Physical Condition Assessment
What the Valuer Looks for in Your
Maintenance Programme
Maintenance records are not simply administrative documents.
They provide evidence that helps establish the actual
condition and expected remaining life of major
plant and machinery assets.
01
Maintenance Log Completeness
A signed, dated maintenance log for each
major piece of equipment — recording every service,
oil change, filter replacement, bearing change and
calibration — is the primary evidence of
systematic maintenance.
Important:
An incomplete or absent log does not mean poor maintenance
was performed. It means the valuer cannot confirm that
good maintenance was performed, which can lead to the same
outcome for the depreciation assessment.
02
Preventive Maintenance Schedule Adherence
Is maintenance performed at the
manufacturer’s recommended intervals?
A machine serviced at OEM-specified intervals — rather
than only when it breaks down — demonstrates
managed lifecycle management.
Regular preventive servicing provides stronger evidence
of controlled equipment utilisation and lifecycle care.
03
Condition Indicators & Actual Utilisation
If a machine has 8 years of single-shift
operation on record, its wear surfaces should
look consistent with that utilisation.
If the physical wear suggests
triple-shift operation, the utilisation
record may be understating actual hours and the valuer
may adjust the RUL estimate downward.
04
Recent Capital Investment
A CNC machine whose control system was upgraded from a
2008 Fanuc controller to a
current-generation controller in 2023
has received significant capital investment.
The upgrade can extend effective remaining useful life.
The RUL is estimated from the current
specification, not simply from the original
specification.