Records, Asset Management, and Budgeting
Core concepts
Asset management links inventory, condition, criticality, and lifecycle cost to prioritize work and spending. Know the difference between preventive, corrective, and reactive maintenance. Work order systems and CMMS track history. GIS maps assets and supports planning. Budgeting covers O&M vs. capital, and rate-setting funds replacement.
Records
Accurate as-builts, inspection records, maintenance logs, and test results support decisions and defend against liability. Data quality matters: consistent defect coding and asset IDs. Lifecycle cost includes installation, operation, maintenance, and replacement.
Traps
Do not confuse O&M budget (day-to-day) with capital budget (major replacement/expansion). Do not assume lowest first cost is best; lifecycle cost governs. Watch questions about reactive vs. preventive maintenance; preventive reduces emergencies and cost over time. Also know that good records support regulatory defense and rate justification.
Rule of thumb
Prioritize by risk = likelihood of failure x consequence of failure. Spend preventive dollars where risk is highest.
Worked example
Two pipes: one high-consequence trunk line with moderate condition, one low-consequence lateral in poor condition. Risk scoring may prioritize the trunk line because consequence is high, even though its condition score is better.