Identify the Asset Value Driver discusses how the different applications of asset value discussed in Chapter 2 may impact the asset value calculation, and provides guidance in establishing the basic motivation for the calculation to support decisions concerning the details of the calculations in later steps.
Calculating asset value requires data on the asset inventory, on asset age or condition, and on asset treatments. The availability of asset data, or lack of it, may impact what approach an agency uses for calculating asset value. Also, it may impact what assets are included in the calculation and the level of detail at which calculations are performed.
Collecting and maintaining quality asset data can be a significant investment in and of itself. If needed data are unavailable, an agency may be able to expend additional resources to collect additional data and/or improve data quality. Thus, questions about data availability can become questions about resources: are the resources available to collect the desired data? This section discusses what data are needed for calculating asset value and approaches for assessing asset data.
After establishing the motivation for calculating asset value and reviewing available data, the next step is to identify which assets will be included in the valuation calculation through establishing an asset hierarchy. An asset hierarchy is a framework for organizing a set of assets. It specifies asset classes and sub-classes, as well as any parent-child relationships between different types of assets.
This section provides guidance in determining the assets to be included in the value calculation. It discusses common transportation asset classes and key issues regarding calculation of asset value for each.
In the context of this document, componentization is defined as the process of delineating parts of an asset – components – for which the asset value calculation is performed separately. Defining asset components may be necessary to obtain an accurate calculation of asset value, depending on the nature of the assets being valued and the intended application of the asset value calculation. The following subsections discuss the reasons for defining asset components when calculating asset value, specific criteria for when to componentize, and asset classes where componentization may be considered.