Escudero told reporters the new Senate building would not be ready in 2024, 2025 or even 2026.
Cayetano’s report highlighted several critical issues, including a dramatic increase in the project’s budget from an initial P8.9 billion to a projected P23.3 billion.
The preliminary review conducted by the committee revealed numerous variations, deviations and modifications to the project that have not been properly validated. These changes have resulted in additional expenses amounting to P833 million, which is nearly 10 percent of the original contract price.
Inspections by the Senate coordination team also raised questions about the quality of workmanship and adherence to the original terms of reference.
The report also pointed out procurement delays and missteps by the project manager, the Department of Public Works and Highways (DPWH), which have contributed to project slowdowns and cost overruns.
In his report, Cayetano explained that the DPWH’s actions would be decisive in determining whether the agency and the contractor, HillMarc’s Construction Corp., would implement the remaining portion of the project, which has an approved budget of P10.33 billion, but has yet to be awarded.
Cayetano suggested compelling the DPWH to create a high-level liaison team for this project, composed of the DPWH’s Unified Project Management Office as project manager and the Bureau of Design for proper coordination.
He also advised engaging a thirdparty construction management team to help clarify and validate the project to date, both technically and financially.
“This will aid in a value engineering exercise intended to reduce the cost of the building, considering the high projected cost, subsequent delays and the desire to turn over a building that conforms to the original design intent,” he said.
Meanwhile, former senator Panfilo Lacson, who supervised the construction of the new Senate building in 2018 as chairman of the accounts committee, sought clarification on issues surrounding the project.
“While I agree with SP Chiz’s decision to review the new P23.3-billion cost of the Senate building from the original P8.9-billion estimate when we started the construction, I would like to clarify some issues based on my recent inquiry with my former staff and team of consultants who were absorbed by Sen. Nancy Binay when she succeeded me,” Lacson said in a Viber message to The STAR.
He noted that the DPWH is the implementing agency so it submits cost estimates and variation orders (VOs), but at the end of the day, it is the Senate that will acc...
The Senate president was quick to clarify that the suspension order was not due to questionable matters, but he just viewed the cost as excessive.
“It is shocking and in bad taste that the Senate would spend this much for our new home and office,” he said. “With the many bills that I am asked to sign, I want to look at it first and check it carefully if it is really appropriate.”
Escudero said they would also look at how the cost can be reduced.
Initially budgeted at P8.9 billion, he revealed that the cost of the project has ballooned to P13 billion, with an additional P10 billion required for completion, bringing the total to P23 billion.
“For me, it’s a bit hard to swallow and it’s really surprising,” he said.
Escudero announced his decision to suspend the construction of the new Senate building during his first flag-raising ceremony as Senate chief, informing officials and employees that the planned transfer to the new building would be delayed.
“It is not true that we will be able to move to the new building and land this September. It is also not true that we will be able to move before the end of the year. Even until 2025, I don’t think it will be because there are still many things that need to be prepared and there are also many things that we have seen and experienced that still need to be analyzed and studied,” he said.
Escudero noted that the unexpectedly high amount of expenses is particularly hard to accept given the economic crisis faced by most Filipinos.
He added that he had already given specific instructions to Sen. Alan Peter Cayetano, the new chairman of the Senate committee on accounts, who is responsible for ensuring the smooth transfer of the Senate to the new building and overseeing the project’s quality and timeliness.
“I have instructed Sen. Cayetano, based on his recommendation and letter, to postpone any bill or work until we can analyze and study,” Escudero said.
He said he made the decision after receiving a detailed report and recommendations last Friday from Cayetano concerning the escalating costs, quality issues and management inefficiencies surrounding the new Senate building project.
After he assumed the Senate presidency last May 22, Escudero told reporters the new Senate building would not be ready in 2024, 2025 or even 2026.
Cayetano’s report highlighted several critical issues, including a dramatic increase in the project’s budget from an initial P8.9 billion to a projected P23.3 billion.
The preliminary review conducted by the committee revealed numerous variations, deviations and modifications to the project that have not been properly validated. These changes have resulted in additional expenses amounting to P833 million, which is nearly 10 percent of the original contract price.
Inspections by the Senate coordination team also raised questions about the quality of workmanship and adherence to the original terms of reference.
The report also pointed out procurement delays and missteps by the project manager, the Department of Public Works and Highways (DPWH), which have contributed to project slowdowns and cost overruns.
In his report, Cayetano explained that the DPWH’s actions would be decisive in determining whether the agency and the contractor, HillMarc’s Construction Corp., would implement the remaining portion of the project, which has an approved budget of P10.33 billion, but has yet to be awarded.
Cayetano suggested compelling the DPWH to create a high-level liaison team for this project, composed of the DPWH’s Unified Project Management Office as project manager and the Bureau of Design for proper coordination.
He also advised engaging a thirdparty construction management team to help clarify and validate the project to date, both technically and financially.
“This will aid in a value engineering exercise intended to reduce the cost of the building, considering the high projected cost, subsequent delays and the desire to turn over a building that conforms to the original design intent,” he said.
Meanwhile, former senator Panfilo Lacson, who supervised the construction of the new Senate building in 2018 as chairman of the accounts committee, sought clarification on issues surrounding the project.
“While I agree with SP Chiz’s decision to review the new P23.3-billion cost of the Senate building from the original P8.9-billion estimate when we started the construction, I would like to clarify some issues based on my recent inquiry with my former staff and team of consultants who were absorbed by Sen. Nancy Binay when she succeeded me,” Lacson said in a Viber message to The STAR.
He noted that the DPWH is the implementing agency so it submits cost estimates and variation orders (VOs), but at the end of the day, it is the Senate that will acc...
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The Philippine Star (Digital) - 1 Issue, June 11, 2024