An appraisal of the level of application of life cycle costing within the construction industry in the UK

Abstract

Purpose -Life cycle costing (LCC) is a means of comparing design options on the basis of their whole life cost with the objective of providing value for money for the life of the asset. The process involves estimating all the cost elements of the particular subject and translating them into a cost at a particular point in time, the present, enabling comparison. Despite being in theory, a useful tool LCC appears to experience varied levels of usage. Varied opinions have been expressed about the level to which LCC is used but there is no doubt that private finance initiatives and public-private partnerships procurement routes have seen an increase in the use of the technique. The paper aims to appraise levels of application within the construction industry, in particular the paper will evaluate the existence of motivators and barriers which affect the decision to undertake LCC analysis in order to identify what actions can be taken to increase usage levels. Design/methodology/approach -Following a literature review, empirical research was undertaken to collect data from construction professionals regarding their views, opinions and experiences of LCC. In total, 100 questionnaires were sent to construction and professionals in the North West of England. Findings -The paper suggests that whilst just over 50 per cent of the sample implemented LCC the data also identified the lack of understanding of the technique and the absence of a standardised methodology as key limiting factors to wider implementation. Research limitations/implications -Limitations in both the data collection strategy and sample size raise the issue that the results obtained cannot necessarily be deemed to be representative of the construction industry as a whole but merely of the sample and further research is recommended. Originality/value -The paper concludes that continued professional development for construction professionals and clients alike together with the development of standardised procedures may enhance usage levels.

From Tool-Making to Tool-Using – And Back: Rationales for Adoption and Use of LCC

“…Our findings also confirm what has previously been shown, that individuals across the industry have developed their own way of conducting an LCC (Olubodun, Kangwa, Oladapo, & Thompson, 2010). Taken together, we discern a self-supportive pattern, where LCC is performed by the project group to legitimize decisions and strengthen support for a preferred design solution.…”

“…In the literature, the limited adoption of LCC in practice is often seen as resulting from a lack of standards, formal guidelines and useable software (Arditi & Messiha, 1999;Olubodun, Kangwa, Oladapo, & Thompson, 2010;Goh & Sun, 2016). However, this lack of consistent rules did not stop our respondents from performing LCC calculations, as we identified an established use of LCC among them.…”

A framework of initiatives for successful application of life cycle costing (LCC) in industrialised building system (IBS) in Malaysian construction industry

“…However, the sustainably designed building can reduce the higher production cost which generally high consumption of the energy during factory production, and additional energy during the construction phase, furthermore, more than half of total energy consumed in operating and maintenance. Increasing interest in LCC provides better understanding [2] for the design process of IBS buildings, which cost factors are considered in building life cycle.…”

“…While construction industry nowadays, needs to respond to the greater demand for social, economic and environmental improvements of the industry, the price or cost to adhere such project, somehow is a burden to the contractor [1]. If sustainable design and construction are approached holistically, using integrated design with modern materials and systems, it is entirely possible to create a built environment that is both sustainable and economically viable [2]. There are many terms used to refer to the ultimate cost or total cost of building ownership.…”

Artificial neural networks incorporating cost significant Items towards enhancing estimation for (life-cycle) costing of construction projects

“…LCCA compares different design (sub)elements, specifications and materials on the basis of their whole-life installation, operation, maintenance and residual (decommissioning) costs. LCC analysis assesses all cost components, converting them into a cost at a specific point in time, namely the present (Olubodun et al 2010). Client's increasingly require such whole-costs for proposals.…”