2598 -- Life Cycle Cost Analysis for Buildings ✓ Most Recent

This paper attempts to present in a simple logical manner the principles of Life Cycle Costing; the basic mathematics are developed and procedures outlined for step by step implementation, i.e., the identification of objectives, the selection of financial criteria, the development of design alternatives, the identification of cost factors, the selection of time periods, the calculation of present values, and the evaluation and selection of alternatives.

The application of Life Cycle Costing as an interdisciplinary effort is outlined for all phases of the life cycle of a facility, i.e., initial planning, conceptual design, schematic design, design development, procurement and construction, and operations. Requirements for successful implementation are presented, as well as some of the problems that may be anticipated. Simple examples are provided to illustrate Present Value Calculations by the “flow” and “formula” methods. Financial tables and graphs are also included for reference.