Life Cycle Cost Analysis Criteria

construction & evaluation
1

Hello, I’ve run into some contradictory questions on a couple of CE quizzes and want to make sure I’m getting this correct: Does LCCA include Replacement Costs?

I have an earlier edition of the Sustainable Construction book and the CSI Manual does not mention Financing or Replacement Costs.

In the CE Section 1 Quiz:
An architect is working on a 15,000-square-foot office building, and the owner has requested a life cycle cost analysis.
Which of the following are included in a life cycle cost analysis? Check the four that apply.
Correct Answers: Utility Costs, Initial Costs, Maintenance and Service Expenses, and System replacement expenses

From CE Practice Exam Form 1:
A project manager has asked their project architect to perform a life cycle cost analysis (LCCA) for an emergency back-up generator for a new school project. The client is interested in including a generator in the project but wants a better understanding of the total cost of the system before deciding.

Which of the following items must be included in the analysis? Check the four that apply.
Correct Answers: Operational Cost, Initial Cost, Maintenance Cost, and Financing Cost
Incorrect Answers: Replacement Cost

2

Dylan, great question. For a building, the life cycle of the building includes everything from start until the building would serve its useful life. You would need to consider the initial investment, how much it costs to operate the business and that includes expenses such as utilities and maintenance, and HOPEFULLY our building outlasts several systems which means that those costs are now included within the life span - or life cycle of the entire facility. Whereas, if a single component is being considered, such as the generator, it has an estimated useful life, perhaps it is ten years and after ten years, it has reached the end of it’s life cycle. I can be a bit confusing so let me know if you have more questions!

3

Garric,
Ah ha! I didn’t consider the subject of LCCA, I was only looking at the criteria. So whether the building or an individual system is being studied, certain costs are included dependent on the scale of the analysis. Thank you.