Whole Life Appraisal for Construction

Roger Flanagan is the author of Whole Life Appraisal for Construction, published by Wiley. Carol Jewell is the author of Whole Life Appraisal for Construction, published by Wiley.

• Acknowledgements viiPreface viii1 Whole life appraisal – an introduction 11.1 Objective 11.2 What is whole life appraisal (WLA)? 11.3 Why bother with whole life appraisal? 21.4 Is whole life appraisal different to whole life costing (WLC)? 21.5 Who uses WLA and WLC? 21.6 When should WLA be undertaken? 31.7 What is the link between best value and best price? 31.8 Nobody can accurately forecast the future, so how reliable are the results of a whole life appraisal exercise? 41.9 How can money spent at different times over the life of a facility be incorporated into WLA? 41.10 What discount rate should be used? 41.11 How is inflation taken into account in the calculations 51.12 Why isn’t WLA used more widely? 51.13 So why bother now with WLA? 61.14 Has the computer made a difference to the calculation of WLA? 71.15 What has happened overseas? 71.16 The whole process seems to be surrounded by jargon; how can WLA be made simpler to understand? 81.17 Where does sustainability fit with WLA? 81.18 Have the Construction Design and Management Regulations (CDM) 1994 changed the waywhole life issues are considered? 81.19 How does WLA fit with facilities/asset management 91.20 What is service life planning? 91.21 Integrated Logistic Support (ILS) is a term used by the defence and aerospace industries; is WLA used in ILS? 91.22 What is the difference between running costs and operating and maintenance costs? 101.23 How does the residual value work? 101.24 Should disruption costs be included in the WLA? 102 Whole life appraisal: preliminary concepts 112.1 Introduction 112.2 Whole life appraisal and construction 152.3 Performance of systems, components and materials 172.4 Design with whole life appraisal 182.5 Whole life appraisal for new and old facilities 203 An overview of whole life appraisal 233.1 The importance of whole life appraisal 233.2 The adoption of whole life appraisal 233.3 The balance between fixed and variable costs 263.4 Different client motivations for the use of whole life appraisal 303.5 The implementation of a whole life appraisal system 343.6 The output of whole life appraisal 403.7 Some unresolved problems 444 Whole life appraisal at the planning and design stage 454.1 Introduction 454.2 The components of whole life appraisal 484.3 Whole life costing and cost management 544.4 Appendix to Chapter 4 585 Discounting and the time value of money 655.1 Introduction 655.2 Discounting 675.3 Choosing between alternative options 785.4 Internal rate of return (IRR) 835.5 Inflation 845.6 Risk, uncertainty and sensitivity analysis 895.7 Summary 915.8 Appendix A to Chapter 5 925.9 Appendix B to Chapter 5 936 Data sources for whole life appraisal 956.1 The importance of improving data accuracy 956.2 Shared data 966.3 Computer aided design (CAD) 976.4 Basic data sources 976.5 Running costs of different types of buildings 1016.6 Data on durability and life expectancy of materials 1087 Operations and maintenance 1157.1 Maintenance 1157.2 Energy in buildings 1218 A practical approach to whole life appraisal for construction 1298.1 Introduction 1298.2 Initial problems 1298.3 Using the weighted evaluation technique as a decision-making tool 1308.4 A whole life approach involves a feedback system 1348.5 Whole life analysis 1368.6 Whole life planning 1378.7 The relationship between whole life analysis and whole life planning 1388.8 Cost relationships 1408.9 The sequence of whole life analysis, whole life planning and whole life management 1428.10 Documentation format for whole life planning 1448.11 Costs and benefits 1479 Taxation and whole life appraisal 1499.1 The implications of taxation and grants for whole life cost 1499.2 Capital allowances for facilities 1509.3 Capital allowances for machinery, plant and equipment 1539.4 Capital savings allowances and energy savings 15410 Integrated logistic support (ILS) 15910.1 What is ILS? 15910.2 Where did ILS come from? 15910.3 What is the difference between ILS and whole life appraisal? 16010.4 ILS and construction 16010.5 Why use ILS? 16110.6 The concepts of ILS 16210.7 The main steps of ILS 16210.8 The benefits of ILS 16310.9 An example of ILS 16310.10 Summary for ILS 16411 Summary and conclusions 165Glossary of terms used in whole life appraisal 169References and bibliography 175Index 181