What is Asset Management?
Asset management is a form of long-term planning, more comprehensive than a capital plan. An asset management plan (AMP) is designed to manage a co-op's capital assets over time, to deliver a desired level of service at the lowest life-cycle cost. An asset management plan is typically grounded in a building condition assessment (BCA) carried out by a qualified professional. An AMP explicitly links a financial plan, the status of a co-op's physical assets (from a BCA), and on-going operations and maintenance practices.
In short, an asset management plan is designed to manage a co-op’s capital assets over time and to answer the question: “How much of our money should we spend on what, and when should we spend it to keep the co-op performing as we expect, at the lowest life-cycle cost?”