Life cycle costing: a radical approach (R122)
Recommendations are made on the use and implementation of life cycle costing techniques in the construction industry. It is concluded that the optimum use of life cycle costing is as a management system over the fixed asset life cycle, and that it is especially applicable to the control of overall plant and machinery costs. It has many potential beneficial uses throughout the asset life cycle, as a management tool to minimise costs of asset ownership and operation. At present, the construction industry and its clients do not make wide use of the life cycle costing technique and, where it is used, it is often applied merely to the selection of design alternatives for long-life, low-energy-consuming assets, where its benefits are questionable. Life cycle costing techniques are reviewed and explained in a detailed step-to-step process.
Key words: whole life costing.
Author: D J O Ferry and R Flanagan
Number of pages: 101 (paperback)
Date of Publication: January 1991