February 23, 2023

How To Make An Asset Condition Survey Pay For Itself

How To Make An Asset Condition Survey Pay For Itself

During all stages of an asset condition survey project, from specification and procurement through to delivery and reporting, it is vital to be remain focussed on how to return value from the exercise. It is possible to demonstrate a significant improvement on the bottom line and a high return on investment through addressing the topics below...

How To Make An Asset Condition Survey Pay For Itself

As an estates team

·        Refine the maintenance hours

After a survey, all assets are properly identified with their maintenance requirements, and a business-focussed maintenance plan can be implemented. This can mean removing planned maintenance hours in areas appropriate for the business. Alternatively, condition-focussed maintenance will remove hours from plant in good condition. This will return a cost saving to the organisation or provide the opportunity to use the time and costs in other ways.

·        Reduce reactive unplanned spend

Often smaller unplanned costs can be more challenging to manage than large costs which are accounted for in budget. Unplanned costs from reactive breakdown can be mitigated by reviewing condition assessments on important assets and refurbishing or upgrading the system or implementing further preventative maintenance.

·        Inform the estate management strategy

On mixed or large estates, some buildings or sub-systems will have more costs associated. This may be because of higher planned maintenance requirements or reactive elements resulting from condition and age. Furthermore, some areas of an estate will show a higher backlog of lifecycle spend than others. A full asset condition report will provide insight (and evidence) of a building having higher associated costs and as such, fully informs the organisation’s medium- and long-term estate planning.

As a services provider

·        Mitigate comprehensive cost elements

Service contracts often include a comprehensive cost which the provider must pay on attendance to reactive works. Given this cost can be incurred at any time, and on repeatedly, it is vital that risk is actively mitigated using the asset condition data. Condition reports can be used to evidence assets being beyond typical life and/or in poor condition when assessed against industry standards. This should form a basis of agreement with a client to either act on improving the asset risk or otherwise remove them from contract comprehensive cost.

·        Maximise the commercial entitlement

An accurate commercial baseline is vital for any service provider to ensure that all their planned costs are represented in the contract and recovered. In FM hard services maintenance, PPM elements are central, and are driven from the asset register. Therefore, a complete asset register from a recent and high-integrity data is the only way to guarantee all assets and costs are fully accounted for.

·        Generate additional works

Lifecycle, replacement, and upgrade works are vital services provided to a client alongside maintenance activities. This demonstrates a full breadth of service offering and generates more revenue. An asset condition survey will demonstrate prioritised areas for capital spending and gives the service provider an opportunity to present a delivery solution.

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