Man 05 - Life Cycle Cost and Service Life Planning

Definition – Critical value - KBCN1006

Critical value aims to maximise whole life value of the building based on client requirements, and differs from minimising life cycle cost. This is a more specific analysis of how the building's ongoing maintenance and operation can impact business needs. For instance:

• Where any disruption to business is costly, a specification with long periods between maintenance cycles and reduced maintenance time may be desirable.
• Where maintaining aesthetics are important, a maintenance cycle may be based on aesthetic upkeep rather than functional lifespan.
• Where maximum recyclability and re-usability is important, an alternative, costlier specification may be required.
• Where capital costs are constrained, the specification with the lowest LCC may not be affordable, and instead, the best available option within the budget is chosen.

 

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Life Cycle Cost - KBCN0385

Life Cycle Costing (LCC) is a methodology that aims to generate a cash flow prediction over a given period of time for a building and undertake option appraisal studies to evaluate various solutions in order to determine the optimal option. An LCC should therefore consider:

• At least two design option appraisals and,
• Include comparison cash flow scenarios for each design stage option appraisal in order to determine the most appropriate option.

This allows project teams and clients to make informed choices about the long term financial implications of different design decisions.

24-Oct-2024 - Updated for clarity
27-Mar-2024 - Wording and requirements clarified.  Scheme applicability updated.

 

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Life cycle cost (LCC)- QS change - KBCN0605

If a Quantity Surveyor (QS) changes during a project, the new QS must demonstrate that subsequent criteria are met in order to gain the 2nd and 3rd credits. While the initial modelling data may not be available, the results and outputs given to the client team will be and can be used to remodel the LCC at the later stages of development using the new QS's data. Provided the new QS can model and determine the best option based on the latest project information, the 2nd and 3rd credits can still be attained. It may be necessary to repeat modelling where there has been a change of QS however, provided the intent of the issue and criteria are met, the credits can still be awarded.

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Life cycle cost – Multiple assessments on the same site - KBCN000003

Where there are multiple assessments on a site and a single life cycle cost (LCC) plan will be carried out, it is acceptable to use this plan as evidence provided that the results of the LCC plan can be applied to all of the assessed buildings and therefore may have a positive influence on the material specification of such buildings. Where the design of some assessments differ to the extent that the LCC plan cannot reasonably be applied, a separate LCC plan is necessary to achieve credits for this issue. Where multiple assessments are covered under a single LCC plan, there must be sufficient detail for each building to enable them to be adequately assessed. 

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