Description: Recommendations are made on the use and implementation of life cycle costing techniques in the construction industry. It is concluded that the optimum use of life cycle costing is as a management system over the fixed asset life cycle, and that it is especially applicable to the control of overall plant and machinery costs. It has many potential beneficial uses throughout the asset life cycle, as a management tool to minimise costs of asset ownership and operation. At present, the construction industry and its clients do not make wide use of the life cycle costing technique and, where it is used, it is often applied merely to the selection of design alternatives for long-life, low-energy-consuming assets, where its benefits are questionable. Life cycle costing techniques are reviewed and explained in a detailed step-to-step process.

Contents: List of Figures, List of Tables, Recommendations, 1 Introduction, 1.1 The development of life cycle costing, 1.2 Practical objections to life cycle costing, 1.3 The future of life cycle costing, 2 Uses of life cycle costing, 2.1 Introduction 12, 2.2 Background and existing uses, 2.3 The selective use of life cycle costing, 2.4 Asset categories, 2.5 Life cycle costing as a management tool, 2.6 Life cycle costing as a management system, 2.7 Databases, 2.8 Implementation, 3 Cost control over the fixed asset life cycle, 3.1 Introduction, 3.2 Project initiation, 3.3 Preliminary appraisal and priority assessment, 3.4 Project appraisal and selection of alternatives, 3.5 Detailed design, 3.6 Review on completion of design, 3.7 Tendering and quotations, 3.8 Contract management, 3.9 Commissioning and run-up, 3.10 Post-completion project appraisal, 3.11 Operation and maintenance, 3.12 Rehabilitation or disposal and replacement, 4 Appraisal and discounting techniques, 4.1 Discounted cash flow, 4.2 Costs and benefits, 4.3 Discounting techniques, Appendix 1, Appendix 2, Appendix 3, Appendix 4, Appendix 5, Appendix 6, Glossary, References, Bibliography