Whole Life-Cycle Costing

Abdelhalim Boussabaine d'Ingénieur d'Etat, MSc, PhD is a Lecturer at the School of Architecture, at the University of Liverpool. He has written widely on cost modelling for researchers and professionals and is the lead author of Whole Life Cycle Costing: Risk and Risk Responses (Blackwell, 2004).

This book provides useful material for those not involved in the field.Building Services Journal

• Preface xiAcknowledgements xiiiPart I: Fundamentals of Whole Life-cycle Costing1 Towards an Understanding of Whole Life-cycle Costing 31.1 Introduction 31.2 Whole life-cycle costing: a brief history 41.3 Defining whole life-cycle costing 71.4 Risk and uncertainty in WLCC 91.5 Subjectivity in WLCC 91.6 Summary 10References 102 Whole Life-cycle Costing Risk Management 122.1 Introduction 122.2 Why has the construction industry failed to embrace WLCC? 122.3 Why risk assessment in whole life costing? 132.4 Data requirements in whole life-cycle costing and risk assessment 152.5 Specifying a comprehensive set of objectives and measures for each WLCC component 172.6 A framework for whole life costing risk management 222.7 Summary 26References 263 Key Decisions in the Whole Life-cycle Costing Process 283.1 Introduction 283.2 Justification for investment and extraction of client requirements 293.3 Key decisions at the conceptual development stage 313.4 Key decisions at the detailed design stage 323.5 Key decisions at the production stage 333.6 Decisions at the operational stage 343.7 Decisions at the end of economic life stage 353.8 Summary 35References 364 Fundamentals of Whole Life-cycle Cost Analysis 374.1 Introduction 374.2 Concepts of the time value of money 374.3 WLCC calculation models 384.4 Measuring economic performance in whole life-cycle costing 414.5 WLCC forecasting methods 494.6 Benchmarking and key performance indicators 524.7 WLCC key performance indicators 534.8 Summary 54References 545 Whole Life Risk Analysis Techniques 565.1 Introduction 565.2 Risk analysis 565.3 Qualitative risk analysis 585.4 Risk matrices 585.5 Risk registers 605.6 Event trees 615.7 Influence diagrams 625.8 SWOT analysis 635.9 Brainstorming sessions 635.10 Quantitative risk analysis 645.11 Probabilistic approaches to risk 645.12 Simulation 715.13 Sensitivity analysis 745.14 Markov theory 745.15 Deterministic measures of risk 755.16 Mathematical and analytical techniques 775.17 Artificial intelligence and fuzzy set theory 785.18 Summary 81References 82Part II: Whole Life-cycle Costing: The Design Stage6 Design Service Life Planning 876.1 Introduction 876.2 Estimation of service life for new structures 886.3 Estimation of the remaining service life for existing structures 956.4 Summary 103References 1047 Design Environmental Life-cycle Assessment 1067.1 Introduction 1067.2 Life-cycle assessment 1077.3 Life-cycle assessment for design optimisation 1107.4 LCA tools 1127.5 Environmental life-cycle cost 1147.6 Case study 1177.7 Summary 120Reference 1218 Whole Life-cycle Cost Planning at the Design Stage 1228.1 Introduction 1228.2 Design whole life-cycle cost planning 1228.3 An integrated framework for WLC budget estimation 1238.4 Benchmarking WLC budgets 1268.5 Whole life cost planning 1288.6 Summary 141References 1419 Whole Life Risk and Risk Responses at Design Stage 1429.1 Introduction 1429.2 Design whole life risk 1439.3 WLC risk identification and risk response measures at design/precontract stages 1469.4 WLCC risk categorisation 1549.5 Design WLCC risk quantification 1549.6 Design risk response measures 1599.7 Summary 161References 16210 Whole Life-cycle Costing of Mechanical and Electrical Services: a Case Study 16310.1 Introduction 16310.2 Modelling the whole life cost of air-conditioning systems 16410.3 Data and methodology 16610.4 Results and discussion 17010.5 Summary 174References 174Part III: Whole Life-cycle Costing: Construction and Occupancy Stages11 Whole Life Risk and Risk Responses at Construction Stage 17911.1 Introduction 17911.2 WLCC at the construction stage 17911.3 WLCC risk during the construction stage 18011.4 Typology of WLCC risk at the construction stage 18011.5 Tools for allocating WLCC construction risk 18711.6 Significance of WLCC risk at the construction stage 18811.7 Monitoring WLCC risk throughout the construction programme 18811.8 Construction WLCC risk responses 18911.9 Summary 190References 19012 Whole Life Risk and Risk Responses at Operational Stage 19112.1 Introduction 19112.2 WLCC risks at operation stage 19112.3 Identifying the WLCC operational risks 19212.4 The maintenance cost centre 19312.5 The energy cost centre 19512.6 The facilities management cost centre 19512.7 Identifying the operational stage WLCC drivers 19912.8 Operational stage WLCC: risks and risk responses 19912.9 Summary 204References 20413 Whole Life-cycle Costing during Operational Stage 20513.1 Introduction 20513.2 Operational stage WLCC models 20613.3 The importance of operational costs in WLCC 20613.4 Conceptualising the WLCC model 20613.5 Existing WLCC models 20713.6 Recording WLCC data during occupancy stage 20813.7 Forecasting energy WLCC: a case study 21013.8 New WLCC models for operational stage WLCC analysis 21613.9 WLCC for an existing building: a case study of facilities management cost modelling 22013.10 Summary 222References 22214 Whole Life Costing of Building Assets Occupancy: a Case Study 22314.1 Introduction 22314.2 Sources of occupancy costs 22314.3 Set-up costs 22514.4 Non-controllable occupancy costs 22614.5 Controllable occupancy costs 22614.6 Disruption costs 22714.7 Data and methodology 22914.8 Results and analysis 23414.9 Summary 241References 241Index 243