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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2 Life-Cycle Cost and Its Control
2 Life-Cycle Cost and Its Control
Pages 5-14
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From page 5... ...
Sometimes social, technical, or economic changes render buildings effectively obsolete, and they are abandoned, demolished, or replaced entirely. Sometimes buildings achieve particular artistic, cultural, or historic distinction that leads to their preservation when they might otherwise be retired from service.
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From page 6... ...
Finding the minimum lifecycle cost alternative generally requires good understanding of the technical factors underlying the tradeoff being considered, reasonable estimates of the various costs involved, and a certain degree of ingenuity and jud~nent. Designers must be familiar with how choices of materials, facility configurations, and other design variables influence initial cost and future operations and maintenance.
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From page 7... ...
If functional performance is explicitly considered, this process may be termed value engineering, but some value engineering studies (particularly those associated with construction contractor incentive clauses) address construction costs only.
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From page 8... ...
. cost reductions2of'10' ' ercen't,2 com~re,'d: to,co,nventionaI' esi' s " " "''''''' '" ""' """"''" ' '.2 ' ,5 '''''.' ili ' .''''Optim 'tion: of he''utili:y''' em ' cial he 'HVAC'fh~tin~..ventilation.
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From page 9... ...
The committee noted that a growing body of evidence suggests that apparent reductions in life-cycle costs of air conditioning and lighting systems may be far exceeded by costs of lost productivity of the work force housed in a building when performance is not maintained (Woods, 1989; Brill, 1984~. Analysts suggest that lost work time, insurance costs, lost revenue, and other financial consequences of poor building performance should be explicitly considered in the life-cycle cost analysis, but doing so has not become common practiced - .
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From page 10... ...
Hoping to delay normal wear and aging of a facility, managers may set future spending to exceed targets defined in the life-cycle cost analysis. However, unless the initial analysis is somehow faulty, savings resulting from extended life of building components or avoided damages are unlikely to balance fully the increases in maintenance spending.
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From page 11... ...
While private sector owners are able 11
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From page 12... ...
However, in the interest of encouraging free competition, federal government agencies must typically avoid such direct statements and instead develop to recapture cost increases in the higher rents that historical or architecturally unique buildings may command, public agencies must rely on the sensitivity of the public at large and elected officials to recognize the value purchased with higher life-cycle cost. 42A relatively unsophisticated purchaser may give little explicit attention to these criteria, depending instead on building codes and standard design practices.
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From page 13... ...
generic criteria describing the performance required of building components. Agency professionals thus are challenged with developing generic criteria that will minimize life-cycle cost and remaining robust in the face of efforts to reduce the costs of building construction.
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