Senator Francis Escudero yesterday said he has filed a measure seeking to establish a standardized pricing system for government infrastructure projects to curb overpricing and promote transparency.
The proposed legislation supports President Ferdinand Marcos Jr.’s call to slash construction costs and institutionalize reforms within the Department of Public Works and Highways.
“It’s not enough to simply estimate a project’s cost. There must be a clear basis, detailed computation, and accountability,” he said.
Escudero’s Senate Bill No. 1467 introduces a Detailed Unit Price Analysis system designed to ensure that project budgets accurately reflect prevailing market prices.
The system requires that all infrastructure appropriations be supported by technical documentation detailing the cost of labor, materials, and equipment.
Escudero said the proposal aims to make budgeting for public works more transparent and accountable by linking every peso spent to verifiable data.
He submitted a copy of the bill to Senator Sherwin Gatchalian, chair of the Senate Committee on Finance, requesting its inclusion in budget deliberations for 2026.
“When the price of every nail, cement, and service is clearly defined, government spending becomes more transparent. The public can better see where every peso goes,” he said.
Escudero said the reform is urgent given that the 2026 infrastructure budget is projected to reach P1.56 trillion, or about 23 percent of total government spending.
He cited recent Department of Public Works and Highways findings showing overpricing of construction materials such as asphalt, steel, and cement by as much as 50 percent.
He warned that inflated pricing practices have allowed certain contractors to benefit from irregular project allocations.
The bill requires the creation of a national reference manual on cost estimation, to be updated every three years to reflect market trends and standards.
It also mandates training programs for engineers, auditors, and budget officers to strengthen institutional capacity and reduce inefficiencies.
“Ultimately, this intervention will serve as a vital mechanism in strengthening public trust in the processes and institutions of government, grounded on the principle that every peso spent by the people should be translated into tangible outcomes for the benefit of the public,” he concluded.
