Road Asset Value Calculation Based on Asset Performance, Community Benefits and Technical Condition

Ján Mikolaj, Ľuboš Remek and Matúš Kozel
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Ján Mikolaj: Department of Construction Management, Faculty of Civil Engineering, University of Zilina, Univerzitna 8215/1, 01026 Žilina, Slovakia
Ľuboš Remek: Department of Construction Management, Faculty of Civil Engineering, University of Zilina, Univerzitna 8215/1, 01026 Žilina, Slovakia
Matúš Kozel: Department of Construction Management, Faculty of Civil Engineering, University of Zilina, Univerzitna 8215/1, 01026 Žilina, Slovakia

Sustainability, 2022, vol. 14, issue 7, 1-18

Abstract: The article presents a comprehensive asset management method. Here presented method aims to bridge the economic approach to asset management with the technical approach to road infrastructure life cycle, namely its resilience and performance. The presented asset value calculation methods are based both on socio-economic viewpoints on community benefits of an asset, as well as the technical aspect of the technical condition and residual life calculations of a road infrastructure. In contrast to common road asset management methods, asset value is not arbitrarily annually depreciated, instead, it is exactly calculated based on pavement performance models, pavement construction fatigue and paving material properties. Road asset value calculation is based on the asset performance and the technical condition of a pavement structure and other objects. Road asset performance is defined in terms of society and road user demands put on road category and its qualitative standard. Road asset technical condition is evaluated by the procurement cost calculation and condition deterioration. Value of condition deterioration is defined by residual life expectancy based on fatigue and construction reliability of the road infrastructure. The cross-asset allocation method is used for the creation of programs for claim and allocation of funding. The aim was to increase the credibility of the road administrators with the public as they present their decisions based on road asset management, and to increase the level of acceptance for practitioners.

Keywords: asset management; asset value; road network funding; residual service life; cross-asset allocation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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