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Published byNicholas Andrews Modified over 9 years ago
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LCCA Life-Cycle Cost Analysis Group 3A
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Introduction “Life-cycle cost analysis (LCCA) is a method for estimating the total cost of ownership of a building, taking into account the cost of acquisition, ownership, operating, and disposing of a building or building system.”
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Introduction Enables to make a comparison between alternative solutions Can be performed on all sizes of buildings or isolated building systems Problems Uncertainty of input values Different budgets for building and operating costs
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Methods ESTIMATING ALTERNATIVE BUILDING DESIGNS RELIABLE LONG TERM ASSESSMENTS WIDE SCOPE
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Methods MAIN VARIABLES: COST TIME DISCOUNT RATE
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Methods All of the costs of the entire ownership Cost construction 2% Maintenance 6% functioning 92% Recommended to be done in many stages of the projects Costs of different design solutions
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Costs Several costs Initial costs Fuel costs Operating, maintenance and repair costs Replacement costs Residual values Other costs
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Time Vital to choose suitable calculating period Not too long Choose to match with the economic life of the building Residential building 30-40 years Commercial buildings around 20 years
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Discount rate To make cash flows time-equivalent Future cash flows present value Smaller the higher the rate of intrest is and the farther into the future payment goes dis = 1/(1+r/100)î where, r = rate of interest i = time period
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Life-Cycle Cost Calculation LCC = I pv + Repl — Res + E pv + W pv + OMR pv + O pv,
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Supplementary measures PURPOSE TO FIND OUT: COST-EFFECTIVENESS RANKING PROJECTS SCREENING PROJECTS
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Uncertainty evaluations ESTIMATING THE OUTCOME OF CHOOSING WRONG PROJECT ALTERNATIVE DETERMINISTIC AND PROBABILISTIC TECHNIQUES DETERMINISTIC TECHNIQUES ARE EASIER TO PERFORM Sensitivity analysis Break-even analysis
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LCCA in real life Case study from the USA College Station (warmer) and Minneapolis (cooler) Insulation material fiberglass or polystyrene Three information 1. Payback time
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LCCA in real life 2. Total life-cycle cost of insulation material (polystyrene left or fiberglass right) 3. Size of the insulation
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LCCA in other countries LCCA has been standardized in Europe in 2008 The number of the standard is ”15686-5 Buildings and constructed assets — Service-life planning — Part 5: Life-cycle costing”
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Thank you!
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