Life Cycle Costs
  • •Life-cycle thinking means that the whole life-cycle of the building is considered from selecting the building site, designing, choosing the materials, construction and maintenance all the way to demolition and disposal of the elements or reusing the building.
  • •Construction investment decisions are often made based solely on the cost estimates from the investment phase.
  • •However there are also a lot of expenses in construction that follow from the operational period.
  • •All the earnings and expenses from the life-cycle should be taken into account when estimating the overall profitability and economy of the building.

 

 

 

 

 

 

 

 

 

  • •Life-Cycle Costs usually includes:
  • •The construction expenses that arise during the investment phase
  • •The upkeep and maintenance costs that result from the operational phase
  • •The decommissioning costs or potential residual value that follow from the end of the life-cycle

LIFE CYCLE COST FACTORS