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.
12-Aug-2025 - Title and wording updated to clarify the minimum number of options required
24-Oct-2024 - Updated for clarity
27-Mar-2024 - Wording and requirements clarified. Scheme applicability updated.
Information correct as of 31