FAQs
The following FAQs are addressed below:
- How can whole life costing help with sustainability issues?
- It's just a guess, isn't it?
- The capital cost of construction is still the most important factor, isn't it?
- What is the difference between life cycle costing and whole life costing?
- Which profession is best placed to carry out whole life costing?
How can whole life costing help with sustainability issues?
By proving that investing will result in greater energy (and carbon) savings, for example using biomass boilers and ground source heat pumps which cost more in capital, maintenance and replacement terms than the traditional solution, but which more than pay for themselves through energy savings.
It's just a guess, isn't it?
No. It is becoming increasingly scientific especially as more data becomes available from performance in use of PFI projects. The supply chain are also getting better at advising on the life of their products. For example, Swedoor who manufacture doors, together with their ironmongery partner Assa, commissioned the Timber Research and Development Association to independently test their product for schools. Inner city school doors were analysed, for example classroom doors were counted as opening and closing 16000 times per year. A testing rig then simulated the opening/closing of the door 1,000,000 times which therefore equates to over 60 years in the life of a classroom door. The results allowed the manufacturer to give extended guarantees so reducing the risk of pricing door and ironmongery replacement and therefore giving greater cost certainty.
The capital cost of construction is still the most important factor, isn't it?
It often depends on the time horizon of the client and the element(s) being considered. For example, foundations will not incur any whole life costs but floor finishes in a hospital will be totally dominated by cleaning costs.
What is the difference between life cycle costing and whole life costing?
The terms are often used interchangeably but in general whole life costing incorporates all of the costs over the life of a building including capital cost of construction, cost of maintenance and cleaning, energy costs, and lifecycle replacement. Life cycle costing, especially within PFI procurement, often just refers to the latter of these i.e. the cost of replacing components/elements.
Which profession is best placed to carry out whole life costing?
Whole life costing requires the capital cost expertise of the quantity surveyor, the performance in use knowledge of the building surveyor and the energy data and technical knowledge of the mechanical and electrical consultant. It is a team effort which the surveyor is ideally placed to champion and facilitate.