By McCullough Robertson construction, infrastructure and procurement Senior Associate Goran Gelic
Asset Management Plans (AMPs), which are critical to the long-term sustainability of local councils, are progressively moving away from the dreary days of hard copy documents.
What is an AMP?
Put simply, an AMP is a plan developed for the management of infrastructure assets with a view to operating, maintaining and renewing the assets within the most cost effective manner possible. For example, Bundaberg Regional Council has provided in its long-term AMP a forecast of the whole of life costs of existing and planned assets, which will influence its strategic decisions with regard to future capital investments.
Requirement to have in place an AMP
Each state has legislation which requires local councils to have in place an AMP (although the AMP requirements differ from state to state).
In Queensland, the Local Government Act 2009 (Qld) requires a local government to have in place a long-term AMP. The long-term AMP must be for a period of at least 10 years and must continue in force during the period stated in the plan unless the local council adopts a new long-term AMP (this is a separate requirement under the Local Government Regulation 2012 (Qld) and the City of Brisbane Act 2010 (Qld)).
Similarly, in New South Wales, a local council must develop an AMP. However, the AMP must, along with a long-term financial plan and a workforce management plan, form part of a long-term resourcing strategy established by a community strategic plan.
Format and contents of an AMP
Each state’s legislation is not prescriptive on the format of an AMP. However, guidelines exist which provide helpful guidance on the preparation of an AMP. The IPWEA's International Infrastructure Management Manual (IIMM) and the ISO 55000 Asset Management Standards are useful guides in developing an AMP. For example, the AMP developed by the Moreton Bay Regional Council follows the general structure of the IIMM.
Importantly, in Queensland, section 168 of the Local Government Regulation 2012 (Qld) provides for certain requirements to be included in an AMP. These requirements include:
- the AMP must provide for strategies to ensure the sustainable management of the assets mentioned in the local government’s asset register and the infrastructure of the local council;
- the AMP must state the estimated capital expenditure for renewing, upgrading and extending the assets for the period covered by the plan; and
- the AMP must be part of, and consistent with, the long-term financial forecast.
Separately, local councils in Queensland should be developing their AMP in accordance with the State’s Asset Management Advancement Program and also their internal asset management policy.
Does an AMP need to be in hard copy?
The better view to take is that AMPs do not have to be in hard copy in Queensland (although that said, the AMP should be documented in some way so council has a record of the AMP for auditing purposes). Local councils in Queensland have traditionally published their AMPs as Word or PDF documents (usually available as a PDF document on council’s website).
It should also be noted that some local councils in Queensland are replacing their hard copy AMPs with the “Life Cycle Cost Asset Management Plan Model” (LCCAMP). LLCAMP is an innovative approach to understanding the impact that capital works projects, operations and maintenance and service levels have on local government financial sustainability. Townsville City Council has adopted the LLCAMP.
Goran Gelic is a construction, infrastructure and procurement Senior Associate at McCullough Robertson.
He has acted on a number of significant infrastructure projects (both domestic and international) including roads, rail, mining and hospitals. He has worked in-house both in government (Queensland Water Infrastructure) and the private sector (Transpacific Industries Group).
He has extensive experience in a variety of contract structures, procurement documentation and issues as well as contract litigation and administration. Through his role he has gained an expertise in BIM and its application in the construction and procurement industry. Goran works regularly with clients on BIM issues and is a regular presenter throughout Australia on BIM issues.