Asset Management Plan

An Asset Management Plan (AMP) is a plan developed for the management of one or more infrastructure asset classes with a view to operating, maintaining and renewing the assets within the class in the most cost effective manner possible, whilst providing a specific level of service."

Alternate Definitions

• A tactical plan for managing an organisation's infrastructure and other assets in order to deliver an agreed standard of service. - Wikipedia
• A plan developed for the management of one or more infrastructure assets that combines multi-disciplinary management techniques (including technical & financial) over the lifecycle of the asset in the most cost effective manner to provide a specific level of service." - International Infrastructure Management Manual.
• An Asset Management Plan is a document containing or referring to specific asset related data, statements & projections that is drafted to comply with specific government legislation or (more rarely) in an endeavour to improve asset management practices within an organisation. - WGE
• Local Government Victoria's Sustaining Local Assets Policy defined an AMP as a document that;
  • defines levels of service within financial/resource/risk constraints;
  • presents cash flow forecasts for acquisition, operation, and maintenance and capital expenditure, and for revenue, where relevant;
  • specifies the capital expenditure for renewing, upgrading or extending assets;
  • justifies the contribution of each asset in terms of value for money for the council; and
  • establishes the targets and measures that will be used for monitoring progress with its implementation.

Plan Contents

In some states – Queensland for example – there are Minimum Requirements for Asset Management Plans, in other states what needs to be in a plan is less well defined.

Some items typically found in an AMP include:

• Scope
• Links to Related Plans, Policies and Strategies
• Reasons for Asset Ownership
• A Physical Classification & Description of Assets
• Asset Management Practices
• Service Levels
• Asset Valuations & Lifecycle Costing
• A Forecast of Future Demand & Technological Changes
• Expenditure & Cash Flow Forecasts
• AM Targets, Measures & Monitoring

Local Government Asset Management Better Practice Guide

The Local Government Asset Management Better Practice Guide stated that an Asset Management Plan should:

• Encompass all the assets under council’s control.
• Connect the investment of community wealth in assets with service outcomes.
• Plan a scenario that manages assets to provide affordable levels of service within financial/resource/risk constraints.
• Identify and communicate risks associated with affordable service levels and how these risks will be managed.
• Plan additional scenarios that manage assets to provide optimal life cycle costs to inform the asset management strategy and Long Term Financial Plan.
• For each scenario, present cash flow forecasts for acquisition, operating, maintenance, renewal/upgrade and where relevant, disposal.
• Establish the targets and measures that will be used for delivering service outcomes and show value for money.

Related Pages

• Asset Management
• Asset Management Framework
• Asset Management Planning
• Asset Management Policy
• Asset Management Strategy
• Asset Management Plan Template
• Asset Plan
• Long-Term Asset Management Plan
• Minimum Requirements for Asset Management Plans (Queensland)
• National Asset Management Assessment Framework
• Road Management Plan
• Sustaining Local Assets Policy

External Links & References

1. Local Government Victoria - Guidelines for developing an Asset Management Policy, Strategy & Plan
2. Google Search