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Asset Maintenance and Upgrades Guidelines for National/Provincial Roads

A comprehensive guide on asset maintenance, repair, refurbishment, and upgrades for national/provincial roads in July/August 2009. Presented by the SCOA Technical Committee of the National Treasury, covering principles, definitions, transaction types, and relevant categories. Learn about recording payments, infrastructure reporting, and monitoring maintenance costs. Contact the National Treasury SCOAPROJECT team for more information.

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Asset Maintenance and Upgrades Guidelines for National/Provincial Roads

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  1. MAINTENANCE, REPAIR, REHABILATATION, REFRUBISHMENT, UPGRADE AND ADDITIONNational/Provincial Road showsJuly/ August 2009

  2. Classification Circular 3 Classification of own account and outsourced Maintenance and Repairs (M&R), Upgrade and Additions (U&A) and Rehabilitation and Refurbishment (R&R) of all asset types Presented by: SCOA Technical Committee National Treasury

  3. Important principles • Why record asset related payments? • Infrastructure reporting • Asset management and costing • Recording own account transactions • Correctly present spending on contractors • Monitoring total maintenance cost

  4. Definitions • Own Account maintenance, upgrade and rehabilitation • Department engages in project in its own capacity • Outsourced maintenance, upgrade and rehabilitation • Project is outsourced to an external service provider • Only difference is in Item segment

  5. Definitions continued • Maintenance and repairs • Maintaining the capacity and effectiveness of an asset at its designed level • Upgrades and additions • Improving the capacity and effectiveness of an asset above that of the initial design purpose • Rehabilitation and refurbishment • Required due to neglect, unsatisfactory maintenance or degeneration of an asset

  6. Relevant transaction types • Owned and leasehold property • Residential and non-residential buildings either owned or leased by government • To get a full picture of spending on property • Machinery and equipment • All other asset types • Either own account or outsourced

  7. Owned and leasehold property Project Item Asset Maintenance & repair (M&R) Owned & leasehold property: Contracted property M&R Relevant property asset category Projects: Existing infrastructure: M&R Current Upgrade & additions (U&A) Owned & leasehold property: Contracted property U&A Relevant property asset category Projects: Existing infrastructure: U&A Capital Rehab & refurbishment (R&R) Owned & leasehold property: Contracted property R&R Relevant property asset category Projects: Existing infrastructure: R&R Capital

  8. Machinery and equipment Project Item Asset Maintenance & repair (M&R) Contractors: M&R of machinery & equipment Relevant asset category Projects: Not related to infrastructure: M&R Current Upgrade & additions (U&A) Contractors: U&A to machinery & equipment Relevant asset category Projects: Not related to infrastructure: U&A Capital Rehab & refurbishment (R&R) Contractors: R&R of machinery & equipment Relevant asset category Projects: Not related to infrastructure: R&R Capital

  9. Other asset types Project Item Asset Maintenance & repair (M&R) Contractors: M&R of other asset types Relevant other asset category Projects: Existing or not related to Inf: M&R Current Upgrade & additions (U&A) Contractors: U&A to other asset types Relevant other asset category Projects: Existing or not related to Inf: U&A Capital Rehab & refurbishment (R&R) Contractors: R&R of other asset types Relevant other asset category Projects: Existing or not related to Inf: R&R Capital

  10. QUESTIONS? NATIONAL TREASURY SCOA PROJECT TEAM: CALL CENTRE: (012) 315 5311 E-MAIL: SCOA@TREASURY.GOV.ZA WEBSITE: WWW.TREASURY.GOV.ZA External links, SCOA link

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