Life cycle costing (LCC)

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

ADW specialise in the development of Life Cycle Costing (LCC) models. We assess the financial cost of acquisition, operation, and disposal of a building system, whole building or multiple buildings. Our appraisals are carried out in accordance with the ISO 15686 Buildings and Constructed Assets – Service Life Planning Part 1: General Principles; ISO 15686 Buildings and Constructed Assets – Service Life Planning Part 5: Life Cycle Costing and PD 156865 Supplement to BS ISO: 15686-5. If needed this meets all the requirements set out in BREEAM Man 02. We also provide life cycle costing services in accordance with other international sustainability standards.

Our models are developed using best practice modelling techniques, for example UK Treasury Green Book guidelines for Appraisal and Evaluation in Central Government; International Standards on Service Life Planning; and guidance from the National Institute of Standards and Technology (NIST) on life cycle cost assessment.

We can also offer advanced LCC solutions, including:

• service life planning (estimating the service life of building elements and components)
• durability assessment
• sinking fund calculation (the money that should be set aside annually to fund future capital replacements)
• benchmarking and market testing (a comparison of key cost and performance data against similar schemes, competitive price and performance appraisals)
• sensitivity analysis (deterministic and probabilistic analysis of which variables have the greatest significance and impact)
• risk analysis (quantitative and qualitative identification and analysis of negative and positive outcomes and assessment against identified project objectives)
• value appraisal (analysis of alternatives against financial and business performance indicators)
• financial modelling (creation and management of an auditable financial model through bidding, evaluation, negotiation, construction and operation. Calculation of key variables, including returns to shareholders and debt cover ratios)