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Manila Bulletin devider Philippines devider National devider DPWH recalibrates costing system amid fuel shocks

DPWH recalibrates costing system amid fuel shocks

Published Apr 1, 2026 01:34 pm

At A Glance

  • DPWH allows market-based prices in project costing amid rising fuel costs.
  • Construction Materials Price Data (CMPD) remains the primary reference, with supplier-canvassed prices allowed when necessary.
  • Implementing offices must comply with PSA and DTI benchmarks and submit required certifications and supporting documents.
The Department of Public Works and Highways (DPWH) has issued interim guidelines allowing implementing offices to use market-based prices in project costing to avoid delays amid rising fuel costs.
The move comes as global oil prices surge due to geopolitical tensions involving Iran, Israel, and the United States, which have driven up fuel and petroleum prices and increased construction material and equipment costs.
Under Department Order No. 43 (s. 2026), the DPWH allows implementing offices to adopt supplier-canvassed prices and adjust equipment rental computations, while retaining the Construction Materials Price Data (CMPD) as the primary reference for costing.
The use of canvassed prices is allowed when official rates no longer reflect prevailing market conditions, provided these are supported by at least three independent and verifiable supplier quotations with complete details such as specifications, unit of measure, VAT inclusion, and delivery terms.
All adopted prices must conform to technical specifications and quality standards and must be benchmarked against data from the Philippine Statistics Authority (PSA), particularly the Construction Materials Wholesale Price Index (CMWPI), as well as price monitoring systems of the Department of Trade and Industry (DTI), including E-Presyo.
The department also provided reference materials, including commodity classifications aligned with PSA standards and sample computations, to guide price validation and cost estimation.
For equipment rentals, the DPWH will continue using the Prescribed Equipment Rental Rates (PERR) based on the Association of Carriers and Equipment Lessors (ACEL) guidebook, but will allow dry rental computation when fuel prices exceed P90 per liter, factoring in actual fuel costs and equipment consumption.
The policy also requires strict documentation and monitoring, with implementing offices required to submit certifications of compliance with PSA and DTI benchmarks, supported by canvass documents submitted through the Document Tracking System (DOTS).
Projects under preparation must adopt updated pricing even if costs exceed authorized funding under the General Appropriations Act (GAA) for Fiscal Year 2026, subject to scope review or funding augmentation.
Projects already advertised may be revalidated in case of bidding failure due to insufficient budgets, while ongoing projects may address cost increases through price escalation mechanisms.
“These guidelines are issued to address temporary market disruptions affecting construction material prices and equipment rental rates due to fuel price volatility,” the DPWH said, adding that implementing offices are directed to exercise due diligence, with non-compliance subject to administrative sanctions.

Related Tags

DPWH infrastructure construction costs fuel prices cost estimation
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