Dizon: Construction material costs to drop to market levels

Department of Public Works and Highways (DPWH) Secretary Vince Dizon confirmed that the cost of construction materials used for government projects will be significantly reduced to match prevailing market prices.

Dizon said the move follows a directive from President Ferdinand Marcos Jr., who earlier emphasized the need to reform procurement practices within the DPWH to eliminate overpricing and inefficiency.

"We heard from PBBM that the DPWH's previous practice of pricing materials significantly higher than market prices should no longer be tolerated," Dizon said in an interview with DZRH.

"He instructed us to study it carefully and bring it into line with market prices."

Dizon noted that there has been up to a 50 percent difference between the cost of materials in DPWH projects and their actual market value.

The newly approved price list, he added, will standardize material costs per region to reflect more realistic figures.

“I signed it on Thursday and it will be published per region; this new cost of materials will be used,” he said, adding that the adjustments could reduce prices by 50 to 70 percent depending on the material and location.

Dizon said that by implementing these changes, the government expects to generate around ₱60 billion in savings this year alone, which he said will be redirected to other priority infrastructure programs.

He also stressed that lowering prices will not affect the quality of public works projects, but rather eliminate unnecessary commissions previously embedded in project costs.

The DPWH chief acknowledged that some contractors accustomed to old practices may hesitate to participate under the new pricing system, but remained confident that many reputable builders will continue to support the government’s reform initiatives.

"We will implement reforms that will go hand in hand with the reduction in the price of materials," he added.

On classroom shortage

On the issue of classroom shortages, Dizon emphasized the need for close coordination between the DPWH, the Department of Education (DepEd), and other concerned agencies to expedite the completion of pending school infrastructure.

"We have already spoken with Sec. Angara and there is a catch-up plan to speed up the construction of classrooms," he said.