The theoretical asset life is described as being comprised of 4 phases:
- Acquisition – where an asset is acquired through construction, purchase, gift or lease / loan. It is significant in that this is the time when the asset becomes available to provide service. Investment in acquisition tends to be large in the case of construction or purchase.
- Operations – is where an asset is providing service in accordance with the requirements of the organisation. Costs are recurrent and required to sustain the property and subsequently provision of service.
- Refurbishment – is like the acquisition phase in requires capital investment typically to address change in relation to function, compliance or technology.
- Disposal – is the end of like when the organisation no longer requires the asset or may have greater use for the capital it ties up.
Asset management is about optimizing the benefit over the whole-of-life. Outgoing costs need for property need to generate greater revenues for an investment to be valuable. This info-graphic looks at certain strategies to help achieve this value over the whole life of the property.