Life Costing A Reason To Change

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Life Costing A Reason To Change

• James Fiske
• Economic Research Unit

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Economic Research Unit?

• 15 years of experience in
• Data Collection
• Cost analysis/modelling
• Benchmarking
• Indexation/inflation
• Economic modelling
• Life costing
• One of the largest publishers of construction
  cost data in the world

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What is life costing?
It really is quite straightforward
Or to put it another way...
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What is life costing?

• Life cycle costing and life cycle assessment
• A scientific approach to appraising design and
  specification options over the design or
  functional life of a building
• A method to demonstrate value for money or
  environmental consideration

Initial cost
Life cost
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Why do it?

• A cheaper capital cost could result in higher
  maintenance and even difficulties in replacement
• Our studies have shown that you can save over 30
  of the cost of elements of your building over its
  life
• Improve the budgeting process and understand the
  maintenance cycles
• Enable you to plot and procure resources when you
  need and when (play the markets)
• Save the iceberg consider the environment over
  the life of the building

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What are the barriers?

• Environment and financial calculations are
  calculated independently by different teams
• Often measuring different items
• Often duplicating tasks
• Resulting in an inefficient process
• Confusion on terminologies
• Lack of robust auditable data
• Items above deterrent for use
• unwillingness to change

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Our Solution
Resources Labour Material Plant
Unit Rates
Capital Cost Databases Property Small Works
Property Major Works Civil Engineering
Highways Rail ME
Composite Rates Capital Cost Asset
Replacement Planned Maintenance
Redecorations Reactive Maintenance
Inspections Cleaning
Inflation and Regional Metrics
LCC
LCA
CO2
WLC
WLCA
CO2
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Life costing module
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Life costing module
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Life costing module
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Life costing module
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How can you change?

• Define the boundaries of your studies
• Understand what information you have
• Understand what information you need
• Fill the gaps
• Integrate data feedback cycle to improve your
  data
• Realise and quantify the benefits
• Obtain interest and a want to change

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You may want to consider..

• The published ISO on life cycle costing BS ISO
  15686-5
• Benefits of environmental and financial costing
  together
• Benefits of optioneering specifications and
  building designs
• Model between new build and refurbishment
• Ability to change the resources, productivities
  and costs
• Change frequency of activities to suit commercial
  risk
• The need to smooth expenditure profiles to suit
  cash flow
• Changing the transportation method and distances
  of your materials, plant and even your labour

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• Thank you for listening
• Please come and visit us to learn more on the
  Mott MacDonald stand or email eru_at_mottmac.com for
  a demonstration