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The main purpose of the study is to promote consideration of the issues and approaches available for costing sustainable buildings with a view to minimising cost overruns, occasioned by conservative whole-life cost estimates. The paper primarily looks at the impact of adopting continuity in whole-life cost models for zero carbon houses.

The study embraces a mathematically based risk procedure based on the binomial theorem for analysing the cost implication of the Lighthouse zero-carbon house project. A practical application of the continuous whole-life cost model is developed and results are compared with existing whole-life cost techniques using finite element methods and Monte Carlo analysis.

With standard whole-life costing, discounted present-value analysis tends to underestimate the cost of a project. Adopting continuity in whole-life cost models presents a clearer picture and profile of the economic realities and decision-choices confronting clients and policy-makers. It also expands the informative scope on the costs of zero-carbon housing projects.

A primary limitation in this work is its focus on just one property type as the unit of analysis. This research is also limited in its consideration of initial and running cost categories only. The capital cost figures for the Lighthouse are indicative rather than definitive.

The continuous whole-life cost technique is a novel and innovative approach in financial appraisal […] Benefits of an improved costing framework will be far-reaching in establishing effective policies aimed at client acceptance and optimally performing supply chain networks.

The continuous whole-life costing pioneers an experimental departure from the stereo-typical discounting mechanism in standard whole-life costing procedures.

The purpose of the project was to develop a framework document and input tool for use in local government to enable quantity surveyors and others with enough knowledge to produce a life cycle costing analysis with the minimum of effort. The general perception in the surveying profession of the complex formulae associated with whole life costing (WLC) has led to it being described by local government as “a nebulous concept that falls on deaf ears”. This paper seeks to describe research to develop a user‐friendly approach using a generic software input tool accompanied by a framework document designed specially to assist in WLC analyses. An explanation of the mathematical formulae used is also given.

The research project was commissioned by the Society of Construction Quantity Surveyors (SCQS) in mid‐2004 and to date has involved the development of a framework document and WLC input tool which has been tested by local government. The project is in the final stages of completion and training on WLC and use of the developed input tool has commenced.

The feedback from use of the developed tool by local government quantity surveyors has been positive and the benefits of using such a tool are evident amongst the surveying profession.

The researchers have had to overcome a number of challenges to ensure the effective running of the tool to the satisfaction of the prospective users – quantity surveyors in local government.

A framework document and software tool have been specifically developed for use by quantity surveyors in UK local government.

Whole life costing analysis is becoming much more important as long‐term building owners and clients start to demand evidence of what their costs of ownership will be. It is also becoming more important as more private companies invest in private finance initiative (PFI), public private partnership (PPP) and prime contracting (PC) projects. One of the main barriers to the successful implementation of whole life costing (WLC), is the lack of reliable and consistent data on elements of whole life cost (capital, facilities management, and disposal) and the performance of building elements and services. The objective of this paper is to discuss the development of a consistent and flexible framework for collecting whole life cost data for buildings. A description of the taxonomy of the cost breakdown structure is given. The proposed data structure will be of value to all the project team (designer, contractor, facilities manager, supplier, etc.) who might be involved in traditional procurement or PFI, PPP, and PC projects. When the cost data structure is populated, it will provide the foundation from which the whole life costs of different alternatives can be estimated and from which the risks such as the technical and financial risks related to WLC elements, operational risks, etc. associated with, PFI, PPP and PC projects can be assessed and minimised.

The purpose of this paper is to investigate the whole-life costs of non-residential green-rated building developments in Singapore to derive useful information for research and practice. When industry stakeholders like building owners, architects, engineers, quantity surveyors, builders and facility managers have detailed information about the initial and operating costs of different types of buildings, they will be able to apply whole-life costing to their existing or new projects with the intention of achieving value for money, as well as environmental sustainability. The developed index is useful to green policymakers and building owners.

Data are collected from building projects certified by the Building and Construction Authority (BCA) of Singapore under the Green Mark scheme, starting from 2005. Statistical analysis is performed on the collected data to generate the information required to build the index as well as cost database. The Paasche price index method is used to produce a weighted composite index for Singapore’s non-residential building sector.

The results show the classification of whole-life costs components by two main groups – “development and construction costs”, and “operating and maintenance costs”. There are a total of 68 cost significant items selected from 13 construction work categories. Comparing the weights for three non-residential building types, the highest is obtained for industrial building, which is followed by institutional and commercial buildings.

Without data, the description of the research has primarily dealt with the formulation of the proposed index because designing an appropriate methodology is key to ensure widespread acceptance and use.

Prospective users have to be aware that the index cannot provide information about change in absolute terms and is not very accurate as such in reflecting the actual level of costs or prices of the variable of interest. However, it is a good indicator of the relative change over time in the level of costs or prices.

It is expected that this method contributes additional information to BCA’s existing tender price index about a building’s operating costs as well since the proposed index is a measure of change in the average whole life-cycle costs of buildings over time.

The main purpose of this paper is the incorporation of life-cycle costs (LCC) and whole-life costing (WLC) method and the taxation environment into the investment appraisal procedure for commercial real property projects.

The paper initially presents the methodologies of LCC and WLC together with the NPV measure for the evaluation of real estate investments. These methods are incorporated into a decision-making model using mathematical approaches. The model is applied to a typical commercial property project (office building) in order to explore the significance of impacts from changes in structured variables and the taxation environment by introducing direct, indirect and property taxes in the evaluation of commercial real estate projects.

Testing of the methodology on the Greek economic environment revealed that time, cost, the tax regime, the financial variables of funding and the monetary and fiscal environment in a commercial real property project are the main variables of net present value (NPV) of the investment.

From the calibration of any impact from affected variables, decision-making aiding tools can be extracted for controlling the project throughout its entire life-cycle.

An integrated WLC mathematical model for the investment appraisal of commercial property projects is introduced. The herein proposed methodology contributes to taxation policy and real estate theory in general and assists industry professionals in effective commercial property management and decision-making.

A whole life costing (WLC) methodology has been developed for determining long term maintenance expenditure requirements for water distribution networks. The methodology utilises an accounting scheme that ties the costs incurred by the operator and other stakeholders to the attributes or performance that drive the costs. It has specifically been derived with the requirements placed by the regulatory regime on the water companies that operate in England and Wales in mind. Expenditure constraints are implied by the regulator through price caps that companies can charge their customers. Appropriate levels of expenditures included as part of the price cap determinations are required by the regulator to be economically robust and tied to the service received by the customers. Therefore, maintenance decisions must reflect more immediate concerns of meeting performance requirements, but must ensure that such levels are sustainable in the long term. The WLC methodology achieves this through an integrated platform that links costs identified within a structured accounting scheme with their performance based drivers commonly modelled based on historical data. Thus, a robust and fully auditable methodology is provided that can address the requirements of all stakeholders. This methodology is the basis for software (WiLCO) that provides decision support in determining appropriate pipe rehabilitation and operational strategy and thus expenditure levels over extended time horizons.