Pay Now or Pay Later Controlling Cost of Ownership from Design Throughout the Service Life of Public Buildings (1991) / Chapter Skim
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3 Obstacles to Life-Cycle Cost Control
3 Obstacles to Life-Cycle Cost Control
Pages 15-22
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From page 15... ...
Second, there is no institutional mechanism -- beyond the federal government and federal buildinas -- for culling together data from many sources.44 Third, accounting systems used by 14 Organizations such as the Building Owners and Managers Association and the American Society for Heating, Refrigerating, and Air-Conditioning Engineers assemble data on aggregate operating costs of major types of buildings or major building subsystems.
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From page 16... ...
The ability of an analyst to find a lower life-cycle cost alternative is limited by the funds and time available for analysis. INSTITUTIONAL OBSTACLES The institutional context of building design and operating decision making raises substantial obstacles to the use of life-cycle cost analysis to successfully manage the costs of ownership.
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From page 17... ...
, or when government policies intended to achieve ends unrelated to the facility encourage the use of certain technologies or design options, an agency's decisions may not be made to minimize life-cycle costs of ownership. For example, a local or state government using funding available from a higher-level government agency to construct a public facility may seek to maximize construction costs in order to save on its own future maintenance expenses.
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From page 18... ...
This desire may spring from an effort to increase return on investment, to meet budgetary restrictions, or both. Because the relationships of design choices and O&M costs are poorly documented, and also because O&M costs are problems for the future, it is often difficult for designers to argue persuasively in favor of designs that will raise today's construction costs to achieve lower O&M costs tomorrow, even if total life-cycle costs can be lowered.
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From page 19... ...
Probably the most serious of these obstacles is the tendency toward deferral of maintenance efforts, which leads to premature deterioration and failure of building components, accelerating increases in costs for repair or renewal, and potential threats to safety and health. Because the relationships of maintenance effort to building performance and other costs of ownership are often difficult to demonstrate, professionals responsible for O&M activity often find their budgets to be below what they feel are adequate levels., Further, government agencies typically maintain a strict separation of responsibilities and budgets for construction versus operations and maintenance, so that managers responsible for one activity have little incentive to use their own resources to achieve savings in the other area.
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From page 20... ...
19The American Society for Heating, Refrigerating, and Air Conditioning Engineers Standard 90.2, ~Energy Efficient Design of New Low-Rise Residential Buildings,n specifies insulation values for the envelope of a building. Development of this standard required several years (Underwood, 19~)
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From page 21... ...
M., 1988, Use of Life-Cycle Costing in the Development of Standards, masters thesis, Naval Postgraduate School, Monterey, Calif., December.
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