The minimum duration of a Maintenance Works Program is one financial year. Subject to financial considerations, agencies should, for reasons of efficiency and more effective planning and implementation, endeavour to have programs extending over more than one financial year.

In the development of Maintenance Works Programs, agencies should focus on service delivery obligations, maintenance priorities, allocation of resources and performance management.

The scheduling and control of maintenance work projects to implement the Maintenance Works Program is the responsibility of the maintenance service provider.

4.3.5 Maintenance Procurement

The provision of maintenance services is a non-core activity for all agencies other than the Department of Public Works. Agencies are required to enter into appropriate arrangements with the Department of Public Works or other maintenance service providers for the provision of maintenance services in accordance with government policy.

Arrangements for the delivery of maintenance services should be through Service Level Agreements or other appropriate instrument. These arrangements should include provisions to comply with the requirements of this Framework. Maintenance service providers should be prequalified organisations under the Prequalification of Contractors Scheme administered by the Department of Public Works.

The procurement of maintenance services should be done in accordance with the State Purchasing Policy and with due consideration for the following:

• opportunities for economy of scale in purchasing;
• employment opportunities and impact on regional areas of Queensland;
• efficiency and effectiveness;
• best practice and innovative use of technology; and
• value for money

4.3.6 Maintenance Information and Systems

To achieve consistency and to facilitate benchmarking and performance improvement, maintenance expenditure should be captured against the respective maintenance categories listed below. The degree to which such expenditure is recorded against the asset components and subsequently aggregated to the building/facility and portfolio level is subject to operational requirements (e.g. demand management and life cycle costing) and the cost benefits of doing so.

Maintenance Management Services

These services consist of:

• maintenance planning
• contract management
• condition assessment
• information and support services.

Maintenance Works Services

These services consist of:

• planned maintenance
• unplanned maintenance.

(refer to Table 4 - Maintenance Work Classification and Sub-Categories).

The maintenance of agencies’ building assets must be adequately supported by an efficient and effective Maintenance Management System to facilitate operational maintenance work scheduling and control, planning, resource allocation, program management and reporting.

Agencies should use the Centralised Maintenance Management System operated by Department of Public Works or other appropriate computerised maintenance management system for maintenance planning and implementation.

Technical and asset information necessary for maintenance should also be retained in an appropriate format/medium and protected as Government intellectual property.

Maintenance information recorded in information systems must meet:

• whole-of-government reporting requirements;
• agency requirements in order to make strategic asset management decisions; and
• operational requirements for maintenance implementation through maintenance service providers.

4.4 Maintenance Performance

Management processes should be established to monitor maintenance performance and a periodic review of maintenance performance should be undertaken by each agency.

The review should consider aspects relating to:

• maintenance service delivery performance;
• maintenance service quality performance;
• asset performance;
• maintenance management performance;
• maintenance cost performance; and
• tenant/occupier satisfaction.

4.5. Maintenance Reporting

The Queensland Building Information System (QBIS) is the primary repository of building information for whole-of-government purposes.

Agencies are required to provide maintenance information to QBIS through its information-transfer protocols.

The maintenance information to be provided by agencies to QBIS for whole-of-government reporting, risk management and performance monitoring purposes will consist of:

• Condition Index by building/facility;
• future maintenance by building asset/facility (refer to Policy Guideline on the Recording and Valuation of Non-current Assets);
• deferred maintenance by building/facility;
• Financial Year expenditure on Maintenance Management Services;
• Financial Year expenditure on Planned Maintenance; and
• Financial Year expenditure on Unplanned Maintenance.

5. Further Information

Further information on the Framework and maintenance may be obtained from:

Manager
Asset Management Advisory Branch
Department of Public Works
Tel: (07) 3224 5223
Fax: (07) 3224 4754
E-mail: AMAB@publicworks.qld.gov.au

Appendix

Maintenance and Deferred Maintenance

Maintenance in the context of this framework is defined as all work on existing building asset that is undertaken:

• to prevent deterioration and failure;
• to restore to correct operation within specified parameters;
• to restore physical condition to a specified standard;
• to recover from structural and services failure;
• to obtain accurate and objective knowledge of physical and operating condition including risk and financial impact for the purpose of maintenance; and
• partial equivalent replacement of components of the asset.

Work excluded from maintenance includes:

• improvements and upgrading to meet new service capacity or function;
• refurbishment to new condition to extend the capacity or useful life of the asset;
• capital replacement of major components to extend the capacity or useful life of the asset;
• upgrading to meet new Statutory requirements;
• operational tasks to enable occupancy and use (e.g. cleaning, security, waste removal);
• supply of utilities (energy, water and telecommunications);
• construction of new assets; and
• major restoration as a result of natural and other disasters.

The definition to be used by Agencies in identifying and reporting to DPW on Deferred Maintenance is as follows.

Deferred Maintenance is defined as essential maintenance work that has not been carried out within a reporting period and which is deemed necessary to bring the condition of the asset up to a standard or acceptable level of risk that will enable the required operating capacity of the asset to continue.

Deferred Maintenance excludes:

• newly identified maintenance work which can be deferred without affecting function and level of risk;
• maintenance work scheduled from previous years which can be rescheduled without affecting function and level of risk; and
• non-maintenance work.

Deferred maintenance should be re-evaluated at least annually in terms of priority and considered for inclusion in Maintenance Work Programs as part of the Maintenance Planning process.

Contact

Manager
Asset Management Advisory Branch
Department of Public Works
Tel: (07) 3224 5223
Fax: (07) 3224 4754
E-mail: AMAB@publicworks.qld.gov.au

Scope of Building Maintenance

1.0 Purpose of this paper

The Maintenance Management Framework (MMF) was approved by the Government on 28 June 1999 with implementation taking effect from 1 July 1999. The MMF has established a framework for the maintenance of Queensland Government buildings to ensure consistency in the planning, implementation and reporting of maintenance.

The purpose of this paper is to establish a uniform guideline that will assist agencies to identify the assets that are to be classified as buildings and to ensure that building maintenance is reported accordingly.

Consistency in reporting is an important aspect of the MMF as it allows agencies and government to monitor, benchmark and improve performance. Agencies are encouraged to implement this guideline to ensure consistency is achieved within their own operations and across government. Both agencies and government will have confidence in the accuracy of building maintenance information if data has been captured in a uniform manner.

2.0 Scope

This paper defines building assets for the purposes of the MMF. It helps to distinguish the components which form part of a building from those parts which do not. There may be areas in which sharp lines of demarcation are not feasible and a degree of objective interpretation would be required. Guidance is also provided in this paper in relation to some activities which may be considered as building maintenance, as distinct from building operations.

3.0 Building Assets

This section focuses on the physical assets that are to be considered as buildings. A building is defined as any roofed structure enclosing space and intended for use as a shelter (for people, animals, or property) or for recreational, industrial, commercial or other functions. It includes all Class I to Class X buildings as set out in the Building Code of Australia.

In terms of the MMF, maintenance of building-related assets such as service facilities, site improvements and any temporary buildings that provide facilities for storage or shelter, is to be reported under building maintenance.

For the purpose of maintenance, buildings and building-related assets (collectively referred to in this paper as ‘buildings’) are broken down to component levels.

Non-building assets are shown as exceptions under the relevant section. These are highlighted in italics for ease of identification. Non-building assets should also be maintained, but are not to be considered as part of buildings. Costs should be assigned to operational or other budgets rather than reported as building maintenance expenditure.

3.1 Buildings

3.1.1 Building components

Using a standard method to break building structures into smaller components helps to provide a consistent approach for identifying the parts of the building structure and services.

A standard approach also helps consistent use of terminology to be applied in the establishment of condition standards within the assessment process, costing, planning, implementation and reporting of maintenance works. The list below is based on the National Public Works Council guideline (now Australian Procurement and Construction Council), which refers to the components of a building as element groups, elements and sub-elements.

(a) Substructure - the structurally sound and watertight base upon which to build.

Includes: Basement and foundation excavations; piers, piles, pedestals, beams and strip footings; foundation walls; drop aprons; hardcore filling; work slabs and damp-proofing or other membranes; floor structures; sub-soil drainage; ducts, pits, bases and service tunnels; entrance steps, ramps and their finishes; steps and ramps in the one floor level; structural screeds and toppings; internal swimming pools; all other work up to but excluding the lowest floor finish.

(b) Superstructure

Columns - The upright supports to upper floors and roof forming part of a framed structure.

Includes: internal and external columns from tops of column to bases; column casings; all protective non-decorative coatings.

Upper floors - floor structures above that at the lowest level.

Includes: all beams; concrete, precast and in-situ floors; waffle slab and filler block floors; metal floors; computer floors; timber framed floors; structural screeds and toppings; concealed insulation; balconies; overhangs and sunhoods integral with floors; steps and ramps in the one floor level; all protective non-decorative coatings.

Staircases - the structural connections between two or more nominal floor levels or to roof, plant rooms and motor rooms together with associated finishes.

Includes: landings; ramps between floor levels; fire escapes; supporting framework; access ladders; spiral staircases; tread, riser; string and soft finishes; balustrades and handrails.

Roof - to provide a structurally sound and watertight covering over the building.

Includes: portal frames; roof construction; gable and other walls in roof spaces; parapet walls and roof balustrades; thermal insulation; roof lights and dormers with their sun screenings; eaves, verges and fascias; rainwater goods; internal stormwater drainage runs; awnings and open lean-to roofs; all protective non-decorative coatings.

External walls - the vertical enclosure around the building other than ‘Windows’ and ‘External Doors’ from ‘Substructure’ to ‘Roof’.

Includes: structural walls; basement walls and tanking above lowest floor finish; spandrel, curtain and window walls; external shop fronts; glazed screen walls; columns and isolated piers to non-framed (load bearing) structures; gallery and balcony walls and balustrades; solar screen walls; plant room air flow screens; all insulation to external walls; all external finishes to all columns, slab edges, beams, projecting overhangs and walls; lintels and flashings at openings; ring beams and stiffening beams not integral with floor, ceiling or roof slabs.

Windows - openings in ’External Walls’ to provide light and ventilation.

Includes: flyscreens; louvres; guard grilles; remote control gear; sun protection to windows; curtains; blinds, track and pelmets; window sills and linings; hardware and decoration.

External doors - the access ways into the building both for pedestrians and vehicles.

Includes: frames; linings; glazing; architraves; hardware; panels and highlights over; fly doors; roller shutters; garage doors; fire doors; grille and chainwire doors; gates; service cupboard doors and thresholds and decoration.

Internal walls - permanent division of internal spaces into separate room or to enclose duct and other non-usable areas.

Includes: walls and piers; internal columns and isolated piers to non-framed (load bearing) structures; lintels; damp courses and bearing strips; stiffening beams not integral with floor, ceiling or roof slabs; part height solid walls glazed over to ceiling; unducted air flow grilles; firewalls and smoke screens.

Internal screens and borrowed lights - to screen off or temporarily divide internal spaces into separate compartments and to allow the transfer of light through ‘Internal Walls’.

Includes: proprietary type office partitioning; glazed screens; internal shop fronts; fold away and operable walls; overhead framework and supporting beams; chain wire and grille screens; toilet partitions and screen walls; borrowed lights; balustrades and rails not associated with staircases; all finishes and decorations.

Internal doors - passage ways though ‘Internal Walls’, internal screens and
partitions and to provide access to service cupboards and ducts.

Includes: frames; linings; glazing; architraves; pelmets; hardware and door grilles; chain wire and grille doors; toilet doors; cell and strong room doors; fire doors; roller shutters; service cupboard doors; duct access panels; fanlights and panels over and linings to blank openings and decoration.

(c) Finishes

Wall finishes - to finish and decorate all interior faces of ‘Columns’, ‘External Walls’ and ‘Internal Walls’.

Includes: finishes to internal faces of external walls and columns; acoustic wall linings; face and coloured blocks and off form concrete; splashbacks; dados and regulation wall vents.

Floor finishes - to provide a satisfactory finish to ‘Upper Floors’ and ‘Substructure’ for walking on.

Includes:- balcony floor finishes; skirtings; screeds; timber floor finishes; dividing strips; mats and matwells; duct and pit covers; carpeting used as a permanent floor finish; timber and other finishes to concrete floors; finishes to steps in the one floor level.

Ceiling finishes - to finish and decorate all internal soffits of ’Upper Floors’ and ’Roof’ over rooms and external soffits over unenclosed covered areas.

Includes: suspended false ceilings; proprietary suspended ceiling systems; acoustic ceiling linings; linings to roof lights; ceiling manholes; framing to bulkheads and cornices.

(d) Fittings

Fitments - to fit out the building with built-up fitments and fixed items.

Includes: benches; cupboards; shelving; racks; seats; counters; notice boards; signs and nameplates; coat rails and hooks; mirrors; wall hatches; daises and stages.

However, loose furniture is considered as a non-building asset. These are the items of furniture that are not built in and are easily relocatable such as tables; chairs; desks; lounges; freestanding cupboards and shelving, and filing cabinets.

Special equipment - to provide items of equipment of unitary, commercially available type and/or of a type not covered by other elements.

Includes: window cleaning; boiling water units; sink heaters; refrigerated drinking water coolers; sanitary macerators and circulating fans.

In circumstances where equipment has been provided for a purpose-built building, the equipment should be considered as part of the building. This applies when equipment is built in, affixed to or installed in such a manner that the installation costs will be substantial and could include special foundations, or extensive restoration works after the equipment has been removed (e.g. spray painting booths, incinerators, autoclaves, sterilizers, bakery equipment, laundry equipment and cranes).

Non-building plant and equipment can be defined as equipment that can be easily removed after erection or installation. In this context, the primary consideration of the building should be that of a shelter. Therefore, non-building plant and equipment are those that can be disconnected, dismantled and removed without significant impact on the building in terms of:

• damage to the building structure, including internal partitions;
• affecting the function of the building as a shelter; and
• the need to restore, change or upgrade the building after removal.

For ease of reference, the following sub-categories have been used to identify those items that are to be considered as non-building plant and equipment.

Portable and attractive equipment is considered to be in the category of non-building asset. These assets are generally smaller items of equipment that are usually stand-alone, hand-held, or plug-in. Examples of portable and attractive equipment include:

• portable tools
• cameras
• calculators
• portable power tools,; and
• battery clocks.

Plug-in "white goods" and general office equipment are considered to be non-building assets. These assets are generally plug-in electric items of equipment, usually included as office facilities. Examples of plug-in 'white goods' and general office equipment include:

• urns (plug-in)
• fridges/freezers
• clothes washers
• computer terminals and printers
• facsimile machines
• photocopying machines
• shredders, and
• microwave ovens.

Production and business equipment that can be easily removed is considered to be a non-building asset. These assets are generally used for carrying out the core business and activities (eg. production, training, testing, research) of the occupant. Examples of production and business equipment include:

• scientific equipment
• wood working equipment
• metal working equipment
• sewing machines
• welding machines, and
• biological safety cabinets.

Ancillary equipment is considered to be a non-building asset. This type of equipment is generally used for routine operational purposes. Examples of ancillary equipment include:

• motor vehicles and tractor
• trailers
• boats
• ride on mowers
• pool cleaning and servicing equipment
• cleaners’ equipment, and
• garden hoses, sprinklers.

(e) Services

Sanitary fixtures - to fit out the building with normal fixtures connected to the soil and waste plumbing systems and all associated ancillaries.

Includes:- WC suites; urinals; basins; sinks and tubs; troughs and runnels; drinking fountains; slop hoppers; showers; hobs; shower curtains and trays; terminal outlets integral with fixtures; flusherette valves; soap and toilet paper holders; towel rails and hand driers.

Sanitary plumbing - the disposal of all waste and soiled water from fixtures and equipment out to the external face of external walls.

Includes:- stacks and vents; all loose traps; floor wastes; internal sewer drainage runs, pumps and ejectors; acid resisting pipes and drains; box ducting and paintwork.

Water supply - systems to supply water from point of building entry to the points of consumption.

Includes:- storage tanks; pumps; water treatment plants; water heaters and coolers; reticulation pipework including pipeline components; terminal outlets not integral with fixtures and/or equipment; controls other than those associated with water consuming items of equipment; box ducting; insulation; sheathing; painting and identification; building and electrical work forming part of the water supply.

Gas services - to supply town, natural, simulated natural and liquefied petroleum gas from point of building entry to points of consumption.

Includes:- portable gas cylinders; booster compressors; manifolds and regulators; box ducting, painting and identification; building and electrical work forming part of the gas service element; reticulation pipework and pipeline components; terminal outlets not integral with fixtures and/or equipment and gas detection systems.

Space heating - to heat the interior of buildings by means of convection, radiation or any other form of heating.

Includes:- unitary heaters; reticulated steam, hot water or hot oil systems; warm air systems; electric floor or ceiling heating systems; fireplaces, hearths or associated work in chimney stacks; boiler plant; insulation and painting; controls and associated electrical work.

Ventilation - to ventilate buildings by means of supply and/or exhaust systems.

Includes:- mechanical ventilators; non-mechanical roof ventilators; supply and/or exhaust fans; ducted systems; exhaust hoods; ducting, plant, controls and associated electrical work.

Evaporative cooling - to cool air within a building by evaporative processes; the system can include ancillary heating.

Includes:- evaporative coolers; rock bed regenerative systems and ancillary heating devices; ducting, insulation, painting and associated electrical work.

Air conditioning - to maintain and control temperature, humidity and quality of air within predetermined limits within buildings.

Includes:- package air conditioners; systems for cooling only; ductwork, plant (chillers, cooling towers, air handling units, pumps etc.), controls and associated electrical work and air conditioning grilles.

Fire protection - to detect and/or extinguish fires.

Includes:- sprinklers and other automatic extinguishing systems; fire indicator boards; manual and automatic fire alarm installations; fire fighting equipment; hydrant installations and hose reels and cupboards, hand appliances.

Electric light and power - to provide all light and power and emergency light and power from and including main distribution board to and including power outlets and light fittings.

Includes:- main distribution board; sub-mains and distribution boards; emergency lighting systems; power sub-mains to mechanical equipment and sub-mains and/or sub-circuits to other equipment and/or final sub-circuits.

Communications - to provide audio and video communication within a building.

Includes:- all telephone cabling, internal telephone, public address, call, emergency warning and inter communication, personal paging, clock and/or bell, TV antenna and closed circuit TV.

Transportation systems - to transport personnel and/or goods from floor to floor or area to area.

Includes:- lifts, hoists and conveying systems; escalators; all associated equipment and work other than structural building work.

Special services - to provide services or installations not covered by other elements.

Includes:- monitoring systems; cool rooms and process cooling; special conditioned rooms; staircase pressurisation systems; compressed air; medical and industrial gas systems; dust extraction systems; security systems; lightning protection; stage lighting and theatre equipment; reticulated soap dispenser systems; laundry, heat and water reclaim systems.

(f) External services

External stormwater drainage - to dispose of rain and surface water from site.

Includes:- pipe runs from the external face of buildings; inspection pits; sumps; road gullies; culverts; box drains; grated trenches; runs from pools and fountains; outfalls and head/walls; agricultural and sub-soil drains; connections to existing runs and pits.

External sewer drainage - to dispose of soil and waste water from the site.

Includes:- pipe runs from the external face of buildings; grease gullies; inspection pits and manholes; acid resisting and special drains; dilution pits; petrol and plaster
arrestors; septic tanks; collection and holding wells; absorption trenches; transpiration areas; pumps and ejectors; connections to existing runs, pits and mains.

External water supply - systems to supply water up to the external faces of buildings and up to other major consuming points such as swimming pools, fountains, artificial ponds, irrigation and ground watering outlets.

Includes:- storage tanks; water towers; pumps; water treatment plants; water heaters and coolers; reticulation pipework including components; terminal outlets not integral with fixtures and/or equipment; insulation; sheathing; painting and identification; meters and meter enclosures; water bores; irrigation and ground watering systems; building and electrical work forming part of the water supply.

External gas - to supply town, natural, simulated natural and liquefied petroleum gas up to the external faces of buildings and other consuming points.

Includes:- storage cylinders and tanks; meters and regulators; meter enclosures; reticulation pipework and pipeline components; building and electrical work forming part of the external gas supply.

External fire protection - to supply fire hydrant and gas or vaporising agent runs up to external faces of buildings, external sprinkler systems, and for site connections and connection of fire protection systems between buildings. Also to detect and/or extinguish fires in fixed plant of equipment located in the open air.

Includes:- stand-by and booster pumps; pipe runs; storage and reticulation of gas and vaporising agents; hydrant points; overhead and underground cables for fire detection systems.

External electric light and power - to supply electric power to main distribution boards of buildings and to provide lighting and power to external site areas.

Includes:- connections to source of power supply; consumers mains; sub-station equipment; emergency generating plant; main switchboard; underground and overhead cables; pylons and all trenches for cabling; street and area lighting; illuminated signs and building flood lighting.

External communications - to provide external communication cables to terminating frames of buildings and to provide communication systems between buildings and to external site areas.

Includes: underground and overhead cables; pylons; connections to existing cables; external speakers; hooters; clocks; bells; closed circuit TV; community antenna systems.

External special services - to provide external service or installations not included in other elements.

Includes:- external connections to special services; service tunnels, ducts or conduits in connection with external reticulation of services elements; dust extraction plant; incineration plant; bulk storage for medical and industrial gases.

3.1.2 Site improvements

Site improvements provide the infrastructure support for buildings and service delivery functions. Maintenance costs should therefore be captured within building maintenance in terms of the MMF.

The following constitute improvements to the site:

(a) Roads, footpaths and paved areas - trafficable areas between and around buildings for vehicles and pedestrians.

Includes:- car parks; playgrounds; kerbs; crossovers; bollards; steps and associated balustrades.

(b) Walls, fencing and gates - to enclose or define the extent and portions within the site.

Includes:- all walls, fences and gates on the site; fencing on vacant land.

(c) Outbuildings and covered ways - to provide small buildings supplementary to the main building/s and covered areas or bridge links for pedestrian or vehicular site circulation.

Includes:- detached covered ways not alongside buildings; garages; bicycle sheds; incinerator buildings; residential and gatekeepers cottages; garbage shelters; workshops; chapels; stores; sheds; stair blocks; all electrical, mechanical and other services in connection therewith.

(d) General improvements - to improve the appearance of the site and provide incidental site facilities for the use of the occupants.

Includes:- seats; fountains; petrol bowsers (pumps) and tanks; sculptures; flagpoles; signs and notices; cricket nets and basketball posts; sports pitches and goal posts and open-air swimming pools.

However, temporary site improvements are considered to be non-building assets. These are assets that are erected on site on a temporary basis, are generally for specific events and for a short duration such as temporary signs (e.g. cloth banners); displays and fete stalls.

Landscaping is considered to be a non-building asset. Landscaping is normally any vegetation and associated improvements provided to improve the aesthetic appearance of the site such as lawns; gardens, vegetable plots; shrubs, and plants; sports ovals; and ornamental pools.

4.0 Activities

4.1 Building maintenance activities

Agencies are referred to the MMF (Appendix, p 16) for definitions of building maintenance and deferred maintenance. There are some activities that may require further clarification and these are addressed in this section. For the purpose of consistency, the following activities may be included under building maintenance. Exceptions for any specific item are shown in italics.

4.1.1 Statutory fees

Statutory fees such as those required to comply with legislation, are considered to be part of building maintenance. Examples include:

• registration of plant and equipment with the Division of Workplace, Health and Safety;
• environmental licences (fuel fired plant, fuel installations); and
• a fire system connection to the Fire Brigade.

4.1.2 Maintenance cleaning

Maintenance cleaning is considered to be part of building maintenance if it relates to those activities required to preserve, protect or to improve the appearance of the asset. Examples include:

• high pressure water blasting and washing down of building exteriors; and
• removal of algae from paths where it presents a slip hazard.

Day-to-day hygiene-type cleaning is not considered to be part of building maintenance. Hygiene-type cleaning includes general cleaning of walls and floors; washing down; vacuuming; polishing; shampooing.

4.1.3 Various external works

Some external works are considered to be part of building maintenance if they relate to those activities necessary to prevent damage to buildings. Examples include:

• the lopping of trees/branches to prevent leaves clogging gutters;
• removal of roots that are threatening foundations and underground services;
• maintenance of firebreaks where an area forms a protective barrier against the spread of fire from adjacent sites that are heavily covered with vegetation and trees;
• mowing and clearing of vacant sites to minimise vermin problems; and
• activities associated with erosion control.

The day-to-day landscaping related activities necessary to maintain aesthetics such as grass mowing/slashing; pruning and trimming of trees, shrubs and plants; caring of gardens, vegetable plots; and the removal of horticultural waste are considered as building operational activities.

4.2 Building operational activities

Building operational activities are routine functions undertaken for hygienic, aesthetic and security purposes and for the supply of utilities. These activities relate to keeping the building in a habitable and usable condition, but are not to be considered as building maintenance activities. In some instances, the routine functions may be undertaken as part of the maintenance responsibility. Costs should be charged to appropriate account codes within operational or other budgets.

4.2.1 Pest control

Pest control is considered to be a building operational activity. This includes activities associated with the regular pest control such as the treatment and eradication of red-back spiders; cockroaches; dust mites; lice; mosquitoes; dogs; cats and possums.

4.2.2 Security services

The services provided for the monitoring and operation of a security system should be considered as building operational activities. Examples include:

• alarm monitoring and false alarm charges;
• mobile security patrols;
• alarm monitoring phone line rentals;
• security audits; and
• provision of security personnel.

4.2.3 Refuse and waste collection and disposal

The collection and disposal of general refuse and other waste is considered to be a building operational activity. Examples include:

• removal of general refuse;
• emptying grease traps/septic tanks;
• cleaning acid traps;
• providing sanitary services; and
• removal of trade waste.

4.2.4 Operational personnel

In circumstances where personnel are provided for the operation of buildings, the service should be considered as a building operational activity. Examples include:

• boiler operators/attendants;
• sewerage plant operators;
• janitors;
• gardeners; and
• security staff.

4.2.5 Operational consumables and utilities

The supply of operational consumables and utilities is considered a building operational activity. This includes the provision of operational consumables and utilities used for the delivery of an agency’s services. Examples include:

• pool chemicals;
• material for water purification or treatment purposes;
• water;
• gas;
• fuel for engines and generator sets;
• office consumables such as guillotine blades, first aid kits;
• any form of material used to neutralise disposed acidic wastes;
• electricity; and
• telecommunication services.

The supply of consumables related to the building is considered a building maintenance activity. This includes fluorescent tubes, incandescent bulbs, air and fuel filters, lubrication material, etc.

5.0 Summary

This paper identifies items that should be considered part of a building for the purposes of the MMF. It also provides information on specific areas where some clarification may be necessary as to the types of activities that should be regarded as building maintenance.

Agencies will need to consistently and accurately identify building and maintenance activities to ensure reliable cost reporting. This will support consistent planning, implementation and reporting of maintenance and improve the quality of benchmarking.

Agencies are encouraged to seek assistance from the Department of Public Works if further assistance is required.

6.0 Further Assistance

Manager
Asset Management Advisory Branch
Department of Public Works
Tel: (07) 3224 5223
Fax: (07) 3224 4754
E-mail: AMAB@publicworks.qld.gov.au

Building Maintenance Policy

1.0 Purpose of this paper

The Maintenance Management Framework (MMF) was approved by the Government on 28 June 1999 with implementation taking effect from 1 July 1999. The MMF has established a framework for the maintenance of Queensland Government buildings to ensure consistency in the planning, implementation and reporting of maintenance.

The purpose of this paper is to provide agencies with guidance on the preparation of a building maintenance policy.

2.0 Scope

This information paper explains the purpose for establishing a building maintenance policy and provides details on the suggested structure and content of the policy. Guidance on how to develop a building maintenance policy is provided to assist agencies formulate their own policy.

3.0 Purpose of a building maintenance policy

A building maintenance policy states an agency’s objectives for the maintenance of the agency’s building assets, and how these support the delivery of agency outputs and outcomes. It should reflect the agency’s approach to maintenance and how this approach complies with and links to the MMF and guidelines.

The policy should affirm the responsibilities assigned for the strategic and operational management of maintenance within the agency and form part of the agency’s asset management policies and priorities.

This will ensure that the building maintenance policy is used for internal management and planning purposes and that maintenance service delivery arrangements comply with the policy and support agency outcomes.

4.0 Structure and content of a building maintenance policy

The building maintenance policy should be structured to include:

• a statement of intent and purpose;
• the scope of the policy;
• the details of the policy;
• the responsibilities associated with the policy; and
• the continuous improvement arrangements for the policy such as policy review procedures.

4.1 Statement of intent and purpose

The statement of intent and purpose should provide a succinct statement that conveys how the maintenance of assets will support agency service delivery objectives. It should establish the importance of asset maintenance in achieving agency service delivery outcomes. There should also be an over-arching statement regarding the requirement by Government to comply with the MMF.

In developing the statement, consideration needs to be given to the physical and functional requirements relevant to the agency’s assets and how these relate to service provision, including the need to maximise the benefits of capital investment in building assets.

4.2 The scope of the policy

This section of the policy should provide a clear statement of the assets that the policy applies to and who will be affected by the policy.

4.3 The details of the policy

This section of the policy should detail the requirements that will support the statement of intent and purpose. It should include both MMF and agency specific needs, and how the policy links to agency asset management policies and other related processes including capital works and disposal programs.

It should address each of the MMF elements to identify how maintenance is to be managed and delivered to ensure compliance with the MMF. Similarly, any agency-specific compliance requirements should be addressed in the same way. This may include statements related to compliance with statutory, legislative and other requirements such as:

• heritage and environmental legislation;
• health and safety;
• security;
• risk management;
• asset management, e.g. Strategic Asset Management (SAM), guidelines; and
• compliance with other related Government policy such as the State Purchasing Policy, Capital Investment Strategic Planning (CISP) guidelines and quality management.

The details of the policy would cover agency policy requirements in relation to the following.

Maintenance management – This should include the primary roles associated with responsibility for maintenance management including any agency specific compliance requirements such as delegation authorities;

Maintenance standards – This should include how and by whom the standards are to be established and implemented, which may require reference to other related agency documentation or policies;

Maintenance strategies – This should include how and by whom the strategies are to be established and implemented, which may require reference to other related agency documentation or policies;

Strategic Maintenance Plan (SMP) – This should include responsibilities and processes for the development of an SMP and the inclusion of maintenance considerations in the development of a Capital Investment Strategic Plan (CISP);

Condition assessment programs, maintenance plans and maintenance programs – This should include responsibilities and delegations as well as timeframes for accomplishment of specific milestones in developing, approving and managing these programs and plans;

Maintenance budgets – This should include delegations and responsibilities for compliance with Government or agency accounting policy in developing, approving and managing maintenance budgets;

Maintenance procurement – This should indicate specific responsibility and outcome requirements to comply with Government and agency procurement policies including procurement strategies e.g. performance based contracts;

Maintenance information and reporting – This should address the control, management and use of maintenance information and any specific reporting requirements;

Maintenance performance – This should indicate responsibilities associated with performance monitoring, including the development of performance measures and their integration with other asset management performance measures; and

Whole-of-Government reporting – This should indicate responsibilities associated with establishing and maintaining the data transfer to Queensland Building Information System (QBIS) and the relationships with the agency’s maintenance information system.

4.4 The responsibilities associated with the policy

This section details the roles and responsibilities assigned for developing and managing the policy. Specific details of responsibility associated with the policy such as policy ownership and policy implementation should be included as well as reference to related areas within agencies that contribute to or are stakeholders in the policy.

The responsibilities assigned for the management of maintenance within the agency at all levels should be included in this part of the policy. These would align with and reflect, the responsibilities assigned for the management of the portfolio and the individual facilities or buildings.

4.5 Continuous improvement arrangements for the policy

This section of the policy should indicate policy review arrangements such as policy review intervals including the application period for the policy and reporting and feedback arrangements for suggested improvements to the policy are to be addressed in this section.

5.0 Policy implementation

The policy should be fully documented, endorsed by senior management and included in procurement arrangements such as a Service Level Agreement (SLA).

It should be incorporated in an agency’s internal management system, such as corporate policy and asset management manuals and be reflected in other related agency documents. The policy should be articulated to maintenance service providers, facility managers and other relevant personnel.

6.0 Summary

This paper provides information on the suggested structure and content for a building maintenance policy. A maintenance policy will ensure that there is consistency in agency maintenance activities and compliance with relevant policies and statutory requirements. It will assist agency asset and facility managers and maintenance service providers to manage and undertake maintenance effectively and efficiently.

Agencies are encouraged to contact the Department of Public Works if further assistance is required.

7.0 Further Assistance

Manager
Asset Management Advisory Branch
Department of Public Works
Tel: (07) 3224 5223
Fax: (07) 3224 4754
E-mail: AMAB@publicworks.qld.gov.au

Building Maintenance Strategy

1.0 Purpose of this paper

The Maintenance Management Framework (MMF) was approved by Government on 28 June 1999 with implementation taking effect from 1 July 1999. The MMF has established a framework for the maintenance of Queensland Government buildings to ensure consistency in the planning, implementation and reporting of maintenance.

The purpose of this paper is to provide agencies with guidance on the development of a building maintenance strategy and some of the key elements.

2.0 Scope

This information paper explains the purpose for establishing a building maintenance strategy. It discusses the interrelationships between the maintenance strategy and an agency’s service delivery strategy, and the risks associated with the adoption of an inappropriate maintenance strategy. Information on implementation and review aspects is also provided.

This will enable agencies to develop a maintenance strategy for their asset portfolio that effectively uses resources, manages risks and ensures that the maintenance of assets supports other agency strategies and aligns with business objectives.

This paper should be read in conjunction with the related Information Papers No. 5:99 ‘Maintenance Condition Standards’, No. 7:99 ‘Maintenance Condition Assessment’ and No. 2:99 ‘Building Maintenance Policy’ and the Department of Public Works Strategic Asset Management guideline ‘Maintenance Management’.

3.0 Purpose of a building maintenance strategy

The purpose of a building maintenance strategy is to adopt the best approach to undertake maintenance activities, so that maintenance objectives are achieved.

The strategy should reflect the agency’s approach to maintenance and support the Strategic Maintenance Plan and maintenance policy established by the agency.

4.0 Development of a maintenance strategy

4.1 Responsibilities and competencies

The responsibility for the development of a maintenance strategy requires an understanding and thorough knowledge of the agency’s service delivery strategy and the role that building assets have in the delivery of services.

The responsibility for the development of a maintenance strategy should preferably be at a senior level and involve a team consisting of:

• the portfolio asset manager;
• facility managers;
• the maintenance service provider; and
• asset user representatives, where appropriate.

Relevant stakeholders that have an interest in maintenance outcomes should also be consulted when developing the maintenance strategy.

The development of the appropriate maintenance strategy to be adopted requires skills in:

• building portfolio management;
• maintenance management;
• financial management;
• risk management; and
• procurement and contract management.

4.3 Key elements of a maintenance strategy

The maintenance strategy that is developed should ensure that resources and risks are managed effectively and that the maintenance of assets aligns with agency business objectives. The primary driver for the maintenance strategy is the agency’s service delivery strategy.

The service delivery strategy determines how the agency intends to use assets for service delivery and any future changes in direction. This will determine the maintenance strategy that will best meet agency maintenance objectives. For example, if service delivery directions are moving towards co-location and joint use of facilities with external organisations (i.e. increased utilisation rates and complexity in management), the maintenance strategy would have to be adjusted accordingly.

A Maintenance Strategy should include the following.

Risk management strategy – This would determine how the agency intends to manage its risks in relation to statutory, technical and operational requirements. This will help to identify the risks associated with the physical, functional and operational attributes of assets. The risk management strategy will determine the priorities in undertaking maintenance activities.

Financial management strategy – This would determine the approach to funding arrangements for maintenance and achieving value for money in maintenance expenditure. The financial management strategy will influence the type, cost and planning of maintenance activities.

Procurement strategy – This would determine the procurement methods to be used within the agency and decisions on using in-house or external labour. It should reflect any government policy relating to the use of services provided by other government agencies and the use of pre-qualified contractors.

Management strategy – This would determine the management arrangements for maintenance across the agency such as the organisational structure to support the management of maintenance at head office, regional, district and facility levels.

Technical strategy – This would determine the maintenance activities which would be undertaken on the portfolio of assets. The MMF specifies an appropriate combination of condition-based, preventative and zero-based strategies to be used, taking into consideration the agency’s service delivery strategy and other related strategies as outlined above.

A condition-based maintenance strategy is suited to most building components and should be driven by a pro-active, systematic, inspection process. Maintenance actions are undertaken based on the condition of the asset as determined by the inspection process or on demand. The information that is collected through the inspection process will enable efficient and effective use of maintenance resources and improve planning and budgeting.

A preventative maintenance strategy is where maintenance is undertaken at predetermined intervals for technical, statutory or reliability considerations.

A zero-based maintenance strategy is one in which no maintenance is undertaken other than statutory or breakdown maintenance. This strategy may be appropriate for assets that are to be replaced, refurbished or disposed.

5.0 Review

It is important that the maintenance strategy should be reviewed regularly to ensure that the strategy is effective and achieves value for money. The review may be undertaken by the team that developed the strategy or independently.

6.0 Risks

The development and implementation of a maintenance strategy needs to be carried out carefully and objectively. The selection of an inappropriate strategy can be significant in terms of the impact on asset value, the maintenance budget and the operations of the business. The risks associated with establishing an inappropriate maintenance strategy include:

• building assets being over-maintained resulting in higher maintenance costs;
• building assets being ineffectively maintained resulting in waste of maintenance resources;
• building assets being under-maintained resulting in an increased frequency of failures and the possibility of litigation problems and productivity losses; and
• building assets not supporting the agency’s service delivery.

7.0 Implementation

The maintenance strategy should be fully documented and endorsed by senior management and the appropriate aspects included in service arrangements such as a Service Level Agreement (SLA). The maintenance strategy should also be incorporated in an agency’s internal management system such as Corporate Policy, Asset Management Manuals and other related agency documents.

Maintenance service providers, facility managers and other relevant personnel should have a thorough understanding of the maintenance strategy. It should also be conveyed to building users so that they are made aware of the maintenance strategy in place and are able to contribute to implementation and review of the strategy.

8.0 Summary

This paper provides information on the development of a maintenance strategy and its key elements.

An effective maintenance strategy will ensure that assets across the agency’s portfolio are maintained in an appropriate manner so that agency business objectives are achieved.

Agencies are encouraged to contact the Department of Public Works if further assistance is required.

9.0 Further Assistance

Manager
Asset Management Advisory Branch
Department of Public Works
Tel: (07) 3224 5223
Fax: (07) 3224 4754
E-mail: AMAB@publicworks.qld.gov.au

Strategic Maintenance Planning

1.0 Purpose of this paper

The Maintenance Management Framework (MMF) was approved by the Queensland Government on 28 June 1999 with implementation taking effect from 1 July 1999. The MMF has established a framework for the maintenance of Queensland Government buildings to ensure consistency in the planning, implementation and reporting of maintenance.

The MMF requires agencies to develop a Strategic Maintenance Plan (SMP), which should form part of the agency’s detailed Capital Investment Strategic Plan (CISP). This is consistent with Queensland Treasury’s Financial Management Standard 1997, s 24 (1), which requires agencies to produce a strategic plan for physical assets each financial year.

The purpose of this paper is to provide guidance to agencies on the formulation of an SMP.

2.0 Scope

This information paper explains the purpose, responsibilities and competencies required to undertake strategic maintenance planning and details the key elements of an SMP. Its use will assist agencies to formulate an SMP that addresses the future maintenance directions of the agency’s building portfolio and in the development of the total asset strategy for the agency to meet service delivery needs.

3.0 Purpose of strategic maintenance planning

Strategic maintenance planning determines the future maintenance needs and strategies for a building portfolio by reviewing the state of the existing portfolio and the potential for future growth/depletion of building assets based on business strategies. The SMP developed will be supported by a sound financial strategy, ensuring that the building portfolio is adequately maintained in the longer term. An SMP forms the basis on which annual maintenance budgets, plans and programs are developed.

Strategic maintenance planning may also indicate that pro-active building rationalisation and more innovative building acquisition and use is required, to avoid compromising future maintenance.

4.0 Responsibilities and competencies

The responsibility for strategic maintenance planning requires an understanding of the agency’s Capital Acquisition Plan (CAP), service delivery strategy and the contribution of the maintenance of building assets to service delivery outcomes.

Senior management has a responsibility for strategic maintenance planning which should be undertaken at portfolio, regional/district, facility and building levels. Responsibility for the development of an SMP rests with the portfolio manager, assisted by:

• facility managers;
• business managers;
• finance managers; and
• planners and capital works managers.

Strategic maintenance planning requires knowledge and skills in the areas of:

• building portfolio management;
• maintenance management;
• life cycle planning and analysis;
• asset performance management;
• financial management; and
• and risk management.

5.0 Strategic Maintenance Planning

Strategic maintenance planning is a structured process to ascertain the future maintenance requirements and directions for an agency’s building portfolio. The planning horizon usually covers a time period of 5–10 years, subject to the certainty of the business environment.

The process involves a review and analysis of agency corporate and service delivery objectives and the building maintenance environment. The future maintenance requirements to support the agency’s service delivery outcomes are then determined and documented in an SMP.

The process of review and analysis should be sufficient to ensure that financial projections are soundly based. The SMP developed should be incorporated into the agency’s Asset Strategic Plan and CISP.

5.1 Formulating a Strategic Maintenance Plan

The formulation of an effective SMP involves a process of reviewing, analysing and developing a critical view of the building portfolio based on:

• the status and trends of existing building assets including age, condition, performance and their effects on achieving service   delivery outcomes;
• the CAP, for the potential growth of the building asset base and building assets likely to be upgraded or disposed;
• maintenance expenditure trends and associated performance measures;
• deferred maintenance trends and associated performance measures;
• impending major repairs including any depreciation implications;
• life cycle profiles of building assets to assist in the planning   process;
• policies and service standards established for core services and their implications on maintenance; and
• financial, social, environmental, heritage and other emerging issues that have an impact on maintenance.

The results of the analysis can be further used to:

• review the agency’s maintenance policies, strategies and practices, standards and performance measures, ensuring that they continue to be relevant and useful in the future; and
• influence capital investment planning outcomes.

5.2 Key elements of a Strategic Maintenance Plan

The SMP should contain the following key elements.

The status and trends of the agency’s existing building portfolio – This includes a detailed analysis of the building portfolio to identify any issues where the key attributes of the building portfolio are impacting on agency service delivery.

Issues and trends that relate to maintenance should be clearly identified and supported by appropriate information drawn from analysis of data to enable any immediate and potential problems to be addressed and rectified.

The maintenance environment – This includes an overview of the outcomes of the review of maintenance expenditure and deferred maintenance trends and how these correlate to the condition and performance of the existing building portfolio.

Potential changes to the building portfolio and business directions that impact on maintenance, should also be presented and discussed. These include:

• new building assets, assets to be upgraded and disposed, and their impact on maintenance management, resources,   implementation and outcomes;
• major repairs and the accompanying depreciation expenses that will need to be factored into financial projections; and
• heritage, environmental, legislative and other technical factors that may contribute to higher maintenance demand should be   identified and supported by appropriate data including   financial projections.

Financial implications, strategies and projections – These include a review of current and likely future funding scenarios based on the agency’s corporate direction, the budgetary environment, building portfolio and maintenance analysis. Additional funding to meet increasing demands should also be articulated, including any strategies for meeting these funding requirements. The risks associated with funding shortfalls should be substantiated with reliable data.

The funding projections should be incorporated within the CAP and Operating Statement financial summary for Cabinet Budget Review Committee (CBRC) consideration.

Maintenance management – This includes a review of the existing policies, strategies and standards to ensure that they continue to achieve efficient and effective maintenance. They should continue to support achievement of the agency’s service delivery objectives and align with the Government’s Maintenance Management Framework.

Any changes required to meet the projected strategic business and portfolio directions and improve the efficiency and effectiveness of maintenance should be identified and described.

Summary action plan – As a summary, an action plan drawn from all of the above should be established, with clearly articulated key actions, responsibilities and implementation time frames. This will provide the basis for any review of the SMP and allow for refinement or adjustments.

6.0 Implementation

The agency should ensure that the SMP is:

• fully documented and endorsed by senior management;
• included in the CISP and referenced in maintenance rocurement arrangements; and
• made available to relevant personnel through internal management systems such as corporate policy or asset management manuals.

7.0 Review

It is important that the SMP be reviewed regularly to ensure that maintenance continues to support agency service delivery objectives and the plan provides the basis for informed strategic asset planning and management decision-making. The review should align with the annual budget and corporate planning cycle.

8.0 Risks

The risks associated with inadequate strategic maintenance planning include:

• inefficient and ineffective asset management;
• future maintenance liabilities that cannot be met effectively and in a timely manner;
• deterioration of the building portfolio, loss of building asset value, functionality and service potential;
• maintenance policies and strategies that fail to align with best practice and business directions; and
• inefficient and ineffective use of maintenance resources.

9.0 Summary

This paper provides broad guidance and information on strategic maintenance planning and the key elements of an SMP.

The establishment of an effective SMP requires significant effort and commitment from senior management. Maintenance service providers, facility managers and other relevant personnel need to have a thorough understanding of the SMP and take responsibility in their respective areas for the achievement of the plan’s outcomes.

If further assistance is required, agencies should contact the Department of Public Works.

10.0 Glossary

The following glossary terms have been sourced from the Queensland Treasury Financial Management Manual.

Cabinet Budget Review Committee (CBRC)

As a general supervisory body, CBRC:

• in conjunction with the Cabinet, reviews and determines macro fiscal strategy for the State early in the year so that it can be communicated to departments well before preparation of budget submissions;
• meets with individual Ministers to ensure that the quantum and direction of funding for individual portfolios is consistent with   the macro fiscal, social and economic policy strategy for the State;
• reviews and approves the outputs and performance;
• standards to be delivered by departments, the funds to be provided for outputs, administered items and equity adjustments, the capital program and its funding sources for each department and the budgeted financial statements for each department; and
• considers variations to departments’ funding allocations at the Mid-Year review.

CBRC consists of:

• the Premier;
• the Deputy Premier and Minister for State Development;
  the Treasurer; and
• another Minister (generally rotated each Budget round)

Capital Acquisition Plan (CAP)

A CAP provides CBRC with information about agencies’ capital investment and funding proposals. The CAP is provided in summary form as part of departments’ and statutory authorities’ Strategic Budget Submissions as well as being produced and published in detailed form as part of departments’ and statutory authorities’ strategic planning process. A CAP includes a Capital Investment Overview and a Capital Acquisition Statement.

Capital Investment Strategic Plan (CISP)

The capital investment component of the agency strategic planning process. CISPs are the mechanism whereby an agency carries out strategic planning for management, acquisition and disposal of its asset holdings.

11.0 Further Assistance

Manager
Asset Management Advisory Branch
Department of Public Works
Tel: (07) 3224 5223
Fax: (07) 3224 4754
E-mail: AMAB@publicworks.qld.gov.au

Building Maintenance Budget

1.0 Purpose of this paper

The Maintenance Management Framework (MMF) was approved by the Government on 28 June 1999 with implementation taking effect from 1 July 1999. The MMF has established a framework for the maintenance of Queensland Government buildings to ensure consistency in the planning, implementation and reporting of maintenance.

The purpose of this paper is to provide agencies with a model for the development of a building maintenance budget, the maintenance budget review processes and establishing financial benchmarks to assist in the review process.

2.0 Scope

This paper explains the purpose for and provides guidance on how to develop a building maintenance budget, together with a suggested review process and benchmarks.

3.0 Objectives of a maintenance budgeting model

The aims of a Maintenance Budgeting Model is to:

• establish a process for the development of a maintenance budget in the context of the overall budget process of government;
• establish a review process to ensure that the maintenance budget developed meets policy requirements and established   guidelines; and
• ensure key benchmarks are available to enable a reasonable assessment of the appropriateness of the maintenance budget.

4.0 Process for the development of a maintenance budget

The development of a maintenance budget should be based on:

• the Maintenance Management Framework (MMF);
• Capital Investment Strategic Planning (CISP) guidelines;
• agency CISP and strategic maintenance plans; and
• agency maintenance plans (1-3 years).

The process to be employed in developing a maintenance budget is illustrated in the following diagram (Figure 1).

The agency service delivery plans will determine the CISP and establish:

• existing assets to be maintained;
• new assets coming on line and requiring maintenance;
• existing assets to be upgraded, refurbished or components replaced; and
• existing surplus assets to be disposed of or mothballed.

Based on this information and other maintenance information, a Strategic Maintenance Plan (SMP) should be developed. The SMP articulates how the agency plans to maintain its asset portfolio in the longer term in accordance with the MMF and its funding strategy for the current budget cycle and in future years.

Maintenance plans are developed on the basis of the SMP and information from:

• condition assessments;
• technical assessments of preventative maintenance needs;
• any deferred maintenance backlog;
• historical maintenance expenditure; and
• major replacement works programs.

Maintenance plans are developed for individual buildings and facilities and aggregated into a maintenance plan for the asset portfolio. Plans should include the assets earmarked for disposal/mothballing and new assets coming on-line. Based on the plan, cost estimates are developed to form an agency portfolio maintenance budget.

The maintenance budget is matched against potential funding sources based on the funding strategy and any mismatch results in a review of the maintenance plans and/or funding strategy. The maintenance budget is then factored into the agency’s overall service delivery costs and subjected to the budget process in accordance with agency and Treasury budget policies.

The maintenance budget should address:

• agency maintenance management costs (staffing, office facilities, vehicles);
• maintenance service provider management and overhead costs;
• maintenance management services (maintenance planning, contract management, computerised maintenance management system, call centre operation, technical information);
• condition assessment costs;
• planned works program costs (condition-based);
• planned preventative maintenance work program costs;
• unplanned reactive maintenance work costs (forecast based on historical trends);
• major plant and equipment replacement costs (except those that are capitalised); and
• any other maintenance-related costs (special projects, consultancies).

5.0 Review

The review process should be undertaken as part of the budget cycle at a macro level and would involve a review of:

• the CISP and SMP;
• maintenance plans;
• asset portfolio performance indicators; and
• maintenance performance indicators and benchmarks.

6.0 Benchmarks

Benchmarks need to be established based on selected performance indicators to enable an assessment of the appropriateness of the maintenance budget. These benchmarks may be compared:

• internally (historical to the agency concerned); or
• externally (with similar portfolios elsewhere).

Some of these benchmarks may include:

• $/m2;
• $ as % of asset value;
• ratio of planned/unplanned maintenance;
• deferred maintenance index; and
• facility condition index.

7.0 Summary

This paper provides information on the suggested maintenance budgeting model.

A maintenance budget will ensure that sufficient funds are allocated to support the agency’s SMP outcomes. The benchmark information will assist agency portfolio and facility managers to plan, manage and undertake maintenance more effectively and efficiently.

Agencies are encouraged to contact the Department of Public Works if further assistance is required.

8.0 Further Assistance

Manager
Asset Management Advisory Branch
Department of Public Works
Tel: (07) 3224 5223
Fax: (07) 3224 4754
E-mail: AMAB@publicworks.qld.gov.au

Building Maintenance Planning

1.0 Purpose of this paper

The Maintenance Management Framework (MMF) was approved by the Government on 28 June 1999 with implementation taking effect from 1 July 1999. The MMF has established a framework for the maintenance of Queensland Government buildings to ensure consistency in the planning, implementation and reporting of maintenance.

The purpose of this paper is to provide agencies with guidance in maintenance planning for building assets. The process of formulating maintenance plans is also provided in this paper.

2.0 Scope

This information paper explains the purpose of maintenance planning, provides guidance on how to undertake maintenance planning, resulting in a maintenance plan, and addresses the responsibilities and competencies required for maintenance planning.

The objective is to enable agencies to undertake maintenance planning in a structured, effective manner and be able to develop a maintenance plan to suit their needs.

This paper should be read in conjunction with other related Information Papers No. 3:99 ‘Building Maintenance Budget’, No. 5:00 ‘Maintenance Condition Standards’, No. 7:00 ‘Maintenance Condition Assessment’, No. 8:00 ‘Strategic Maintenance Planning’, No. 9:00 ‘Maintenance Works Program’ and the Department of Public Works Strategic Asset Management guideline ‘Maintenance Management’.

3.0 The purpose of maintenance planning

Maintenance planning aims to:

• confirm asset service delivery, condition and functional performance requirements;
• determine the maintenance activities to be undertaken for each asset for the appropriate planning period to achieve the agency’s objectives;
• establish priorities; and
• estimate resource requirements and prepare budget bids.

Maintenance planning enables agencies to:

• secure budget allocations and other resources;
• review budget allocations and resources;
• program work according to available resources; and
• implement maintenance to meet objectives.

4.0 Roles, responsibilities and competencies

In accordance with the MMF, agencies are responsible for ensuring that strategic and operational maintenance plans are prepared.

The development and documentation of maintenance requirements requires an understanding and thorough knowledge of the agency’s corporate plans, service delivery strategies and the contribution of building assets to service delivery outcomes.

Responsibilities and specific personnel responsible for maintenance planning should be clearly defined at the appropriate levels within the agency and maintenance service provider.

In general, those involved in the maintenance planning process would include:

• the portfolio asset manager; facility managers;
• the maintenance service provider; and
• asset user representatives.

Competencies and skills to undertake maintenance planning are required in:

• maintenance management;
• building portfolio management;
• technical skills in architecture, building construction, repair and maintenance;
• risk management; and
• costing and estimating.

5.0 Maintenance planning

Maintenance planning is a structured process to achieve the efficient and effective delivery of maintenance. It consists of management activities focused on meeting the agency’s corporate objectives and achieving service delivery outcomes through an effective maintenance plan.

Maintenance planning involves the collection and analysis of all relevant data and strategy documents and applying a process to develop a plan for the short, medium and long-term maintenance of building assets.

Maintenance planning should start from a review of the agency’s corporate and service delivery plans to develop an understanding of the role and contribution of assets to service delivery. This can be done at the portfolio, facility and building levels to ensure maintenance priorities and strategies are relevant and align with business directions.

Specific areas of review should include:

• the assets to be maintained and the standards to be achieved;
• the operating requirements, asset performance requirements and criticality of the assets to service delivery;
• the long term plans for capital investment, refurbishment and disposal;
• the current maintenance program for the assets and any work outstanding; and
• the current condition and functional performance of the assets.

5.1 Reviewing maintenance information

This area of planning relates to the process of collecting and reviewing asset data and any other relevant information for the purpose of developing maintenance plans, and ensuring that new assets are included, while disposed assets are excluded accordingly.

Information that should be reviewed includes:

• maintenance plans of any new assets (if delivered as part of the capital works process);
• current and historical maintenance costs;
• engineering and other technical information;
  laws and other statutory requirements (for any amendments);
• results of previous condition assessment inspections;
• maintenance records and other relevant information;
• deferred maintenance information;
• replacement information based on life-cycle projections; and
• current asset maintenance plans.

5.2 Assessing maintenance needs

The maintenance information assembled on the current status of maintenance should be evaluated against the maintenance objectives and asset plans, performance standards and programs etc to guide the assessment of maintenance needs.

The objective of assessing maintenance needs is to develop an effective regime of maintenance consisting of:

• Preventative maintenance achieved through a technical assessment of preventative maintenance needs from inspection datasheets, maintenance manuals, manufacturer’s specifications, construction drawings and Australian Standards;
• Condition based maintenance achieved through condition assessments undertaken on each asset to identify remedial works for the asset; and
• Other maintenance strategies to meet special needs.

These maintenance activities are supported with cost estimates, risk ratings and priority rankings relevant to each building asset.

The result of an objective and competent assessment of maintenance needs should result in an organised collection of information ready to be developed into maintenance plans at portfolio, facility and asset levels.

The information should enable agency priorities relating to regional, community and policy imperatives to be integrated effectively with technical and other considerations, so that maintenance plans truly meet agency requirements.

5.3 Formulating maintenance plans

Maintenance plans are formulated at a number of levels: building, facility and portfolio. Plans can also be formulated for different timeframes from 1 to 3 years. Long term plans of up to 5 years or more are considered at a more strategic level and treated in a separate Information Paper No. 8:00 “Strategic Maintenance Planning.”

Formulating a maintenance plan involves:

• organising maintenance information from the planning process into a maintenance plan at the building level;
• reviewing the information to ensure maintenance activities, costs, priorities and timing are appropriate;
• aggregating the information up to facility and portfolio levels along regional/district or other service delivery boundaries;
• documenting the plans with appropriate accompanying information to enable evaluation against budgets and business directions;
• presenting the maintenance plan with an implementation program or schedule; and
• ongoing consultation with all stakeholders throughout the process to ensure plans are within the parameters of agency   requirements.

The final step in maintenance planning involves the allocation of maintenance budgets and the formulation of a confirmed maintenance program to be implemented over the planning horizon targeted.

6.0 Outcomes of maintenance planning

The outcomes of maintenance planning include: budget bids for maintenance that are supported by sound business cases; efficient and effective maintenance programs once budgets are approved; and achievement of agency asset management plans to support service delivery.

7.0 Summary

This guideline has detailed the key steps for undertaking maintenance planning. The process requires both a strategic and operational focus and should be undertaken each year to ensure programs are effectively targeted.

8.0 Further Assistance

Manager
Asset Management Advisory Branch
Department of Public Works
Tel: (07) 3224 5223
Fax: (07) 3224 4754
E-mail: AMAB@publicworks.qld.gov.au

Capital or Expense - a guide for asset and maintenance managers

Introduction

The purpose of this paper is to provide a general guide to asset and maintenance managers on accounting for major maintenance expenditure on their assets.

Maintenance expenditure can range from a few dollars to fix a broken fitting to many thousands of dollars to replace a roof or a large air conditioning plant. In most cases, the expenditure is readily identified as maintenance and treated as an expense.  However, when the nature or intent of the work or parts of the work extend beyond restoring the asset to its original condition, capacity or function, the expenditure needs to be examined regarding the appropriateness of classifying it as maintenance (expense) or as a capital outlay that increases the value of the asset on which the expenditure is incurred.

Treating an expenditure as maintenance (i.e. as an expense) would obviously affect the cost of an agency’s outputs and hence the cost to Government of purchasing those outputs. Capital expenditure, on the other hand has an impact on the value of the agency’s assets and subsequently, depreciation and equity return. Accounting for expenditure on assets in an appropriate and consistent manner, would give a more accurate view of an agency’s output costs as well as the value of the agency’s assets.

Maintenance as an expense

Statement of Accounting Concepts (SAC 4) Definition and Recognition of the Elements of Financial Statements defines expenses as “consumptions or losses of future economic benefits in the form of reductions in assets or increases in liabilities of an entity, other than those relating to distributions to owners, that result in a decrease in equity during the reporting period”. This definition is called up in the Queensland Government Financial Management Manual Accounting Policy Guidelines APG3-1.

The Maintenance Management Framework (MMF) approved by the Queensland Government on 28 June 1999, defines maintenance as all work on existing building assets that is undertaken to achieve the following objectives:

• to prevent deterioration and failure;
• to restore physical condition to a specified standard;
• to recover from structural and services failure;
• to obtain an accurate and objective knowledge of physical and operating condition including risk and financial impact for the   purpose of maintenance; and
• partial equivalent replacement of components of the asset

In this context, maintenance is a reflection of the consumption (through usage) of the asset that results in a reduction in the value of the asset and hence meets the definition of an expense. However, works undertaken through maintenance may also include elements of work that could result in the expenditure being classified as capital. This is more likely to happen in cases where major expenditure is incurred for replacements and repairs undertaken on demand or on a planned cyclic basis.

Capital Expenditure

The Queensland Government Financial Management Manual Accounting Policy Guidelines APG6-5 states that “when major cyclical maintenance is carried out, the expense incurred should be capitalised to the extent that future service potential is enhanced”.

In general, work that includes upgrades, enhancements and additions to an existing asset would fall in this category when they result in:

• an increase in the asset’s useful function or service capacity; or
• an extension of its useful life; or
• an improvement to the quality of the asset’s services; or
• a reduction in future operating costs; and
• the upgrade or enhancement becoming an integral part of the asset.

The expenditure would be recognised as an increase in the value of the asset concerned when the cost meets or exceeds the agency’s asset recognition threshold in accordance with the Financial Management Standard 1997 and the agency’s Financial Management Manual.

The corollary to this is that work is considered as maintenance when its cost does not meet the asset recognition threshold and/or the work does not result in any improvement in any of the areas identified above, but simply preserves the asset’s original serviceability.

Increase in useful function or service capacity

This may be the result of work that enables the asset to be used for additional functions that were not possible prior to the work. An example of this is the enclosure of an open patio that enables it to be used as a multi-purpose area. While the work may have been initiated under maintenance due to the need to replace the deteriorated roof cover, the improved material used to replace the roof and the new enclosure have resulted in an increase in useful function.

Extension of useful life

Australian Accounting Standard (AAS4) defines “Useful Life” as “the estimated period of time over which the future economic benefits embodied in a depreciable asset are expected to be consumed by the entity or the estimated total service, expressed in terms of production or similar units, that is expected to be obtained from the asset by the entity”.

The Queensland Government Financial Management Manual Accounting Policy Guidelines APG6-1 also adds that the useful life of an asset to one agency may well differ from its useful life to another entity or even within the same entity. As an example, the useful life of a timber structure in North Queensland may be less than that in Brisbane due to climatic differences.

In terms of the two ways in which useful life may be considered (period of consumption of future economic benefit or production of output), a building may have a useful life based on the period of its use. An air conditioning chiller may have its useful life estimated on the basis of its running hours and duty.

The factors that influence the useful life of building assets include:

• physical wear and tear as a result of usage
• environmental conditions;
• technical obsolescence;
• commercial obsolescence;
• legal compliance issues; and
• other limitations on the continued safe and legal use of the asset.

The extension of useful life may be the result of using a new material different from the original (e.g. a better quality heavy duty carpet) or the result of improved design (e.g. a new compressor of the same capacity).

Maintenance work undertaken to replace asset components due to deterioration often result in an extension of useful life due to the original components being no longer available or the entity’s desire for better aesthetics and reliability etc. Subject to other qualifications as noted above, expenditure in these instances should be carefully reviewed in terms of being maintenance or capital or a combination of both.

Improvement in the quality of the asset’s services

In the context of building assets, such improvements usually occur in the maintenance of building services such as air conditioning, lifts, and other electronic/electrical and mechanical equipment. Major repairs and replacements are usually undertaken with the modern engineering equivalent that, in the context of modern technology, is often an improvement on the original. Replacing the electro-mechanical control systems of older lifts with software-based controls and replacing an older building control system with one having more intelligent software are examples of these.

Reduction in future operating costs

Such reductions may occur as the result of using new materials or design as well as new technology. The use of more durable or weather-resistant materials may result in reduction of maintenance costs while the installation of a more modern air conditioning plant may result in a reduction of energy costs.

The replacement may be precipitated by maintenance requirements such as excessive repair costs and there may be no subsequent increase in output capacity or improvement in service quality. Even though the work may be undertaken as part of a maintenance program, such expenditure should be reviewed in terms of its capital content. In such cases, the intent of the work may be a relevant issue. If the primary intent is to reduce the future operating costs, then it should be considered as capital. On the other hand, an equivalent replacement for maintenance reasons, with inherent properties to potentially reduce future operating costs, would normally be considered as maintenance unless there is a material change or enhancement in physical characteristics.

Upgrade being an integral part of the asset

Upgrades to existing buildings would normally form part of the building or a cluster of buildings and hence be an integral part of the building or complex of buildings. Upgrading of part of a chain link fence to a feature boundary wall means that the upgraded part would form an integral part of the fence but not of the building that it encloses. In this context, if the whole of the existing asset is replaced (whether initiated by maintenance considerations or not), then the expenditure should be considered as capital since the replacement asset would normally have a useful life greater than the one it replaced.

Considerations for Asset and Maintenance Managers

Asset managers need to consider issues of capital versus maintenance when undertaking maintenance planning and assessing the future maintenance needs of their assets. To make more effective use of limited funds, maintenance and upgrading works are often carried out together to meet service needs. Also, maintenance works often involve decisions about using newer and better material, components and systems. The intent of this guideline paper is not to impose unhelpful divisions between maintenance and upgrades, but to identify the issues and assist in decision making on funding and other issues.

In summary, key considerations for asset and maintenance managers making decisions on maintenance works, include:

• financial management and accounting policies and guidelines;
• the magnitude of the expenditure relative to the value of the asset;
• the value of the asset itself;
• the intent of the work; the scope of the work (restore to original or upgrade);
• the outcome of the work (increase in useful life);
• the result of the work being an integral part of the asset;
• impact on service delivery costs;
• impact on asset value, depreciation and equity return; and
• consistency in decision making.
  

References

Financial Management Standards 1997

Recording and Valuation of Non-Current Physical Assets 1997

APG3 Accounting Policy Guideline - Definition and Recognition of Expenses

APG6 Accounting Policy Guideline - Depreciation/Amortisation

Contact

Industry Policy Unit
Department of Public Works
Tel: (07) 3224 5482
E-mail: IPU@publicworks.qld.gov.au