15-11-2012, 06:13 PM
Initial and Future Expenses
Life cycle assessment, the investigation and valuation of the environmental impacts of a given product or service caused or necessitated by its existence. Life-cycle cost include 15% construction costs, operational and maintenance costs, taxes, financing, replacement and renovation.
Whole-life cost, the total cost of ownership over the life of an asset, also commonly referred to as "cradle to grave" or "womb to tomb"
As defined earlier, Life Cycle Cost is the total discounted dollar cost of owning, operating,
maintaining, and disposing of a building or a building system over a period of time. Keeping this definition in mind, one can breakdown the LCC equation into the following three variables: the pertinent costs of ownership, the period of time over which these costs are incurred, and the discount rate that is applied to future costs to equate them with present day costs.
Initial & Future Expenses
The first component in a LCC equation is cost. There are two major cost categories by which
projects are to be evaluated in a LCCA. They are Initial Expenses and Future Expenses. Initial
Expenses are all costs incurred prior to occupation of the facility. Future Expenses are all costs
incurred after occupation of the facility. Future costs can be broken down into two categories: one-time costs and recurring costs. Recurring costs are costs that occur ever year over the span of the study period. Most operating and maintenance costs are recurring costs. One-time costs are costs that do not occur ever year over the span of the study period. Most replacement costs are one-time costs.
The LCCA of each project alternative should include:
•A brief description of the project alternative
•A brief explanation as to why the project alternative was selected
•A brief explanation of the assumptions made during the LCCA
•Conceptual or schematic documentation indicating design intent of the alternative
•A site plan showing the integration of the proposed facility on the site and necessary site
improvements (for projects involving additions or new construction)
•A detailed LCCA of the project alternative
•A summary table that compares the total life cycle costs of Initial Investment, Operations,
Maintenance & Repair, Replacement, Residual Value of all the project alternatives
Life cycle assessment, the investigation and valuation of the environmental impacts of a given product or service caused or necessitated by its existence. Life-cycle cost include 15% construction costs, operational and maintenance costs, taxes, financing, replacement and renovation.
Whole-life cost, the total cost of ownership over the life of an asset, also commonly referred to as "cradle to grave" or "womb to tomb"
As defined earlier, Life Cycle Cost is the total discounted dollar cost of owning, operating,
maintaining, and disposing of a building or a building system over a period of time. Keeping this definition in mind, one can breakdown the LCC equation into the following three variables: the pertinent costs of ownership, the period of time over which these costs are incurred, and the discount rate that is applied to future costs to equate them with present day costs.
Initial & Future Expenses
The first component in a LCC equation is cost. There are two major cost categories by which
projects are to be evaluated in a LCCA. They are Initial Expenses and Future Expenses. Initial
Expenses are all costs incurred prior to occupation of the facility. Future Expenses are all costs
incurred after occupation of the facility. Future costs can be broken down into two categories: one-time costs and recurring costs. Recurring costs are costs that occur ever year over the span of the study period. Most operating and maintenance costs are recurring costs. One-time costs are costs that do not occur ever year over the span of the study period. Most replacement costs are one-time costs.
The LCCA of each project alternative should include:
•A brief description of the project alternative
•A brief explanation as to why the project alternative was selected
•A brief explanation of the assumptions made during the LCCA
•Conceptual or schematic documentation indicating design intent of the alternative
•A site plan showing the integration of the proposed facility on the site and necessary site
improvements (for projects involving additions or new construction)
•A detailed LCCA of the project alternative
•A summary table that compares the total life cycle costs of Initial Investment, Operations,
Maintenance & Repair, Replacement, Residual Value of all the project alternatives