Understanding Infrastructure Asset Management

What is Infrastructure Asset Management?

This is of course a new phrase or term for me. I’ve heard of infrastructure and I’m sure it refers to something that has been built for general use or special use such as buildings, parks, bridges, roads, etc.

Of course, I also heard about ‘assets’. In accounting it is your business capital or something that is owned by value or that produces profit or can be used to meet debt for business.

Management, well, this is a process or strategy to direct, control or handle things or people.

When You Place Three Shared Terms, What Does it Mean?

In short, the meaning of infrastructure asset management refers to a set of strategies that are applied to extend the life of Public Infrastructure. It includes roads, bridges, water treatment facilities, and trains that are usually in the final stages of their lives. The focus is on maintenance and rehabilitation and replacement.

Asset management on the other hand is intended for preservation and expanding the life of infrastructure that has a direct effect on the quality of life of society and the economy. Special software is used to manage data and implement this strategy.

The use and implementation of infrastructure management is in the period of growth. It was only in 1984 that the term appeared and used by someone named Dr. Penny Burns. The first country to use short-term infrastructure assets is New Zealand. This year in 1996 with the Publication of the New Zealand Infrastructure Asset Management Manual.

So why is there a need for infrastructure asset management now?

Existing infrastructure such as parks, bridges, roads, electricity transmissions, most have been around for years. Some aged several years or are in the process of being built.

For aging and existing infrastructure, there are increasing challenges to extend their use or extend their services.

The current scene sees the growth of construction and industry companies, design companies, and professional bodies and licensing institutions responsible for overseeing and controlling special practices or professionals for the public interest. This is inevitable resulting in separation of functions and processes in the infrastructure system that must be united to start.

For example, design and construction are contracted separately from operation and maintenance. On the client side, one reason for this segmentation is to reduce risk and costs.

However, the need for more doubled or integrated approaches arose through the beginning of the infrastructure management project plan. This is in order to maintain public facilities effectively in terms of costs and benefits for the community.

Modern society depends on infrastructure such as roads, trains, water supply, parks, etc. Sometimes, infrastructure is accepted until it fails or loses optimal use. Given the state of aging infrastructure, it is necessary to use effective funds, more proactive infrastructure asset management must have its place.

To give you expert advice on infrastructure asset management and best practices, visit our website. We are an expert management consulting company that provides ideas, analysis, solutions for asset management, planning, implementation, process integration and reporting to government, public and utility clients.

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