How Important Capital Investment Planning is in Asset Management (Video Blog)

Capital investment planning is a very important area of infrastructure asset management practice, Ross begins in this video blog.

Ross talked about some capital investment planning tips in his previous video blog.

In this vlog, he discusses the importance of capital investment planning, his observations and its implications using the “Lifecycle Cost Profile” below.

Observations on the Lifecycle Cost Profile:

1. Planning, Design and Construction cost are a major component of asset Total Cost of Ownership (TCO)


2. Asset lifecycle costs – operations and maintenance are locked in at design/construction


3. High construction cost or shorter asset useful life due to poor design/construction can significantly increase the Total Cost of Ownership

Implications of the Observations:

1. The right planning, design and construction is very important to asset Total Cost of Ownership


2. The testing and acceptance of assets by authorities is an important quality control measure, that may on occasion be neglected


3. Acquiring well designed and well-built assets that have optimised lifecycle operations and maintenance costs is an important component of asset management

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