Life-Cycle Cost Analysis


Life-cycle cost analysis is a detailed and orderly analytical process that includes all costs, both variable and fixed, over the entire lifetime of a building. This method of analyzing long term costs takes into consideration every possible factor, including operating costs, maintenance costs, estimated repairs and other costs associated with overhead. This is a very important process in determining the long term value of a property. Early in the planning stages of building, the architect is responsible for coming up with this figure. An example of when a life-cycle cost analysis would be necessary is when a developer is planning a building and has to make choices about heating, plumbing and electrical wiring. Choosing to be more energy efficient may cost more at the beginning, but it will actually result in substantial savings over the life of the building.