Pipes, valves & fittings
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Nathan Gardiner of Brymec
Counting the cost
The government is encouraging the construction industry to move to a life cycle cost-based approach for public sector procurement. Life cycle costing is a technique that quantifies financial values for buildings from inception and often throughout the building’s life. Nathan Gardiner at Brymec, supplier to the building services sector, explains
has come out the other side stronger, leaner and more competitive. As the emphasis has shifted from mere survival to improving the construction process, there has been a sharper focus on life cycle costing (LCC). Calculating life cycle cost of a building enables HVAC contractors to gain a precise handle on the outlay involved in designing and installing equipment as well as maintaining a building, system or individual product.
H
aving survived a series of economic hammer blows over the last decade, the building services sector
There are many definitions of LCC, but the one that best captures what it’s all about can be found in Part 5 of ISO 15686, the international standard dealing with service life planning. This describes LCC as: “The economic assessment considering all agreed projected significant and relevant cost flows over a period of analysis expressed in monetary value. “The projected costs are those needed to achieve defined levels of performance, including reliability, safety and availability.” LCC takes into account not only the cost of designing and constructing a building, but also its operational costs. These include
energy (consumed for heating, lighting and cooling) and maintenance (to preserve, or improve performance). LCC can include: • Capital costs – equipment procurement and installation. • Operational and maintenance costs – such as energy and preventative, corrective, or deferred maintenance. • End-of-life costs – including the residual values of building services, mainly valued for scrap when replacement time arrives. Disposal also incurs costs because removing old services equipment requires labour. Finally, environmental concerns with old equipment (for example asbestos containing
Life cycle costing can help HVAC contractors gain a better idea about the outlay involved in designing and installing equipment and
maintaining a building, system or product
20 August 2018
www.heatingandventilating.net
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