Detailed Unit Price Analysis System for Inrastructure Projects Act

Sentate Office of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session 25 OCT 27 P5:23 SENATE RECEIVED BY: S. No. 1467 Introduced by Senator Francis G. Escudero AN ACT INSTITUTIONALIZING DETAILED UNIT PRICE ANALYSIS SYSTEM IN THE DETERMINATION OF APPROPRIATIONS FOR ANY AND ALL INFRASTRUCTURE PROJECTS IN THE NATIONAL EXPENDITURE PROGRAM AND THE GENERAL APPROPRIATIONS ACT EXPLANATORY NOTE Public infrastructure projects constitute a substantial portion of the national budget every year. For Fiscal Year 2026, public sector infrastructure budget will reach PHP 1.56 trillion, which is equivalent to 22.94% of the total expenditure program for the fiscal year. Despite the fiscal impact of infrastructure projects, the manner by which their appropriations are determined remains arbitrary, inconsistent, and susceptible to distortion and misrepresentation, resulting in inflated project costs and inefficient budget utilization. The President recently noted that a review conducted by Department of Public Works and Highways has uncovered overpricing of items such as asphalt, steel bars and cement by as much as fifty percent (50%). Worse, this has given rise to an arbitrary yet systematic scheme where to appropriations for infrastructure projects are allegedly being used as identifiers of projects reserved for favored contractors.

To address this vulnerability and to ensure that the appropriations for infrastructure projects reflect its actual market cost, this bill seeks to institutionalize a standardized basis for determining appropriations for infrastructure projects. It adopts a Detailed Unit Price Analysis System that assigns peso value on identifiable and verifiable budgetary components such as labor, equipment, materials, and other ancillary expenses that are necessary for the implementation and completion of infrastructure projects. 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 a technical and financial safeguards against corrupt and inefficiencies in public spending. Ultimately, 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. In view of the foregoing, the approval of this bill is earnestly requested. FRANCIS G. ESCUDERO

Senate Office of the Secretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session OCT 27 P5:23 SENATE RECEIVED BY: 1467 S. No. _ Introduced by Senator Francis G. Escudero AN ACT INSTITUTIONALIZING DETAILED UNIT PRICE ANALYSIS SYSTEM IN THE DETERMINATION OF APPROPRIATIONS FOR ANY AND ALL INFRASTRUCTURE PROJECTS IN THE NATIONAL EXPENDITURE PROGRAM AND THE GENERAL APPROPRIATIONS ACT Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Detailed Unit Price

2 Analysis System for Infrastructure Projects Act".

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

take positive and effective measures against graft and corruption. Towards this end, the State shall institutionalize standards and procedures for estimating costs of any and all infrastructure projects of government and adopt measures to promote fiscal 7 discipline, enhance efficiency in the allocation of government resources, and deter unscrupulous budget practices.

Sec 3. Definition of Terms. - As used in this Act:

(a) Implementing Agency shall refer to any department, bureau, office, commission, authority or agency of the national government, including any government-owned or -controlled corporation or state college or university, duly authorized by law or its charter to undertake national government projects; (b) Infrastructure Project shall refer to the construction, improvement, rehabilitation, demolition, repair, restoration, or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of

information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings, and other related construction projects of the government; and (c) Multi-Year Project shall refer to a government project that would require more than one (1) year to complete and would consequently need appropriations across multiple years as evidenced by a duly approved multi-year obligational authority.

Sec. 4. Coverage. - This Act shall apply to all infrastructure projects, including

multi-year projects, of national government agencies and instrumentalities, including constitutional offices, state universities and colleges, and government-owned or controlled corporations with or without original charter.

Sec. 5. Technical and Financial Basis for Appropriations. - Implementing

agencies shall ensure that appropriations for infrastructure projects are supported by documentation that establishes the technical and financial basis for their determination. Such documentation shall be contained in a Detailed Unit Price Analysis (DUPA) that provides detailed itemization of the cost and quantity of labor, equipment, and materials required in a given project, as well as other ancillary expenditures necessary for its implementation and completion. The DUPA shall be deemed as a requisite or a condition sine qua non for the inclusion of any infrastructure project in the National Expenditure Program and the General Appropriations Act, and for the conduct of any procurement activity and the subsequent release of any allotment for such project.

Sec. 6. Components of Detailed Unit Price Analysis. - The DUPA shall include

the following information: (a) Name, location, and brief description of the infrastructure project; (b) Projected duration of project implementation; (c) Labor, including the type and number of workers required, their respective wage rates, and the number of days such workers will be contracted;

(d) Equipment and machinery, including the type and number of equipment or machinery required, their respective acquisition cost or rental rates, and the number of days such equipment or machinery will be rented, if applicable; (e) Detailed list and quantity of materials required and their respective unit costs; (f) Projected overhead, contingency, and miscellaneous expenses; contractor's 7 profit; tax expenditure; and other relevant expenses; (g) Such other information as may be prescribed under the national reference 9 manual as provided under Section 7 of this Act, or as may be required by the 10 implementing agencies concerned.

Sec. 7. National Reference Manual. - The DUPA for infrastructure project shall

be prepared in accordance with a national reference manual to be prepared by the Department of Public Works and Highways (DPWH) in collaboration with the Department of Budget and Management (DBM), Department of Economy, Planning, and Development (DEPDev), and Commission on Audit (COA). The manual shall contain standard criteria and methodologies for preparing and updating DUPAs, cost references and templates, and other information necessary for ensuring accuracy, uniformity, and transparency in cost estimation of all implementing agencies. The manual shall be updated at least once every three (3) years to incorporate regional price variances, price inflation, technology improvements, and other factors affecting the cost of infrastructure projects.

Sec. 8. Capacity Building and Technical Support. - The DPWH, in coordination

with DBM, DEPDev, Civil Service Commission, and COA, shall design and implement a capacity building program for government engineers, budget officers, auditors, and other personnel involved in preparing and evaluating budget and project proposals, which shall be included in the list of regular training program of government agencies concerned.

Sec. 9. Penalties. - Any public official or employee who knowingly falsifies or

omits, or causes the falsification or omission of any information contained in the DUPA shall suffer the penalty of perpetual absolute disqualification to hold office without

1 prejudice to any other liabilities, criminal, civil, administrative or otherwise, as may be 2 provided by law and regulations.

Sec. 10. Transitory Provision. - For Fiscal Year 2026, compliance with the

4 requirements under Section 5 of this Act shall apply to infrastructure projects implemented by national executive agencies, including, but not limited to, projects implemented by the Department of Agriculture, Department of Education, Department 7 of Health, Department of Information and Communication Technology, Department of the Interior and Local Government (DILG), Department of National Defense, DPWH, and Department of Transportation. Consequently, no funds shall be released, nor any 10 procurement activity shall be performed for such infrastructure projects.

Sec. 11. Implementing Rules and Regulations. - Within sixty (60) days from

the effectivity of this Act, the DPWH shall promulgate the rules and regulations to effectively implement the provisions of this Act.

Sec. 12. Separability Clause. - If any provision or part hereof is declared

unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in full force and effect.

Sec. 13. Repealing Clause. - All laws, acts, decrees, executive orders,

issuances, and rules and regulations or parts thereof which are contrary to and inconsistent with this Act are hereby repealed, amended or modified accordingly.

Sec. 14. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or at least two (2) newspapers of general circulation. Approved,