THE CIDMS DICTIONARY

ADJUDICATION
A form of dispute resolution where, unlike other means of
resolving disputes involving a third party intermediary, the
outcome is a decision by a third party which is binding on the
parties in dispute and is final unless and until reviewed by either
arbitration or litigation.

 

 

ADVANCE PAYMENT
Sum of money paid to the contractor after the contract is signed
but before work starts or goods or services or any combination
thereof are supplied.

 

 

AFFIRMABLE BUSINESS ENTERPRISE
A business that adheres to statutory labour practices, is a
legal entity, is registered with the Receiver of Revenue and is
a continuing independent enterprise for profit, owned at least
two thirds by one or more PDIs (Previously Disadvantaged
Individuals)
AERATION
Aeration (also called aerification) is the process by which
air is circulated through, mixed with or dissolved in a liquid
or substance. Uses of aeration of liquids include secondary
treatment of sewerage or industrial wastewater with aerating
mixers/diffusers.

 

 

AGGREGATE
A whole formed by combining several different elements or the
act of making this whole.

 

 

AMALGAMATION RULES
The rule set applied to the results of an investment study when
different sets of results are combined in a multicriteria analysis
(see multicriteria analysis).

 

 

ANALYSIS PERIOD
Time interval used in the financial evaluation of an investment
opportunity (number of assessment periods). For the purposes
of this toolkit the analysis period in formulae is denoted with
an “n”.

 

 

ASSET
A resource owned or controlled by an entity as a result of past
events and from which future economic benefits or service
potential is expected to flow to the entity.

 

 

ASSET REGISTER (LGIAMG)
A record of asset information considered worthy of separate
identification for both asset accounting and strategic
management purposes including inventory, historical, condition
and construction, technical and financial information about
each.

 

 

Note: The unit of account in an asset register is a component (see
definition of a component).

 

 

ASSET SYSTEM (ISO 55 000)
Set of assets that interact or are interrelated.

 

 

ASSET TYPE (ISO 55 000)
Grouping of assets having common characteristics that
distinguish those assets as a group or class.

 

 

ATTRIBUTE DATA
Data in tabular format (rows and columns).

 

 

AUDIT (ISO 55000)
Systematic, independent and documented process for obtaining
audit evidence and evaluating it objectively to determine the
extent to which the audit criteria are fulfilled.

 

 

AUTHORISED PERSON
The municipal manager, chief executive or the appropriately
delegated authority to award, cancel, amend, extend or transfer
a contract or order.

 

 

BENEFIT-COST ANALYSIS − COMMUNITY
Discounted cash flow that takes into account the benefits
and costs of an investment opportunity to the entity and the
community it serves.

 

 

BENEFIT-COST ANALYSIS − ORGANISATION
Discounted cash flow that takes into account the benefits and
costs of an investment opportunity to the entity only.

 

 

BIOLOGICAL NUTRIENT REMOVAL (BNR)
Biological nutrient removal is a process used for nitrogen and
phosphorus removal from wastewater before it is discharged
into surface or groundwater.

 

 

COMPONENT (IIMM)
A component (Note 1) is a specific part of a complex item (Note
2) that has independent physical or functional identity and
specific attributes such as different life expectancy, maintenance
and renewal requirements and regimes, risk or criticality.

 

 

Note 1: A component is separately recognised and measured
(valued) in the organisation’s asset register as a unique asset record,
in accordance with the requirements of GRAP 17 to componentise
assets.

 

 

Note 2: A complex item is one that can be disaggregated
into significant components. Infrastructure and buildings are
considered complex items.

 

 

CONDITION (IIMM)
The physical state of the asset.

 

 

CONDITION ASSESSMENT OR CONDITION MONITORING
(IIMM)
The inspection, assessment, measurement and interpretation
of the resultant data, to indicate the condition of a specific
component so as to determine the need for some preventive or
remedial action.

 

 

CONFORMITY (ISO 55 000)
Fulfilment of a requirement.

 

 

CONTROL BUDGET
The amount of money which is allocated or made available
to deliver or maintain infrastructure associated with a project
or package, including site costs, professional fees, all service
and planning charges, applicable taxes, risk allowances and
provision for price adjustment for inflation.

 

 

CONTRACT MANAGEMENT
Applying the terms and conditions, including the agreed
procedures for the administration thereof.

 

 

CONTRACTOR
Person or organisations who contract with the employer to
provide goods or services or any combination thereof covered
by the contract.

 

 

CONSTANT PRICE
Price excluding adjustment for inflation.

 

 

DEFERRED MAINTENANCE
The portion of planned maintenance work necessary to maintain
the service potential of an asset that has not been undertaken in
the period in which such work was scheduled to be undertaken.

 

 

DEMAND MANAGEMENT
The active intervention in the market to influence demand
for services and assets with forecast consequences, usually to
avoid or defer CAPEX expenditure. Demand management is
based on the notion that as needs are satisfied expectations rise
automatically and almost every action taken to satisfy demand
will stimulate further demand.

 

 

DENSITY
Measurement of the population of a defined urban area,
excluding non-urban land uses. Non-urban uses include
regional open space, agriculture and water bodies. Density can
be measured using any of the following means, depending on
the purpose of the measurement:
• Floor area ratio (FAR) the total floor area of buildings divided
by land area of the lot on which they are built
• Residential density the number of dwelling units in a given area
• Population density the number of people in a given area
• Employment density the number of jobs in a given area
• Gross density any density figure for a given area of land that
includes uses not necessarily directly relevant to the figure
(normally roads, typically accounting for about 20 per cent
the land cover of a settlement)
• Net density a density figure for a given area of land that
excludes land not directly related to the figure.

 

 

DEPRECIATED REPLACEMENT COST (IIMM)
The replacement cost of an asset less accumulated depreciation
calculated on the basis of such cost to reflect the already
consumed or expired economic benefits of the asset.

 

 

DEPRECIATION (GRAP)
Depreciation is the systematic allocation of the depreciable
amount of an asset over its useful life.

 

 

DERECOGNITION
To remove a previously recognised financial asset or liability
from an entity’s balance sheet, especially when it reaches end of
life or when it is sold to a third party.

 

 

ENVIRONMENTAL IMPACT ASSESSMENT
An assessment of the environmental consequences (positive
and negative) of a plan, policy, programme, or project prior to
the decision to move forward with the proposed action.

 

 

EVALUATION COMMITTEE
Committee that evaluates bids received in response to an
invitation issued.

 

 

EXTERNALITIES
Benefits, costs or actions that have an impact on third parties as
a result of the entity’s actions or non-action.

 

 

FACILITY (IIMM)
A complex comprising many assets (e.g. a hospital, water
treatment plant, recreation complex, etc.), which represents a
single management unit for financial, operational, maintenance
or other purposes.

 

 

FAILURE MODES
Ways in which an asset can fail in relation to required levels and
standards of service that trigger asset management planning
and potentially investment decision making:
• Capacity
• Condition
• Cost of operation
• Performance.

 

 

FAILURE MODES, EFFECTS AND CRITICALITY ANALYSIS (IIMM)
A systematic, logical risk-based maintenance approach aimed at
maximising the reliability of plant and equipment assets.

 

 

FINANCING COSTS
Includes annual interest costs and capital repayments (principle
amount) for the investment over the period of the loan.

 

 

FRAMEWORK AGREEMENT
An agreement between an organ of state and one or more
contractors, the purpose of which is to establish the terms
governing orders to be awarded during a given period, in
particular with regard to price and, where appropriate, the
quantity envisaged.

 

 

GATE
A control point at the end of a process where a decision is
required before proceeding to the next process or activity.

 

 

INFILL DEVELOPMENT
New construction that “fills in the gaps” in an already urbanised
area. This type of development has the potential to use
existing infrastructure, increase density, limit urban sprawl and
strengthen the existing economy.

 

 

INFRASTRUCTURE ASSETS
Stationary systems forming a network and serving whole
communities, where the system as a whole is intended to be
maintained indefinitely at a particular level of service potential
by the continuing replacement and refurbishment of its
components.

 

 

INFRASTRUCTURE DELIVERY
The combination of all planning, technical, administrative
and managerial actions associated with the construction,
supply, refurbishment, rehabilitation, alteration, maintenance,
operation or disposal of infrastructure.

 

 

INFRASTRUCTURE PROCUREMENT
The procurement of goods or services including any combination
thereof associated with the acquisition, refurbishment,
rehabilitation, alteration, maintenance, operation or disposal of
infrastructure

 

 

INTANGIBLES
A component that is difficult to quantify in a measurable way.

 

 

INTEGRATED DEVELOPMENT PLAN
An approach to planning that involves the entire municipality
and its citizens in finding the best solutions to achieve good
long-term development.

 

 

INTERNAL RATE OF RETURN
IRR is the discount rate that equates the present value of net cash
inflows with the initial investment in the project, resulting in a
NPV = R0. The IRR is the true yield of the investment, expressed
as a rate of return.

 

 

INVENTORIES (GRAP)
Inventories are assets: (a) in the form of materials or supplies
to be consumed in the production process; (b) in the form of
materials or supplies to be consumed or distributed in the
rendering of services; (c) held for sale or distribution in the
ordinary course of operations; or (d) in the process of production
for sale or distribution.

 

 

MAINTENANCE
All actions intended to ensure that an asset performs a required
function to a specific performance standard(s) over its expected
useful life by keeping it in as near as practicable to its original
condition, including regular recurring activities to keep the
asset operating, but specifically excluding renewal. Refer to
Appendix A for a hierarchy of maintenance type, approach and
actions.

 

 

Note: Maintenance also specifically excludes restoring the
condition or performance of an asset following a recognised
impairment event, which would be classified as either renewal or
upgrading, depending on the circumstances.

 

 

MAINTENANCE OF CAPITAL
Expenditure to ensure that the productive or operating capacity
of the asset base is maintained over time. The value vested
in capital assets is maintained when the entity has at least as
much capital at the end of the period as it had at the beginning
thereof.

 

 

MAINTENANCE EXPENDITURE
Recurrent expenditure as required to ensure that the asset
achieves its intended useful life. Maintenance is funded through
the entity’s operating budget, and such expenditure is expensed
in the entity’s Statement of Financial Performance.

 

 

MAINTENANCE PLAN
Describes the planned and unplanned maintenance actions for
an asset, facility or portfolio of assets, with intended delivery
methods and schedules, budget requirements and responsible
parties.

 

 

MAINTENANCE OBJECTIVES (IIMM)
Objectives for what maintenance has to achieve to ensure the
assets are in the right condition to meet the needs of the entity.
Maintenance performance measures and targets are the means
of assessing whether the maintenance objectives are being met.

 

 

MAINTENANCE STANDARDS
The standards set for the maintenance service, usually
contained in preventive maintenance schedules, operation
and maintenance manuals, codes of practice, estimating
criteria, statutory regulations and mandatory requirements, in
accordance with maintenance quality objectives.

 

 

MULTICRITERIA ANALYSIS
An analysis technique that takes into account a range of
qualitative and quantitative criteria reflecting the financial,
economic, social and environment characteristics of the
investment opportunity.

 

 

NET BENEFITS
The sum of annual benefits less annual costs in the year of the
project/asset’s life.

 

 

NET PRESENT VALUE
The value of an asset to the entity in present money terms. It is
the net amount of discounted cash inflows arising from the use
and subsequent disposal of the asset, after deducting the value
of the discounted total cash outflows.

 

 

NODE
A centre of activity, economic or otherwise. These often occur at
intersections of major corridors, but some just function as the
centre of their neighbourhood.
NUMERAIRE (FOR PURPOSES OF OPTIMISED DECISION
MAKING AND INVESTMENT ANALYSIS)
The numeraire is the money unit of measure within an abstract
macroeconomic model in which there is no actual money, but
other forms of utility value or costs.

 

 

OBJECTIVE (ADJUSTED FROM ISO 55000)
Result to be achieved at strategic, tactical or operational level.
Objectives can be set in a variety of domains or outcome areas
(e.g. economic, social or environmental outcomes), or can
relate to elements of the entity (e.g. corporate level or units
in the entity), or can relate to processes, services, products,
programmes and projects.

 

 

OBSOLESCENCE (OPTIMISED DECISION-MAKING GUIDELINES)
The asset can no longer be maintained, or suffers a loss in
value due to a decrease in the usefulness of the asset, caused
by technological change, or changes in people’s behavioural
patterns or tastes, or environmental changes.

 

 

OPERATING EXPENDITURE
OPEX is recurrent expenditure to provide services. Examples
of OPEX include staff costs, administration costs, consumables,
maintenance and repairs and feasibility studies.

 

 

POLICY
Intentions and direction of an entity as formally expressed in
a documented statement approved by top management and
communicated throughout the entity.

 

 

POLYCENTRIC CITY
A city structure that typically has a weak, diffused core, and
several competing primary nodes. Employment opportunities
in a polycentric city are dispersed.

 

 

PORTFOLIO
To be read in context, as follows:
• Asset portfolio: a grouping of assets to deliver a range of
services associated with a particular function. Examples
of asset portfolios include water and sanitation, roads and
stormwater, electricity distribution, solid waste, information
and communications technology, social amenities and
investment properties.
• In relation to infrastructure procurement and delivery
management: a collection of projects or programs and
other work that are grouped together to facilitate effective
management of that work to meet a strategic objective.

 

 

PREDICTIVE ACTION (ISO 55 000)
Action to monitor the condition of an asset and predict the need
for preventative or corrective action. Also referred to condition
monitoring or performance monitoring.

 

 

PREVENTATIVE ACTION (ISO 55 000)
Action to eliminate the cause of a potential nonconformity or
other undesirable potential situation.

 

 

PREVENTATIVE MAINTENANCE
Maintenance carried out at predetermined intervals, or
corresponding to prescribed criteria, and intended to reduce
the probability of failure or the performance degradation of an
item. Preventative maintenance is planned or carried out on
opportunity.

 

 

PROCESS (ISO 55 000)
Set of interrelated or interacting activities, which transform
inputs into outputs.

 

 

PROCUREMENT DOCUMENT
Documentation used to initiate or conclude (or both) a contract
or the issuing of an order.

 

 

PUBLIC PRIVATE PARTNERSHIP (PPP)
A commercial transaction between an organ of state and a
private party in terms of which the private party:
• performs an institutional function on behalf of the organ
of state or acquires the use of state property for its own
commercial purposes; and
• assumes substantial financial, technical and operational
risks in connection with the performance of the institutional
function or use of state property; and
• receives a benefit for performing the institutional function or
from utilising the state property, either by way of:
• consideration to be paid by the organ of state which
derives from a revenue fund or, where an organ of state is
a national government business enterprise or a provincial
government business enterprise, from the revenues of
such institution; or
• charges or fees to be collected by the private party from
users or customers of a service provided to them; or
• a combination of such consideration and such charges or
fees.

 

 

QUALITY
Totality of features and characteristics of a product or service
that bear on the ability of the product or service to satisfy stated
or implied needs.

 

 

RELATIONAL DATABASE MANAGEMENT SYSTEM
A relational database management system (RDBMS) is a
database management system (DBMS) that is based on the
relational model.

 

 

RELIABILITY-CENTRED MAINTENANCE (IIMM)
A process for optimising maintenance based on the reliability
characteristics of the asset.

REMAINING USEFUL LIFE (IIMM)
The time remaining until an asset ceases to provide the required
service level or economic usefulness.

 

 

RISK MANAGEMENT (IIMM)
The application of a formal process that identifies the exposure
of an entity to service performance risk and determines
appropriate responses.

 

 

RISK REGISTER (IIMM)
A record of information that stipulates risks identified, the levels
of risk exposure before and after implementation of risk controls,
and details of appointed risk owners as a minimum.

 

 

ROUTINE MAINTENANCE (IIMM)
Day-to-day operational activities to keep the asset operating
(replacement of light bulbs, cleaning of drains, repairing leaks,
etc.) and which form part of the annual operating budget,
including preventative and periodic maintenance.

 

 

SENSITIVITY ANALYSIS
Testing of the variations in the outcome of an evaluation by
altering the values of key factors about which there may be
uncertainty.

 

 

SETTLING TANK
Separation equipment normally part of a process that involves
separating solids from liquid. When treating wastewater, filtered
liquid is held in a settling tank where suspended particles are
allowed to settle to the bottom of the tank and the clarified
liquid is allowed to flow through.

 

 

SERVICE DELIVERY AGREEMENT
An agreement between two or more organs of state setting
out the terms and conditions and roles and responsibilities
regarding infrastructure delivery which promotes and facilitates
inter-institutional relations and the principles of participation,
cooperation and coordination.

 

 

SMALL MEDIUM MICRO ENTERPRISE
A business in which one or more of the following apply:
• fewer than 5 full-time employees
• an annual turnover of R150 000
• assets (excluding property) of R100 000

 

 

SPATIAL DEVELOPMENT FRAMEWORK
A spatial development framework (SDF) is the principal strategic
planning instrument, which guides and informs all planning
and development, and all decisions with regard to planning,
management and development in the municipality.

 

 

TENDER COMMITTEE
A committee who adjudicate the recommendation of the
evaluation committee.

 

 

UNPLANNED MAINTENANCE (IIMM)
Corrective work required in the short term to restore an asset to
working condition so that it can continue to deliver the required
service or to maintain its level of security and integrity.

 

 

UPGRADING
The replacement of an asset or addition/ replacement of an
asset component, which materially improves the original service
potential of the asset.

 

 

USEFUL LIFE (GRAP)
The useful life of an asset is the period over which an asset is
expected to be available for use by an entity or the number of
production or similar units expected to be obtained from the
asset by an entity.

 

 

VALUATION
Estimated asset value, which may depend on the purpose
for which the valuation is required, i.e. replacement value for
determining maintenance levels or market value for life cycle
costing.

 

 

VALUE FOR MONEY
The optimal use of resources to achieve intended outcomes.
WEIGHTED AVERAGE COST OF CAPITAL (WACC)
WACC is the combination of cost of debt capital, being the
interest rates for borrowing short-term and long-term debt, and
the opportunity cost of capital for equity, which is the risk-free
interest rate for equity funds on deposit.

 

 

WET WEATHER FLOW
Dry weather flow combined with groundwater infiltration and/
or stormwater runoff inflow in a sanitary sewer.

ASSET HIERARCHY (IIMM)
A framework for segmenting an asset base into appropriate
classifications. The asset hierarchy can be based on asset
function, asset type, or a combination of the two.

 

 

ASSET LIFE (ISO 55 000)
Period from asset creation to asset end of life.

 

 

ASSET MANAGEMENT (LGIAMG)
The process of decision making, planning and control over the
acquisition, use, safeguarding and disposal of assets to maximise
their service-delivery potential and benefits, and to minimise
their related risks and costs over their entire life.

 

 

ASSET MANAGEMENT INFORMATION SYSTEM (LGIAMG)
A combination of processes, data and software applied to
provide outputs needed to manage assets well.

 

 

ASSET MANAGEMENT OBJECTIVES (IIMM)
Specific outcomes required by implementing an asset
management system.

 

 

ASSET MANAGEMENT PLAN
A documented plan developed to manage one, or a portfolio of,
assets. It combines multidisciplinary management techniques
(including technical and financial) over the life cycle of the asset
in the most cost-effective way to provide a specified level of
service. The plan specifies approaches, programmes, projects,
activities, resources, responsibilities and time frames across
the life cycle of the asset(s) planned for, or over a time frame
appropriate for robust life-cycle planning.

 

 

ASSET MANAGEMENT PRACTICES (IIMM)
The asset management processes and techniques that an
entity undertakes, such as demand forecasting, developing and
monitoring levels of service and risk management.

 

 

ASSET MANAGEMENT STRATEGY (IIMM)
The high-level, long-term approach to asset management
including asset management action plans and objectives for
managing the assets.

 

 

ASSET MANAGEMENT SYSTEM (ISO 55 000)
A management system whose function it is to establish the
asset management policy and objectives, as well as processes
and organisational arrangements inclusive of structure, roles
and responsibilities to achieve asset management objectives.

 

 

BROWNFIELDS DEVELOPMENT
Development that is restricted by existing fixed structures, often
necessitating some extent of demolishment prior to starting the
intended construction.

 

 

CAPACITY (IIMM)
Maximum output that can be produced or delivered using the
existing network or infrastructure.

 

 

CAPITAL (FINANCIAL CONCEPT OF)
Net assets of an entity.

 

 

CAPITAL (PHYSICAL CONCEPT THEREOF)
The productive capacity of an entity as measured by the
optimised depreciated replacement cost method.

 

 

CAPITAL EXPENDITURE (CAPEX)
Expenditure used to create new assets, increase the capacity of
existing assets beyond their original design capacity or service
potential, or to return the service potential of the asset or
expected useful life of the asset to that which it had originally.
CAPEX increases the value of capital asset stock.

 

 

CAPITAL UPGRADING
Enhances the service potential of the asset or the economic
benefits that can be obtained from use of the asset and may
also increase the life of the asset beyond that initially expected.

 

 

CASH FLOW
The stream of costs and/or benefits over time resulting from a
project investment or ownership of an asset.

 

 

CHEMICAL OXYGEN DEMAND (COD)
A chemical oxygen demand test is commonly used to measure
indirectly the amount of organic compounds in water. Most
applications of COD determine the level of organic pollutants in
surface water (e.g. lakes and rivers) or wastewater, making COD
a useful measure of water quality.

 

 

COMPETENCE (ISO 55 000)
The ability to apply knowledge and skills to achieve intended
results.

 

 

CONTINUAL IMPROVEMENT (ISO 55 000)
Recurring activity to enhance performance.

 

 

CORRECTIVE MAINTENANCE
Maintenance carried out after a failure has occurred and
intended to restore an item to a state in which it can perform
its required function. Corrective maintenance can be planned
or unplanned.

 

 

CRITICAL ASSETS (IIMM)
Those assets that are likely to result in a more significant
financial, environmental and social cost in terms of their impact
on organisational objectives and service delivery.

 

 

CURRENT REPLACEMENT COST (IIMM)
The cost the entity would incur to acquire the asset on the
reporting date. The cost is measured by reference to the lowest
cost at which the gross future economic benefits could be
obtained in the normal course of business, or the minimum
it would cost to replace the existing asset with a new modern
equivalent asset with the same economic benefits, allowing
for any differences in the quantity and quality of output and in
operating costs.

 

 

CUSTOMER DATABASE
A database of all customers within the municipality. Each line
in the database describes some form of geography (a building,
land parcel, or a census sub place), each column in the database
describes some attribute of the customer.

 

 

CUSTOMER PROFILE
A summarised version of the customer database, quantifying
the number of customers for a specific geographic area.

 

 

DEAL BREAKER
A non-negotiable policy or other requirement (e.g. minimum
performance standard or condition level of an asset) that must
be adhered to.

 

 

DECOMMISSIONING (IIMM)
Actions required to take an asset out of service.

 

 

DEFECT
Non-conformity of a part or component of the works to a
requirement specified in terms of a contract.

 

 

 

 

DISAGGREGATE
Break down into separate parts or entities.

 

 

DISCOUNTED CASH FLOW
A technique to convert cash flows that occur over time to
equivalent amounts at a common point in time. It is the process
of finding present values, which is the inverse of compounding
interest.

 

 

DISCOUNT FACTOR
A rate or factor used to relate present and future money values.
Also referred to as the discount rate, hurdle rate, required return,
cost of capital or opportunity cost. For the purposes of this
Toolkit the discount factor in formulae is denoted with an “r”.

 

 

DESIGNATED PERSON
A person who assists the appointed municipal manager, chief
executive or delegated person to perform his or her functions
effectively.

 

 

DISPOSAL (IIMM)
Actions necessary to decommission and dispose of assets that
are no longer required.

 

 

DRY WEATHER FLOW
Flow in a sanitary sewer during periods of dry weather in which
the sanitary sewer is under minimum influence of stormwater
runoff inflow and groundwater infiltration.

 

 

EARLY CONTRACTOR INVOLVEMENT
Early contractor involvement is an approach to contracting that
supports improved team performance and planning to deliver
value for money.

 

 

ECONOMIC LIFE (IIMM)
The period from acquiring the asset to the time when the asset,
while physically able to provide a service, ceases to be the
lowest cost alternative to satisfy a particular level of service. The
economic life is at the maximum when equal to the physical life,
however obsolescence will often ensure that the economic life
is less than the physical life.

 

 

EMPLOYER
Organ of state intending to or entering into a contract with a
contractor.

 

 

GATEWAY REVIEW
An independent review of the available information at a gate
upon which a decision to proceed or not to the next process is
based.

 

 

GEOGRAPHIC INFORMATION SYSTEM (GIS)
Software that provides a means of spatially viewing, searching,
manipulating and analysing an electronic database.

 

 

GREENFIELDS DEVELOPMENT
Development that is unconstrained by existing fixed structures.

 

 

GREEN DROP REPORT
An incentive-based regulation as a means to identify, reward,
ensure and encourage excellence in wastewater management.

 

 

IMPACT
Impacts are effects that either positively contribute to an
outcome or strategic objective, such as increased revenue, or
that reduce risks such as environmental disasters, workplace
injuries, loss of property, or damage to the reputation or image
of the organisation.

 

 

IMPAIRMENT
The loss of future economic benefits or service potential of an
asset over and above the systematic recognition of the loss of
the asset’s future economic benefits or service potential through
depreciation.

 

 

IMPAIRMENT LOSS (GRAP)
An impairment loss of a cash-generating asset or a non-cash-
generating asset is the amount by which the carrying amount
of an asset exceeds its recoverable amount.

INCIDENT (ISO 55 000)
Unplanned event or occurrence resulting in damage or other
loss.

 

 

INDICATORS (IN MULTICRITERIA ANALYSIS)
The criteria used to measure a broad range (e.g. financial,
economic, social and environmental) outcomes of a project in
a multicriteria analysis.

 

 

INVESTMENT COSTS
The initial capital investment plus any intermittent capital
expenditure required to achieve the project outcomes.

 

 

KEY PERFORMANCE INDICATOR (KPI)
Set of quantifiable measures that an industry uses to gauge
or compare performance in terms of meeting strategic and
operational goals.

 

 

LAND ASSEMBLY
The process of packaging land to the point that it can be used
for its intended function. One of the most important steps in
this process is ensuring that all necessary land rights are in place
before development can commence.

 

 

LEVEL OF SERVICE (IIMM)
Levels of service statements describe the outputs or objectives
an entity intends to deliver to customers.

 

 

LIFE
A measure of the anticipated life of an asset or component, such
as time, number of cycles, distance intervals etc. over which
benefits are derived from the use or availability of an asset.

 

 

LIFE CYCLE (IIMM)
The time interval that commences with the identification of the
need for an asset and terminates with the decommissioning of
the asset or any liabilities thereafter.

 

 

LIFE CYCLE ASSET MANAGEMENT
Encompasses all asset management strategies and practices
associated with an asset or group of assets that result in the
lowest life cycle cost necessary to achieve stated service
requirements within acceptable risk parameters.

 

 

LIFE CYCLE COST (IIMM)
The total cost of an asset throughout its life including planning,
design, construction, acquisition, operation, maintenance,
renewal and disposal costs.

 

 

MAINTENANCE STRATEGY
Interprets higher-order documents and formulates maintenance
objectives and targets, establishes maintenance tactics, and
defines maintenance roles and responsibilities.

 

 

MAJOR CAPITAL PROJECT
An infrastructure project or a series of interrelated infrastructure
projects on a single site having an estimated cost, including
those required for new facilities or systems to become fully
operational, above a prescribed threshold.

 

 

MATERIAL (GRAP)
Omissions or misstatements of items are material if they could,
individually or collectively, influence the decisions or assessments
of users made on the basis of the financial statements.
Materiality depends on the nature or size of the omission or
misstatement judged on the surrounding circumstances. The
size of the information item, or a combination of both, could be
the determining factor.

 

 

MEMBRANE BIOREACTOR (MBR)
Membrane bioreactor is the combination of a membrane
process like microfiltration or ultrafiltration with a suspended
growth bioreactor, and is now widely used for municipal and
industrial wastewater treatment.

 

 

METROPOLITAN MUNICIPALITY: A Category A municipality
as provided for in section 155 of the Constitution of the Republic
of South Africa, 1996.

 

 

MODERN EQUIVALENT ASSET (IIMM)
The most cost-efficient asset currently available, which will
provide equivalent functionality to the asset that will be replaced
(or is currently being valued using the DRC methodology).

 

 

MONITORING (ISO 55000)
Determining the status of a system, a process or an activity.

 

 

MONOCENTRIC CITY
A city structure with one dominant core, typically the Central
Business District (CBD), which is the hub of economic activity
and employment in the city.

 

 

OPERATION
Combination of all technical, administrative and managerial
actions, other than maintenance actions, that results in the item
being in use.

 

 

OPPORTUNITY COST
The cost of cash flows that could have been earned in the best
alternative investment opportunity.

 

 

OPTIMISED DECISION MAKING (IIMM)
Two definitions are:
• A formal process to identify and prioritise all potential
solutions with consideration of financial viability, social and
environmental responsibility and cultural outcomes
• an optimisation process for considering and prioritising all
options to rectify existing or potential performance failure
of assets. The process encompasses NPV analysis and risk
assessment.

 

 

ORDER
An instruction to provide goods, services or any combination
thereof under a framework agreement

 

 

OUTLINE SPECIFICATIONS
Preliminary set of specifications (generated during the early
phases of a design process) on which detailed specifications are
based.

 

 

PACKAGE
Work which is grouped together for delivery under a single
contract or an order.

 

 

PERFORMANCE (ISO 55 000)
Measurable result of either a quantitative or qualitative nature
that can relate to the management of activities, processes,
products or services, systems or entities.

 

 

PERFORMANCE MEASURE (IIMM)
A qualitative or quantitative measure used to measure actual
performance against a standard or other target. Performance
measures are used to indicate how the entity is doing in relation
to delivering levels of service.

 

 

PERFORMANCE MONITORING
Continuous or periodic quantitative and qualitative assessments
of the actual performance compared with specific objectives,
targets or standards.

 

 

PROCUREMENT DOCUMENTATION COMMITTEE
A committee that compiles procurement documentation as per
the services specifications.

 

 

PROCUREMENT STRATEGY Selected packaging, contracting,
pricing and targeting strategy and procurement procedure for a
particular procurement.

 

 

PROFESSIONAL SERVICE PROVIDER (PSP)
Any person or body corporate who provides on a fiduciary basis,
labour and knowledge based expertise which is applied within
reasonable skill, care and diligence to the municipality, and is,
appointed by the municipality to undertake an assignment for
the provision of professional services.

 

 

PROGRAMME
The grouping of a set of related projects in order to deliver
outcomes and benefits related to strategic objectives which
would not have been achieved had the projects been managed
independently.

 

 

PROJECT
A project can be defined as:
• an unique set of coordinated and controlled processes and
activities;
• undertaken to achieve a specific objective(s) according to
specifications;
• within a defined timeframe (start and end dates);
• that consume resources (e.g. funds, labour, materials and
equipment); and
• is confined by a control budget.

 

 

PROPERTY, PLANT AND EQUIPMENT (PPE) (GRAP)
Property, plant and equipment are tangible items that: (a) are
held for use in the production or supply of goods or services,
for rental to others, or for administrative purposes; and (b) are
expected to be used during more than one reporting period.

 

 

RENEWAL
Expenditure on an existing asset that returns the service
potential of the asset or expected useful life of the asset to that
which it had originally.

 

 

Note 1: Renewal can include works to replace existing assets
or facilities with assets or facilities of equivalent capacity or
performance capability.

 

 

Note 2: Expenditure on renewals is funded through the entity’s
capital budget, and such expenditure is recognised in the entity’s
Statement of Financial Position.

 

 

REPAIR
Physical action taken to restore the required function of a faulty
item.

 

 

REPLACEMENT CASH FLOW DECISION
Cash flows to be determined for the replacement of an existing
asset, where the investment analyst must find the incremental
cash outflows and inflows that will result from the replacement.

 

 

RESIDUAL VALUE
The estimated value of an asset at the end of its useful life, or the
value that remains at the end of the analysis period where the
asset useful life exceeds the analysis period. The residual value
is considered as a benefit (cash inflow) in the final year of the
analysis period.

 

 

RETENTION SUM
Sum retained for a certain period to offset costs which may arise
from the contractor’s failure to comply fully with the contract.

 

 

RISK (IIMM)
The effect of uncertainty on objectives. Risk events are events
that may compromise the delivery of the entity’s strategic
objectives.

 

 

RISK CONTROLS (IIMM)
Measures to manage or mitigate identified risks.

RISK EXPOSURE (IIMM)
The level of risk to which an entity is exposed. Risk exposure is
a function of the probability of an occurrence times the impact
of that occurrence.

 

 

SPATIAL PLANNING
Spatial planning is a process of place shaping and delivery. It
is about the management of space and development in order
to create better places, responding to the needs of society,
the economy and the environment. Spatial planning systems
are the methods used by the public sector to influence the
distribution of people and activities in spaces of various scales.
Discrete professional disciplines, which involve spatial planning
include land use, urban, regional, transport and environmental
planning.

 

 

STAGE
A collection of logically related activities in the infrastructure
delivery cycle that culminates in the completion of a major
deliverable.

 

 

STATEMENT OF FINANCIAL PERFORMANCE
The Statement of Financial Performance, also known as an
income statement, shows the revenue and expenses of an entity
over a period of time.

 

 

STATEMENT OF FINANCIAL POSITION
The Statement of Financial Position, also known as the balance
sheet, presents the financial position of an entity at a given
date. The statement comprises three main components, these
being assets, liabilities and equity, and gives users of financial
statements insight into the financial soundness of an entity in
terms of liquidity risk, financial risk, credit risk and business risk.

 

 

STATUTORY PERMISSION
Any relevant approval, consent or permission in terms of any
legislation required to plan and deliver the infrastructure.

 

 

SUNK COSTS
Cash outlays already made (past expenditures) that therefore
have no effect on the cash flows relevant to the current
investment decision. As a result sunk costs should be excluded
from a project’s incremental cash flows in a replacement cash
flow investment decision.

 

 

TARGET CONTRACT
A cost reimbursement contract in which a preliminary target
cost is estimated and on completion of the work the difference
between the target cost and the actual cost is apportioned
between the parties to the contract on an agreed basis.

AADDAnnual average daily demand
ABEAffirmable business enterprise
ACActual cost
AFSAnnual financial statements
AMAsset management
AMPAsset management plan
ARAsset register
BACBudget at completion
BCABenefit-cost analysis
BNRBiological nutrient removal
CAPEXCapital expenditure
CBDCentral business district
CCTVClosed circuit television camera
CGCondition grade
CIDBConstruction Industry Development Board
CIIPCity integrated infrastructure plan
CIPDPCity infrastructure programme delivery plan
CO2Carbon dioxide
CODChemical oxygen demand
CPICost performance index
CPSConstruction procurement strategy
CRCCurrent replacement cost
CSIRCouncil for Scientific and Industrial Research
CVCost variance
DCFDiscounted cash flow
DEADepartment of Environmental Affairs
DORADivision of Revenue Act
DPRNDepreciation
DRCDepreciated replacement cost
DRDLRDepartment of Rural Development and Land Reform
DUDwelling unit
DWFDry weather flow
DWSDepartment of Water and Sanitation
EACEstimate at completion
ECCNEC3 Engineering and Construction Contract
ECIEarly contractor involvement
ECSAEngineering Council of South Africa
ECSCNEC3 Engineering and Construction Short Contract
EIAEnvironmental impact assessment
EPWPExpanded Public Works Programme
ETCEstimate to completion
EULExpected useful life
EVEarned value
EVMEarned value management
FARFinancial asset register
MVAMegavolt-Ampere (unit of electrical power)
MWAJBCC Minor Works Agreement
NEMANational Environmental Management Act, No. 107 of 1998
NDGNeighbourhood Development Grant
NDPNational Development Plan – 2030
NECNew Engineering Contract
NTNational Treasury
O&MOperations and maintenance
OPEXOperating expenditure
PBAJBCC Principal Building Agreement
PCPercentage complete
PVPlanned value A metric used in project management performance measurement

Present value Relates to the time value of money in investment appraisal

PPEProperty, plant and equipment
PPPPublic private partnership
PSCNEC3 Professional Services Contract
PSIPublic service industries
PSPProfessional service provider
PSSCNEC3 Professional Services Short Contract
PSTPrimary settling tank
QAQuality assurance
RRand
RCMReliability-centred maintenance
RDBMSRelational database management system
ROAReturn on assets
RULRemaining useful life
RVResidual value
SAICESouth African Institute of Civil Engineering
SANRALSouth African National Roads Agency
SANSSouth African National Standard
SCNEC3 Supply Contract
SCMSupply chain management
SCOAStandard Chart of Accounts
SDBIPService delivery and budget improvement plan
SDFSpatial development framework
SGSurveyor General
SIPDPSector infrastructure programme delivery plan
SSCNEC3 Supply Short Contract
SSTSecondary settling tank
SLAService level agreement
SMMESmall medium micro enterprise
SPLUMASpatial Planning and Land Use Management Act No. 16 of 2013
SPSCCIDB Standard Professional Service Contract
FIDICInternational Federation of Consulting Engineers
FMECAFailure modes, effects and criticality analysis
FYFinancial year
FYTDFinancial year to date
GCCSAICE General Conditions of Contract for Construction Works
GDPGross domestic product
GDSGrowth and development strategy
GFMAMGlobal Forum for Maintenance and Asset Management
GFSGovernment financial statistics
GISGeographic information system
GLGeneral ledger
GRAPGenerally recognised accounting practice
GVAGross value add
HAHectare
IAMInfrastructure asset management
IAMPInfrastructure asset management (also see AMP)
IASInternational Accounting Standards
ICDGIntegrated Cities Development Grant
ICEInstitution of Civil Engineers
ICTInformation and communication technology
IDMSInfrastructure delivery management system
IDPIntegrated development plan
IIMMInternational Infrastructure Management Manual
IRRInternal rate of return
ISOInternational Standards Organisation
ITInformation technology
JBCCJoint Building Contracts Committee
KlKilolitre
KMKilometre
KWHKilowatt per hour
KPIKey performance indicators
LEDLocal economic development
LGIAMGLocal Government Infrastructure Asset Management Guidelines
LOSLevel of service
M2Square metre
MBRMembrane bioreactor
MCAMulti-criteria analysis
MEAModern equivalent asset
MFMAMunicipal Finance Management Act, No. 56 of 2003
MIGMunicipal Infrastructure Grant
MSCOAMunicipal standard chart of accounts
MTREFMedium-Term Revenue and Expenditure Framework
SPISchedule performance indicator
SVSchedule variance
TSCNEC3 Term Service Contract
TSSCNEC3 Term Service Short Contract
UFWUnaccounted for water
VVolt (unit of electrical potential)
VACVariance at completion
VARValuation asset register
VIPVentilated improved pit toilet
WACCWeighted average cost of capital
WBSWork breakdown structure
WSPWater service provider
WTWWater treatment works
WWFWet weather flow
WWTWWaste-water treatment works