8.9.1 Economic Life
The economic life is the period until the asset ceases to be the lowest cost alternative to meet the required level of service. The economic life should be assessed with consideration of factors which may affect the expected renewal date, including:
- demand factors – growth, demographics, government policy, etc.
- legislative and environmental changes – water pollution control legislation, noise control legislation, etc.
- supply constraints – unavailability of suitable bridge timbers, etc.
- regulatory restrictions – increase in vehicle load limits, etc.
- technological redundancy – ceasing of support for computer control equipment
- operational costs and practices
- market value of existing asset and a potential replacement asset.