Asset Retirement & Closure Cost Planning
Professional Projects Group provides independent technical and commercial support to industrial asset owners in understanding, estimating and managing the physical costs associated with asset retirement, decommissioning, demolition and site closure. Our approach combines practical demolition and decommissioning delivery experience with structured scope development, cost planning and risk assessment — helping clients establish realistic, transparent and defensible closure cost estimates.
Independent cost planning
Asset retirement obligations represent a significant and often underestimated liability for industrial asset owners. Establishing a credible, well-supported cost estimate requires more than a desktop review — it demands firsthand understanding of decommissioning scope, demolition methodology, hazardous materials management, site conditions and Australian market pricing.
Professional Projects Group brings over 15 years of practical demolition and decommissioning delivery experience to asset retirement cost planning. We work exclusively for asset owners, with no contractor relationships or equipment ownership interests that could influence our advice.
Our work supports initial closure allowances, periodic provision reviews, detailed closure planning and the technical inputs that inform an owner's financial and accounting processes — while remaining clear that financial recognition, discounting and reporting decisions rest with the client's qualified finance and accounting advisers.
Service offerings
01
Establish the physical scope associated with retiring industrial infrastructure. Identify decommissioning, demolition, removal and site restoration requirements. Review closure obligations and assumptions supplied by clients and their advisers.
02
Prepare independent cost estimates for equipment removal, dismantling, demolition and associated activities. Consider access, temporary works, cranes, specialist equipment, labour, waste and mobilisation. Account for relevant site conditions and Australian market pricing.
03
Independently review the technical cost basis of existing closure provisions. Identify missing scope, outdated rates, unrealistic assumptions and unquantified risks. Support periodic updates to estimates as site conditions and closure plans develop.
04
Assess uncertainty associated with hazardous materials, contamination, asset condition, underground infrastructure and incomplete records. Identify investigations needed to improve estimate confidence. Develop risk registers and recommendations for further assessment.
05
Evaluate opportunities for equipment reuse, resale, salvage and scrap recovery. Consider recovery costs, market conditions and practical contractor methodologies. Identify potential offsets while keeping speculative recovery values separate from base cost estimates.
06
Assess alternative closure approaches, sequencing and end-state requirements. Support planning for future asset retirement expenditure. Develop practical recommendations to improve cost certainty and project readiness.
Deliverables
Deliverables are tailored to the maturity of the available information and the client's requirements.
Asset retirement scope and assumptions register.
Independent decommissioning and demolition cost estimate.
Basis of estimate, inclusions and exclusions.
Risk, contingency and information-gap register.
Closure cost review and recommendations report.
Options assessments and staged closure planning where required.
Our approach
Professional Projects Group is an Australian-based independent client-side consultancy. Our leadership team brings over 15 years of firsthand experience planning, estimating, tendering and delivering complex industrial demolition and decommissioning works — across industrial manufacturing, oil and gas, refining, chemical processing, mining, mineral processing, energy infrastructure, Defence and major brownfield facilities.
We understand Australian contractors, market conditions, procurement approaches and project delivery risks. This practical experience underpins every cost estimate and provision review we prepare — producing outputs that are technically credible and commercially grounded.
We provide independent advice with no contractor relationships or equipment ownership interests. Our role is to support asset owners with the technical scope, cost-estimating and delivery-planning inputs that may inform their accounting or financial provision process. Financial recognition, discounting and reporting decisions — including obligations under AASB 137 — remain with the client's qualified finance and accounting advisers.
Frequently asked questions
An Asset Retirement Obligation is a legal or constructive obligation to decommission, dismantle, remove or restore an asset at the end of its useful life. For industrial asset owners, this typically encompasses the physical costs of decommissioning plant and equipment, demolishing structures, managing hazardous materials and restoring the site to an agreed end state. Under AASB 137, the financial recognition and measurement of these obligations is a matter for the owner's qualified finance and accounting advisers.
A comprehensive estimate should address decommissioning and isolation of plant and equipment, demolition of structures and foundations, removal and disposal of hazardous materials including asbestos and contaminated materials, waste management and disposal, site remediation and restoration, temporary works, access, cranes and specialist equipment, labour, mobilisation and demobilisation, and appropriate contingency for risk and uncertainty. The scope will vary depending on the asset type, site conditions and applicable regulatory requirements.
A demolition estimate typically focuses on the physical work required to remove structures and clear a site for a defined project. An ARO cost estimate is broader in scope — it must capture all obligations associated with retiring the asset, including decommissioning, hazardous materials management, site restoration and any regulatory requirements, often at a point in time when detailed design information is limited. ARO estimates also need to address uncertainty and risk more explicitly, as they may be used to support long-term financial provisions.
Estimates should be reviewed periodically as site conditions, asset condition, regulatory requirements and market pricing change. Trigger points typically include significant changes to the asset or its operating status, updated hazardous materials surveys, changes in applicable regulations, material movements in contractor market pricing, and as part of regular financial reporting cycles. Early estimates prepared with limited information should be updated as closure planning matures and more detailed scope information becomes available.
Yes. We regularly review the technical cost basis of existing closure provisions prepared by others — including those prepared by contractors, engineers or internal teams. Our reviews assess the completeness of the assumed scope, the reasonableness of rates and quantities, the treatment of hazardous materials and contamination, and the adequacy of risk and contingency allowances. We identify gaps, outdated assumptions and areas where the estimate may not reflect current site conditions or market pricing.
Hazardous materials — including asbestos-containing materials, contaminated soils and process residues — represent some of the most significant sources of cost uncertainty in asset retirement estimates. We assess the available survey information, identify gaps in the hazardous materials data, and apply appropriate cost allowances and contingency for known and potential hazards. Where site conditions or underground infrastructure are poorly documented, we identify the investigations needed to improve estimate confidence and reduce financial exposure.
Get in touch
Whether you are establishing an initial closure allowance, reviewing an existing provision or preparing an asset for retirement, Professional Projects can provide practical technical and commercial support.
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