Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2511 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, 
AND HON. TERRY L. RIDON 
EXPLANATORY NOTE 
This proposed National Precast and Industrialized Construction Promotion Act is being 
introduced with the purpose of maximizing our government’s efforts to solve the 
country's housing backlog, construction delays, and high costs associated with 
traditional building methods.  
It aims to adopt modern solutions in the construction industry by promoting the use of 
precast concrete and other industrialized construction techniques, which offer faster, 
more efficient, and potentially more sustainable building solutions. According to a 
study conducted by Xiong and Baccay (2025) entitled ‘Economic Benefits of Adopting 
Prefabricated Building Systems in the Philippines’, “Prefabrication is characterized by 
the off-site manufacturing of building components for on-site assembly offers 
significant economic benefits, including reduced construction time, lower labor costs, 
and improved quality control”.  
With this study, the filing of this proposed measure is timely and efficient as the 
following measures shall be advantageous to the progress of the country: 
Addressing the Housing Shortage 
The Philippines faces a significant housing backlog, currently at 8.25M units as of 
March 2025. Since the initiative of the government of ‘Build, Build, Build’, the 
construction sector of the our country continues to face rapid urbanization which 
likewise resulted to an increase in infrastructure. However, traditional construction 
methods are often slow and expensive, making it difficult to meet the demand for 
affordable housing. Precast and industrialized construction can accelerate the building 
process, allowing for faster delivery of housing units and potentially reducing costs 
while being environmentally friendly.   
Improving Construction Efficiency and Sustainability 
Precast construction allows for the mass production of building components in a 
controlled factory environment, leading to greater precision and faster assembly on-
site. Reduced construction time translates to lower labor costs and faster project 
completion, making it more attractive for developers and investors.  
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4:27 pm


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Moreover, precast construction can contribute to more sustainable building practices 
by reducing waste, optimizing material usage, and minimizing on-site disturbances, 
especially in large-scale constructions such as buildings, bridges, and airports. The 
controlled environment of precast factories allows for better waste management and 
recycling of materials to reduce carbon emission. 
Economic Benefits and Keeping with International Standards 
While precast construction may require higher initial investment, the long-term cost 
savings due to reduced labor, faster construction times, and lower maintenance costs 
can make it a more cost-effective solution. In addition, our adoption of such 
technologies can boost employment and productivity by creating demand for skilled 
labor and local precast plants. It also supports the government’s green building goals 
through lower site waste, faster builds, and energy-efficient production. Such measure 
can attract investors and developers into the country that will definitely aid in boosting 
our economic status, as well as, keep up with international standards and trends.  
Precast and industrialized construction methods are seeing an increased international 
adoption due to their numerous benefits, including faster construction times, cost-
effectiveness, and improved sustainability. Western countries like the United States, 
the United Kingdom, and Germany have seen widespread adoption of prefabrication 
in both residential and commercial projects. Countries like China and those in the Asia-
Pacific region are experiencing rapid growth in precast concrete construction due to 
industrialization and infrastructure development.  
This bill seeks not only the promotions of such technologies but also proposes the 
adoption of national standards for the use of these technologies similar to what India 
did with its Global Housing Technology Challenge and Singapore’s Prefabricated 
Prefinished Volumetric Construction.  
The National Precast and Industrialized Construction Promotion Act is a strategic 
measure to modernize the construction industry, address the housing crisis, improve 
efficiency and sustainability, and ultimately contribute to the country's economic 
development.  
In light of the foregoing, the immediate passage of this bill is earnestly sought. 
HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 


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HON. TERRY L. RIDON 
HON. TSUYOSHI ANTHONY G. HORIBATA


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 2511 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT ADOPTING AND PROMOTING PRECAST, PREFABRICATED, AND 
MODULAR CONSTRUCTION TECHNOLOGIES IN NATIONAL AND LOCAL 
HOUSING AND INFRASTRUCTURE PROGRAMS IN THE PHILIPPINES, AND 
APPROPRIATING FUNDS THEREOF 
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 “National Precast and Industrialized 
Construction Promotion Act”. 
Sec. 2. Declaration of Policy and Objectives. -  It is hereby declared to be the policy of 
the State to safeguard life, health, property, and public welfare, consistent with the 
principles of sound environmental management and control; and to this end, make it the 
purpose of this act to adopt and promote the use of precast, prefabricated, and modular 
construction systems across public and private sectors to address the need for 
sustainable, fast, and resilient construction methods for housing, infrastructure, and 
disaster-resilient development in the Philippines. 
Sec. 3. Objectives of the Act. The Objectives of the Act are as follows: 
a) To promote faster, cleaner, and cost-efficient construction methods through means
of streamlining the construction process by manufacturing precast and
prefabricated components to boost the construction economy;
b) To reduce construction-related carbon emissions and minimize on-site waste that
shall be aligned with green building standards globally;


 
c) To ensure resilience during natural disasters through quality-controlled precast 
systems;  
 
d) To build institutional and technical capacity for off-site construction methods 
nationwide; and 
 
e) To attract local developers and investors, as well as foreign entities, to invest on 
their small, medium, and large-scale construction projects in the country for its 
economic development.  
 
Sec. 4. Definition of Terms. - As used in this Act and the implementing rules and 
regulations (IRR) to be issued pursuant thereto, the following shall be defined as follows: 
 
a) Prefabricated Construction – refers to any building or component that is 
manufactured off-site in a factory environment, then transported and assembled 
on-site. It includes, but is not limited to, steel frames, wooden panels, light gauge 
steel, and concrete components. Prefab systems are not limited to volumetric 
modules and may be 2D (panels), 3D (modules), or hybrid. 
 
b) Modular Construction – a subset of prefabricated construction where entire 3D 
sections or volumetric modules (including walls, floors, ceilings, wiring, and 
plumbing) are built in a controlled factory setting and transported to the site for final 
assembly. Modular buildings can be permanent or relocatable and are designed 
to comply with local building codes. 
 
c) Industrialized construction – refers to the integration of manufacturing processes 
and advanced technologies into the construction industry to improve efficiency, 
precision, and sustainability. This approach involves prefabrication, automation, 
robotics, and digital technologies like Building Information Modeling (BIM) to 
streamline the design, fabrication, and assembly of building components.  
 
d) Precast construction – refers to construction materials that are manufactured off-
site in controlled environments and then transported to the construction site for 
installation. It is made by pouring concrete into molds or forms, where it can cure 
and harden before being lifted and transported. Precast concrete comes in various 
shapes and sizes, including panels, beams, columns, and modules, and it is used 
in a wide range of construction projects, from buildings and bridges to 
infrastructure and landscaping. 
 
e) Modular Building Code - refers to standards set for building methods where 
sections of a structure, or modules, are built in a factory setting and then 
transported to a construction site for assembly. 
 
 
 


 
Sec. 5. Scope and Coverage. - The provisions of this Act shall apply by the following 
within their respective jurisdictions: 
 
a) National Government Agencies (NGAs); 
b) Local Government Units (LGUs); 
c) Government-Owned and Controlled Corporations (GOCCs); 
d) Public-Private Partnership (PPP) Projects; and 
e) Private developers availing of government incentives for housing, tourism, and 
infrastructure. 
 
Sec. 6. Priority Implementation in Public Housing and Public Infrastructure 
Projects. – The following implementing agencies shall prioritize to implement the 
following:  
 
a. The National Housing Authority (NHA) and Department of Human Settlements and 
Urban Development (DHSUD) shall prioritize to implement precast construction or 
industrialized construction for all housing projects including the 4PH (Pambansang 
Pabahay Para sa Pilipino). 
 
b. The Department of Public Works and Highways (DPWH) and the Department of 
Transportation (DOTr) shall prioritize to industrialize construction technologies in 
public infrastructure projects such as bridges, public terminals, drainage, and highway 
components whenever feasible. 
 
 
Sec. 7. Integration into the National Building Code of the Philippines. The DPWH, 
DPWH-BRS (Bureau of Research and Standards) and DHSUD shall update the National 
Building Code to integrate the following: 
 
a) Precast design standards 
b) Modular Building Code 
c) Earthquake- and typhoon-resilient design requirements 
 
 
Sec. 8. Capacity Building and Research and Development. – The following shall 
integrate within their mandates the following: 
 
a) The Technical Education and Skills Development Authority (TESDA) and the 
Commission on Higher Education (CHED) shall develop and roll out curriculum 
and training programs for precast manufacturing, installation, and inspection. 
 
b) The Department of Science and Technology (DOST) shall perform local research 
and development on local or indigenous materials for precast or industrialized 
construction. 
 
 


 
Sec. 9. Incentives for the Private Sector. The following are mandated to study the grant 
of benefits or incentives for housing developers using precast systems in mass housing 
or climate-resilient infrastructure: 
 
a) Local Government Units (LGUs) - for the expedited issuance of building 
permits; 
 
b) Department of Finance (DOF) - for tax deductions or income tax holidays or 
duty-free importation for investors or businesses involved in precast 
construction or industrialized construction technologies; 
c) Development Bank of the Philippines (DBP), Landbank of the Philippines and 
Pag-IBIG - for eligibility in low-interest green financing and similar programs; 
 
d) Board of Investments (BOI) - for the inclusion of a registration system for 
precast manufacturers to give fiscal and non-fiscal incentives including VAT 
exemptions and investment facilitation support and inclusion in the Investment 
Priorities Plan (IPP).  
 
 
Sec. 10. Technology Accreditation Program. A Philippine Precast and Industrialized 
Construction Accreditation System (PPICAS) shall be created by the Construction 
Industry Authority of the Philippines (CIAP) to vet technologies, perform pilot 
demonstration projects and local adaptation testing, and fast-track the approval or 
certification of qualified precast and industrialized construction technologies. 
 
 
Sec. 11. Monitoring and Evaluation. A National Committee on Industrialized 
Construction (NCIC) shall be formed comprised of agency representatives from the 
DPWH, DOTR, DHSUD, and the Department of Economy, Planning and Development 
(DepDev), and shall primarily be responsible for tracking adoption metrics, drafting 
Annual Progress Reports, and recommending supporting policy refinements and funding, 
among others. 
  
The NCIC shall likewise be responsible for international benchmarking and collaboration, 
including the establishment of international partnerships, exchange of best practices and 
engineering standards, and the facilitation of technology transfer and training programs. 
 
 
Sec.12. Appropriation. The amount needed for the initial implementation of this Act is 
hereby appropriated under the unappropriated funds of the National Treasury. Thereafter, 
Congress shall provide for the appropriations needed for the implementation of this Act 
to be included in the General Appropriations Act.   
 
 
Sec. 13. Implementing Rules and Regulations. The DPWH, DOTR, DHSUD, and 
DepDev, in consultation with relevant stakeholders, shall issue the rules and regulations 


 
necessary for the implementation of this Act within ninety (90) days from the effectivity of 
this Act 
 
Sec. 14. Mandatory Review. This Act shall undergo a mandatory review of its provisions 
every five (5) years to make the law more responsive to the needs of the times. The 
review shall be made by Congress, which shall conduct public hearings and evaluate the 
accomplishments and impact of this Act, which shall be the basis of any amendment or 
modification of this Act. 
 
Sec. 15. Repealing Clause. - Any law, presidential decree or issuance, executive order, 
letter of instruction, administrative order, proclamation, charter, rule or regulation, and/or 
parts thereof contrary to or inconsistent with the provisions of this Act is hereby repealed, 
modified or amended accordingly. 
 
Sec. 16. Separability Clause. - If, for any reason, any section or provision of this Act is 
declared unconstitutional or invalid, the other sections or provisions which are not affected 
hereby shall continue to be in full force and affect. 
 
Sec. 17. Effectivity. - This Act shall take effect fifteen (15) days following its publication 
in the Official Gazette or in two (2) newspapers of general circulation. 
 
Approved,