ESG FACTOR

What is LCС (life-cycle cost assessment) for buildings?

Let's talk about the Life Cycle Cost of Building Materials (LCC) process and the integration of this process with the assessment of international eco-standards for buildings.

LCC assessment will make it possible to calculate, as early as during the project phase, the total cost of ownership of a building over a period of 30 or 60 years, including replacement and repair costs for components and operating costs, and to determine the direction of investment for further optimization of the building.

Certification often requires a Life-cycle cost analysis (LCC) of a building.
What is the purpose of such an analysis beyond earning points?

First of all LCC is a tool for making rational investment decisions regarding the building - the choice of materials, engineering systems, payback period of implemented solutions. As a rule, high-quality and carefully selected design solutions make the building more environmentally friendly - ensure rational use of resources in the long term, reduce the negative impact on the environment, waste generation from repairs and replacement of components.

The LCC will make it possible to calculate, as early as during the project phase, the total cost of ownership of a building over a period of 30 or 60 years, including replacement and repair costs for components and operating costs, and to determine the direction of investment for further optimization of the building.

The analysis considers options for optimizing the individual elements and systems of the building in order to increase the cost-effectiveness of its use. The methodology of the analysis is also enshrined in the ISO 15686 standard.

Since it is impractical to evaluate the optimization of every building element, the model considers variations in changes to systems and elements that are most likely to affect long-term costs.
For example, such elements could be flooring, hard pavement (replacement of asphalt pavement with more durable concrete tiles is suggested as an optimization), installation of solar panels, and provision of improved insulation for building envelopes.

Projected inflation rates, the discount rate for calculating net present value, and average market prices for resources and materials, taking into account their growth over time, are used to refine the building's future value.

A full life cost analysis of a building is also advantageous outside of environmental assessments - (usually we conduct the LCC research during the BREEAM New Construction Assessment, Man 02) it will enable cost-effective and sustainable decisions to be made even during the design phase of a project.

The ESG Factor team has extensive experience in LCC for commercial real estate projects - we look forward to hearing from you!

#breeam #lcc #lifecycleassessment

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