Asset Disposal Plan

An Asset Disposal Plan is pretty much what it sounds like: a business planning out how they will get rid of assets. Disposal of equipment, especially infrastructure equipment used by governments, can be costly, as much as 5% of the life cycle cost of the item. In other words, when you calculate the cost of the item, you have to include getting rid of it too.

For instance, the local road commission deals with some large machines. They have pavers, cement trucks, Caterpillars, those dump trucks that look like a really big version of what kids play with in sandboxes...Disposing of those when they break down or are no longer needed would be costly.

The asset disposal plan outlines how the business will dispose of it, and what it will cost. The plan should also outline what equipment will be used once the current stuff is gone (whether it will be replaced or not). Assets can be sold, demolished on site, or taken elsewhere to be destroyed (like a garbage dump). Regardless of the option chosen, this plan outlines the details of it.