Local Road Management Manual 147 Works are not part of the regular operating budget of the local engineering oiffce. The personnel of local engineering oiffces are not expected to shoulder these out-of-pocket expenses; b. Contingencies. The local engineering oiffce should allot budget for ancillary, special or unforeseen events such as stakeholder meetings, project ceremonies and emergency situations; c. Miscellaneous Expenses. The local engineering oiffce should allocate budget for the laboratory testing of materials and work items installed by its personnel as part of By-Administration Works. Even DPWH laboratory testing centers charge government agencies and LGUs if they obtain such testing services from DPWH; and d. VAT Component. If the local engineering oiffces will obtain VAT-able services and goods, then it goes without saying that budget for these items will include VAT as part of the oiffcial receipt of the supplier or provider. 4.2.3 Unit Price Analysis and Program of Works The local engineering oiffces or the LGU should include unit price analysis (UPA) as part of its Program of Works for By-Administration as discussed in Section 4.1.3. This will allow the LGU to compute the true cost of projects if implemented By-Administration or force account. For planning purposes, the LGU will now have an idea of the cost of work items on a per-kilometer basis (for road projects), per-volume basis (for excavation, cut or ifll activities for local roads) or per-area basis (clearing activities for local roads), or cost per unit of measure, as the case maybe. Provisions for Dayworks and contingencies can also be included in POW which is equivalent to 10% of the estimated project cost.