Life Cycle Cost Analysis (LCCA)

Current assessments of the economic performance of buildings are mainly based on performance expressed in cost terms over the life cycle or in terms of financial value over the life cycle. The economic performance primarily includes reduction in life cycle costs and the sustainable conservation of value/increase in value of a building. The general frameworks for the assessment of economic performance are regulated in ISO 15686-5, prEN 15643-4 whereas ISO 15686- 5 differentiates between whole life cost and life cycle cost. In contrast to that currently only the initial cost (e.g. manufacturing cost) are mainly decisive for building investments. However, regarding to ISO 15686-5 and prEN 15643-4 the consideration of technical and functional performance in LCCA investigations will gain more and more attention in the near future. Due to that future assessments of buildings and, consequently, real estate valuations will have to enlarge their system boundaries.

Initial cost vs. use cost of an office building (c) Helmuth Kreiner / TU Graz