Lifecycle Cost Analysis

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Lif e-Cycle Cost Analysis (LCCA)

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by Sieglinde Fuller National Institute of Standards and Technology (NIST) Last updated: 06-28-2010

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Achieving Sustainable Site Design through Low Impact Development Practices Within This Page

Life-cycle co st analysis (LCCA) is a metho d fo r assessing the Introduction to tal co st o f facility o wnership. It takes into acco unt all co sts o f Description acquiring, o wning, and dispo sing o f a building o r building system. Application LCCA is especially useful when pro ject alternatives that fulfill the Relevant Codes and same perfo rmance requirements, but differ with respect to initial Standards co sts and o perating co sts, have to be co mpared in o rder to Additional Resources select the o ne that maximizes net savings. Fo r example, LCCA will help determine whether the inco rpo ratio n o f a highperfo rmance HVAC o r glazing system, which may increase initial co st but result in dramatically reduced o perating and maintenance co sts, is co st-effective o r no t. LCCA is no t useful fo r budget allo catio n.

Balancing Security/Safety and Sustainability Objectives Designing Buildings to Resist Explosive Threats Distributed Energy Resources (DER) Extensive Green Roofs View All Related (15) View Resource Page Index

Lo west life-cycle co st (LCC) is the mo st straightfo rward and easyto -interpret measure o f eco no mic evaluatio n. So me o ther co mmo nly used measures are Net Savings (o r Net Benefits), Savings-to -Investment Ratio (o r Savings Benefit-to -Co st Ratio ), Internal Rate o f Return, and Payback Perio d. They are co nsistent with the Lo west LCC measure o f evaluatio n if they use the same parameters and length o f study perio d. Building eco no mists, certified value specialists, co st engineers, architects, quantity surveyo rs, o peratio ns researchers, and o thers might use any o r several o f these techniques to evaluate a pro ject. The appro ach to making co st-effective cho ices fo r building-related pro jects can be quite similar whether it is called co st estimating , value engineering, o r eco no mic analysis . BACK TO TO P

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