Infrastructure Delivery Management Toolkit 2010 Edition Delivery Process

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

The IDMS Prov Infr Strat DP 1: Portfolio Management DP 1 -1 Infrastructure Planning Develop U-AMP Develop C-AMP (including prioritised (including work plans) MTEF works list) DP 1 -2 Programme Management G 1(a) PF 1. 3 G 1(b) PF 1. 4 Develop/review IPMP Dev Proc Strat P C 1 PF 2. 1 G 2 PF 2. 2 PF 5 Manage Implementation PF 2. 3 PF 4 DP 2: Project Management DP 2 -1 Planning (Develop IPIP) Package definitio n Package prep P C 2 G 3 PF 1. 3 Works plannin g G 4 Design developt. P C 3 P C 4 a PF 1. 4 G 5 P C 5 MFC Info G 6(a) T 1 PF 2. 1 PF 5 DP 2 -4 Close Out DP 2 -3 Works DP 2 -2 Design Con/Del works G 6(b) P C 4 b PF 2. 2 Project Close Out Handovr works G 7 Update Asset Register G 8 T 2 PF 2. 3 PF 4 DP 3: Operations & Maintenance DP 3 -1 Recognise & accept assets G 8 PF 1. 3 DP 3 -2 Mobilisation for Facilities Mgt PF 1. 4 DP 3 -3 Operations PF 2. 1 PF 5 DP 3 -4 Maintenance PF 2. 2 PF 2. 3 DP 3 -5 Demobilise Facilities Mgt PF 3 PF 4

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 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 11

Portfolio Budget build up 12

“Programme View” of Budget 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) 17

Summary: Infrastructure Planning • User: § § § U-AMP (G 1 a) Consider service delivery mandate Infrastructure required (“Gaps”) Life cycle costs Collaboration with custodian 18

Thank you 19