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Local Road Management Manual 178 a. The Contract is the legal agreement between two parties to execute complete and maintain the works, goods and services. The size, complexity and cost of such works, goods and services may vary widely. The essential elements of a contract are the following: i. An oral or written agreement; ii. The involvement of two or more persons; iii. An exchange relationship; iv. commitment of both parties involve; At least one promise; and v. Enforceability or effectivity. b. Contract Documents. Contract documents are sets of documents comprises of either agreement and conditions of contract. Normally the form of contract comprises of the following: i. General and Special Conditions of Contract; ii. Drawings/Plans; iii. Specifications; iv. Invitation to Bid; v. Instructions to Bidders; vi. Bid Data Sheet; vii. Addenda and/or Supplemental/Bid Bulletins, if any; viii. Bid form, including all the documents/statements contained in the Bidder’s bidding envelopes, as annexes, and all other documents submitted (e.g., Bidder’s response to request for clarifications on the bid), including corrections to the bid, if any, resulting from the Procuring Entity’s bid evaluation; ix. Eligibility requirements, documents and/or statements; x. Performance Security; xi. Notice of Award of Contract and the Bidder’s conformed thereto; xii. Other contract documents that may be required by existing laws and/or the Entity. c. Employer. In standard form of Contract, the Employer is the LGU represented by the local chief executive and the legal

Local Road Management Manual - Page 179 Local Road Management Manual Page 178 Page 180