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GUIDE TO ASSET MANAGEMENT Part 1: Introduction to Asset Management
Guide to Asset Management Part 1: Introduction to Asset Management
Guide to Asset Management Part 1: Introduction to Asset Management Summary This document introduces the Austroads Guide to Asset Management, the aim of which is to offer guidance on how to best manage physical road infrastructure. The guide covers various aspects of asset management including how to determine and plan to accommodate stakeholder/community expectations, formulate and review asset strategies, develop works programs, assess asset performance and undertake asset valuation and audit. Whilst the focus of the Guide to Asset Management is on the management of the physical road assets, the importance of total transport system management, which covers all activities concerned with the provision, operation, maintenance, renewal and disposal of transport infrastructure assets, is duly recognised. Road asset owners and managers are therefore encouraged to adopt a comprehensive range of coordinated activities, from transport planning, through design, implementation and operations in order to maximise community benefits. The guide complements the Austroads Publication AP-R202/02 Integrated Asset Management Guidelines for Road Networks, which describes in detail the integrated asset management planning processes and recommended implementation stages aimed at achieving business improvements within road agencies. The guide also recognises the purpose of the Australian Transport Council’s National Guidelines for Transport System Management in Australia, the scope of which embraces all land transport modes and is compatible with its principles. The specific sections of the guide and its accompanying commentaries elaborate key road asset management principles through providing best practice recommendations and by way of example. Keywords Asset management, roads, stakeholder/community expectations, asset strategies, works programs, asset performance, asset valuation, audit, implementation, business process, improved practices, information systems, decision support tools, objectives, road use management, heavy vehicle access, service levels, intervention levels, whole of life cycle costing, managing risks First published 2006 Second edition November 2009 © Austroads Inc. 2009 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without the prior written permission of Austroads. ISBN 978-1-921551-87-1 Austroads Project No. AP1008 Austroads Publication No. AGAM01/09
Project Manager Kathy Martin, MR WA Prepared by Kieran Sharp and Tyrone Toole, ARRB Group
Published by Austroads Incorporated Level 9, Robell House 287 Elizabeth Street Sydney NSW 2000 Australia Phone: +61 2 9264 7088 Fax: +61 2 9264 1657 Email:
[email protected] www.austroads.com.au
This guide is produced by Austroads as a general guide. Its application is discretionary. Road authorities may vary their practice according to local circumstances and policies. Austroads believes this publication to be correct at the time of printing and does not accept responsibility for any consequences arising from the use of information herein. Readers should rely on their own skill and judgement to apply information to particular issues.
Guide to Asset Management Part 1: Introduction to Asset Management
Sydney 2009
Austroads profile Austroadsp purpose is to contribute to improved Australian and New Zealand transport outcomes by:
providing expert advice to SCOT and ATC on road and road transport issues
facilitating collaboration between road agencies
promoting harmonisation, consistency and uniformity in road and related operations
undertaking strategic research on behalf of road agencies and communicating outcomes
promoting improved and consistent practice by road agencies.
Austroads membership Austroads membership comprises the six state and two territory road transport and traffic authorities, the Commonwealth Department of Infrastructure, Transport, Regional Development and Local Government in Australia, the Australian Local Government Association, and New Zealand Transport Agency. Austroads is governed by a council consisting of the chief executive officer (or an alternative senior executive officer) of each of its 11 member organisations:
Roads and Traffic Authority New South Wales Roads Corporation Victoria Department of Transport and Main Roads Queensland Main Roads Western Australia Department for Transport, Energy and Infrastructure South Australia Department of Infrastructure, Energy and Resources Tasmania Department of Planning and Infrastructure Northern Territory Department of Territory and Municipal Services Australian Capital Territory Department of Infrastructure, Transport, Regional Development and Local Government Australian Local Government Association New Zealand Transport Agency.
The success of Austroads is derived from the collaboration of member organisations and others in the road industry. It aims to be the Australasian leader in providing high quality information, advice and fostering research in the road sector.
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
CONTENTS 1
INTRODUCTION ............................................................................................................ 1
1.1 1.2 1.3 1.4
1.7
The Need for Asset Management................................................................................... 1 The Aims and Benefits of Asset Management................................................................ 1 Definition and Scope of Asset Management................................................................... 1 The Austroads Integrated Asset Management Guidelines for Road Networks .............. 2 1.4.1 Introduction to the IAM Guidelines.................................................................... 2 1.4.2 Asset Management as a Process Approach..................................................... 3 1.4.3 Implementation and Continuous Improvement in Asset Management Practices ........................................................................................................... 5 The Role of Asset Managers .......................................................................................... 6 Relationship and Synergies with the National Guidelines for Transport System Management in Australia ................................................................................................ 7 Achieving Effective Asset Management ......................................................................... 9
2
OVERVIEW OF KEY ASSET MANAGEMENT PRINCIPLES AND PRACTICES....... 10
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8
Policy-driven and Results Oriented and Customer Focused ........................................ 10 Managing Current Assets and Providing for Future Assets.......................................... 12 Providing a Defined Level of Service............................................................................ 14 Developing Cost-effective Programs for the Long-term................................................ 15 Managing Risks Associated with Asset Failures .......................................................... 16 Performance Monitoring, Audit and Feedback ............................................................. 17 Use of Information Systems and Decision Support Tools ............................................ 18 Continuous Improvement in Asset Management Practices and Human Resource Skill Development ......................................................................................................... 20
3
THE AUSTROADS GUIDE TO ASSET MANAGEMENT ............................................ 21
3.1 3.2 3.3
Structure ....................................................................................................................... 21 Relationship to other Austroads Publications ............................................................... 22 Scope of other Parts of the Austroads Guide to Asset Management ........................... 23 3.3.1 Part 2: Community and Stakeholder Requirements ....................................... 23 3.3.2 Part 3: Asset Strategies .................................................................................. 23 3.3.3 Part 4: Program Development and Implementation........................................ 24 3.3.4 Parts 5, 6 and 7: Asset Performance .............................................................. 24 3.3.5 Part 8: Asset Valuation and Audit ................................................................... 24
1.5 1.6
REFERENCES ...................................................................................................................... 25
Austroads 2009 — i—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
TABLES Table 1.1: Table 1.2:
The asset management process ...................................................................... 3 Differences in functional roles........................................................................... 6
FIGURES Figure 1.1: Figure 1.2: Figure 2.1: Figure 2.2: Figure 2.3: Figure 2.4: Figure 2.5: Figure 3.1:
Integrated asset management process flow diagram ....................................... 4 Hierarchy of linked objectives for transport system development..................... 8 Elements of asset management for road networks ........................................ 10 Typical road condition deterioration with time................................................. 12 Equitable and economically efficient standards .............................................. 15 Relationship between maintenance standard and transport costs ................. 16 Central role of information in the asset management process ....................... 19 Structure of Austroads Guide to Asset Management with focus on Part 1 ..... 22
Austroads 2009 — ii —
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
1
INTRODUCTION
1.1
The Need for Asset Management
Effective asset management is of critical importance for all transport agencies and managers of road infrastructure because:
Roads and associated infrastructure are vital links in the chain of communications providing access and mobility for communities and industry.
The value of road infrastructure assets for all classes of roads in Australia and New Zealand is extremely high compared to other public infrastructure; of the order of A$150 billion dollars in replacement cost terms. This equates to approximately 50% of the total government capital investment in education, health, energy, mining and manufacturing combined.
Effective stewardship is essential to help ensure public safety, for retaining the value and serviceability of these assets for future generations, and for providing best value to users and investors.
The government and the community demand increased accountability for effective and efficient spending of public funds.
Competition for limited funds across government and other sectors is increasing.
1.2
The Aims and Benefits of Asset Management
The key asset management objective contained in the Austroads Assets Strategy is to minimise the whole of life cycle costs of road assets, whilst aiming to meet the needs and expectation of the community and other stakeholders who use or benefit from the asset, and to fulfil government objectives in terms of safety, environment and equity of access. Within this context, its main focus is on the management and preservation of physical assets. Thus, when asset managers speak about whole of life cycle costs (WOLCC), they mean those costs incurred by the responsible road agency as well as the costs incurred by road users, such as vehicle operating costs, travel time and crash costs (see Figure 2.4). In an ideal situation, where funding is not constrained, the best possible outcome for the community is achieved when the sum of road agency costs and road user costs is minimised. To meet these objectives, asset managers should ensure that:
Assets are managed to conditions which are appropriate for intended use.
The immediate and long-term budget requirements, together with the consequences of budget variations, are explicit.
Risks associated with asset use are managed, recognising the duty of care owed to the public, with emphasis given to safety and minimising environmental impacts.
1.3
Definition and Scope of Asset Management
Roads exist as part of an integrated land transport system as a service delivery arrangement. Therefore road system managers need to have a strategic view to manage demand and match demand with supply, through the ongoing provision of new and upgraded links and maintenance of existing stock to ensure the least long term cost to the community. It is essential that this context be borne in mind even in addressing the more routine maintenance activities to ensure cost-effective solutions are being delivered.
Austroads 2009 — 1—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
Whilst the term asset management has a variety of interpretations in terms of scope, in the broadest sense total road system management includes all aspects concerned with the provision, operation, maintenance, renewal and disposal of road infrastructure assets, such as:
transport planning
traffic modelling
infrastructure maintenance, preservation, provision and renewal
network operations (meaning road use management issues)
project evaluation of new road infrastructure, or major projects
project level preparation and implementation of works
pavements, materials and bridge technology
road design
road safety
traffic engineering.
However most of these functions are well documented in the Austroads Guide to Pavement Technology and the Austroads Guide to Asset Management complements these other guides by focusing on best practice management of the physical infrastructure. Therefore, for the purposes of this guide the definition of road asset management is: Road asset management is a comprehensive and structured approach to the longterm provision and maintenance of physical road infrastructure using sound engineering, economic, business and environmental principles to facilitate the effective delivery of community benefits. It focuses on the physical asset recognising that:
The management of physical assets is not an end in itself, but is undertaken to ensure the operating functionality of the road network.
Purely ‘asset-oriented’ interventions will prove constraining and potentially too expensive by not keeping a broad enough focus on all possible solutions.
Whilst specialised sections of member agencies are actively concerned with the provision of new assets, asset management practitioners must be aware of the ongoing management implications of expansion decisions.
Asset managers need to make decisions in the knowledge of road use management (RUM) strategies and provide feedback to the road use managers in order to ensure optimal use of current assets.
1.4
The Austroads Integrated Asset Management Guidelines for Road Networks
1.4.1
Introduction to the IAM Guidelines
In establishing best practice in asset management, Austroads has recognised the need for:
a consistent framework of integrated asset management planning processes
associated implementation guidelines for practitioners.
Austroads 2009 — 2—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
Thus, in 2002, Austroads published a set of Integrated Asset Management Guidelines for Road Networks (Austroads 2002b), referred to as the IAM Guidelines. These are fundamental to the fulfilment of Austroads’ asset management objectives and, therefore, complement the aims of this guide, and will remain as a ‘flagship’ publication within the Austroads Guide to Asset Management. This section of the guide summarises the scope and contents of the IAM guidelines and places them in context by identifying links with the best practice recommendations and examples provided herein and encouraging commitment to the following key principles:
adoption of a rigorous and cyclic process-based approach
development of clear business processes and organisational accountabilities
continuous improvement in asset management practices and human resource skill development.
In so doing it describes:
the asset management process
the main stages of an asset management implementation program
the role(s) of the asset manager.
1.4.2
Asset Management as a Process Approach
To aid the establishment of a consistent framework of processes and procedures for improving asset management practice, Austroads has adopted a conceptual framework which comprises three main parts and seven phases as shown in Figure 1.1 and Table 1.1. Table 1.1: The asset management process Asset management strategic planning Part 1
Phases 1 to 4 * Define objectives Form asset strategies Develop investment programs Identify asset maintenance needs
Setting asset management objectives, and defining a strategic plan based on identified corporate and stakeholder requirements. The asset management strategic planning process is the major impetus to the effective working of asset management.
Asset management actions Part 2
Phase 5 * Implement works programs
Creation/acquisition, operation, rehabilitation and replacement, disposal/rationalisation of the agency’s assets.
Asset management performance feedback Part 3
Phases 6 and 7 * Audit Review
Auditing the implementation and reviewing the outcomes of asset management actions to gauge their effectiveness in satisfying organisational strategies. The results of such reviews are used as inputs to subsequent strategic planning cycles.
Refer to Figure 1.1. Source: After Austroads (2002a).
This conceptual framework has since been developed further and personalised by some state road authorities as part of their internal asset management practice. Many organisations have also systematised this process, in terms of establishing corporate procedures and complementary information systems and decision support tools. The process and procedures are fundamental, and provide the basis for specifying technological systems.
Austroads 2009 — 3—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
Source: After Austroads (2002a) with minor adaptation.
Figure 1.1: Integrated asset management process flow diagram
Austroads 2009 — 4—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
The scope of network level asset management covered by the Guide to Asset Management concentrates on the provision and maintenance of physical infrastructure, shown as a subcomponent of Figure 1.1. However, it does not ignore the need for complementary activities and the benefits arising from an integrated approach, and seeks to alert asset managers about the range of infrastructure-oriented and other solutions at their disposal. The strategic planning stage is vital to effective asset management and consists of:
The Planning Sub-Process, which describes the overall process flow, and outlines the need for various frameworks, standards and strategies.
The Information and Communication Sub-Process, which deals with the flow of information from the Planning Sub-process. This information serves to involve and inform external stakeholders, and facilitates decision making at different levels of an organisation by articulating internal objectives, strategies and plans.
Whilst strategic planning may be performed on a multi-year basis linked to an authority’s planning and funding cycles, specific components fit an annual cycle, including:
asset performance gap analysis, which produces a total needs program
optimisation and prioritisation of options and proposed funding scenarios and an outline of works programs
submission of agreed work program.
The achievement of objectives through monitoring (Phases 6 and 7) provides feedback on the overall process allowing strategies to be reviewed and further actions planned. Organisational objectives, strategies and standards must also be regularly reviewed at least for current relevance. 1.4.3
Implementation and Continuous Improvement in Asset Management Practices
Asset management is a way of doing business in the broadest sense. It is not simply about implementing certain activities to achieve specified technical standards, nor is it primarily concerned with the application of modern software tools, although each have a role to play. It is in fact much broader. It is about delivering better performance results through appropriately targeted investment in the introduction and refinement of improved people skills, products and processes. The ultimate goal is to deliver benefits to all road transport stakeholders. Four sequential stages are recommended to progress a road agency from the early stages of initiating an asset management program to full implementation of the Austroads IAM process, namely:
Stage 1
Program establishment
Stage 2
System design and development
Stage 3
Pilot planning cycle
Stage 4
General implementation.
Whereas many readers of this document will belong to institutions with established practices, the Austroads Guide to Asset Management recommends a structured re-assessment of current organisational practice to identify priority areas for improvement. Many reputable organisations have adopted a similar approach and reaped significant benefits from so doing (AASHTO 2002 and VicRoads 2004a).
Austroads 2009 — 5—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
1.5
The Role of Asset Managers
The role of asset managers in integrating organisational decisions embraces the following:
providing a link between strategic goals and longer term processes and annual project level decisions
providing a link between asset creation and asset maintenance decisions
providing a link between agency road use management and physical asset decisions
considering all asset classes – pavements, structures, other road-related infrastructure
ensuring consistent communication between legislators, community, stakeholders, agency executive, frontline practitioners
ensuring the appropriate management and flow of asset related data and information across the organisation in order to inform asset strategy development and monitor asset performance
providing a link between finance, planning, human resources, information and delivery functions of the organisation
providing asset performance feedback to inform future policies and strategies. Table 1.2: Differences in functional roles Management function Network information
Network planning
Programming
IAM phases or related activities
Monitoring and evaluation
Organisations concerned
All phases and activities
Management and reporting of information on road assets Importation and export of data to analytical and reporting tools
Owners, asset managers and service providers
IAM Phases 1 and 3
Formulation of objectives and associated levels of service and standards
Owners and sectoral policy advisers
IAM Phases 2 and 3
Developing strategies and resource requirements to support defined levels of service, standards and objectives, including use of non-build solutions
Owners and asset managers or operators
IAM Phase 4
Network screening to identify candidate sections Production of a long list of priority sections with ranking based on economic criteria, under budget constraint Determining the necessary work program to meet performance objectives
Asset managers or operators
IAM Phase 4 and Transport Planning
Economic (and financial) feasibility of alternatives for rehabilitation, new investment or capacity expansion
Owners and project/asset managers or operators
IAM Phase 5
Project investigation and design of works Preparation and issue of contracts and works instructions
Project/asset managers or operators
IAM Phase 5
Planning and undertaking major or minor works to be done on specific sections and projects
Service providers and project/asset managers
IAM Phases 6 and 7
Measuring achievements against key performance indicators Assessing future asset management strategies and plans
Owners Asset managers or operators and service providers would be expected to implement internal QA systems as part of each specific function
Preparation
Implementation of physical works
Typical aims
Source: Adapted from Robinson et al. (1998).
Austroads 2009 — 6—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
Organisations, and individuals, should aim to identify their role in the overall process. Identifying such differences in functional roles, as illustrated by the examples in Table 1.2 will help improve effectiveness through focusing on particular tasks and doing them well. In so doing, the following points should be emphasised:
ensuring that planning accommodates non-build solutions
undertaking comprehensive project preparation activities, including economic feasibility, particularly for major works
encouraging increased involvement of project management and delivery staff in preparation and implementation activities.
1.6
Relationship and Synergies with the National Guidelines for Transport System Management in Australia
Road asset management needs to take place in support of total (land) transport system objectives, which in turn aim to meet the transport needs of the community. At the highest level transport contributes to broader societal and whole-of-government objectives. The challenge therefore is for road asset management to consider and contribute in a proactive manner to meeting this demand, and not simply respond with a supply-side approach. The Australian Transport Council (ATC) has published National Guidelines for Transport System Management in Australia (ATC 2004) to provide a framework for non-urban land transport decisions. These guidelines address the Australian Government’s approach to funding, planning, developing and managing Australia’s national land transport infrastructure. The National Guidelines address multiple modes, both road and rail, and are primarily concerned with the designated national land transport network and its corridors, although the overall framework is relevant to all classes of transport infrastructure and associated modes. The National Guidelines adopt a similar seven-phase approach as endorsed by Austroads, and aim to achieve transport system objectives which are vertically linked, and integrated as illustrated in Figure 1.2. The five-phases illustrated in the Figure are complemented by two further phases, namely project and program implementation, and post-completion review. The National Guidelines also recognise that direct linkages will exist between non-sequential phases, e.g. between policy choices and program structure, such as regional Auslink programs, black spot improvement programs, etc. Further examples would include the balance between the routine maintenance, preventative maintenance and rehabilitation components of an overall road infrastructure preservation strategy. A key requirement is to ensure ‘strategic fit’ between high level objectives and project and program responses. To achieve this requires appropriate strategies to be established and policy choices to be made. Examples of the latter include:
the degree to which desired outcomes should be pursued through land use policy developments rather than applications of transport instruments alone
the preferred role of infrastructure versus non-infrastructure strategies and investment
the strategic emphasis which should be given to such issues as road freight versus rail freight as preferred land transport modes
the funding of capital (new asset stock) versus maintenance (existing asset stock) investment
Austroads 2009 — 7—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
the relative weights given to different objectives
the degree to which an equity objective should be pursued to complement an economic efficiency objective in defining service levels and evaluating investment alternatives.
Source: After Australian Transport Council (2004).
Figure 1.2: Hierarchy of linked objectives for transport system development
The current version of the National Guidelines is predominantly related to large-scale capital investment on a selected part of the total land transport system, while this guide is concerned with a network-oriented approach to road infrastructure preservation covering all road classes. However, the above issues are equally pertinent to both sets of guidelines and are addressed throughout this document. Road asset managers should familiarise themselves with the National Guidelines and always seek to support the transport needs of the community in its broadest sense. In addition, it should be understood that this new, integrated approach to transport system management lends itself to the development of strategic long-term directions which promote the development of scenarios for anticipating future demand for transport services. A number of Austroads members have adopted this approach as part of their strategic planning process, see for example Queensland Department of Main Roads (2002) and Queensland Transport/ Queensland Department of Main Roads (2000), thus helping to ensure adoption of integrated solutions to meet society’s needs, both now and in the future. Such initiatives are encouraged amongst all organisations.
Austroads 2009 — 8—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
1.7
Achieving Effective Asset Management
To achieve effective asset management this guide offers guidance and best practice examples of the following asset management principles:
adoption of a rigorous, and cyclic process-based approach which is policy-driven and results oriented and customer focused
manages current assets and provides for future assets
provides a defined level of service
develops cost-effective programs for the long-term
manages risks associated with asset failures
requires performance monitoring, audit and feedback
employs appropriate quality information and decision support tools
encourages continuous improvement in asset management practices and human resource skill development
encourages development of clear business processes and organisational accountabilities.
Accompanying commentaries elaborate the above principles in the following areas:
characteristics and example key results areas and key performance indicators
increasing efficiency through road use management
management of heavy vehicle access
service levels and intervention levels
whole of life cycle costing
managing risks.
Austroads 2009 — 9—
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
2
OVERVIEW OF KEY ASSET MANAGEMENT PRINCIPLES AND PRACTICES
2.1
Policy-driven and Results Oriented and Customer Focused
Asset management is conducted within the context of organisational goals, policies and budget constraints. Goals and policies must be established within a framework which incorporates community input. Performance objectives provide a way to convey to the community how agencies are managing public assets. Figure 2.1 illustrates how asset management strategies aim to meet these needs and are developed from a number of elements. An understanding of how they relate is necessary to develop and review the effectiveness of an overall strategy. These relationships also provide a framework to monitor and review existing strategies.
Figure 2.1: Elements of asset management for road networks
In recognition of the principle that roads should be treated as a service to the community, Phase 1 of the Integrated Asset Management Process requires clear assessment and definition of ‘Road Agency and Stakeholder Requirements’ and for these to be articulated in terms of key results areas (KRAs) and key performance indicators (KPIs). Stakeholder and community input through surveys, focus groups and other structured methods is an essential requirement of good asset management. Customer input is fundamental in setting standards and must be followed by ongoing review to track whether customer expectations are being achieved. Austroads have and continue to undertake significant studies in this area, see for example Tsolakis and Thoresen (1998) and the Austroads publication Guidelines for Community Input in Setting Levels of Service and Intervention Standards for Road Networks (Austroads 2002b). These should be consulted prior to planning, implementing and presenting the results of surveys.
Austroads 2009 — 10 —
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
From a broad asset management perspective, important considerations include:
a need to start at a network level to agree overall principles and prevent local issues from dominating outcomes from the outset
giving sufficient attention to study design so that the objectives of any consultation are fulfilled as far as possible
identifying who the ‘community’ is and ensuring appropriate representation for the task in hand, including those stakeholders that represent the entire community, those with a local social interest and those with a clear financial interest
being clear about the value of both qualitative and quantitative surveys, where the latter may help explain why certain issues are important to users, whilst the former may help quantify their importance
focusing questions to represent the type of road environment, including different rural and urban situations, and circumstances where investment is driven by traffic demand or mostly by social justice and other factors
distinguishing between circumstances where a trade-off under a zero-sum scenario may be appropriate, and those where a more direct, commercial ‘willingness to pay’ approach may be best suited.
Agency KRAs should be defined for each generic area in which improvement is required or performance should be monitored. They should be in line with corporate objectives and should reflect an agency’s internal operations and performance, and the service provided to users or areas affecting other stakeholders. KRAs should embrace economic, social, safety, environmental, customer service and financial performance. For example:
ensure a safe road infrastructure
deliver a target level of service, including meeting ride quality and capacity targets which contribute to overall transport efficiency
preserve the physical assets and provide continuity of access
contribute to a sustainable environment, by considering environmental outcomes in planning and decision making and by employing appropriate methods and measures to reduce impacts and enhance environmental values (Austroads 2006).
Asset management objectives, or KPIs, should also be formulated which are more tightly defined in terms of indicators and target criteria. Consequently, these KPIs should be specific, directly and objectively measurable, attributable, affordable, capable of being monitored, achievable and be used to:
formulate strategies and therefore be applied in IAM Phase 2
determine asset management actions as part of IAM Phases 3 and 4
monitor the achievement of organisational goals and service levels in IAM Phases 6 and 7.
Austroads National Performance Indicators (Austroads 2001) facilitate assessment of both road system and road agency performance of Austroads member authorities and can provide a basis for defining suitable indicators for other organisations. The Austroads performance indicators are available on the Austroads website and at the time of writing comprise a set of 36 indicators, ten of which are classed as road agency performance indicators. Specific targets are not set, but statistics related to each indicator are published and provide a basis for monitoring trends in service levels and other indicators.
Austroads 2009 — 11 —
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
For asset management, the most widely used road agency performance indicator in Australia and New Zealand is Smooth Travel Exposure (STE); defined as the proportion of travel undertaken each year on roads less than a specified level of roughness. Road authorities report this and other information, typically at annual intervals, and also record achievements against the target or limiting values which they aim to achieve. Reporting may be made separately for different classes of road, and targets may also vary.
2.2
Managing Current Assets and Providing for Future Assets
The development of road asset management strategies forms the core of IAM Phase 2. Whilst investment programs concentrate on maintenance and rehabilitation of road pavements and bridges, they should be developed in coordination with road use strategies. The level of road system performance provided by the asset can be affected by management actions which influence the need for travel, the type of travel and types of vehicles allowed. An effective infrastructure management strategy should address both existing and new assets. It should contain a suitable range of interventions which are essentially preventative in nature and, as illustrated in Figure 2.2, can reduce long-term costs. The ‘stitch-in-time’ policies used by a number of Australian road agencies, which are particularly applicable to the preservation of pavement assets, adhere to this principle, for example see VicRoads (1993). These and similar strategies are highly recommended as they have been found by many practitioners to provide a return on investment of around two or three times that obtained when assets are allowed to deteriorate in an uncontrolled manner, or to a condition where full replacement is necessary.
Source: After SADC (2003).
Figure 2.2: Typical road condition deterioration with time
Austroads 2009 — 12 —
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
Those components of an infrastructure (preservation) strategy which seek to ensure adequate performance of existing assets comprise an appropriate mix of the following road asset management responses:
Routine maintenance activities which address minor defects on the carriageway and structures, off-carriageway works including grass cutting, drain clearing and the like, and essential activities to remove obstacles from the road and ensure a base level of road safety. The need for such activities should not be underestimated. Considerable evidence exists which demonstrates that rates of deterioration are higher in the absence of effective routine maintenance, including where basic drain clearing is not performed to an adequate level.
Preventative periodic maintenance designed to reduce future deterioration by timely surface interventions to limit the need for expensive rehabilitation, and to ensure minimum skid resistance and general safety levels are maintained. Such works can be relatively modest in unit cost terms, but highly effective when based on whole of life considerations and not by adopting a ‘worst-first’ approach.
Rehabilitation which targets roads whose ride quality has deteriorated significantly, or which display inadequate structural capacity for current or future traffic loading. By their nature, such works are very costly and might be expected to be of the order of five to ten times more costly than a preventative treatment program. Where a large program of rehabilitation exists, say greater than 3-4% per annum, it is likely that this reflects a lack of investment in periodic interventions, neglect, poor implementation or a discrete increase in traffic loading patterns. Timely intervention of appropriate quality is best. Conversely, where the replacement program is very small, say less than 1% per annum, and programmed maintenance costs are increasing and condition is falling, it is likely that expenditure on rehabilitation is too low. Again, timely rehabilitation is required to ensure whole of life cycle costs are minimised. Appropriate solutions should be developed based on best practice, for example see Austroads (2004a).
In today’s environment, the above set of responses needs to be extended to include:
Capacity improvement programs to optimise traffic flow, including identifying the need for additional traffic capacity or improved traffic management measures. Solutions require considerable co-ordination both within and between agencies and in many cases the optimum response may be through improved road use management.
Road safety and blackspot improvement programs to reduce the incidence of road crashes and provide appropriate facilities for pedestrians and cyclists and other vulnerable road users.
Management strategies for heavy vehicle access to deliver efficient freight services thus helping provide customers with goods at affordable prices. However, asset managers are often worried at the existence of very heavy or oversized vehicles and the potential for accelerated damage to roads and structures. Safety may also be a concern. It is important therefore that such issues are taken into account in both infrastructure and road use management. Strategies need to recognise the current state of knowledge regarding heavy vehicle contributions to the damage of road pavements and structures, and should aim to undertake any analysis in a nationally consistent manner (Austroads 2004b).
Austroads 2009 — 13 —
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT
2.3
Providing a Defined Level of Service
As per Phase 3 of the Integrated Asset Management Process, asset strategies should be developed with clear level of service objectives providing the basis for:
planning needs
assessing risks
gauging the quality of delivery.
Levels of service should be established for:
all classes of assets, and their use, including for basic access
major structures such as bridges and culverts
environmental and social impacts, these being amongst the least visible yet most important.
Each agency must establish levels of service appropriate to its organisational goals and resource constraints, and consistent with the perceived needs of the community. Absolute levels of service should be varied with respect to the role and importance of the asset and its use within the road system. Higher trafficked roads warrant a higher level of service. This increases overall transport efficiency through better ride comfort and higher travel speeds, and helps reduce costs to road users. Lower trafficked roads provide fewer opportunities for direct road user savings to offset investment costs, and therefore associated service levels are generally lower. However, minimum levels of service should be encouraged to ensure basic levels of safety and accessibility to essential services, and to minimise loss of assets. Access also promotes productivity, and is an essential catalyst to growth in economic and social terms. Most asset managers and planners recognise such linkages, and there is general acceptance that a minimum level of service, which may be varied based on demand, should be adopted as a general policy. The choice therefore is to set levels of service which strike a balance between being equitable and in being economically efficient. The range of possible options is illustrated in Figure 2.3. Typically, practical considerations usually warrant the adoption of ‘equitable standards’, which neither favour economically efficient standards, nor uniform standards. The adoption of a set of ‘stepped minimum standards’ can achieve a comparable result, and may form the basis of an ‘economic base case’ for investment analyses. Acknowledging this is generally accepted as good practice, and is highly recommended.
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Source: After ATC (2004).
Figure 2.3: Equitable and economically efficient standards
Most road authorities publish target level of service criteria which are based on a hierarchy related to function and overall use. In many cases these are also directly related to engineering design guidelines with respect to the safety, speed and comfort of travel. The availability of such targets provides a further yardstick against which performance can be monitored and reported later in Phases 6 and 7.
2.4
Developing Cost-effective Programs for the Long-term
Road investment programs present a set of programmed management actions to achieve performance objectives and are linked to the expected life of the assets and their maintenance treatments. Road investment programs are formulated on the basis of a gap analysis which is performed during IAM Phase 3, and are delivered as a ‘Total Needs Program’ in IAM Phase 4 and should be presented with accompanying plans for:
the entire road network
a region
a road corridor
a road link, or project.
Significant benefits can be gained by employing solutions planned using whole of life cycle costing (WOLCC). WOLCC involves an evaluation of all the component costs incurred over the whole life of a project. By adopting a long-term view of the road system, comprehensive WOLCC promotes consideration of total costs including construction, maintenance and operational expenditure and all of the variables involved in the evaluation such as user costs (delays, travel time and vehicle operating costs), safety costs and associated maintenance and rehabilitation costs, agency capital costs and routine life cycle maintenance costs.
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The manner in which the component costs change is illustrated in Figure 2.4, where increases in construction/rehabilitation expenditure reduce the costs to road users. The optimum (economic) standard is obtained when the total transport costs are minimised, and this optimum varies in relation to traffic level and the associated mix of costs. For a given traffic level, if the road is built to a standard higher than optimum or if the timing of its implementation is either premature or significantly delayed, then the benefits would not sufficiently outweigh the additional costs and therefore the solution would be sub-optimal. Care should be taken to avoid ‘false economies’ where expenditure shortfall below the optimum level of investment leads to significantly greater transport costs and long-term asset management backlogs. WOLCC employs the results of deterioration, the effects of treatments and user cost modelling on the infrastructure to compare alternative investment strategies, the purpose of which is to:
determine how asset life may be best extended by controlled maintenance
determine the optimum timing, intervention levels and mix of treatments to be employed.
WOLCC techniques applied at a system-level allow competition for funds to take place between projects, with the aim of maximising benefits across a road network in order to prepare long-term road development and maintenance plans under different funding scenarios.
Source: After SADC (2003).
Figure 2.4: Relationship between maintenance standard and transport costs
2.5
Managing Risks Associated with Asset Failures
Risk management is a core component of asset management activities. Key risks managed through asset management are:
financial risks – addressed through the adoption and enforcement of asset preservation and preventative maintenance policies (see Sections 2.2, 2.3 and 2.4 above)
operational risks – by appropriate planning and operational responses in order to limit harm to individual members of the public or to their property.
This increased alertness has resulted from changes in legislation which was promulgated following the Australian High Court’s decision in 2001 that the law of negligence should apply to roads. Austroads 2009 — 16 —
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It means that Australian road authorities now owe a ‘duty of care’ to road users by exercising their maintenance powers to protect (the users) from foreseeable harm. Failure to effectively manage the maintenance of roads (and road-related assets) to an appropriate and affordable standard places authorities in a position of liability on the grounds of ‘misfeasance’. Fulfilling this requirement demands that road asset managers demonstrate they have processes and defendable plans in place to demonstrate their intent to act responsibly. The issues surrounding the management of risk are complex since they involve:
reasonable business processes
policy decisions
management decisions based on engineering analysis and risk management
court rulings on adequacy.
Fortunately, an appropriate risk management process has similar components to those used in asset management. Asset owners, and delegated managers, should demonstrate compliance with the intent of the law. This means that certain proactive actions aimed at managing risk are necessary including:
regular inspections
managed asset information
maintenance standards, comprising the inspection periods, defect severity and response times, developed through community input and aligned to available budget
established and documented business processes and management systems covering policy development, asset monitoring, priority setting and decision making, resource allocation, program delivery and audit and incident response.
Thus ‘risk management’ embraces all IAM Phases and is fundamental to the successful delivery of outcomes to the users. Provision to manage such risks should form an essential component of all asset management activities, with priority given to minimising operational risks.
2.6
Performance Monitoring, Audit and Feedback
As noted in Phases 6 and 7, monitoring of asset performance, audit of work carried out and review of performance achievement completes the cycle of asset management. Asset performance is monitored by physical condition measurements of all asset classes (e.g. roughness, surface condition, strength, bridge strength, signage reflectivity). Monitoring processes need to be selected to enable assessment of customer satisfaction, needs planning or risk assessment. Monitoring processes vary and must be selected or structured to provide relevant information at an affordable price. Asset inventories must be updated to reflect completed work and new condition/inventory measures. Asset owners are provided with information from delivery function areas through ‘as constructed’ drawings and plans for ongoing asset maintenance requirements.
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Asset valuation is one method of monitoring asset management effectiveness and is also a technique for facilitating the translation of engineering assessments into financial terms for consideration at an accounting level. Various approaches to asset valuation exist, including both condition-based and age-based depreciation methods (Austroads 2000). Whilst no single approach is universally accepted, the condition-based approach is favoured by many asset managers. However, commercial or technical obsolescence are also important factors. Differences in approaches also include how various asset classes and their component parts are valued, e.g. separating the valuation of road surfacings, pavements and lower layers, dealing with land under roads, etc. However, the main requirement is to achieve consistency in reporting asset values, including trends, and to allow the effect of investment strategies on future asset value to be determined. This aids effective communication with financial and general managers, as well as politicians who represent road users and the local community, and helps to ensure that road management decisions are made in a broad community context. On completion of any asset management cycle, the agency should undertake a review of the existing road asset performance, infrastructure strategies, and whether agency and stakeholder requirements have been met or exceeded. A key part of the asset management process is communication with stakeholders. Stakeholders may include politicians, other government agencies, industry, communities and road users. Communication with stakeholders may consist of seeking information (such as in setting levels of intervention standards) or in providing information about a future program of investment. Strategies for addressing the above requirements are detailed in other parts of the Guide to Asset Management.
2.7
Use of Information Systems and Decision Support Tools
Information is fundamental to asset management and, as illustrated in Figure 2.5, is used in all IAM Phases to inform decisions and quantify the results of implementation. Essential information includes road asset inventories, asset condition, historical records of construction and maintenance, traffic and other road use data, unit costs, etc. This data then helps inform the analyses and decisions taken throughout the asset management process. As technology has developed, more sophisticated and comprehensive road management information systems, data bases and user tools to collect, store and process data have been incorporated into asset management practice. Many agencies now use sophisticated pavement and bridge management systems to facilitate the management of large amounts of data and to automate some of the analysis required as input to asset management decisions. These systems have evolved to the point where they have significant potential to improve the overall effectiveness of the asset management process and communications with stakeholders. However, substantial resources can be required to operate such systems effectively and care is needed in their design and implementation. A pragmatic approach to developing and implementing formal information systems and decision support tools includes:
commitment to quality at all levels
clear system specification aligned to documented business processes including defining the scope based on intended use and the outputs users will require
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simplicity, since this will ultimately retain a greater feel of transparency and comprehension by users
selection of appropriate models and information categories to produce required outputs, and planning for data collection and processing
focus on appropriate and affordable data collection strategies
priorities for staged system implementation
appropriate skilled resources dedicated to the task.
Furthermore, asset managers should ensure that the level of system sophistication and comprehensiveness is appropriate to the level of resources of the organisation and the level of decision. As noted earlier, the importance of sound processes and frameworks and good practice in all elements of asset management are more important than having a sophisticated system. Robinson et al. (1998) and TRL Overseas Centre (1998) offer additional guidance on the design and implementation of road management systems.
Figure 2.5: Central role of information in the asset management process
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2.8
Continuous Improvement in Asset Management Practices and Human Resource Skill Development
Options for greater efficiency, increased knowledge, better technology, training and the like. all need to be pursued by agencies to achieve community benefits. All planning processes existing within road authorities and corporate entities concerned with asset management will benefit from an appraisal of current practice to review the need for improvements. A business improvement program should be undertaken at periodic intervals. An assessment of business processes forms a core component of ‘good practice’ in asset management. Specific programs need to be tailored to meet the needs of particular organisations. Such reviews can reveal blind spots in an organisation’s processes, or in the message they communicate. It offers a means of providing state-of-the art benchmarks and identifying possible gaps. Developing team and individual competency to achieve best practice requires a people centred approach, in which it is essential to understand the roles and responsibilities to be filled and to establish appropriate levels of asset management competencies. The process for implementing an asset management system within an organisation is described in the Integrated Asset Management Guidelines for Road Networks (Austroads 2002a). Other organisations provide similar advice. For example, in their Transportation Asset Management Guide, the American Association of State Highway and Transportation Officials (AASHTO 2002) recommends the application of a ‘self-assessment’ process to help an authority to characterise its asset management practices and identify opportunities for improvement. The AASHTO guide also reports a summary of the benchmarking exercise they undertook amongst participating authorities, and this provides a point of reference for readers.
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3 3.1
THE AUSTROADS GUIDE TO ASSET MANAGEMENT Structure
The Austroads Guide to Asset Management complements the other Austroads guides which embrace a wide range of subjects and which are readily available, accessible and comprehensive resource for practitioners. Austroads and others (e.g. state road authorities and industry) have compiled a great deal of knowledge on the tools, techniques and practices associated with the management of physical road infrastructure. The Austroads Guide to Asset Management assembles this knowledge into a single authoritative electronic guide comprising eight parts, as shown in Figure 3.1. The target audience for the Guide to Asset Management includes all those involved with the management of the physical road and bridge infrastructure assets as well as industry, and students seeking to learn more about the fundamental concepts, principles, issues and procedures associated with the management of these assets. The guide includes an introduction to asset management (this document) and offers guidance on how to determine and plan to accommodate stakeholder/community expectations, formulate and review asset strategies, develop works and investment programs, assess asset performance and undertake audit and asset valuation. Each part of the guide is accompanied by ‘commentaries’ identified within the text which amplify the principles and processes by use of examples. As part of a developing guide of live documents, it is recognised that there will be periodic revisions to this ‘peak document’ and other parts within the guide and that some previous Austroads publications will be superseded by the Austroads Guide to Asset Management. The Austroads website should be referenced (http://www.austroads.com.au) to ensure the reader is accessing the latest version of this document. It is also recognised that asset management procedures will vary between jurisdictions and that in a number of cases procedures may also be determined by central government agencies to ensure consistent investment evaluation across portfolios. For this reason this guide does not prescribe detailed processes. Instead it seeks to introduce the overall general principles and process of asset management in line with best practice and to offer guidance.
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AUSTROADS GUIDES ASSET MANAGEMENT
GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT (INCLUDING SCOPE OF OTHER PARTS)
BRIDGE TECHNOLOGY PAVEMENT TECHNOLOGY
PART 2: COMMUNITY AND STAKEHOLDER REQUIREMENTS
PROJECT DELIVERY PROJECT EVALUATION
PART 3: ASSET STRATEGIES
ROAD DESIGN
PART 4: PROGRAM DEVELOPMENT AND IMPLEMENTATION
ROAD SAFETY ROAD TRANSPORT PLANNING
PART 5: PAVEMENT PERFORMANCE
ROAD TUNNELS
PART 6: BRIDGE PERFORMANCE
TRAFFIC MANAGEMENT
PART 7: ROAD RELATED ASSETS – PERFORMANCE PART 8: ASSET VALUATION AND AUDIT
PART 1 – INTRODUCTION TO ASSET MANAGEMENT SECTION 1: INTRODUCTION (INCLUDING WHY, WHAT, HOW, SCOPE & DEFINITION) SECTION 2: OVERVIEW OF KEY ASSET MANAGEMENT PRINCIPLES AND PRACTICES SECTION 3 : THE AUSTROADS GUIDE TO ASSET MANAGEMENT
PART 1 – COMMENTARIES COMMENTARY 1: CHARACTERISTICS AND EXAMPLE KRAS AND KPIS COMMENTARY 2: INCREASING EFFICIENCY THROUGH ROAD USE MANAGEMENT COMMENTARY 3: MANAGEMENT OF HEAVY VEHICLE ACCESS COMMENTARY 4: SERVICE LEVELS AND INTERVENTION LEVELS COMMENTARY 5: WHOLE OF LIFE CYCLE COSTING COMMENTARY 6: MANAGING RISKS
Figure 3.1: Structure of Austroads Guide to Asset Management with focus on Part 1
3.2
Relationship to other Austroads Publications
The Austroads Guide to Asset Management is complemented by the Integrated Asset Management Guidelines for Road Networks (Austroads 2002a). This describes the overall framework for road asset management adopted by Austroads members and provides guidance on the effective implementation of asset management processes within a business. The Integrated Asset Management Framework forms the basis for the process-based approach which is the foundation of this guide, and its various parts. The Guide to Asset Management supersedes the earlier Austroads publication — the Road Asset Management Guidelines (Austroads 1994).
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Additionally, decision makers will need to ensure other documents such as the Austroads guides to Road Transport Planning, Project Evaluation and Road Safety are referred to where appropriate. A Glossary of commonly-used terminology associated with asset management and other useful information on the Australian and the New Zealand road systems is available on the Austroads website (http://www.austroads.com.au).
3.3
Scope of other Parts of the Austroads Guide to Asset Management
This Introduction to the Austroads Guide to Asset Management presents the concepts and guiding principles of asset management. These components are then described in more detail in Parts 2 to 8 of the guide. A summary of the scope of these documents is given below. 3.3.1
Part 2: Community and Stakeholder Requirements
The asset management planning process starts with the identification of organisational and stakeholder requirements, and this forms the core of Part 2. Its aim is to foster good practice in the identification of road agency objectives, including how to take account of customer expectations, social and environmental issues, stakeholder input from external agencies and government and organisational priorities. Part 2 encourages the use of effective stakeholder consultation to help identify priorities, potential issues, social impacts, opportunities, alternatives and solutions to problems, and helps to identify those outcomes and levels of service which the community is prepared to pay for. Guidance is given on how to present feedback and information to assist the community in this task by including documentation about budget limitations and trade-offs implicit in the selection of levels of service, including the impact of decisions on agency and road user costs in the longer term. Part 2 also shows how information from the stakeholder / community consultation process can be integrated into the objectives of the organisation. Part 2 provides guidance on how Key Performance Indicators (KPIs), otherwise known as performance measures, should be set to monitor the effectiveness of the asset management process (the works program) towards achieving the KPIs. 3.3.2
Part 3: Asset Strategies
Part 3 is concerned with the development of asset strategies. These asset strategies translate organisational objectives into actions linked to defined KPIs. A complete set of strategies consists of capital investment, infrastructure preservation and road use strategies. It provides guidance on how to evaluate the strategic fit of investment needs with agency strategic plans, and how to ensure an equitable allocation of resources where resources are insufficient and prioritisation is necessary, taking due account of the organisation’s objectives and the broad objective of minimising life cycle costs. However, in keeping with the focus of the guide, which is primarily concerned with the management and preservation of current physical assets, it introduces those aspects of road use strategies and capital investment strategies which are essential inputs to effective road asset management.
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3.3.3
Part 4: Program Development and Implementation
Part 4 addresses the program development process, at which point asset strategies are transformed into defined levels of service and works programs. Part 4 describes the process by which the type and quality of road-related asset that should be provided in a given set of operational circumstances (e.g. for a given demand) is defined by an agency. Each road agency is encouraged to determine its own sets of performance standards, i.e. combining both quantitative indicators and criteria, based on community consultation, economic analysis, existing road standards, and budgetary expectations. Part 4 provides guidance on how intervention criteria may be employed in assessing the current performance of an existing road-related asset against the target asset performance. It also explains how such criteria are used to identify performance gaps that can then be addressed by construction and preservation activities and road use policy interventions. This then leads on to program development at which point an agency identifies intervention options to close the asset performance gaps. These intervention options will comprise the total needs program. 3.3.4
Parts 5, 6 and 7: Asset Performance
Part 5 provides guidance on the establishment and maintenance of asset inventories, and on the monitoring of asset performance. It discusses the need for agencies to measure asset performance against objectives, and therefore is primarily concerned with condition data collection and performance modelling at a network level. Sub-parts include:
Part 5A: Inventory
Part 5B: Roughness
Part 5C: Rutting
Part 5D: Strength
Part 5E: Cracking
Part 5F: Skid Resistance
Part 5G: Texture
Part 5H: Performance Modelling.
Bridges are covered in Part 6 and other road related assets in Part 7. 3.3.5
Part 8: Asset Valuation and Audit
Part 8 provides guidance on how to undertake asset valuation, since such information can provide the asset manager with valuable insights into the long-term management requirements. It also provides guidance on how to implement an audit process to ensure work activities reflect the works program and satisfy the asset and organisational strategies (and in turn stakeholder requirements). Finally, Part 8 describes approaches to presenting information to external stakeholders and other customers by means of public reports and other media.
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REFERENCES AASHTO 2002, Transportation asset management guide, American Association of State Highway and Transportation Officials, Washington DC. Australian Transport Council 2004, National guidelines for transport system management in Australia, 3 vols., Australian Transport Council, Canberra, ACT. Austroads 1994, Road Asset Management Guidelines, AP-109/94, Austroads, Sydney, NSW. Austroads, 2000, Valuation of Road Infrastructure Assets in Australia and New Zealand, by LB Dowling, AP144/00, Austroads, Sydney, NSW. Austroads 2001, Australian and New Zealand Road System and Road Authorities: National Performance Indicators 2000, AP-43/01, Austroads, Sydney, NSW. Austroads 2002a, Integrated Asset Management Guidelines for Road Networks, by R Grove, F Mihai, P Appleby, M Bishop, K Eckeroth, L Leong, D Radcliffe & P Shepherd, AP-R202/02, Austroads, Sydney, NSW. Austroads 2002b, Guidelines for Community Input in Setting Level of Service and Intervention Standards for Road Networks, R Grove, F Mihai, P Appleby, M Bishop, K Eckeroth, & P Shepherd, AP-R201/02, Austroads, Sydney, NSW. Austroads 2004a, Pavement Rehabilitation: A Guide to the Design of Rehabilitation Treatments for Road Pavements, AP-G78/04, Austroads, Sydney, NSW. Austroads 2004b, Pavement Design: A Guide to the Structural Design of Road Pavements, AP-G17/04, Austroads, Sydney, NSW. Austroads 2006, Maintenance Techniques to Reduce Social and Environmental Impacts, by J McRobert & N Houghton, AP-R291/06, Austroads, Sydney, NSW. INGENIUM & IPWEA 2002, International infrastructure management manual, Association of Local Government Engineering of New Zealand Inc (INGENIUM), Thames, New Zealand, & Institute of Public Works Engineering Australia, Sydney, NSW. Kerali, HRG 2000, HDM-4: Highway Development and Management: volume one: overview of HDM-4, World Road Association (PIARC), Paris. Martin, TC, Toole, T, & Oliver, JWH 2004, ‘The development of HDM-4 technology road deterioration models for Australia’s sealed granular pavements’, International Conference on Managing Pavements, 6th, 2004 Brisbane, Australia, Queensland Department of Main Roads, Brisbane, Qld., 19p. Oliver, JWH 2004, ‘Prediction of the life of sprayed seals and the effect of climate, bitumen durability and seal size’, International Conference on Managing Pavements, 6th, 2004 Brisbane, Australia, Queensland Department of Main Roads, Brisbane, Qld., 13p. Prem, H, de Pont, J, Pearson, B & McLean, J 2002, Performance characteristics of the Australian heavy vehicle fleet, National Road Transport Commission, Melbourne, Vic.
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Queensland Department of Main Roads 2002, Roads connecting Queenslanders: a strategic long-term direction for the Queensland road system and Main Roads, Queensland Department of Main Roads, Brisbane, Qld. Queensland Department of Main Roads., Road System and Engineering Group 2005, Traffic and road use management manual, Queensland Department of Main Roads, Brisbane, Qld. Queensland Transport & Queensland Department of Main Roads 2000, 4Seeable futures: transport portfolio scenario-based planning for Queensland Transport and Queensland Department of Main Roads 2000 – 2025, Queensland Department of Main Roads, Brisbane, Qld. Robinson, R, Danielson, U, & Snaith, MS 1998, Road maintenance management: concepts and systems, Macmillan, London. Standards Australia & Standards New Zealand 1999, Risk management, AS/NZS 4360:1999, Standards Australia, Strathfield, NSW. Transit New Zealand 2001, Annual report, 2000/01, Transit New Zealand, Wellington. TRL Overseas Centre, 1998, Guidelines for the design and operation of road management systems, overseas road note 15, Transport Research Laboratory, Crowthorne, UK. Tsolakis, D, Rockliffe, N & Patrick, S 2003, Triple bottom line evaluation of transport proposals, research report ARR 359, ARRB Transport Research, Vermont South, Vic. Tsolakis, D, Thoresen, T, 1998, ‘A framework for demonstrating that road performance meets community expectations’, working document WD R98/003, ARRB Transport Research, Vermont South, Vic. VicRoads 1993, A stitch in time: Victoria’s road maintenance strategy, VicRoads, Kew, Vic. VicRoads 2003, Program development guidelines, VicRoads, Road System Management, Kew, Vic. VicRoads 2004a, VicRoads road management plan, VicRoads, Kew, Vic. VicRoads 2004b, Annual report, 2003/04, VicRoads, Kew, Vic.
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COMMENTARY 1 CHARACTERISTICS AND EXAMPLE KRAS AND KPIS Whatever objectives are chosen, it is important they are designed so that they can be translated to Key Results Areas (KRAs) and subsequently framed, as closely as possible, in terms of measurable key performance indicators (KPIs). For this to occur, KPIs should ideally have the following characteristics:
They should be directly relevant to the assessment of current asset condition, to facilitation of asset management and to prediction of future asset performance.
They should be capable of being managed by the agency.
They should include objective, quantitative measures, whose derivation is clearly understood and whose accuracy is widely accepted.
Their procurement should be affordable and not impose excessive costs on road management agencies or companies.
The specified criterion associated with each measure should be achievable within the foreseeable future, and be established with funding availability in mind.
They should be repeatable, and reproducible.
Considering the various points, the following observations can be made:
There is no point in measuring things that do not matter, or achieving a degree of accuracy that is not necessary.
Where multiple factors play a role, as in the case of road crashes, the road authority should at least aim to monitor rates and trends and include such statistics in annual reports.
Quantitative assessments employing national or internationally accepted standards of measurement and recognised calibration or verification procedures will be appropriate in many cases. However, the results of properly designed qualitative surveys which seek user opinion and feedback are also valuable. See for example Austroads (2002b).
Direct measurement and reporting of specific parameters is preferred over the use of composite indices, as the latter tend to mask the contributions of various factors, making it difficult to plan and manage corrective actions.
Some authorities also choose to distinguish between management performance measures, and road condition measures. In the latter case the measures will also vary and typically reflect the factors considered important to asset management in each jurisdiction. For example, Transit New Zealand (2001) reports specific distresses, such as excessive rutting or poor skid resistance. In other circumstances, surfacing age is used as an indicator of the ‘health’ of a network, having been associated with the durability of surfacings in different climatic environments (Oliver 2004). Examples of KRAs and KPIs reported by VicRoads (2004b) and which extend to consider community and environment indicators for transport infrastructure are shown in Table C1 1 together with published policy objectives and key results areas which are established organisation-wide.
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Table C1 1: Example asset management KRAs and KPIs for transport infrastructure Policy objectives Achieve reductions in road crashes and the cost of road trauma Assist economic and regional development by improving the effectiveness and efficiency of the road transport system Develop a more integrated and sustainable road transport system Minimise the impacts of roads and traffic on the community and the environment Build effective, equitable and efficient relationships with customers by providing suitable access to services in order to assess both road system and road agency performance. Key results areas Road safety Road system management Traffic and transport integration Registration and licensing Organisational performance Financial performance Example KPIs for road system management Condition of the network Proportion of travel on smooth roads Proportion of network with very rough roads % of bridges subject to mass limits % of bridges in very poor structural condition. Construction and maintenance Proportion of network resurfaced Proportion of network rehabilitated Estimated return on economic investment. Environmental and community Number of community consultation plans prepared Number and type of environmental incidents Percentage of road network with roadside management plans. Source: After VicRoads (2004b).
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COMMENTARY 2 INCREASING EFFICIENCY THROUGH ROAD USE MANAGEMENT As the total transport task is becoming larger in volume, and many vehicles are heavier and larger in size, the growth in road traffic continues to outstrip the ability of the community to finance additional asset provision. Therefore, an asset manager is concerned to ensure the effective use of current assets. The complementary application of road use management (RUM) strategies and actions may help limit the rate of asset consumption and optimise use of current assets. A list of examples of RUM strategies and how they relate to asset management issues is contained in Table C2 1 below. Considering RUM as a complementary activity to road infrastructure asset management provides the asset manager with a wider range of solutions. It also encourages the adoption of integrated policies and strategies. Table C2 1 lists a range of common problems and possible RUM interventions. Table C2 1: Management of road use Problem
Possible RUM interventions
High vehicle loadings leading to potential for excessive deterioration and high rate of asset consumption
Limiting the loading on roads and bridges by regulation, legislation and surveillance Promoting use of alternative routes which possess sufficient capacity
Poor utilisation of existing capacity
Improved traffic control and signal coordination Better route signing and travel information Introduction of performance-based standards (PBS) approaches to management of heavy vehicle access (see Commentary 3)
Temporary closure or reduced level of service
Improved incident and emergency response strategies Improved ‘work zone’
Excessive demand
Pricing and charging policies Measures to encourage high vehicle occupancy Promotion of alternative transport modes
Excessive travel time caused by relative location of social and productive activities
Improved strategic planning and land use planning
Comprehensive guidelines for traffic and road use management have been developed in a number of jurisdictions, e.g. in Queensland (QDMR 2005), and further examples exist of improved strategies to manage highly-utilised facilities.
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COMMENTARY 3 MANAGEMENT OF HEAVY VEHICLE ACCESS Managing heavy vehicle access to the road network is currently governed through regulations relating to permissible mass limits, dimensions and configurations and is a key component of an overall road system management strategy. This helps to ensure appropriate levels of safety, and to limit environmental impacts and damage to road infrastructure. The current regulatory system typically comprises general access, public notices and permit operations. General access regulations are broadly similar across jurisdictions in the interests of consistency and a common national transport policy. The rate of consumption of pavement assets, which accounts for a significant proportion of total infrastructure replacement costs, is generally accepted to be proportional to the number of equivalent standard axle repetitions applied by heavy vehicles. For general application, the relative damaging effect of each axle pass is determined based on the ratio of the actual axle load and a standard load raised to the fourth power. However, a wider range of exponents of between 4 and 12 may be applicable depending on pavement configuration and distress mode (Austroads 2004b). Many roads which carry a significant proportion of total freight have evolved over time, usually from access tracks, and have not been designed either in a pavements or geometric sense. Additionally, Australia and New Zealand have extensively used relatively low cost chip-sealed, granular pavements which require careful management to ensure optimal lives are obtained. The challenge faced by both regulators and asset managers has been to develop strategies to help accommodate the significant growth in the road transport task. Simply extending or adding new infrastructure has not been possible because of economic, environmental, land use and social factors. Previous solutions have been very ad hoc and have lead to some unplanned outcomes. To gain more productivity from the road network, the adoption of an alternative performance-based standards (or PBS) approach to regulation has been proposed so that the interactions between vehicles, infrastructure standards, traffic conditions and freight or passenger tasks can be more readily taken into account. The key issues which require consideration from an asset management perspective include:
having sufficient knowledge of the performance of the existing infrastructure system to be able to predict the consequences of adopting a new system
determining the standards to be adopted and how they relate to current regulations and the observed behaviour and interactions between vehicles and infrastructure
assessing the costs and benefits which would result to vehicle operators and asset managers, and what trade-offs are acceptable.
Whilst the current regulatory system remains in place, Australian Transport Ministers have approved a set of 20 standards, comprising 16 safety standards and four infrastructure protection standards (see details in Prem et al. 2002). These provide an optional alternative to the current prescriptive standard. Introduction of the PBS is currently the subject of study and review and agreement. Once implemented, considerable productivity benefits should result.
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COMMENTARY 4 SERVICE LEVELS AND INTERVENTION LEVELS C4.1
Service Levels
The terms ‘service level’, or ‘level of service’, describe the quality of service provided by the asset for the benefit of the customers. Road agencies usually define levels of service in terms of the convenience of travel and the safety performance of the road network. Depending upon demand or strategic importance, a higher level of service may be required for some assets compared to others. For example, ride quality (qualitative) and road roughness (quantitative assessment of ride quality) are two asset management service level measures. The road operating condition can generally be defined as ‘smooth’, ‘rough’ or ‘desirable’ and an agency must decide what standard of ride quality/roughness is acceptable for specific road classes and/or road use. Most communities agree that it is appropriate to have a hierarchy of levels of service such that (in this example) roads with higher demand levels would be maintained to a smoother standard. Roughness is a prime factor in determining vehicle operating costs and consequently an input to determining the timing of treatment interventions aimed at minimising total transport costs (see also WOLCC in Commentary 5). In traffic engineering, the term ‘level of service’ is used to describe the operating conditions within a traffic stream, and relates to the congestion performance or traffic capacity of a road. Road agencies have adopted the term and associated measures as one component of the quality of service provided by the asset for the benefit of the customers. For the purpose of the Austroads Guide to Asset Management, levels of service is used in its broader form. Levels of service enable an agency to:
document and measure the service provided
evaluate service versus cost trade-offs
establish what is important to the customer
link operational activities with organisational strategic goals.
C4.2
Intervention Levels and Gap Analysis
‘Intervention levels’ are specified condition parameters (usually limiting values) which, if exceeded, trigger a maintenance investigation. The process of comparing the existing asset condition with the desired condition is called gap analysis. However, just because a gap is identified, does not mean that an action/project must be initiated. Routine maintenance or operational standards are generally high priority. In other situations, the gap analysis process identifies a portion of the asset for further investigation using engineering judgment and other organisational considerations (e.g. budget). Service levels/intervention levels are established using a process which takes into account:
customary practice, including local performance evidence
legislation and regulatory requirements
economic criteria, aiming to minimise whole of life costs
community views.
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Table C4 1 illustrates the variety of intervention criteria which may be used, and summarises the contents of a typical set of asset management instructions (in this case called Program Development Guidelines adapted from VicRoads 2003). The reader should note:
the multiple, integrated solutions which may be necessary to minimise whole of life cycle costs
the clear link between the Guidelines shown in Table C4 1 and VicRoads multiple agency objectives, or KPIs (shown earlier in Table C1 1).
Routine maintenance standards are more specific than the ‘performance targets’ approach taken in developing infrastructure preservation programs for reasons of safety and to aid traffic use. This is because they relate to the repair of ‘hazards’. Consequently, response times and inspection frequencies are set according to an assessment of risk, taking into account factors such as road classification, road type and the volume and type of traffic. An example of this approach is shown in Table C4 2 based on VicRoads Road Management Plan (VicRoads 2004a). Table C4 1: Example criteria for various maintenance interventions Routine maintenance to apply to all roads and be based on published intervention levels (see example structure in Table D 2). Periodic pavement maintenance to be based on area of network to be treated and available funding. The program is expected to relate to historical norms with candidates including: those which possess moderate or severe surface distress (typically > 5% of area affected in a 200 m length) low skid resistance sites and those of high accident potential, with the remaining sites treated under the road safety program. Rehabilitation pavement maintenance to address sections with high roughness for road classes A, B or C (NRM > 110 - 120), and for moderate to high roughness for road class M (NRM > 80-90). Ranking to be based on the ‘simplified’ formula (see below) and to be applied in a separate list for rural and urban projects respectively. Ranking value = EI * D * T * L/C, where EI = expected improvement, in NAASRA roughness meter (or NRM) units of counts/km D = deterioration factor, where 1 is normal, 1.5 is normal but with high maintenance costs, 2 is high T = traffic volume up to a maximum of 2000 veh/day rural and 4500 veh/day urban C = unit cost of treatment ($ per sq.m) L = expected treatment life (years). Major patching and rehabilitation to be considered using the above ranking formula for sections in a very rough state. Distressed pavements which are not rough but consume significant maintenance resources should be considered separately. Drainage improvements to be considered as a long-term strategy for reducing pavement deterioration, noting that poor drainage can increase the rate of deterioration by a factor of between 2 and 3 ( Martin, Toole and Oliver 2004). WOLCC tool to be used to determine expected improvements and community benefits from undertaking the proposed program. Shoulder resheeting to be considered where length is in excess of 500 metres to provide safe driving conditions and adequate support. This does not include sealing of unsealed shoulders. Repair of pits, trenches and utility structures where this adversely affects the ride or function of the pavement.
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Table C4 2: Example routine maintenance standards Hazard – a defect listed in the agency’s published ‘maintenance standards’: Pavements – obstructions on the road, pavement defects including potholes, excessive rutting, excessive edge drops, damaged or missing drainage pits, lids, surrounds, etc. Roadside – trees, shrubs and other vegetation likely to cause danger or restrict sightlines, damaged or missing roadside furniture and damaged structures. Traffic signals – inoperative or confusing. Road maintenance category – a nominated road maintenance category for each road according to an assessment of risk. Hazard inspection frequency – period between successive scheduled inspections. Response code – a code which indicates the control mechanism and response time for responding to a particular hazard on a particular road. Response time – the time to respond to a hazard, based on consideration of severity and type. Response time is measured from the time the hazard is identified by the managing agency, or reported by the public. Inspection type
Hazard inspection frequency by road maintenance category 1
2
3
4
5
6
Day-time
Each week day
Twice per week
Weekly
Monthly
3-monthly
6-monthly
Night-time
6-monthly
6-monthly
6-monthly
Yearly
Yearly
Yearly
Control mechanism Inspect, rectify or provide warning
Response code A
B
C
D
E
F
4 hours
24 hours
1 week
1 month
3 months
6 months
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COMMENTARY 5 COMMENTARY E WHOLE OF LIFE CYCLE COSTING Whole of life cycle costs have been defined by the World Road Association as the total costs for acquiring, operating, maintaining and disposing of an asset, reduced to a common base called the 'net present cost'.
C5.1
Benefits
The evaluation of policies and development of medium to long-term asset plans using whole of life cycle costing (WOLCC) provides a basis for investment decisions related to long term assets. WOLCC analysis is fundamental to modern asset management and incorporates triple bottom line (TBL) objectives (Tsolakis et al. 2003) of:
maintaining the physical performance of the asset
considering impacts on road users and the physical environment
financial and economic cost implications for agencies and road users
intergenerational equity.
C5.2
Available Tools
Investment tools such as the HDM-4 suite of technology (Kerali 2000) and the Deighton dTIMS software are widely used in Australia and New Zealand to assist in the analysis process. Simpler tools are also available which use more approximate, or ‘aggregate models’ based on the same knowledge base. The advantage of the HDM-4 style modelling tools is that they enable the decision maker to incorporate multiple criteria into a formal analysis. Criteria would extend beyond asset life expectations to include the:
impact on vehicle operating and road user costs, including road crashes
determination of economic benefits of alternatives
estimation of energy consumption, air pollution and noise.
The use of modelling tools is recommended by Austroads as a means of achieving consistency in determining needs and justifying investment programs. Models can simply be applied to evaluate future conditions taking into account the consequences of applying established business rules or contractual obligations. Initial modelling provides an important starting point for further policy analysis.
C5.3
Analysis Objectives
Having decided the policy objectives to be pursued, and relevant key performance indicators, analysis can then be extended to predict likely outcomes of alternative scenarios, for example:
at the component level models can assist in estimating the life of a road surfacing in a particular locality
to determine outcomes over a planning timeframe in terms of network performance, budget implications and consequences for total transportation costs.
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In all cases the purpose of the analysis needs to be clearly stated. Therefore, a clear objective function, or decision rule, must be employed so that a solution can be chosen from amongst the alternatives that have been investigated. This may take a variety of forms including the: 1.
minimisation of life-cycle costs of specific components
2.
minimisation of total agency costs to achieve a desirable level of service for a particular project, sub-network or network-wide
3.
maximisation of net benefits (to society) under different budget scenarios, the aim being to minimise total transportation costs.
Purely engineering-based methods have traditionally sought to achieve Objective 1, or perhaps Objective 2, through the adoption of best practice solutions and specifications for individual components or comprehensive design and maintenance guidelines or procedures for complete structures. These are predominantly project-level oriented and do not employ predictive modelling in a planning sense. The more sophisticated models, i.e. HDM-4 and dTIMS, now make it possible to meet Objectives 2 and 3 through formal whole of life cycle analysis.
C5.4
Data Requirements
Where such models are used they require the user to specify:
the basic input data which describes the engineering attributes of the asset, climate, topography, current and future traffic, works history and the vehicle fleet
the intervention criteria, mix of treatments and costs applicable to each option, or to define a solution space within which acceptable solutions may lie
an acceptable base case or ‘without investment’ alternative against which the project alternatives will be compared.
Using the models, typical engineering scenarios can be investigated and the consequences determined in terms of road agency costs and road user effects. Economic benefits are computed in terms of the net economic benefits (as net present value, or NPV) from comparing a do minimum alternative with a variety of project alternatives. Typical economic indices such as benefit cost ratios (BCR) or NPV/cost are recommended as inputs to the prioritisation of investment alternatives.
C5.5
Challenges
When using sophisticated models, an asset manager must be aware they:
require comprehensive data inputs
comprise internal predictive models which must be well calibrated to local conditions to give meaningful answers
require a high degree of knowledge and skill to be applied effectively.
However, the principle of WOLCC analysis can be incorporated into decision-making in simpler forms by taking care to ensure capital, improvement and preservation decisions are made in the knowledge of the long term cost implications. Most authorities employ a combination of historical practice, simple rules and the more sophisticated WOLCC methods because no single approach can be guaranteed to produce an acceptable and realistic outcome.
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It can be difficult to justify investment on an economic basis for low traffic facilities where agency costs (as illustrated in Figure C5 1) make up a significant proportion of total costs. This is because the savings in road user costs associated with a higher level of service are not sufficient to offset the additional costs of provision or maintenance. In practice there are political and social reasons for providing a base level of access and safety for smaller communities.
Figure C5 1: Typical split between road user and road agency costs versus AADT
C5.6
Asset Creation
Authorities should consider carefully the future maintenance requirements of proposed new infrastructure before including it in their works program. The establishment of complementary capital investment planning processes are recommended to ensure the most appropriate whole of life cycle decisions are made when constructing new assets. In this case, the asset manager is interested in knowing that asset management principles have been applied in selecting improvement and expansion investments. Consideration of maintenance implications at the design stage should, where possible, highlight those options with maintenance complications or increasing life-cycle costs. Capital investment decisions should be made in the knowledge that creation of an asset also creates a commitment to maintain that asset. Provision must therefore be made for future maintenance to ensure budgets are available to meet typical business rules for the particular class of infrastructure. Further guidance is available in the Austroads Guide to Project Evaluation.
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COMMENTARY 6 MANAGING RISKS Formal risk management is a core driver of road authority activities. The impetus to adopt a risk management approach has been accelerated in recent years through the introduction and enforcement of legislation and statutory requirements which affect roads, and the responsibilities of managers, service providers and users. In response, some road authorities have established formal road management plans (VicRoads 2004a). In line with established standards (Standards Australia and Standards New Zealand 1999), risk management comprises the following six main steps:
establishing the strategic, organisational and risk context
identifying risks, including what can happen and how
analysing risks, determining likelihood of occurrence and consequences
assessing risks, setting criteria and priorities
treating risks, options, plans and implementation
monitoring and review.
At a high level, these steps mirror the Austroads Integrated Asset Management Process but risk must be managed within all phases of the asset management process at varying levels of complexity. The effort used in managing risks should be commensurate with the risk exposure. Major financial risks and the general comfort and efficiency of road use are addressed through appropriate infrastructure preservation, road use management and capital investment strategies. Risk management in a maintenance context is primarily related to the safe use of a roadway and related assets, and is therefore performed at an operational level. In deciding how to best manage risk, asset owners and managers are encouraged to adopt the following simple classification for categorising activities and responses which has been adapted from INGENIUM & IPWEA (2002):
‘Must do’ comprising those activities for which deferment is not an option, with public safety identified as the topmost priority.
‘Should do’ comprising those activities which are required to deliver published ‘desirable’ service levels, with the exception of those which fall into the ‘must do’ category.
‘Could do’ comprising those activities which could bring additional community benefits should sufficient resources exist.
Maintenance standards (see Table C4 2 Commentary 4) comprising the maximum acceptable routine inspection periods, severity of defects that can be tolerated and response times within which defects must be repaired fall within the ‘must do’ category, and should have first call on available funds. Maintenance standards should be applied irrespective of the management arrangements for the particular road and should be available for public scrutiny. Infrastructure preservation strategy actions fall into the ‘should do’ category. Actions which would maximise community benefits may not be achievable in budget constrained situations and are classified as ‘Could do’ activities.
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Whether networks are managed directly by a government agency, under term contracts, or similar arrangements, a consistent process-based approach involving annual and long-term planning is essential to reduce and manage risk effectively. Plans should contain a balance of inputs which consider past experience, or ‘norms’, as well as the results of formal modelling using strict intervention criteria.
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