BOX 29: Elements of Annual Maintenance Budgets I.

Planned Budgets:
These allocate funds for anticipated maintenance costs, which can be derived from the following main areas of expenditure (see Figure 21 for strategies on how to calculate your requirements): a) spare parts which are required regularly, determined from previous experience and any planned remedial work b) spare parts which are required according to planned preventive maintenance (PPM) schedules and timetables c) maintenance materials which are required regularly, determined by previous experience and any planned remedial work d) maintenance materials which are required according to PPM schedules and timetables e) service contracts required for any planned remedial work f) service contracts for breakdowns which are likely to be required, determined from previous experience g) service contracts required for PPM of complex equipment h) calibration of workshop test equipment i) replacement of tools at the end of their life j) office material k) any increased maintenance requirements brought about by planned new equipment purchases under the capital expenditure budget. Note: there will be other elements which may fall under other budgets. These could include: other administrative costs which are included in budgets held by other departments (Section 6.3)

major repair works in some cases the planned rehabilitation of equipment which requires major work with the purchase of substantial amounts of materials or contracts. The large sums of money required for such projects may have to fall under the capital budget (Section 5.5) pre-installation work (such as site-preparation). This often falls under capital funds as it is linked to specific purchases (Section 5.3).

II. Contingency Budgets:

In addition to planned budgets, contingency budgets also exist. These allocate funds for unplanned maintenance work, such as emergencies, or sudden breakdowns which could not be predicted.