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Best Practices in O&M Contracting Can Create Value for Your Asset Management Program

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The evolution in the allocation of risks in Public-Private Partnerships and the shift of the responsibility for Asset Management execution from the Owner to the Contract Operator are reviewed. Current Best Practices in O&M Contracting that are applicable to planning for Asset Management are assessed. The actual Service Agreements discussed in this presentation provide examples of the ways that the responsibility for Asset Management execution has shifted over time from the Owner to the Contract Operator. Contract Operators are now taking on the responsibility for assets during the term of their agreement as well as accepting responsibility to return those assets to the Owner at the end of the Contract term at an asset valuation equal to the its value at the beginning of the Term. Managers of water and wastewater systems, whether they are considering continued public operations or privatization, should define their assets future value. The result will be a clearer understanding of the agencies' expectations for Asset Management as well as an important first step in a Best Practice Asset Management Program.

Document Type: Research Article


Publication date: January 1, 2004

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  • Proceedings of the Water Environment Federation is an archive of papers published in the proceedings of the annual Water Environment Federation® Technical Exhibition and Conference (WEFTEC® ) and specialty conferences held since the year 2000. These proceedings are not peer reviewed.

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