1. An Introduction to Whole Life Costs and Sustainability

2. Content Definition of WLC The 3 Elements of Sustainability Where Does WLC Fit In? Why Should Clients Care? Why Should You Care? What We Need To Do? Where WLCF Can Help?

3. Definition of WLC Whole Life Cost is the analysis of all relevant and identifiable financial cashflows regarding the acquisition and use of an asset.

4. 3 Elements of Sustainability Social Economic Environmental

5. 3 Elements of Sustainability Social Economic Environmental

6. Social Economic Environmental 3 Elements of Sustainability Unattainable

7. Activities in Sustainability Whole Life Cost Materials Aesthetics Social Environmental Economic

8. Where Does WLC Fit In Next Step in Continuous Improvement First Step in Sustainability May Already be Doing It (Sort Of) Easily Understood Financial and Operational Gains

9. Whole Life Cost Ratios Capital Cost Cost in Use Business Costs 1 : 5 : 200 Source.:"The long term costs of owning and using buildings" – published by The Royal Academy of Engineering (November 1998). Capital Cost Cost in Use Cost to Business 1 : 5 : 200 -100k : +£500k : +£20m

10. WLC – The Big PictureBuild 2 Years Design 1 Year £ 17% £ 3%Operate 25 Years Run / Maintain £ 40% Repair £ 30% Periodic Replacement / Refurbish £ 10%TotalTotalDispose 1 Year 100% Cost of Ownership £ ?% £ ?% Source Gardiner & Theobald

11. WLC Rules of Thumb

12. Revenue Cost Breakdown EnergyEnergy CleaningCleaning MaintenanceMaintenance Admin ServicesAdmin Services SecuritySecurity Admin and Management InsuranceAdmin and Management Insurance 7% 10% 20% 27% 31% 5%

13. Why Should Clients Care? Compulsion –Climate Change Levy –Carbon Trading –PFI Conditions –Funding Concern for Environment Curiosity Competitive Advantage Profit

14. Why Should You Care? Leading Role in Industry Understand New Concepts Concern for Environment Competitive Advantage Profit

15. What We Need To Do Adopt Performance Specification Consider the Costs in Use for Asset Selection Take Small Steps - Progress Slowly Understand What You Have Achieved Benchmark

16. Where WLCF Can Help The web based WLC Comparator Tool Common Data Structures Common Calculation Methodologies Access to Database Optioneering Benchmarking Credibility Accreditation Help - You Are Not Alone

17. Some Useful Web Sites Whole Life Cost Forum – www.wlcf.org.uk Training Definitions Guidance Access to the Online Tool