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The purpose of this paper is to evaluate the accuracy of life cycle cost analysis (LCCA) for institutional (higher education) buildings as a predictor of actual realised facility costs.

Research methodology includes a comprehensive literature review to identify issues, best practices and implementation of LCCA in the construction industry. A case study was conducted to evaluate the accuracy of LCCA in predicting facility costs.

Notwithstanding the benefits of LCCA, its adoption has been relatively slow for institutional buildings. The case study revealed that the average difference between estimated and actual construction cost is 37 per cent, whereas the average difference between the actual and estimated maintenance cost is 48 per cent. There is an average difference of 85 per cent in the actual and estimated administration cost.

While limited to a few buildings, the case study underscores that LCCA methods should not be used for cost predictions of facility performance but rather for comparing total costs of alternative building features and systems, as well as building types. Sensitivity analysis also revealed that the selection of a discount rate would have less impact on recurring costs estimates compared to non‐recurring cost estimates. Facilities managers' involvement in LCCA technique developments and implementations will likely improve its performance during programming phases.

The value of LCCA procedures is limited as a predictor of actual realised facility costs. Educational institutions can use the methods described in this paper to replicate the study and arrive at their own conclusions regarding the LCCA techniques and their potential use in programming stages.

The paper evaluated the accuracy of LCCA for institutional buildings and the potential of LCCA as an asset management tool for institutional buildings and provided suggestions to improve its adoption in facilities management.

The business case for facility expenditures is grounded in the knowledge that life-cycle economics is significant to the continued viability of the facility. The aim of this study is to develop an algorithm for life-cycle cost analysis (LCCA) and evaluate flooring products to inform decision makers about the long-term cost of ownership.

The protocol for executing an LCCA is defined by the National Institute of Standards and Technology, including defining the problem, identifying feasible alternatives and establishing common assumptions and parameters, as well as acquiring financial information. Data were provided by an independent third-party source.

The results of this study are twofold: assess functionally equivalent flooring alternatives to determine the best financial value and develop a replicable protocol and algorithm for LCCA. The study found that modular carpet was the best financial solution. As a tool for decision makers, this LCCA informs asset management about the long-term cost of ownership, providing a protocol for making practical, informed decisions for the lowest cost solution for functionally equivalent alternatives.

Projecting LCCA beyond 15 years may have limited value based on potential changes in the financial climate. Further research should focus on the implications of changes in the discount rate over time and testing the algorithm on other building systems.

Maintenance costs are considerable when compared to initial cost of flooring. Equipment costs have a significant impact on long-term cost of ownership. Using LCCA to inform specifications and to determine the best solution for a building system such as flooring provides an evidence-based process for building design and facility management.

Life-cycle costs have a significant impact on the financial health of an organization. Using LCCA to make informed decisions about facility design and specifications may contribute to increased financial stability and resources to benefit the organization’s long term goals.

This study contributes an algorithm instrument for buildings and building systems. The flooring tested with this protocol provides evidence to inform flooring selection based on lowest cost while considering other factors that inform appropriate selection of flooring materials.

The sustainable green movement is significantly gaining momentum around the globe and South Africa needs to follow suit. However, such a movement needs to be significantly tested. It is therefore essential to present both foundation and supplementary research in the primary concepts within this topic in order to lay the groundwork for future analysis. The purpose of this paper is to analyse the cost‐effectiveness of the heat recovery ventilation (HRV) technology incorporated within Lincoln on the Lake, against a direct‐expansion (DX) ducted system of conventional practice utilising the life cycle cost analysis (LCCA) to determine if the sustainable option is the better choice.

This paper is a case study, based on a green building in KwaZulu‐Natal, South Africa using a ten step life cycle cost analysis.

In terms of the LCCA performed at Lincoln on the Lake, this case study has found that sustainable measures were far more cost effective over the 20 year study period than that of the comparable conventional system. The life‐cycle cost analysis tool has provided a simple, uniform and predetermined manner for which the life‐cycle costs of sustainable designs can be successfully quantified.

The value which sustainable building practices can pose, has not been fully realised among clients and professionals within the South African construction industry due to lack of proof that value incentives do exist. This paper, therefore, emphasizes that savings can be made over the long term by going the sustainable route.

The purpose of this study is to examine the application of sustainable building design and operation within a university setting to determine its economic efficacy and potential for further university investment.

This study incorporated a life cycle cost analysis (LCCA), simple payback period and discounted payback period calculations to determine the return on investment, including a sensitivity analysis when comparing the energy use and financial benefits of the sustainable design of a multi-use facility at Toronto Metropolitan University with buildings of similar size and use-type.

It was found that there is a positive business argument for Canadian Universities to consider the use of sustainable design to reduce energy use and greenhouse gas (GHG) emissions. A reasonable payback period and net present value within an institutional context were determined using a life-cycle cost assessment approach.

This study was limited to the measure of only a single location. Certain assumptions regarding energy pricing and interest rates and the related sensitivities were anchored on a single year of time, and the results of this study may be subject to change should those prices or rates become significantly different over time. Considerations for future research include a longitudinal approach combined with a more detailed analysis of the effect of use-type on the variables discussed.

For university administrators, the results of this study may encourage institutions such as universities to approach new building projects through the lens of energy efficiency and environmental sustainability.

GHG emissions are a well-proven contributor to global climate change, and buildings remain a significant source of GHG emissions in Canada due to their winter heating and summer cooling loads. As a result, sustainable building design on university campuses can mitigate this impact by optimizing and reducing energy consumption.

Research related to the economic evaluation of sustainable building design on university campuses is generally limited, and this study represents the first of its kind in regard to an LCCA of a sustainably designed building on a Canadian University campus.

The purpose of this paper is to conduct life-cycle cost analysis of a short-haul underground freight transportation (UFT) system for the Dallas Fort Worth international airport.

The research approach includes: identifying the cost components of the proposed airport UFT system; estimating life-cycle cost (LCC) of system components using various methods; determining life-cycle cash flows; evaluating the reliability of the results using sensitivity analysis; and assessing the validity of the results using analogues cases.

Although the capital cost of constructing an airport UFT system seems to be the largest cost of such innovative projects, annual costs for running the system are more significant, taking a life-cycle perspective. System administrative cost, tunnel operation and maintenance, and tunnel construction cost are the principle cost components of the UFT system representing approximately 46, 24 and 19 percent of the total LCC, respectively. The shipping cost is estimated to be $4.14 per ton-mile. Although this cost is more than the cost of transporting cargos by trucks, the implementation of UFT systems could be financially justified considering their numerous benefits.

This paper, for the first time, helps capital planners understand the LCC of an airport UFT system with no or limited past experience, and to consider such innovative solutions to address airport congestion issues.

The objective of this life cycle environmental cost analysis (LCECA) model is to include eco‐costs into the total cost of the products. Eco‐costs are both the direct and indirect costs of the environmental impacts caused by the product in its entire life cycle. Subsequently, this LCECA model identifies the feasible alternatives for cost‐effective, eco‐friendly parts/products. This attempts to incorporate costing into the life cycle assessment (LCA) practice. Ultimately, it aims to reduce the total cost with the help of green or eco‐friendly alternatives in all the stages of the life cycle of any product. The new category of eco‐costs of the cost breakdown structure includes eight eco‐costs, namely cost of effluent/waste treatment, cost of effluent/waste control, cost of waste disposal, cost of implementation of environmental management systems, costs of eco‐taxes, costs of rehabilitation (in case of environmental accidents), cost savings of renewable energy utilization, and cost savings of recycling and reuse strategies. Development of a suitable cost model and the identification of the feasible alternatives are performed simultaneously. Various checklists based on multiple environmental criteria will be used to ensure the eco‐friendly nature of the alternatives. On the basis of the calculated environmental impact indices (EII), priorities will be made for the selection of suitable alternatives. The mathematical model of LCECA aims to define the relationships between the total cost of products and the various eco‐costs concerned with the life cycle of the products, and determine quantitative expressions between the above‐said costs. A computational LCECA model has been developed to compare the eco‐costs of the alternatives. This model will include a break‐even analysis to evaluate the alternatives, and sensitivity analysis and risk analysis modules. This model aims at a cost‐effective, eco‐friendly product as an end result. This LCECA model will be compatible with the existing LCA software tools.

This paper aims to provide an integrated framework of life cycle assessment (LCA) and life cycle cost analysis (LCCA) for assessing alternative technologies, processes, and/or activities, with focus on concrete pavements.

LCA and LCCA are used to evaluate environmental and economic impacts of substituting different percentages of fly ash and slag into continuously reinforced concrete pavement (CRCP) and jointed plane concrete pavement (JPCP). Impacts are determined over different life cycle phases.

An LCA of the extraction phase indicated that JPCP pavement had 33‐62 percent less emissions than CRCP pavements, when only steel consumption was considered. When cement was considered, JPCP pavement had almost 40 percent greater emissions then CRCP for all mix types. An LCCA showed that over the entire life cycle phases studied, CRCP pavements had about 46 percent more costs than JPCP. However, when only maintenance costs were considered, CRCP pavement cost 80 percent less to maintain than JPCP over the studied period of 35 years.

The study is a step towards using an integrated framework to evaluate the performance of different materials and technology. The same framework could be conducted for different kinds of asphalt pavements and concrete pavements, as well as other infrastructure that makes up the built environment, with the goal of making decisions that take into account design considerations, environmental impacts, and cost effectiveness.

The change in climate and depletion of natural resources because of the harmful emissions from different materials becomes a main issue for the globe. Some of the developed and developing countries have focused on this issue and performed research to provide a solution. The purpose of this study is to identify the best types of concrete based on its impact on the environment and economy.

The life cycle assessment and life cycle cost analysis of six concrete mixtures that include construction and demolition wastes (CDW), marble sludge, rice husk and bagasse ash as a partial replacement of cement, are performed. These types of concrete are compared with each other and with ordinary concrete to select the best possible concrete type for a developing country, like Pakistan.

The results show that, although for an agricultural country like Pakistan, the agriculture wastes such as rice husk and bagasse ash are preferable to be used, if the emissions of CO₂ and CO from rice husk and NOx and SO₂ from bagasse ash are properly controlled. However, based on the results, it is recommended to use the CDW in concrete because of the small amount of air emissions and affordable prices.

Through this study, a path has been provided to construction companies and relative government organizations of Pakistan, which leads to sustainable practices in the construction industry. Moreover, the base is provided for future researchers who want to work in this area, as for Pakistan, there is no database available that helps to identify the impact of different concrete on the environment.

The purpose of this paper is to focus on life cycle cost analysis (LCCA) of 1 MW roof-top Solar Photovoltaic (PV) panels installed in warm and humid climatic region in Southern India. The effect of actual power generated from solar PV panels on financial indicators is evaluated.

LCCA is done using the actual power generated from solar PV panels for one year. The net present value (NPV), internal rate of return (IRR), simple payback period (SPP) and discounted payback period (DPP) are determined for a base case scenario. The effect of service life and the differences between the ideal power expected and the actual power generated is evaluated.

A base case scenario is evaluated using the actual power generation data, 25-year service life and 6 percent discount rate. The NPV, IRR, SPP and DPP are found to be INR 13m, 8 percent, 10.9 years and 18.8 years respectively. It is found that the actual power generated is about one-third less than the ideal power estimated by consultants prior to project bidding. The payback period increases by 70–120 percent when the actual power generated from solar PV panels is considered.

The return on investment calculated based on ideal power generation data without considering the operation and maintenance related aspects may lead to incorrect financial assessment. Hence, strategies toward solar power generation should also focus on the actual system performance during operation.

Finding the optimal solution to address problems in sewer management systems has always challenged asset managers. An understanding of deterioration mechanisms in sewers can help asset managers in developing prediction models for estimating whether or not sewer collapse is likely. The effective use of deterioration prediction models along with the development and use of life cycle cost analysis (LCCA) can contribute to the goals of reducing construction, operation and maintenance costs in sewer systems. When sewer system maintenance/rehabilitation options are viewed as investment alternatives, it is important, and in some cases, imperative, to make decisions based on life cycle costs instead of relying totally on initial construction costs. The objective of this paper is to discuss the application of deterioration modelling and life cycle cost principles in sewer system management, and to explore the role of the Markov chain model in decision making regarding sewer rehabilitation. A test case is used to demonstrate the application of the Markov chain decision model for sewer system management. The analysis includes evaluation of this concept using dynamic programming and the policy improvement algorithm.