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ADW Developments provides best practice solutions for the built environment
ADW Developments
About ADW DevelopmentsADW Developments is a company that
specialises in identifying and delivering best practice consultancy solutions
We help our clients assess the many design, specification and operation alternatives in order to derive a project solution that demonstrates value for money
MAN 05 Life cycle cost and service life planning CPD
Today’s CPD Session What is Life Cycle Costing
Why Carry out Life Cycle Costing
How to carry out Life Cycle Costing
BREEAM 2011 – MAN05: Life Cycle Costing
A worked example
Discussion
What is Life Cycle Costing
What is Life Cycle Costing ISO15686-1 (2000)
A technique that enables comparative cost assessments to be made over a specified period of time, taking into account all relevant economic factors both in terms of initial capital costs and future operational costs
Simple DefinitionWhat needs to be doneHow much will it cost When will it happen
What is Life Cycle Costing
ISO 15686 Buildings and Constructed Assets - Service Life Planning
Why carry out Life Cycle Costing
Why Carry out Life Cycle CostingCan be used to decide:
whether to accept or reject a project
optimise capital investment (optimise component selection or design)
choosing an optimal combination of interdependent systems - recognising the impact one building system will have on another at the same time
Why Carry out Life Cycle Costing
TIME
1
2
5
4
3MINIMUM LEVEL
CO
ND
ITIO
N FAILURE OCCURS
DETERIORATION STARTS TO
OCCUR
Why Carry out Life Cycle Costing
TIME
1
2
5
4
3
CO
ND
ITIO
N
MINIMUMLEVEL
DETERIORATION STARTS TO OCCUR
FAILURE OCCURS
How to carry out Life Cycle Costing
How to carry out Life Cycle CostingSimply...
Identify option Identify any alternatives Identify assumptions Identify future costsAdjust costs to allow for the time value of moneyCompute the LLC for various alternativesConsider uncertainty in input values Select option with the lowest discounted LLC
How to carry out Life Cycle Costing
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100
200
300
400
500
600
700
800
900
1,000
Year
0
Year
5
Year
10
Year
15
Year
20
Year
25
Year
30
Year
35
Year
40
Year
45
Year
50
Year
55
Year
60
Cumulative Componenet LCC @ Nominal Discountied Costs
How to carry out Life Cycle CostingSelect Alternative with the Lowest LCCSupporting Economic Measures
Payback (PB) Net Savings (NS) Savings to Investment Ratio (SIR) IRR
How to carry out Life Cycle Costing Sources for Service Life
Data HAPM Manual (Taylor &
Francis) BPG Building Fabric
Component Life Manual Building Services
Component Life Manual (CIRIA)
Building Services Component Life Manual (BLP)
The Green Guide to Specification (BRE)
Life Expectancy of Building Components (RICS/ BMI)
Guide M: Maintenance Engineering and Management (CIBSE)
Data provided by suppliers and trade associations information
Sources of Cost dataProfessional Quantity Surveyor’s databank and expert opinionData provided by suppliers and trade associations informationCost-In-Use Tables (PSA)Price Books including:
Hutchins Small Works and Maintenance Construction Cost Guide Volume One: Small Works
Spon's Mechanical and Electrical Services Price Book Spon's Architects' and Builders' Price BookBCIS Wessex Comprehensive Building Price BookBCIS Wessex Painting and Decorating Price Book
How to carry out Life Cycle Costing
How to carry out Life Cycle CostingAdjusting the Service Life
ISO 15686 Buildings and Constructed Assets - Service Life Planning
How to carry out Life Cycle CostingAdjusting cash amounts to present value (PV)What is discountingThe year on year cash flows are discounted to
account for the fact that these monies will be worth less in the future than they are today. When the monies are discounted they are expressed in (PVs)
What discount rate to apply?
How to carry out Life Cycle CostingX/ (1+r)n
When
X= input value
r = rate of interest or discount rate
n = number of years
More information is available on this in the "Green Book" (Treasury 1997, 2000), Appraisal and Evaluation in Central Government, HM Treasury.
Life Cycle Costing for BREEAM 2011
BREEAM 2011 – MAN05
To recognise and encourage Life Cycle Costing and Service Life Planning3 credits are available under the BREEAM New
Construction 2011 schemeThese credits are intended to improve design, specification
through-life maintenance and operation of a built asset
BREEAM 2011 – MAN05 First Credit
A critical appraisal has been completed at the feasibility stage
Building Level LCC at RIBA Stage C/D over a 60 year period of analysis, shown in real and discounted cash flow terms
Includes: Construction Operation - includes as a minimum, utilities, cleaning, management
costs, Maintenance - includes as a minimum, planned maintenance,
replacements and repairs costs Occupancy Disposal
BREEAM 2011 – MAN05Second Credit
Component Level LCC analysis (at least 2)
Envelope: e.g. cladding, windows and/or roofingServices: e.g. heat source, cooling source and/or
controlsFinishes: e.g. walls, floors and/or ceilingsExternal spaces
BREEAM 2011 – MAN05Third Credit
Model outlined in the first LCC credit is updated during RIBA Work Stages D/E
The results of the study must be implemented in the specification, design and final construction of the assessed building.
A maintenance strategy is developed, informed by the LCC analysis
Contact Us
Contact Us ADW Developments Ltd has developed an LCC Model and procedure which
meets the requirements for the BREEAM appraisal
We can demonstrate that the selection of the most appropriate strategy has been made in order to improve design, specification, through-life maintenance and operation
The analysis carried out meets the requirements detailed in the BREEAM Technical Manual to achieve three BREEAM credits under the Man 05, Life Cycle Cost and Service Life Planning Credits
Please contact Anthony Waterman [email protected]: +44 (0)7825 782 999