DPWH Cuts Down the Costs of Construction Materials, Eyes P60-B Savings in 2026

MANILA, Philippines — The Department of Public Works and Highways (DPWH) has ordered a significant reduction in the standard prices of key construction materials used in government projects, a move expected to generate up to ₱60 billion in savings for the 2026 national budget.

Public Works Secretary Vince Dizon announced the reform on Monday, November 3, describing it as one of the department’s biggest anti-corruption measures. The new Construction Materials Price Data (CMPD), approved on October 30, will serve as the updated reference for estimating material costs in public works and will apply to projects that have not yet been bid out.

Findings from the DPWH Review

According to the DPWH review, several materials were previously overpriced by up to 75 percent compared to market prices. For instance, asphalt was priced at an average of ₱13,863 per metric ton in government projects but only ₱6,961 in the market. 

In some regions, the gap was even wider, such as in Mimaropa, where DPWH projects listed asphalt at ₱23,650 per metric ton, while the market price was below ₱6,000.

Other construction items showed similar disparities. Steel sheet piles cost ₱62 per kilo versus the market’s ₱40; gravel averaged ₱1,015 per cubic meter compared to ₱690; and sand was priced at ₱952 per cubic meter while market rates averaged ₱650.

Transparency and Accountability in DPWH

Dizon said the price adjustment aligns government costs with real market values and will help ensure transparency in infrastructure spending. 

“These are the components of flood control [projects], together with gravel, cement, sand, all of it,” Dizon said. “These are included in what the President called as opportunities for corruption. That’s what we are trying to reduce here.”

He added that President Ferdinand Marcos Jr. directed the review to eliminate inflated costs and redirect potential savings to priority programs in health, education, and food security.

The updated CMPD has been submitted to the Senate Committee on Finance and will also cover 2025 projects that remain under procurement.

References

Cruz, J. P. (n.d.). DPWH cuts cost of construction materials. Rappler. https://www.rappler.com/philippines/dpwh-cuts-construction-materials-cost/

Villanueva, G. (n.d.). Gov’t infra cost down; DPWH eyes P60-B savings. Inquirer. https://newsinfo.inquirer.net/2133646/govt-infra-cost-down-dpwh-eyes-p60-b-savings