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The lowest cost now culture is incompatible with long-term profitability; long-term energy efficiency; and systems which are to satisfy end-user requirements. There is a great deal of confusion surrounding whole life costing - what it is, what it does, what it contains, and what it can be used for. There are many standard texts on the subject of whole life costing and whole life cost analysis WLCA.

Unfortunately there seems to be no consensus regarding the nomenclature to be used. To some, whole life costing includes service life planning; to others it means the equivalent annual cost of the project.


To yet others the definition of the maintenance regime is primary. Although all of these issues are important and provide input to, or are an output from whole life cost analysis, none of them actually are WLCA. The use of life cycle costing also causes a high degree of confusion.

Our American colleagues use life cycle costing to mean whole life costing, but there are many different interpretations in the UK. In at least one case, life cycle costing is shown as the simple addition of the costs incurred in each year with no discounting. The two mean the same thing as far as OGC is concerned. Whole life costing is an integral part of the overall process of turning a client's business related functional requirements into a physical asset which provides whole life value for that client. The basis of whole life costing is that the investment of a certain amount of money today will, with the addition of interest, pay a bill of higher value in the future.

Life-Cycle Cost Analysis (LCCA)

The actual description of WLCA is: "a method of project economic evaluation in which all costs arising, and benefits accrued from installing, owning, operating, maintaining, and ultimately disposing of a project are considered to be potentially important to that decision. There is only one evaluation criterion in whole life cost analysis - that the scheme with the lowest whole life cost is the preferred choice.

This does not mean that the scheme with the lowest whole life cost MUST be implemented. WLCA is not a stand-alone activity. As described in BS ISO , WLCA is a part of the overall process between the client's business case and the commencement of the project to satisfy the requirements of that case. The result of the WLCA is only one of the criteria imposed on the final selection of a design option see figure 1. The technical and environmental assessments, together with WLCA and client business input will provide a single solution which, although perhaps not optimum in any single assessment area, will be the best compromise between all of them.

The objective of WLCA, together with the technical, environmental, social and other evaluations is to provide the decision maker with sufficient information on which to base a reasoned judgement - none of the evaluations are designed to make the decision. It is often assumed that the solution with the lowest whole life cost is automatically the one with the highest initial cost. This is not always the case.

Carrying out the analysis is the only way to find out. Commercial developers leasing property feel that they have no need to compare whole life costs as they are only interested in initial capital costs. Immediately after these costs are incurred they hope to sell the asset and, hence, incur no recurring costs.

With the introduction of Building Regulations Part L2 and the growing awareness of clients of the need to minimise on-going operation and maintenance costs, there is a need for even commercial developers to understand and provide whole life cost information. Manufacturers of capital equipment are unable to provide cost and longevity data in sufficient detail and with sufficient contextual information to enable the recurring operation and maintenance costs and periodicity to be accurately estimated. Clients are seeking buildings that have lowest possible whole life cost, together with the longest serviceable life attainable within other parameters, the highest possible quality, the best appearance and the least taxes.

To achieve whole life value from a project, clients must be involved early on in the strategic decision making, especially within the decisions involving compromise between the client's functional requirements, the technical viability, the economic performance and the environmental impact. Back to the search result list. Table of Contents. Issue archive. Hint Swipe to navigate through the articles of this issue Close hint. Important notes. Responsible editor: Alexander Passer. In order to quantify the energy and material inputs and environmental releases associated with each stage of construction sector, life cycle energy, greenhouse gas emissions, and cost analysis of contemporary residential buildings have been conducted within two parts.

Methods This paper is the first part of the study which includes the literature review and methodology used for such a comprehensive analysis.

It was determined that there are three basic methods used in life cycle analysis: process analysis, input—output I—O analysis, and hybrid analysis. In this study, Inventory of Carbon and Energy ICE is used for the calculation of primary energy requirements and greenhouse gas emissions. The second part of this study is about the application of the methodology which considers two actual buildings constructed in Gaziantep, Turkey.

  • Life Cycle Costing in Construction.
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Results and discussion The proposed research focused on building construction, operating, and demolition phases. Energy efficiency, emission parameters, and costs are defined for the building per square meter basis. Conclusions The literature survey demonstrates that there are limited number of studies about life cycle cost assessment LCCA of residential buildings in the world. It was decided to use the ICE database as it is one of the most comprehensive databases for building materials, globally.

The results of the study show that minimizing energy, material, and land use by considering potential impacts to the environment on a life cycle basis are the basic steps in designing an energy-efficient and environmental-friendly building. Please log in to get access to this content Log in Register for free. To get access to this content you need the following product:. Springer Professional "Technik" Online-Abonnement. Renew Energy — CrossRef. Adalberth K a Energy use during the life cycle of single unit dwellings: examples.

Build Environ — CrossRef. Adalberth K b Energy use during the life cycle of buildings: a method. Energy Build — CrossRef. Blengini GA Life cycle of buildings, demolition and recycling potential: a case study in Turin, Italy.

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Constr Manag Econ 5 4 :3—22 CrossRef. J Clean Prod — CrossRef. Energy — CrossRef. Citherlet S, Defaux T Energy and environmental comparison of three variants of a family house during its whole life span. Appl Therm Eng — CrossRef.

Life Cycle Costing in Construction: Reduce your building's lifetime costs

Crawford RH Validation of a hybrid life-cycle inventory analysis method. J Environ Manag — CrossRef. Build Environ —99 CrossRef. Build Res Inf — CrossRef. EIA US energy information administration. Turkey last updated: Eurostat Energy, transport and environment indicators, European Union. Fava JA Will the next 10 years be as productive in advancing life cycle approaches as the last 15 years?

Life-cost approach to building evaluation

Build Res Inf —41 CrossRef. Fielden D, Jacques K Chosen set of capital investments can greatly influence energy service tariff levels. Int J Energy Res — 3. Glucha P, Baumann H The life cycle costing LCC approach: a conceptual discussion of its usefulness for environmental decision-making. J Ind Ecol — CrossRef. Gottfried D Economics of green buildings. Gustavsson L, Joelsson A Life cycle primary energy analysis of residential buildings.

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Hasan A Optimizing insulation thickness for buildings using life cycle cost. Appl Energy — CrossRef. Islam H, Jollands M, Setunge S Life cycle assessment and life cycle cost implication of residential buildings—a review. ISO Environmental management—life cycle assessment—principles and framework. ISO Environmental management—life cycle assessment—requirements and guidelines.