COA: ‘Deficiencies’ affect implementation of P531-B DPWH projects

MANILA (UPDATED) — “Deficiencies” have contributed to the “inefficient” implementation of Department of Public Works and Highways (DPWH) projects worth P531.7 billion, the Commission on Audit (COA) has found.

Based on its 2025 Annual Audit Report, COA said 9,061 DPWH infrastructure and consultancy projects were affected by “deficiencies in project planning, detailed engineering, contract administration, supervision, monitoring, and timely resolution of implementation issues.”

COA noted that these have led to “project delays, suspensions, contract terminations, unimplemented projects, significant negative slippages, idle and incomplete works, and unrecouped advances.”

The deficiencies, COA said, have impacted the timely delivery of projects and have delayed the benefits for the public, and reduced public resource utilization efficiency.

COA reiterated its audit recommendation from the prior year. 

The management of DPWH’s central office and affected regional and district engineering offices agreed to improve project readiness before procurement by ensuring implementation prerequisites such as:

– detailed engineering design, cost estimates, and road right-of-way acquisition; 

– strengthening coordination with local government units, utility providers, property owners and other stakeholders; 

– and requiring the Bids and Awards Committee to “strictly verify during post-qualification the contractor’s technical capability.”

DPWH also agreed to boost project monitoring and contract administration and to promptly enforce the applicable contractual remedies.

The commission likewise flagged 300 infrastructure projects worth P17.3 billion as these showed “visible defects, deficiencies, incomplete works, and discrepancies between reported accomplishments and actual site conditions.”

COA said the deficiencies were linked to non-compliance with approved plans, specifications, and contract supervisions and non-compliance with the prescribed requirements for project information disclosure, among others.

The concerned district engineering offices agreed to the recommendations of COA to validate and assess the deficiencies observed in ocular inspections, determine the underlying causes and identify the responsible individuals, and submit explanations and documents to substantiate the planned action.

The DPWH also agreed to strengthen project planning, implementation, supervision, monitoring, inspection, accomplishment validation, contract administration, turnover, and post-completion maintenance. 

The COA also saw around P4 billion of advances that remain unrecovered from contractors and consultants for completed, terminated or rescinded, abandoned, and projects awaiting contract termination.

Among the COA’s suggestions, which the DPWH agreed with, are to reach out to concerned contractors and consultants whose projects were finished, to furnish the accounting unit a copy of the Certificate of Completion with the corresponding Statement of Work Accomplished, to demand the refund of unrecovered advances.

The DPWH has also collected and retained P1.2 billion of retention money, warranty securities, and excavation/restoration deposits which were unreleased or unclaimed by contractors even after the warranty period lapsed and/or completion of intended purpose.

The department’s management agreed that the regional and district engineering offices direct the accounting units to send written notices to contractors, suppliers, and bidders for refund.

Further, DPWH’s unsettled audit suspensions reached P67.9 billion as of Dec. 31, 2025. Its disallowances and charges, meanwhile, accumulated to P50.1 billion and P2.8 million, respectively.