Glossary - P

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A long term commitment between two or more organizations for the purpose of achieving specific business objectives by maximizing the effectiveness of each participant's resources. This requires changing traditional relationships to a shared culture without regard to organizational boundaries. The relationship is based on trust, dedication and common goals, and understanding of each other's individual expectations and values. Source: C1

Payback Period

The time it takes for the cumulative benefits of an investment to equal the original investment and other accrued costs. Source: G3

Performance Criteria

Usually a set of targets specifying the required level of output performance in terms of a descriptor which needs to be achieved in order to be deemed to have achieved that specified level. Source: A7

Performance Indicator

A quantitative or qualitative indicator of the quality of service, efficiency, productivity, or cost effectiveness of an agency, program, or activity which enables a comparison to be made for management purposes of performance against a standard target or norm. It may be a quantitative measure or qualitative indicator of performance. Source: G3

Performance Measure

A type of performance indicator expressed as a ratio or combination of items, which result in a value with compound units such as $/ton, person hours/job, or operating hours per year. Source: G3

Performance Monitoring

Periodic or continuous sampling to determine a previously defined level. This level could refer to an asset attaining a service delivery output performance target. It could also refer to the determination of pollution or radioactivity levels etc. In short, it refers to the periodic measuring or sampling some thing, to gain assurance that it has either attained a predetermined level, or conversely, that it has not exceeded a predetermined level. Source: S2

Plan - Asset Portfolio Strategic Plan

This provides a 5-year detailed overview of all proposed capital and recurrent expenditure. It is a summary of the proposed acquisition, refurbishment, operations, maintenance and disposal programs. It also provides a lesser overview of proposed expenditure for the year 6 to year 20 planning horizons. ? Source: A4

Plan - Asset Strategic Plan (ASP)

This Plan (developed at the asset level) along with the Asset Portfolio Strategic Plan are the only organizational strategic plans. In the areas of acquisition/refurbishment, operations, maintenance and disposal, proposed annual programs are developed. Long-term strategies addressing all proposed asset lifecycle issues and objectives are fundamental to the ASP. The ASP is "rolled-up" in summary format to form the Portfolio Strategic Plan (PSP). The PSP enables the asset planner to prioritize performance improvement initiatives, and to "level-out" peaks in planned expenditure. It simply provides a "big picture" overview of the asset portfolio.

Plan - Business Plan

Similar to the Corporate Plan, but with a limited planning horizon of usually around 12 months. It addresses in significant detail how the organization intends to achieve these issues and objectives. While there is a single corporate plan, it is common practice for each business or functional unit in an organization to develop its own business plan. The collective business plans then need to be reviewed by the executive management team, to remove duplication of effort, while eliminating planning gaps.

Plan - Corporate Plan

A written record describing the reasons for an organization's existence, program objectives and issues, and how it intends to measure progress to address these issues and objectives.

Plan - Service Delivery Plan (SDP)

A well-developed SDP identifies corporate outcomes, and aligns its outputs closely to their achievement. The SDP examines all potential strategies, and nominates the preferred strategy to address corporate outcomes. It then allocates appropriate resources (human, asset information and fiscal). It also establishes minimum acceptable resource input performance indicators, and clearly defines targets for each resource. This in turn, facilitates service delivery cost. By establishing resource input performance indicators and setting targets, the right data is collected to measure output resource performance. Where a service is underperforming, it is easy to ascertain which input resources require attention or optimization.

Planned Maintenance - Periodic

Necessary to ensure the reliability or to sustain the design life of the assets.

Planned Maintenance - Predictive

Enacted by condition monitoring (surveillance) activities that indicate or predict failure.

Planned Maintenance - Preventive

Maintenance that can be initiated without continuous checking (e.g. using information contained in maintenance manuals or manufacturers' recommendations). Such maintenance is not condition based.

Policy Objectives

Intended outcomes to be achieved through the production or delivery of outputs. Source: A4


The total group of assets and facilities for which an organization is responsible. Source: A4

Portfolio Management

A systematic and analytical process linking organizational effectiveness with the performance and utilization of a group of built assets, with the primary objective of optimizing the financial viability, functionality and utilization of an aggregated portfolio of built assets within pre-determined performance and risk and return parameters which are set by stakeholders as minimum requirements: Source: P1


A process used by clients in which suppliers are assessed against prescribed criteria to determine whether they meet the required standard to provide products and services to the client, prior to the competitive purchase process. Source: P1

Pre-registered Bids

Principals invite expressions of interest in being pre-registered for a specific project or specific types of projects. Applicants are evaluated and a small number of those meeting the required criteria are invited to bid. Often referred to as "registration of Interest". Source: N1

Present Value (PV)

The sum of the present values of all benefits (including residual value, if any) minus the sum of all the present values of all costs. A positive NPV is a criterion for proceeding with a project or program, although risk and other factors from other decision support tools need to be considered. Note: Normally used where benefits are likely to exceed costs. Source: A4


Maintaining an asset adequately. Source: G3

The policy of saving or preserving historic buildings or monuments by various means, including maintenance or reconstruction. Source: S2

Maintaining the fabric of a place (building, site, etc.) in its existing state and retarding deterioration. Source:A3

Preventative Maintenance

The actions performed to retain an item in its original condition as far as practicable by providing systematic inspection, detection and prevention of incipient failure. Preventive maintenance is normally programmed, for example as "pre-determined preventive maintenance". Source: G3

Price Year

The year in which money values are expressed to ensure analysis is undertaken in $ units which represent the same purchasing power in real terms. Source: A4


The person for whom the work is done under the terms of the contract. The term 'Principal' is synonomous with 'client' or owner. The Principal operates in conjunction with the Superintendent and Superintendent's Representative. The Superintendent and the Superintendent's Representative derive their authority by delegation from the Principal. (Refer to Superintendent and Superintendent's Representative.) Source: G3

Principal's Representative

The person who determines the outcome of disputes in Minor Services or Construction contracts. (Refer to Superintendent). Source: A4


From a purely risk standpoint, probability is the likelihood of something happening.

From a statistical standpoint, it is the relative frequency of the occurrence of an event measured by the number of cases or alternatives favorable to the event, to the total number of cases or alternatives.

From a clinical viewpoint, a probability assignment is a numerical encoding of the relative state of knowledge. Source: A4

Probability Weighting

The calculation of a probability weighted outcome is the outcomes multiplied by their probability, and then summed. It is usual to assume a low, medium and high set of probability, similar to sensitivity testing. Source: A4

Probable Error

The magnitude of error that is estimated to have been made in determination of results. Source: A4


A specified way to carry out an activity. It should be noted that procedures can be documented or not, and when a procedure is documented the term "written procedure" is frequently used. Source: S2: AS/NZS ISO 9000:2000.


The act of bringing a facility or part thereof into existence, including inception, pre-design, design, construction, and financing. It is the collection of activities by a principal to obtain assets, beginning with the detailing of requirements and concluding with the acceptance of the assets. Source: P1

Procurement Strategy

The means, contractual or non-contractual, by which the objectives of a project or program are to be achieved. It is a combination of a delivery system, and one or more contract systems. Source: N1


The result of activities and/or processes. It should be noted that a product:

  • may include service, hardware, processed materials, software or a combination thereof
  • can be tangible (e.g. assemblies or processed materials) or intangible (e.g. knowledge or concepts) or a combination thereof
  • can be either intended (e.g. offering to customers) or unintended (e.g. pollutant or unwanted effects). Source: S2 : AS/NZS ISO 9000:2000.


As distinguished from a project, a collection of projects grouped according to common objectives, nature or purpose. Source: N1

Program Evaluation

A systematic assessment of the extent to which:

  • program objectives are aligned with government/corporate priorities
  • program input resources are used to maximize program outputs
  • program outcomes achieve stated projective objectives. Source: T2

Program Management

The management of a set of projects or activities that deliver an agency's objectives and that are translated into the operational programs of the agency. Source: T2

Programmed Maintenance

Maintenance deemed necessary, following analysis of life-cycle information and consultation with the client agency to determine the future and continued use of equipment, plant or facility, to restore that equipment, plant or facility to its original specified performance. Source: D1

Progress Payment

A payment made to the contractor by the Principal, following the issue of the progress certificate by the Superintendent, at intervals specified by time, such as monthly payment for work completed in that month, or a payment on completion of a specified stage of work such as the basement floor structure. Source: G3


A unique process, consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an object conforming to specific requirements, including the constraints of time cost and resources. Quite often an individual project can form either part of a larger project or program structure. Source: S2: AS/NZS ISO 9000:2000.

An undertaking with a defined beginning and objectives by which completion is identified. A project may be completed using one contract or a number of contracts. Source: N1

A building or engineering undertaking from inception to completion, involving a number of interrelated activities. A project for the construction of which a contract has been signed is often called 'works project' or just 'works'. Source: G3

Any proposal that requires the weighing up of costs and benefits in order to meet a desired objective. The term is not restricted to a capital works or recurrent project. Source: T2

Project Description

The functional and operational requirements for the proposed project, stating the end user's requirements and setting out objectives in terms of time, cost, quality, function and scope. Refer also to "Client Description". Source: G3

The description developed by the client as a result of rigorous evaluation of service delivery needs and options and forwarded to the design team for interpretation into a design for a built asset. Source: D1

Project Budget

The target estimate of the final cost of a project, including provision for all costs from inception to completion. Source: A4

Project Concept

An asset strategy meeting the requirements of a preferred service delivery strategy identified in the service delivery planning process. Source: A4

Project Definition

A representation of the adopted solution to the requirements of the project description in a form understood by the client and others, where the functional relationships are resolved and the structure, envelope and fabric are described in line drawings. Source: D1

Project Design Value Management

A structured, systematic and analytical process undertaken to ensure that the project design achieves value for money while meeting functional objectives. (Refer also: Value Management and Strategic Value Management.) Source: N1

Project Evaluation

A considered assessment of a project, that can be made before or after the fact or while the project is in progress. Source: T2

Project Initiation Process

The early phases of a project from the initial idea to the approval to procure, including delivery and review. The project initiation process involves strategic planning, project concept, option identification, valuation and definition of the preferred procurement strategy as well as delivery, performance review and feedback of information into the early planning phases. Source: D1

Project Manager

A professional or firm with the assigned responsibility for a project from inception to completion. Source: G3

A person who has the authority and the responsibility for the management of a project. It is used to refer to the person responsible for the project management contract and who manages a project through all stages from inception to completion. The same project manager is usually, but not always, responsible for all stages of the project. Refer also to: Superintendent's representative. Source: D1

Project Management Contract

A contract for the total management of a project by an independent person or organization who is responsible for all aspects of design, documentation, contractual arrangements, inspections, and certification of work for payment and of completion on behalf of the Principal. Source: G3

Project Operation

The phase of a project between practical completion and its eventual replacement. Source: N1

Project Option Evaluation

Testing the different service delivery or procurement strategies by quantitative methods (i.e. financial and economic analysis) and qualitative methods (i.e. level of consumer satisfaction). Source: D1

Project Replacement

The eventual replacement of a capital asset after it has reached the end of its useful life. Such replacement may result in no new capital work. Source: N1

Project Risk Management

A process of minimizing project and organizational risk by applying expert resources to assist in the identification and management of risk through project initiation, engagement of consultants, bid call, awarding of contracts and contract administration. Source: S2

A formal process of auditing projects at initiation, engagement of consultants, bid call, awarding the contract and contract administration to ensure that project and probity risks are identified and managed by the project manager. Source: D1

Project Steering Committee

A group, usually chaired by an accountable officer or senior delegate and comprising major stakeholders, that is established to control a project from inception to completion. Source: D1

Project Team

A group that takes responsibility for ensuring that the required work is undertaken in accordance with the requirements of the steering committee and the project description. Source: D1

Project Valuation

An estimate made of the market value of all asset classes - i.e. land, land and buildings, plant and equipment and infrastructure. Source: P1

Property Management

The management of a property on behalf of the owner. Source: N1