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Capital Works Policy

Adopted by  Council on 7 February 2011

Policy Goals

This Capital Works Policy applies to requests for capital works and projects contained in capital works programs which constitute expenditure under the general categories of capital works (Council owned assets) and capital works (assets owned by others).

Requests for capital works will be reviewed, and capital works projects evaluated, prioritised and completed using effective processes and sound financial management practices giving due consideration to the Council's ongoing operational requirements and the organisation’s critical strategic initiatives. 

Policy Implementation

The Chief Executive Officer is to develop and from time to time review procedures that will give effect to this policy.

Requests for Projects

Requests for projects to be considered in capital works programs may be generated in any of the following ways.

  • From the community by either a resident or a community organisation.
  • By resolution of Council
  • From an individual Councillor
  • From a member of staff


Requests for projects to be considered in capital works programs are to be reviewed to establish whether the proposal is consistent with Council’s Strategy Plan, Council Plan and any similar relevant document; and whether it is Latrobe City's responsibility.

Evaluation and Prioritisation

For evaluation purposes, a feasibility that may include the preparation of concept plans or preliminary designs may be completed for each project that has not been rejected by review. An allocation of funds, sufficient for this purpose, is to be provided in Council's annual budget.

For preparation of the annual budget, evaluated projects are to be prioritised against criteria defined in procedures under this policy or by Council resolution.

Projects identified by asset management strategies and plans are to be prioritised and provided for in Council's annual budget.

Detailed designs and estimates are to be prepared for all prioritised projects as early as practicable.

Capital Expenditure Authorisation

Expenditure on current projects is to be authorised prior to the commitment of that expenditure. If the expenditure is to exceed the project budget allocation by 20% and by $20,000 or more, authorisation is to be by the Chief Executive Officer or other staff member delegated responsibility for that purpose by the Chief Executive Officer.

Project Delivery

Projects are to be effectively managed to ensure completion to a satisfactory standard within program time frames.

Projects are to be managed in accordance with contract processes and project supervision processes contained in procedures under other policies.

The details of practical and final completion of projects are to be promptly documented in accordance with procedures under this policy, and in order to properly transfer completed projects out of works in progress to the asset register.


Capital works (Council Owned assets)

  • Purchase or construction of new assets.
  • The capital renewal of existing assets which increases the service potential or extends the life of an asset.
  • Capital expansion which extends the standard of an existing asset to provide a higher level of service.

Capital Works (assets owned by others)

  • Contributions to other bodies, public or private, towards their capital projects where those projects provide benefits to the community that would otherwise be provided directly by Council.

This policy has been reviewed after giving proper consideration to all the rights contained within the Charter of Human Rights and Responsibilities Act 2006; and any reasonable limitation to human rights can be demonstrably justified.

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