Financial Strategy - Treatment Unit Cost
Objective: Learn what a Treatment Unit Cost is and how to use it in Brightly Predictor.
Treatment Unit Cost is the 'treatment cost per unit network measure' for each capital treatment that assets are likely to undergo throughout the asset life cycle.
If the Network Measure is in Area, for assets such as roads and pathways, then the unit cost field would be populated with an appropriate cost, such as square feet rates. On the other hand, if the Network Measure is in Length, then the unit cost field could be populated with lineal feet rates.
Predictor uses these rates to distribute budgets currently available for capital works among assets to determine future funding requirements or to find out the optimum budget to maintain the asset portfolio at a desired level. Users can define the Treatment Unit Cost from their knowledge and experience.
Click on the 'Treatment Unit Cost' tab on the sidebar to edit the treatment costs under the 'Financial Strategy' section of the 'Model' tab.
- Unit Costs ($): Click on this to fill in the cost of the selected treatment, as measured per unit network measure.
- Apply rate: Apply rate refers to the percentage of network measure (of an asset) to which a particular treatment is applied. For example, Spray Sealing of a road surface may be applied to only 50% of the road area, or Major renewal of a building may be applied to the whole building or a portion of the building. The default value is 100%, assuming the treatment is uniformly applied over an asset. Click on this to input the rate.
- Effective Cost ($): Effective cost, or the actual cost incurred as a result of a treatment, is calculated by taking the apply rate into account. The system will calculate this automatically.
