Man 02 - 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.

Elemental LCC and options appraisal timing - KBCN1889

The elemental LCC should be undertaken as part of the strategic options appraisal process and used to inform the selection of significant building elements and systems, such as the structure, envelope and building services. Completing the options appraisal after key design decisions have been finalised may reduce its effectiveness and limit the opportunity for the findings to influence the final design. However, the timing requirement can still be met, where the assessor agrees that there is a justification for the appraisal continuing into early RIBA Stage 3 (or equivalent), and clear evidence to demonstrate that:

The key options remained under consideration during the appraisal.
The findings were capable of influencing the final design solution.
The intended outcomes of the elemental LCC process have not been compromised.

In all cases, the outline elemental LCC plan and identification of relevant project options must be completed by the end of Concept Design

LCC – Competent person - KBCN1582

The technical manual provides the following definition: Competent person An individual who has acquired substantial expertise or a recognised qualification for undertaking life cycle costing studies and is not professionally connected to a single manufacturer. It is the responsibility of the assessor to determine whether an individual meets this definition, and they must provide evidence and justification (if necessary) in their assessment. BREEAM does not approve or hold a list of competent LCC practitioners.

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.

Life Cycle Cost – Option Appraisals - 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 (which could be for the base case plus at least one other option) 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.