QH-PCD-338-1-1:2011

Building and Infrastructure Maintenance Policy

Procedure for Building and Infrastructure Maintenance

Funding
Health Planning and Infrastructure Division
Custodian/Review O fficer: Senior 1. Purpose
Director, Asset and Properties Services
Version no: 1.0
This Procedure describes the processes for identifying
and allocating sufficient funding to maintain buildings and
Applicable To: HSD and Corporate office
Divisions associated infrastructure.
Approval Date: 20 September 2011
2. Scope
Effective Date: 1 July 2011
Next Review Date31/12/2013
This Procedure applies to all health service districts and
corporate office divisions (who have building asset owning
Authority:
responsibilities), their employees, service providers and
suppliers responsible for the management, operations
Approving Officer and maintenance of Queensland Health owned or
Deputy Director-General, Health Planning managed buildings or infrastructure.
and Infrastructure Division
Name John Glaister This Procedure applies to Queensland Health owned or
Supersedes: New Issue managed buildings or infrastructure and does not apply to
Key W ords: maintenance, funding,
Health Technology equipment or Information
procedure Communication Technology equipment.
Accreditation References:
EQuIP and other criteria and standards
3. Supporting documents
Authorising Policy and Standard/s:
 Building and Infrastructure Maintenance Policy
 Building and Infrastructure Maintenance
Funding Implementation Standard
Forms and templates
 Annual Maintenance Plan Template

4. Related documents
 Maintenance Management Framework (MMF)

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 Queensland Health: Building and Infrastructure Maintenance Funding Procedure

5. Procedure
5.1 Maintenance Demand Assessment

Health service districts and corporate office divisions (who have building asset owning
responsibilities) shall undertake a maintenance demand assessment to determine the
funding required to complete all the required maintenance for specified buildings and
infrastructure assets in a portfolio.

A maintenance demand assessment includes the assessment of the following

maintenance services:
 Individual items in the backlog maintenance register, prioritised by risk
 Maintainable items and associated maintenance plans
 Mandatory and best practice maintenance requirements
 Defects identified through the condition assessment process;
 Unplanned and reactive maintenance from previous years
 Replacement of items that have exceeded their useful life
 Impact of proposed minor/major capital works.

When assessing the maintenance services above, health service districts and corporate
office divisions (who have building asset owning responsibilities) shall consider:
 Identification of the gaps in desired and actual asset condition and the estimated
costs of condition based maintenance to bring assets up to the desired standard of
condition and functionality
 Planned maintenance versus total maintenance ratios
 Review of the maintenance expenditure target (from the calculated undepreciated
ARV at the portfolio level)
 Maintenance required for risk minimisation
 Service delivery options including assessing internal resources within Queensland
Health and external contracting
 Life cycle replacement scheduling to minimise the risk of asset failure at the end of
its useful life
 Identification and assessment of other associated costs of maintenance such as
condition assessments, project management and consultancy costs
 Assessment of the impact on maintenance requirements resulting from optimisation
of the consumption of these utilities – electricity, gas, liquid fuels and water.
Health service districts and corporate office divisions (who have building asset owning
responsibilities) shall consult all stakeholders when assessing maintenance demand.
The use of an Annual Maintenance Plan template will assist this activity.

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 Queensland Health: Building and Infrastructure Maintenance Funding Procedure

5.2 Maintenance Budget Allocation

For this process, health service districts and corporate office divisions (who have building
asset owning responsibilities) shall consider the total maintenance demand, inclusions,
exclusions and expenditure and define the final list of items for the budget allocation, as
detailed in the Annual Maintenance Plan.
Health service districts and corporate office divisions (who have building asset owning
responsibilities) shall include lists of works identified as funded activities in the Annual
Maintenance Plans under the following categories:
 Condition Assessments
 Preventative and Statutory maintenance
 Planned - Condition Based maintenance
 Unplanned maintenance
 Lifecycle Replacements
 Administration.

5.2.1 Maintenance Budget Exclusions

To assist in determining an appropriate budget for maintenance funding, items on the
following list of activities are not maintenance activities and shall be excluded from
maintenance budgets:
 security patrols
 day to day cleaning activities
 waste management
 leasing costs
 utility costs (such as electricity, fuel, gas, water supply and telecommunications);
pest control
 day to day landscaping and mowing/slashing, unless it is needed to assist with
access for maintenance activities
 office relocation costs.

5.2.2 Capital versus Maintenance Expenditure

The whole-of-government Maintenance Management Framework (MMF) identifies that
expenditure on assets shall be capitalised when it improves the condition of the asset
beyond its originally assessed standard of performance or capacity. Examples include
upgrades, enhancements and additions to a building asset.
Further guidance can be found in ‘Queensland Treasury Non-Current Asset Policies for
the Queensland Public Sector’, the ‘Queensland Health Finance Management Practice
Manual’ and in the ‘Maintenance Management Framework Policy Advice Note on Capital
or Expense? - A Guide for Asset and Maintenance Managers’.

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5.2.3 Annual Maintenance Plan

An Annual Maintenance Plan identifies the quantum of funding that is needed to
adequately address the key maintenance needs of the building asset base and the
supporting infrastructure of health service districts and corporate office divisions (who have
building asset owning responsibilities).
The Annual Maintenance Plan in the approved template format shall be endorsed by the
respective CEO or DDG and submitted to HPID annually by 30 June and will identify the
maintenance budget for the forthcoming financial year of the health service district or
corporate office division.

5.3 Maintenance Expenditure Target

5.3.1 Methodology for Determining Maintenance Expenditure

Maintenance expenditure is determined from information extracted from the Finance and
Materials Management Information System (FAMMIS). This information also recognises
labour costs for administration, technical and professional support staff.
Tables of relevant account codes and cost-centres to be used to ensure correct
identification of maintenance expenditure are shown in Appendix 2.

5.3.2 Methodology for Determining the Undepreciated Building Asset Replacement

Value

The undepreciated building Asset Replacement Value (ARV) (or gross value) is the
estimated replacement cost of the asset on the valuation date (e.g. the likely cost of
construction including fees if tendered). This estimate is based on the assumption a
building asset will be replaced with one of the same scope of construction and functional
area as the original building and will meet current design requirements.
A valuation assessment has priced assets using Brisbane rates and applied a location
factor if applicable (in accordance with methods identified in the ‘Rawlinson’s Australian
Construction Handbook 2006’).
This assessment excludes costs for Health Technology Equipment Replacement (HTER)
and Information Communication Technology (ICT).
The undepreciated ARV for each health service district and corporate office division is
stored in the Queensland Health CMMS at the “Plant” level in the “Functional Location
Master Data” record. This data is sourced from the Asset Accounting Team on an annual
basis and updated in the CMMS as a prerequisite for the preparation of budgets for the
health service districts and corporate office divisions.

5.3.3 Expenditure Target

Research undertaken by Queensland Health has shown that at a portfolio level, allocating
a maintenance expenditure target of 2.15 percent of the undepreciated building ARV
would enable Queensland Health to sustain its maintenance and life cycle replacement

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 Queensland Health: Building and Infrastructure Maintenance Funding Procedure

funding needs, taking into account age, operating environment, intensity of usage, location
and other variables.

The portfolio level expenditure target is calculated by applying the following formula:

($) Undepreciated building ARV at the Portfolio Level x (2.15 percent / 100) = Total
ARV x 0.0215 = Total
Example: $9,000,000 x 0.0215 = $193,500.
All health service districts and corporate office divisions shall meet the minimum
maintenance expenditure target of 2.15 percent of the undepreciated building ARV at the
portfolio level.

5.3.3.1 Environmental Factor for Buildings located near the Sea

Health service districts and corporate office divisions (who have building asset owning
responsibilities) shall consider local variations to the expenditure target through the
maintenance demand assessment. Where buildings are subject to extreme environmental
conditions, (e.g. buildings located on the sea-front or within one kilometre distance of the
sea), the maintenance expenditure target shall be adjusted for external building
components by use of an environmental factor. An environmental factor of three (for sea
front buildings) or two (for buildings that are located within a one kilometre distance of the
sea) shall be applied to the 2.15 percent target as follows:
Overall Factor for “Sea Front Buildings”:
Factor = 0.0215 x 3 = 0.0645 (6.45%)
ARV x 0.0645 = Total
Example: $5,000,000 x 0.0645 = $322,500.

Overall Factor for “Buildings located within one kilometre distance of the sea”:
Factor = 0.0215 x 2 = 0.043 (4.3%)
ARV x 0.043 = Total
Example: $3,000,000 x 0.043 = $129,000.
This adjustment shall be applied to those buildings only, and other buildings not located
close to the sea would use an environmental factor of one.

5.3.4 Ratio of Planned Maintenance to Total Maintenance Expenditure

Undertaking planned maintenance (preventative, condition-based and statutory) is an
effective strategy in managing the demand for breakdown (unplanned or corrective)
maintenance. The ratio of funding for expenditure on planned maintenance to total
maintenance that generally demonstrates good practice in maintenance management is
approximately 65 percent + or - 5 percent.
Health service districts and corporate office divisions (who have building asset owning
responsibilities) shall ensure maintenance funding in Annual Maintenance Plans reflects
this ratio of planned to total maintenance.

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5.3.4.1 Maintenance Activity Types

A number of maintenance activity types have been specified for use within CMMS to
identify planned and unplanned maintenance activity. This identification is used in
reporting the ratio of planned maintenance to total maintenance expenditure.
The relationships of these activity types to the MMF maintenance categories are shown
below.

Table 1: Maintenance Activity Types:

MMF Category Activity Type in CMMS

AD - Administration
CB – Condition Based Maintenance
CF – Corrective (Follow-Up Work)
Planned
Maintenance LR – Lifecycle Replacement

PM – Preventative Maintenance

SM – Statutory Maintenance
WA – Warranty Pre-Expiry Checks
CM – Corrective Maintenance
Unplanned
IM – Incident Maintenance
Maintenance
RC – Rush Corrective Maintenance

(Refer to Appendix 1 for full details).

5.3.4.2 New Minor Works

New minor works are reported by value in CMMS and evaluated as a ratio of total
maintenance expenditure. New minor works are not included in the maintenance budget
allocation.

5.3.5 Facility Condition Index

The Facility Condition Index (FCI) is another measure of asset performance which is used
at a portfolio level to provide information on the relative condition of the building assets.
The FCI is calculated by dividing the existing cost of backlog maintenance by the Asset
Replacement Value (ARV) and expressing as a percentage. The higher the percentage for
the FCI, the poorer the condition of the asset as per the FCI categories below:

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Table 2: FCI Categories:

FCI value as Percentage Category

0 - 2 percent “Excellent”
2 - 5 percent “Good”
5 - 10 percent “Fair”
10 - 15 percent “Poor”
>15 percent “Very Poor”

Backlog maintenance will be measured using the CMMS. Where the decision is made to
defer maintenance, a risk assessment of each item shall be performed using the backlog
maintenance functionality in the CMMS and risk mitigation strategies developed. The
backlog maintenance levels shall be reported quarterly to HIPEC and Health service
districts and corporate office divisions.
Queensland Health research indicates that a manageable level for backlog is equivalent to
an FCI index of “Good” which corresponds to a ratio of backlog to undepreciated ARV
between 2 percent and 5 percent. Each Health service district and corporate office division
shall develop a strategy to address their backlog maintenance levels and shall achieve an
FCI index of “Good”.

6. Definition of Terms

Term Definition / Explanation / Details Source

Backlog Maintenance Backlog maintenance is defined as maintenance that is Standards Australia -
necessary to prevent the deterioration of an asset or its Glossary of Building
function but which has not been carried out. Terms - HB50-2004

Condition Assessments A technical inspection by a competent assessor to evaluate Maintenance

. the physical state of building elements and services and to Management
assess the maintenance needs of the facility Framework (MMF),
. Department of Public
Works, Revised 2009

7. Procedure Revision and Approval History

Version Modified by Amendments authorised by Approved by

No.
1.0 N/A N/A DDG HPID

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8. Appendices

Appendix 1: Maintenance Activity Types

This list of maintenance activity types in CMMS was last updated in September 2010.
Table 3: Maintenance Activity Types:

CMMS
Work MMF
Activity Type Description Examples
Order Category
Type
Used to identify miscellaneous  Workshop cleaning.
AD - administrative activities associated
MST Planned
Administration with the support and delivery of
maintenance.
Used for the tasks to restore the  Replacing worn
condition or performance of equipment carpeting; and
CB – MWR
Condition
and building infrastructure to an  Repainting of hospital
acceptable standard. It is also used corridors. MAS Planned
Based
for any identified corrective
Maintenance MPM
maintenance arising from assessment
activities.

Used to identify corrective work that  Identifying a leaking

CF – panel seal on an air
has been identified when performing MWR
Corrective conditioning unit during
planned / preventative maintenance Planned
(Follow-Up the regular monthly
which was not part of the planned
Work) inspection.
activity.

 Replacement of
Used for the replacement of equipment standby generating
and/or infrastructure deemed to be at sets;
LR – Lifecycle the end of its useful life. Note the MWR
 Replacement of a lift; Planned
Replacement replacement of equipment and/or and MAS
infrastructure is always to be on a  Replacement of a
basis of “like with like”. Nursecall system.

Used for systematic inspection,  Replacement of motor

monitoring, adjustment and parts oil every 10,000 hours;
PM – replacement tasks to detect and/or  Inspection of an
MPM
Preventative avoid deterioration or failure. It can automatic opening Planned
Maintenance also be used for any testing door; and MST
undertaken to confirm correct  Check the operation of
operation. public address system.

 Testing and tagging of

electrical equipment;
Used to identify equipment or facilities
SM –  Monthly inspection air MPM
that have a statutory requirement to be
Statutory filters; and Planned
maintained under a defined policy or MST
Maintenance
legislation.  Annual inspection of
fire hydrants and
smoke detectors.

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CMMS
Work MMF
Activity Type Description Examples
Order Category
Type
Used in order to meet and maintain a  3 monthly inspection
warranty for equipment or facilities. and service of on-site
For example, equipment may need to sewerage system;
WA –
be serviced every three months in  Monthly load test and
order to satisfy its 2-year warranty. inspection of standby
Warranty Pre- MPM Planned
Failure to service the equipment may generating sets; and
Expiry Checks
void the warranty. Therefore a  Monthly inspection of
planned / preventative work order with laboratory analysis
an activity type of WA would be equipment.
created for the 3 monthly services.
 A door handle is broken
and needs
replacement; MAS
CM – Used to restore equipment and
Corrective facilities to an operational condition  The pan sanitiser is MST Unplanned
Maintenance following an unforeseen failure. leaking; and
 Blocked toilets, MWR
guttering and drains.
To be used for an unexpected  Graffiti and vandalism;
IM – Incident
breakage or failure that requires an  Break and entry; and MWR Unplanned
Maintenance
immediate response.  Storm and fire damage.
Used to identify emergency situations.  A water main has burst;
These situations call for a rush and
RC – Rush corrective maintenance work order to  The air supply system
Corrective ensure that the work is promoted in is blocked. MWR Unplanned
Maintenance priority before all others. Note this
activity type is very similar to corrective
maintenance.
 A new wall needs to be
built to divide a room;
To be used for work undertaken that  New shelving for an
NW – New MWR Minor
results in enhancements or additions office; and
Minor Works  A new whiteboard for a MAS Works
being performed on an existing asset.
training room is
needed.
 Moving furniture;
 Regular landscaping
OA – and grass mowing;
To be used for costs not directly
Operational  Training and meetings; MWR Operational
chargeable to an asset.
Activities and
 Replacing gas bottles.

CMMS Work Order Types:

MAS: Maintenance Assessment
MPM: Pre ventative Maintenance
MST: Sta nding Order
MWR: Maintenance Work Request.

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Appendix 2: General Ledger and District Cost Centre Accounts and

Descriptions used for Maintenance Expenditure Reporting
These codes, cost centres and accounts in FAMMIS were last updated in September
2010.
Table 4: General Ledger Account Codes and Descriptions:

G/L
G/L Account Description
Account
500050 SALWAG-TRADES AND ARTISANS
500150 NONDEP-TRADES AND ARTISANS
501050 OVERTM-TRADES AND ARTISANS
501150 HIGHDT-TRADES AND ARTISANS
502050 PENALT-TRADES AND ARTISANS
502150 SHIFAL-TRADES AND ARTISANS
502250 LOCALY-TRADES AND ARTISANS
502350 MEALAL-TRADES AND ARTISANS
502950 OTHALL-TRADES AND ARTISANS
503050 ANNUAL LEAVE-TRADES & ARTISANS
503150 CERL -TRADES AND ARTISANS
503250 LEAVE LOADING-TRADES AND ARTISANS
503350 LSLEAV-TRADES AND ARTISANS
503450 CELSL -TRADES AND ARTISANS
503550 SICKLV-TRADES AND ARTISANS
503650 OTHER LEAVE-TRADES & ARTISANS
504050 SUPER CONTRIBUTION - DEFINED BEN SCH TRADE & ART
504150 SUPER CONTRIBUTION - ACCUM SCHEME TRADES & ARTISAN
504250 SUPER - EMPLOYEES OVER 75 - TRADES AND ARTISANS
504850 OTHSUP-TRADES AND ARTISANS
505050 PAYTAX-TRADES AND ARTISANS
505150 FBTTAX-TRADES AND ARTISANS
506050 REDUND-TRADES AND ARTISANS
506150 EXGRAT-TRADES AND ARTISANS
517250 TEMPORARY SERVICES - TRADES AND ARTISANS
577495 INTRA DEPT-REPAIRS & MAINTENCES
536000 R&M CONTRACT-BLDG & PLANT
536005 BLD&PT-CON-LIFTS
536010 BLD&PT-CON-AIR CONDITIONING

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G/L
G/L Account Description
Account
536015 BLD&PT-CON-CHILLER PLANT
536020 BLD&PT-CON-WATER TREATMENT
536025 BLD&PT-CON-FIRE PROTECTION
536030 BLD&PT-CON-MEDICAL AIR AND VACUUM
536035 BLD&PT-CON-EMERGENCY GENERAL
536040 BLD&PT-CON-OTHER
536100 R&M-BLDG & PLANT
536105 BLD&PT-N/C-ROOF REPAIRS
536110 BLD&PT-N/C-PLUMBING MATERIALS
536115 BLD&PT-N/C-ELECTRICAL MATERIALS
536120 BLD&PT-N/C-ELECTRICAL LABOUR
536125 BLD&PT-N/C-CARPET MATERIALS
536130 BLD&PT-N/C-GENERAL LABOUR
536135 BLD&PT-N/C-PLUMBING LABOUR
536140 BLD&PT-N/C-CARPENTER LABOUR
536145 BLD&PT-N/C-OTHER BUILDING
536150 BLD&PT-N/C-OTHER PLANT
536275 REPAIRS AND MAINTENANCE EXPENSE
536280 R&M-CONTRACT-ENGINEERING EQUIPMENT
536380 R&M-ENGINEERING EQUIPMENT
536385 R&M-FURNITURE & FITTINGS
536400 EQUIPT-N/C-DOMESTIC EQUIPMENT
536405 EQUIPT-N/C-PRESS EQUIPMENT
536410 EQUIPT-N/C-ELECTRICAL EQUIPMENT
536415 EQUIPT-N/C-GARDENING EQUIPMENT
536420 EQUIPT-N/C-WARD EQUIPMENT
536425 EQUIPT-N/C-FIRE EQUIPMENT
536430 EQUIPT-N/C-GROUNDS AND GARDENS
536495 R&M-DOMESTIC EQUIPMENT

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Table 5: General Ledger account ranges:

Labour G/L code ranges run at Cost Centre level to extract non artisan labour
500000 – 500049 500051 – 500149 500151 – 501049
501051 – 501149 501151 – 502049 502051 – 502149
502151 – 502249 502251 – 502349 502351 – 502949
502951 – 503049 503051 – 503149 503151 – 503249
503251 – 503349 503351 – 503449 503451 – 503549
503551 – 503649 503651 – 504049 504051 – 504149
504151 – 504249 504251 – 504849 504851 – 505000

Table 6: District Cost Centres (previously provided by Districts):

Business Cost Business Cost Business Cost

Area Centre/s Area Centre/s Area Centre/s
60 603502 74 748050
61 610000 75 752115 860321
86
621310 76 762000 862322
622310 77 773200 87 870916
62
623310 78 787409 88 880207
624310 79 Nil 89 896621
63 630101 803010 90 900402
80
64 640712 803015 92 922312
65 651000 81 810001 93 932310
66 664140 82 821748 94 943701
67 Nil 83 831040 95 951215
68 681380 840401 96 961509
69 697100 840408 97 976120
84
71 710201 840410 98 981212
722900 840411 994750
72 85 - 99
723900 852501 994751
Community
85 - Main
735609 850626
Hospital

73 735610
735611
735613

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