AN OVERVIEW OF LIFE‐CYCLE COSTING TECHNIQUES

Abstract

The objective of this paper is to give a brief overview of the techniques for life‐cycle costing and attempts to make a case for the need for chartered surveyors to become more proficient in the use of life‐cycle costing techniques. It also considers the importance of the client's role in life‐cycle costing; and discusses the assumptions that need to be made about the ‘life of the investment’. The paper also deals with the subject of discounting techniques and how they are influenced by inflation in prices, interest rates and risk. It includes discussion of the various costs and values which need to be considered in any life cycle costing study. In conclusion, there is a brief discussion of how life‐cycle costing techniques support an investment appraisal of a number of options that may be open to a client.

Citation

Hoar, D.W. (1988), "AN OVERVIEW OF LIFE‐CYCLE COSTING TECHNIQUES", Property Management, Vol. 6 No. 2, pp. 92-98. https://doi.org/10.1108/eb006685