An Overview Of Life Cycle Costing Construction Essay

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Background of LCC

LCC's roots can be traced to the researchers' activities within the MIT RadLAB (Radiation Laboratory) during World War II.

In 1960, The US Department of Defense officials observed that operations and support costs for weapon system could account for 75% or more of total cost incurred over its useful life period

The subsequent military procurement strategies and policies were heavily influenced with this observation, as these policies ultimately enhanced the development of life cycle engineering and costing concepts where it is important to control the total cost of construction, operation, use, maintenance, support and phase-out of product and infrastructure systems

Life Cycle Assessment

The environmental assessment of a product is known as the life cycle assessment.

An LCA overlooks all the possible aspects for the life cycle of product comprising over the harvesting for the extraction of raw material from nature, reforming and utilizing these raw materials for product development, use of product and finally recycling and disposal of the product back into the nature.

A full LCA should include the effects of energy and its consumption and associated emissions of gases over the life period of the building which may cause climate change, human health effects and acidification.


Life Cycle Assessment

It is necessary to conduct LCA for a building to evaluate its environmental impact over its life.

How does the LCA evaluate environmental impacts of a building can be due to;

Usage of materials used for energy

Transportation of materials and other components

Using material in construction

Operations like maintenance, repair, energy consumption and renovations

Recycling of the building, reuse of disposal material after it is recycled.

Life Cycle Cost Analysis

Life cycle cost analysis is a technique which is used for the calculation of Life Cycle Cost to assess its economic consequences of cost over a period of time

It covers all the costs including acquiring, owning and disposing of a building structure.

It is a special tool to assess the project alternatives fulfilling the same performance and service requirements but which are different for initial costs and operating costs in order to select that one project which maximizes net savings.

Energy System Life Cycle Cost Analysis

It is a decision making tool which compares the owning and operating costs for systems that use energy like heating, lighting, cooling and hot water etc.

ELCCA analyses the initial costs of construction and as well as the costs of owning and operating the building over its useful life and these costs sum up to make the total cost of ownership for a building.

The complete report of ELCCA makes recommendations about alternatives which make economic sense without compromising the comfort, health and productivity of the alternative.

Purpose of ELCCA Guidelines

These guidelines are helpful to define the methods for performing the ELCCA and to promote the alternatives which carry low life cycle cost and valuable insights about the energy efficient system which need to be incorporated in design process at early stages.

It also encourages the use of renewable resources when it is cost effective and feasible to do so.


Some other objectives include to define the timeline for the ELCCA phases in design process and to provide strong and standardized economic assumptions which would be used to determine the equipment usage for building life, fuel escalation and maintenance costs.

Steel Structure Life Cycle Cost

The one of the most adaptable materials known to man is steel. It can be converted into any shape or size by forging, rolling, and casting, pressing, welding, cutting, drawing, drilling or bending.

Steel has to be protected from corrosion. If it remains unprotected in the open air, it will start oxidizing and reverting to, iron ore, which is the origin.

Whatever the project or feasibility is, the cost can be represented by two different ways.

Initial Cost:

Lifetime Costs

Steel Structure Life Cycle Cost

Initial Cost:

In terms of initial cost, can galvanizing be compared with paint systems? Simply, a good paint system is comparable with it.

The various climate factors such as temperature, humidity and wind are non-responsive to the galvanizing process and finished coating must comply with the international standards.

However, galvanizing seems to be less economical when heavy structures steelwork with a low surface area per tonne is involved. Still the argument keeps aside certain factors.

Steel Structure Life Cycle Cost

Lifetime Cost:

Calculation of the Net Present Value (NPV) of each method and compare the results is the most common method. The cost of borrowing money, the initial cost of protection, later maintenance costs and the life time of the structure are the basic factors involved in this calculationVehicle operating cost.

Companies often use this method to measure the probable outcome of a capital investment project.

NVP =1 + M1 M2 + etc. (1+r)P1 + (1+r)P2

·         Where I = Initial cost of protect

·         M1 = maintenance cost in year P1

·         M2 = maintenance cost in year P2

·         r = rate of discount

Bridge Life Cycle Cost

Bridges are most important and unique structures for transportation system and it is required to keep a continuous and deep check for their maintenance, replacement and rehabilitation

The three major elements were used for BLCCA to estimate the parameter which include;

Bridge condition

Associated costs for bridge works and

Expectancy for bridge life service

Bridge Life Cycle Cost

The following equation helps to explain the Bridge life cycle cost model.



LCC= Life Cycle cost

DC= Design cost

CC= construction cost

MC= maintenance cost

RC=rehabilitation cost

UC= user cost, and

SV= Salvage value

Waste Treatment Facility Life Cycle Costing

The proper waste management is required else it might contain some serious damage to human and environment.

It is essential for an urban society to facilitate with the infrastructure of water supplies and wastewater treatment

LCA is a new technique which have wide applications also in the field of wastewater reuse and wastewater treatment facility.

Waste Treatment Facility Life Cycle Costing

The following equation helps to explain the waste treatment facility life cycle cost model.




LCCw = life cycle cost of waste treatment facilities

CONC = construction cost

EDIC = Engineering design and inspection cost

OPC = operating cost

DDC = decontamination and decommissioning cost

SRC = start up cost

WTDC = waste transport and disposal cost

FEC = front end cost

Building Life Cycle Cost

The Building Life-Cycle Cost (BLCC) program was designed to analyze energy and water savings, but it can accommodate any life-cycle cost analysis

There are numerous costs associated with acquiring, operating, maintaining, and disposing of a building or building system. Building-related costs usually fall into the following categories:

Initial Costs-Purchase, Acquisition, Construction Costs

Fuel Costs

Operation, Maintenance, and Repair Costs

Replacement Costs

Residual Values-Resale or Salvage Values or Disposal Costs

Finance Charges-Loan Interest Payments

Non-Monetary Benefits or Costs

Building Life Cycle Cost

The following equation helps to explain the Building life cycle cost model.

LCCb = CC+ OC + RMC + DC


LCCb = building life cycle cost

CC = Capital cost

OC = operating cost

RMC = Repair and maintenance cost

DC = demolition cost

Building Energy Cost Estimation

Building energy cost can be measured by using the formulas which has been developed over the number of years. These formulas are having concerned with the building energy like annual lighting cost, annual water heating cost and operational equipment energy cost.

Calculating the Total Life Cycle Cost for lighting

Calculating the Total Life Cycle Cost for water heating

Calculating the Total Life Cycle Cost for operational equipment energy

Total Life Cycle Cost for Lighting

LCa = (BS)(OT)(EC)




LCa= annual lighting cost

BS= Bulb size

OT= Bulb operating period

EC= Electricity cost

Total Life Cycle Cost for Water Heating

WHCa = (BTUa)(FC)

ER (Btup)



WHCa= annual water heating cost

BTUa = annual British thermal units

FC= cost per fuel unit

ER= Efficiency

Btup = British thermal unit per unit fuel

Coe= (Pa)(EPc)(OH)(OE)


Coe = energy consumption cost of operational equipment

Pa = average power electric rating

EPc= Electric power cost

OH = number of operating hours

OE = number of pieces of operational equipment.

Appliance Life Cycle Costing

Appliances are used for the different functions and includes the refrigerator, washing machine, vacuum cleaner mixer, grinder, microwave washing dryer and so many others goods.

To understand the life cycle cost of appliances this model will help. An appliance life cycle cost can be expressed as


LCCA = ACA + ∑LY CEN [FC (1+R) i]

i=1 (1+i) j


LCCA= Life Cycle Cost of Appliance

LY = useful life of appliance in years

i= Discount rate

ACA= Acquisition Cost of Appliance

CEN= energy consumption

RF=Yearly fuel consumption rate

FC= fuel cost

Pumps do not only have the initial cost of purchase but also the installation cost, maintenance and repair costs etc, energy is also required to run the pump which also incurs the energy cost.

Industrial pumps have long life spreading over 50 years of more. So if a user makes some poor decision about the pump purchase it would make him trouble for years

It is critical to think about the pump's total life cycle cost before making the purchase decision.

Pump Life Cycle Costs Estimation




CIC= initial Cost (Purchase Price)

CIN= installation and commissioning cost

CE= Energy cost

CO= Operation Cost

CM= maintenance and repair costs

CS= downtime cost (loss of production)

C Env= Environmental Cost

CD= Disposal Cost

Circuit Breaker Life Cycle Cost

Circuit breaker is an electrical switch that is designed to be operated automatically to secure an electric circuit from damage caused by overload or short circuit

Unlike a fuse, a circuit breaker can be easily reset both manually and automatically to resume the normal conditions

The circuit breakers are versatile as they can be made in different sizes depending upon the sizes of the household appliances or large switchgears designed to protect high voltage circuits feeding an entire city


Circuit Breaker Life Cycle Cost

Types of circuit breaker

There are different classifications of circuit breakers which are based on their features such as voltage class, structural features, interrupting type, and construction type.


Circuit breakers of low voltage

Circuit breakers Medium-voltage

Sulfur hexafluoride (SF6) high-voltage circuit-breakers

Common trip breakers

Circuit breakers of High-voltage

Magnetic circuit breaker

Circuit Breaker Life Cycle Cost



LCCcb = life cycle cost of the circuit breaker

CBFC = circuit breaker fixed cost

CBMC= Circuit breaker maintenance cost

UC= cost associated with the unavailability of power transmission and distribution system.


At last it can be summarized that the analysis of life cycle cost is very useful to make economic decisions for building material and design selection

The purpose of this research paper is to explore and review the Life cycle costing techniques in detail and also need to evaluate the LCC techniques in the civil engineering structures and energy system life cycle costing, that how these techniques are using in the Transportation industry to calculate the life cycle cost of the product and how effectively this technique is for the Civil engineering structures and energy system life cycle cost


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