Lcc in the sustainable construction industry is significantly important to construct the. As opposed to more commonly used roibased calculations, lcc is conducted based on longterm costs and savings, keeping in mind the fact that they are interconnected. Probabilistic and fuzzy approaches for estimating the life cycle. Life cycle cost in construction projects is a process of economic decision analysis, which helps taking decisions on investments in new construction. This guidance note summarises what is meant by a lifecycle costing and whole life costing service for both new construction works and for the refurbishment of existing assets. Introduction the construction business has lately accomplished a paradigmatic shift in its approach to structures delivery and the meeting of customer satisfaction. This method is also known as life cycle costing technique in construction industry.
Life cycle costing lcc is a technique which enables comparative cost assessments to be made over a specified period of time, taking into. In a sustainable construction project, life cycle cost lcc practices is particularly suitable in. Life cycle costing is basically an estimation of the future costs of assets. In the construction sector, it is used to measure the quantity of whole buildings, systems, or building components and. If, however, there is a potential for energy or water to be consumed by that product. Life cycle costing lcc as a contribution to sustainable construction. Life cycle costing analysis lcca or lcc for short is the most accurate way to increase your buildings project savings by comparing different design alternatives. Life cycle cost in construction projects and time value of.
Life cycle costing is a method of economic analysis directed at all costs related to constructing, operating, and maintaining a construction project over a defined. These decisions on investments are analyzed for the payback over the life of the investment. The paper discusses issues related to life cycle costs in construction. Life cycle costing page 5 of 15 products in the case of the procurement of a product the only market cost that may be relevant is the purchase price. This paper provides a stepbystep, projectbased approach based on life cycle costing, minimum performance requirements. Professional quantity surveyors perspective chiurugwi, t1. But, there is a limited empirical study on the factors influencing the usage of lcc outside pfippp. Life cycle cost is a key element in the assessment of. Structure of sigma library print screen from sigma estimates tool. Studies on life cycle costing lcc in private finance initiatives pfipublicprivate partnership ppp projects abound, particularly in the uk.