Chapter 3: Local Road Planning 96 f. The actual rehabilitation, improvement and maintenance work shall be done by contract as the default method. If by contract initiate the procurement process, award the contract through a competitive bidding procedures and supervise the implementation of the rehabilitation, improvement and maintenance works; g. The implemented projects should be monitored and evaluated. This step should culminate with the updating of the road inventory and the list of priority road sections for the next year. The key steps are again repeated for the subsequent years Once the works programming for local roads are completed, the LGUs will now proceed to the local budgeting process. The local budget is the principal instrument of the LGU in implementing the Programs, Projects, and Activities (PPAs) identiifed in Local Development Plans and prioritized in Local Development Investment Programs (LDIP) and Local Annual Investment Programs (AIP). It is considered as a ifnancial plan of the LGU as mandated by the Local Government Code (RA 7160). Ideal local budgeting entails ifscal discipline, eiffcient allocation of LGU resources and getting value for money in the implementation of PPAs. The local budgeting process has been standardized by the Department of Budget and Management (DBM) through the Uniifed Budget Operations Manual (UBOM). The NEDA PLPEM Guidelines also has provided a set of guidance to assist the LGUs in its local budgeting process as provided for in Figure 3.18. As illustrated in Figure 3.18, the steps in a typical local budgeting process for which LGUs are required to undertake are the following: