Cost

As part of a complete asset inventory and to support effective management decisions about assets, such as when to continue to repair an asset versus when to replace an asset, utility staff need to understand the estimated replacement cost of each asset. Other chapters in this guide detail how to estimate the cost of an asset over the course of its life, but for the purposes of developing an asset inventory, consider included an estimated total expense for replacement that includes information such as: 

• • • initial costs (if known) 
    • operation and maintenance costs 
    • repair costs 
    • rehabilitation costs 

Additional costs such as fines or legal fees associated with an asset failure can be included if they are known and the inventory program provides space for it; however, it is not necessary for a complete asset inventory.  

If your utility is unsure of the costs of assets, you can explore other communities that have completed similar projects, review industry-standard cost guides, or use the initial cost of the asset and forecast its cost using inflation calculators.