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The Method of Life Cycle Cost Analysis in the Building Sector


The aim of this paper is to introduce the method of Life Cycle Cost Analysis (LCCA) in construction, as a decision making process towards more sustainable buildings.LCC is an important tool in use to facilitate choices where they are alternative means of achieving the client’s and stakeholder’s requirements, based on costs over the lifetime of a building. Applying LCC in the early stage of a building by testing and evaluating different design and construction scenarios, strongly encourages the construction and use of energy efficient and environmental friendly constructed assets. Furthermore, decisions, data feedback and continual monitoring and optimization of LCC must proceed throughout the life of the project as running costs of a building accounts a percentage of about 80% of its total cost.Building owners, construction companies and real estate and property developers are encouraged to apply LCCA in order to assess the benefits of a building construction investment throughout an extended time horizon, either if it subjects to a new construction project or to a refurbishment work. Additionally, budgeting investment options in accordance to expected building performance is a key variable firmly embedded in public procurement processes across Europe. Current and innovative financing tools (ESCO’s, TPF, PPP, etc) set a priority to indicators and benchmarks in respect to energy performance and costs of operation and maintenance of a construction asset within its whole life.The role of the professional building owners and facility managers is considerable in the development of the building and construction market, and LCCA contribute to the evaluation of different steps of building or refurbishment processes, based on an economic investment analysis. Work is in progress regarding data collection on cost indicators for buildings, especially in the non-domestic sector. This systematic data aims to encourage Facility Management towards an energy efficient and sustainable


Academic lecture




  • Maria Kikira
  • Guri Krigsvoll


  • SINTEF Community / Architectural Engineering

Presented at

ENERTECH 2007 ATHENS Conference


Athen, Hellas


18.10.2007 - 20.10.2007





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