Treatment of Maintenance
Maintenance is an often overlooked aspect of appraisal. The effective treatment of maintenance within an appraisal is, however, fundamental to informing the decision regarding the optimum investment strategy. This is because the nature of the maint...
| Main Authors: | , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2005/01/6379269/treatment-maintenance http://hdl.handle.net/10986/11802 |
| Summary: | Maintenance is an often overlooked
aspect of appraisal. The effective treatment of maintenance
within an appraisal is, however, fundamental to informing
the decision regarding the optimum investment strategy. This
is because the nature of the maintenance strategy can have
direct implications on operating costs and other benefits
(e.g. travel time savings). As such the impact of
maintenance within an appraisal extends far beyond a simple
consideration of its financial cost. The first Section of
this Note introduces the importance the correct treatment of
maintenance has with respect to an economic appraisal.
Following Sections present the primary components of
maintenance costs, and introduce the notion of whole life
costing and the fact that there is a risk that maintenance
may not occur. Next, the Note discusses the issues
associated with deriving future maintenance costs, and
further discuss the need for inclusion within the appraisal
of, first, delays to transport users during maintenance
works, and second, of the amount of induced and re-assigned
traffic. The final Section presents a summary of the key
points that should be borne in mind with respect to the
treatment of maintenance within an economic appraisal. |
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