Life cycle costing is defined as “the cost of an asset, or its parts throughout its life cycle, while fulfilling the performance requirements’ (BS ISO 15686-5 Buildings & Constructed Assets – Service Life Planning – Part 5: Life Cycle Costing).
Fundamental to achieving Clients’ aspirations for sustainable, yet value for money buildings is the need to calculate the life cycle cost (LCC).
Rex Procter & Partners can provide the following services:-
- Undertake life cycle costing analyses in accordance with the Standardized Method of Life Cycle Costing for Construction Procurement, issued by the BSi as a UK supplement to the International Standard ISO 15686-5 noted above;
- Manage and co-ordinate the receipt of necessary information to prepare the reports to satisfy the MAN05 credit criteria under BREEAM 2011 for New Construction in order to obtain up to 3 credits.
Follow this link for full details of the credit criteria.
As experienced LCC practitioners, Rex Procter & Partners can provide this service in a timely and cost effective manner, subject to early involvement (see criteria 1-3 in link above) and the collective input of both the Client and design teams.
In providing the above services, we will ensure that the Client objectives of the study are achieved by a thorough checklist review at the briefing stage. Considerations would include:-
- Is the purpose to generate a cash flow prediction over a given time period for investment planning / sinking fund requirements?
- Is the purpose an option appraisal and at what level – eg whole building, elemental or component/ material level?
- Is the project a single new build or part of an estate, or is it an existing occupied building where just a costs in use cash flow is required excluding initial capital costs?
- Agree the methodology and specific scope of costs in the study including:
- Period of study, base dates, discount rates, real or nominal costs, TPI and location factor adjustments, net present value or other economic evaluation outputs;
- Construction, repair and maintenance, operational (eg cleaning, energy), occupancy (eg FF&E, ICT, security, catering) and end of life costs and exclusions e.g whole life costs such as land, finance, income, property management;
- Maintenance and component life periods.
- Agree the data sources and the application of risk and sensitivity analysis.
- Final report format and outputs eg current cash or NPV, IRR, graphical representations, cash flows to be smoothed or unsmoothed and extent of cost breakdowns to be incorporated
To discuss our Life Cycle Cost service, contact Andrew Cooper on 0113 243 3731.