Elemental Life Cycle Costing

BREEAM Version 7 retains Man 02 Life-Cycle Costing with no changes to scope or credit weighting.

Effective cost management in the construction and built environment sectors requires consideration beyond initial expenditure. It is essential to optimise value over the entire lifespan of an asset.

Elemental Life Cycle Costing (ELCC) provides a structured approach to assessing the financial implications of acquiring, operating, maintaining, and disposing of building elements. This method supports informed decision-making, enhances sustainability, and ensures cost efficiency over the long term.
It also aligns with BREEAM Man 02 Life Cycle Costing criteria, supporting sustainable construction practices.

Definition of Elemental Life Cycle Costing

Elemental Life Cycle Costing (ELCC) involves analysing costs by breaking a building or infrastructure asset into its core elements, such as structure, facades, mechanical and electrical systems, and finishes. Cost assessments are carried out at an individual element level rather than viewing the building as a single entity. This enables comparison of different materials, designs, and maintenance strategies to determine their long-term financial and environmental impacts.
ELCC also integrates Whole Life Carbon Assessments, ensuring a balanced approach to financial and environmental sustainability.

Key Benefits of Elemental Life Cycle Costing

1. Cost Predictability

ELCC provides a detailed breakdown of costs associated with each building element, allowing stakeholders to understand how capital investment translates into operational and maintenance expenses. By assessing costs over the entire life cycle, it enables better budgeting and financial planning, reducing the risk of unexpected expenditures.

2. Informed Decision-Making

Assessing costs at an elemental level enables developers, designers, and facility managers to make informed choices regarding materials, construction methods, and maintenance strategies. This supports long-term investment decisions by balancing cost, quality, and performance.

3. Long-Term Value Consideration

A whole life approach to costing ensures that cost efficiency is prioritised beyond initial capital expenditure. By factoring in maintenance, energy consumption, and replacement costs, ELCC helps identify solutions that minimise long-term financial burdens while maximising asset value.
This aligns with BREEAM Man 02 Life Cycle Costing for sustainable and cost-effective decision-making.

4. Sustainability and Resource Efficiency

ELCC supports sustainable construction principles by identifying materials and systems that offer lower environmental impact over their lifespan. By assessing embodied carbon, energy efficiency, and maintenance requirements, it facilitates decision-making that contributes to Whole Life Carbon Assessments, net-zero carbon goals, and sustainability targets.

5. Risk Management in Asset Lifecycle

Understanding long-term cost implications of various building elements reduces financial risk associated with asset management. ELCC allows for the anticipation of cost escalations due to material degradation, regulatory changes, or evolving operational requirements, enabling proactive risk mitigation.

6. Compliance with Industry Standards

ELCC ensures alignment with industry standards and best practices, such as ISO 15686-5 (Life Cycle Costing in Construction) and BREEAM Man 02 Life Cycle Costing. Compliance with these frameworks demonstrates due diligence and enhances project credibility, making projects more attractive to investors and funding bodies.

7. Performance Monitoring and Benchmarking

ELCC enables organisations to benchmark different projects, building elements, or design approaches against historical data. This facilitates continuous improvement in design and procurement processes, ensuring future projects benefit from lessons learned in previous developments.

Conclusion

Elemental Life Cycle Costing is an essential tool for optimising financial and environmental efficiency in construction and asset management. By assessing costs at an elemental level, stakeholders can improve cost predictability, enhance decision-making, optimise long-term value, and support sustainability objectives. As the industry advances towards net-zero and circular economy principles, ELCC, alongside BREEAM Man 02 Life Cycle Costing and Whole Life Carbon Assessments, will play a crucial role in delivering resilient, cost-effective, and high-performing built environments.

For further guidance on implementing Elemental Life Cycle Costing, BREEAM Man 02 Life Cycle Costing, and Whole Life Carbon Assessments in your projects, contact ADW Developments.
Our experts can support you in developing tailored cost models that enhance financial performance and sustainability.