Date
Tuesday, July 21, 2026
Time
1:30 PM - 2:00 PM
Location Name
Room 8, Level 2
Name
Making the Case for Maintenance and Condition Assessment
Track
System Management
Description
This session covers the role of maintenance in infrastructure management. It offers guidance on when and how much to invest in condition assessment. It describes the critical role of maintenance in asset management and how to fund it. It illustrates the guideline of investing 2% of an asset’s initial cost in annual maintenance to reduce the lifecycle cost of infrastructure, optimizing sustainability. It identifies how to target maintenance and rehabilitation spending as percentages of Utility Plant in Service and the depreciation account. It presents data necessary to collect inventory, perform condition assessments, and consider failure consequences. It highlights the difference between private sector business and public sector utility management to make a strong rate case before the customer base, the board and elected officials.
Maintenance is the most difficult aspect of infrastructure operations. Asset management plans are necessary for public agencies to effectively maintain infrastructure. Maintenance costs less than replacement, but is more difficult to fund. This session instructs owners and operators how to fund maintenance within their budgets and make the case to their board.
Investing 2% of an infrastructure project’s initial cost in annual maintenance reduces the lifecycle cost of the asset. Utility managers may budget spending for maintenance, rehabilitation and replacement as percentages of the Utility Plant in Service (UPIS) value and the depreciation account.
An effective asset management plan must document the lifecycle management cost of assets. It is possible to use the Engineering News Record Construction Cost Index and spreadsheets to communicate infrastructure costs from past to present and future.
Looking at infrastructure management in terms of what we must do, what we ought to do and what we want to do puts funding priorities in perspective. Determining whether existing customers or future customers obtain the most benefit from a project can help decide how to fund it.
Condition assessment is a crucial component of asset management. Identifying maintenance, capital, rehabilitation and replacement needs is the challenge. It is important to know when--and how much--to invest in condition assessment based on an asset’s criticality to the system, the community or key customers. Answering a few questions may guide these decisions.
Level of service should be a function of the customer base’s willingness and ability to pay. Operational program budgets illustrate these factors.
Utility managers should educate customers, boards and other officials on the difference between private sector business management and utility management. Private sector business is labor intensive; utilities are capital intensive. The utility’s goal is not to maximize profit, but to sustainably maximize the financial, social and environmental value of infrastructure to the community.
Voters strongly support investments in infrastructure. Infrastructure investments generate jobs in the private sector and grow the economy. There are several references for utility managers to use that communicate these factors to local decision makers and customers.
Failure to invest in infrastructure leads to disruption of service, traffic congestion and the appearance of a poorly-run community. These consequences hinder economic development and sustainability of every community.
Speakers