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Life Cycle Costing - Theory and Practice

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A two-day training course covering the basics of life cycle costings and advanced application of the technique in realistic situations. There is an option to just attend day 1.

      • 12 February 2020 - 9am1 day
      • 1st delegate: £375.00 (£295.00 for Members)Subsequent delegates: £345.00 (£265.00 for Members)
      • Old Bracknell Lane West, Bracknell, Berkshire RG12 7AH
      • Book
      • 12 February 2020 - 9am2 days
      • 1st delegate: £640.00 (£495.00 for Members)Subsequent delegates: £580.00 (£435.00 for Members)
      • Old Bracknell Lane West, Bracknell, Berkshire RG12 7AH
      • Book
      • 12 May 2020 - 9am1 day
      • 1st delegate: £385.00 (£305.00 for Members)Subsequent delegates: £360.00 (£280.00 for Members)
      • BSRIA North: BSRIA Limited 68 Walton Summit Road Walton Summit Centre Bamber Bridge Preston Lancashire PR5 8AQ UK
      • Book
      • 12 May 2020 - 9am2 day
      • 1st delegate: £655.00 (£510.00 for Members)Subsequent delegates: £610.00 (£460.00 for Members)
      • BSRIA North: BSRIA Limited 68 Walton Summit Road Walton Summit Centre Bamber Bridge Preston Lancashire PR5 8AQ UK
      • Book
      • 24 June 2020 - 9am1 day
      • 1st delegate: £385.00 (£305.00 for Members)Subsequent delegates: £360.00 (£280.00 for Members)
      • Old Bracknell Lane West, Bracknell, Berkshire RG12 7AH
      • Book
      • 24 June 2020 - 9am2 days
      • 1st delegate: £655.00 (£510.00 for Members)Subsequent delegates: £610.00 (£460.00 for Members)
      • Old Bracknell Lane West, Bracknell, Berkshire RG12 7AH
      • Book

Overview

This is a two-day course taking delegates from the very basics of life cycle costing, through to advanced application of the technique in realistic situations. There is an option just to attend Day 1, which will explain the basics and give delegates an appreciation of what life cycle costing can do.

Life cycle costing (LCC) enables asset managers, project sponsors and delivery teams to evaluate the combined capital and operating costs of different ways of managing built assets and delivering construction projects. Assets can range from entire estates down to specific systems and components and projects can range in size from small plant replacements, to major refurbishment and new-build works. But the same life cycle costing principles must be applied in each case.

Thinking of projects in terms of TOTEX (total expenditure = CAPEX + OPEX) is important to know which solution to the brief is the most economic over the long term. Life cycle costing is one of the strategic priorities of the Government Construction Strategy 2016-2020 and LCC is part of the best-value assessment required by Treasury guidance. LCC also helps projects gain BREEAM credits.

Day 1 of this course introduces the key concepts behind LCC and takes delegates through the process of calculating life cycle costs, using group-work to help delegates start to put theory into practice.

Day 2 covers some of the more advanced techniques used in life cycle costing such as modelling complex life cycles and sensitivity analysis, and some of the more advanced applications such as prioritising projects within a limited budget and using LCC data to predict actual expenditure profiles.

Some of the questions that life cycle costing is able to answer are:

  • For my office refurbishment project, should I install high-cost low-maintenance fittings or low-cost high-maintenance fittings?
  • If my boiler plant needs replacing, then what type of boiler should be most cost-effective over the next 20 years?
  • If my new product is designed to last longer than the old product but is more expensive to buy, how do I convince buyers that this is cost effective?
  • If my capital budget has just been cut, how do I decide which projects still get approval?

The course includes delegate examples so attendees can practise using life cycle costing techniques in a safe environment. On Day 2, it introduces attendees to the BSRIA Life Cycle Cost Calculator – a spreadsheet based tool for calculating and presenting life cycle costs.

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Who should attend

This course is aimed at clients, facility managers, designers and contractors who need to calculate life cycle costs to help make better decisions regarding new-build projects, refurbishment projects and building maintenance.

The course will help those commissioning life cycle cost studies to understand what their LCC consultants have reported back to them.

The course will also help product manufacturers to calculate the life cycle costs of their products against generic competitor offerings.

Aims

The key learning outcomes of Day 1 are as follows:

  • Develop understanding of what life cycle costing involves
  • Understand what sources of information are available for activity costs and component life expectancies
  • Understand the Net Present Value technique for calculating life cycle costs for both one-off and recurring costs.

Delegates use group-work to put the theory of LCC into practice.

The key learning outcomes of Day 2 are as follows:

  • An appreciation of the complexity of sensitivity analysis, including the limits of what can be calculated without advanced statistical techniques
  • A deeper understanding of how life cycle costs can be interpreted and used, including the use of savings-to-investment ratios, prioritising projects within a limited budget, and using life cycle cost information to calculate forward expenditure predictions

Delegates use hands-on examples to learn how these advanced techniques can be used.

Delegates are also introduced to spreadsheet calculation of life cycle costs.

Content and timings

DAY 1
0900 Registration and coffee
0930 Session 1: Introductions. The concept of life cycle costing
1045 Session 2: Setting the scene for the life cycle costing models
1200 Session 3: Project timelines. Net Present Values for one-off costs
1245 Lunch
1330 Session 4: Cost categories and sources of information. NPVs for recurring costs
1530 Session 5: Component life expectancies
1630 Close

DAY 2
0900 Registration and coffee
0930 Session 6: Review of Day 1
1000 Session 7: Coping with different study periods
1100 Session 8: Dealing with uncertainty
1245 Lunch
1330 Session 9: Interpreting the results of LCC calculations
1500 Session 10: A short introduction to life cycle environmental impacts
1530 Session 11: Using a spreadsheet to calculate life cycle costs
1630 Close

Registration and coffee from 9.00am. The course will start at 9.30 am and finish at 16.30pm. Lunch will be provided and there will be a morning and afternoon tea break.

Documentation

Delegates are provided with a copy of all the slides presented, BSRIA publication BG 67/2016 Life Cycle Costing as well as a BSRIA CPD Certificate.

Delegates attending Day 2 receive a copy of the BSRIA LCC Calculator Spreadsheet.

Lecturers

David Churcher is an expert on management processes within the building sector. He has authored BSRIA publications on whole life costing, customer-supplier relationships and has also delivered training and workshops on supply chain management, innovation in construction, and Soft Landings. Read David's full profile

Peter Tse has extensive experience in the field of electrical design. He joined BSRIA in 2009 to provide fact based guidance and consultancy services that will help those involved in designing, constructing and operating services in buildings to improve cost, quality, time and predictability of performance. Read Peter's full profile

In-Company

This course is also avaiable in-company. To request a quote to hold one of our training courses at your offices please conatct the training manager Mike Lee

Product details

  • Publisher: BSRIA
  • CPD Hours: 12