6.3 Life Cycle Costing

01 Occupant’s life cycle cost report: crit 2 - KBCN1656

Crit 2 currently says: An Occupant's report, based on the most up-to-date LCC analysis (see crit 1), is available to potential occupants prior to a commitment to purchase. However Crit 2 should say: An Occupant's report, based on the most up-to-date LCC analysis (see crit 1), is available to potential owner prior to a commitment to purchase. This will  be corrected in the next reissue of the technical manual.

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Accuracy of life cycle cost projections - KBCN1295

The aim of LCC credits is to encourage homebuilders into identifying enhanced and value-added design and specification to improve the overall quality of the building stock. The design appraisals can help improve upon the design and specification selection should initial projections be too high. HQM LCC credits are not intended to be used for comparison between developments, given the differences in assumptions made in each appraisal. With the introduction of this credit into the HQM, it is expected that projections on durability of elements/ components and forecast for maintenance and operation will improve industry knowledge. This will also encourage transparency in the industry and this credit aims to encourage knowledge-transfer of best practice.

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Homeowner’s life cycle cost report - KBCN1286

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LCC – Competent person or Suitably Qualified Cost Consultant (SQCC) - KBCN1803

The definition of a competent person, or SQCC as named within HQM or BREEAM New Construction Residential, has been updated to provide further clarification and is now defined as set out below: An individual achieving all the following items can be considered to be ‘suitably qualified’ for the purpose of completing the LCC credits:

1. Holds a recognised qualification for undertaking life cycle costing studies and/or a degree/postgraduate diploma or equivalent qualification in quantity surveying, construction economics or other construction-related subject.
2. Has acquired substantial expertise through a minimum of three years relevant experience (within the last five years). The experience must clearly demonstrate a practical understanding of life cycle costing in construction and the built environment and show an ability to identify and demonstrate cost and performance enhancement measures.
3. Is not professionally connected to a single manufacturer

A CV should be provided demonstrating their experience and knowledge against the above requirements. Note for Non-Domestic New Construction V7: The intention of the above is to provide clearer guidelines for assessors on who would be considered a suitable professional to carry out LCC option appraisals. For New Construction V7.0, flexibility may be applied, and the definition can be considered to be met where point 3 and either point 1 or 2 of the above is demonstrated. In addition, where it can be demonstrated that the LCC consultant was appointed prior to the release of KBCN1803 (18.10.2025), and that appointment was made based on the assessor’s professional judgement of what constitutes ‘recognised qualification’ and/or ‘substantial expertise’ at that time, similar flexibility may be applied. In such cases, sufficient justification and supporting evidence (e.g. CV and rationale for appointment) must be provided to demonstrate that the consultant was reasonably considered competent in line with the intent of the criteria at the time of appointment. The definition will be updated in the next release of the technical manual (V7.1); therefore, any assessments under New Construction V7.1 and subsequent versions will need to meet all three requirements, and no such flexibility will apply.

26 May 2026: Note added regarding application against NC V7.

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