Life-Cycle Costing: Tool, Assessment Scope, Database & Parameters

How does our Life-Cycle Costing tool works and does it include a cost database?

We are providing two types of LCC tools: An automated tool with LCA integration and an easy template-based LCC tool.

The Automated LCC tool (includes a cost database) which uses your imported construction materials as a basis for your construction costs.

• Operation and maintenance costs are calculated based on automatically generated location parameters.
• Replacements are calculated based on the service life of your construction materials.
• All other costs can be added manually.
• The tool enables to change of automatically generated costs, so if the project’s specific information is available, the figures can be easily edited.

The Template-based LCC tool (which does not include a cost database) provides an easy row-by-row template to be filled with the project-specific cost data. The templates are based on:

• ISO 15686-5 & EN 16627 standards (for international projects)
• PD 156865:2008 (for projects in the UK)
• ISO-15686-5 TRACI (for projects in the US)
• NS3454:2013 (for projects in Norway)

The tools enable the calculation of life-cycle costing over different calculation periods and to change the discount factor and add/remove VAT.

A generic introduction to the topic can be found here and here.

Life-Cycle Costing Scope

This guide explains the scope of an LCC study. Additionally, the background sources of the automated LCC database are provided (the database is used for the One Click LCA automated LCC tool only).

The LCC analysis reporting follows EN 15978 standard modules. The following table describes the cost elements included in the assessment scope.

Life cycle module	Analysis scope
A0-A5 Pre-construction and before-use stage	Costs of purchase or rental costs (costs of the site); costs of building products; costs related to the transport between factory and site; project feasibility, planning, design, engineering and construction costs, incl. permissions, commissioning and handover; site clearance and landscaping (e.g. lawn, trees, and similar within the curtilage and other external works costs; subsidies and incentives (e.g. incomes related to renewable energy).
B1-B3 Operation and maintenance costs	Building-related facility management costs (e.g. regular cleaning, insurance, security, fire inspection, and similar costs); repair costs; ground maintenance; redecoration.
B4-B5 Replacement/refurbishment	Planned adaptation or refurbishment (incl. infrastructure, fitting out and commissioning, validation and handover); replacement of major systems and components (incl. associated design and project management).
B6 Operational energy use	Energy costs (incl. fuel and electricity for heating, cooling, power, domestic hot water, and lighting, as per EPBD).
B7 Operational water use	Water-related costs (e.g. rates, local charges, environmental taxes)
C1-C4 Deconstruction	Demolition costs; transport costs associated with deconstruction and disposal; fees & taxes (e.g. landfilling); waste processing costs

LCC Database sources

All material data include modifications for different regions related to labour costs and cost indexes. Datasets for material costs are structured to consider the cost of materials installed, and they include labour cost components. The cost data is available for all main construction materials in the One Click LCA database. Its accuracy will depend on variances in type, specification, and method of construction.

• The database production process has used various cost databases, including the Neubau Baupreise Kompakt; Statistische Baupreise für Positionen mit Kurzttexten (BKI) (2017) and the Spon’s Architects’ and Builders’ Price Book (AECOM) (2017).

Labour costs are based on the International Labour Organization, Labour costs 2016. These costs are the total costs paid for the labour by the party contracting labour including all applicable overheads.

Maintenance costs are based on regional labour costs and the labour intensity of various maintenance operations.

• The production process has considered various sources, including Whitestone Facility Operations Cost Reference, International (2014) and Whitestone Facility Maintenance And Repair Cost Reference, International (2013) and includes modifications for different regions related to labour costs, processes and cost indexes.

End-of-life costs are calculated based on capital costs. The end-of-life is a percentage of capital costs, which is based on averaged projects.

• Demolition costs in Europe are commonly around 100 to 200 EUR per square meter (m2), this adds up to around 2.5% of the built costs. As an example, references costs for small houses in the UK: https://loftera.co.uk/blog/demolition-cost/

Costs for end of life are higher in dense locations such as large cities, as new construction costs are higher there too.