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Welcome to the Contract Price Escalation page.

This page provides rules and guidelines based on the provisions of the Government Procurement Reform Act (GPRA) (Republic Act No. 9184) and its Implementing Rules and Regulations (IRR).

IMPORTANT NOTICE TO THE PUBLIC:
Updates and Guidance as of January 29, 2025

The Government Procurement Reform Act has been amended by the New Government Procurement Act (NGPA) (Republic Act No. 12009), enacted on July 20, 2024, and effective as of August 13, 2024. The NGPA introduces updated provisions, with Section 89 serving as the new legal basis for contract price escalation. It also transfers the responsibility for initiating the processing of claims to the Government Procurement Policy Board (GPPB).

SEC. 89. Contract Prices. — For the given scope of work in the contract as awarded, all bid prices shall be considered as fixed prices, and therefore not subject to price escalation during contract implementation. In the event of an extraordinary increase in prices of specific components of the Infrastructure Project, price escalation may be considered, subject to prior approval of the GPPB. If the cost of construction components increases by more than ten percent (10%) of the unit price of work items, as determined against the prevailing price indices of the Philippine Statistics Authority (PSA), a price escalation may be authorized at a no loss, no-gain basis, using the appropriate formula prescribed by the GPPB. For the purpose of this section, the PSA shall ensure that its price indices are region specific and updated on a monthly basis.

For NEW Price Escalation Claims

Stakeholders are advised to directly coordinate with the GPPB-TSO (Technical Support Office) through the following channels:

  • Email: secretariat@gppb.gov.ph and gppb@gppb.gov.ph
  • Office Address: Government Procurement Policy Board – Technical Support Office Building Commonwealth Avenue, UP Diliman Campus, Quezon City, Philippines 1121

Note that the GPRA IRR remains applicable until the IRR of the NGPA is published and made in effect. To assist stakeholders during this transition period, we have retained the documents and materials below for reference/research. Updates will be posted on this page as soon as new developments occur.

Thank you for your understanding and continued cooperation.

Downloads

English VersionFilipino Version
Submission of Documentary Requirements for Contract Price Escalation Requests to NEDA (as of May 21, 2019)
Checklist for Price Escalation Requests (as of May 23, 2022)
Flowchart in Reviewing Request for Contract Price Escalation
Price Escalation Sample Computation
Frequently Asked Questions on Contract Price Escalation Requests

Pagtaas ng presyo/halaga ng Kontrata alinsunod sa IRR of RA 9184

Mga gabay at proseso sa pag-aapruba ng mga kahilingan/hiling sa pagtaas ng presyo/halaga ng Kontrata alinsunod sa Seksyon 61 ng IRR of RA 9184
Flowchart sa pagsusuri ng kahilingan/hiling sa pagtaas ng presyo/halaga ng Kontrata

E.O.423 Repealing EO 109-A
Source: Infrastructure Staff