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Notes about Informing Governing Bodies of Infrastructure Management Needs

The following observations emerged from the Participant Team that may provide additional insights into building an organizational strategy for a sustained asset management effort:
  • In the past, infrastructure investment programs were determined primarily based on the age of an organization’s assets. Now, asset function, condition, criticality, and operating environment must be considered. Minimizing asset life cycle costs results in savings that can be reinvested as renewal, replacement and new construction. Reallocation of investment is the primary saving achieved in new asset management implementations;
  • Describe the state of current assets, and replacement and/or renewal costs in order to communicate the full financial and service level implications of ageing infrastructure and environmental pressures;
  • Asset management can help make decisions to improve the budget by promoting an understanding of multiple funding scenarios and possibilities;
  • Agencies can no longer afford to “repair by replacement”. Infrastructure needs to be maintained with the right level of investment to sustain service levels and bond ratings. Asset management processes decide when and which assets to repair, replace or rehabilitate;
  • Communities can leverage “Whole of Government” savings by adopting best asset management practices in all sectors that manage physical assets;
  • Asset management is not rocket science and simply makes good business sense;
  • Few things in a community are as important to long term well being as sustained performance of infrastructure; so it is incumbent upon asset managers to demonstrate a real business case for re-investment in infrastructure;
  • What worked 30 years ago doesn’t work today because the challenges are different. The water industry is realizing that planning for infrastructure is not just about design and construction - it’s about managing the life cycle of assets from creation to disposal;
  • Maximize the use of existing assets;
  • Virtually all agencies are facing aging infrastructure with limited funding – so there is a need to carefully plan; and 
  • Indicate the risk of not doing asset management by highlighting business risk exposure, political risk, etc.

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