The evaluation of existing assets determines whether their performance is adequate to support the selected service delivery strategy.

Program evaluations are to include the evaluation of asset performance. Asset performance is to be reviewed regularly against best practice benchmarks to identify assets that are under-performing, or costly to own or operate.

It is also possible to over-invest in assets. The evaluation should reveal assets that provide more than their required capacity, or are surplus to requirements.

Assets that have been inadequately maintained may pose potential safety or health risks, disrupt essential services, or incur unforeseen expenditures for the correction of defects.

Evaluating Asset Performance

All assets currently being used to deliver the service under consideration need to be identified and registered. How effectively these assets support service requirements also has to be determined. As part of this process, the following aspects need to be assessed:

Physical Condition
Is the asset adequately maintained? Is there a maintenance backlog that requires attention? Are major replacements or refurbishments likely to be required during the planning period?

Utilisation
How intensively is the asset used? Could it be used more productively by extending its working hours, or by accommodating additional functions?

Functionality
How well suited is the asset to the activities and functions it supports?

Financial performance
Are the asset's operating costs similar to those for other comparable assets? (Use benchmarking to establish this wherever possible.) Are the energy, cleaning and maintenance costs reasonable? Are user charges being made, and how do they relate to the total operating costs of the asset (including the cost of capital)?