Skip to content

A worked example of the method

One building, followed through every step of the asset lifecycle method: what each step produced, at the level where it belongs, and the entries recorded for it in the method’s records.

Every value here is invented for the example and deliberately ordinary; none comes from a real programme. Where an entry shows what the method requires or reasons, it is the method’s own statement, with its basis, not a new one.

Four levels of one asset

Each step’s entry sits at the level where that information belongs. The package is a contract, not a part of the building, so it sits beside the hierarchy rather than inside it.

Parent asset

A district office building

Fourteen floors for about 1,800 staff, owned and occupied by the organisation. The need, the case, sanction, the delivery strategy, the operating concept, benefits and the return of evidence belong here.

Need and outcome

Outcome stated Illustrative
Office space for 1,800 staff, consolidated from three leased buildings, with the three leases surrendered by month 48.
Measure and owner Illustrative
Staff accommodated and lease cost avoided, owned by the director of corporate services once the project team disbands.

What the method says at this step

Write the outcome in terms that can be measured after handover, and name the role that will own it once the delivery organisation disbands.

The step in the method

Options and business case

Options compared Illustrative
Renew two leases and do the minimum; refurbish one leased building; build on land the organisation already owns.
Whole-life cost of the preferred option Illustrative
Construction 410m, and 30 years of operation, maintenance and renewal 265m, each shown as a range rather than a single figure.
Operating cost of the central plant Illustrative
1.9m a year, estimated by the project development team.

What the method says at this step

Record the decision criteria and who is entitled to apply them; estimate whole-life cost including operation, maintenance and decommissioning; plan how the outcome will be evaluated.

The step in the method

Delivery and contracting strategy

Delivery and contracting model Illustrative
A design-and-build main contract. The main contractor lets the chilled-water plant as mechanical subcontract M3, and the plant is Section 2 of the main contract.
Operating concept Illustrative
The organisation’s facilities team runs the building; maintenance of the chilled-water plant is let by that team as a term contract after the defects period.
Obligations allocated Illustrative
Training four plant operators and two years of spares: the main contractor, through M3. Asset data for the maintenance system: the main contractor, to the organisation’s template.

What the method says at this step

Record why the chosen delivery and contracting model fits the sanctioned case, and allocate design, testing, commissioning, training, spares, warranties and information to named parties.

Entries in the records OB-07 · The step in the method

Sanction and the authority to stop

Decision Illustrative
Sanctioned at month 9, with two conditions.
Authority Illustrative
The investment committee, under the organisation’s delegation schedule.

What the method says at this step

Decide against the recorded criteria, and record the decision, its conditions and any dissent.

Entries in the records DC-01; AV-01 · The step in the method

Benefits realisation

Measured at month 54 Illustrative
1,740 staff accommodated. Two of the three leases surrendered; the third runs to month 60, its first break date.
Measured by Illustrative
Corporate services, against the outcome statement of month 2.

What the method says at this step

Measure the outcome against the statement, and evaluate the difference rather than only report it.

The step in the method

Evidence returned to the next investment decision

Evidence returned Illustrative
The plant’s measured electricity use, sent to the organisation’s estimating data for central plant and used in the case for a second building.

What the method says at this step

Send each item of evidence to a named destination, and record that it arrived.

Entries in the records FB-03 · The step in the method

System

The chilled-water plant

Four water-cooled chillers with their pumps, cooling towers and controls. The design basis, commissioning, operational acceptance and the obligations of operating it belong here.

Design basis control and design acceptance

Design basis Illustrative
Four chillers, any three of which carry the peak load; access on every chiller for withdrawing condenser tubes.
Maintainability examined Illustrative
With the facilities team at month 12. One change recorded and approved: a lifting beam over the chillers.

What the method says at this step

Trace requirements into the design basis; record whether constructability, maintainability, operability and testability were examined, against what criteria, by which functions, and what followed; set test and commissioning requirements before construction.

The step in the method

Testing and commissioning

Integrated plant test Illustrative
Month 29, with two of the future operators present, against the part-load criterion set in the tender.
Deferred Illustrative
The test at peak load waits for the first cooling season and is listed as outstanding work with an owner and a date.

What the method says at this step

A deferred test is listed as outstanding work with a date and an owner.

Entries in the records DE-118 · The step in the method

Knowledge capture

Recorded before the design team left Illustrative
Why the chillers are sequenced on return-water temperature, and the accepted compromise of one condenser-water header shared by all four.

What the method says at this step

Record the reasons and the accepted compromises against the assets they affect, before the delivery team disbands.

The step in the method

Operational acceptance

Accepted for operation Illustrative
Month 32, a month after taking over, by the head of facilities on the organisation’s own criteria, with one condition.

What the method says at this step

Operational acceptance is the organisation’s own decision under its own arrangements; none of the contract forms, standards or regulations the method relies on defines it as an event.

Entries in the records DC-07; AV-02 · The step in the method

Operation and maintenance under established requirements

Maintenance regime Illustrative
From the accepted operation and maintenance manual, with each continuing obligation carried in the operating-obligation register.

What the method says at this step

Execute the maintenance regime, record what is done and found, and keep the register in step with the asset.

Entries in the records OB-07; OB-12 · The step in the method

Operating performance and cost evidence

Electricity use, years 2 and 3 Illustrative
0.71 kW per tonne of cooling, against 0.62 assumed in the case, recorded with its cause and a gap in the metering.

What the method says at this step

Compare actual performance and cost with the estimates and service targets, and record the differences and their causes where known.

Entries in the records FB-03 · The step in the method

Package

Mechanical subcontract M3

The subcontract through which the main contractor built the plant, which is Section 2 of the main contract. Procurement requirements, deliverables, taking over and closeout belong here.

Operating and information requirements into tender

In the tender for M3 Illustrative
Operating and maintenance requirements for the plant, a performance test at part load, training for four operators, two years of spares, and asset data to the organisation’s template.
Receivers named Illustrative
The facilities team for manuals, training and spares; the information owner for asset data.

What the method says at this step

Write operating, maintenance, information, testing and commissioning requirements and the criteria for accepting each deliverable, and name the receiving party and receiving system for each.

Entries in the records DE-112; OB-07 · The step in the method

Commitment: award and release of the baseline

Award Illustrative
M3 let by the main contractor at month 14, after the organisation’s no-objection to the subcontractor, which the main contract requires.
Baseline Illustrative
Plant ready for integrated testing at month 28.

What the method says at this step

Confirm the award against the stated criteria, agree acceptance criteria, and approve and record the baseline.

The step in the method

Controlled baseline, change, deviation and configuration

A change Illustrative
At month 19 the chiller controls are changed to the manufacturer’s later model. Before approval the change is assessed for spares, operator training and the asset data, as well as cost and time.

What the method says at this step

Assess changes before they are made, record their effect on operation as well as cost and time, and keep the design record in step with what is built.

The step in the method

Application for taking over

Application Illustrative
The main contractor applies for taking over of Section 2 at month 30, offering the operation and maintenance manual and the test records with it.

What the method says at this step

Record the application, its date and the deliverables offered with it against the deliverable register.

Entries in the records DE-112 · The step in the method

Certification and issue of the taking-over certificate

Taken over Illustrative
Section 2 taken over at month 31 under the main contract, with 14 items of outstanding work and defects listed on the certificate.

What the method says at this step

Certify, or refuse with reasons, under the contract; list what is outstanding on the certificate.

The step in the method

Transfer of care of the works

Custodian Illustrative
The plant room supervisor in the facilities team, from the date the main contract sets for care of Section 2 to pass; insurance confirmed from the same date.

What the method says at this step

Name the custodian, confirm insurance and security cover from the date, and record access the contractor keeps for outstanding work.

The step in the method

Outstanding work and defects after taking over

One item Illustrative
Two condenser-water pump seals leaking at taking over: remedied at month 33, and the facilities team confirmed the repair in service.

What the method says at this step

Track each item to closure, and record the operator’s confirmation that it was closed in service.

The step in the method

Asset-information acceptance

Asset data Illustrative
214 items of plant traced row by row and loaded into the maintenance system; 9 rejected for missing serial numbers and resubmitted.

What the method says at this step

Check each deliverable against its criteria; trace records to the assets row by row; load accepted information into the receiving systems.

Entries in the records DE-112; FR-02 · The step in the method

Contract closeout: final certification and release of security

Final certificate Illustrative
Issued for the main contract at month 55, after the defects period. One obligation was still unfulfilled at that date: the refrigerant leak-test records for the second year. It is listed, and part of the security is retained with that reason recorded.

What the method says at this step

Obligations still unfulfilled at final certification are listed, since liability for them survives it.

The step in the method

Component

Chiller 04

One of the four chillers. Its identifier, test record, warranty, register entry, components, service life, replacement and disposal belong here.

Chiller 04 is the same machine as on One asset, four records, which shows it through the four records that describe it at handover. One asset, four records

Entry in the technical asset register

Entry Illustrative
CH-04, under the chilled-water plant, with its serial number, its site test record and fixed asset 0041-002, the number finance uses for it.
Warranty Illustrative
The manufacturer’s equipment warranty runs 24 months from energisation, 11 weeks before taking over. The contractual defects period runs from taking over of Section 2 and is a separate obligation.

What the method says at this step

Enter each asset, and trace it to the project record and to the financial record in both directions.

Entries in the records DE-118 · The step in the method

Financial recognition and measurement

Cost Illustrative
Held in work in progress against package M3, certified at 14.2m in total; the four chillers’ share is identified from the subcontract’s schedule of rates, and the basis of that split is recorded.

What the method says at this step

Classify costs as eligible or not, and hold eligible costs as work in progress against identifiable items.

The step in the method

Cessation of capitalisation and transfer from work in progress

Available-for-use date Illustrative
Month 29, after the integrated plant test, two months before taking over of Section 2; the transfer from work in progress is recorded at that date.
Components Illustrative
Chiller 04 is capitalised as two components: the machine, and its controls.

What the method says at this step

Nothing in the capability test refers to a certificate, so it can be met before, on or after taking over.

Reasoned from IPSAS 45, property, plant and equipment, paragraph 17

The step in the method

Start of depreciation

Useful lives Illustrative
The machine 20 years, the controls 10 years, each with the basis for the life recorded, from month 29, when the chiller was available for use.

What the method says at this step

Under IPSAS 45, each part with a cost significant in relation to the total cost of the item is depreciated separately.

Required IPSAS 45, property, plant and equipment, paragraph 41Binding only where it is adopted or contracted

Entries in the records FB-05 · The step in the method

Renewal or replacement decision

Operating year 11 Illustrative
The controls fail and are replaced. The replacement is recorded as driven by failure rather than by plan, and the carrying amount of the old controls is derecognised.

What the method says at this step

Under IPSAS 45, when a part is replaced and the replacement meets the recognition criteria, the carrying amount of the replaced part is derecognised.

Required IPSAS 45, property, plant and equipment, paragraph AG14Binding only where it is adopted or contracted

Entries in the records FB-05 · The step in the method

Disposal and derecognition

Operating year 24 Illustrative
Chiller 04 decommissioned and removed with its refrigerant recovered; the register entry closed and the component derecognised, each recorded as its own event.

What the method says at this step

Decommission, remove the asset from the technical register and derecognise it in the accounts, each on its own record.

Entries in the records OB-12 · The step in the method

The records, filled in

The six records of the Lifecycle Control Pack, with 11 entries filled in. They refer to one another by identifier only, as the pack requires: the obligation OB-07 points to the deliverable DE-112, and the feedback entry FB-03 points to the business case that used it.

Lifecycle decision and conditions record

DC-01

Lifecycle step
Sanction and the authority to stop
Decision requested
Sanction construction of the building on the business case of month 7.
Decision taken, in the organisation’s words
Sanctioned, with two conditions.
Authority exercised, and by which family
Approval, by the gate or approving authority.
Delegation reference
Delegation schedule, item 4
Conditions attached
C1: the facilities team tests the operating cost estimate for the central plant before the tender for M3 is issued. C2: the outcome statement names its owner after handover.
Owner of each condition
C1: head of facilities. C2: director of corporate services.
Date each condition must be met
C1: month 12. C2: month 12.
Recorded dissent
None recorded.

DC-07

Lifecycle step
Operational acceptance
Decision requested
Accept the chilled-water plant for operation.
Decision taken, in the organisation’s words
Accepted at month 32, with one condition.
Authority exercised, and by which family
Acceptance, by the operator.
Delegation reference
Facilities charter, item 2
Conditions attached
Two further plant technicians trained on the new controls.
Owner of each condition
Plant room supervisor
Date each condition must be met
Month 35

The record’s fields in the method

Authority view

AV-01

Lifecycle step
Sanction and the authority to stop
Function family
Gate or approving authority
Action
approves
Capacity
progression authority
Basis of the assignment
The organisation’s delegation
Delegation reference
Delegation schedule, item 4
Who holds it in this organisation
Investment committee

AV-02

Lifecycle step
Operational acceptance
Function family
Operator
Action
accepts
Capacity
progression authority
Basis of the assignment
The organisation’s delegation
Delegation reference
Facilities charter, item 2
Who holds it in this organisation
Head of facilities

The record’s fields in the method

Deliverable and evidence register

DE-112

Identifier
DE-112
Deliverable
Operation and maintenance manual, chilled-water plant
Where it was required
M3 specification, section 7.4
Lifecycle step
Application for taking over
Prepared by
Subcontractor M3, through the main contractor
Accepted by
Facilities team
Receiving system
Maintenance management system
Acceptance criteria, as set before tender
As issued with the tender: one manual for the system, every item cross-referenced to its asset tag.
Acceptance decision, as the organisation recorded it
Accepted at month 31 on condition that the spare parts list for CH-01 to CH-04 is resubmitted with part numbers.

DE-118

Identifier
DE-118
Deliverable
Site performance test record, Chiller 04
Where it was required
M3 specification, section 8.2
Lifecycle step
Testing and commissioning
Prepared by
Subcontractor M3
Verified by
The main contractor’s commissioning manager
Accepted by
Facilities team
Receiving system
Maintenance management system, against CH-04
Acceptance decision, as the organisation recorded it
Accepted at month 29.

The record’s fields in the method

Operating-obligation register

OB-07

Identifier
OB-07
Obligation
Quarterly inspection of condenser tubes and an annual eddy-current test, on all four chillers.
Asset, system or component
Chilled-water plant, CH-01 to CH-04
Step that created it
Operating and information requirements into tender
What sets it, with its clause
M3 specification, section 7.9
Carried by
The main contractor until taking over of Section 2
Allocation
allocated to a named party
Inherited in operation by
Facilities team
Receiving system
Maintenance management system
Event that starts the obligation
Taking over of Section 2, as the main contract names it
When it ends, or how often it recurs
The tube inspection recurs quarterly and the eddy-current test annually throughout the chillers’ operating life
Related entry in another record
DE-112

OB-12

Identifier
OB-12
Obligation
Recover the refrigerant and remove each chiller at the end of its life.
Asset, system or component
CH-01 to CH-04
Step that created it
Financial recognition and measurement
What sets it, with its clause
The building’s environmental permit, condition 11
Carried by
The organisation
Allocation
allocated to a named party
Inherited in operation by
Facilities team
Event that starts the obligation
Recognition of the plant in the accounts
When it ends, or how often it recurs
On removal of the last chiller
Discharged on
For CH-04: operating year 24

The record’s fields in the method

Outcome-feedback record

FB-03

Identifier
FB-03
Step the evidence came from
Operating performance and cost evidence
Asset, system or component
Chilled-water plant
What was assumed, and where
Business case, appendix 3: 0.62 kW per tonne of cooling, averaged over a year.
What operation showed
0.71 kW per tonne in years 2 and 3, from metered data, measured by the facilities team.
Cause of any difference, where known
Two chillers ran at low load in the cooler months because the sequencing settings were left at their commissioning values.
What limits the comparison
One meter was out of service for 7 weeks in year 2.
Sent to
Estimating data for central plant
Owner of that destination
Head of cost planning
Sent on
Operating year 4
Arrival recorded on
Operating year 4
Used in
Business case for a second district building, appendix 3

FB-05

Identifier
FB-05
Step the evidence came from
Renewal or replacement decision
Asset, system or component
CH-04, controls
What was assumed, and where
Depreciation schedule: a useful life of 10 years for the controls.
What operation showed
Failed and replaced in operating year 11.
What limits the comparison
One unit; the other three chillers’ controls were still in service.
Sent to
Useful-life assumptions for plant controls
Owner of that destination
Financial controller
Sent on
Operating year 11
Arrival recorded on
Operating year 11
Reason given for not using it
Not yet used: the assumption is reviewed at the next annual reporting date, with the other three units’ condition.

The record’s fields in the method

Finding, response and closure record

FR-02

Identifier
FR-02
Record type
limitation
Step, domain and test examined
Asset-information acceptance; the domain on information transfer
Limitations on the evidence
The checklist used to accept the operation and maintenance manual was not kept, so the review relied on the acceptance decision recorded against DE-112.
View of the responsible party
The facilities team agrees the checklist was not kept.
Management response
Acceptance checklists will be kept with the corresponding entry in the deliverable and evidence register from now on.
Action owner
Information owner
Due date
Operating year 2
Closure evidence, dated
Checklists filed with two later acceptances, seen in operating year 2.
Closed on
Operating year 2

The record’s fields in the method

Sources

Read the sources

Back to the asset lifecycle method