Public Works Secretary Vince Dizon said the Department of Public Works and Highways (DPWH) projected saving up to ₱60 billion in its proposed 2026 budget after cutting prices of key construction materials used in government projects.
Dizon said he signed an order last week reducing the price of materials such as asphalt, steel sheet piles, sand, gravel, cement, ready-mix concrete, and reinforced steel bars to match current market rates. A DPWH study showed these materials were previously overpriced by about 50 percent on average.
The move, following President Marcos’ directive to curb corruption, aims to align project costs with real market values. “This is probably the single biggest reform in the DPWH. It will go a long way in curbing corruption while maintaining quality,” Dizon said.
DPWH data showed the steepest overpricing in asphalt (50 percent variance), followed by sheet piles (36 percent), gravel and sand (32 percent), and reinforcing steel bars (30–32 percent). Smaller price gaps were seen in cement (10 percent) and ready-mix concrete (7 percent).
The price cuts will take effect immediately and apply to ongoing project procurements this year, not just those under the 2026 budget. Dizon said the savings could fund the construction of 1,600 kilometers of new concrete roads and 1,000 kilometers of asphalt overlay.
He clarified that the adjustment does not yet cover materials for critical infrastructure like schools and hospitals, but coordination with the DOTr and DA is underway to harmonize pricing across agencies.
Dizon also revealed that around 60 individuals, including contractors and officials linked to the DPWH flood control controversy, may face jail time before Christmas. The department is also preparing to file new cases before the Ombudsman and elevate others to the Philippine Competition Commission involving projects in La Union and Davao Occidental.
