The Department of Public Works and Highways (DPWH) expects to save up to P60 billion in its proposed 2026 budget after signing an order to lower the prices of various construction materials used in government projects, Secretary Vince Dizon said Monday.
The move, which acts on a directive from President Ferdinand Marcos Jr. intended to curb corruption, involves slashing the prices of several materials to align with current market values. The agency’s study found that the prices of these construction materials were overpriced by an average of 50 percent compared to the market.
Dizon, who signed the order on Thursday, moved to cut construction material prices by 50 percent. He said the measure would apply immediately to projects currently being procured this year, not just those slated for the 2026 budget.
“To me, the President’s directive is probably the single biggest reform the DPWH ever. This will do a lot to curb corruption but still maintaining the quality,” Dizon said in a press briefing.
The DPWH head estimated the total monetary savings would reach P60 billion.
The cost reduction is expected to free up funds to build 1,600 kilometers of new concrete road and pave 1,000 kilometers of asphalt overlay.
DPWH data presented by Dizon showed significant overpricing, notably for asphalt, which showed an average negative 50 percent variance in price per metric ton nationwide. Other materials registering significant negative variances included sheet piles, which had a negative 36 percent variance. Gravel grade one and sand, both showing negative 32 percent variances.
Reinforcing Steel Bars (Grade 60 and Grade 40), registered negative variances of 32 percent and 30 percent, respectively.
Smaller variances were noted for cement (negative 10 percent) and ready-mix concrete (negative seven percent).
Dizon said the initial price adjustment did not cover materials for crucial projects like schools, hospitals and other public infrastructure.
He said the DPWH plans to coordinate with the Department of Transportation and the Department of Agriculture to ensure consistent material pricing across all related government projects.
Separately, Dizon expressed strong confidence that around 60 individuals—including several contractors and public officials implicated in a flood control controversy—will be jailed before Christmas. The DPWH is also set to file one to two new cases before the Ombudsman this week and elevate two other cases to the Philippine Competition Commission, including those connected to projects in La Union and Davao Occidental.
By Darwin G. Amojelar
The Department of Public Works and Highways (DPWH) expects to save up to P60 billion in its proposed 2026 budget after signing an order to lower the prices of various construction materials used in government projects, Secretary Vince Dizon said Monday.
The move, which acts on a directive from President Ferdinand Marcos Jr. intended to curb corruption, involves slashing the prices of several materials to align with current market values. The agency’s study found that the prices of these construction materials were overpriced by an average of 50 percent compared to the market.
Dizon, who signed the order on Thursday, moved to cut construction material prices by 50 percent. He said the measure would apply immediately to projects currently being procured this year, not just those slated for the 2026 budget.
“To me, the President’s directive is probably the single biggest reform the DPWH ever. This will do a lot to curb corruption but still maintaining the quality,” Dizon said in a press briefing.
The DPWH head estimated the total monetary savings would reach P60 billion.
The cost reduction is expected to free up funds to build 1,600 kilometers of new concrete road and pave 1,000 kilometers of asphalt overlay.
DPWH data presented by Dizon showed significant overpricing, notably for asphalt, which showed an average negative 50 percent variance in price per metric ton nationwide. Other materials registering significant negative variances included sheet piles, which had a negative 36 percent variance. Gravel grade one and sand, both showing negative 32 percent variances.
Reinforcing Steel Bars (Grade 60 and Grade 40), registered negative variances of 32 percent and 30 percent, respectively.
Smaller variances were noted for cement (negative 10 percent) and ready-mix concrete (negative seven percent).
Dizon said the initial price adjustment did not cover materials for crucial projects like schools, hospitals and other public infrastructure.
He said the DPWH plans to coordinate with the Department of Transportation and the Department of Agriculture to ensure consistent material pricing across all related government projects.
Separately, Dizon expressed strong confidence that around 60 individuals—including several contractors and public officials implicated in a flood control controversy—will be jailed before Christmas. The DPWH is also set to file one to two new cases before the Ombudsman this week and elevate two other cases to the Philippine Competition Commission, including those connected to projects in La Union and Davao Occidental.
