20 Life Cycle Costing of Construction Products

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 report - KBCN1287

A homeowner's report should be undertaken for the occupants as the maintenance and operational costs will eventually be passed onto them. Therefore when putting together the report it should be assumed they are going to purchase the home. The homeowner's report should be made available to anyone wanting to rent the home before they make a decision on whether to rent the home.

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Homeowner’s life cycle cost report - KBCN1286

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SQCC reluctant to produce the reports in case their projections are inaccurate - KBCN1389

An LCC appraisal demonstrates that the homebuilder has taken care to identify the approximate replacement, operation, and maintenance costs of the asset. The forecasts are considered indicative and the information produced should not be solely used for decision making. Any assumptions, contingencies (in line with the methodology set in BS – ISO 15686-5:2008) should be declared in the report.

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