Professional Engineer. Author of two unique knowledge-elevating books. “Understanding the Building Construction Process, Simply Explained” and “Electrical Design for Buildings: Basic Guide, Simply Explained”.
⬆ Knowledge Elevator What are some checks and balances regarding operation and maintenance costs for a building that can be applied in the design stages of a building construction project to help ensure its success? Life-cycle Cost-Benefit Analysis (LCCBA) and Payback are two; Value Analysis is another. What is Life-Cycle Cost-Benefit Analysis also known as Life-Cycle Costing? This is an analysis involving consideration of installation costs and the costs of operation and maintenance over the life of a building component or system. Often such studies will be done for lighting systems, heating systems, air conditioning systems, or other building systems, to compare over their useful life the economic merits of different systems or components. What is Payback? Payback is a term used in life-cycle costing. It is the time taken for the supply and installation cost for a comparison system or component of a building to equal the cost savings made in its operation and maintenance versus a base system. Payback is stated in years and fractions thereof. What is Value Analysis? Payback and life-cycle cost-benefit analyses are tools to supply value analysis to building systems and components. Various terms having the same general meaning when applied to building components or systems analysis are ‘value analysis,’ ‘value engineering,’ and ‘value management.’ The terms are used interchangeably. When applied to construction, the value analysis process normally reviews something to determine the appropriateness of its use. Rather than basing decisions on first cost only, life expectancy and predicted operating and or maintenance costs will be analyzed and factored into the decision-making process. Many decisions in construction do not need a value analysis because the appropriateness of their use is obvious. For example, obvious use may be shown by comparisons to what was used in other buildings, such as lighting or air conditioning systems. What value analysis means on any project depends on the agenda of the party for whom the analysis is performed. Since any process can occur under the guise of ‘value analysis’ it can be a way of ensuring lowest first cost, regardless of the consequences to operation and maintenance costs.
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3moInsightful analysis Leon P. Gander