RATA created the Regional Roading Asset Valuation Process (RRAVP) to fix inconsistencies in asset valuations. Incorrect assumptions about replacement costs and asset lives have led to overcharging or underfunding.
RRAVP improves consistency and accuracy with a benchmarking dataset and an aligned process, leading to better decision-making and funding for roading assets.
The flexible process allows councils to make local adjustments to reflect their networks accurately.
Additional benefits of this process include:
The Asset Valuation Working Party (AVWP) was formed in 2015 after the Insurance Advisory Group (IAG) requested better asset valuation information for insurance purposes.
IAG identified that having robust asset valuation information is a key requirement in understanding the potential exposures that councils are insuring against.
A series of workshops revealed the main issue was the quality of asset data and the assumptions made by councils, not the valuation services themselves.
Since 2015, the project has had many iterations and gone through a period of dormancy, in part due to COVID. The following work has been undertaken;
A Road Asset Valuation Process Guide has been created to outline the recommended procedures.
The guide aims to give local authorities and their consultants a best practice approach, ensuring consistency and simplicity in asset valuations across the region.
It includes a detailed process map and explanations of key steps.
The RRAVD offers regional datasets for Useful Lives and Replacement Cost Unit Rates. These datasets help Councils check or generate their own data points.
These datasets are being developed over time, dependant on the implementation of AMDS at the Waikato Councils.
The first dataset was published in June 2024, covering Roadway-Surface assets.
Datasets will be updated annually, and councils must provide data by November 15 each year.
Updated datasets will be available by March 31 for use in valuations.
A standard template has been developed. We recommended Councils and their valuers use this.
A standard template has been developed. We recommended Councils and their valuers use this.
