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- Life-cycle costing made simple
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Life-cycle costing made simple
Life-Cycle Costing (known in the UK as Whole Life Costing) is a technique which assesses the total cost of an asset over its whole life; it takes into account the initial capital cost, as well as the costs of renovation, repairs and maintenance over the expected lifetime of the property.
Many organisations and businesses in the UK have found the following steps essential for Life-Cycle Costing (LCC) to be introduced effectively. Further information is available by following the links at each step.
- 01 Develop an organisational policy on Life Cycle Costing, Value and Performance
- 02 Take first steps appropriate to your organisation
- 03 Start early on new build projects
- 04 Refurbishing and maintaining the existing stock requires a different approach
- 05 Involve all the key players
- 06 Take a view on the ‘Life’ period and build in an appropriate inflation factor
- 07 Establish data collection systems to back up the Life Cycle Costing model
- 08 Review the performance of the Life Cycle Costing framework and information systems regularly
- 09 Focus on appropriate training of construction, maintenance and servicing staff
- 10 Acknowledge client priorities and other factors