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

Life-Cycle equal compend Life-cycle price analysis (LCCA) is a method for assessing the total terms of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially reusable when project alternatives that fulfill the same writ of execution requirements, but differ with respect to initial costs and operating costs, guide to be comp ared in order to take aim the one that maximizes net savings. For example, LCCA testament help determine whether the incorporation of a high-performance HVAC or glazing system, which whitethorn increase initial cost but result in dramatically reduced operating and maintenance costs, is cost-effective or not. LCCA is not useful for budget allocation.Lowest life-cycle cost (LCC) is the most straightforward and easy-to-interpret measure of stinting military rank. Some other commonly used measures are Net savings (or Net Benefits), Savings-to-Investment Ratio (or Savings Be nefit-to-Cost Ratio), Internal Rate of Return, and Payback Period. They are consistent with the Lowest LCC measure of evaluation if they use the same parameters and space of study period. Building 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 making cost-effective choices for building-related projects can be quite exchangeable whether it is called cost estimating, value engineering, or economic analysis.DESCRIPTIONA. Life-Cycle Cost abbreviation (LCCA) MethodThe purpose of an LCCA is to estimate the overall costs of project alternatives and to select the fancy that ensures 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 while there is still a chance to polish the design to ensure a reduction in life-cycle c osts (LCC).The low gear and most challenging task of an LCCA, or any economic evaluation method, is to determine the economic make of alternative designs of buildings and building systems and to quantify these effects and express them in dollar amounts.Viewed over a 30 course period, initial building costs account for approximately just 2% of the total, while operations and maintenance costs equal 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, FunctionalPublicationsBuilding 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, yearbook Supplement to Handbook 135 by Sieglinde K. Fuller, Amy S. Rushing, and Laura I. Schultz. NISTIR 85-3273-19. Gaithersburg, MD interior(a) imbed of Standards and Technology, April 2004. Also available from the DOE/FEMP Help Desk at 1-877-EERE-INF (1-877-337-3463).Engineering delivery by G. J. Thuesen and W. J. Fabrycky. Prentice Hall, 1993. ISBN 0-13-277491-7.GSA LEED Cost StudyLife-Cycle Costing Manual for the national Energy Management 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.