What is Building Asset Management?
By this definition, Asset Management is about –
- Managing physical assets
- Delivering value, including but not limited to cost reduction
- Optimally balancing cost and risk
- Managing inherent conflicts and trade-offs
- Balancing the short-term and the long-term
Building Asset Insight applies this definition of Asset Management to a specific asset type – buildings – enabling our clients to extract the most value from their building assets.
Successful Building Asset Management requires three things:
- An organization that thinks and acts cross-functionally,
- Technology that takes selected information from functional tools (e.g. CMMS, LCAM, BMS) and applies it to the value optimization problem through analytics, and
- Processes and metrics that capture the right information and reward the right behaviors.
The best definition of Asset Management comes from PAS 55, the British Standards Institution’s (BSI) Publicly Available Specification for the optimized management of physical assets. If defines Asset Management as –
“Systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan.”
PAS 55 goes on to state that –
“Delivering the best value for money in the management of physical assets . . . requires careful consideration of the tradeoffs between performance, cost, and risk over all stages of the assets’ life cycles. There are inherent conflicting factors to manage, such as short-term versus long-term benefits, expenditures versus performance levels, . . .or capital costs versus operating expenditures.”