Definition and demand

Structure of standard life cycle costing

The Standardised Method of Life Cycle Costing (SMLCC), which will shortly be updated, looks at the whole life cost for any constructed asset and splits the periods and costs into clearly defined phases and elements. The diagram below illustrates those phases.

Costs are divided initially into the following 5 sections:

  1. construction;
  2. maintenance;
  3. operation;
  4. occupancy; and
  5. end of life.

Within the maintenance and operation elements there are many sub-elements, all of which are clearly defined in the SMLCC.

The data structure of the SMLCC also requires costs for major replacement, subsequent refurbishment and redecoration to be presented in Building Cost Information Service (BCIS) Standard Form of Cost Analysis (SFCA) element and sub-element cost structure categories. Additionally, costs for elements 2.4, 2.5 and 2.6 may also be presented in BCIS elements.

2.0    Maintenance costs
2.1    Major replacement costs
2.2    Subsequent refurbishment and adaptation costs
2.3    Redecorations
2.4    Minor replacement, repairs and maintenance costs
2.5    Unscheduled replacement, repairs and maintenance
2.6    Grounds maintenance
2.7    Client definable costs

3.0    Operation costs
3.1    Cleaning costs
3.2    Utilities costs
3.3    Administrative costs
3.4    Overhead costs
3.5    Taxes (if applicable)
3.6    Client definable costs

4.0    Occupancy costs

There are many elements making up occupancy costs and these are often confused with operating costs. Operating costs cover all work that results from the actual building, such as the physical maintenance or replacement of a component. Occupancy costs on the other hand are costs that are more closely related to the building’s occupants, and how efficiently the building is run. This distinction is not quite the same as the difference between ‘hard’ and ‘soft’ facilities management. Cleaning, although often included in hard FM, should be included in operation costs, according to the SMLCC, as the costs are highly dependent on an organisation’s cleaning regime.

Standard

BS8544:2013 Guide for life cycle costing of maintenance during the in use phase of buildings is aligned with the RICS New rules of measurement and provides a standardised methodology that fully integrates the cyclical process of creating and implementing maintenance and renewal plans. This standard was launched in 2013.

These publications split the asset costs into:

  • asset information costs;
  • maintain costs; and
  • renewal costs.

Through the use of a standard methodology it should prove to be easier to integrate data into a building information model (BIM).