Life Cycle Costing for Facilities

by Dell'Isola, Alphonse; Kirk, Stephen J.

• ISBN13: 9780876297025
• ISBN10: 0876297025
• Edition: 1st
• Format: Hardcover
• Copyright: 2003-05-30
• Publisher: RSMeans

Summary

Owners and facility designers are frustrated with traditional cost-cutting approaches that yield the cheapest product, but end up sacrificing quality. Life Cycle Costing (LCC), properly done, enables them to achieve both: higher quality (incorporating innovative design) and costs within overall budget constraints. The authors, widely recognized leaders in these techniques, show how LCC can work for a broad variety of projects -- from several types of buildings, to roads and bridges, HVAC and electrical upgrades, and materials/equipment procurement. 16 Case Studies show how to apply LCC to particular facility types and building components, in new construction and remodeling.

Author Biography

Alphonse J. Dell'Isola, PE, HRICS, FSAVE, CVS-Life, is an award-winning consultant in LCC, value engineering (VE), project management, and project cost control Dr. Stephen J. Kirk, FAIA, FSAVE, LEED AP, CVS, is President of Kirk Associates, LLC

Table of Contents

Preface and Acknowledgments	ix
About the Authors	xi
How to Use This Book	xiii
Management Briefing	xv
PART 1: Life Cycle Costing	1	(252)
Chapter 1: Introduction to LLC	3	(24)
Recent Trends that Support the Need for Life Cycle Costing	3	(4)
LCC for Design Professionals	7	(5)
What is Life Cycle Costing?	12	(3)
Life Cycle Costing Logic	15	(2)
Application in the Design Process	17	(5)
Relationship of LCC to Value Engineering	22	(2)
Program Requirements	24	(3)
Chapter 2: Life Cycle Costing Fundamentals	27	(28)
Time Value of Money	28	(13)
Life Cycle	41	(1)
Discount Rate	42	(1)
Dealing with Inflation and Cost Growth	43	(4)
Analysis Period	47	(2)
Present Time	49	(1)
Costs	49	(6)
Chapter 3: Economic Analysis	55	(10)
Terminology	55	(2)
Office Economic Analysis Example S	S7
Types of Economic Analysis	57	(3)
Benefits and Costs	60	(1)
Economic Analysis Approaches	61	(4)
Chapter 4: Life Cycle Cost Analysis	65	(14)
Life Cycle Cost Analysis	65	(1)
Present Worth Method Calculations	65	(2)
Annualized Method Calculations	67	(1)
LCCA Calculation worksheets	68	(4)
LCCA Spreadsheet	72	(4)
More Complex LCC Analyses	76	(3)
Chapter 5: Estimating Life Cycle Costs	79	(46)
Estimating Framework	80	(3)
Initial Costs	83	(9)
Energy Costs	92	(11)
Maintenance, Repair, and Custodial Costs	103	(12)
Alteration and Replacement Costs	115	(4)
Associated Costs	119	(6)
Chapter 6: Economic Risk Assessment	125	(28)
Range of Probable Values	127	(2)
Confidence Index (CI) Approach	129	(24)
Chapter 7: Conducting an LCCA Study	153	(32)
Identifying Economic Criteria	154	(1)
Generating Design Alternatives	155	(2)
Preliminary Evaluation	157	(1)
Evaluating Life Cycle Costs and Benefits	158	(4)
Selecting the Design Alternative	162	(10)
Alternative Ranking/Selection	172	(1)
Example LCCA Study	172	(13)
Chapter 8: Case Studies	185	(52)
LCCA Case Study 1: Office to Museum Renovation	186	(2)
LCCA Case Study 2: District Court Consolidation	188	(1)
LCCA Case Study 3: Branch Bank Prototype Layout	189	(1)
LCCA Case Study 4: Health Care Facility Layout	189	(3)
LCCA Case Study 5: Daylighting	192	(1)
LCCA Case Study 6: Glass/HVAC Replacement	193	(1)
LCCA Case Study 7: Lighting System	194	(1)
LCCA Case Study 8: Elevator Selection	194	(1)
LCCA Case Study 9: Equipment Purchase Examples	195	(2)
LCCA Case Study 10: Construction and Service Contracts	197	(2)
LCCA Case Study 11: Chemical Stabilization Plant-Dryers vs. Windows	199	(1)
LCCA Case Study 12: Campus University Planning Using LCC and Choosing by Advantages	200	(3)
LCCA Case Study 13: High School Trade-Off Analysis of Initial vs. Staffing Costs	203	(1)
LCCA Case Study 14: Highway for Regional Transportation Authority	203	(1)
LCCA Case Study 15: Life Cycle Cost Assessment -HVAC System for a High School	203	(1)
LCCA Case Study 16: Lease vs. Build LCC Analysis	204	(1)
Case Study Figures	205	(32)
Chapter 9: Management Considerations	237	(16)
Strengths and weaknesses of Life Cycle Costing	238	(1)
Level of Effort	239	(1)
Planning the Overall Study Effort	239	(8)
Contingency Planning	247	(6)
PART 2: Life Cycle Cost Data	253	(50)
Introduction to Cost Data	255	(2)
Maintenance & Replacement Estimating Data
Structural	257	(3)
Architectural	260	(8)
Mechanical	268	(21)
Electrical	289	(8)
Equipment	297	(1)
Sitework	297	(6)
PART 3: Appendix	303	(72)
Appendix A: Economic Tables	305	(14)
Appendix B: Energy-Estimating Data	319	(10)
Appendix C: Elevator and Escalator LCC Considerations	329	(8)
Appendix D: Sample LCC Scope of Services	337	(4)
Appendix E: Life Cycle Costing Forms	341	(16)
Appendix F: Selected Government Requirements for LCC	357	(12)
Appendix G: Historical Development of LCC	369	(6)
PART 4: Bibliography, Glossary & Index	375
Bibliography	377	(7)
Glossary	384	(5)
Index	389