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Price Escalation Management in Philippine Public Infrastructure Projects: A Comparative Analysis of the RA 9184 (GPRA) and RA 12009 (NGPA) Frameworks
Subject area: Science,Engineering and Technology · Area of research: Engineering Management
DOI: https://doi.org/10.64388/IREV9I11-1718417
Abstract
The construction industry has experienced significant supply chain disruptions in recent years brought about by the successive impacts of the COVID-19 pandemic, the Russia–Ukraine War, and the recent US–Israel–Iran conflict. These disruptions have contributed to substantial price escalations in construction materials and resources, the management of which varies depending on the provisions and conditions stipulated in construction contracts. In the Philippine context, these circumstances highlight the need to examine and understand the existing laws, rules, and regulations governing the management of price escalation impacts and their implications on project implementation. In 2025, the existing Philippine procurement law, Republic Act No. 9184, otherwise known as the Government Procurement Reform Act (GPRA), was repealed and replaced by Republic Act No. 12009, or the New Government Procurement Act (NGPA), which introduced a more “fit-for-purpose” approach to procurement. Consequently, the policies and procedures governing price escalation claims likewise underwent significant changes. This research examines and compares the provisions of the previous and current procurement systems, highlighting their differences and points of alignment in relation to price escalation management. Furthermore, the study aims to propose recommendations to improve and streamline the management of price escalation claims and minimize disputes in Philippine public infrastructure projects.
How to cite this paper
@article{1718417,
author = {Joanne V. Buenaventura, Michael John M. Villar, PhD},
title = {Price Escalation Management in Philippine Public Infrastructure Projects: A Comparative Analysis of the RA 9184 (GPRA) and RA 12009 (NGPA) Frameworks},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {11},
pages = {4644-4649},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1718417.pdf},
abstract = {The construction industry has experienced significant supply chain disruptions in recent years brought about by the successive impacts of the COVID-19 pandemic, the Russia–Ukraine War, and the recent US–Israel–Iran conflict. These disruptions have contributed to substantial price escalations in construction materials and resources, the management of which varies depending on the provisions and conditions stipulated in construction contracts. In the Philippine context, these circumstances highlight the need to examine and understand the existing laws, rules, and regulations governing the management of price escalation impacts and their implications on project implementation. In 2025, the existing Philippine procurement law, Republic Act No. 9184, otherwise known as the Government Procurement Reform Act (GPRA), was repealed and replaced by Republic Act No. 12009, or the New Government Procurement Act (NGPA), which introduced a more “fit-for-purpose” approach to procurement. Consequently, the policies and procedures governing price escalation claims likewise underwent significant changes. This research examines and compares the provisions of the previous and current procurement systems, highlighting their differences and points of alignment in relation to price escalation management. Furthermore, the study aims to propose recommendations to improve and streamline the management of price escalation claims and minimize disputes in Philippine public infrastructure projects.},
month = {May},
doi = {https://doi.org/10.64388/IREV9I11-1718417}
}