Life Cycle Cost Analysis

Life Cycle Cost Analysis: Optimising long-term value and Sustainability

We have extensive experience in providing Life Cycle Cost Analysis to help clients gain valuable insights into the overall costs of your built environment developments.

What is Life Cycle Cost Analysis?

An LCCA is a methodology used to determine the most cost-effective option to deliver a building through all the stages of its life, taking into account the design, construction, and occupancy through to disposal and demolition.

Its overall purpose is to help minimise the long-term costs associated with the construction, installation, operation and maintenance of a building or structure. 

Life Cycle costing analysis is the most accurate way to increase your buildings project savings by comparing different design alternatives.  As opposed to more commonly used ROI-based calculations, LCC is conducted based on long-term costs and savings. 

LCCA is especially useful when project options that fulfil the same performance requirements, but differ with respect to initial costs and operating cost, have to be compared in-order to select the one that maximises net savings.  

For example, LCCA will help determine whether the incorporation of a high-performance HVAC or glazing system, which may increase initial cost but result in significantly reduced operating and maintenance costs, is cost-effective or otherwise.

Life Cycle Cost Analysis and BREEAM

Integral to achieving BREEAM Certification, an LCCA can ensure

Life Cycle Costing is specifically used within MAN02 life cycle cost and service life planning of BREEAM for new and existing buildings, whilst also includes an additional credit under MAT01.  Credits can be awarded at RIBA Stage 2: Concept design stage by undertaking LCC alternative options appraisal at the component level and reporting the capital cost of a building via the BREEAM Assessment Scoring and Reporting tool.

The overall findings are conveyed in real, discounted and non-discounted cash flows, with analysis at strategic and system levels of the structure, envelope services and finishes.

The option with the lowest discounted Life cycle cost is generally preferred, provided it results in lower energy consumption, reduced maintenance or prolonged replacements, dismantling, recycling or re-use.

BREEAM Credits:

  • 1st Credit is available if carried out at RIBA Stages B or C, covering construction, operation, maintenance, and end of life.
  • 2nd credit can be achieved at the feasibility stage (after 1st credit is obtained)

The key benefits of Life Cycle Cost Analysis:

  • Mitigate unexpected costs by producing an accurate financial plan for your projects duration.
  • Encourages sustainable practices by taking into account environmental like energy use over time.
  • Accurately measure return on investment (ROI) throughout the life cycle of a project.
  • Compliance with BREEAM certification requirements, and other GLA planning conditions.
  • Ensure resources are allocated appropriately within the budget limitations.

Our dedicated team of in-house experts have years of experience delivering professional and accurate Life Cycle Cost Analysis, making sure you gain vital additional BREEAM credits for your construction projects.

If you would like to discuss your LCCA requirements further, please contact our team on 01554 571010 or via email at admin@melinconsultants.co.uk

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Melin Energy Consultants

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01792 002085

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01172 356512

London

020 3725 8399

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