Also found in: Financial.
A technique that enables a comparative cost assessment of a building structure or infrastructure to be made for various investment alternatives, over a specified extendede period of time, taking into account all relevant factors, both in terms of initial capital costs and future estimated cost. This analysis should include the initial cost, maintenance costs, and replacement costs based on the life expectancy of its components. The technique usually compares alternative components and alternative systems. The objective is to identify the most economic overall choice over the life of the building or infrastructure.