Chiz pushes price analysis system for government projects

Senator Francis “Chiz” Escudero has filed a bill seeking to institutionalize a Detailed Unit Price Analysis (DUPA) system for government infrastructure projects to prevent overpricing and ensure transparency in public spending.

Escudero said Senate Bill (SB) 1467 directly responds to President Ferdinand R. Marcos Jr.’s call to cut construction costs and make permanent the reform efforts led by Department of Public Works and Highways (DPWH) Secretary Vince Dizon, particularly in reducing material prices by up to 50 percent.

The bill aims to standardize the budgeting process for infrastructure projects, ensuring that appropriations reflect actual market costs and are supported by clear technical documentation.

“Hindi puwedeng tantiyahan lang ang halaga ng proyekto. Dapat may batayan, may detalye, at may pananagutan,” Escudero said.
("It’s not acceptable to just make rough estimates for a project’s cost. There must be a basis, details, and accountability.")

“Kapag malinaw ang presyo ng bawat pako, semento, at serbisyo, mas nagiging tapat ang paggastos ng gobyerno. Mas nakikita ng taumbayan kung saan napupunta ang bawat piso,” he added.
("When the price of every nail, bag of cement, and service is clear, government spending becomes more honest. People can better see where every peso goes.")

In a letter to Senate Finance Committee chairperson Sherwin Gatchalian, Escudero urged the inclusion of the proposal in discussions for the 2026 national budget, noting that infrastructure spending is projected to reach P1.56 trillion, nearly 23 percent of the total expenditure for the year.

Escudero lamented that despite the fiscal weight of these projects, current appropriation practices remain “arbitrary, inconsistent, and susceptible to distortion and misrepresentation.”

The proposed DUPA system will serve as a safeguard against overpricing schemes recently uncovered by the DPWH, which revealed inflated prices for materials such as asphalt, steel bars, and cement by as much as 50 percent in some cases.

Under the bill, all infrastructure projects must have a DUPA detailing costs for labor, equipment, materials, and other expenses before they can be included in the National Expenditure Program, the General Appropriations Act, or before any procurement or fund release.

The measure also mandates the creation of a national reference manual to be updated every three years, along with a capacity-building program for engineers, budget officers, and auditors to promote consistency and technical competence in cost estimation.

Public officials who falsify or omit DUPA data will face perpetual disqualification from public office, in addition to existing civil, criminal, or administrative penalties.

Escudero said the reform will initially cover infrastructure projects under major departments, including the Departments of Agriculture, Education, Health, and Public Works, starting in Fiscal Year 2026.

“By establishing this uniform and transparent method of estimating appropriations, this measure can deter unscrupulous budget practices, promote fiscal discipline, create fiscal space for other priority programs and projects, and provide technical and financial safeguards against corruption and inefficiencies in public spending,” he said.

He added, “This intervention will serve as a vital mechanism in strengthening public trust in the processes and institutions of government, grounded on the principle that every peso spent by the people should be translated into tangible outcomes for the benefit of the public.”