A description is provided of the procedure followed in the gravel road management system (GRMS) of the Provincial Administration: Western Cape (PAWC) for determining scheduled maintenance priorities and upgrade to paved standard priorities for gravel roads. An algorithm was developed that takes account of a number of factors to determine the costs and benefits of PAWC's two maintenance strategies. Cost and benefit streams are further used in the calculation of the internal rate of return (IRR) for the different maintenance strategies. Prioritization in the GRMS is based on the calculated IRR, and the priority lists are further refined through a consultative process involving maintenance personnel, the community, and head-office decision makers. As part of the implementation of the algorithm, Highway Development and Management System version 4 (HDM-4) equations for the calculation of vehicle-operating cost (VOC) were simplified for application in the southern African context. Results are presented of a comparison between the output of the simplified HDM-4 equations with the output of HDM-4. Conclusions reached show that implementing the procedure described had a number of positive consequences. They include that the prioritization of projects is based on sound principles that result in the effective and responsible use of available funds. It was also concluded that the simplified HDM-4 VOC calculation results compare well with HDM-4 results.