Life Cycle Sustainability

Posted August 2009

Summary

Improving sustainability is certainly a laudable goal.

Using resources wisely, respecting the environment, improving building performance and enhancing the workspace all benefit us in both the short and long term.

Likewise, using our limited capital resources efficiently to achieve maximum return, especially in today's economy, is equally critical.

Life cycle costing is a proven technique to achieve true life cycle sustainability.


What is Life Cycle Costing (LCC)?

Life cycle costing (LCC) considers all significant costs of ownership over the economic lifespan of a facility or building.


Why is LCC important to project design, delivery and sustainability?

Future costs over the life of a facility - operations, maintenance and replacement - will typically match or exceed the initial cost of procurement in facilities. If staffing and other use costs are factored in, the initial procurement may be less than 20 percent of the total cost of ownership.

LCC is an important tool in managing costs throughout a facility's life and ultimately making more effective design decisions.


What is the cost of sustainability and LEED?

LEED implementation impacts initial cost, but effective sustainability initiatives can save significantly over the building's life cycle by reduced energy and utility consumption.

  • We spend vast sums of money to plan, design, construct, commission, operate, maintain, replace, renovate, alter, staff and ultimately decommission our facilities.
  • Isn't it sensible to consider all those costs when we plan and design?
  • Isn't it also sensible to use LCC to evaluate sustainability and LEED related decisions?

Suggested steps:

  1. Understand and better clarify the relationship between quality/performance and cost.

    Generally, selecting higher performing systems and components within a facility adds initial cost but leads to reduced future cost.

  2. Develop and implement LCC classification categories for alternates, eg.

    A - Alternate saves initial cost and saves overall life cycle cost
    B - Adds initial cost but saves overall life cycle cost
    C - Saves initial cost but breaks even over life cycle
    D - Adds initial cost but breaks even over life cycle
    E - Adds initial cost & life cycle costs but with benefits not readily quantifiable

  3. Make better use of risk analysis and risk management

    - to identify where risk exists and develop approaches to mitigate those risks.

  4. Owners need to be more aggressive in verifying the actual performance of facilities

    - using Post Occupancy Evaluation (POE) and ongoing Facility Condition Assessment (FCA).

  5. Be more "holistic" in assessing sustainability and LEED choices

    Typically mechanical engineers seek energy savings, architects make material choices, electrical engineers make lighting choices, etc. Sustainability decisions must become inter-disciplinary, so that the whole performs as well as the sum of the parts.

  6. The industry needs to improve education, training and cost information


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