SCSI Guide to Life Cycle Costing, 2nd Ed.

Dermot Kehily Dr, Technological University Dublin

Kehily, D. (2022). SCSI Guide to Life Cycle Costing, 2nd Ed., Information Paper. SCSI.

Abstract

Traditionally within the construction industry, design professionals provide advice to clients based on the economic aspects of building development proposals, but tend to primarily concern themselves with the initial Capital Expenditure (CAPex) (1, 2). Techniques such as Life Cycle Costing (LCC) provide end users with a longer term view, which includes maintenance and operating costs over a building’s life, in addition to the initial construction CAPex (3). This information paper discusses the meaning and applicability of LCC, focusing mainly on how the calculations are carried out and how Quantity Surveyors (QSs) could apply them to a construction project. A practice-based approach to LCC calculations are addressed, beginning with the fundamental financial formulae in LCC; application of LCC financial calculations to construction projects; and the use of spreadsheet software to carry out an LCC estimate. The benefits to utilising a LCC approach and the challenges in the approach are addressed, particularly in the context of sustainability and green procurement. Currently within sustainability in construction there are a proliferation of terminology with many of these terms and acronyms having similar meanings. This information paper starts with the definitions and meaning around a whole life cost approach to construction.