Recognition and recording of revenue, expenses, assets and liabilities at the time they arise. (Source: SSA)
A written instruction to all tenderers to vary or clarify the specified requirements stated in the specification issued prior to tender close. (Source: SSA)See also Corrective circular.
All departments, service agencies and statutory authorities in the South Australian Government. (Source: SSA)
(1) An alternative technique for the resolution of a contract dispute by way of independent third parties rather than court proceedings. (Source: NCRB)(2) An alternative technique for the resolution of contract disputes other than by arbitration or litigation.It need not involve an independent third party. (Source: SSA)
Pleasant or comfortable conditions provided by a facility or service. (Source: SSA)
The series of uniform annual amounts which, when discounted and summed, equal the Net Present Cost of a series of non-uniform costs. (Source: NCRB)
An arbitration clause inserted into the contract requires that a specified procedure be followed by all parties in appointing an arbitrator. The arbitrator hears submissions from the parties to the dispute and makes an award that is final and binding. It is generally a faster and less expensive process than litigation and the court system. (Source: NCRB)
A person or agency either appointed by agreement by the parties to a contract to decide a dispute or in accordance with the dispute resolution provisions of the contract. (Source: SSA)Asset (1) Physical or intellectual property that yields a stream of future benefits. (Source: SATF) (2) An asset is a physical facility or product of value: which enables services to be provided; and has an economic life greater than 12 months. (Source: UN)
A definition or measure of the current and future demand for an asset or assets, or for the service potential of that asset or assets. (Source: SSA)A distress, or failure, mode of an asset for which the condition, or risk of failure, of the asset might be assessed. Asset distress modes include: physical condition, lack of capacity, lack of utilisation, obsolescence, risks to occupational health and safety, lack of security, etc. (Source: SSA)
See Life cycle.
A systematic approach to the procurement, maintenance, operation, rehabilitation and disposal of one or more assets which integrates the utilisation of assets and their performance with the business requirements of asset owners or users. (Source: NCRB)(See also Total asset Management)m
A system for collecting and analysing data on the performance of existing assets, including their operational costs. (As an example in the South Australian context the Building and Land Asset Management System (BLAMS), or the Strategic Asset Management Information System (SAMIS)). (Source: SSA)
See Asset plan.
A strategy for asset management covering the development and implementation of plans and programs for asset creation, operation, maintenance, rehabilitation/replacement, disposal, and performance monitoring to ensure that the desired service levels and other operational objectives are achieved at optimum cost. (Source: UN)
A quantified measure of the contribution an asset makes towards stated objectives or agreed standards. (Source: SSA)
A document which identifies the short and long term requirements of an agency and provides a framework for managing an asset, or group of assets, from within the agency's asset portfolio. (Source: SSA)
(1) A record of items considered worthy of identification as discrete assets. A physical asset register includes information about each asset, such as type of construction and technical details (details could include location, value and construction type). (Source: NCRB) (2) A data source that records information on individual assets, including assets' location, condition, function and ownership details, as well as the value and depreciation of the asset and its major components. (Source: SSA)
A measure of how effectively an asset is being used to meet an agency's service delivery objectives. (Source: UN)Condition based value - The current value of the asset, generally measured as the replacement cost less the monetary value associated with the deterioration of its condition. (Source: SATF)Current cost - The cost of an asset measured by reference to the lowest cost at which the gross future economic benefits embodied in the asset could currently be obtained in the normal course of business. (Source: SATF)Current market value - The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. (Source: SATF)Current replacement cost - The cost of the future economic benefits expected to be derived from use of the asset, estimated as the current cost of the future economic benefits of the most appropriate replacement facility. (Source: SATF)Current reproduction cost - The current cost of reproducing (replicating) the asset in terms of both scale and technology. (Source: SATF)Current value - The value of an asset at the present time. It may be estimated from the current market value or where the market is deficient, by other methods such as depreciated value using current cost accounting. (Source: NCRB)Deprival value - The direct and indirect loss which might be incurred by an organisation if it were deprived of an asset; it assumes replacement of that which needs to be replaced rather than that which presently exists, hence factoring in current utilisation of the asset. (Source: SATF)Disposal value - See Net market value.Insurance value - The value on which insurance premiums are based. (Source: SATF)Net market value - The amount which could be expected to be received from the disposal of an asset in an orderly market after deducting costs expected to be incurred when realising the proceeds of the disposal. (Source: SATF)Residual value - The net amount expected to be recovered on disposal of a depreciable asset at the end of its useful life. (Source: SATF)
(1) A systematic examination of financial statements with the objective of expressing an opinion on the truth and fairness with which the statements present the financial position and results of operations. (Source: AAS) (2) Assessment of practices and procedures to ensure efficient operation, probity and conformity with corporate policy. (Source: NSW)
Maintenance or works that were programmed to occur in a particular time period but were not carried out in that period and are still required to be performed. (Source: SSA)
Maintenance that was programmed to occur, or became necessary, in a particular time period but was not carried out in that period. (Source: NCRB)
A point of reference from which quality or excellence is measured. (Source: MQ) A systematic and continuous measurement process; a process of continuously measuring and comparing an organisation's business process against process leaders anywhere in the world to gain information which will help the organisation take action to improve its performance. (Source: OPSM)
A gain in consumer satisfaction or welfare resulting from a project or program. (Source: SATF)
A technique for the evaluation of projects where all benefits and costs, both direct and indirect, are considered. Where possible all benefits and costs should be quantified in financial terms. Where this is not possible the benefits and costs should be quantified in non-financial terms or described so as to identify the impact of the benefit or cost. (Source: SATF)
The ratio of the present value of benefits to the present value of costs. (Source: SATF)? Bill of quantities (1)A document issued to tenderers by or on behalf of the Principal stating estimated quantities of workto be carried out. (Source: SAA: AS2124) (2)A detailed document prepared by a quantity surveyor and listing the estimated quantities ofmaterials, labour and any other items required to carry out a project, based on working drawings,specification, and schedules for that project. (Source NCRB)
An agreement to build, own and operate a facility on behalf of another party. Usually refers to a facility that would normally be a public facility but which is constructed and operated by the private sector in return for an income stream from a government. (Source: UN)
Build, own, operate and transfer. Similar to BOO but the ownership of the facility is transferred to the initiating party at a predetermined point in its life. (Source: UN)
A failure or malfunction of, or damage to, an asset, facility, piece of equipment, machine or component leading to loss of, or diminished, function, service, health and safety, or security, requiring to be made good within a predetermined time frame. (Source: SSA)
Those activities which are associated with the repair or servicing of site features, buildings and plant or equipment which have become inoperable or unusable because of the failure of component parts. (Source: SSA)Written goals, methods and desired results prepared by project participants at the end of key phases of a project, providing sufficient substantiation to approve advancement of the project to the next phase. (Source: SSA)Client brief - The functional and operational requirements for the proposed project, stating the end user's requirements and setting out objectives in terms of time, cost, quality, function and scope. (Source: NSW)Delivery brief -A report which contains the schematic design, limit of cost estimate, and cash flow plan. A key document in confirming that the project can be delivered within agreed parameters. Used in the project delivery phase. (Source: SSA)Evaluation brief - A written description of the concept, outlining accommodation needs, impact on the program, service delivery objectives and the financial/economic approach to be pursued. Used in the evaluation phase of the project initiation process and also in the value management process. (Source: SSA)Functional brief -That part of a the client's brief that sets out the detailed functional requirements of a project. (Source: NCRB) or a precise definition of the end user's requirements including, but not limited to, anticipated workload, staffing, key relationships, accommodation requirements and major physical requirements. (Source: NSW)Project brief -The functional and operational requirements for the proposed project, stating the end user's requirements and setting out objectives in terms of time, cost, quality, function and scope. (Source: NSW) or the brief developed by the client as a result of rigorous evaluation of service delivery needs and options and forwarded to the design team for interpretation into a design for a built asset. (Source: SSA)
(1) Any roofed structure enclosing space and intended for use as a shelter (for people, animals or property) or for recreational, industrial, commercial or other functions. For the purpose of regulatory control, buildings and portions of buildings may be grouped into classes. (Source: NCRB) (2) The process of construction of buildings. (Source: NCRB)
The industry that provides the services associated with the activities of the building and construction sectors covering buildings and associated engineering and civil engineering (sometimes also referred to as construction). (Source: UN)
A set of requirements for use in the design, construction, alteration or demolition of buildings, setting out procedures, acceptable methods or materials and minimum or maximum values. A code obtains mandatory status through incorporation by reference in a statutory document. (Source: NCRB)
A uniform set of technical requirements and standards for the design and construction of buildings and structures throughout Australia, produced and maintained by the Australian Building Codes Board (ABCB) on behalf of the Commonwealth, State and Territory Governments under the direction of the Local Government Ministers' Conference. (Source: NCRB)Those components of a building that have a static function, primarily for climate control and spatial delineation such as walls or roofs. (Source: NCRB)
That part of the building and construction industry that operates to provide the services associated with the erection of buildings (excludes civil engineering).There are two sectors residential, and non-residential. (Source: UN)
Any codes or regulations under the Development Act that regulate the performance, standard or form of building work. Includes any standard or document adopted by those codes or regulations. (Source: SSA) (The Building Code of Australia is one major code which forms part of the Building rules.)
All those components of a building which form systems and which have a dynamic function, usually moving something from one part of a building to another. This includes all engineering services needed to sustain the functional performance of a building, such as heating, hot water, ventilation and air conditioning etc. (Source: NCRB)
The site of building works, not necessarily a piece of land (eg. it may be a refurbishment within an otherwise occupied building). (Source: UN) See also Site.
See Corporate plan.
Contact with potential tenderers to make them aware that tenders have been called. (Source: NSW)
The cost associated with the development of a project, including site acquisition, design,construction, interim financing, and project management. (Source: NCRB)The cost incurred by the agency in procuring additional or upgraded assets. (Source: SATF)
A term which relates to the procurement of physical assets through the expenditure of capital funds. (Source: SSA)
That certificate issued to the Contractor to certify that all contractual and financial items have been completed. (Source: SSA)
That certificate issued to the Contractor to certify that the work is sufficiently complete to allow use of the facility. (Source: SSA) (1) A means of documenting compliance with performance or prescriptive building code requirements by an independent accredited agency or individual not part of the statutory approval authority. (Source: NCRB) (2) Authorisation of payment following valuation by the Project Manager. (Source: NSW)
The action, work, or profession of a civil engineer, involving the alteration and development of the physical environment in the construction of works. Originally covering the whole of non-military engineering, it now includes that part of engineering that is neither mechanical nor electrical. Examples include the design of roads, bridges, dams, aqueducts, canals, tunnels, harbours or other large structures, water supplies, sewerage systems, marine systems, power works, and structural aspects of buildings. (Source: NCRB)
The person or organisation requiring and paying for, a building or engineering work or a specific professional service. (Source: NCRB) (The Client may also be known as the Proprietor)
The functional and operational requirements for the proposed project, stating the end user's requirements and setting out objectives in terms of time, cost, quality, function and scope. (Source: NSW)
A statement of the minimal acceptable levels of aspects of behaviour and best practice that are deemed to be required so as to bring about improved performance through industry reform. (Source: SSA)
An Australian standard (AS4120) that sets out the ethics and the obligations of the Principal and contractors in tendering in the construction industry. (Source: SAA)
The non-technical component of the specification, comprising Notice to Tenderers, Conditions of Tendering, Special Conditions, General Conditions of Contract, Annexure and Preliminaries. (Source: NSW)
The process of allowing potential suppliers of goods and services the right to tender for the award of a contract, based on their submitted performance and cost structure. (Source: OPSM)
The process of selecting a preferred supplier from a range of potential contractors by seeking offers (tenders) and evaluating these on the basis of one or more selection criteria. (Source: CA)
Work requiring design or more detailed specification. (Source: SSA) Where agencies are required to introduce competitive tendering to specified services or a specified level of expenditure. (Source: CA)
The idea developed to meet a specific service delivery need. (Source: SSA)
A plan showing, in outline, the overall development intentions for an area, including land use, major transport links, utility networks, drainage, open space and built form. (Source: NCRB)
The combination of information gathered in a site assessment and the development of suitable layout options based on the Client Brief. (Source: NCRB)
The initial design outlining an idea developed to meet a specific service delivery need (see Concept). (Source: UN)
See Condition audit.
See Condition audit.
A technical audit of an asset based on physical inspection. (Source: NCRB)
The current value of the asset, generally measured as the replacement cost less the monetary value associated with the deterioration of its condition. (Source: SATF)
Repeated observation of the state of an item over its life. (Source: NCRB)
See Condition audit.
The outcome of an event or situation expressed qualitatively or quantitatively, being a loss, injury, disadvantage or gain. (Source: SAA: AS4360) (1) The process of erecting a structure or assembling materials, generally synonymous with building. (Source: NCRB) (2) The medium in which a building is built, eg. concrete construction, steel construction, wood construction. (Source: NCRB) (3) The process of erection, installation, fabrication, assembly and commissioning of buildings or civil components at the permanent site of the facility by the Contractor. (Source: NSW)
Includes all building, refurbishment, maintenance, civil engineering, mining and heavy engineering projects. It excludes cottage construction. (Source: SAA) It includes medium and high density residential. See also Building and construction.
A formal plan setting out the program that the construction manager will follow in the co-ordination and management of a specific construction site. (Source: UN)
(1) A person or organisation engaged by the Principal to co-ordinate and manage the construction site and to pay the trade contractors as agent for, and on behalf of the Principal. (Source: NCRB) (2) A generic term. A person or organisation managing construction activities in whole or in part on behalf of one of the parties to a construction contract. The role of the construction manager will vary between parties to a contract, eg. Principal, contractor or subcontractor. (Source: SSA)(See also Project manager, Supervisor.)
(1) An independent professional person performing work under a contract and not for any purpose a partner, joint venturer, servant, agent or employee of the Principal. (Source: SAA) (2) Often a term used to refer to one of the group also known as 'the professions' such as: architects, engineers, quantity surveyors, surveyors and others. In general, anyone commissioned to advise on specialised aspects of a construction project, can include project managers, contract managers etc. (Source: SSA)
A register of consultants drawn up using the financial, technical and managerial capabilities and capacity of the consultant to allocate them into specific categories. Used in selecting consultants to be engaged on projects, in allocating tenders for consultancies, and in determining the consultants to be invited for a selected tender call for a consultancy. (Source: UN)
Allowance for unforeseen eventualities outside the control of management. (Source: SSA)For example, construction contingency might be latent conditions or contractor failure. Contingency is generally allowed for as a percentage of contract value.
A sum of money included in the contract documents to cover the cost of unforeseen items. It can be expended in full or in part as required by the Superintendent during the progress of the works under the contract. (Source: NCRB) (1) An agreement entered into between two or more parties which involves an exchange of specified goods and/or services for specified financial reimbursement or other considerations. The terms of agreement are usually set out in writing and specific legal obligations are created by the signing of a contract. (Source: NCRB) (2) The written documents agreed to and legally binding between the Principal and the Contractor, which detail the requirements and conditions that are to be met to complete the work successfully. (Source: NSW)
(1) The administration of a contract, including the selection of the successful tenderer, and use of agreed procedures to ensure that contractual obligations are fulfilled throughout the period of the contract. (Source: NCRB) (2) The administration of a contract following the appointment of the successful tenderer. Includes the use of agreed procedures to ensure that contractual obligations are fulfilled throughout the period of the contract but does not involve tender evaluation. (Source: UN)
A generic term. A person or organisation undertaking duties relating to contract administration for or on behalf of one of the parties to a contract. The duties may vary with the individual. (Source: SSA)
Those things agreed by the parties to a contract as representing the basis of the contract and its execution. They generally include the tender documents (with the exception of tender conditions), the tendered documents as accepted and any contract related document issued by one party and received by the other. (Source: NSW)
A procurement system at the contract level. (Source: NSW)
The process of inviting the private sector to carry out in-house activities under the direct control of an agency, and on occasions employing the agency's resources. (Source: OPSM)
The person or organisation who, as a party to the contract, is legally bound to execute the work in accordance with the contract. (Source: NCRB)
A register of potential contractors that uses the financial, technical and managerial capabilities and capacity of contractors to allocate them into specific categories. Used in allocating tenders, and in selecting for selected tenders. Used in selecting contractors to be engaged on projects, in allocating tenders and in determining the contractors to be invited for a selected tender call for a project. (Source: UN)
A choice, such as a method of payment, for a contractual condition in the documentation process or the commercial considerations. (Source: NSW)The essential role, functions or responsibilities of an organisation, agency or firm. (Source: SATF)
A written record describing the reason for an organisation's existence, programs, program objectives and issues and how it intends to achieve and measure progress to address these issues and objectives. (Source: UN)(Also known as Strategic plan or Business plan.)A written record describing the reason for an organisation's existence, programs, program objectives and issues and how it intends to achieve and measure progress to address these issues and objectives. (Source: UN)
A written instruction to all tenderers to vary or clarify the specified requirements stated in the specification issued prior to tender close. (Source: SSA)
The direct and indirect impact (specifically negative impact) of an activity, including money, time, labour, disruption, goodwill, political and intangible items. (Source: SAA)Capital Cost -The cost associated with the development of a project, including site acquisition, design, construction, interim financing, and project management (Source: NCRB) or the cost incurred by the agency in procuring additional or upgraded assets. (Source: SATF)Cost-in-use - The cost of ownership including operating, maintenance, cleaning, alterations, replacement and support costs. (Source: NCRB)Current cost - The cost of an asset measured by reference to the lowest cost at which the gross future economic benefits embodied in the asset could currently be obtained in the normal course of business. (Source: SATF)Current replacement cost - The cost of the future economic benefits expected to be derived from use of the asset, estimated as the current cost of the future economic benefits of the most appropriate replacement facility. (Source: SATF)Current reproduction cost - The current cost of reproducing (replicating) the asset in terms of both scale and technology. (Source: SATF)Estimated total cost -All costs of a capital nature which are required to bring a project to completion. Costs include planning, construction, land and equipment. Does not include operating costs, staffing costs and the cost of maintenance and refurbishment which are included in whole of life costs. (Source: SSA)Life cycle cost - The total cost of an item throughout its life, including the costs of planning, design, acquisition, operations, maintenance, and disposal, less any residual value (Source: NCRB) or the total cost of providing, owning, and maintaining a building or component over a predetermined evaluation period. (Source: NCRB)Recurrent costs - All costs, including the cost of finance, incurred in holding and operating an asset. (Source: SSA)Whole of life costs - All costs involved in a project including the capital costs (planning, construction, land and equipment) and the operating costs (staffing costs and the costs of maintenance and refurbishment). (Source: SATF)See Benefit/cost analysis.
The cost of ownership including operating, maintenance, cleaning, alterations, replacement and support costs. (Source: NCRB)
A technique for the evaluation of projects where it is not possible, or prohibitively expensive, to quantify major benefits/costs. In principle, a set of options which achieve a desired objective are analysed both in terms of their cost and how well they meet a specified objective. (Source: SATF)
Cost and time targets for each element of a project, used for controlling all design and development activities against these targets. (Source: SSA)
The cost of an asset measured by reference to the lowest cost at which the gross future economic benefits embodied in the asset could currently be obtained in the normal course of business. (Source: SATF)
The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. (Source: SATF)
The cost of the future economic benefits expected to be derived from use of the asset, estimated as the current cost of the future economic benefits of the most appropriate replacement facility. (Source: SATF)
The current cost of reproducing (replicating) the asset in terms of both scale and technology. (Source: SATF)
The value of an asset at the present time. It may be estimated from market value or where the market is deficient, by other methods such as depreciated value using current cost accounting. (Source: NCRB)
A method of representing a series of events in terms of a combination of smaller, simpler, more manageable, independent segments, with the smaller segments arranged as the branches of a tree and with each event given a probability with respect to the decision alternatives for each event. (Source: CA)
Activities required to take an asset out of service. (Source: SSA) The specified period of time within which the contractor is required, at his or her own cost, to rectify any defects in the completed works arising from faulty materials or workmanship and notified in writing. The period commences from the date of issue of the 'certificate of practical completion' and lasts for the period stated in the contract. (Source: NCRB)
A report which contains the schematic design, limit of cost estimate, and cash flow plan. A key document in confirming that the project can be delivered within agreed parameters. Used in the project delivery phase. (Source: SSA)
A procedure for matching demand for services to the capacity to supply those services where market signals are deficient. (Source: SSA)
The reduction in the value of an asset through wear, tear and obsolescence. (Source: SATF)
The direct and indirect loss which might be incurred by an organisation if it were deprived of an asset; it assumes replacement of that which needs to be replaced rather than that which presently exists, hence factoring in current utilisation of the asset. (Source: SATF)
(1) The process of converting a design brief into design details ready for documentation. Design covers conceptual design and design development. (Source: NSW) (2) The development of a client brief into design details prior to documentation. Includes conceptual design, sketch design and design development. (Source: SSA)
A contract between a contractor and a client (or Principal) for both design and construction of a project. (Source: NCRB)
The combination of information gathered in a site assessment and the development of suitable plan options based on the client brief. (Source: SSA)
The integration of client requirements, research, design philosophy, and existing site conditions to produce design drawings. (Source: NCRB)
Tenders are called after completion of the conceptual design and before or during design development. The successful tenderer is required to fully develop and document the design and then construct the works. (Source: NSW) Can be used in association with a Novated contract. (1) An industry term for 'termination of contract'. Determination clauses in a contract state the grounds that will entitle either the contractor or the Principal to terminate the contract and include a procedure that must be followed. (Source: NCRB) (2) The process, and the end result of that process, that agrees variation orders, extension of times and other adjustments to contract conditions. (Source: SSA)(In South Australia this may be referred to as 'Termination'.)
An approval required prior to any project proceeding to ensure that the project complies with development legislation. (Source: SSA) (In South Australia the relevant legislation is the Development Act 1993).
A plan showing, in outline, the overall development intentions for an area, including land use, major transport links, utility networks, drainage, open space and built form. (Source: SSA)
Typically, project evaluation requires the consideration of benefits and costs that occur at different points in time. The discount rate is used to calculate the present value of future cash flows. It takes into account the public's preference for receiving benefits sooner than later and incurring costs later than sooner, and reflects interest that could be earned on funds invested in the open market. (Source: SATF)
A process whereby an asset is decommissioned, disposed of, or sold. (Source: SSA)
See Net market value.
The methods and actions involved in mediating and settling disputes. See Alternative dispute resolution procedure. (Source: NCRB)
See Disposal.
The process of detailing the technical and commercial/contractual requirements of the project in a written form that furnishes objective information as to the design of the works. (Source: NSW)
(1) The process of detailing the technical and commercial/contractual requirements of the project in a written form that furnishes objective information as to the design of the works. (Source: NSW) (2) Drawings and text illustrating demolition, construction, techniques and obligations. (Source: UN)
That element of time during which a facility, part of a facility, or an item is not in a condition to perform its intended functions. (Source: SSA)The process of reviewing and analysing in detail the physical, legal and financial activities, work processes, agreements, etc. of an existing service which are relevant to the performance of a future contract for this service, qualifying risks and establishing strategies to minimise these risks. (Source: OPSM)
A gain in consumer satisfaction or welfare resulting from a course of action. (Source: SATF)
The period of time for which net benefits are maximised. An asset reaches the end of its physical life when it is unable to perform the functions for which it was originally required - in effect the asset 'wears out'. The economic life of an asset is usually shorter than its physical life. (Source: SATF)
The extent to which an activity satisfies the purpose for which it was established. This can be assessed by comparing the activity outcomes with actual achievements. (Source: OPSM)
A measure of resource commitment to the activity. After the fact, this can be assessed by comparing resource input against actual output. (Source: OPSM)
The determination of actual energy use and potential energy savings in an energy using system. It involves a periodic survey, measurement, examination, analysis and recording of results. (Source: NCRB)
Apparatus, appliances, devices, fittings, fixture, furniture, materials and the like, used as part of, or in connection with an asset, but that are not permanently attached to, or are removable from, that asset. (An item of major equipment may be an asset in its own right.) (Source: SSA)
All costs of a capital nature which are required to bring a project to completion. Costs include planning, construction, land and equipment. Does not include operating costs, staffing costs and the cost of maintenance and refurbishment which are included in whole of life costs. (Source: SSA)
A considered assessment of a project or proposal, which can be before the fact, after the fact or during the process of implementation. (Source: SATF)
A written description of the concept, outlining accommodation needs, impact on the program, service delivery objectives and the financial/economic approach to be pursued. Used in the evaluation phase of the project initiation process and also in the value management process. (Source: SSA)An incident or situation, which occurs in a particular place during a particular interval of time. (Source: SAA: AS4360)
A technique which describes the possible range and sequence of the outcomes which may arise from an initiating event. (Source: SAA: AS4360)
The physical material of a building, site etc. (Source: BC)
An audit of the physical and functional adequacy of a facility, with particular reference to the building fabric and building services components, to provide an input for life cycle cost analysis, short term maintenance planning and long term planning purposes. (Source: NCRB) Should equally be fabric and function. A building audit is more the fabric and services.
The process of planning, managing, maintaining, rationalising and accounting for facilities and associated services while simultaneously seeking to reduce the associated overall costs. The primary focus of facilities management is to provide the optimum level of facility for the least financial outlay. (Source: NCRB)
A complex of buildings, structures, roads and associated equipment, such as a hospital, school, shopping centre, or the like, which represents a single management unit for financial, operational, maintenance or other purposes. (Source: NCRB)
(1) The inability of an item to perform within previously specified limits, or to meet a specified standard of appearance. (Source: NCRB) (2) (Structural) A condition at which a structure ceases to fulfil its functional purpose (such as leakage) or reaches a limit state (deflection, cracking).Usually failure does not involve fracture because most structures are considered unsafe or unusable before they collapse. (Source: NCRB)
A procedure by which potential failure modes in a technical system are analysed. (Source: SAA: AS4360)
A procedure, an extension of Failure mode and effects analysis, in which each failure mode identified is ranked according to the combined influence of its likelihood of occurrence and the severity of its consequences. (Source: SAA: AS4360)
A procedure by which the potential for failure of an asset, facility or item is analysed, the potential failure (asset distress) modes are identified and the likelihood and possible timing of failure are assessed. (Source: SAA: AS4360 modified)Overlapping of actions normally carried out sequentially to ensure a speedier result. (Source: UN)
A method for representing the logical combinations of various system states and possible causes that lead to a particular outcome or contribute to a specific event. (Source: CA)
A determination of the possibility of a given outcome. Usually in the sense of whether the outcome, or the method of achieving that outcome, is practical as well as possible and occasionally if it is a suitable outcome. Generally used in the financial or economic sense. Economically feasible, if the outcome can be achieved within the financial limitations in place for the project. Generally whether it can meet all costs and return an acceptable profit or margin on those costs. Feasibility studies for the public sector may place an emphasis on the meeting of specific social, environmental or other goals rather than only on financial outcome. (Source: UN)
See Certificate of final completion.
A lease which effectively transfers from the lessor to the lessee substantially all the risks and benefits incident to ownership of the leased asset. (Source: AAS) (See also Lease, Operating lease)
A project evaluation technique which is undertaken from the perspective of the individual or agency, rather than having an economy or system-wide perspective, as used in benefit/cost analysis. (Source: SSA)
The supply, furnishing and/or installation of equipment, furniture, fixtures, facilities or other requirements. Often refers to the preparation or refurbishment of an office or offices as required by an occupier or tenant. (Source: SSA)
A measure of likelihood expressed as the number of occurrences of an event in a given time. (Source: SAA: AS4360)
Information generated from a value management study of a concept or project, which details at different levels the functions required of a facility or its component parts. (Source: SSA)
(1) That part of a client's brief that sets out the detailed functional requirements of a project. (Source: NCRB) (2) A precise definition of the end user's requirements, including but not limited to, anticipated workload, staffing, key relationships, accommodation requirements and major physical requirements. (Source: NSW)Any movable property and anything attached to or forming part of land that is capable of being severed for the purposes of acquisition or disposal. (Source: SATF)
An object or physical situation with a potential for causing harm to life, health or property. (Source: NCRB)
Any material which, alone, or in combination with others, is or could become corrosive, cytotoxic, explosive, flammable, infectious, irritant, noxious, or radioactive, and for which special precautions are required. (Source: modified NCRB)
A contract signed between the contractor and the Principal which involves a series of subcontracts. (Source: NCRB)
The Principal contractor in subcontract works, who retains full responsibility to the Principal for the completion of the entire works. (Source: NCRB)
(1)An asset, including land, which is irreplaceable because ofitsunique historical, culturalorenvironmental attributes, and which is required to be preservedormaintained in perpetuity.(Source: NCRB) (2)An asset that has been placed on a special heritage asset register by an appropriate governmentagency (Federal, State or Local). (Source: UN)
Buildings developed to provide residential accommodation. May be low density (cottage) medium or high density (apartment buildings). (Source: NSW)
Provision of physical outputs, generally infrastructure and the documents required to describe how that infrastructure will be constructed. (Source: NSW)
Those activities which may increase the value of the asset. (Source: SSA) (Improvements and additions may include such things as: carpets where no floor coverings previously existed; air conditioners where no plant previously existed; extensions to buildings increasing available floor area.)
A first indication of cost, used as a guide to feasibility and based on an outline statement of needs. It is intended as a guide for feasibility and planning purposes and should not be treated as a firm cost estimate or estimated total cost calculation. (Source: SSA)A tender prepared and submitted by internal agency staff and where, if successful, internal staff provide the specified service on a 'contractual' basis. (Source: CA)
Major capital works constructed to provide a framework for the social and economic development of the State. (Source: SSA)
The value on which insurance premiums are based. (Source: SATF)
Benefits or costs for which it is impossible, or prohibitively expensive, to quantify. (Source: SATF)
Interest and other expenses associated with the financing of the project. These expenses are excluded from an economic analysis (benefit/cost analysis) as they are taken into account in the discount rate. Also known as debt servicing costs. (Source: SATF)
The discount rate which equates the present value of benefits with the present value of costs of a project. (Source: SATF) The internal rate of return is often used as an indicator for prioritising competing projects.
The first stage in a tendering process where prospective tenderers are invited by the contracting agency to register their intention of tendering for the delivery of the goods or services. (Source: CA)
Principals invite tenders from a number of contractors known to have the ability to undertake a project of the type proposed. (Source: SAA)
A specific functional unit which may incur costs for maintenance, restoration or replacement and which may be distinguished in an asset register. A maintenance item can be a whole building or structure or an item of plant and equipment. (Source: NCRB)
A plan outlining an agency's known additional land requirements. Where capital funding is required for the purchase of land, the proposals form part of that agency's Strategic Asset Management Plan. (Source: SSA)
Physical condition of an asset which differs materially from the physical condition which could reasonably have been anticipated or discovered from documentation, physical inspection, due diligence or otherwise. (Source: SAA: AS2124 modified)The time required before action can commence, eg for approvals, purchase of material or preparation of documents. (Source: NSW)
(1)An agreement conveying the right from a lessor to a lessee to use an asset for a stated period oftime in return for a series of payments by the lessee to the lessor. (Source: AAS) (2)An agreement that conveys the right to acquire an asset that delivers, or is expected to deliver,services and that yields, or is expected to yield, revenue for the organisation leasing the asset.(Source: SSA)See also Financial lease, Operating lease.
(1) The estimated period of time over which an asset is expected to be able to be used, or the benefits represented by the asset are expected to be derived. (Source: CA) (2) The complete life of an asset, from acquisition through to controlling, operating, maintaining and disposing of the asset. (Source: SSA)
(1) The total cost of an item throughout its life, including the costs of planning, design, acquisition, operations, maintenance, and disposal, less any residual value. (Source: NCRB) (2) The total cost of providing, owning, and maintaining a building or component over a predetermined evaluation period. (Source: NCRB)
A technique that enables a comparative cost assessment to be made for various investment alternatives, over a specified period of time, taking into account all relevant factors, both in terms of initial capital costs and future (estimated) costs. The object of LCC is to identify the most obvious economic overall choice. Initial costs include all investment costs directly related to a project, such as the costs of planning, design, construction and installation fees and charges, and financing costs, and future costs. Future costs mainly comprise operating, maintenance rehabilitation, demolition or removal costs, and property and capital gains taxes. (Source: NCRB) (See also Life cycle costing)
The study of the economic consequences of alternative proposed assets for a defined function, taking into account benefits as well as costs over the life cycle of the asset, and usually incorporating the conversion of present and future cash flows to a common basis to allow for the time value of money. (Source: NCRB)
The total cost of owning the asset, considering costs of both a capital and recurring nature. examples include design, construction, maintenance, insurance, refurbishment, operating and disposal costs. (Source: CA)
A qualitative description of probability and frequency. (Source: SAA: AS4360) Non-emergency maintenance required to repair failed equipment, plant or facilities where the failure and/or the type of equipment, plant or facilities does not have an immediate impact on the health, safety, security or welfare of the occupants or users of the equipment, plant or facilities and does not have an immediate impact on the structural integrity of the associate asset. (Source: SSA)
Any negative consequence, financial or otherwise. (Source: SAA: AS4360)
A characteristic of design and installation usually identified by the time and effort that will be required to retain an item as near as practical to its new condition within a given period of time. (Source: NCRB)
A form of performance indicator such as the ratio of the required asset maintenance per annum as a percent of the capital replacement value compared with the norm for that type of asset. (Source: NCRB)
All actions necessary for retaining an item or asset in, or restoring it to, its specified performance over its planned life. (Source: SSA)Maintenance does not include modification of an asset from its original condition; therefore activity to sustain a building at its designed level of service is not considered to be maintenance if it involves modification of the asset from its original condition (or design).Backlog maintenance - Maintenance that was programmed to occur, or became necessary, in a particular time period but was not carried out in that period. (Source: NCRB)Breakdown maintenance - Those activities which are associated with the repair or servicing of site features, buildings and plant or equipment which have become inoperable or unusable because of the failure of component parts. (Source: SSA)Logged breakdown maintenance -Non-emergency maintenance required to repair failed equipment, plant or facilities where the failure and/or the type of equipment, plant or facilities does not have an immediate impact on the health, safety, security or welfare of the occupants or users of the equipment, plant or facilities and does not have an immediate impact on the structural integrity of the associate asset. (Source: SSA)Preventative maintenance - The actions performed to retain an item or asset in its original condition as far as practicable by providing systematic inspection, detection and prevention of incipient failure. Preventative maintenance is normally programmed, for example as 'predetermined preventative maintenance'. (Source: NCRB)Programmed Maintenance -Maintenance deemed necessary following analysis of life-cycle information and consultation with the client agency to determine the future and continued use of equipment, plant or facility, to restore that equipment, plant or facility to its original specified performance. (Source: SSA)Routine maintenance -Day to day operational activities to keep the plant operating (replacement of light bulbs, cleaning of drains, repairing leaks etc.) and which form part of the annual operating budget, including preventative maintenance. (Source: NCRB)A contract arranged to cover regular operational maintenance and repairs to a building, and associated specific systems or items of equipment. (Source: NCRB)
The organisation of maintenance activities within an agreed maintenance policy. (Source: NCRB)
A formal plan that both details and budgets for conduct of works, including preventative maintenance, improvements, minor works and property related services that will be implemented, for a specific asset or facility within the agreed maintenance policy. (Source: SSA)
A formalised framework, accepted by senior management, within which decisions on maintenance are taken. (Source: NCRB)
See Maintenance plan.
See Maintenance plan.
See Maintenance standards.
The standards set for the maintenance service, usually contained in preventative maintenance schedules, operation and maintenance manuals, codes of practice, estimating criteria, statutory regulations and mandatory requirements, in accordance with maintenance quality objectives. (Source: NCRB)
See Capital works.
See Capital works.
The planning and interactive controlling of human, material and financial resources to achieve time, cost, quality, functional and scope requirements. It involves the anticipation of changes to resources due to changing circumstances and the making of such changes to minimise their effect. (Source: NSW)
A formal plan that details the management process that will be implemented for a specific asset or group of assets from within the agency's asset portfolio. (Source: SSA)The estimated value of an existing item, asset or facility if put up for sale on the current market, representing the amount of money the asset would realise under prevailing market conditions and subject to a free bargaining process. (Source: NCRB)A formal plan that details the management process that will be implemented for a specific asset or group of assets from within the agency's asset portfolio. (Source: SSA)
A construction project of a value of up to $150 000. (Source: SATF) (Note: the costs must not be split between orders to fit within delegations and/or approvals.)
A model set of requirements prepared for adoption or adaptation by authorities controlling building or land development, used predominantly in North America. Model codes have no legal status until formally adopted by a jurisdiction. The predecessor of the Building Code of Australia, the Australian Model Uniform Building Code was a model code prepared jointly by the Australian States and Territories as a basis for achieving uniformity of format and contents in their building regulations. (Source: NCRB)
A construction site subject to agreements and procedures to achieve a good environment through the minimisation of disputes and confrontation. Usually refers to industrial relations but can apply to any new procedure in areas such as training, contracts or tendering. (Source: NCRB)
To check, supervise, observe critically, or record the progress of an activity, action or system on a regular basis in order to identify change. (Source: SAA: AS4360)
The process of selecting a preferred service provider using a number of individual tender stages, such as short-listing or prequalification prior to the final tender. (Source: CA)
The result of detailed research into underlying market demand (or acceptance) for the particular goods or services. (Source: SSA)
Principals negotiate with a single contractor to achieve a desired outcome, sometimes after the receipt of tenders. (Source: SAA)
The negotiation of a contract with one or more tenderers following the close of tenders. Often where there is no conforming tender or no acceptable price bid. The conditions for, and conduct of tender negotiations form part of the Code of Tendering, AS4120. (Source: SSA)
The amount which could be expected to be received from the disposal of an asset in an orderly market after deducting costs expected to be incurred when realising the proceeds of the disposal. (Source: SATF)The discounted present cost of the flow of all expenses including capital outlay over the evaluation period for the asset, building or component under consideration. (Source: UN)
The sum of the discounted benefits less discounted costs of a project. (Source: SATF)
A subcontract for work specifically nominated in the contract documents, such as the supply and/or installation of specialised systems or components in a project. The subcontract is established by the Principal or the Superintendent on the basis of a separate tender and may be included in the main contract as a 'provisional sum'.(Source: NCRB)
A subcontractor selected by the Principal on the basis of a separate tender to provide work specially nominated and defined (see nominated subcontract).The nominated subcontractor and the head contractor must enter into a contractual arrangement for the work so defined. Some contracts also include nominated suppliers. (Source: NCRB)
A means of increasing service capacity or capability without creating or acquiring additional assets. (Source: SSA)
Methods of addressing demand other than by adding asset capacity (ie no build solutions, pricing mechanisms, selective targeting of services etc.). (Source: SSA)
Work generally involving a single trade of a stand alone nature with obvious work standards and finishes. (Source: SSA)
A contract that discharges a prior contract, creates a new contract and includes as a party to the new contract a person who was not a party to the discharged contract. (Source: USA)For example, in a Design and construct contract (qv.) the Principal may initially contract with a Consultant to carry out the design and documentation of a project to the extent that:•the project is clearly identified and documented, and•on the basis of these documents, the Principal can call for tenders and select a Contractor. The Principal's contract with the Consultant is then novated to the Contractor. That is:•the original contract between the Consultant and the Principal is discharged, and•the Principal forms a new contract with the Contractor under which- the Consultant becomes responsible to the Contractor for the completion of the design and documentation, and- the Contractor becomes responsible to the Principal for the overall completion of the project.
Impairment of the functionality, level of service, maintainability or usefulness of an asset resulting from economic, environmental, physical or technological changes. (Source: SSA). (1) An invitation to tender for the construction of a project or part of a project, issued to all interested parties through a public advertisement. Also called a public tender. (Source: NCRB). (2) Principals invite by public advertisement without restriction on the number of tenders sought. Principals would normally require tenderers to prove they have the necessary competence, resources, industrial relations, quality and safety management and financial capacity to carry out the work. (Source: SAA)
A lease under which the lessor effectively retains substantially all the risks and benefits incidental to ownership of the leased asset. (Source: AAS) (See also Lease, Finance lease)
The costs to an individual or enterprise of the alternatives foregone as the result of a decision to carry out a specific action. (Source: NCRB)
A formal process of cooperation between the client, the design team, the contractor(s) and suppliers to achieve a more efficient outcome in a construction project and minimise or eliminate disagreements or disputes, based on mutual understanding of each other's expectations and values and joint benefit from any resultant economies. A partnering agreement which sets out the objectives is usually drawn up following the award of the contract and supplements the primary contract. (Source: NCRB) See also Strategic alliance
The time it takes for the cumulative benefits of an investment to equal the original investment and other accrued costs. (Source: NCRB)
A quantitative or qualitative measure of the quality of service, efficiency, productivity, or cost effectiveness of an agency, program, or activity which enables a comparison to be made, for management purposes, or performance against a standard target, benchmark or norm. (Source: NCRB)
A type of performance indicator, expressed as a ratio or combination of items, which results in a value with compound units such as dollars per square metre, person hours per job, or operating hours per year. (Source: NCRB)
A record of items considered worthy of identification as discrete assets. A physical asset register includes information about each asset such as the type of construction and technical details. (Source: NCRB) (Details could include location, value and construction type)
See Project initiation process.
A statutory authority with powers and responsibilities to prepare, implement and administer planning schemes in accordance with planning acts and regulations. (Source: NCRB)
A general statement of policy and a suggested action framework for development laid down by a planning authority. (Source: NCRB)
Equipment and tools used in building operations. (Source: NCRB)
The total group of assets and facilities for which an agency is responsible. (Source: SSA) A document which identifies under-performing, under-utilised, poorly located or irrelevant built assets and associated land holdings and addresses strategies for their disposal. (Source: SSA)
A document which identifies the short and long term requirements of an agency and provides a framework for managing its asset portfolio. (Source: SSA)Portfolio disposal plan - A document which identifies under-performing, under-utilised, poorly located or irrelevant built assets and associated land holdings and addresses strategies for their disposal. (Source: SSA)A document which identifies the short and long term requirements of an agency and provides a framework for managing its asset portfolio. (Source: SSA)
A document which sets out the strategies for management of demand, procurement, use, maintenance, operation, rehabilitation, disposal and replacement of an agency's asset portfolio which maximises return on investment at the required standard of service. (Source: SSA)
A document which identifies the short and long term asset requirements, and provides a framework for the management of demand and the procurement of assets for an agency. (Source: SSA)
A careful and systematic evaluation of the performance of an occupied facility measured in terms of user satisfaction, fitness for purpose (based on client requirements), technical performance and value for money. (Source: NCRB) (A post occupancy evaluation should be conducted relative to the benchmarks established in the evaluation brief.)
The stage reached when a project has been essentially completed and is fit for its intended purpose, except for minor omissions and defects that do not prevent its use, and with tests required under the contract having been carried out. Practical completion is marked by the issue to the contractor of a 'certificate of practical completion' by the Superintendent. (Source: NCRB)
The process by which tenderers are assessed as to their capability with respect to performing categories and values of particular works. The assessment is based on their recent past performance, technical, managerial and financial. See also registers. (Source: UN)
Principals invite expressions of interest in being preregistered for a specific project or specific types of projects. Applicants are evaluated and a small number of those meeting the required criteria are invited to tender. (Source: UN)
That part of a payment to a contractor which is paid directly to the Australian Taxation Office. (Source: SSA)
The equivalent value today of a benefit or cost to be incurred at some future point in time. (Source: SATF). (1) Maintaining an asset adequately. (Source: NCRB). (2) The policy of saving or preserving historic buildings or monuments by various means, including maintenance or reconstruction. (Source: NCRB). (3) Maintaining the fabric of a place (building, site, etc.) in its existing state and retarding deterioration. (Source: BC)
The actions performed to retain an item or asset in its original condition as far as practicable by providing systematic inspection, detection and prevention of incipient failure. Preventative maintenance is normally programmed, for example as 'predetermined preventative maintenance'. (Source: NCRB)
The quantity of money which must be exchanged for one unit of a good or service. (Source: SATF)
See Principal consultant.
The party to whom the contractor is legally bound to construct the works. The term 'Principal' is used in most Australian contracts in lieu of 'client' or 'proprietor'. The Principal operates in conjunction with the Superintendent and Superintendent's representative. (Source: NCRB) (The Superintendent and the Superintendent's Representative derive their authority by delegation from the Principal. See Superintendent and Superintendent's Representative.)
See Superintendent.
Central point of contact within Services SA who facilitates client service requirements by creating a framework in which a project or service can proceed taking into account strategic issues, asset risk management etc. (Source: SSA)
Evident honesty and integrity. (Source: NSW)
The means, contractual or non-contractual, by which the objectives of a project or program are to be achieved. It is a combination of a delivery system and one or more contract systems. (Source: NSW)
As distinguished from a project, a series of works which can include projects, but which may have no identifiable beginning or end. (Source: NSW)A systematic assessment of the extent to which:. (i) program objectives match government priorities (appropriateness);. (ii) program inputs are used to maximise program outputs (efficiency); (iii) program outcomes achieve stated objectives (effectiveness)(Source: SATF)
Maintenance deemed necessary, following analysis of life-cycle information and consultation with the client agency to determine the future and continued use of equipment, plant or facility, to restore that equipment, plant or facility to its original specified performance. (Source: SSA)
A certificate issued by the Superintendent to the Principal and the contractor, indicating the percentage or agreed stage of progress in a works project, against which payment is made to the contractor by the Principal. (Source: NCRB)
A payment made to the contractor by the Principal, following the issue of the progress certificate by the Superintendent, at intervals specified by time, such as monthly payment for work completed in that month, or a payment on completion of a specified stage of work such as the basement floor structure. (Source: NCRB)
. (1) A building or engineering undertaking from inception to completion, involving a number of interrelated activities. A project for the construction of which a contract has been signed is often called 'works project' or just 'works'.(Source: NCRB). (2) An undertaking with a defined beginning and objectives by which completion is identified. A project may be completed using one contract or a number of contracts. (Source: NSW). (3) Any proposal that requires the weighing up of costs and benefits in order to meet a desired objective. The term is not restricted to a capital works or recurrent project. (Source: SATF)
. (1) The functional and operational requirements for the proposed project, stating the end user's requirements and setting out objectives in terms of time, cost, quality, function and scope. (Source: NSW) See Client brief.. (2) The brief developed by the client as a result of rigorous evaluation of service delivery needs and options and forwarded to the design team for interpretation into a design for a built asset. (Source: SSA)
The target estimate of the final cost of a project, including provision for all costs from inception to completion. (Source: NSW)
An asset strategy responding to a service delivery strategy developed to address identified demand. (Source: SSA)A representation of the adopted solution to the requirements of the project brief in a form understood by the client and others, where the functional relationships are resolved and the structure, envelope and fabric are described in line drawings. (Source: SSA)
A structured, systematic and analytical process undertaken to ensure that the project design achieves value for money while meeting functional objectives. (Source: SSA) (See also Value management and Strategic value management.)
A considered assessment of a project, that can be made before or after the fact or while the project is in progress. The Treasurer's Guidelines for the evaluation of public sector projects (TI 9105) refer mainly to situations that are before the fact, but the principles are equally applicable to other issues. (Source: SATF)
The early phases of a project from the initial idea to the approval to procure, including delivery and review. The project initiation process involves strategic planning, project concept, option identification, evaluation and definition of the preferred procurement strategy as well as delivery, performance review and feedback of information into the early planning phases. (Source: SSA)
A contract for the total management of a project by an independent person or organisation who is responsible for all aspects of design, documentation, contractual arrangements, inspections, and certification of work for payment and of completion on behalf of the Principal. (Source: NCRB)
(1)A professional or firm with the assigned responsibility for a project from inception to completion.(Source: NCRB) (2)A person who has the authority and the responsibility for the management of a project. It is used torefer to the person responsible for the project management contract and who manages a projectthrough all stages from inception to completion. The same project manager is usually, but notalways, responsible for all stages of the project. (Source: SSA) See Superintendent's representative.
The phase of a project between practical completion and its eventual replacement. (Source: NSW)
Testing the different service delivery or procurement strategies by quantitative methods (ie financial and economic analysis) and qualitative methods (ie level of consumer satisfaction). (Source: SSA)
The eventual replacement of a capital work after it has reached the end of its useful life. Such replacement may result in no new capital work. (Source: NSW). (1) A process of minimising project and probity risk by applying expert resources to assist in the identification and management of risk through project initiation, engagement of consultants, tender call, awarding of contracts and contract administration. (Source: SSA). (2) A formal process of auditing projects at initiation, engagement of consultants, tender call, awarding the contract and contract administration to ensure that project and probity risks are identified and managed by the project manager. (Source: SSA)
A group, usually chaired by an accountable officer or senior delegate and comprising major stakeholders, which is established to control a project from inception to completion. (Source: SSA)
A group which takes responsibility for ensuring that the required work is undertaken in accordance with the requirements of the steering committee and the project brief. (Source: SSA)
The management of a property on behalf of the owner. (Source: NCRB)
See Principal.
A supplier selection mechanism which selects the preferred contractor on the basis of qualifications or experience, before negotiating other contract/service details. (Source: CA)
One form of quality assurance where the setting of service standards, the process of review against these standards and the results of the review are formalised through an accreditation body. (Source: CA)
. (1) All necessary planned and systematic actions to provide confidence that a product or service will satisfy specified quality requirements which reflect the needs of the user. Effective quality assurance requires a continuing evaluation of factors affecting the adequacy of the design or specification for a proposed application, and the verification and auditing of production, installation and inspection operations, including the provision of evidence. Within an organisation, quality assurance serves as a management tool. (Source: NCRB). (2) All those planned and systematic actions necessary to provide adequate confidence that a good, product or service will satisfy given requirements for quality. (Sources: NSW,SAA)
A systematic and independent examination to determine whether quality activities and related results comply with planned arrangements; whether such arrangements are implemented effectively and are suitable to achieve objectives; and to whether there is a need for improvement or corrective action. A quality audit can be applied to a quality system or elements of a system (quality system audit), to processes (process quality audit), or to services (service quality audit). (Source: NCRB)The part of the overall management function that determines and implements the quality policy. It includes strategic planning, allocation of resources, and other systematic activities for quality, such as quality planning, operations and evaluations. (Source: NCRB) (See Quality system).
A document which sets out the specific quality practices, resources, activities and responsibilities relevant to a particular contract or project. (Source: SAA)
The overall quality intentions and directions of an organisation with regard to quality, as one element of corporate policy, authorised and formally expressed by top management. (Source: NCRB)
The organisational structure, responsibilities, procedures, processes and resources for implementing quality management. (Source: NCRB)
The price offered by a contracting organisation to do work or to supply goods or services.(Source: NCRB)
The difference between the interest rate and the inflation rate. (Source: NCRB)
Operating revenue less operating costs (including depreciation and excluding interest) divided by the written down current value of assets employed. (Source: SATF)
All costs, including the cost of finance, incurred in holding and operating an asset. (Source: SSA)
The planning and construction of new buildings or facilities on a large site or urban area, involving extensive demolition and replacement of existing buildings and structures. (Source: NCRB)
See under; Asset register, Contractor register and Consultant register. (Source: NCRB)
Extensive work intended to bring an asset up to a new standard or to alter it for a new use. (Refurbishment or upgrading) (Source: NCRB)
A project of works for a building or facility that can include demolition and rebuilding of major structural elements to enable reuse for its current or previous purpose, or conversion to a new use. (Source: SSA)Any action required to restore or make good an item after failure or damage, by replacing it in full or in part using an identical item or components or an interchangeable item or components. (Source: NCRB)
The complete removal of an item and the use of another in its place. (Source: NCRB)
A document seeking information and opinions from prospective tenderers as to costs and methods of providing the service. It may be used to short list contenders in a multi-stage tendering process. (Source: CA)
An invitation to submit tenders addressing the full range of criteria and conditions listed in the tender document. (Source: CA)
The remaining effective life of an asset. (Source: SSA)
The remaining level of risk after risk treatment measures have been taken. (Source: SAA: AS4360)
The net amount expected to be recovered on disposal of a depreciable asset at the end of its useful life. (Source: SATF)
Commonly referred to as inputs in a production process (eg land, labour, capital). (Source: SATF)
. (1) Comprehensive actions intended to bring an asset or item back to its original appearance or state. Restoration is not solely for functional or operational reasons, carried out as part of the maintenance process but may also be required for historical preservation. (Source: NCRB). (2) Returning the existing fabric of a place (building, site, etc.) to a known earlier state by removing accretions or by reassembling existing components without the introduction of new material. (Source: BC)
A project-specific fund established under the contract, in which an agreed percentage of the contract sum is retained by the Principal as a limited security to ensure the satisfactory performance of the contractor in relation to obligations under the contract and the rectification of defective workmanship. At practical completion part of the moneys in the retention fund may be released to the contractor, with the balance released at the end of the defect period or upon issue of the final certificate. (Source: NCRB)
The sum of money specified in a retention clause of a contract, regularly deducted from the progress payments to the contractor and placed in a retention fund until an agreed percentage of the contract sum is reached. (Source: NCRB)
(1)The chance of something happening that will have an impact upon objectives. It is measured interms of consequences and likelihood. (Source: SAA: AS4360) (2)The possibility that an outcome is not achieved or is replaced by another outcome or an unforeseen event occurs. This includes both uncertainty due to future events and the consequences of limited knowledge, information or experience. The significance of risks is the impact that they may have on the achievement of proposal objectives, delivery goals or management effectiveness. (Source: SSA)
An informed decision to accept the likelihood and the consequences of a particular risk. (Source: SAA: AS4360)
. (1) The process of identifying risks, estimating their likelihood and evaluating potential consequences. (Source: NSW). (2) A systematic use of available information to determine how often specified events may occur and the magnitude of their likely consequences. (Source: SAA: AS4360). (3) A systematic use of available information to determine how often specified events may occur and their likely consequences. The purpose of risk analysis is to identify the causes, effects and magnitudes of risk and to provide a basis for risk assessment and treatment. (Source: CA)
The process used to determine risk measurement priorities by evaluating and comparing the level of risk against predetermined standards, target risk levels and other criteria. (Source: SAA: AS4360)
An informed decision not to become involved in a risk situation. (Source: SAA: AS4360)
The impacts on desired outcomes from the risk event occurring. (Source: NSW)
That part of risk management which involves the provision of policies, standards and procedures to eliminate, avoid or minimise adverse risk facing an enterprise. (Source: SAA: AS4360)
The application of engineering principles and methods to risk management. (Source: SAA: AS4360)
The potential impact of economic, financial or social loss or gain, physical damage or injury or delay on the achievement of project objectives, delivery goals or management effectiveness. (Source: NSW)
The methods applied to fund risk treatment and the financial consequences of risk. (Source: SAA: AS4360)
The process of determining what can happen, why and how. (Source: SAA: AS4360) The level of risk calculated as a function of likelihood and consequence. (Source: CA)
. (1) The systematic application of management policies, procedures and practices to the tasks of identifying, analysing, assessing, treating and monitoring risk. (Source: SAA: AS4360). (2) A structured way of identifying potential risks, analysing their consequences, and devising and implementing responses so as to ensure that proposal or project objectives are achieved. This includes management of ongoing risks associated with the ownership of assets. (Source: SSA). (3) A management technique used to identify and analyse potential risks and to implement appropriate responses. (Source: SSA)There is a specific role within the construction process, see project risk management, whereby the risks within a construction project are identified and managed. The term risk management is also used to refer to project risk management and the activities of the project manager in managing the identified risks.
A selective application of management policies, procedures and practices to the tasks of identifying, analysing, assessing, treating and monitoring risk. (Source: SAA: AS4360)
Intentionally or unintentionally retaining the responsibility for loss, or financial burden of loss within the organisation. (Source: SAA: AS4360)
Shifting the responsibility or burden for loss to another party through legislation, contract, insurance or other means. Risk transfer can also refer to the shifting a physical risk or part thereof elsewhere. (Source: SAA: AS4360)
Selection and implementation of appropriate options for dealing with risk. (Source: SAA: AS4360)
Day to day operational activities to keep the plant operating (replacement of light bulbs, cleaning of drains, repairing leaks etc.) and which form part of the annual operating budget, including preventative maintenance. (Source: NCRB)
A schedule included in a contract which sets out, for any section or item of work, the agreed rate or rates of payment to the contractor or subcontractor for the execution of that work. It is usually, but not always, based on rates quoted by the successful tenderer or amended after negotiations. (Source: SAA: AS2124)
. (1) A preliminary design drawing, sketch or diagram showing in outline form the general intentions of the designer. (Source: NCRB). (2) A descriptive and illustrative definition of a preferred option, including a time schedule, cost plan and schematic drawings, developed to a point where a limit of cost estimate can be established. (Source: SSA)A direct invitation to a limited number of contracting organisations, known for their proven experience or recognised ability to undertake specific work, to submit a tender for a particular type of project. (Source: NCRB)
A subcontractor selected by the contractor from a list of subcontractors approved by the Principal. (Source: NCRB)
See Selected competitive tender.
Principals may maintain a register of approved contractors whose capability has been confirmed. A small number of registrants are invited to tender on an appropriate rotational basis. Principals should regularly advertise for contractors wishing to be considered for inclusion on the register and regularly review and amend the register. (Source: UN)
(1)The testing of the variations in the outcome of an evaluation by altering the values of key factors about which there may be some uncertainty. (Source: NCRB) (2) Determination of how the results of a calculation or model vary as individual assumptions are changed. (Source: SAA)
See Service contract.
A contract that is primarily and substantially (ie. more than 50% by value) for the supply of labour. (Source: SATF)
At any point in the life of an asset, its ability to provide a service over and above a minimum acceptable standard. (Source: AAS)
A plan of action for the supply of services by an organisation to its clients which is consistent with that organisation's corporate goals. (Source: SSA)
. (1) Any land on which development is being carried out or is proposed to be carried out, regardless of whether such land forms all or part of a single allotment, or a number of continuous allotments. (Source: NCRB). (2) Lands and other places to be made available and any other land and places made available to the contractor by the Principal for the purpose of the contract. (Sources: SAA, SSA)The detailed study of all those characteristics of a site and its surroundings that might affect the planning design, construction, operation and performance of any building or engineering works on that site. Site investigation involves the examination of the site subsoil by drilling with core recovery for visual and laboratory analysis to ensure adequacy of support for proposed structures and buildings. This may be assisted by information contained in geological survey data and soil survey maps. In addition, a site investigation should include consideration of aspects such as access, drainage, liability to flooding and the availability of public utility services and construction materials. (Source: NCRB)
Australian Accounting Standard 17 - Accounting for Leases Australian Accounting Research Foundation, Sydney, 1987 Australian Accounting Standard 29 - Financial Reporting by Government Departments Australian Accounting Research Foundation, Sydney, 1993
The Illustrated Burra Charter Australia International Council on Monuments and Sites (ICOMOS) and the Australian Heritage Commission, Brisbane, 1992.
Handbook of Cost-Benefit Analysis Department of Finance, Australian Government Publishing Service, Canberra, 1991 Managing Risk: Guidelines for Managing Risk in the Australian Public Service: Exposure Draft Management Advisory Board & Management Improvement Advisory Committee, Canberra, 1995
The Macquarie Dictionary The Macquarie Library, Sydney, 1995
Glossary of Building Terms National Committee on Rationalised Building (NCRB), Standards Australia & Suppliers Index Pty Ltd, Sydney, 1994.
Capital Works Investment, Capital Project Procurement Manual New South Wales Public Works Department, Sydney, 1993 Capital Works Investment, Risk Management Guidelines New South Wales Public Works Department, Sydney, 1993
All about Contracting Out Office of Public Sector Management, South Australian Department of the Premier and Cabinet, 1995.
Risk Management Australian/New Zealand Standard AS/NZS 4360, Standards Australia, Sydney, 1995.
Guidelines for the Evaluation of Public Sector Projects Department of Treasury and Finance, Information Paper No.90/1, Adelaide, 1990
Strategic Asset Management Framework Department of Treasury and Finance & Services SA, Asset Management Policy Series, Adelaide, 1996Project Initiation Process for Capital Works Department of Treasury and Finance & Services SA, Asset Management Policy Series, Adelaide, 1996
Construction and Management: Recent Advances Proceeding of the National Construction and Management Conference, Sydney, 1994.
A contractor who provides specialised rather than general construction services not normally undertaken by the main contractor, such as the installation of air-conditioning systems. The specialist contractor either contracts directly with the Principal as a concurrent subcontractor, or subcontracts with the main contractor. (Source: NCRB)
A written document with technical directions and conditions describing one or more of the administrative and procedural requirements, the quality of materials and/or standards of workmanship necessary for the undertaking and satisfactory completion of a project or works. (Source: NCRB modified) (See Bill of quantities).
Parcelling of various related works to allow independent procurement of those works. (Source: NSW) StandardAustralian Standards Association or International Standards Organisation standard. (Source: NCRB)
A document describing in broad terms the nature of the service required by the contracting agency. It is focused on outcomes rather than processes, and may deal with price, performance standards, performance evaluation mechanisms, and other service delivery concerns. (Source: CA)
An agency-contractor relationship where each party acts in a manner consistent with the other's interests, beyond that required by a formal contract. (Source: CA) See Partnering
The comprehensive management of asset demand, procurement, use, maintenance, operation, rehabilitation, disposal and replacement to maximise return on investment at the required standard of service. (Source: SSA)
See Portfolio plan.
See Corporate plan.See Corporate plan.A structured, systematic and analytical process undertaken at the concept evaluation phase of the project initiation process to quantify and verify needs. (Source: SSA)
A contract in which the contracting parties are the contractor (or head contractor) and the subcontractor. The contractor is contractually obliged to pay the subcontractor, and the subcontractor is contractually obliged to carry out part of the works for the contractor in accordance with the terms of the contract. (Source: NCRB)
A secondary contractor who carries out work on the contract for the contractor (or head contractor) and is usually paid by the contractor rather than the Principal. (Source: NCRB)
An asset which does not have an opportunity cost, ie the stream of benefits foregone is equal to zero. Sunk costs and benefits are irrelevant in the benefit/cost analysis of a project as such an analysis considers the future benefits and costs. (Source: SATF)
. (1) The architect, engineer (or project manager) or other person appointed in writing by the Principal as the Principal's agent and notified to the contractor as such. The Superintendent is responsible to the Principal for all aspects of the administration of the contract for a project. Some of the functions may be delegated to a nominated Superintendent's representative. (Source: NCRB). (2) The certifier and agent of the Principal appointed in the terms of a contract. (Source: NSW)
. (1) A person appointed in writing by the Superintendent to exercise defined powers or duties on the Superintendent's behalf. (Source: NCRB). (2) A person appointed by the Superintendent to exercise some of the functions of the Superintendent. (Source: NSW)(Often these duties may be the day-to-day functions associated with managing the contract. See Project manager.)
. •Site: A generic term for a person with a supervisory role on a site. (Source: UN). •Works:. - A person responsible to the Superintendent who is based at the site of a large works project and has authority to deal directly with the contractor to ensure that the work is carried out in accordance with the original or amended contract documents and sound construction practices. (Source: NCRB). - On South Australian public works the Supervisor does not have the authority to deal directly with the contractor. (Source: SSA)
A contract that is primarily and substantially (ie. more than 50% by value) for the supply of goods. (Source: SATF)An analysis which provides an assessment of an organisations Strengths, Weaknesses, Opportunities and Threats to provide a snapshot of the present and a view of the future for that organisation. (Source: CA)
. (1) A formal offer, made in writing, to execute works or provide goods or services for a stated price and specified terms. (Source: NCRB). (2) An offer to do work based on tender documents and comprising a tendered amount, returnable schedules and correspondence received from a tenderer. (Source: NSW)
The place for lodgement of tenders in accordance with tender conditions or the invitation to tender. (Source: SSA) (Tender boxes are used to ensure the probity of the tender call. Normally the tender call will specify the tender box to be used for the purposes of that tender call.)
Formal process of requesting the submission of tenders for a project. Includes release of appropriate documentation, set tender period and closing date and the provision of other appropriate information. (Source: UN)
See select tenders, open tenders, pre-registered tenders, invited tenders and negotiated tenders. (Source: NCRB)
The assessment of tenders to determine the tender offering the best value. (Source: NSW)
A person providing a consultant service for design, project management of the like. (Source: SSA)(See Consultant.)
In a system-wide context, the sum of all those activities leading to infrastructure appropriate to the cost effective delivery of government services, those having the following major strands:. •identification of need for the asset;. •provision of the asset, including refurbishment;•operation of the asset, including its maintenance; and. •disposal and thus effective removal of the asset from an agency's portfolio.(Source: NSW)
. (1) The period over which an asset is expected to provide full service potential. (Source: SSA). (2) The estimated period of time over which a depreciable asset is expected to be able to be used, or the benefits represented by the asset are expected to be derived. (Source: CA)
See Asset utilisation.A performance measure of how effectively an asset or facility is being used to meet an agency's service delivery objectives. (Source: SSA) See Performance measure, Asset utilisation.
A systematic analysis to identify the essential functions of systems, equipment, facilities and procedures that are consistent with purpose, performance, reliability and manageability. This analysis will facilitate the achievement of those functions in a way that represents the optimum value. (Source: SSA)
. (1) The application of value analysis to building or civil works projects, usually by a multidisciplinary team, to achieve the required function of elements of a facility and the entire facility at the lowest overall cost for a specified level of quality. (Source: NCRB). (2) As above, with the aim for optimum value rather than lowest cost. (Source: SSA)
. (1) The comprehensive application of value analysis to both financial and technical management activities. (Source: NCRB). (2) A structured, systematic and analytical process, which seeks to achieve best value for money by providing all the necessary functions, consistent with required levels of quality and performance. (Source: SSA: AS4183 modified)Strategic value management -A structured, systematic and analytical process undertaken at the concept evaluation phase of the project initiation process to quantify and verify needs. (Source: SSA)Project design value management - A structured, systematic and analytical process undertaken to ensure that the project design achieves value for money while meeting functional objectives. (Source: SSA)
An addition to, omission from, or alteration to the works under a contract or to the contract conditions, normally executed by means of a 'variation order' to the contractor from the Principal or the Superintendent as the agent of the Principal. (Source: NCRB)
All costs involved in a project including the capital costs (planning, construction, land and equipment) and the operating costs (staffing costs and the costs of maintenance and refurbishment). (Source: SATF)
In construction, the whole of the work described in the contract documents, including variations, which the contractor has contracted to provide. (Source: NCRB)