- Case studies
- Projects seeking partners
- Lessons learnt
- Best practice today
- Life-cycle costing made simple
- Sustainable refurbishment
Life-cycle costing made simple
6. Take a view on the 'Life' period and build in an appropriate inflation factor
A view needs to be taken of when property or its components become 'worn out' and need replacing, as this will impact the assumptions made in the life cycle costing process. The options appraisals will need to be costed, incorporating a calculation to ensure that all evaluation and decisions are based on harmonisation of future costs to Net Present Value.