1. Infrastructure Delivery Management Toolkit: 2010 Edition
Delivery Process 1: Portfolio Management
Infrastructure Planning: The U-AMP
Sonny Schmidt
development through partnership

2. The IDMS DP1: Portfolio Management DP2: Project Management
Prov Infr Strat
DP1: Portfolio Management
DP1-1 Infrastructure Planning
DP1-2 Programme Management
Develop U-AMP (including prioritised MTEF works list)
Develop C-AMP (including work plans)
Dev Proc Strat
Develop/review IPMP
Manage Implementation
G1(a)
G1(b) G2
PC1
PF1.4
PF1.3
PF2.1
PF2.2
PF2.3
PF3
PF4
PF5
DP2: Project Management
DP2-1 Planning (Develop IPIP)
DP2-2 Design
DP2-3 Works
DP2-4 Close Out
Package prep
Package definition
Works planning
Design developt.
MFC Info
Con/Del works
Handovr works
Project Close Out
Update Asset Register G3 G4 G5
G6(a)
G6(b) G7 G8
PC2
PC3
PC4a
PC5
PC4b T1 T2
Delivery Gates:
G1a – Approved U-AMP (incl MTEF list)
G1b – Approved C-AMP (incl Works list
G2 – Accepted Procurement Strategy
G3 – Accepted Strategic Brief
G4 – Accepted Concept Report
G5 – Accepted Design Development Report
G6 a – Accepted Production Information
G6b - Accepted Manufacture, Fabrication & Construction information
G6c ?? – Sonny to confirm if required
G7 – Accepted works in accordance with requirements
G8 – Works taken over by User, complete with record information
Procurement Milestones:
PC1 – Procure PSP for Programme Management, incl strategic procurement services
PC2 – Management Contractor / Framework Contract
PC3 – Design and Construct
PC4a – Design by Employer (Consultant procurement)
PC4b – Design by Employer (Contractor procurement)
PC5 – Develop and Construct
Performance Management Processes:
PF1.1 – Develop Indicators from Strategic Plan objectives
PF1.2 - Develop Indicators from Programme Implementation Plans and Budgets
PF1.3 – Develop Indicators from Project / Operational & Maintenance Plans
PF1.4 – Link Indicators and RACI to individual Performance Agreements
PF2.1 – Monitor & Evaluate Inputs, Activities and Outputs against plan
PF2.2 – Monitor & Evaluate Outcomes against plan
PF2.3 – Monitor & Evaluate Impacts against plan
PF3 – Publish Performance Information
PF4 – Review / Appraise individual performance
PF5 – Take management action
Triggers:
T1 – Trigger – To O&M on requirements for works that will be delivered
T2 – Trigger – To other Dep’s on requirements for other services (staff, books (Edu), pharmaceuticals (Health), etc)
PF1.4
PF1.3
PF2.1
PF2.2
PF2.3
PF3
PF4
PF5
DP3: Operations & Maintenance
DP3-1 Recognise & accept assets
DP3-2 Mobilisation for Facilities Mgt
DP3-3 Operations
DP3-4 Maintenance
DP3-5 Demobilise Facilities Mgt G8
PF1.4
PF1.3
PF2.1
PF2.2
PF2.3
PF3
PF4
PF5

3. User and Custodian Portfolio Management Outputs
organisations
Custodian
U-AMP
Construction procurement strategy
IPMP
Organisation and Support plan
Monitoring reports
Recommended actions
C-AMP
Work Plans
Portfolio Management outputs by responsible organisation
The Implementing Agent is managed by the User on the basis of the SDA between the organisations and the IPIP it submits

6. Infrastructure Planning Methodology
Generically the planning process for both asset solutions and organisational capacity discussed in this module are based on identifying needs, comparing these to current services and facilities available and developing solutions to any gaps.

7. Gaps to be determined: Space Gaps Utilisation Gaps Functional Gaps
Basic 3
Gaps to be determined:
Space Gaps
Utilisation Gaps
Functional Gaps
Condition Gaps
Efficiency Gaps
Other Gaps:
Capacity gaps
Funding Gaps

8. 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
User organisation prepares estimates – scope, schedule, management capacity, funds
Good collaboration with Custodian and Implementing Agent will improve estimates

9. 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
This will help make the decision about whether to continue using or acquiring an asset to provide services.

10. Life Cycle Costing (2)
The asset is obtained at an initial acquisition cost. Ordinary use of the asset leads to wear and tear, requiring preventative maintenance to ensure that the asset remains above its minimum required performance level
After an initial period preventative maintenance is no longer able to ensure the minimum level of performance and the asset requires renovation/rehabilitation. The renovation restores the assets to its original condition. Preventative maintenance now continues
During the asset’s life it may be upgraded or extended, increasing the value of the asset
The asset could be renovated/rehabilitated a number of times. However (typically at the end of the asset’s planned life), systems supporting the asset can be expected to fail. The asset now requires major rehabilitation/refurbishment which may involve a major overhaul of systems and/or replacement of these systems or components of systems
Once the refurbishment has been completed a new economic life cycle begins.

11. Estimate for new infrastructure asset
Typical estimate for a single new asset showing;
Acquisition
Maintenance
Rehabilitation (every 5 years in this case)
Organisation and support costs

12. Portfolio Budget build up
Based on estimates for all assets, build up long term budget
Portion of the budget approaching the MTEF period will be more accurate as feasibility studies are completed.

13. “Programme View” of Budget
Summary budget for previous 3 asset organisation
Can be re-ordered to show “Asset View” – costs per asset in single line
Different views required for different reporting requirements

14. 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
Work is not “cancelled (deleted form works list) – only rescheduled
Ensure that current contractual work is accommodated effectively

15. 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
Initially work (projects/jobs) enter list by means of a pre-feasibility study
As work as included in MTEF period estimates based on feasibility study
Accuracy improved as work advance through implementation phases until the costs are 100% known at final account stage

16. 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
Framework know as the “Alignment Model”

17. Alignment of Infrastructure Planning and Budgeting (1)
Infrastructure cycle takes 4.5 years to complete
Infrastructure planning now informs the budget cycle
The correct work is now funded (not just funds spent on selected work)

18. Summary: Infrastructure Planning
User:
U-AMP (G1a)
Consider service delivery mandate
Infrastructure required (“Gaps”)
Life cycle costs
Collaboration with custodian
First gate (2 halves) in CIDB Gateway Process
User will fund all infrastructure work
Custodian will assist with services such as asset register, condition assessments, life cycle costing plans for each asset
Custodian will co-ordinate work across all users

19. Thank you 2006 Ver planning philosophy remains the same
GIAMA requirements added – essentially a combination of the outputs of each of the steps in the roadmaps
Good working relationship between Custodian and User essential
Flows now linear – easier for people to use