This guide supersedes BG5/2008 Whole Life Costing. It presents a simple process for the practical calculation of life cycle costs, with examples to show how the different stages of the process relate to one another, to show how the results are obtained and what they really mean. Life cycle costing focuses on economic assessment using profiles of current and future costs and benefits to arrive at a discounted net present value of the life cycle costs.
There is increasing emphasis being placed on life cycle costing studies as part of the decision-making process for asset management, new-build, refurbishment and plant replacement projects so that all the costs can be taken into account rather than just those for capital investment. Life cycle costing is one of the strategic priorities of the Government Construction Strategy 2016-2020.
Life cycle costing complements the move towards use of information models to improve asset and project management. The appreciation of life cycle issues is fundamental to the use of BIM Level 2 as mandated by the UK Government on its centrally procured projects and it is expected that similar standards will be applied by other parts of the public sector and by many private sector clients and asset owners.
The guide is compatible with the parts of ISO 15686 that provide recommendations for life cycle costing and will be relevant to clients, estate managers, engineers, consultants, quantity surveyors or cost advisers.
This guide is available as part of BSRIA’s carbon and cost analysis set.