Life-Cycle Cost Analysis Essay -- Facility Ownership Finances Accounti

Life-Cycle Cost Analysis Life-cycle monetary take to be analysis (LCCA) is a method for assessing the total cost of preparation ownership. It takes into story all costs of acquiring, owning, and disposing of a construction or building system. LCCA is specially officeful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating(a) costs, have to be compared in order to select the one that maximizes net savings. For example, LCCA will help coiffure whether the incorporation of a high-performance HVAC or glazing system, which may increase initial cost but result in dramatically reduced operating and maintenance costs, is cost-effective or not. LCCA is not useful for budget allocation. net life-cycle cost (LCC) is the most straightforward and easy-to-interpret measure of economical evaluation. Some separate commonly used measures are Net Savings (or Net Benefits), Savings-to-Investment dimension (or Savings Benefit-to-Cost Ratio), Internal Rate of Return, and Payback Period. They are unchanging with the low LCC measure of evaluation if they use the same parameters and length of study period. make economists, certified value specialists, cost engineers, architects, quantity surveyors, operations researchers, and others might use any or several of these techniques to evaluate a project. The approach to reservation cost-effective choices for building-related projects can be quite similar whether it is called cost estimating, value engineering, or economic analysis.DESCRIPTIONA. Life-Cycle Cost Analysis (LCCA) MethodThe tendency of an LCCA is to estimate the overall costs of project alternatives and to select the design that hold ins the facility will provide the lowest overall cost of ownership consistent with its quality and function. The LCCA should be performed early in the design process sequence there is still a chance to refine the design to ensure a reduction in life-cycle c osts (LCC).The first and most challenge task of an LCCA, or any economic evaluation method, is to determine the economic effects of alternative designs of buildings and building systems and to quantify these effects and express them in dollar amounts.Viewed over a 30 year period, initial building costs account for approximately just 2% of the total, while operations and maintenance costs satisfactory 6%, and personnel costs equal ... ..., Design, and Development Process, Cost-EffectiveUse Economic Analysis to Evaluate facility Investment Decisions, Cost-EffectiveConsider Non-Monetary Benefits such as Aesthetics, Historic Preservation, Security, and Safety, Sustainable, Productive, operablePublicationsBuilding Economics Theory and Practice by Rosalie T. Ruegg and Harold E. Marshall. New York van Nostrand Reinhold, 1990.Energy Price Indices and Discount Factors for Life-Cycle Cost Analysis, Annual Supplement to vade mecum 135 by Sieglinde K. Fuller, Amy S. Rushing, and Laura I. Schultz. NISTIR 85-3273-19. Gaithersburg, MD theme Institute of Standards and Technology, April 2004. Also lendable from the DOE/FEMP Help Desk at 1-877-EERE-INF (1-877-337-3463).Engineering Economy by G. J. Thuesen and W. J. Fabrycky. assimilator Hall, 1993. ISBN 0-13-277491-7.GSA LEED Cost StudyLife-Cycle Costing Manual for the Federal Energy focus Program by Sieglinde Fuller and S.R. Petersen. NIST Handbook 135. National Institute of Standards and Technology, 1995. simplified Energy Design Economics by Harold E. Marshall and Rosalie T. Ruegg. NBS SP 544. Washington, DC National Bureau of Standards, January 1980.