With aging infrastructure and rising costs of materials and labour across Australia, asset owners are under increasing pressure to optimise maintenance and upgrade budgets. Yet there are opportunities to significantly reduce spending if you take a strategic approach to asset management.

At WPC Consulting, our experts have helped numerous clients in Australia achieve savings of 15-30% on their annual asset portfolios, which often valued in the tens or hundreds of millions. Here are three strategies we’ve seen work for commercial property owners, local councils, utilities and infrastructure providers nationwide:

Right-size regulatory compliance programs:

Many asset owners overspend on regulatory compliance due non-value adding tasks or misinterpretation of codes. By conducting independent compliance audits and working with regulators where needed, we have streamlined programs and deferred lower-risk upgrades to free up ~10% of compliance budgets annually.

Leverage condition assessment technology:

Using drones, automated data collection, and predictive analytics software developed for the Australian climate and construction standards, we can more accurately diagnose asset health issues. This allows “run to failure” strategies for low-risk assets and targeted spending increases only where warranted - lowering 5-year forecast renewal costs by 20% on average.

Restructure recurring service contracts:

Facilities management and other “cost-plus” contracts in Australia are ripe for optimisation. By establishing performance KPIs focused on availability, customer satisfaction and cost management, we have renegotiated deals with 7-15% discounts. Ongoing digital auditing ensures contractors continue finding efficiencies rather than billing for marginal value work.

Does your infrastructure portfolio need an overhaul to better manage costs in the current economic climate? Contact WPC Consulting to arrange an obligation-free portfolio review. Our experienced advisory team can identify the largest optimisation opportunities and develop a tailored roadmap for lowering your asset management spend.