Asset Management Manual
A guide for practitioners!

You are here

3.2.4 Making the case for investment through the financial plan

Financial plans are prepared to inform the planning and management of an organization’s maintenance responsibilities. Financial plans should also be used to make the case to senior leaders for investment in transportation infrastructure. In order to secure the necessary funding, it is important that a robust business case is made for the investment needs. The case should be supported by including the appropriate transportation infrastructure information described in this guide. In addition, it is suggested that the consequences of underfunding by, say, 10 %, 20 %, and 30 % should be presented in terms of the following:

  • Impact on the transportation network, evaluated in terms of traffic disruption, socioeconomic and environmental effects (Lepert 2009 and Weninger 2012), caused by possible restrictions on highway structures, and the potential political repercussions of this,
  • Impact on asset performance, evaluated in terms of the likely drop in performance values for condition and safety,
  • Economic impact, evaluated in terms of the increase in whole-life costs and vehicle operating costs.

This information helps the decision making process for allocating funds because it considerably strengthens the business case for investment in the maintenance of highway structures.

 

 

Reference sources

No reference sources found.