Infrastructure Delivery
Management Toolkit:
2010 Edition
Delivery Process 1: Portfolio Management
Infrastructure Planning: The U-AMP
Sonny Schmidt
1
cidb
development through partnership
The IDMS
DP1: Portfolio Management
Prov
Infr
Strat
DP1-1 Infrastructure Planning
Develop U-AMP
Develop C-AMP
(including prioritised
(including work plans)
MTEF works list)
DP1-2 Programme Management
Dev Proc
Strat
G1(a)
PF1.
3
G1(b)
PF1.
4
P
C1
PF2.
1
Develop/review
IPMP
G2
PF2.
2
PF5
Manage
Implementation
PF2.
3
PF3
PF4
DP2: Project Management
DP2-1 Planning (Develop IPIP)
Package
definitio
n
Package
prep
P
C2
G3
PF1.
3
Works
plannin
g
G4
DP2-3 Works
DP2-2 Design
Design
develop
t.
P
P
C4
C3
a
PF1.
4
G5
P
C5
MFC
Info
G6(a)
T1
PF2.
1
PF5
Con/Del
works
G6(b)
P
C4
b
PF2.
2
DP2-4 Close Out
Handovr
works
G7
Project
Close Out
Update
Asset
Register
G8
T2
PF2.
3
PF3
PF4
DP3: Operations & Maintenance
DP3-1 Recognise
& accept assets
G8
PF1.
3
DP3-2 Mobilisation
for Facilities Mgt
PF1.
4
DP3-3
Operations
PF2.
1
PF5
DP3-4
Maintenance
PF2.
2
PF2.
3
DP3-5 Demobilise
Facilities Mgt
PF3
PF4
User and Custodian Portfolio Management Outputs
User
organisations
Custodian
organisations
 U-AMP
 Construction
procurement
strategy
 IPMP
 Organisation and
Support plan
 Monitoring reports
 Recommended
actions
 C-AMP
 Work Plans
 Organisation and
Support plan
 Monitoring reports
 Recommended
actions
3
Infrastructure Planning Methodology
• What
infrastructure /
organisational
capacity is needed
to comply with the
organisation’s
strategic plan and
to support
delivery?
• What options does the
organisaton have for
providing the required
infrastructure /
organisational
capacity?
• What are the plans (long,
medium and short term) for
providing the infrastructure /
organisational capacity
defined in the documented
and agreed options.
Needs
Supply
Gap
Determine
Options
• What infrastructure /
organisational
capacity does the
organisation have?
• What
infrastructure /
organisational
capacity is
required?
Alternative
Solutions
• What
alternatives to
physical
infrastructure /
internal
organisational
capacity can the
organisation use
/ develop?
Plans
6
Basic 3
Gaps to be determined:
• Space Gaps
• Utilisation Gaps
• Functional Gaps
• Condition Gaps
• Efficiency Gaps
Other Gaps:
• Capacity gaps
• Funding Gaps
Project Cost Estimating & Budgeting
SCOA: Category of Expenditure:
– Capital:
•
•
•
•
Acquisition (new, additions)
Upgrading, Alterations, Conversions
Renovation, Refurbishment (Rehabilitation)
Disposal
– Current:
• Routine maintenance
• Staff, systems
Based on Life Cycle Costing
8
Life Cycle Costing (1)
• All costs (estimated & actual) over the
life cycle of an asset are taken into
consideration in order to make future
decisions about the asset.
• Includes:
– capital e.g. initial acquisition cost and
future upgrades,
– rehabilitations
– operations and maintenance
9
Life Cycle Costing (2)
10
Estimate for new infrastructure asset
Cost Category Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17
Infrastructue Asset A
9 000 23 600 42 000 27 400
3 060
3 060
3 060
3 060
3 060
7 140
3 060
3 060
3 060
3 060
7 140
3 060
3 060
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
Maintenance
Current
-
-
-
-
Rehabilitation
Capital
-
-
-
-
Acquisition
Capital
Extension
Capital
-
-
-
-
Upgrading
Capital
-
-
-
-
-
-
-
-
-
-
-
-
-
Disposal
Capital
-
-
-
-
-
-
-
-
-
-
-
-
-
Organisation & Support
Current
500
500
500
500
8 500 23 100 41 500 26 900
Acquire/ Develop asset
-
-
-
-
-
4 000
Capital estimate for
- development
- of Infrastructure
amounts
- Asset
- A showing
required in each financial year
60
60
60
60
60
140
-
-
-
-
4 000
-
-
Estimate for
annualmaintenance
- Capital- estimate
- for -
-
-
rehabilitation
after 5 years of use
-
-
-
-
-
-
-
-
-
-
-
60
60
60
60
140
-
60
60
Use asset to deliver services
11
Portfolio Budget build up
Cos t Ca tegory
Infrastructue Asset A
Yea r 1 Yea r 2 Yea r 3
Yea r 4 Yea r 5 Yea r 6 Yea r 7
9 000 23 600 42 000 27 400
3 060
3 060
3 060
3 060
7 140
3 060
3 060
3 060
3 060
7 140
3 060
3 060
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
3 000
Ma i ntena nce
Current
-
-
-
-
Reha bi l i ta ti on
Ca pi ta l
-
-
-
-
Acqui s i ti on
Ca pi ta l
Extens i on
Ca pi ta l
-
-
-
-
-
Upgra di ng
Ca pi ta l
-
-
-
-
-
Di s pos a l
Ca pi ta l
-
-
-
-
-
Orga ni s a ti on & Support
Current
500
500
500
500
60
1 835
1 020
Infrastructue Asset B
-
8 500 23 100 41 500 26 900
1 835
1 835
1 835
Yea r 8 Yea r 9 Yea r 10 Yea r 11 Yea r 12 Yea r 13 Yea r 14 Yea r 15 Yea r 16 Yea r 17
3 060
-
-
-
-
Capital estimate for
- of Infrastructure
development
Asset
- A
-
-
-
-
-
-
60
60
0
0
-
60
60
0
-
Current
1 800
1 800
1 800
1 800
-
Reha bi l i ta ti on
Ca pi ta l
-
-
-
-
-
Acqui s i ti on
Ca pi ta l
-
-
-
-
-
Extens i on
Ca pi ta l
-
-
-
-
-
-
-
-
-
Upgra di ng
Ca pi ta l
-
-
-
-
-
-
-
-
Di s pos a l
Ca pi ta l
-
-
-
-
1 000
-
-
-
Orga ni s a ti on & Support
Current
-
-
-
35
35
35
20
820
820
2 450
820
2 560
8 920 11 380
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
140
0
-
60
0
800
-
-
1 600
Acqui s i ti on
Ca pi ta l
-
-
-
-
-
-
-
-
Extens i on
Ca pi ta l
-
-
-
-
1 700
7 940
10 360
-
Upgra di ng
Ca pi ta l
-
-
-
-
-
Di s pos a l
Ca pi ta l
-
Orga ni s a ti on & Support
Current
-
-
-
-
-
-
-
-
140
0
60
0
60
0
0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 200
800
-
-
-
-
1 200
800
-
-
-
1 200
800
1 600
0
-
-
1 200
800
-
60
-
-
1 200
800
-
60
0
4 000
-
1 230
800
-
-
Rehabilitation
now
includes the
extension
-
-
-
-
-
-
3 260
1 230
1 230
1 230
1 230
1 200
1 200
1 200
1 200
1 200
-
2 000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20
20
50
20
60
180
220
50
30
30
30
30
60
30
30
30
30
Organisation & Support - Portfolio Management
450
450
450
450
450
450
450
450
450
450
450
450
450
450
450
450
450
Pers onnel
Current
250
250
250
250
250
250
250
250
250
250
250
250
250
250
250
250
250
Sys tems
Current
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
200
Estimate for organisational Portfolio Management
function. This is in addition to identifiable management /
supervision of work at specific assets
-
60
1 230
Ca pi ta l
-
-
1 230
Current
-
-
1 230
Reha bi l i ta ti on
-
-
2 850
Ma i ntena nce
-
-
- example
- B is maintained
In this
Asset
until-Asset A- is operational
-after which
the organisation disposes of Asset B
35
Asset C is extended
in- year 5-
-
0
Ma i ntena nce
Infrastructue Asset C
-
-
4 000
-
-
-
12
“Programme View” of Budget
Cost Category Year 1
12 105
Total Infrastructure Estimate
Year 2
26 705
Year 3
46 735
Year 4
30 505
Maintenance
Current
2 600
2 600
2 600
2 600
Rehabilitation
Capital
-
-
1 600
-
Acquisition
Capital
Extension
Capital
Upgrading
Disposal
Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17
Year 9
Year 8
Year 7
Year 6
Year 5
7 090
12 430
14 890
6 360
4 740
8 820
4 740
4 740
6 770
4 740
8 820
4 740
4 740
3 800
3 800
3 800
4 200
4 200
4 200
4 200
4 200
4 200
4 200
4 200
4 200
4 200
-
-
-
1 600
-
7 940
10 360
-
-
-
-
2 000
-
-
-
-
-
-
4 000
-
-
-
-
-
4 000
23 100
41 500
26 900 1 700
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Capital
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Capital
-
-
-
-
1 000
-
-
-
-
-
-
-
-
-
-
-
-
Programme xx
yy
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Programme xx
yy
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
etc.
etc
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Organisation & Support
Current
8 500
1 005
1 005
1 035
1 005
590
690
730
560
540
620
540
540
570
540
620
540
540
Infrastructure programmes managedby the organisation. Programmes
match reporting requirements which are linked to goals and priorities
13
The Need for Budget Revision
Project Budget
– The “Control” Budget?
Financial Year Budget:
Demand for work exceeds available fund:
– Re-schedule work
– Apply robust Prioritisation Criteria
– Document prioritisation decisions
14
Budget Revision due to Progressive Improvement of Cost Estimates
Cost estimating through the Project Life
Cost Estimate Name
Gateway Process stage
Conceptual
Infrastructure Planning
Pre-feasibility
Package Preparation
Preliminary (Feasibility)
Design Development
Tender
Design Documentation
Definitive
Works
Final
Close Out
15
Alignment of Budget and Infrastructure Planning Cycles (1)
• Expenditure characterised by spike
(hockey stick!)
• Resulting in:
– Roll over of funds
– Over expenditure
– Value not achieved
– Incorrect services procured
• Cabinet approved framework (2007)
– Allows for due process to take place
16
Alignment of Infrastructure Planning and Budgeting (1)
Alignment of the Infrastructure Delivery Cycle
& the Budget Cycle
Year -2
Year -1
Year 0
Year 1
Year 2
A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J
MTEF Budget Cycle
Budget Preparation
Process
The improved Infrastructure
Delivery Cycle now facilitates the
alignment of the Infrastructure
Delivery Cycle with the Budget
Cycle.
The budget preparation process
can now be strengthened by
actual projects identified during
Infrastructure Planning.
Implement Budget
Closure
Processes
Previously Infrastructure Planning
was undertaken too late to facilitate
effective alignment of the
Infrastructure Delivery Cycle with
the Budget Cycle.
Previous Infrastructure Delivery Cycle
Infrastructure
Planning
Project
Design
Project
Tender
Project
Implementation
Rolled Over
Unspent Budget
Improved Infrastructure Delivery Cycle
U-AMP C-AMP Proc IPMP IPIP
update update Strategy
O&S
Plan
O&S
Plan
O&S PlanO&S Plan
Project
Project
Project
Planning Procurement Design
Project Works
Planned Multi-year
Project Works
Monitoring & Reporting
19
17
Summary: Infrastructure Planning
• User:





U-AMP (G1a)
Consider service delivery mandate
Infrastructure required (“Gaps”)
Life cycle costs
Collaboration with custodian
18
Thank you
cidb
19