Whole Life-Cycle Costing Risk and Risk Responses

by Boussabaine, Abdelhalim; Kirkham, Richard

• ISBN13: 9781405107860
• ISBN10: 1405107863
• Edition: 1st
• Format: Hardcover
• Copyright: 2003-12-19
• Publisher: Wiley-Blackwell

Summary

With its mixture of established theory, best practice and innovation Whole-life costing: risk and risk responses offers a thorough grounding in both the theory and practical application of WLCC. It will help to improve accuracy of the assessments of long-term effectiveness of projects - now an essential tool for those performing risk analysis in construction investment.

Author Biography

Halim Boussabaine is a lecturer in the School of Architecture and Building Engineering at the University of Liverpool.

Table of Contents

Foreword	ix
Nigel Dorman
Preface	xi
Acknowledgements	xiii
Part I: Fundamentals of Whole Life-cycle Costing
Towards an Understanding of Whole Life-cycle Costing	3	(9)
Introduction	3	(1)
Whole life-cycle costing: a brief history	4	(3)
Defining whole life-cycle costing	7	(2)
Risk and uncertainty in WLCC	9	(1)
Subjectivity in WLCC	9	(1)
Summary	10	(2)
References	10	(2)
Whole Life-cycle Costing Risk Management	12	(16)
Introduction	12	(1)
Why has the construction industry failed to embrace WLCC?	12	(1)
Why risk assessment in whole life costing?	13	(2)
Data requirements in whole life-cycle costing and risk assessment	15	(2)
Specifying a comprehensive set of objectives and measures for each WLCC component	17	(5)
A framework for whole life costing risk management	22	(4)
Summary	26	(2)
References	26	(2)
Key Decisions in the Whole Life-cycle Costing Process	28	(9)
Introduction	28	(1)
Justification for investment and extraction of client requirements	29	(2)
Key decisions at the conceptual development stage	31	(1)
Key decisions at the detailed design stage	32	(1)
Key decisions at the production stage	33	(1)
Decisions at the operational stage	34	(1)
Decisions at the end of economic life stage	35	(1)
Summary	35	(2)
References	36	(1)
Fundamentals of Whole Life-cycle Cost Analysis	37	(19)
Introduction	37	(1)
Concepts of the time value of money	37	(1)
WLCC calculation models	38	(3)
Measuring economic performance in whole life-cycle costing	41	(8)
WLCC forecasting methods	49	(3)
Benchmarking and key performance indicators	52	(1)
WLCC key performance indicators	53	(1)
Summary	54	(2)
References	54	(2)
Whole Life Risk Analysis Techniques	56	(31)
Introduction	56	(1)
Risk analysis	56	(2)
Qualitative risk analysis	58	(1)
Risk matrices	58	(2)
Risk registers	60	(1)
Event trees	61	(1)
Influence diagrams	62	(1)
SWOT analysis	63	(1)
Brainstorming sessions	63	(1)
Quantitative risk analysis	64	(1)
Probabilistic approaches to risk	64	(7)
Simulation	71	(3)
Sensitivity analysis	74	(1)
Markov theory	74	(1)
Deterministic measures of risk	75	(2)
Mathematical and analytical techniques	77	(1)
Artificial intelligence and fuzzy set theory	78	(3)
Summary	81	(6)
References	82	(5)
Part II: Whole Life-cycle Costing: The Design Stage
Design Service Life Planning	87	(19)
Introduction	87	(1)
Estimation of service life for new structures	88	(7)
Estimation of the remaining service life for existing structures	95	(8)
Summary	103	(3)
References	104	(2)
Design Environmental Life-cycle Assessment	106	(16)
Introduction	106	(1)
Life-cycle assessment	107	(3)
Life-cycle assessment for design optimisation	110	(2)
LCA tools	112	(2)
Environmental life-cycle cost	114	(3)
Case study	117	(3)
Summary	120	(2)
References	121	(1)
Whole Life-cycle Cost Planning at the Design Stage	122	(20)
Introduction	122	(1)
Design whole life-cycle cost planning	122	(1)
An integrated framework for WLC budget estimation	123	(3)
Benchmarking WLC budgets	126	(2)
Whole life cost planning	128	(13)
Summary	141	(1)
References	141	(1)
Whole Life Risk and Risk Responses at Design Stage	142	(21)
Introduction	142	(1)
Design whole life risk	143	(3)
WLC risk identification and risk response measures at design/precontract stages	146	(8)
WLCC risk categorisation	154	(1)
Design WLCC risk quantification	154	(5)
Design risk response measures	159	(2)
Summary	161	(2)
References	162	(1)
Whole Life-cycle Costing of Mechanical and Electrical Services: a Case Study	163	(16)
Introduction	163	(1)
Modelling the whole life cost of air-conditioning systems	164	(2)
Data and methodology	166	(4)
Results and discussion	170	(4)
Summary	174	(5)
References	174	(5)
Part III: Whole Life-cycle Costing: Construction and Occupancy Stages
Whole Life Risk and Risk Responses at Construction Stage	179	(12)
Introduction	179	(1)
WLCC at the construction stage	179	(1)
WLCC risk during the construction stage	180	(1)
Typology of WLCC risk at the construction stage	180	(7)
Tools for allocating WLCC construction risk	187	(1)
Significance of WLCC risk at the construction stage	188	(1)
Monitoring WLCC risk throughout the construction programme	188	(1)
Construction WLCC risk responses	189	(1)
Summary	190	(1)
References	190	(1)
Whole Life Risk and Risk Responses at Operational Stage	191	(14)
Introduction	191	(1)
WLCC risks at operation stage	191	(1)
Identifying the WLCC operational risks	192	(1)
The maintenance cost centre	193	(2)
The energy cost centre	195	(1)
The facilities management cost centre	195	(4)
Identifying the operational stage WLCC drivers	199	(1)
Operational stage WLCC: risks and risk responses	199	(5)
Summary	204	(1)
References	204	(1)
Whole Life-cycle Costing during Operational Stage	205	(18)
Introduction	205	(1)
Operational stage WLCC models	206	(1)
The importance of operational costs in WLCC	206	(1)
Conceptualising the WLCC model	206	(1)
Existing WLCC models	207	(1)
Recording WLCC data during occupancy stage	208	(2)
Forecasting energy WLCC: a case study	210	(6)
New WLCC models for operational stage WLCC analysis	216	(4)
WLCC for an existing building: a case study of facilities management cost modelling	220	(2)
Summary	222	(1)
References	222	(1)
Whole Life Costing of Building Assets Occupancy: a Case Study	223	(20)
Introduction	223	(1)
Sources of occupancy costs	223	(2)
Set-up costs	225	(1)
Non-controllable occupancy costs	226	(1)
Controllable occupancy costs	226	(1)
Disruption costs	227	(2)
Data and methodology	229	(5)
Results and analysis	234	(7)
Summary	241	(2)
References	241	(2)
Index	243