GUIDELINE

Strategic Asset Management Framework

Best practice guidelines for the management
of Queensland Government buildings

Overview

Department of Housing and Public Works

Strategic Asset Management Framework

Best practice guidelines for the management of Queensland Government buildings
Overview
Second Edition incorporating content from the Overview (ISBN 0 7242 6946 0) and the
Organisational Framework originally published in the Strategic Asset Management - Best
Practice Guidelines First edition
Queensland Department of Housing and Public Works
November 2012
(includes minor updates as at November 2012)
ISBN 978-1-921670-02-2
The State of Queensland
(Department of Housing and Public Works)
First published in 2010
Enquiries should be directed to:
The Principal Policy Manager
Building Policy Unit
Strategic Asset Management
Department of Housing and Public Works
GPO Box 2457
Brisbane Qld 4001
bpu@[Link]

The suite of guidelines which comprise the Strategic Asset Management Framework (available
online at [Link]) is organised under the following categories:
1. Overview - explains the principles and concepts of strategic asset management as they
apply to buildings.
2. Guidelines - expand on key aspects of strategic asset management to inform decisions
over the entire life-cycle of the asset.
3. Decision-making methodologies and guidelines - support agencies to implement best
practice strategic management of buildings.

Strategic Asset Management Framework Overview

Contents

1.0

Introduction................................................................................. 3

2.0

Purpose....................................................................................... 3

3.0

Terminology................................................................................. 3

4.0

Context........................................................................................ 3

5.0

Principles and elements of strategic asset management ............... 5

5.1 Service demand ...........................................................................................5

5.2 Directions ................................................................................................... 6
5.3 Specific purpose planning ........................................................................... 6
5.4 Implementation........................................................................................... 6

6.0

Organisational framework for the establishment of strategic

asset management ...................................................................... 7

6.1 Management levels ......................................................................................7

6.2 Policies, guidelines and procedures............................................................ 9
6.3 Roles and responsibilities ........................................................................... 9
6.4 Skills and competencies.............................................................................. 9
6.5 Information and systems ............................................................................ 10
6.6 Performance management.......................................................................... 11

Attachment 1:

The suite of Strategic Asset Management Framework

documents................................................................. 12

Attachment 2: List of policies and other relevant resources ............... 14

Strategic Asset Management Framework Overview

1.0 Introduction
Strategic asset management underpins all activities related to managing government building
assets for optimal outcomes. The Strategic Asset Management Framework - Best practice
guidelines for the management of Queensland Government buildings (SAMF) promotes
strategic asset management within the Queensland Government by providing agencies with
advice about the best practice management of their building portfolio.
Attachment 1 provides a list of the suite of guidelines that comprise the SAMF.
The SAMF refers to relevant sections of whole-of-Government policies and frameworks
including the:
Building Asset Performance Framework
Capital Works Management Framework
Government Employee Housing Management Framework
Maintenance Management Framework
Project Assurance Framework
State Procurement Policy
while avoiding duplication of information from these documents.
Attachment 2 provides additional information and further references.
Strategic asset management of government buildings is the concept of aligning an
organisations assets with its service delivery needs. It focuses on the outcome or purpose of
a building asset and guides decision-making processes over the entire life of the asset (i.e.
planning, investment/procurement, management-in-use and disposal phases).

2.0 Purpose
The purpose of the SAMF is to promote best practice in the planning,
investment/procurement, management-in-use and disposal of building assets in the
Queensland public sector.

3.0 Terminology
In the SAMF, the terms asset, building asset and building have the same meaning and are
used interchangeably. Similarly the term agency is equivalent to department (as defined in
s8 of the Financial Accountability Act 2009).

4.0 Context
The communitys needs and expectations of government are becoming more sophisticated
and complex. This is manifested by demands for better quality, value for money,
environmental awareness and innovative solutions.
The Governments capacity to respond to the demand for services depends largely on its
fiscal policy. As part of the State Budget processes, resources are allocated to achieve the
objectives and priorities of the Government.

Strategic Asset Management Framework Overview

The challenge for government is to balance community expectations with the best use of
limited resources. Government is required to maintain a high level of essential services to the
community while at the same time being responsive to the changing social, political and
economic environment which is characterised by:

increasing demand for services as a result of population growth and changing

demographics

higher community expectations

different approaches for delivering services as a result of technological advancements

more emphasis on probity, accountability and value for money outcomes

greater focus on efficiency and effectiveness of services.

The efficient and effective management of government building assets is essential to the
delivery of the Governments obligations to deliver services to the community. This requires
departments to demonstrate:

structured and accountable strategic and operational planning processes

links between service delivery and resource planning

relevant planning processes for capital works, maintenance and disposal of assets,
which include an assessment of private sector participation in the financing,
provision, management and maintenance of such assets
suitable methodologies which address demand for new assets

more innovative ways of providing services

improved coordination of assets from a whole-of-Government perspective.

The asset life-cycle

Building assets have a life-cycle they are planned, created, used, managed and disposed of
when no longer required. Understanding this concept (referred to as the asset life-cycle - see
Figure 1) will assist departments to optimise the value, use and benefits derived from the
assets they control 1 .
Figure 1 - The Asset Life-Cycle

The concept control of assets, is demonstrated by the ability of a department to use an asset to achieve its objectives; obtain a
benefit from the sale of the asset; charge for the use of the asset or deny use of the asset to others. This term is important for
financial and asset management purposes. Specific guidance on determining the control of assets is provided in the NonCurrent Asset Policies for the Queensland Public Sector (Queensland Treasury and Trade).
1

Strategic Asset Management Framework Overview

5.0 Principles and elements of strategic asset management

Strategic asset management is facilitated by systematic decision-making processes based on
rigorous business case evaluation throughout the life of the building asset. This will ensure
that the building portfolio is aligned with departmental service delivery requirements and
government priorities and strategies and it is delivering an optimum value for money.
The following fundamental principles underpin the SAMF:

assets exist to support the delivery of services, consistent with the Governments
targets and priorities

strategic asset management undertaken by departments needs to be consistent with

the requirements of whole-of-Government asset management policies and legislation

asset planning is an important activity that should be interrelated with financial,

human resource and information and communication technology planning

non-asset solutions, full life-cycle costs, risks and options should be considered
before investing in new built assets

responsibility for assets resides with the department that controls and administers
them

the full cost of providing, operating and maintaining assets should be included in
departmental budgets.

The elements of strategic asset management, shown in Diagram 1 each have a role to play in
best practice planning, provision, management, maintenance and eventual disposal of assets.
Diagram 1 Elements of strategic asset management

Strategic Asset Management Framework Overview

5.1 Service demand

The identification and analysis of the communitys need for government services is regularly
undertaken by government and communicated to departments in a range of ways, including
emerging policy, legislation, priorities and objectives. These are translated by agencies into
specific departmental objectives, performance indicators, services and service standards
which are addressed in typical documents such as strategic plans, budget documentation and
annual reports.

5.2

Directions

Departments should use a structured planning process to develop service delivery plans and
strategies which reflect their objectives, priorities and policies.
An agency strategic plan should be developed for a period of four years and be sufficiently
prescriptive for performance to be measured, but broad enough that it can adapt to changing
circumstances.

5.3

Specific purpose planning

The availability of adequate and efficient resources impacts on the quality of the services that
are delivered. Ideally, agency asset planning decisions will be integrated with and
complement the finance, human resource and information and communication technology
strategies that support the delivery of departmental services.
Departments should consider the implications of capital investment, the maintenance and use
of existing assets and the disposal of surplus assets. Access to relevant, reliable and timely
information about building assets is essential in order to:

assess whether particular building assets are meeting service delivery needs

determine whether building assets are properly maintained and managed

evaluate the need for future replacement of assets

identify and plan for the disposal of surplus or under-utilised building assets

quantify the cost of the services provided by the department and (if applicable)
benchmark against other jurisdictions.

5.4

Implementation

Implementation of effective and efficient asset management involves integration of plans to

address building portfolio and building asset management issues, such as capital investment,
maintenance and the disposal of surplus assets, with the planning process for human
resources, finance, information and communication technologies.
These plans need to address strategies that yield the following benefits:

a clear understanding of the role the building portfolio plays in supporting agency
objectives

alignment of assets with service delivery strategies

optimal functionality and utilisation of assets

economies of scale resulting from better coordination of programs and initiatives and
the managing of finite resources

maintenance and improvement of the health and safety aspects of buildings

Strategic Asset Management Framework Overview

access to current and accurate asset and portfolio valuations and information to
enable identification of surplus assets

effective and efficient use of capital and maintenance funds

identification and quantification of opportunities and risks.

New investment requires a structured process to demonstrate the need for the delivery of a
new facility. This should include a review of service concepts, consideration of non-asset
options and alternative asset delivery solutions. The full life-cycle costs and function of the
building asset should also be taken into account. Information on capital
investment/procurement planning as the foundation for the delivery of government building
projects is available in the SAMF guideline: Capital Investment/Procurement Planning and
Project Delivery.
Management of existing assets includes monitoring the physical, operational, functional and
financial performance to ensure that they fully support the delivery of the agencys services.
Disposal of surplus assets should be undertaken in a structured and prioritised manner in
accordance with prevailing market conditions and government priorities (refer to the SAMF
guideline: Asset Disposal).

6.0 Organisational framework for the establishment of

strategic asset management
The establishment of strategic asset management is supported by the implementation of an
appropriate organisational framework which illustrates the inter-relationships between the
key issues and activities involved in strategic asset management. The framework is intended
to assist departments to identify their asset management requirements. Figure 2 represents
the shell of an organisational framework and highlights the issues and key activities related
to asset management decisions in the public sector.

6.1

Management levels

In the public sector, building asset management decisions occur at three functionally
hierarchical levels e.g. those that are relevant to:
1.

whole-of-Government i.e. not confined to a single department

2.

a department or to a program developed in support of the departments objectives

3.

operational building management of an individual asset.

Strategic Asset Management Framework Overview

Figure 2: Organisational framework for the establishment of strategic asset management

The organisational framework is a multi-layer two dimensional matrix based on the stages of
the assets life-cycle:
Management levels (on the vertical axis) - different levels of management responsibility in
the context of each departments role associated with the control of building assets
Implementation components (on the horizontal axis) - related organisational management
components required to support strategic asset management

Implementation components
The five implementation components described below are organisational essentials which
enable the implementation, monitoring and control of building asset management processes.
At each of the management levels and against each group of implementation components,
there are different organisational considerations. These are identified in the appropriate
intersection box between the two as shown in Figure 3.
Figure 3: Organisational matrix

Strategic Asset Management Framework Overview

The organisational considerations outlined above are different for various stages of an assets
life-cycle; however, the key implementation components in the five categories include the
following:

6.2

Policies, guidelines and procedures

Policies, guidelines and procedures related to building asset management should reflect the
applicable provisions of:

legislation

whole-of-Government policies

agreements (international/State/Commonwealth/local authority level).

Attachment 2 provides a list of resources that will assist agencies undertaking any aspect of
strategic asset management.

6.3

Roles and responsibilities

When establishing roles and responsibilities in a strategic asset management context,

departments need to address relevant requirements at the strategic and operational level
which:

contribute to the collective achievement of, and accountability for, whole-ofGovernment direction (objectives for the community, priorities and strategies)

facilitate the identification of suitable procurement strategies for project delivery

(based on risk, economic benefit and affordability assessment, and an appreciation of
factors, time, cost, quality, appropriateness and whole-of-life considerations) which
minimise the impact of the building on the environment and the long-term demand
for maintenance

identify and improve systems and information available to departments and

government (in accordance with government policy) to:

6.4

effectively and efficiently manage building planning, procurement, building

operation, maintenance and disposal

support reporting requirements for performance improvement and risk

management.

Skills and competencies

Asset managers (at all levels) should demonstrate that they possess the competency,
knowledge, skills and capacity to:

undertake sustainable procurement practices (at both the operational and strategic
level), arrange and disseminate required project reports, establish and manage asset
planning, design, and project management services

manage maintenance planning, delivery and reporting in accordance with

government policy

promote closer alignment of asset holdings with service delivery needs, encouraging
the disposal of under-utilised or surplus assets; manage the disposal processes
including compliance reporting and provision of disposal information and obtaining
approvals.

Strategic Asset Management Framework Overview

6.5

Information and systems

Agencies need to establish effective processes to manage asset information over the entire
life-cycle of the building.
Prior to commencing data collection, departments should clearly identify:

the purpose for collecting performance information

the end users

how the information will be used.

This will ensure that performance information is relevant and targeted at the correct areas so
that the benefits of performance measurement are optimised. Service delivery requirements
will be best supported by ensuring the integrity, accuracy, currency and completeness of the
information.
Management of building assets requires information to be extracted from multiple sources
located in various information systems, including:

asset information registers

building management and operation systems such as:

o

tenancy management systems

maintenance management systems

asbestos registers

energy and water consumption databases

financial management systems

business support systems and project management systems.

Maintaining accurate asset information records is essential to ensure that the government
meets its statutory obligations (e.g. duty of care) as a building owner.
The main issues which departments are required to address relate to:

the cost of building ownership

progress in departmental efforts towards achieving the Governments priorities (refer

to Getting Queensland back on track: Statement of objectives for the community);

asbestos containing material (departments are required to ensure that asbestoscontaining material in government buildings is managed and controlled in
accordance with the Asbestos Management and Control Policy for Government
Buildings)

Strategic Asset Management Framework Overview

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6.6

development of strategies to:

o

meet the need for new assets and for disposing of assets that are no longer
required

achieve and maintain the required level of operational performance for assets
(development of these strategies may be supported by the performance
indicators and performance measures in the Building Asset Performance
Framework)

demonstrate probity and accountability for outcomes and the achievement of

value for money in government building projects by ensuring consistency of
procurement strategy with Government objectives; coordination of building
projects and consistency and transparency in the procurement process (i.e.
meeting the requirements of the State Procurement Policy and other related
policies, including the Capital Works Management Framework and the
associated Prequalification (PQC) System for engaging building contractors
and consultants).

Performance management

Performance management practices provide assurance that a department has established

processes to determine if its delivery of services is efficient, effective and represents value for
money for the Queensland Government. Guidance on setting standards for a departments
service delivery is provided in A Guide to the Queensland Government Performance
Management Framework. The Government expects from departments a high level of
performance and tangible results for the people of Queensland.
Performance indicators and performance measures for building asset management should be
linked to service delivery objectives and provide information on the match or gaps between
actual performance and the performance required for optimum service delivery outcomes.
The Building Asset Performance Framework provides guidance on establishing a performance
management regime for buildings which includes a consideration of social and
environmental aspects as additional dimensions to the traditional functional and financial
performance assessment approach.
Consistent and coordinated monitoring, evaluation and reporting practices (within the agency
and externally) are important to provide a feedback loop to inform future asset management
and associated decision-making processes.

Strategic Asset Management Framework Overview

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Attachment 1: The suite of Strategic Asset Management

Framework documents
The suite of guidelines which comprise the Strategic Asset Management Framework is
organised under the following categories:
Overview explains the principles and concepts of strategic asset management as they apply
to buildings.

Guidelines expand on key aspects over the entire life-cycle of the asset (planning,
investment/procurement, management-in-use and disposal)
Planning

Asset Planning for Buildings - developing management strategies that will

contribute to the best utilisation of assets in the delivery of services to the community
in line with strategic plans, operational plans and service delivery strategies.

Investment/procurement

Capital investment/procurement planning and project delivery - defining capital

investment projects, preparing budget documentation and formulating
investment/acquisition plans.

Management-in-use

Building Management the process required to achieve and sustain defined levels of
building performance during building occupancy, building operation, building
maintenance and building upgrades.

Heritage Asset Management - best practice processes to enable agencies to

recognise, manage and conserve assets with cultural heritage significance during all
stages of the asset life-cycle (planning, investment/procurement, management-in-use
and disposal).

Maintenance Management planning, managing and delivering building

maintenance in accordance with the Maintenance Management Framework which
will ensure consistency in maintenance outcomes, building performance, risk
management and strategic decision-making.

Security Management of Government Buildings- the process of identifying,

implementing and monitoring systems and processes for the protection of building
assets against loss, misuse, damage or deprivation of use caused by deliberate acts.

Disposal

Asset Disposal - implementing processes and procedures to ensure appropriate asset

disposal planning of government buildings which have been identified as surplus to
departmental service delivery requirements.

Strategic Asset Management Framework Overview

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Decision-making methodologies and supporting guidelines

Asset Review and Analysis - establishing suitable processes and procedures to

ensure appropriate asset review and analysis which supports strategic asset planning
for their building portfolios. Project delivery involves development of a project brief,
selecting the procurement strategy and the consultants/contractors, design and
construction, and handover.

Environmental Sustainability Management undertaking life-cycle planning

analysis to support strategic management and decision-making processes, integrating
sustainability into procurement processes and developing and adopting
environmentally sustainable approaches to the design and construction of buildings.

Mitigating the Impact of Natural Disasters on Government Buildings the key

considerations of natural disasters in the planning of new buildings, and
refurbishment, retrofitting and maintenance of existing buildings.

Life-Cycle Planning using transparent, informed decision-making processes that

take into account the whole-of-life implications of acquiring, operating, maintaining
and disposing of a building asset.

Management of Government Building Projects - selecting and applying tools to

plan, organise, manage, procure and control a building project to achieve its
objectives.

Post Occupancy Evaluation - a structured approach to conducting a post occupancy

evaluation of a new or existing facility when it is fully operational which focuses on
the users interaction with the building, assesses the degree to which the building
supports service delivery objectives, assists continuous improvement in the planning
process and informs the preparation of defect action plans, at an operational level.

Risk Management - a systematic process which applies at every phase of a building

asset life-cycle (e.g. planning, investment/procurement, management-in-use and
disposal) to identify, analyse, assess and treat risks that may impact on an
organisations objectives.

Value Management - a structured and analytical process which facilitates good

decision-making on the planning, management and use of building assets to achieve
best value for money by comparing alternatives based on the relationship between
value and total cost.

Workplace Health and Safety - managing building assets throughout each stage of
the life-cycle in a way that positively controls the risks to all persons who might be
at risk by the operation of the asset and reduces the human and financial cost of
workplace injuries to employers, workers and the community.

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Attachment 2: List of policies and other relevant resources

A Guide to the Queensland Government Performance Management Framework (Department of
the Premier and Cabinet) is designed to improve the analysis and application of performance
information to support accountability, policy development and implementation and create
value for clients, stakeholders and the Queensland community.
Agency Planning Requirements (Department of the Premier and Cabinet) provides information
about:

the purpose, responsibility and legal requirements of agency planning

the contents of strategic, operational and specific purpose plans

establishing regular monitoring and reporting procedures to assess performances

against agency plans

mandatory and discretionary planning.

Asbestos Management and Control Policy for Government Buildings (Department of Housing
and Public Works) establishes a framework for identifying, documenting, managing and
controlling (including the safe removal of) asbestos containing material in a building, when
undertaking a government building project such as refurbishment, alteration, extension or
improvement.
Building Asset Performance Framework (Department of Housing and Public Works) is a best
practice guideline which describes a systematic approach for departments to managing the
performance of building assets to meet their service delivery requirements.
Capital Works Management Framework (Department of Housing and Public Works) is the
whole-of-Government policy for managing risks in the planning and delivery of government
building projects.
Financial Accountability Handbook (Queensland Treasury and Trade) has been designed to
assist accountable officers and statutory bodies discharge their obligations under the
Financial Accountability Act 2009, the Financial Accountability Regulation 2009 and the
Financial and Performance Management Standard 2009.
Financial and Performance Management Standard 2009 (Queensland Treasury and Trade)
requires departments to efficiently, effectively and economically manage physical assets by
establishing asset management systems for:
(a)
identifying, acquiring, managing, disposing of, valuing, recording and writing off
assets
(b)
conducting an evaluation before making the acquisition or carrying out the
maintenance or improvement, where the accountable officer or statutory body
considers the cost of acquiring, maintaining or improving a physical asset is
significant (a significant asset 2 )
(c)
reviewing the performance of completed significant assets to ensure the
objectives of the department or statutory body in acquiring, maintaining or
improving the assets were met
(d)
regularly maintaining the assets.
The Financial Accountability Handbook defines significant assets as those assets with a high dollar value, those that provide a
key role in the delivery of agency services, or those that bring potential high risk to agency operations in the event of failure.

Strategic Asset Management Framework Overview

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Government Employee Housing Management Framework (Department of Housing and Public

Works) is the whole-of-Government policy for the procurement, planning and management
of government employee housing.
Maintenance Management Framework (Department of Housing and Public Works) is the
whole-of-Government policy for managing, planning and delivering building maintenance to
ensure departments have a consistent approach.
Project Assurance Framework (Queensland Treasury and Trade) is the foundation framework
for ensuring that project initiation and development is undertaken effectively across the
Queensland public sector and delivers value for money to the government from its significant
investment in project activity. The associated Value for Money Framework is the basis for
the implementation of Queensland's Public Private Partnerships Policy. The Financial and
Performance Management Standard 2009 provides that Queensland public sector agencies
must have regard to these frameworks in preparing evaluations for significant asset
investment.
State Procurement Policy (Department of Housing and Public Works) is the whole-of
Government policy which delivers benefits for the Government, suppliers and the community
through three objectives:

advancing the priorities of the Government

achieving value for money

ensuring probity and accountability for outcomes.

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