HVAC Life Cycle Cost @ Jamie Tischler

Why would fuel costs be considered part of the life cycle cost and be included in the calculation, Isn’t fuel consumption an operating cost that varies? Shouldn’t only the fixed costs be used in the calculation?

Hey @coachjamietischler, would you mind providing more insight for this question?

MEEB defines life cycle cost as “the cost for an owner to acquire and use [a building] for some defined period of time” (1.6b). The cost of fuel is included because the Architect is concerned about operating and mainentance costs over the life of the building, or in this example, specifically the boiler that is being specified. MEEB gives an exact equation you can use to calculate this in Appendix I, page 1702 - life cycle cost = first cost + all future costs - salvage value. It states that future costs can vary based on the economy and MEEB recommends calculating for interest and inflation for more accurate cost estimations.

I also urge you to look into LEEDs (LCA) Life cycle assessment, and all of the costs they associate with the ‘life’ of a building or product to better understand this concept.


Thank you for the clarification!