GUIDE TO ASSET MANAGEMENTPart 1: Introduction to Asset Management Guide to Asset Management Part 1: Introduction to Asset Management Guide to Asset Management Part 1: Introduction to Asset Management Summary This document introduces the Austroads Guide to Asset Management, the aim of which is to offer guidance on how to best manage physical road infrastructure. The guide covers various aspects of asset management including how to determine and plan to accommodate stakeholder/community expectations, formulate and review asset strategies, develop works programs, assess asset performance and undertake asset valuation and audit. Whilst the focus of the Guide to Asset Management is on the management of the physical road assets, the importance of total transport system management, which covers all activities concerned with the provision, operation, maintenance, renewal and disposal of transport infrastructure assets, is duly recognised. Road asset owners and managers are therefore encouraged to adopt a comprehensive range of coordinated activities, from transport planning, through design, implementation and operations in order to maximise community benefits. The guide complements the Austroads Publication AP-R202/02 Integrated Asset Management Guidelines for Road Networks, which describes in detail the integrated asset management planning processes and recommended implementation stages aimed at achieving business improvements within road agencies. The guide also recognises the purpose of the Australian Transport Council’s National Guidelines for Transport System Management in Australia, the scope of which embraces all land transport modes and is compatible with its principles. The specific sections of the guide and its accompanying commentaries elaborate key road asset management principles through providing best practice recommendations and by way of example. Keywords Asset management, roads, stakeholder/community expectations, asset strategies, works programs, asset performance, asset valuation, audit, implementation, business process, improved practices, information systems, decision support tools, objectives, road use management, heavy vehicle access, service levels, intervention levels, whole of life cycle costing, managing risks First published 2006 Second edition November 2009 © Austroads Inc. 2009 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without the prior written permission of Austroads. ISBN 978-1-921551-87-1 Austroads Project No. AP1008 Austroads Publication No. AGAM01/09 Project Manager Kathy Martin, MR WA Prepared by Kieran Sharp and Tyrone Toole, ARRB Group Published by Austroads Incorporated Level 9, Robell House 287 Elizabeth Street Sydney NSW 2000 Australia Phone: +61 2 9264 7088 Fax: +61 2 9264 1657 Email:
[email protected] www.austroads.com.au This guide is produced by Austroads as a general guide. Its application is discretionary. Road authorities may vary their practice according to local circumstances and policies. Austroads believes this publication to be correct at the time of printing and does not accept responsibility for any consequences arising from the use of information herein. Readers should rely on their own skill and judgement to apply information to particular issues. Guide to Asset Management Part 1: Introduction to Asset Management Sydney 2009 . Transport. Austroads is governed by a council consisting of the chief executive officer (or an alternative senior executive officer) of each of its 11 member organisations: Roads and Traffic Authority New South Wales Roads Corporation Victoria Department of Transport and Main Roads Queensland Main Roads Western Australia Department for Transport. Regional Development and Local Government Australian Local Government Association New Zealand Transport Agency. the Commonwealth Department of Infrastructure. The success of Austroads is derived from the collaboration of member organisations and others in the road industry. Regional Development and Local Government in Australia. Energy and Resources Tasmania Department of Planning and Infrastructure Northern Territory Department of Territory and Municipal Services Australian Capital Territory Department of Infrastructure. . Austroads membership Austroads membership comprises the six state and two territory road transport and traffic authorities. consistency and uniformity in road and related operations undertaking strategic research on behalf of road agencies and communicating outcomes promoting improved and consistent practice by road agencies. the Australian Local Government Association. Energy and Infrastructure South Australia Department of Infrastructure. and New Zealand Transport Agency. advice and fostering research in the road sector.Austroads profile Austroadsp purpose is to contribute to improved Australian and New Zealand transport outcomes by: providing expert advice to SCOT and ATC on road and road transport issues facilitating collaboration between road agencies promoting harmonisation. It aims to be the Australasian leader in providing high quality information. Transport. ....................................3..............4.................GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT CONTENTS 1 INTRODUCTION .............................. 23 3.................................................................4 Parts 5...........3...................................................4............................. 1 1.....2 1..... 23 3......... 3 1................................ 1 Definition and Scope of Asset Management.. 16 Performance Monitoring...5 1.1 3.......4 1.........4..3 1.......3................. 14 Developing Cost-effective Programs for the Long-term....................................7 The Need for Asset Management..5 Part 8: Asset Valuation and Audit ......3 Part 4: Program Development and Implementation.4 2............................................ 7 Achieving Effective Asset Management ............................................................................................5 2................................................ 2 1....3 Implementation and Continuous Improvement in Asset Management Practices ........... 2 1........................................ 25 Austroads 2009 — i— ........1 Introduction to the IAM Guidelines..........................................................................3..............................................................................................................................................................7 2.................................... Audit and Feedback ..... 1 The Aims and Benefits of Asset Management...... 9 2 OVERVIEW OF KEY ASSET MANAGEMENT PRINCIPLES AND PRACTICES.......2 Asset Management as a Process Approach........................ 23 3..2 3....................3 2....................2 2.................................................... 18 Continuous Improvement in Asset Management Practices and Human Resource Skill Development ..........8 Policy-driven and Results Oriented and Customer Focused ........................................ 15 Managing Risks Associated with Asset Failures ...................................... 1 The Austroads Integrated Asset Management Guidelines for Road Networks .............. 17 Use of Information Systems and Decision Support Tools ..................................6 REFERENCES .................................................................. 21 Relationship to other Austroads Publications ...........6 2............................................ 24 3................................ 12 Providing a Defined Level of Service......................3 Structure ............................................................... 6 and 7: Asset Performance ........................................................................................................................3.. 20 3 THE AUSTROADS GUIDE TO ASSET MANAGEMENT .........................2 Part 3: Asset Strategies ............................... 6 Relationship and Synergies with the National Guidelines for Transport System Management in Australia ..........................................................................................................................................................1 Part 2: Community and Stakeholder Requirements .............. 5 The Role of Asset Managers ...1 1................................ 10 2........................... 10 Managing Current Assets and Providing for Future Assets........................... 22 Scope of other Parts of the Austroads Guide to Asset Management .1 2....................................................... 24 3.. 24 1...................................................................................... 21 3. ....................... 8 Elements of asset management for road networks ................2: Figure 2...... 19 Structure of Austroads Guide to Asset Management with focus on Part 1 ....... 4 Hierarchy of linked objectives for transport system development.................................... 3 Differences in functional roles...............1: Integrated asset management process flow diagram ............1: Figure 1.................. 10 Typical road condition deterioration with time.....2: The asset management process .2: Figure 2.................3: Figure 2................................................... 12 Equitable and economically efficient standards .. 16 Central role of information in the asset management process ......................................................GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT TABLES Table 1...........................4: Figure 2.... 22 Austroads 2009 — ii — .........1: Table 1........1: Figure 2...............................5: Figure 3........ 15 Relationship between maintenance standard and transport costs ................................. 6 FIGURES Figure 1............. such as vehicle operating costs. they mean those costs incurred by the responsible road agency as well as the costs incurred by road users. environment and equity of access.3 Definition and Scope of Asset Management Roads exist as part of an integrated land transport system as a service delivery arrangement. energy. where funding is not constrained. Therefore road system managers need to have a strategic view to manage demand and match demand with supply. Austroads 2009 — 1— . The value of road infrastructure assets for all classes of roads in Australia and New Zealand is extremely high compared to other public infrastructure. health. This equates to approximately 50% of the total government capital investment in education. Within this context. together with the consequences of budget variations. asset managers should ensure that: Assets are managed to conditions which are appropriate for intended use. The government and the community demand increased accountability for effective and efficient spending of public funds. 1. when asset managers speak about whole of life cycle costs (WOLCC). with emphasis given to safety and minimising environmental impacts. recognising the duty of care owed to the public. for retaining the value and serviceability of these assets for future generations. In an ideal situation. are explicit. and to fulfil government objectives in terms of safety. of the order of A$150 billion dollars in replacement cost terms. It is essential that this context be borne in mind even in addressing the more routine maintenance activities to ensure cost-effective solutions are being delivered.2 The Aims and Benefits of Asset Management The key asset management objective contained in the Austroads Assets Strategy is to minimise the whole of life cycle costs of road assets.4). the best possible outcome for the community is achieved when the sum of road agency costs and road user costs is minimised. Effective stewardship is essential to help ensure public safety. Risks associated with asset use are managed. 1. through the ongoing provision of new and upgraded links and maintenance of existing stock to ensure the least long term cost to the community. Thus.1 The Need for Asset Management Effective asset management is of critical importance for all transport agencies and managers of road infrastructure because: Roads and associated infrastructure are vital links in the chain of communications providing access and mobility for communities and industry. mining and manufacturing combined. whilst aiming to meet the needs and expectation of the community and other stakeholders who use or benefit from the asset. its main focus is on the management and preservation of physical assets. and for providing best value to users and investors. travel time and crash costs (see Figure 2. Competition for limited funds across government and other sectors is increasing.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT 1 INTRODUCTION 1. The immediate and long-term budget requirements. To meet these objectives. 1. maintenance.1 Introduction to the IAM Guidelines In establishing best practice in asset management. asset management practitioners must be aware of the ongoing management implications of expansion decisions. Purely ‘asset-oriented’ interventions will prove constraining and potentially too expensive by not keeping a broad enough focus on all possible solutions. Whilst specialised sections of member agencies are actively concerned with the provision of new assets. such as: transport planning traffic modelling infrastructure maintenance. Austroads 2009 — 2— . preservation. or major projects project level preparation and implementation of works pavements. for the purposes of this guide the definition of road asset management is: Road asset management is a comprehensive and structured approach to the longterm provision and maintenance of physical road infrastructure using sound engineering. Asset managers need to make decisions in the knowledge of road use management (RUM) strategies and provide feedback to the road use managers in order to ensure optimal use of current assets. but is undertaken to ensure the operating functionality of the road network. operation. renewal and disposal of road infrastructure assets. in the broadest sense total road system management includes all aspects concerned with the provision. provision and renewal network operations (meaning road use management issues) project evaluation of new road infrastructure. business and environmental principles to facilitate the effective delivery of community benefits. It focuses on the physical asset recognising that: The management of physical assets is not an end in itself. Austroads has recognised the need for: a consistent framework of integrated asset management planning processes associated implementation guidelines for practitioners.4. economic. materials and bridge technology road design road safety traffic engineering. Therefore. However most of these functions are well documented in the Austroads Guide to Pavement Technology and the Austroads Guide to Asset Management complements these other guides by focusing on best practice management of the physical infrastructure.4 The Austroads Integrated Asset Management Guidelines for Road Networks 1.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Whilst the term asset management has a variety of interpretations in terms of scope. and provide the basis for specifying technological systems.1. Many organisations have also systematised this process.2 Asset Management as a Process Approach To aid the establishment of a consistent framework of processes and procedures for improving asset management practice. Austroads published a set of Integrated Asset Management Guidelines for Road Networks (Austroads 2002b). and defining a strategic plan based on identified corporate and stakeholder requirements. This conceptual framework has since been developed further and personalised by some state road authorities as part of their internal asset management practice.1. Austroads has adopted a conceptual framework which comprises three main parts and seven phases as shown in Figure 1. and will remain as a ‘flagship’ publication within the Austroads Guide to Asset Management. 1. disposal/rationalisation of the agency’s assets. Refer to Figure 1. Asset management performance feedback Part 3 Phases 6 and 7 * Audit Review Auditing the implementation and reviewing the outcomes of asset management actions to gauge their effectiveness in satisfying organisational strategies. Table 1. This section of the guide summarises the scope and contents of the IAM guidelines and places them in context by identifying links with the best practice recommendations and examples provided herein and encouraging commitment to the following key principles: adoption of a rigorous and cyclic process-based approach development of clear business processes and organisational accountabilities continuous improvement in asset management practices and human resource skill development.1 and Table 1. The results of such reviews are used as inputs to subsequent strategic planning cycles. operation. Asset management actions Part 2 Phase 5 * Implement works programs Creation/acquisition. referred to as the IAM Guidelines. in terms of establishing corporate procedures and complementary information systems and decision support tools. Austroads 2009 — 3— . Source: After Austroads (2002a). The asset management strategic planning process is the major impetus to the effective working of asset management. therefore. in 2002. complement the aims of this guide. rehabilitation and replacement.1: The asset management process Asset management strategic planning Part 1 Phases 1 to 4 * Define objectives Form asset strategies Develop investment programs Identify asset maintenance needs Setting asset management objectives. In so doing it describes: the asset management process the main stages of an asset management implementation program the role(s) of the asset manager. These are fundamental to the fulfilment of Austroads’ asset management objectives and. The process and procedures are fundamental.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Thus.4. Figure 1.1: Integrated asset management process flow diagram Austroads 2009 — 4— .GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Source: After Austroads (2002a) with minor adaptation. which deals with the flow of information from the Planning Sub-process. although each have a role to play. Many reputable organisations have adopted a similar approach and reaped significant benefits from so doing (AASHTO 2002 and VicRoads 2004a). it does not ignore the need for complementary activities and the benefits arising from an integrated approach. It is in fact much broader. This information serves to involve and inform external stakeholders. and outlines the need for various frameworks. The strategic planning stage is vital to effective asset management and consists of: The Planning Sub-Process. namely: Stage 1 Program establishment Stage 2 System design and development Stage 3 Pilot planning cycle Stage 4 General implementation. It is about delivering better performance results through appropriately targeted investment in the introduction and refinement of improved people skills. strategies and standards must also be regularly reviewed at least for current relevance. which describes the overall process flow. including: asset performance gap analysis. Organisational objectives. and facilitates decision making at different levels of an organisation by articulating internal objectives.4.3 Implementation and Continuous Improvement in Asset Management Practices Asset management is a way of doing business in the broadest sense. Austroads 2009 — 5— . The achievement of objectives through monitoring (Phases 6 and 7) provides feedback on the overall process allowing strategies to be reviewed and further actions planned. standards and strategies. which produces a total needs program optimisation and prioritisation of options and proposed funding scenarios and an outline of works programs submission of agreed work program. and seeks to alert asset managers about the range of infrastructure-oriented and other solutions at their disposal. the Austroads Guide to Asset Management recommends a structured re-assessment of current organisational practice to identify priority areas for improvement. The ultimate goal is to deliver benefits to all road transport stakeholders. Four sequential stages are recommended to progress a road agency from the early stages of initiating an asset management program to full implementation of the Austroads IAM process. Whereas many readers of this document will belong to institutions with established practices. The Information and Communication Sub-Process. However. It is not simply about implementing certain activities to achieve specified technical standards.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT The scope of network level asset management covered by the Guide to Asset Management concentrates on the provision and maintenance of physical infrastructure. products and processes. 1.1. shown as a subcomponent of Figure 1. strategies and plans. Whilst strategic planning may be performed on a multi-year basis linked to an authority’s planning and funding cycles. specific components fit an annual cycle. nor is it primarily concerned with the application of modern software tools. GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT 1. agency executive. Table 1. frontline practitioners ensuring the appropriate management and flow of asset related data and information across the organisation in order to inform asset strategy development and monitor asset performance providing a link between finance. new investment or capacity expansion Owners and project/asset managers or operators IAM Phase 5 Project investigation and design of works Preparation and issue of contracts and works instructions Project/asset managers or operators IAM Phase 5 Planning and undertaking major or minor works to be done on specific sections and projects Service providers and project/asset managers IAM Phases 6 and 7 Measuring achievements against key performance indicators Assessing future asset management strategies and plans Owners Asset managers or operators and service providers would be expected to implement internal QA systems as part of each specific function Preparation Implementation of physical works Typical aims Source: Adapted from Robinson et al.2: Differences in functional roles Management function Network information Network planning Programming IAM phases or related activities Monitoring and evaluation Organisations concerned All phases and activities Management and reporting of information on road assets Importation and export of data to analytical and reporting tools Owners. human resources. planning. structures. including use of non-build solutions Owners and asset managers or operators IAM Phase 4 Network screening to identify candidate sections Production of a long list of priority sections with ranking based on economic criteria. asset managers and service providers IAM Phases 1 and 3 Formulation of objectives and associated levels of service and standards Owners and sectoral policy advisers IAM Phases 2 and 3 Developing strategies and resource requirements to support defined levels of service. under budget constraint Determining the necessary work program to meet performance objectives Asset managers or operators IAM Phase 4 and Transport Planning Economic (and financial) feasibility of alternatives for rehabilitation. stakeholders. Austroads 2009 — 6— . standards and objectives. other road-related infrastructure ensuring consistent communication between legislators. (1998).5 The Role of Asset Managers The role of asset managers in integrating organisational decisions embraces the following: providing a link between strategic goals and longer term processes and annual project level decisions providing a link between asset creation and asset maintenance decisions providing a link between agency road use management and physical asset decisions considering all asset classes – pavements. community. information and delivery functions of the organisation providing asset performance feedback to inform future policies and strategies. should aim to identify their role in the overall process. and aim to achieve transport system objectives which are vertically linked. and are primarily concerned with the designated national land transport network and its corridors. which in turn aim to meet the transport needs of the community. particularly for major works encouraging increased involvement of project management and delivery staff in preparation and implementation activities. and integrated as illustrated in Figure 1. although the overall framework is relevant to all classes of transport infrastructure and associated modes. and post-completion review. preventative maintenance and rehabilitation components of an overall road infrastructure preservation strategy. At the highest level transport contributes to broader societal and whole-of-government objectives. The Australian Transport Council (ATC) has published National Guidelines for Transport System Management in Australia (ATC 2004) to provide a framework for non-urban land transport decisions.2. as illustrated by the examples in Table 1. namely project and program implementation. etc. the following points should be emphasised: ensuring that planning accommodates non-build solutions undertaking comprehensive project preparation activities. and not simply respond with a supply-side approach. Further examples would include the balance between the routine maintenance. planning.6 Relationship and Synergies with the National Guidelines for Transport System Management in Australia Road asset management needs to take place in support of total (land) transport system objectives. These guidelines address the Australian Government’s approach to funding. black spot improvement programs. both road and rail.2 will help improve effectiveness through focusing on particular tasks and doing them well. and individuals.g. A key requirement is to ensure ‘strategic fit’ between high level objectives and project and program responses. e. The National Guidelines also recognise that direct linkages will exist between non-sequential phases. The National Guidelines adopt a similar seven-phase approach as endorsed by Austroads.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Organisations. To achieve this requires appropriate strategies to be established and policy choices to be made. 1. Examples of the latter include: the degree to which desired outcomes should be pursued through land use policy developments rather than applications of transport instruments alone the preferred role of infrastructure versus non-infrastructure strategies and investment the strategic emphasis which should be given to such issues as road freight versus rail freight as preferred land transport modes the funding of capital (new asset stock) versus maintenance (existing asset stock) investment Austroads 2009 — 7— . Identifying such differences in functional roles. In so doing. such as regional Auslink programs. The challenge therefore is for road asset management to consider and contribute in a proactive manner to meeting this demand. The five-phases illustrated in the Figure are complemented by two further phases. developing and managing Australia’s national land transport infrastructure. The National Guidelines address multiple modes. between policy choices and program structure. including economic feasibility. while this guide is concerned with a network-oriented approach to road infrastructure preservation covering all road classes.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT the relative weights given to different objectives the degree to which an equity objective should be pursued to complement an economic efficiency objective in defining service levels and evaluating investment alternatives. Figure 1. In addition. the above issues are equally pertinent to both sets of guidelines and are addressed throughout this document. However. Source: After Australian Transport Council (2004).2: Hierarchy of linked objectives for transport system development The current version of the National Guidelines is predominantly related to large-scale capital investment on a selected part of the total land transport system. see for example Queensland Department of Main Roads (2002) and Queensland Transport/ Queensland Department of Main Roads (2000). it should be understood that this new. Road asset managers should familiarise themselves with the National Guidelines and always seek to support the transport needs of the community in its broadest sense. thus helping to ensure adoption of integrated solutions to meet society’s needs. Such initiatives are encouraged amongst all organisations. Austroads 2009 — 8— . both now and in the future. integrated approach to transport system management lends itself to the development of strategic long-term directions which promote the development of scenarios for anticipating future demand for transport services. A number of Austroads members have adopted this approach as part of their strategic planning process. Accompanying commentaries elaborate the above principles in the following areas: characteristics and example key results areas and key performance indicators increasing efficiency through road use management management of heavy vehicle access service levels and intervention levels whole of life cycle costing managing risks.7 Achieving Effective Asset Management To achieve effective asset management this guide offers guidance and best practice examples of the following asset management principles: adoption of a rigorous.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT 1. Austroads 2009 — 9— . audit and feedback employs appropriate quality information and decision support tools encourages continuous improvement in asset management practices and human resource skill development encourages development of clear business processes and organisational accountabilities. and cyclic process-based approach which is policy-driven and results oriented and customer focused manages current assets and provides for future assets provides a defined level of service develops cost-effective programs for the long-term manages risks associated with asset failures requires performance monitoring. These relationships also provide a framework to monitor and review existing strategies.1: Elements of asset management for road networks In recognition of the principle that roads should be treated as a service to the community. policies and budget constraints. Austroads 2009 — 10 — .GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT 2 OVERVIEW OF KEY ASSET MANAGEMENT PRINCIPLES AND PRACTICES 2. Phase 1 of the Integrated Asset Management Process requires clear assessment and definition of ‘Road Agency and Stakeholder Requirements’ and for these to be articulated in terms of key results areas (KRAs) and key performance indicators (KPIs). focus groups and other structured methods is an essential requirement of good asset management. These should be consulted prior to planning. Stakeholder and community input through surveys. An understanding of how they relate is necessary to develop and review the effectiveness of an overall strategy. Austroads have and continue to undertake significant studies in this area. see for example Tsolakis and Thoresen (1998) and the Austroads publication Guidelines for Community Input in Setting Levels of Service and Intervention Standards for Road Networks (Austroads 2002b). Figure 2. Performance objectives provide a way to convey to the community how agencies are managing public assets. implementing and presenting the results of surveys.1 illustrates how asset management strategies aim to meet these needs and are developed from a number of elements. Customer input is fundamental in setting standards and must be followed by ongoing review to track whether customer expectations are being achieved.1 Policy-driven and Results Oriented and Customer Focused Asset management is conducted within the context of organisational goals. Goals and policies must be established within a framework which incorporates community input. Figure 2. by considering environmental outcomes in planning and decision making and by employing appropriate methods and measures to reduce impacts and enhance environmental values (Austroads 2006). They should be in line with corporate objectives and should reflect an agency’s internal operations and performance. KRAs should embrace economic. customer service and financial performance. but statistics related to each indicator are published and provide a basis for monitoring trends in service levels and other indicators. ten of which are classed as road agency performance indicators. achievable and be used to: formulate strategies and therefore be applied in IAM Phase 2 determine asset management actions as part of IAM Phases 3 and 4 monitor the achievement of organisational goals and service levels in IAM Phases 6 and 7. safety. commercial ‘willingness to pay’ approach may be best suited. Consequently. Asset management objectives. or KPIs.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT From a broad asset management perspective. important considerations include: a need to start at a network level to agree overall principles and prevent local issues from dominating outcomes from the outset giving sufficient attention to study design so that the objectives of any consultation are fulfilled as far as possible identifying who the ‘community’ is and ensuring appropriate representation for the task in hand. For example: ensure a safe road infrastructure deliver a target level of service. including different rural and urban situations. social. Austroads 2009 — 11 — . environmental. attributable. and circumstances where investment is driven by traffic demand or mostly by social justice and other factors distinguishing between circumstances where a trade-off under a zero-sum scenario may be appropriate. Austroads National Performance Indicators (Austroads 2001) facilitate assessment of both road system and road agency performance of Austroads member authorities and can provide a basis for defining suitable indicators for other organisations. should also be formulated which are more tightly defined in terms of indicators and target criteria. The Austroads performance indicators are available on the Austroads website and at the time of writing comprise a set of 36 indicators. Agency KRAs should be defined for each generic area in which improvement is required or performance should be monitored. and those where a more direct. including those stakeholders that represent the entire community. and the service provided to users or areas affecting other stakeholders. directly and objectively measurable. where the latter may help explain why certain issues are important to users. these KPIs should be specific. capable of being monitored. whilst the former may help quantify their importance focusing questions to represent the type of road environment. those with a local social interest and those with a clear financial interest being clear about the value of both qualitative and quantitative surveys. including meeting ride quality and capacity targets which contribute to overall transport efficiency preserve the physical assets and provide continuity of access contribute to a sustainable environment. Specific targets are not set. affordable. for example see VicRoads (1993).2 Managing Current Assets and Providing for Future Assets The development of road asset management strategies forms the core of IAM Phase 2. can reduce long-term costs. 2. These and similar strategies are highly recommended as they have been found by many practitioners to provide a return on investment of around two or three times that obtained when assets are allowed to deteriorate in an uncontrolled manner. The ‘stitch-in-time’ policies used by a number of Australian road agencies. It should contain a suitable range of interventions which are essentially preventative in nature and. Road authorities report this and other information. which are particularly applicable to the preservation of pavement assets. defined as the proportion of travel undertaken each year on roads less than a specified level of roughness. the type of travel and types of vehicles allowed.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT For asset management. The level of road system performance provided by the asset can be affected by management actions which influence the need for travel. as illustrated in Figure 2. Source: After SADC (2003). and also record achievements against the target or limiting values which they aim to achieve. An effective infrastructure management strategy should address both existing and new assets. Figure 2. they should be developed in coordination with road use strategies. and targets may also vary. Reporting may be made separately for different classes of road. typically at annual intervals.2. the most widely used road agency performance indicator in Australia and New Zealand is Smooth Travel Exposure (STE). Whilst investment programs concentrate on maintenance and rehabilitation of road pavements and bridges. or to a condition where full replacement is necessary. adhere to this principle.2: Typical road condition deterioration with time Austroads 2009 — 12 — . Preventative periodic maintenance designed to reduce future deterioration by timely surface interventions to limit the need for expensive rehabilitation. poor implementation or a discrete increase in traffic loading patterns. Safety may also be a concern. including where basic drain clearing is not performed to an adequate level. it is likely that expenditure on rehabilitation is too low. and to ensure minimum skid resistance and general safety levels are maintained. for example see Austroads (2004a). Such works can be relatively modest in unit cost terms. including identifying the need for additional traffic capacity or improved traffic management measures. neglect. and essential activities to remove obstacles from the road and ensure a base level of road safety. Where a large program of rehabilitation exists. say greater than 3-4% per annum. such works are very costly and might be expected to be of the order of five to ten times more costly than a preventative treatment program. Considerable evidence exists which demonstrates that rates of deterioration are higher in the absence of effective routine maintenance. Conversely. The need for such activities should not be underestimated. It is important therefore that such issues are taken into account in both infrastructure and road use management. Rehabilitation which targets roads whose ride quality has deteriorated significantly. where the replacement program is very small. and programmed maintenance costs are increasing and condition is falling. and should aim to undertake any analysis in a nationally consistent manner (Austroads 2004b). Timely intervention of appropriate quality is best. Strategies need to recognise the current state of knowledge regarding heavy vehicle contributions to the damage of road pavements and structures. or which display inadequate structural capacity for current or future traffic loading. drain clearing and the like. but highly effective when based on whole of life considerations and not by adopting a ‘worst-first’ approach. Road safety and blackspot improvement programs to reduce the incidence of road crashes and provide appropriate facilities for pedestrians and cyclists and other vulnerable road users. Management strategies for heavy vehicle access to deliver efficient freight services thus helping provide customers with goods at affordable prices. Austroads 2009 — 13 — . Appropriate solutions should be developed based on best practice. it is likely that this reflects a lack of investment in periodic interventions. However. timely rehabilitation is required to ensure whole of life cycle costs are minimised. say less than 1% per annum. By their nature.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Those components of an infrastructure (preservation) strategy which seek to ensure adequate performance of existing assets comprise an appropriate mix of the following road asset management responses: Routine maintenance activities which address minor defects on the carriageway and structures. asset managers are often worried at the existence of very heavy or oversized vehicles and the potential for accelerated damage to roads and structures. the above set of responses needs to be extended to include: Capacity improvement programs to optimise traffic flow. In today’s environment. Solutions require considerable co-ordination both within and between agencies and in many cases the optimum response may be through improved road use management. Again. off-carriageway works including grass cutting. and to minimise loss of assets. and may form the basis of an ‘economic base case’ for investment analyses. asset strategies should be developed with clear level of service objectives providing the basis for: planning needs assessing risks gauging the quality of delivery. and their use. The choice therefore is to set levels of service which strike a balance between being equitable and in being economically efficient. However. The adoption of a set of ‘stepped minimum standards’ can achieve a comparable result. Acknowledging this is generally accepted as good practice. Absolute levels of service should be varied with respect to the role and importance of the asset and its use within the road system. and there is general acceptance that a minimum level of service.3.3 Providing a Defined Level of Service As per Phase 3 of the Integrated Asset Management Process. Each agency must establish levels of service appropriate to its organisational goals and resource constraints. Higher trafficked roads warrant a higher level of service.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT 2. including for basic access major structures such as bridges and culverts environmental and social impacts. Lower trafficked roads provide fewer opportunities for direct road user savings to offset investment costs. The range of possible options is illustrated in Figure 2. and is highly recommended. and consistent with the perceived needs of the community. nor uniform standards. and is an essential catalyst to growth in economic and social terms. Austroads 2009 — 14 — . Most asset managers and planners recognise such linkages. should be adopted as a general policy. Typically. minimum levels of service should be encouraged to ensure basic levels of safety and accessibility to essential services. Levels of service should be established for: all classes of assets. these being amongst the least visible yet most important. which may be varied based on demand. and therefore associated service levels are generally lower. This increases overall transport efficiency through better ride comfort and higher travel speeds. which neither favour economically efficient standards. practical considerations usually warrant the adoption of ‘equitable standards’. and helps reduce costs to road users. Access also promotes productivity. GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Source: After ATC (2004). comprehensive WOLCC promotes consideration of total costs including construction. 2. and are delivered as a ‘Total Needs Program’ in IAM Phase 4 and should be presented with accompanying plans for: the entire road network a region a road corridor a road link. Significant benefits can be gained by employing solutions planned using whole of life cycle costing (WOLCC). Austroads 2009 — 15 — . In many cases these are also directly related to engineering design guidelines with respect to the safety. Road investment programs are formulated on the basis of a gap analysis which is performed during IAM Phase 3. speed and comfort of travel. By adopting a long-term view of the road system. safety costs and associated maintenance and rehabilitation costs. maintenance and operational expenditure and all of the variables involved in the evaluation such as user costs (delays.4 Developing Cost-effective Programs for the Long-term Road investment programs present a set of programmed management actions to achieve performance objectives and are linked to the expected life of the assets and their maintenance treatments. The availability of such targets provides a further yardstick against which performance can be monitored and reported later in Phases 6 and 7. travel time and vehicle operating costs). or project.3: Equitable and economically efficient standards Most road authorities publish target level of service criteria which are based on a hierarchy related to function and overall use. Figure 2. agency capital costs and routine life cycle maintenance costs. WOLCC involves an evaluation of all the component costs incurred over the whole life of a project. 5 Managing Risks Associated with Asset Failures Risk management is a core component of asset management activities.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT The manner in which the component costs change is illustrated in Figure 2. Austroads 2009 — 16 — .4 above) operational risks – by appropriate planning and operational responses in order to limit harm to individual members of the public or to their property. the effects of treatments and user cost modelling on the infrastructure to compare alternative investment strategies.4: Relationship between maintenance standard and transport costs 2. This increased alertness has resulted from changes in legislation which was promulgated following the Australian High Court’s decision in 2001 that the law of negligence should apply to roads. WOLCC employs the results of deterioration. with the aim of maximising benefits across a road network in order to prepare long-term road development and maintenance plans under different funding scenarios. The optimum (economic) standard is obtained when the total transport costs are minimised. Key risks managed through asset management are: financial risks – addressed through the adoption and enforcement of asset preservation and preventative maintenance policies (see Sections 2. if the road is built to a standard higher than optimum or if the timing of its implementation is either premature or significantly delayed. where increases in construction/rehabilitation expenditure reduce the costs to road users.3 and 2. the purpose of which is to: determine how asset life may be best extended by controlled maintenance determine the optimum timing. then the benefits would not sufficiently outweigh the additional costs and therefore the solution would be sub-optimal. 2. and this optimum varies in relation to traffic level and the associated mix of costs.4.2. WOLCC techniques applied at a system-level allow competition for funds to take place between projects. Source: After SADC (2003). Care should be taken to avoid ‘false economies’ where expenditure shortfall below the optimum level of investment leads to significantly greater transport costs and long-term asset management backlogs. Figure 2. intervention levels and mix of treatments to be employed. For a given traffic level. 2. Monitoring processes need to be selected to enable assessment of customer satisfaction. Fortunately.g. surface condition. Asset owners are provided with information from delivery function areas through ‘as constructed’ drawings and plans for ongoing asset maintenance requirements. signage reflectivity). Provision to manage such risks should form an essential component of all asset management activities. Austroads 2009 — 17 — . resource allocation. This means that certain proactive actions aimed at managing risk are necessary including: regular inspections managed asset information maintenance standards. Failure to effectively manage the maintenance of roads (and road-related assets) to an appropriate and affordable standard places authorities in a position of liability on the grounds of ‘misfeasance’. with priority given to minimising operational risks. Asset performance is monitored by physical condition measurements of all asset classes (e. audit of work carried out and review of performance achievement completes the cycle of asset management. priority setting and decision making. Audit and Feedback As noted in Phases 6 and 7. defect severity and response times.6 Performance Monitoring. strength. Asset owners. comprising the inspection periods. an appropriate risk management process has similar components to those used in asset management. Thus ‘risk management’ embraces all IAM Phases and is fundamental to the successful delivery of outcomes to the users. Fulfilling this requirement demands that road asset managers demonstrate they have processes and defendable plans in place to demonstrate their intent to act responsibly. developed through community input and aligned to available budget established and documented business processes and management systems covering policy development. Asset inventories must be updated to reflect completed work and new condition/inventory measures. monitoring of asset performance. and delegated managers. The issues surrounding the management of risk are complex since they involve: reasonable business processes policy decisions management decisions based on engineering analysis and risk management court rulings on adequacy. Monitoring processes vary and must be selected or structured to provide relevant information at an affordable price. program delivery and audit and incident response. needs planning or risk assessment. asset monitoring. should demonstrate compliance with the intent of the law. roughness. bridge strength.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT It means that Australian road authorities now owe a ‘duty of care’ to road users by exercising their maintenance powers to protect (the users) from foreseeable harm. A pragmatic approach to developing and implementing formal information systems and decision support tools includes: commitment to quality at all levels clear system specification aligned to documented business processes including defining the scope based on intended use and the outputs users will require Austroads 2009 — 18 — . the main requirement is to achieve consistency in reporting asset values. more sophisticated and comprehensive road management information systems. Strategies for addressing the above requirements are detailed in other parts of the Guide to Asset Management. other government agencies. as well as politicians who represent road users and the local community. including trends. This aids effective communication with financial and general managers. e. Various approaches to asset valuation exist. Many agencies now use sophisticated pavement and bridge management systems to facilitate the management of large amounts of data and to automate some of the analysis required as input to asset management decisions. commercial or technical obsolescence are also important factors. Stakeholders may include politicians. Communication with stakeholders may consist of seeking information (such as in setting levels of intervention standards) or in providing information about a future program of investment. dealing with land under roads. and whether agency and stakeholder requirements have been met or exceeded. separating the valuation of road surfacings. Differences in approaches also include how various asset classes and their component parts are valued.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Asset valuation is one method of monitoring asset management effectiveness and is also a technique for facilitating the translation of engineering assessments into financial terms for consideration at an accounting level.5. asset condition. substantial resources can be required to operate such systems effectively and care is needed in their design and implementation. pavements and lower layers. infrastructure strategies. unit costs. Essential information includes road asset inventories. the condition-based approach is favoured by many asset managers. the agency should undertake a review of the existing road asset performance. However. Whilst no single approach is universally accepted. etc. This data then helps inform the analyses and decisions taken throughout the asset management process. As technology has developed. store and process data have been incorporated into asset management practice. and to allow the effect of investment strategies on future asset value to be determined. These systems have evolved to the point where they have significant potential to improve the overall effectiveness of the asset management process and communications with stakeholders. as illustrated in Figure 2. historical records of construction and maintenance. traffic and other road use data. communities and road users. However. and helps to ensure that road management decisions are made in a broad community context. industry. including both condition-based and age-based depreciation methods (Austroads 2000). On completion of any asset management cycle. A key part of the asset management process is communication with stakeholders. etc. is used in all IAM Phases to inform decisions and quantify the results of implementation.7 Use of Information Systems and Decision Support Tools Information is fundamental to asset management and. data bases and user tools to collect. 2.g. However. GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT simplicity. asset managers should ensure that the level of system sophistication and comprehensiveness is appropriate to the level of resources of the organisation and the level of decision. Furthermore. Robinson et al. As noted earlier. the importance of sound processes and frameworks and good practice in all elements of asset management are more important than having a sophisticated system. (1998) and TRL Overseas Centre (1998) offer additional guidance on the design and implementation of road management systems.5: Central role of information in the asset management process Austroads 2009 — 19 — . since this will ultimately retain a greater feel of transparency and comprehension by users selection of appropriate models and information categories to produce required outputs. Figure 2. and planning for data collection and processing focus on appropriate and affordable data collection strategies priorities for staged system implementation appropriate skilled resources dedicated to the task. all need to be pursued by agencies to achieve community benefits. Specific programs need to be tailored to meet the needs of particular organisations. and this provides a point of reference for readers. Such reviews can reveal blind spots in an organisation’s processes. Austroads 2009 — 20 — . or in the message they communicate. better technology. Other organisations provide similar advice. training and the like. the American Association of State Highway and Transportation Officials (AASHTO 2002) recommends the application of a ‘self-assessment’ process to help an authority to characterise its asset management practices and identify opportunities for improvement. It offers a means of providing state-of-the art benchmarks and identifying possible gaps. For example. in which it is essential to understand the roles and responsibilities to be filled and to establish appropriate levels of asset management competencies. The AASHTO guide also reports a summary of the benchmarking exercise they undertook amongst participating authorities. increased knowledge.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT 2. The process for implementing an asset management system within an organisation is described in the Integrated Asset Management Guidelines for Road Networks (Austroads 2002a).8 Continuous Improvement in Asset Management Practices and Human Resource Skill Development Options for greater efficiency. Developing team and individual competency to achieve best practice requires a people centred approach. in their Transportation Asset Management Guide. An assessment of business processes forms a core component of ‘good practice’ in asset management. All planning processes existing within road authorities and corporate entities concerned with asset management will benefit from an appraisal of current practice to review the need for improvements. A business improvement program should be undertaken at periodic intervals. state road authorities and industry) have compiled a great deal of knowledge on the tools. and students seeking to learn more about the fundamental concepts. it is recognised that there will be periodic revisions to this ‘peak document’ and other parts within the guide and that some previous Austroads publications will be superseded by the Austroads Guide to Asset Management.com. The target audience for the Guide to Asset Management includes all those involved with the management of the physical road and bridge infrastructure assets as well as industry. The Austroads Guide to Asset Management assembles this knowledge into a single authoritative electronic guide comprising eight parts. Austroads and others (e. Instead it seeks to introduce the overall general principles and process of asset management in line with best practice and to offer guidance. issues and procedures associated with the management of these assets. accessible and comprehensive resource for practitioners.1 THE AUSTROADS GUIDE TO ASSET MANAGEMENT Structure The Austroads Guide to Asset Management complements the other Austroads guides which embrace a wide range of subjects and which are readily available. as shown in Figure 3. principles. assess asset performance and undertake audit and asset valuation.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT 3 3. Each part of the guide is accompanied by ‘commentaries’ identified within the text which amplify the principles and processes by use of examples.g. develop works and investment programs. The Austroads website should be referenced (http://www. For this reason this guide does not prescribe detailed processes.au) to ensure the reader is accessing the latest version of this document. techniques and practices associated with the management of physical road infrastructure. As part of a developing guide of live documents. formulate and review asset strategies. It is also recognised that asset management procedures will vary between jurisdictions and that in a number of cases procedures may also be determined by central government agencies to ensure consistent investment evaluation across portfolios. The guide includes an introduction to asset management (this document) and offers guidance on how to determine and plan to accommodate stakeholder/community expectations.1. Austroads 2009 — 21 — .austroads. 2 Relationship to other Austroads Publications The Austroads Guide to Asset Management is complemented by the Integrated Asset Management Guidelines for Road Networks (Austroads 2002a). This describes the overall framework for road asset management adopted by Austroads members and provides guidance on the effective implementation of asset management processes within a business. WHAT. SCOPE & DEFINITION) SECTION 2: OVERVIEW OF KEY ASSET MANAGEMENT PRINCIPLES AND PRACTICES SECTION 3 : THE AUSTROADS GUIDE TO ASSET MANAGEMENT PART 1 – COMMENTARIES COMMENTARY 1: CHARACTERISTICS AND EXAMPLE KRAS AND KPIS COMMENTARY 2: INCREASING EFFICIENCY THROUGH ROAD USE MANAGEMENT COMMENTARY 3: MANAGEMENT OF HEAVY VEHICLE ACCESS COMMENTARY 4: SERVICE LEVELS AND INTERVENTION LEVELS COMMENTARY 5: WHOLE OF LIFE CYCLE COSTING COMMENTARY 6: MANAGING RISKS Figure 3. The Integrated Asset Management Framework forms the basis for the process-based approach which is the foundation of this guide. HOW. Austroads 2009 — 22 — .1: Structure of Austroads Guide to Asset Management with focus on Part 1 3.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT AUSTROADS GUIDES ASSET MANAGEMENT GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT (INCLUDING SCOPE OF OTHER PARTS) BRIDGE TECHNOLOGY PAVEMENT TECHNOLOGY PART 2: COMMUNITY AND STAKEHOLDER REQUIREMENTS PROJECT DELIVERY PROJECT EVALUATION PART 3: ASSET STRATEGIES ROAD DESIGN PART 4: PROGRAM DEVELOPMENT AND IMPLEMENTATION ROAD SAFETY ROAD TRANSPORT PLANNING PART 5: PAVEMENT PERFORMANCE ROAD TUNNELS PART 6: BRIDGE PERFORMANCE TRAFFIC MANAGEMENT PART 7: ROAD RELATED ASSETS – PERFORMANCE PART 8: ASSET VALUATION AND AUDIT PART 1 – INTRODUCTION TO ASSET MANAGEMENT SECTION 1: INTRODUCTION (INCLUDING WHY. and its various parts. The Guide to Asset Management supersedes the earlier Austroads publication — the Road Asset Management Guidelines (Austroads 1994). com. and this forms the core of Part 2.3 Scope of other Parts of the Austroads Guide to Asset Management This Introduction to the Austroads Guide to Asset Management presents the concepts and guiding principles of asset management.3. should be set to monitor the effectiveness of the asset management process (the works program) towards achieving the KPIs. decision makers will need to ensure other documents such as the Austroads guides to Road Transport Planning.1 Part 2: Community and Stakeholder Requirements The asset management planning process starts with the identification of organisational and stakeholder requirements. Its aim is to foster good practice in the identification of road agency objectives. including how to take account of customer expectations. potential issues. it introduces those aspects of road use strategies and capital investment strategies which are essential inputs to effective road asset management.3. social impacts. infrastructure preservation and road use strategies. 3. 3.au). social and environmental issues. stakeholder input from external agencies and government and organisational priorities. and how to ensure an equitable allocation of resources where resources are insufficient and prioritisation is necessary. otherwise known as performance measures. Project Evaluation and Road Safety are referred to where appropriate. However. These components are then described in more detail in Parts 2 to 8 of the guide. alternatives and solutions to problems. Part 2 provides guidance on how Key Performance Indicators (KPIs). It provides guidance on how to evaluate the strategic fit of investment needs with agency strategic plans. A Glossary of commonly-used terminology associated with asset management and other useful information on the Australian and the New Zealand road systems is available on the Austroads website (http://www. These asset strategies translate organisational objectives into actions linked to defined KPIs. Part 2 encourages the use of effective stakeholder consultation to help identify priorities. which is primarily concerned with the management and preservation of current physical assets.austroads. Guidance is given on how to present feedback and information to assist the community in this task by including documentation about budget limitations and trade-offs implicit in the selection of levels of service. taking due account of the organisation’s objectives and the broad objective of minimising life cycle costs. Part 2 also shows how information from the stakeholder / community consultation process can be integrated into the objectives of the organisation. in keeping with the focus of the guide. including the impact of decisions on agency and road user costs in the longer term. opportunities.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Additionally. and helps to identify those outcomes and levels of service which the community is prepared to pay for. Austroads 2009 — 23 — . A summary of the scope of these documents is given below.2 Part 3: Asset Strategies Part 3 is concerned with the development of asset strategies. A complete set of strategies consists of capital investment. 3. Part 4 provides guidance on how intervention criteria may be employed in assessing the current performance of an existing road-related asset against the target asset performance. 3. It also provides guidance on how to implement an audit process to ensure work activities reflect the works program and satisfy the asset and organisational strategies (and in turn stakeholder requirements).4 Parts 5. Austroads 2009 — 24 — . since such information can provide the asset manager with valuable insights into the long-term management requirements. Each road agency is encouraged to determine its own sets of performance standards. Part 8 describes approaches to presenting information to external stakeholders and other customers by means of public reports and other media.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT 3. economic analysis. and budgetary expectations. 6 and 7: Asset Performance Part 5 provides guidance on the establishment and maintenance of asset inventories.3.3 Part 4: Program Development and Implementation Part 4 addresses the program development process.3. Part 4 describes the process by which the type and quality of road-related asset that should be provided in a given set of operational circumstances (e. 3. Bridges are covered in Part 6 and other road related assets in Part 7. and therefore is primarily concerned with condition data collection and performance modelling at a network level. It discusses the need for agencies to measure asset performance against objectives. These intervention options will comprise the total needs program. Finally.3. combining both quantitative indicators and criteria.5 Part 8: Asset Valuation and Audit Part 8 provides guidance on how to undertake asset valuation.e. This then leads on to program development at which point an agency identifies intervention options to close the asset performance gaps. Sub-parts include: Part 5A: Inventory Part 5B: Roughness Part 5C: Rutting Part 5D: Strength Part 5E: Cracking Part 5F: Skid Resistance Part 5G: Texture Part 5H: Performance Modelling. at which point asset strategies are transformed into defined levels of service and works programs. i. for a given demand) is defined by an agency. It also explains how such criteria are used to identify performance gaps that can then be addressed by construction and preservation activities and road use policy interventions. based on community consultation. and on the monitoring of asset performance.g. existing road standards. Austroads. P Appleby. Austroads 2002a. & Institute of Public Works Engineering Australia. Austroads 2001. HDM-4: Highway Development and Management: volume one: overview of HDM-4. International Conference on Managing Pavements. Sydney. NSW. American Association of State Highway and Transportation Officials. Melbourne. AP-R202/02. Austroads 2006. B & McLean. Integrated Asset Management Guidelines for Road Networks. Austroads. ‘The development of HDM-4 technology road deterioration models for Australia’s sealed granular pavements’. Australian and New Zealand Road System and Road Authorities: National Performance Indicators 2000. Canberra. NSW. Pavement Rehabilitation: A Guide to the Design of Rehabilitation Treatments for Road Pavements. 6th. Austroads. Sydney. NSW. Martin. 2000. Austroads. Kerali. HRG 2000. Austroads. 2004 Brisbane. H. Austroads 2002b. Queensland Department of Main Roads. P Appleby. Road Asset Management Guidelines. AP-G78/04. F Mihai. Austroads. Thames. Sydney. Sydney. Pearson. Brisbane. 6th. Toole. T. World Road Association (PIARC). NSW. Brisbane. NSW. 2004 Brisbane. by J McRobert & N Houghton. Sydney. Performance characteristics of the Australian heavy vehicle fleet. Queensland Department of Main Roads.. Valuation of Road Infrastructure Assets in Australia and New Zealand. AP-43/01. AP-R291/06. JWH 2004. NSW. 3 vols. Australia. 13p. & Oliver. Austroads 2009 — 25 — . bitumen durability and seal size’. & P Shepherd. Austroads 1994. by R Grove. JWH 2004. J. National guidelines for transport system management in Australia. Maintenance Techniques to Reduce Social and Environmental Impacts. D Radcliffe & P Shepherd. Sydney. M Bishop. 19p. TC. Association of Local Government Engineering of New Zealand Inc (INGENIUM). Guidelines for Community Input in Setting Level of Service and Intervention Standards for Road Networks. by LB Dowling. Paris. Australian Transport Council. Austroads. ACT.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT REFERENCES AASHTO 2002. Austroads 2004a. ‘Prediction of the life of sprayed seals and the effect of climate. Sydney. Australia. International infrastructure management manual. NSW. Sydney. M Bishop. Qld. Prem. Washington DC. F Mihai. AP144/00. INGENIUM & IPWEA 2002. L Leong. K Eckeroth. Austroads. J 2002. AP-G17/04. Austroads.. Transportation asset management guide. Austroads 2004b. Oliver. NSW. R Grove. AP-R201/02. National Road Transport Commission. K Eckeroth. Sydney. New Zealand. Pavement Design: A Guide to the Structural Design of Road Pavements. AP-109/94.. NSW. International Conference on Managing Pavements. Qld. de Pont. Vic. Australian Transport Council 2004. Annual report. 4Seeable futures: transport portfolio scenario-based planning for Queensland Transport and Queensland Department of Main Roads 2000 – 2025. Macmillan. Vic. Traffic and road use management manual. MS 1998. Kew. Tsolakis. VicRoads 2004a. Roads connecting Queenslanders: a strategic long-term direction for the Queensland road system and Main Roads. ‘A framework for demonstrating that road performance meets community expectations’. Vic. Road maintenance management: concepts and systems. VicRoads. VicRoads 2004b. Queensland Department of Main Roads.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Queensland Department of Main Roads 2002. N & Patrick. London. Road System Management. research report ARR 359. VicRoads 1993. Brisbane. Vermont South.. Austroads 2009 — 26 — . Vic. Program development guidelines. Strathfield. Queensland Transport & Queensland Department of Main Roads 2000. 2000/01. Transit New Zealand 2001. Wellington. VicRoads road management plan. T. Guidelines for the design and operation of road management systems. Vic. Risk management. overseas road note 15. Qld. D. Vic. 1998. Standards Australia & Standards New Zealand 1999. NSW. Crowthorne. Triple bottom line evaluation of transport proposals. Tsolakis. Annual report. Transport Research Laboratory. Brisbane. Vic. Road System and Engineering Group 2005. Vermont South. Standards Australia. R. 1998. U. VicRoads 2003. Kew. VicRoads. Qld. Queensland Department of Main Roads. Thoresen. Kew. Queensland Department of Main Roads. Transit New Zealand. UK. Queensland Department of Main Roads. & Snaith. Robinson. VicRoads. Kew. VicRoads. A stitch in time: Victoria’s road maintenance strategy. D. S 2003. Qld. 2003/04. Brisbane. working document WD R98/003. Rockliffe. TRL Overseas Centre. Danielson. ARRB Transport Research. ARRB Transport Research. AS/NZS 4360:1999. Examples of KRAs and KPIs reported by VicRoads (2004b) and which extend to consider community and environment indicators for transport infrastructure are shown in Table C1 1 together with published policy objectives and key results areas which are established organisation-wide. the results of properly designed qualitative surveys which seek user opinion and feedback are also valuable. For example. They should be capable of being managed by the agency. to facilitation of asset management and to prediction of future asset performance. the road authority should at least aim to monitor rates and trends and include such statistics in annual reports. Quantitative assessments employing national or internationally accepted standards of measurement and recognised calibration or verification procedures will be appropriate in many cases. Some authorities also choose to distinguish between management performance measures. See for example Austroads (2002b). Their procurement should be affordable and not impose excessive costs on road management agencies or companies. quantitative measures. Where multiple factors play a role. the following observations can be made: There is no point in measuring things that do not matter. The specified criterion associated with each measure should be achievable within the foreseeable future. In the latter case the measures will also vary and typically reflect the factors considered important to asset management in each jurisdiction. Direct measurement and reporting of specific parameters is preferred over the use of composite indices. For this to occur. and reproducible. as closely as possible. and road condition measures. However. or achieving a degree of accuracy that is not necessary. as in the case of road crashes. Austroads 2009 — 27 — . They should include objective. such as excessive rutting or poor skid resistance.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT COMMENTARY 1 CHARACTERISTICS AND EXAMPLE KRAS AND KPIS Whatever objectives are chosen. in terms of measurable key performance indicators (KPIs). KPIs should ideally have the following characteristics: They should be directly relevant to the assessment of current asset condition. Considering the various points. In other circumstances. surfacing age is used as an indicator of the ‘health’ of a network. They should be repeatable. making it difficult to plan and manage corrective actions. and be established with funding availability in mind. having been associated with the durability of surfacings in different climatic environments (Oliver 2004). Transit New Zealand (2001) reports specific distresses. it is important they are designed so that they can be translated to Key Results Areas (KRAs) and subsequently framed. as the latter tend to mask the contributions of various factors. whose derivation is clearly understood and whose accuracy is widely accepted. Source: After VicRoads (2004b). Construction and maintenance Proportion of network resurfaced Proportion of network rehabilitated Estimated return on economic investment. Austroads 2009 — 28 — . Key results areas Road safety Road system management Traffic and transport integration Registration and licensing Organisational performance Financial performance Example KPIs for road system management Condition of the network Proportion of travel on smooth roads Proportion of network with very rough roads % of bridges subject to mass limits % of bridges in very poor structural condition. Environmental and community Number of community consultation plans prepared Number and type of environmental incidents Percentage of road network with roadside management plans.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Table C1 1: Example asset management KRAs and KPIs for transport infrastructure Policy objectives Achieve reductions in road crashes and the cost of road trauma Assist economic and regional development by improving the effectiveness and efficiency of the road transport system Develop a more integrated and sustainable road transport system Minimise the impacts of roads and traffic on the community and the environment Build effective. equitable and efficient relationships with customers by providing suitable access to services in order to assess both road system and road agency performance. The complementary application of road use management (RUM) strategies and actions may help limit the rate of asset consumption and optimise use of current assets. in Queensland (QDMR 2005). Considering RUM as a complementary activity to road infrastructure asset management provides the asset manager with a wider range of solutions. legislation and surveillance Promoting use of alternative routes which possess sufficient capacity Poor utilisation of existing capacity Improved traffic control and signal coordination Better route signing and travel information Introduction of performance-based standards (PBS) approaches to management of heavy vehicle access (see Commentary 3) Temporary closure or reduced level of service Improved incident and emergency response strategies Improved ‘work zone’ Excessive demand Pricing and charging policies Measures to encourage high vehicle occupancy Promotion of alternative transport modes Excessive travel time caused by relative location of social and productive activities Improved strategic planning and land use planning Comprehensive guidelines for traffic and road use management have been developed in a number of jurisdictions. Table C2 1 lists a range of common problems and possible RUM interventions. e. A list of examples of RUM strategies and how they relate to asset management issues is contained in Table C2 1 below. Therefore. It also encourages the adoption of integrated policies and strategies.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT COMMENTARY 2 INCREASING EFFICIENCY THROUGH ROAD USE MANAGEMENT As the total transport task is becoming larger in volume. and further examples exist of improved strategies to manage highly-utilised facilities. the growth in road traffic continues to outstrip the ability of the community to finance additional asset provision. and many vehicles are heavier and larger in size. Table C2 1: Management of road use Problem Possible RUM interventions High vehicle loadings leading to potential for excessive deterioration and high rate of asset consumption Limiting the loading on roads and bridges by regulation. an asset manager is concerned to ensure the effective use of current assets.g. Austroads 2009 — 29 — . the adoption of an alternative performance-based standards (or PBS) approach to regulation has been proposed so that the interactions between vehicles. traffic conditions and freight or passenger tasks can be more readily taken into account. infrastructure standards. usually from access tracks. To gain more productivity from the road network. granular pavements which require careful management to ensure optimal lives are obtained. The challenge faced by both regulators and asset managers has been to develop strategies to help accommodate the significant growth in the road transport task. General access regulations are broadly similar across jurisdictions in the interests of consistency and a common national transport policy. comprising 16 safety standards and four infrastructure protection standards (see details in Prem et al. and what trade-offs are acceptable. The key issues which require consideration from an asset management perspective include: having sufficient knowledge of the performance of the existing infrastructure system to be able to predict the consequences of adopting a new system determining the standards to be adopted and how they relate to current regulations and the observed behaviour and interactions between vehicles and infrastructure assessing the costs and benefits which would result to vehicle operators and asset managers. However. dimensions and configurations and is a key component of an overall road system management strategy. is generally accepted to be proportional to the number of equivalent standard axle repetitions applied by heavy vehicles. 2002).GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT COMMENTARY 3 MANAGEMENT OF HEAVY VEHICLE ACCESS Managing heavy vehicle access to the road network is currently governed through regulations relating to permissible mass limits. Additionally. a wider range of exponents of between 4 and 12 may be applicable depending on pavement configuration and distress mode (Austroads 2004b). land use and social factors. The rate of consumption of pavement assets. Australian Transport Ministers have approved a set of 20 standards. and have not been designed either in a pavements or geometric sense. which accounts for a significant proportion of total infrastructure replacement costs. These provide an optional alternative to the current prescriptive standard. Austroads 2009 — 30 — . Once implemented. Many roads which carry a significant proportion of total freight have evolved over time. For general application. Introduction of the PBS is currently the subject of study and review and agreement. considerable productivity benefits should result. the relative damaging effect of each axle pass is determined based on the ratio of the actual axle load and a standard load raised to the fourth power. The current regulatory system typically comprises general access. This helps to ensure appropriate levels of safety. Simply extending or adding new infrastructure has not been possible because of economic. Whilst the current regulatory system remains in place. environmental. public notices and permit operations. and to limit environmental impacts and damage to road infrastructure. Previous solutions have been very ad hoc and have lead to some unplanned outcomes. Australia and New Zealand have extensively used relatively low cost chip-sealed. trigger a maintenance investigation. including local performance evidence legislation and regulatory requirements economic criteria. just because a gap is identified. Levels of service enable an agency to: document and measure the service provided evaluate service versus cost trade-offs establish what is important to the customer link operational activities with organisational strategic goals. Road agencies usually define levels of service in terms of the convenience of travel and the safety performance of the road network.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT COMMENTARY 4 SERVICE LEVELS AND INTERVENTION LEVELS C4. Service levels/intervention levels are established using a process which takes into account: customary practice. Depending upon demand or strategic importance.2 Intervention Levels and Gap Analysis ‘Intervention levels’ are specified condition parameters (usually limiting values) which. describe the quality of service provided by the asset for the benefit of the customers. if exceeded. However. budget). In traffic engineering. Most communities agree that it is appropriate to have a hierarchy of levels of service such that (in this example) roads with higher demand levels would be maintained to a smoother standard. and relates to the congestion performance or traffic capacity of a road.g. the term ‘level of service’ is used to describe the operating conditions within a traffic stream. levels of service is used in its broader form. ride quality (qualitative) and road roughness (quantitative assessment of ride quality) are two asset management service level measures. For the purpose of the Austroads Guide to Asset Management. The process of comparing the existing asset condition with the desired condition is called gap analysis. For example. The road operating condition can generally be defined as ‘smooth’. or ‘level of service’. the gap analysis process identifies a portion of the asset for further investigation using engineering judgment and other organisational considerations (e.1 Service Levels The terms ‘service level’. Routine maintenance or operational standards are generally high priority. In other situations. a higher level of service may be required for some assets compared to others. C4. Roughness is a prime factor in determining vehicle operating costs and consequently an input to determining the timing of treatment interventions aimed at minimising total transport costs (see also WOLCC in Commentary 5). does not mean that an action/project must be initiated. Road agencies have adopted the term and associated measures as one component of the quality of service provided by the asset for the benefit of the customers. ‘rough’ or ‘desirable’ and an agency must decide what standard of ride quality/roughness is acceptable for specific road classes and/or road use. aiming to minimise whole of life costs community views. Austroads 2009 — 31 — . m) L = expected treatment life (years). Drainage improvements to be considered as a long-term strategy for reducing pavement deterioration. Consequently. Periodic pavement maintenance to be based on area of network to be treated and available funding. integrated solutions which may be necessary to minimise whole of life cycle costs the clear link between the Guidelines shown in Table C4 1 and VicRoads multiple agency objectives. where EI = expected improvement.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Table C4 1 illustrates the variety of intervention criteria which may be used. Distressed pavements which are not rough but consume significant maintenance resources should be considered separately. This does not include sealing of unsealed shoulders. in NAASRA roughness meter (or NRM) units of counts/km D = deterioration factor.5 is normal but with high maintenance costs. with the remaining sites treated under the road safety program. and summarises the contents of a typical set of asset management instructions (in this case called Program Development Guidelines adapted from VicRoads 2003). Ranking value = EI * D * T * L/C. Toole and Oliver 2004).120). Table C4 1: Example criteria for various maintenance interventions Routine maintenance to apply to all roads and be based on published intervention levels (see example structure in Table D 2). noting that poor drainage can increase the rate of deterioration by a factor of between 2 and 3 ( Martin. Austroads 2009 — 32 — . or KPIs (shown earlier in Table C1 1). Routine maintenance standards are more specific than the ‘performance targets’ approach taken in developing infrastructure preservation programs for reasons of safety and to aid traffic use. B or C (NRM > 110 . road type and the volume and type of traffic. Rehabilitation pavement maintenance to address sections with high roughness for road classes A. WOLCC tool to be used to determine expected improvements and community benefits from undertaking the proposed program. Repair of pits. Ranking to be based on the ‘simplified’ formula (see below) and to be applied in a separate list for rural and urban projects respectively. taking into account factors such as road classification. This is because they relate to the repair of ‘hazards’. response times and inspection frequencies are set according to an assessment of risk. 1. 2 is high T = traffic volume up to a maximum of 2000 veh/day rural and 4500 veh/day urban C = unit cost of treatment ($ per sq. The program is expected to relate to historical norms with candidates including: those which possess moderate or severe surface distress (typically > 5% of area affected in a 200 m length) low skid resistance sites and those of high accident potential. Major patching and rehabilitation to be considered using the above ranking formula for sections in a very rough state. trenches and utility structures where this adversely affects the ride or function of the pavement. Shoulder resheeting to be considered where length is in excess of 500 metres to provide safe driving conditions and adequate support. where 1 is normal. The reader should note: the multiple. An example of this approach is shown in Table C4 2 based on VicRoads Road Management Plan (VicRoads 2004a). and for moderate to high roughness for road class M (NRM > 80-90). etc. damaged or missing roadside furniture and damaged structures. excessive rutting.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Table C4 2: Example routine maintenance standards Hazard – a defect listed in the agency’s published ‘maintenance standards’: Pavements – obstructions on the road. based on consideration of severity and type. damaged or missing drainage pits. Road maintenance category – a nominated road maintenance category for each road according to an assessment of risk. or reported by the public. surrounds. rectify or provide warning Response code A B C D E F 4 hours 24 hours 1 week 1 month 3 months 6 months Austroads 2009 — 33 — . shrubs and other vegetation likely to cause danger or restrict sightlines. Response time is measured from the time the hazard is identified by the managing agency. Traffic signals – inoperative or confusing. pavement defects including potholes. Hazard inspection frequency – period between successive scheduled inspections. Response code – a code which indicates the control mechanism and response time for responding to a particular hazard on a particular road. Roadside – trees. lids. Inspection type Hazard inspection frequency by road maintenance category 1 2 3 4 5 6 Day-time Each week day Twice per week Weekly Monthly 3-monthly 6-monthly Night-time 6-monthly 6-monthly 6-monthly Yearly Yearly Yearly Control mechanism Inspect. excessive edge drops. Response time – the time to respond to a hazard. C5.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT COMMENTARY 5 COMMENTARY E WHOLE OF LIFE CYCLE COSTING Whole of life cycle costs have been defined by the World Road Association as the total costs for acquiring. maintaining and disposing of an asset. The use of modelling tools is recommended by Austroads as a means of achieving consistency in determining needs and justifying investment programs.3 Analysis Objectives Having decided the policy objectives to be pursued. or ‘aggregate models’ based on the same knowledge base. for example: at the component level models can assist in estimating the life of a road surfacing in a particular locality to determine outcomes over a planning timeframe in terms of network performance.1 Benefits The evaluation of policies and development of medium to long-term asset plans using whole of life cycle costing (WOLCC) provides a basis for investment decisions related to long term assets. including road crashes determination of economic benefits of alternatives estimation of energy consumption. Criteria would extend beyond asset life expectations to include the: impact on vehicle operating and road user costs. The advantage of the HDM-4 style modelling tools is that they enable the decision maker to incorporate multiple criteria into a formal analysis. 2003) of: maintaining the physical performance of the asset considering impacts on road users and the physical environment financial and economic cost implications for agencies and road users intergenerational equity. WOLCC analysis is fundamental to modern asset management and incorporates triple bottom line (TBL) objectives (Tsolakis et al. C5. operating. air pollution and noise. Models can simply be applied to evaluate future conditions taking into account the consequences of applying established business rules or contractual obligations. and relevant key performance indicators.2 Available Tools Investment tools such as the HDM-4 suite of technology (Kerali 2000) and the Deighton dTIMS software are widely used in Australia and New Zealand to assist in the analysis process. reduced to a common base called the 'net present cost'. Simpler tools are also available which use more approximate. analysis can then be extended to predict likely outcomes of alternative scenarios. C5. budget implications and consequences for total transportation costs. Initial modelling provides an important starting point for further policy analysis. Austroads 2009 — 34 — . minimisation of life-cycle costs of specific components 2. HDM-4 and dTIMS.5 Challenges When using sophisticated models. C5. an asset manager must be aware they: require comprehensive data inputs comprise internal predictive models which must be well calibrated to local conditions to give meaningful answers require a high degree of knowledge and skill to be applied effectively. current and future traffic. Using the models. i. Economic benefits are computed in terms of the net economic benefits (as net present value. improvement and preservation decisions are made in the knowledge of the long term cost implications. C5. Austroads 2009 — 35 — . minimisation of total agency costs to achieve a desirable level of service for a particular project. a clear objective function. This may take a variety of forms including the: 1. maximisation of net benefits (to society) under different budget scenarios. However. Typical economic indices such as benefit cost ratios (BCR) or NPV/cost are recommended as inputs to the prioritisation of investment alternatives. sub-network or network-wide 3. the principle of WOLCC analysis can be incorporated into decision-making in simpler forms by taking care to ensure capital. climate. or to define a solution space within which acceptable solutions may lie an acceptable base case or ‘without investment’ alternative against which the project alternatives will be compared. now make it possible to meet Objectives 2 and 3 through formal whole of life cycle analysis. mix of treatments and costs applicable to each option. These are predominantly project-level oriented and do not employ predictive modelling in a planning sense. the aim being to minimise total transportation costs.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT In all cases the purpose of the analysis needs to be clearly stated. Most authorities employ a combination of historical practice. or perhaps Objective 2.e. must be employed so that a solution can be chosen from amongst the alternatives that have been investigated. The more sophisticated models. topography. Purely engineering-based methods have traditionally sought to achieve Objective 1. typical engineering scenarios can be investigated and the consequences determined in terms of road agency costs and road user effects. through the adoption of best practice solutions and specifications for individual components or comprehensive design and maintenance guidelines or procedures for complete structures. simple rules and the more sophisticated WOLCC methods because no single approach can be guaranteed to produce an acceptable and realistic outcome. or decision rule. Therefore. or NPV) from comparing a do minimum alternative with a variety of project alternatives. works history and the vehicle fleet the intervention criteria.4 Data Requirements Where such models are used they require the user to specify: the basic input data which describes the engineering attributes of the asset. 6 Asset Creation Authorities should consider carefully the future maintenance requirements of proposed new infrastructure before including it in their works program. This is because the savings in road user costs associated with a higher level of service are not sufficient to offset the additional costs of provision or maintenance. In this case. Provision must therefore be made for future maintenance to ensure budgets are available to meet typical business rules for the particular class of infrastructure. The establishment of complementary capital investment planning processes are recommended to ensure the most appropriate whole of life cycle decisions are made when constructing new assets. In practice there are political and social reasons for providing a base level of access and safety for smaller communities. Capital investment decisions should be made in the knowledge that creation of an asset also creates a commitment to maintain that asset.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT It can be difficult to justify investment on an economic basis for low traffic facilities where agency costs (as illustrated in Figure C5 1) make up a significant proportion of total costs. Figure C5 1: Typical split between road user and road agency costs versus AADT C5. Consideration of maintenance implications at the design stage should. Austroads 2009 — 36 — . highlight those options with maintenance complications or increasing life-cycle costs. the asset manager is interested in knowing that asset management principles have been applied in selecting improvement and expansion investments. Further guidance is available in the Austroads Guide to Project Evaluation. where possible. and should have first call on available funds. options. severity of defects that can be tolerated and response times within which defects must be repaired fall within the ‘must do’ category. organisational and risk context identifying risks. determining likelihood of occurrence and consequences assessing risks. In line with established standards (Standards Australia and Standards New Zealand 1999). Maintenance standards (see Table C4 2 Commentary 4) comprising the maximum acceptable routine inspection periods. Risk management in a maintenance context is primarily related to the safe use of a roadway and related assets. including what can happen and how analysing risks. with public safety identified as the topmost priority. Actions which would maximise community benefits may not be achievable in budget constrained situations and are classified as ‘Could do’ activities.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT COMMENTARY 6 MANAGING RISKS Formal risk management is a core driver of road authority activities. and the responsibilities of managers. The effort used in managing risks should be commensurate with the risk exposure. Maintenance standards should be applied irrespective of the management arrangements for the particular road and should be available for public scrutiny. Austroads 2009 — 37 — . and is therefore performed at an operational level. ‘Should do’ comprising those activities which are required to deliver published ‘desirable’ service levels. asset owners and managers are encouraged to adopt the following simple classification for categorising activities and responses which has been adapted from INGENIUM & IPWEA (2002): ‘Must do’ comprising those activities for which deferment is not an option. Major financial risks and the general comfort and efficiency of road use are addressed through appropriate infrastructure preservation. risk management comprises the following six main steps: establishing the strategic. road use management and capital investment strategies. The impetus to adopt a risk management approach has been accelerated in recent years through the introduction and enforcement of legislation and statutory requirements which affect roads. some road authorities have established formal road management plans (VicRoads 2004a). In deciding how to best manage risk. At a high level. Infrastructure preservation strategy actions fall into the ‘should do’ category. service providers and users. plans and implementation monitoring and review. In response. setting criteria and priorities treating risks. these steps mirror the Austroads Integrated Asset Management Process but risk must be managed within all phases of the asset management process at varying levels of complexity. ‘Could do’ comprising those activities which could bring additional community benefits should sufficient resources exist. with the exception of those which fall into the ‘must do’ category. Plans should contain a balance of inputs which consider past experience. or ‘norms’. under term contracts.GUIDE TO ASSET MANAGEMENT PART 1: INTRODUCTION TO ASSET MANAGEMENT Whether networks are managed directly by a government agency. a consistent process-based approach involving annual and long-term planning is essential to reduce and manage risk effectively. or similar arrangements. Austroads 2009 — 38 — . as well as the results of formal modelling using strict intervention criteria.