MAN 02 - Life Cycle Cost and Service Life Planning

Capital cost reporting and LCC measured area - KBCN0438

When assessing the Capital cost reporting and the LCC credits, the area to be considered should be the Gross Internal Floor Area (GIFA), according to the below RICS definition: Gross Internal Floor Area Gross Internal Floor Area is the area of a building measured to the internal face of the perimeter walls at each floor level, which includes:

Areas occupied by internal walls and partitions
Columns, piers chimney breasts, stairwells, lift-wells, other internal projections, vertical ducts, and the like
Atria and entrance halls with clear height above, measured at base level only
Internal open sided balconies, walkways, and the like
Structural, raked or stepped floors are treated as a level floor measured horizontally
Horizontal floors with permanent access below structural, raked or stepped floors
Corridors of a permanent essential nature (e.g. fire corridors, smoke lobbies, etc.)
Areas in the roof space intended for use with permanent access (BCIS)
Mezzanine areas intended for use with permanent access
Lift rooms, plant rooms, fuel stores, tank rooms which are housed in a covered structure of a permanent nature, whether or not above main roof level
Service accommodation such as toilets, toilet lobbies, bathrooms, showers, changing rooms, cleaners’ rooms and the like
Projection rooms
Voids over stairwells and lift shafts on upper floors
Loading bays
Areas with a headroom of less than 1.5m
Pavement vaults
Garages
Conservatories (BCIS)

And excludes:

Perimeter wall thickness and external projections
External open-sided balconies, covered ways and fire escapes
Canopies
Voids over or under structural, raked or stepped floors
Greenhouses, garden stores, fuel stores and the like in residential property
Open ground floors and the like (BCIS)

14.02.18 - KBCN content amended to extend the applicability to LCC and to refer to GIFA rather than GEA, to reflect current industry practice.

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

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.