Life-cycle costing


Also found in: Financial.

Life-cycle costing

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.
References in periodicals archive ?
Impacts here are often represented as life-cycle costing, yet life-cycle costing only measures financial, non-environmental impacts.
The idea behind life-cycle costing (LCC) is simple enough.
Academic accountants have recently popularised the use of the term activity-based life-cycle costing. The wider concept of LCC has influenced policy in many areas of management in both the public and private sectors.
"Life-cycle costing should become an integral part of the design, planning, and maintenance of a building," Venktash says.
Although life-cycle costing is a valuable economic tool, establishing an accurate calculation can be complicated, because many variable must be considered.
The analysis is based on a study by Steve Kirk and Steve Garrett of Smith, [TABULAR DATA OMITTED] Hinchman and Grylls Inc., titled Life-Cycle Costing Case Study of Exterior Walls, which was presented at the National Concrete and Masonry Engineering Conference in 1995.