One of five primary types of obsolescence and a force of
retirement of assets.
Legislation, or other
directive/order, issued by an authority
having jurisdiction, resulting in the prohibitive use of
unless specified changes
are introduced or renewal
is carried out.
Legal obsolescence has the following general attributes:
- The owners
are given a deadline for compliance.
- A form of
external obsolescence that is curable through some form of remediation
- The remedy
is prescribed or minimum standards are set.
- The challenger asset is
an upgrade to the defender
challenger asset will have an
incremental cost to be factored into the replacement planning.
- The Asset Strategic
Importance is too critical to the safety
of the occupants and uptime is so essential.
Legal Obsolescence Mapped to the
Listed below are some examples:
announcement of a recall (“P”
potential failure) of a certain deficient asset, such as certain
sprinkler heads, leads
to the negative impact on insurance coverage (“F”
functional failure) and necessitates renewal.
to health concerns associated with the manufacturing process,
production of asbestos containing (AC) pipe ceased in the United States
in the early 1970s ("P").
Bursting and reaming of the pipe at the end
of its 50 year service life ("F").
Causes of Legal Obsolesence
This form of obsolescence is the result of:
The following assets are prone to legal obsolescence:
Listed below are some examples of
- An Order to
replace bottom type hydraulic
elevator cylinders with PVC encapsulated cylinders.
regulations requiring the replacement of dry sprinkler compressors that
are older than 15 years.
Mitigation and Planning:
The effects of legal obsolescence can
sometimes be managed
and mitigated through the following:
- Understanding how to anticipate and
identify the points of potential failure ("P") and functional failure
("F") relative to the P-F
- "P" occurs when the authority having
jurisdictions issues the order and "F" occurs at the deadline issued by
- Periodic testing and inspections by
persons having knowledge of industry developments to identify leading indicators
and coincident indicators.
- Recognition of the Asset Condition
Risk (ACR) classification and Asset Strategic
Importance (ASI) classification.
- Timely compliance and demonstration of
- Insurance Policy
Example Retrofit Projects:
- Seismic Retrofit
- PVC Encapsulated Cyclinder Retrofit
- Sprinkler Head Retrofit
- Emergency Telephone Retrofit
- Face-Seal to Rain-Screen Cladding
- Acrylic Dome Skylights to Unit Skylights
- PCB containing fluorescent light ballasts
buried cylinder retrofit with PVC encapsulation due to legal
obsolescence and safety order.
Sprinkler head retrofit due to legal obsolescence arising from product
Pull stations requiring replacement. Read bulletin here.
Fig. Safety tag
on an asset with asbestos containing materials (ACMs).
obsolescence mapped onto the P-F curve alongside the other forces of
Retrofit of acrylic dome skylights to unit skylights.
Legal obsolescence resulting from a safety order issued by an authority