The Baton Change: Transition from Capital Investment to Operaations

Week 7 Lecture on 6/9/16 by Joe Santangelo

Strategic Asset Management Overview

What is an asset?

An item of value. Value is measured as benefit divided by cost. Ideally, the greater this figure the higher the value of the asset.

Phases of strategic asset management:

  • Plan and design
    • strateic assest management plan
    • solution design
    • project design
  • Construction and commission
    • project design
    • project management
    • commission and handover
  • Maintain and Operate
    • Facilities management
    • Maintenance management
  • Decommission and disposal
    • upgrade vs. retirement
    • planned obselescence?
    • Invest in alternatives?

The assests performnce should increase after 12 – 24 months (defects liability period) as the building has been able to be fine tuned and maintained. The assests performance will then gradually decline with time. In this cycle, there is an optimun point of treatment, for an upgrade of facilities. As the building then begins to “fail”, we must consider its end of life options.

Focus Areas

  • Use of Enterprise Information Systems, BIM and GIS to improve the transition of information
    • BIM application:
  • Improved alignment of the stategic objectives with Senior Management
    • Design standards ownership and maintenance
    • The use of sustainability as a means to better achieve better integration
    • Organisaltional structure – Integration manager?
    • Here we also focus on Number 11:


  • Various contractual options that improve asset transition


Further Resources

Screen Shot 2016-06-04 at 7.34.58 PM


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