Construction companies must assess the economic life of assets

  • 28 Oct 2014

Broken machinery and old software systems create unwanted problems for companies, but how can you ensure that you do not spend money unnecessarily on new equipment and repair or replacement services?

Companies should assess the economic life of their assets

Make an informed decision

A decision needs to be made on whether to take no action, replace or repair equipment. Storing up to date data surrounding performance and costs will help you answer questions such as;
• Costs and expenditure required should equipment break down
• Replacement vs repair costs
• How much to spend on repair and maintenance services
• How much will repair cost over the remaining lifespan of the equipment
• How does the price compare with replacement/breakdown costs

Is repair a cheaper option?

Repairing equipment can sometimes be cheaper than replacing it. Staff can continue to work on a system that they are familiar with without needing to undergo training. However, older machines will require more maintenance over a number of years and some parts may be difficult to source if anything goes wrong.

New equipment reduces operational costs

New equipment will run quicker and will require less maintenance. The downside is that it may take time to get used to a new system, training costs will cause delays and finance costs for the new item will need to be covered.

Find a suitable software system

A good software system helps staff keep on top of construction asset management and make the right decisions. Overall, companies need to take in the following factors before making an informed decision:
• Breakdowns are costly to a business
• Assessing the economic life of equipment is a financially sound decision
• Companies should make informed decisions on repairing and replacing
• No-matter how successful a company is, not looking after equipment and systems is commercially unsound

Leave a Reply

Latest news


BMI work sees seven eco-friendly roofs improve health in Hattersley

As part of its own contribution to improving air quality, NHS Property Services chose to replace the roof of the Hattersley Health Centre in Hyde, Greater Manchester, with the help of BMI.

Posted in Articles, Building Industry News, Building Products & Structures, Case Studies, Health & Safety, Posts, Restoration & Refurbishment, Retrofit & Renovation, Roofs, Sustainability & Energy Efficiency


ASSA ABLOY Project Specification Group stresses importance of safety over cost this Fire Door Safety Week

Project Specification Group, a unit of ASSA ABLOY Opening Solutions UK & Ireland, says the drive to reduce cost must not be allowed to compromise the safety performance of a building, ahead of Fire Door Safety Week.

Posted in Access Control & Door Entry Systems, Articles, Building Industry Events, Building Industry News, Building Products & Structures, Building Regulations & Accreditations, Doors, Exhibitions and Conferences, Health & Safety, Security and Fire Protection, Seminars

Gilberts Blackpool

A breath of fresh air in new airport terminal with Gilberts

How do you ensure a fresh, comfortable environment in an internal space the size of 11 football pitches, which can accommodate the transfer of up to 55 million people a year? Gilberts Blackpool have the answer…

Posted in Air Conditioning, Articles, Building Industry News, Building Services, Case Studies, Heating, Ventilation and Air Conditioning - HVAC, Restoration & Refurbishment, Retrofit & Renovation