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.
AADD | Annual average daily demand |
ABE | Affirmable business enterprise |
AC | Actual cost |
AFS | Annual financial statements |
AM | Asset management |
AMP | Asset management plan |
AR | Asset register |
BAC | Budget at completion |
BCA | Benefit-cost analysis |
BNR | Biological nutrient removal |
CAPEX | Capital expenditure |
CBD | Central business district |
CCTV | Closed circuit television camera |
CG | Condition grade |
CIDB | Construction Industry Development Board |
CIIP | City integrated infrastructure plan |
CIPDP | City infrastructure programme delivery plan |
CO2 | Carbon dioxide |
COD | Chemical oxygen demand |
CPI | Cost performance index |
CPS | Construction procurement strategy |
CRC | Current replacement cost |
CSIR | Council for Scientific and Industrial Research |
CV | Cost variance |
DCF | Discounted cash flow |
DEA | Department of Environmental Affairs |
DORA | Division of Revenue Act |
DPRN | Depreciation |
DRC | Depreciated replacement cost |
DRDLR | Department of Rural Development and Land Reform |
DU | Dwelling unit |
DWF | Dry weather flow |
DWS | Department of Water and Sanitation |
EAC | Estimate at completion |
ECC | NEC3 Engineering and Construction Contract |
ECI | Early contractor involvement |
ECSA | Engineering Council of South Africa |
ECSC | NEC3 Engineering and Construction Short Contract |
EIA | Environmental impact assessment |
EPWP | Expanded Public Works Programme |
ETC | Estimate to completion |
EUL | Expected useful life |
EV | Earned value |
EVM | Earned value management |
FAR | Financial asset register |
MVA | Megavolt-Ampere (unit of electrical power) |
MWA | JBCC Minor Works Agreement |
NEMA | National Environmental Management Act, No. 107 of 1998 |
NDG | Neighbourhood Development Grant |
NDP | National Development Plan – 2030 |
NEC | New Engineering Contract |
NT | National Treasury |
O&M | Operations and maintenance |
OPEX | Operating expenditure |
PBA | JBCC Principal Building Agreement |
PC | Percentage complete |
PV | Planned value A metric used in project management performance measurement
Present value Relates to the time value of money in investment appraisal |
PPE | Property, plant and equipment |
PPP | Public private partnership |
PSC | NEC3 Professional Services Contract |
PSI | Public service industries |
PSP | Professional service provider |
PSSC | NEC3 Professional Services Short Contract |
PST | Primary settling tank |
QA | Quality assurance |
R | Rand |
RCM | Reliability-centred maintenance |
RDBMS | Relational database management system |
ROA | Return on assets |
RUL | Remaining useful life |
RV | Residual value |
SAICE | South African Institute of Civil Engineering |
SANRAL | South African National Roads Agency |
SANS | South African National Standard |
SC | NEC3 Supply Contract |
SCM | Supply chain management |
SCOA | Standard Chart of Accounts |
SDBIP | Service delivery and budget improvement plan |
SDF | Spatial development framework |
SG | Surveyor General |
SIPDP | Sector infrastructure programme delivery plan |
SSC | NEC3 Supply Short Contract |
SST | Secondary settling tank |
SLA | Service level agreement |
SMME | Small medium micro enterprise |
SPLUMA | Spatial Planning and Land Use Management Act No. 16 of 2013 |
SPSC | CIDB Standard Professional Service Contract |
FIDIC | International Federation of Consulting Engineers |
FMECA | Failure modes, effects and criticality analysis |
FY | Financial year |
FYTD | Financial year to date |
GCC | SAICE General Conditions of Contract for Construction Works |
GDP | Gross domestic product |
GDS | Growth and development strategy |
GFMAM | Global Forum for Maintenance and Asset Management |
GFS | Government financial statistics |
GIS | Geographic information system |
GL | General ledger |
GRAP | Generally recognised accounting practice |
GVA | Gross value add |
HA | Hectare |
IAM | Infrastructure asset management |
IAMP | Infrastructure asset management (also see AMP) |
IAS | International Accounting Standards |
ICDG | Integrated Cities Development Grant |
ICE | Institution of Civil Engineers |
ICT | Information and communication technology |
IDMS | Infrastructure delivery management system |
IDP | Integrated development plan |
IIMM | International Infrastructure Management Manual |
IRR | Internal rate of return |
ISO | International Standards Organisation |
IT | Information technology |
JBCC | Joint Building Contracts Committee |
Kl | Kilolitre |
KM | Kilometre |
KWH | Kilowatt per hour |
KPI | Key performance indicators |
LED | Local economic development |
LGIAMG | Local Government Infrastructure Asset Management Guidelines |
LOS | Level of service |
M2 | Square metre |
MBR | Membrane bioreactor |
MCA | Multi-criteria analysis |
MEA | Modern equivalent asset |
MFMA | Municipal Finance Management Act, No. 56 of 2003 |
MIG | Municipal Infrastructure Grant |
MSCOA | Municipal standard chart of accounts |
MTREF | Medium-Term Revenue and Expenditure Framework |
SPI | Schedule performance indicator |
SV | Schedule variance |
TSC | NEC3 Term Service Contract |
TSSC | NEC3 Term Service Short Contract |
UFW | Unaccounted for water |
V | Volt (unit of electrical potential) |
VAC | Variance at completion |
VAR | Valuation asset register |
VIP | Ventilated improved pit toilet |
WACC | Weighted average cost of capital |
WBS | Work breakdown structure |
WSP | Water service provider |
WTW | Water treatment works |
WWF | Wet weather flow |
WWTW | Waste-water treatment works |
Infrastructure Asset Management, Fleet and Transport
Manager Maintenance Planning : City Power
Contact Information
072 444 6847
ehiggins@citypower.co.za
PROFESIONAL REGISTRATIONS
Certified Asset Management Assessor (CAMA)
South African Institute of Electrical Engineers (SAIEE)
South African Asset Management Association (SAAMA)
BIO:
My career started in the field of Industrial Engineering, concerned with the optimisation of systems and processes. I then furthered my career in the field of Contracts, Purchasing and Project Management. After that I managed the Fleet and Transport Department at City Power. I formed part of a team initiating the outsourcing contract for the City of Johannesburg Fleet. Following that, I managed the Maintenance Planning team at City Power where we developed systems for the optimisation of the Infrastructure Asset Life Cycle processes. It is here where my involvement started as a COJ Asset Management Workgroup member of the “Cities Infrastructure Delivery and Management System” (CIDMS).
Asset Management, Property Management & valuations
Director : i @ Consulting
Contact Information
082 874 2469
erina@iatconsulting.co.za
PROFESIONAL REGISTRATIONS
Certified Asset Management Assessor (CAMA)
Project Management Professional (PMP)
Professional GISc Practitioner
BIO:
Erina holds a MSc Real Estate and a Graduate Diploma in Asset Management, and she’s a Certified Asset Management Assessor. She continues to support metropolitan and local municipalities with asset management practice appraisals and asset management improvement plans, asset management policies, the preparation of fully componentized asset registers using a variety of valuation methods, and she authored sectoral asset management plans.
As a Professional Geomatics Practitioner, Erina is seasoned in advanced built environment modelling and analysis, including the preparation of spatially-based customer profiles, undertaking advanced spatial accessibility analysis to determine access to municipal services and the optimal location of facilities.
Erina is also a Project Management Professional and has performed a variety of project and information management roles within a diverse range of sectors such as Asset Management, Real Estate, Transportation, Agriculture, Energy, and Planning and Development. These included high visibility projects such as data coordination for the 2010 Soccer World Cup project for the cities of Johannesburg and Tshwane, as well as the Transport Master Plan for South Africa.
She has also been involved in spatial development plans, urban regeneration strategies, urban design and feasibility analysis, master plans, environmental plans, built environment performance plans and valuation rolls.
Engineering
Acting GM Asset Management: City Power
Contact Information
083 279 6245
nsoya@citypower.co.za
BIO:
I have 15 years’ experience in the laboratory environment, managing laboratory activities, having specialised mostly in Transformer oil analysis. I am currently acting General Manager Asset Management. My interests in Asset Management is to understand the process of managing network assets with clear policies and procedures that deliver quality services in consultation with other stakeholders and support the business by ensuring efficient and effective management of network assets.
MODULE PURPOSE
This module describes the enablers that need to be implemented to ensure a well-functioning cities infrastructure delivery and management system that meets stakeholder expectations, deliver value-for-money, and promotes and facilitates continuous learning and improvement. These enablers are:
1. Asset management leadership and teams
2. Asset management plans
3. Asset management information systems
4. Service provision models
5. Audit, review and improvement
Climate Resilience Component Specialist
Lead: Climate Resilience Component: National Treasury
Contact Information
083 564 6061
anthea.stephens@treasury.gov.za
anthea.stephens@gmail.com
BIO:
I lead the CSPs component on Climate Resilience. The extent to which metro assets are responding to climate impacts in terms of both their resilience to impact and contribution to a low carbon development are of interest.
Asset management follows a risk-based approach to realise value from assets, by managing risk and opportunity to achieve the desired balance between cost, risk and performance. As such the consideration of risk, in relation to performance and cost, carries through in all asset management decisions and activities. Risk comes in many forms, some examples of which are shown below:
The above table shows that there are both asset and non-asset risks related to the delivery of services. Asset management concerns itself with both the risks and performance of (1) asset portfolios and (2) the AM system itself.
A robust asset management system follows a structured approach to the identification, assessment and management of both asset and non-asset risks. As a general approach, asset-related risks are identified and assessed using the failure mode, effects and criticality analysis (FMECA) method, described in Section 3.3.5. Assets are also rated in terms of criticality and managed accordingly; this is also dealt with in Section 3.3.5.
Performance monitoring and improvement ensures that the city achieves objectives established for the AM system and for assets. It requires that outputs and outcomes are specified and monitored (see Figure 2.4). Performance monitoring is not a static reporting function. The AM system demands two more functions of performance monitoring and improvement. The first of these is feedback from performance monitoring, focused on continuous improvement in AM practice within the current framework of AM policy, plans and procedures. The second is strategic review, which may indicate that to improve performance, changes are required to the AM policy, procedure, strategy or AM plans.
THE AM SYSTEM SHOULD BE PERIODICALLY AUDITED, FOR THE FOLLOWING REASONS:
An audited opinion stating that a city has a well performing AM system provides assurance to the investor and regulatory communities that funding applications have been well thought through, that investments will deliver net benefits, and that a city is able to both deliver value from assets and to care for those assets. A favourable audit opinion, and the assurance it provides, reduces risks to investors that may result in higher uptake rates in municipal bonds issued, or more favourable lending conditions for cities.
Communities and other stakeholders have an interest in knowing that city assets are well managed. City assets represent community wealth, effectively held in trust by the metropolitan municipality on behalf of the community as a whole. Communities, who pay rates and tariff s, invest in community assets and expect those assets to benefit them. An audited opinion on the performance of the asset management system supports the principles of good governance and transparency, and provides the community and other stakeholders with the assurance that management systems appropriate to the scope, scale and complexity of assets are in place, and performing well.
An independent audit provides an objective assessment of the appropriateness and performance of the asset management system, and confirms that the AM practices (system) improvement plan of the city pursues levels of practice appropriate to the scope and complexity of assets, and the demands of regulation and customers. It provides management with the opportunity to refl ect on past, current and future performance, and to identify scope for further improvements.
MODULE PURPOSE
This module describes the infrastructure delivery management framework applicable to municipalities and municipal entities.Specifically, this module:
1. Describes the control framework for infrastructure delivery management, based on the National Treasury Standard for Infrastructure Procurement and Delivery Management (SIPDM); and
2. Provides guidance with respect to the infrastructure delivery management process.
MODULE PURPOSE
This module describes the infrastructure procurement system applicable to municipalities, inclusive of infrastructure contracts and contract management. Specifically, this module:
1. Describes the control framework for infrastructure procurement, based on the National Treasury Standard for Infrastructure Procurement and Delivery Management (SIPDM); and
2. Provides guidance with respect to the infrastructure procurement process.
MODULE PURPOSE
The asset management system articulated in Module 2, and the asset management processes described in Modules 3 – 8, identify lifecycle delivery actions to be actioned to achieve stated asset management objectives. This CIDMS Toolkit advocates robust lifecycle planning as a prerequisite for meeting asset management objectives, to ensure value-for-money infrastructure delivery. Accordingly, cities should prepare asset management plans and a strategic asset management plan which define required capital and operating lifecycle delivery actions over the short, medium and long term in the form of projects and programmes. This module:
1. Describes the infrastructure delivery management system through which capital and operating lifecycle delivery actions are implemented, based on the National Treasury Standard for Infrastructure Procurement and Delivery Management (SIPDM);
2. Presents the control frameworks for infrastructure delivery management and infrastructure procurement;
3. Defines projects and programmes, and provides guidance related to the packaging of these; and
4. Addresses governance arrangements.
MODULE PURPOSE
This module provides tools and techniques for project design, infrastructure investment appraisal, project financial planning and the prioritisation of capital projects for inclusion in the capital budget.
MODULE PURPOSE
This module describes how the life-cycle plans prepared in Module 6 inform the preparation of asset management plans (AMPs) per sector and how these inform the preparation of the Strategic Asset Management Plan (SAMP) for the city.
MODULE PURPOSE
This module describes how asset data models and profiles prepared in line with Module 3 are used and further developed to determine the short, medium and long term life-cycle needs and inform progressively optimised responses per sector that respond to city developmental themes. These in turn inform the preparation of sector asset management plans that are the focus of Module 7.
MODULE PURPOSE
This module focuses on estimating future demand and on managing demand in such a way that economic optimisation is achieved, that the city’s spatial agenda is supported and services are delivered when required, that scarce natural resources are well-managed, and that the city’s assets and services are configured to the adaptations required by climate change. This module strongly advocates the adoption of green infrastructure technologies where appropriate to support the transition to a low carbon environment, and to reduce the consumption of non-renewable resources.
MODULE PURPOSE
This module provides the means for identifying, locating and quantifying municipal customers, and for profiling such customers in terms of key built environment planning attributes such as land use type, density and income levels. This module also provides levels and standards of service options for infrastructure and community services as a basis for engaging with customers on appropriate service packages, for profiling the current state of service provision, for quantifying service access backlogs, and to estimate current and future demand.
Additionally, this module provides guidance on the type and location of social amenities to be provided in urban spaces to support spatial objectives such as densification and the strengthening of identified spatial structuring elements (e.g. nodes and corridors).
MODULE PURPOSE
An asset management system comprises the people, policies, processes, plans and information to deliver value from assets. This module:
Key elements of the module are:
1. Describes the scope, content and requirements of a city asset management system;
2. Provides the means for identifying internal and external stakeholders who establish requirements for the asset management system;
3. Defines an asset management policy, states its purpose as providing the principles according to which asset management objectives are established, and that the asset management system and assets must respond to, states requirements for an asset management policy, provides guidance for developing such a policy, and attends to matters relating to policy approval; and
4. Describes requirements for and the elements of asset management strategy. The asset management strategy contains asset management objectives for both the asset management system and assets, as well as strategies for delivering on these objectives. The asset management strategy is presented in the city’s strategic asset management plan.
MODULE PURPOSE
This module presents an analysis of urban challenges and expectations for cities and their pivotal role in the economic and social development of South Africa, through considered infrastructure delivery and management in the context of the spatial reform agenda. It also describes the unique value that this toolkit offers in supporting cities to meet these challenges, using the Cities Infrastructure Delivery and Management System (CIDMS) that is founded on best practice and tailored for unique application in the South African urban environment.
Key elements of the module are:
1. Infrastructure investments, the delivery of infrastructure and the management of infrastructure assets and services need to support national policy and strategy relating to the development of the country. This module summarises key urban built environment strategies and highlights strategic objectives for urban infrastructure.
2. The strategic objectives for urban infrastructure serve as outcome areas that define the parameters for decision-making in city asset management systems, dealt with in Module 2 of this Toolkit.
MODULE PURPOSE
This module describes the asset data models that have been adopted as the foundation to implement the asset management system contemplated in Module 2. It identifies the scope of data required and provides the rationale for the structuring and nature of the models that have been adopted, and are to be applied consistently to all immoveable assets across the various sectors in the city. The data model underpins strategic, tactical and operational management.
Key elements of the module are:
1. A standardised asset and location hierarchy inter-alia defining how the portfolios are broken down to a consistent level of component detail at which the modelling takes place, and is also used to roll-up data for planning and reporting purposes;
2. A standardised scope and design of data attributes on each of the components that inform asset management processes;
3. Interpretation of data to inform cost, value, performance and risk profiling.
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The asset portfolio of even a small city is worth billions of Rands whilst in a larger metro the replacement value of asset portfolios can measure well over a hundred billion Rand. Most cities spend several billion annually to augment, renew, operate and maintain these portfolios. Since infrastructure assets typically have lifespans measured in decades, and in several instances, in generations, decisions made tend to lock in expenditure levels and patterns for a very long time. And because infrastructure assets have such long lives, deterioration patterns are not always evident until such time that a renewals bow wave hits a city.
Moreover, decisions on infrastructure directly affect the quality of life of citizens and the economic performance of the city. Informed decisions based on sound information is therefore highly desired. Furthermore, there are also legal requirements on the structure, quality, availability and reporting of asset information. GRAP, for example, demands that a municipality prepares and annually maintains and updates its asset register. This asset register is the subject of annual scrutiny by the Auditor General, and performance in this regard is a major cause of many municipalities receiving undesired audit outcomes.
To be effective, AM plans must be implemented through activities, projects and programmes across the lifecycle. Modules 9 to 11describes the Infrastructure Procurement and Delivery Management System (IPDM) for cities. It is through this system that the lifecycle activities, projects and programmes specified in the AM plans are actioned, services are delivered, assets optimised and AM objectives related to asset portfolios achieved.
The asset management system and asset portfolios must support the city strategy. Asset managers interpret city strategic objectives and undertake demand analysis to identify stakeholder requirements and then develop AM policy, objectives, strategy and plans to achieve city strategic objectives and to address stakeholder expectations.
THE HIERARCHY OF POLICIES & PLANS IN AN AM SYSTEM INCLUDES:
AM strategy and planning, and the delivery of those plans, together with other AM activities, require coordinated capability. The nature of capability required will depend on the AM objectives decided upon, and the service delivery model(s) agreed to deliver on AM objectives. Various service delivery models are available, ranging from full inhouse capacity through to outsourcing – these are discussed in Section 12.2.5. Regardless of the service delivery model(s) chosen, across lifecycle activities and asset portfolios the city will require AM capacity in the form of a dedicated AM unit and formal organisational roles, functions and processes. There are also likely to be suppliers of goods and services, and as these suppliers form part of the supply chain that ultimately delivers services to the city’s customers, they are considered part of the city’s AM capability. Module 12 provides guidance on AM capability development, inclusive of organisational arrangements, competency development and service delivery models.
ISO/SANS 55 000 defines a stakeholder as an individual or organisation that can affect or be affected by a decision or activity of the city. Note that the stakeholder does not actually need to be affected, but must only perceive to be affected, to be regarded as a stakeholder. Stakeholders are of critical importance to the AM system. They establish both needs and expectations (such as service delivery requirements) as well as constraints (whether regulatory constraints, customer affordability constraints or other constraints). Stakeholders include both external parties such as other spheres of government, the community and investors, as well as internal stakeholders, such as Council and employees. Stakeholders can be identified by any or a combination of the following means:
1. By way of supply/value chain analysis
2. Identification of stakeholders using the asset management landscape as reference
3. Identification of stakeholders by way of asset lifecycle analysis.
EXTERNAL STAKEHOLDERS INCLUDE THE FOLLOWING CATEGORIES:
Infrastructure Delivery Management, Civil Engineering, Project/Programme/Portfolio Management
CSP Infrastructure Delivery sub-component coordinator: Cities Support Programme
Contact Information
011 453 0733
083 324 3236
musap@akwethu.co.za
PROFESIONAL REGISTRATIONS
Registered with ECSA as a Pr Techni Eng – Civil
BIO:
I am a Civil Engineer by training with vast experience in government infrastructure delivery management and improvement. I have previously assisted a couple of provincial departments with the implementation of the Infrastructure Delivery Management System (IDMS). More recently, I have been coordinating the final stages of the development of the CIDMS leading up to its national launch.
Infrastructure asset management specialist
Managing director: i @ Consulting
Contact Information
012-001-0500
082 788 9132
louis@iatconsulting.co.za
PROFESIONAL REGISTRATIONS
Certified Senior Practitioner in Asset Management (CSAM)
Certified Maintenance and Reliability Professional (CMRP)
Certified Asset Management Assessor (CAMA)
Project Management Professional (PMP)
BIO:
Louis has won local and international awards for his contributions to the practice of infrastructure asset management. He is widely considered to be the foremost public sector infrastructure asset management specialist in South Africa. He was the main author of the CoGTA Local Government Infrastructure Asset Management Guidelines, he authored the National Immovable Asset Maintenance Management Standard, edited the National Immovable Asset Maintenance Management Planning Guidelines and is a contributing author of the International Infrastructure Management Manual. He is the project manager and lead developer of the Cities Infrastructure Delivery and Management System (CIDMS), for the National Treasury. The CIDMS is a fully SANS 55001 compliant system for cities that has been peer reviewed through the World Bank and considered to be representative of global best practice. For this, Louis received the SAAMA 2018 Project Award. He regularly serves as asset management policy advisor to National Government and entities such as the World Bank and the Financial and Fiscal Commission.