Life cycle costing

For some time it has been recognised that to merely evaluate the costs of a project on the basis of its initial cost alone can be misleading. A cheaper constructed facility may in the long term be far more expensive than one with higher initial costs.

Life cycle costing is an evaluation technique that enables comparative assessment of the performance of a project or a constructed facility over its operating life. The life cycle costing assessment process not only takes into account the characteristics of the constructed facility, reusability, sustainability, maintainability and obsolescence, but also the initial capital cost, operational cost, maintenance cost, residual and disposal costs. Therefore, both the economic and non-economic performances of the constructed facility can be assessed.

As part of the life cycle costing element of our service we will monitor the life cycle costing analysis. The objectives of life cycle costing are to consider the impact of all costs rather than only the initial capital costs, to enable alternative constructed facilities to be more effectively evaluated, and to assist the effective management of a completed facility. Best value for money can therefore be achieved for our clients.