Guidelines issued to prevent overpricing in infrastructure projects

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January 12, 2026 | 12:00am

MANILA, Philippines — To bust the alleged “built-in” overprice of infrastructure works and deter ghost and substandard projects, Public Works Secretary Vince Dizon has issued guidelines to ensure the recomputation of all infrastructure project costs and budget estimates based on lowered construction materials price data (CMPD).

In a Jan. 7 department order, Dizon laid down the guidelines for the updating and monitoring of programs of work (POW) and approved budgets for the contract of infrastructure projects in line with the lowered CMPD set by the Department of Public Works and Highways last October.

Dizon required all regional offices, district engineering offices and unified project management offices to conduct a validation of each project’s “location, station limits and/or coordinates, scope of work and physical targets” and then execute a “certificate of validation.”

“Such validation shall be undertaken to prevent project duplication or overlapping and to ensure the technical, operational and financial feasibility of project implementation in strict conformity with approved plans, applicable design standards, and existing Department policies, guidelines and issuances,” Dizon said.

The public works chief also ordered a recalculation of unit costs in the Detailed Unit Price Analysis (DUPA) of all affected pay items, especially those with material cost components.

The recalculation of the unit costs should cover the material component, the material price, labor and equipment component, labor and equipment unit cost, the application of indirect cost mark-up and the application of value added tax.

“Upon updating all unit costs in the DUPA using the latest CMPD and other prevailing cost references, the revised unit costs shall be duly consolidated in an updated POW,” Dizon ordered.

Dizon said that all bids and awards committees should require the submission of the certificate of validation and the certification on the utilization of the latest CMPD issued by the Planning and Design Division, Section Chief or Project Manager.

“Failure to comply with the above provisions shall be subject to legal and administrative sanctions in accordance with the existing laws, civil service rules, and other Department policies and issuances,” Dizon said.