What do we have, where is it, what is it worth, how easily are we going to use it, and what are we going to do with it?

Real property usually includes land and everything permanently attached to it, such as structures, their installed systems, construction equipment, and can include roads, parking facilities, walls, service systems, houses, etc. Real property inventory (RPI) is a record of the real property asset (land, house, or structure) of an entity. Real Property Asset Management (RPAM) is a real property inventory selection and maintenance program. RPAM offers information for the management of those Assets and satisfy the criteria for asset records and documentation. RPAM provides the information available in the company to prepare facility budgets, make decisions on facility replacement, identify maintenance costs, identify penalty costs , and improve the management of investments in real estate properties. In the planning, programming, and budgeting phases, the knowledge generated by the RPAM program can help. Usually, RPI and RPAM are at the macro level of an institution dealing with the overall building, property, or structure. Initiate a method of collaborative concept creating.

What’s Control of Assets? Assets are the foundation for every company delivering what it seeks to do, and the benefit realized from them. It is good asset management that maximizes value-for-money and meets the needs of stakeholders, whether public or private sector, and whether the assets are physical, financial, human, or ‘intangible.’ Coordinated and optimized planning, collection of assets, acquisition / development, usage, care (maintenance), and ultimate disposal or renewal of the appropriate asset and asset systems are included.

Since the 1990s (from the North Sea oil and gas industry and the Australian public sector), insights into the integration and optimization of asset management have grown to recognize a number of critical business processes, coordination practices, and system integration features that produce very significant performance benefits. To define and categorize all real estate purchased, rented, or otherwise controlled by the government, Federal RPAM places strict criteria on owners of Federal Real Property. Executive Order 13327, signed in 2004, stresses the value of RPAM as a whole. The performance of every organisation with a real property portfolio. In the past, for ready reference inside directories in file cabinets, real estate records were kept and consisted of a list of properties, their value and limited other information. Since Total Cost of Ownership (TCO) management criteria within an enterprise have become more important with increasing costs and declining budgets, the demand for real estate factual data has increased. RPAM managers must support ever growing requests for real estate information in their portfolio, especially because information on real estate is available. Requests are not restricted as in the past to building info. Infrastructure, construction structures, infrastructure, energy use, space use, code enforcement, and environmental protection are the information criteria.

The position of Facility Managers has been changed by powerful databases to that of Facility Asset Managers. They assist corporate decision-makers with factual data and auditable Key Performance Indicators ( KPIs) on real estate and components that support the facility or infrastructure asset ‘s mission or activities. Although RPAM implementation may be separate from the development and management of RPI records or a Computer-Aided Facility Management (CAFM) system, they should be combined or connected to avoid duplication of effort to both produce and maintain information for Usage of companies. Linking the databases of Computerized Maintenance Management Systems (CMMS) to both the RPI and RPAM databases will create a complex mechanism that gathers and uses useful organizational data at its minimal acquisition cost once and again. An significant aspect of the asset management of a company has been the extended use of RPIs.

Make Integrated Decisions

Integrated Decision Management (IDM) is the method of considering the effect of the strategic plans of each department on all other department’s strategic plans in an organization. Data obtained during an energy audit, for instance, may also include data to update a CMMS. Usually, an RPAM software program transforms historical, as-built, and condition evaluation data from facilities into functional management information. The most repeatable and most repeatable RPAM program is Auditable if based on the evolving Engineered Management System ( EMS) method, but a Knowledge-Based Method (KBP) may be created. (The EMS process transforms objective real estate data into auditable KPI metrics based on actuarial tables and engineered deterioration curves.) To provide the KPI metrics, KBP systems rely on the data collector ‘s judgment or expertise.

Collecting Data

It is not possible to overstate the value of obtaining accurate data. The acceptance of reports produced by an RPAM is directly linked to the auditability of their details. Facility managers collect historical, as-built information and analyze the state of all structures and components in a given facility or infrastructure asset while implementing an RPAM. Most of the necessary data can be collected electronically from existing management software relevant to the facility, such as a CAFM system, CMMS, and/or an existing RPI database. Data Collection Devices (DCDs) are in general use today and simplify the data collection devices. Various aspects of knowledge collection and summarizing. Usually, DCD-inherent software generally offers a mechanism that guarantees the accuracy, integrity, timeliness, and simple transfer of data to a database, file, or summary report. This data is then used to establish different KPI metrics for device components, such as Remaining Service Life (RSL), Current Replacement Value (CRV), and Condition Index ( CI). For the development of a Device Condition Index (SCI), this data compilation is used. For generating a Facility Condition Index (FCI), the SCI is used. In addition, a Site / installation / campus Condition Index can be created using FCIs.

3-D, non-contact laser scanning is one systematic form of data collection for building interiors (room boundaries), and the building systems supporting a given facility. Elements that are visible to the scanner are measured and digitized as a “point cloud” with this technology for use in the development of CAD drawings and models. The scans record the location, object size, texture , shape, as well as color of all objects visible to the scanner. In order to be able to interpolate what is hidden from view, and to fix its relative position within space, several scans are typically needed to collect enough data on any given object. Then the scans are “enrolled” and a point cloud is created.

The point cloud is the scanner’s surface of everything that is registered. For CAD sketches, whether 2-D or 3-D versions, the point cloud serves as the basis. To build a CAD drawing file delineating walls , floors, ceilings, and other items that have been scanned, CAD technicians can use the point cloud file. The components can be divided into their respective layers (refer to the National CAD Standard) or families, which can then be used as an inventory of rooms, furniture, plumbing, ductwork, valves, junction boxes, or any other space-supporting infrastructure components. The resulting CAD models, including strategic planning, room inventory, renovation plans, or building information modeling ( BIM), can be used in a number of ways. It is possible to implement BIM models into many facility management systems, such as CAFM, CMMS, RPAM, or RPI. As a historical “snapshot” for future reference, scan files generated in the laser scanning process can be helpful and should be preserved along with the CAD drawings and BIM models in the facility management programs.

Study of Life Cycles (LCA)

EMS-based RPAM software programs can evaluate and model the collected data against its actuarial and deterioration curves database. The analysis offers statistical performance measures to evaluate the current state of each variable in relation to its remaining economic existence in support of the LCA. A system of parameters created by the data collector to assess the current condition is used by the knowledge-based method or may use a ratio such as the estimated cost to fix over the estimated cost to replace a Facility Condition Index (FCI) to produce. The RPAM database may be modified when repairs, replacements, or additional acquisitions occur via a connection or alignment with existing work-management processes such as a CMMS or CAFM application and the RPI databases. A dynamic perspective of the overall inventory and the current status of any infrastructure or facility / component will be provided by this integration.

Costing Intervention

By modeling current as-built plans and conditions against a mature costing database or through links to commercial costing databases, RPAM defines the expenses of repair and replacement options. The reliability of the cost estimates becomes critically important because these costs act as the basis for the optimization program and “what-if” analysis. Real costs are then tracked by the CMMS and its costing database is updated by RPAM to reflect evolving costs for generating new cost estimates.

Integrated decision-making by financing choice optimization

For different situations, RPAM can assess the effect on inventory and future ROI. In terms of its effect on the targeted KPI, it can play “what-if” and define the return on each investment option. The use of the Analytical Hierarchical Method (AHP), which is a systematic methodology to help individuals cope with difficult decisions, enables different goals to be modelled and each variable to have an effect. To achieve the desired strategic performance, this is the secret to enterprise-wide optimization of limited funds. This makes it a prerequisite for the introduction of an RPAM program if a company is to have true stewardship of the dollar invested and build a sustainable climate.

Reports on Management

  1. The following reports are usually generated by an RPAM software program:
  2. Remaining serviceability estimates (infrastructure / facility / system / component)
  3. Plan criteria on investments and maintenance
  4. Estimates of costs to correct existing shortcomings
  5. Estimates of Replacement Cost
  6. Present Asset Depletion Expense
  7. Asset depletion rate
  8. Long-range projections for budgets
  9. Near-term prioritized budgets based on KPIs corporate strategies
  10. Cost effect of care deferral (Business case)
  11. Physical Conditions Inventory
  12. Prioritized work orders based on condition and/or service life expectancy

Distributing Budget

A RPAM software can help evaluate how funds should be allocated to each real property asset in the corporate budget based on corporate strategies and variables provided. Based on both long and short-term needs, it forecasts these budgets and accordingly allocates them to different ‘buckets’ of funding as necessary for organizational needs.

Business case for RPAM Method implementation

Applied financial management of corporate facility assets and a monitoring system that monitors the depletion of those assets are needed. Owners, architects, engineers , and designers must also become more aware of the economic importance of RPAM. In order to operate at the lowest cost and at the lowest risk to the facility or infrastructure task, facility assets should be handled. For many stages in the life cycle of building systems, investment opportunities arise. These strategic investments should be made, and the return on those investments should be calculated if the full cost of ownership reduction is to take place.

Many organisations are shocked to discover the extent of funds in their facilities that they have at risk. By determining the cost of substitution (including the cost of capital) and then dividing that cost by the actuarially defined life of the device, an annualized replacement value can be produced. This importance is used to show the company the advantage of growing a building system ‘s existence by a single year by strategic repair of existing defects. This cost / benefit analysis increases budget applications to complete budget criteria with penalty costs of underfunding those criteria.


RPIs are best managed in today’s business environment in electronic databases with comprehensive inventory records managed in paper files. The records should contain descriptions of transactions that impact the assets of the company and should be kept for the life of each asset as permanent records. The RPI size of the machine depends on the number of facilities and how the corporation decides to manage the database. The database can be housed at a site / complex / campus or at a central location where the owning agency’s assets are totally protected. Details as defined by legislation , government regulations, and/or the management of an entity would include the inventory data on an asset. It will rely on the usage of the information and what conditions have been imposed on the organization, such as information to satisfy tax requirements, government legislation, management reports, concerns of operations and maintenance (O&M), and other requirements that the organization may have.

Whether by building, purchase, lease, donation, or some other source of procurement, the RPI documentation and database should begin with the acquisition of the asset. When building, the RPI documentation should accompany the delivery of the project at the time the asset is handed over to the O&M owner. The RPI should begin with the owners assuming O&M responsibility for the asset while utilizing other sources of procurement. The decision to enter an asset or an addition to an asset in the RPI is defined by the value set by statute, government legislation, or the concept of real property by the organization and the organization. For the life of the asset, the RPI for assets meeting the concept and value criteria put on the company should then be retained.

Content from RPI

An organization’s RPI should provide comprehensive documents, including its initial acquisition and upgrades, describing the asset and its cost. The asset ‘s unique name (usually a descriptive title), unique facility number or address, book value, type of facility (may be a classification code or simply included in its descriptive title), capability and unit of measure (UOM) should be included in all database details. The organization and its management will rely on other database material. Data can also include asset position, present replacement value, building priority code, use (may be a code) and status, listing condition status of essential building systems, and expected replacement year, additional building or site upgrades and their costs, O&M costs for previous years, and General Services Administration (GSA) Use Codes for government agencies.

Value for Books (Cost)

An example of the government’s use of a facility’s capitalized value (book value) is that it contains all expenditures incurred to get the facility to a full and functional state. Costs for book value can include the following:

  • Amounts paid to vendors or contractors, including fees;
  • Transportation charges to the point of initial use;
  • Handling and storage charges;
  • Labor and other direct or indirect production costs (for assets produced or constructed);
  • Engineering, architectural, and other outside services for designs, plans, specifications, and surveys;
  • Acquisition and preparation costs of buildings and other facilities;
  • An appropriate share of the cost of the equipment and facilities used in construction work, including depreciation (per FMM 9091-5c.);
  • Fixed equipment and related costs of installation required for activities in a building or facility;
  • Direct costs of inspection, supervision, and administration of construction contracts and construction work, including civil service costs;
  • Legal and recording fees and damage claims;
  • Fair values of facilities and equipment donated to the Government, and
  • Material amounts of interest costs paid.

These costs should be sufficient in relation to the form of facility to be capitalized and should be included in the book value of the new asset or added to the book value of the facility in the event of an asset upgrade.

The initial entry in the RPI involves the book value of asset upgrades that follow the criteria of a company that are applied to the book value when they occur. What is included in an asset’s book value would depend on the private sector’s tax laws and management standards and the rules of financial management and government regulations of government organizations.

Improvement of Capital

A Capital Investment Plan or Program (CIP) decides capital improvements. An asset’s capital improvements are adjustments whose cost is equal to or greater than the value defined by the company or by law / regulation and (1) extends its useful life by two years or more or (2) increases or enhances its capability or otherwise improves the asset to meet needs other than or substantially greater than those originally planned. Improvements to capital will increase a facility’s book value.

If a replacement occurs as a result of a capital investment, the asset book expense should be changed accordingly to exclude the original costs of substituted goods if the expense and the cost of replacement exceeds the cost set by statute, regulation or entity. If only a portion of the property is being replaced and that portion is not separately recognizable in the records of the asset, it is appropriate to measure the original value of the replaced portion and change the book value accordingly. The cost of the replacement objects does not include the cost of removal, but rather the cost of the original book.

Sustaining the RPI

To ensure compliance with applicable laws, regulations, and organizational policy, the company responsible for the RPI should establish guidelines and procedures appropriate for the company. These processes must involve the assigning of responsibilities and the establishment of controls required to ensure that, including the database, the RPI records are kept current. In addition, they must ensure that periodic physical inventories are carried out and that the documents based on the inventories are reconciled. The Federal Real Property Council advises each department to nominate a Senior Real Property Officer for federal facilities who is responsible for preserving accurate data under the RPI.


All entities responsible for maintaining asset records should maintain an RPI. Reports and requests for information can be addressed simply by getting the data in a database without requiring manpower to retrieve the data from paper files. This is especially relevant where, as seen in large companies, colleges, and government departments, the company is responsible for a complex or campus with multiple properties.


Computer database security continues to be an on-going issue for organisations. Ensure the information is backed up and is well secured from misuse, alteration and destruction.


The federal and state tax codes in the private sector create standards for RPI asset records that must be preserved. In the public sector, database files are based on the criteria and government directives of organizations.

The following rules apply to government agencies:

  • Parts 202 and 203 of the 1949 Federal Property and Administrative Services Act, as amended, 40 U.S.C. 483 and 484,
  • 41 CFR, Chapters 101 and 102, Rules for Federal Land Management
  • Executive Order 13327, Federal Wealth Control for Real Property




Control of Computer Aided Facilities (CAFM), Computerized Management Systems for Maintenance (CMMS)


  • True Property Master Planning AR 210-20 by the U.S. The military.
  • G 430.1-8 The Department of Energy’s (DOE) Asset Revitalization Guide to Asset Management and Reuse.
  • By the General Services Administration (GSA) Federal Real Property Profile.
  • The General Services Administration (GSA) Instructions for Real Property Inventory Reporting.
  • By the General Services Administration (GSA) Real Property Management Strategy.
  • Association of Multinational Facilities Management
  • NPR 8800.15C Implementation Manual of the Real Estate Management Program by the National Aeronautics and Space Administration (NASA).
  • Under the Secretary of Defense, Office of the Deputy-Facilities and Climate Real Property Inventory Specifications
  • Consortium with Accessible Criteria for Real Estate
  • National Asset Management Steering Committee of New Zealand

The Meanings

  • Key Performance Indicators ( KPI) are quantifiable measures that help to identify and measure progress towards organizational objectives for an organization.
  • Total cost of ownership (TCO): assesses all expenses, direct and indirect, incurred during an asset’s life cycle, including procurement and acquisition, operations and maintenance, and end-of – life management.

Collection of Acronyms

  • AHP-Hierarchical Analytical Method
  • CIP-Plan or Program of Capital Investment
  • CI-Index of Conditions
  • CAFM-Control of Computer-Aided Facility
  • CMMS-Management Framework for Device Maintenance
  • COBie-Building Operations Construction Information Exchange
  • CRV-Current value for substitution
  • DCD-Computers Collecting Data
  • EMS-Method of Engineered Management
  • FCI-Condition Index of the Facility
  • FPE-Performance Assessment of Facility
  • GSA-The Management of General Services
  • IDM-Integrated Making of Decisions
  • KBP-Method dependent on information
  • LCA-Study of Life Cycles
  • LCCA-Study of Life-Cycle Cost
  • NASA-Space Administration and National Aeronautics
  • O&M-Maintenance and Service
  • PT&I-Inspection & Predictive Testing
  • RPAM-Wealth Management of Real Property
  • RPI-Inventory of Real Property
  • RCM-Maintenance Based on Reliability
  • RSL-Life of Remaining Service
  • SCI-Index of Device Status
  • TCO-Ownership Net Expense
  • UOM-Unit of measure of measure of