Challenges for Asset Management - Dr Penny Burns

Costing Challenges Valuation– Despite much attention, some basic issues still needresolution – e.g. not merely the cost but also the valueof community obligations, the extent to whichreplacement costs builds in inefficiencies, etc– Estimation of value from broad 1-5 condition scales isstill a hit and miss business Depreciation– We need depreciation measures that recognise the fasterdegradation that occurs when maintenance isinadequate