Financial Strategy - Treatment Unit Cost
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.
Adding Treatment Unit Cost Variation
Due to local reasons such as asset hierarchy, geographical location, asset classification, and environmental constraints, it is likely that the same treatment may incur a different cost for different assets. In order to reflect this, Treatment Unit Cost Variations are configured, which apply significant variation to a given treatment unit cost. For each treatment, you can define either a % of increase or decrease for a given treatment unit cost, or a variation unit cost, for selected assets as identified and set-up during the creation of the Model.
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Click on the Treatment Name to add unit cost variations.
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Go to the Treatment Unit Cost Variation box, and type either the percentage values to add for each variation name in the Variance column or the new Unit Cost for each variation name into the Unit Cost ($) column. The Variance and the Unit Cost ($) are linked, and modifying one will automatically calculate and modify the other.
