Life Cycle Costing in Construction: Current Trends and Emerging Directions

Abstract

The current construction climate in the UK is moving forward with a much greater attention on cost certainty, sustainability and adoption of innovative technologies. The UK Construction Strategy 2025 provides a clear direction towards achieving such goals by 2025. Life Cycle Costing (LCC) is one of successful techniques for identifying the total cost of ownership in construction assets. Even though the technique has 50 years of history, the application and the diffusion of the technique within the construction domain is comparatively limited. Therefore, this study aims to investigate the evolution and current status of LCC within construction context through Bibliometric Analysis of journal publications indexed in Web of Science database (1970-2020). A series of Contents Analyses was performed and visualisation maps were generated via VOSviewer. The findings proved that LCC has been absorbed into construction in late 90’s and there is a continuous rise in the global uptake from 2013 onwards. With limited budgets and growing demand for sustainability, an integrated methodology linking LCC, Life Cycle Assessment and Performance optimisation is apparently the way forward for LCC.

Совершенствование Методов Определения Стоимости Проектных Решений На Ранних Этапах Реализации Инвестиционно-Строительных Проектов

“…The methods and indicators of determining the cost correlate with the phases of the implementation of the ICP, for them there are uniform clear rules for assessing and controlling the cost [9][10][11][12][13][14][15][16][17]. So, at the pre-project stage, the estimated or approximate cost of construction is determined on the basis of analogous facilities and enlarged cost indicators, at the design stage, the estimated cost is determined based on current resource prices and (or) specially developed prices with their translation into current prices, and finally, at the stage of concluding contracts, the contract price is calculated, which takes into account actual and forecast inflation indices.…”

“…So, at the pre-project stage, the estimated or approximate cost of construction is determined on the basis of analogous facilities and enlarged cost indicators, at the design stage, the estimated cost is determined based on current resource prices and (or) specially developed prices with their translation into current prices, and finally, at the stage of concluding contracts, the contract price is calculated, which takes into account actual and forecast inflation indices. In many ways, they are determined depending on the type of financing of the construction object: budget or commercial [9,12,16].…”

Integration of life cycle assessment and life cycle costing within a BIM-based environment

“…The Standard ISO 15686-5:201 defines the life cycle costing as "cost of an asset, or its parts throughout its life cycle, while fulfilling the performance requirements" (ISO 15686-5:2017(ISO 15686-5: , 2017. Generally, it is a technique to calculate the overall cost of a project from construction, use, and deconstruction (Manewa et al, 2021). According to Korpi and Ala-Risku (2008), LCC can deliver 70%−90% cost confidence for operational expenditure (OPex) in the design phase, allowing for the comparison of different design options (Manewa et al, 2021), reducing potential risks, and predicting project success (Boussabaine and Kirkham, 2004).…”

“…Generally, it is a technique to calculate the overall cost of a project from construction, use, and deconstruction (Manewa et al, 2021). According to Korpi and Ala-Risku (2008), LCC can deliver 70%−90% cost confidence for operational expenditure (OPex) in the design phase, allowing for the comparison of different design options (Manewa et al, 2021), reducing potential risks, and predicting project success (Boussabaine and Kirkham, 2004). Despite the method's many benefits, its application is restricted due to a lack of data uniformity, client awareness, and methodology (Manewa et al, 2021).…”

Life Cycle Costing Methodology for Sustainable Construction

“…Life Cycle Costing (LCC) technique which has 50 years of history, is able to provide a very good estimate of the total cost of ownership in construction assets. In spite of its proven utility, its successful application and diffusion within the construction domain is scarcely seen (Manewa et al 2021). According to Olubodun et al (2010), only 50% projects have implemented the life cycle costing approach in the construction industry in UK.…”