Much has been made by Department of Public Works and Highways Secretary Vince Dizon of his order lowering the prices of construction materials used in infrastructure projects of the scandal-plagued agency.
In a press briefing, Dizon said the Oct. 30 2025 department order will result in estimated savings of about P60 billion in the DPWH budget for 2026.
According to reports (the order had yet to be published in the DPWH website as of Monday), the secretary has directed the “immediate use” of the lowered prices of construction materials in the preparation and review of cost estimates of all DPWH infrastructure projects.
The revised construction materials price data (CMPD) schedule will apply to the preparation and review of projects for procurement from those funded by the DPWH 2026 budget, and even those still for procurement or bidding from its 2025 budget, Dizon stated.
But there is one big problem with the reform measure, issued in response to the public outrage over ghost and overpriced flood control projects.
The new prices are not realistic, from the viewpoint of ordinary citizens and local contractors in this corner of the archipelago.
For example, the new CMPD sets the base price of sand and gravel at P649.93 per cubic meter and P690.12 per cubic meter, respectively.
But a canvass of prices at a local hardware store shows that a truckload of sand and gravel already costs P3,000 each, or a unit cost of P750 per cubic meter.
This is about eight to 15 percent above the DPWH base price in the new CMPD.
If the delivery truck that arrives only holds 3.5 cubic meters, then the cost rises to P857 per cubic meter, and the aggregate is not even washed or cleaned of mud and debris.
On the other hand, the DPWH has fixed the price of reinforcing steel bars at P36.06 per kilogram but steel bars sold at the local hardware stores is about P42 per kilogram or about 17 percent higher.
Sec. Dizon also lowered the price of cement to P213.05 per 40-kg. bag, which is not available anywhere on the island.
As those in the midst of constructing their own homes know, cement costs about P240 to P255 per bag or 12 to 20 percent higher than Dizon’s unit cost.
If DPWH does not revise the unit prices of the construction materials, it should not expect contractors, even the favorites of congress members, to participate in competitive public biddings of its infrastructure projects.
Winners of such projects should not expect a profit and, instead, sustain heavy losses especially if their political patrons insist on their 15 to 25 percent commission for each project.
As astute business owners advise, “ngata ta manegosyo ka pa kung mapalugi ka man sana?”
The DPWH central office’s failure to consider the varying prices of construction materials across the archipelago is inexcusable, since past administrations in Intramuros have accepted the reality that in cases of imported materials like steel and cement, the cost per unit rises as one goes farther from Metro Manila.
If Sec. Dizon and President Bongbong Marcos still believe that the quality of DPWH infrastructure projects will not be sacrificed by the new prices of construction materials, they are sadly mistaken.
The better alternative is to set a maximum mark-up of 10 to 15 percent on the base prices of construction materials or even basic office supplies to be set by the national government per province, to allow for sudden price increases.
This would also leave the contractor or supplier with some profit and extra cash for the usual commissions demanded by the House member or local chief executive.
The DPWH or Malacanang should not expect Filipinos to believe that the probe of the flood control projects and Dizon’s latest reform measure would temper the greed of national and local politicians.