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LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
LCC in Green Building  Industry
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LCC in Green Building Industry

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  • Sir, do you mine to share the softcopy of this slide with me?

    If you do kindly email me at leoz_tjay@yahoo.com

    this is for educational purposes. Thank You :)
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  • 1. Life cycle cost analysis(LCC) in the United States green building industry. Wali Memon1 Wali Memon
  • 2. Impact of the built environment 40% of the world’s energy 25% of the timber harvested 16% of the fresh water used 50% ozone depleting CFC’s 30% of raw materials used 35% of CO2 emissions 40% of landfill waste2 Wali Memon
  • 3. Green Building“An integrated framework of design, construction, operations, and demolition practices that encompass the environmental, economic, and social impacts of buildings.”“Building practices recognizing the interdependence of the natural and built environment and seek to minimize the use of energy, water, and other natural resources while providing a healthy and productive indoor environment.”3 Wali Memon
  • 4. Green Building Sustainable Durable/Adaptable Building beyond the codes Build for the occupant Whole systems approach4 Wali Memon
  • 5. Barriers to Green Codes Education Cost Products not available Breaking tradition5 Wali Memon
  • 6. Reasons to Build Green Mandated Market demands Occupant comfort and health Save $ Environmental responsibility6 Wali Memon
  • 7. Reasons to build green “Building to code means that if a building were designed any worse it would be against the law.” Randy Croxton, Architect7 Wali Memon
  • 8. Life Cycle Costing Economic assessment of alternatives that considers all of the significant costs of ownership over the useful life expressed in equivalent dollars. initial costs financing costs operational costs8 Wali Memon
  • 9. History of LCC 1933-- Comptroller of the U.S. Government factored maintenance costs in bids for tractor acquisition 1940-- WW II Shortage of materials and labor. Lawrence D. Miles (General Electric Inc.) created value engineering model for substitute materials and procedures.9 Wali Memon
  • 10. LCC applied to buildings 1970’s--U.S. General Accounting Office applied LCC to hospital facilities. Operation and Maintenance costs equal initial investment costs in 1-3 years. Focused primarily on energy costs.(Arab oil embargo)10 Wali Memon
  • 11. Standardized LCC methods American Society for Testing and Materials (ASTM) 1980--Set a series of standards for building economics. • LCC analysis • Benefit to Cost Ratio • Internal Rate of Return (IRR) • Net Benefits • Payback Period11 Wali Memon
  • 12. LCC characteristics LCC treats design decisions as investments in buildings and building components. LCC compares the estimated costs of different options taking into account both initial capital costs as well as costs that may be incurred over the life cycle.12 Wali Memon
  • 13. LCC objectives To provide an analytical tool that can establish the interaction between planning and design decisions and long term costs. To promote interdisciplinary communication and look at the building as a whole and not merely its component parts.13 Wali Memon
  • 14. Recent LCC trends Infrastructure durability/ longevity Federal/State Buildings efficiency/ obsolescence Green Buildings LCC/ LCA studies14 Wali Memon
  • 15. LCC Uncertainties Input data estimating assumptions Parameters discount rate useful life/ study period future prices15 Wali Memon
  • 16. Literature LCC importance to promote green features. Little evidence exists about if, who, how, and where LCC is applied.16 Wali Memon
  • 17. Statement of the Problem Green building initiatives are predicated on the fact that benefits accrue over the life of the building. Use of LCC is needed to increase adoption of green building practices.17 Wali Memon
  • 18. Research Questions1. What are the goals of LCC?2. Who are the drivers of the studies?3. To which types of projects is LCC applied?4. Which building components are analyzed?5. What constraints are faced with LCC?18 Wali Memon
  • 19. Methodology Survey Research Human Characteristics thoughts behaviors19 Wali Memon
  • 20. Instrument Web-based questionnaire 18 scaled, nominal, and ordinal questions Part 1- set framework for parameters of study Part 2- specific use and application 3 open ended response questions Part 3- LCC and Green building (opinions and perceptions)20 Wali Memon
  • 21. Sample Sample Population LEED registered project contacts • 1000 cover letters with hyperlink to questionnaire21 Wali Memon
  • 22. Response rate104 total responses (10.4 %) 84 questionnaires completed Figure 1. Occupation of re s ponde nts45% Architects Facility manager Other Developer17% Engineers Consultant Architect Project9% Consultants manager Engineer Wali Memon 22
  • 23. Findings Projects utilizing LCC Current use of life cycle cost analysis 70 60 Responses 50 40 LEED projects 30 All projects 20 10 0 0-25% 25-50% 50-75% 75-100%23 Wali Memon Percentage of projects
  • 24. Findings Types of projects utilizing LCC Project types using LCC Highway/Infrastructure Institutional Residential Renovations Commercial Private Public 0 5 10 15 20 25 30 35 40 45 50 Responses24 Wali Memon
  • 25. Findings Team member(s) initiating the interest of conducting LCC Individual responsible for the analysis LCC Driver and Analyst 60 50 Responses 40 Analyst 30 20 Driver 10 025 Wali Memon
  • 26. FindingsGoals of the LCC Goals of the project’s LCC Goal Very important Somewhat important Not important Response Avg.Reduce operation/ maintenance costs 55 8 0 1.13Extend useful life/durability 47 12 4 1.32Increase occupant productivity/comfort 31 24 8 1.63Conserve natural resources 27 29 7 1.68Future facility alteration 17 37 9 1.87Lower construction costs 16 36 9 1.89Meet government mandates 15 25 21 2.1 Wali Memon 26
  • 27. FindingsLCC application to buildinganalysis LCC application in predictive components Weighted Positive pay- Building component Always Sometimes Seldom Never avg. offHVAC system 41 23 1 0 1.38 94%Lighting/day-lighting 27 30 7 0 1.69 75%Operations and maintenance 27 26 8 2 1.76 59%Windows 23 29 9 2 1.84 50%Insulation 21 31 10 1 1.86 45%Water conservation 19 27 16 2 2.02 45%Exterior finishes/Roofing 23 22 15 4 2 34%Size of building 11 14 20 16 2.67 22%Interior finishes 10 21 17 16 2.61 17%Renewable energy 17 25 19 2 2.1 13%Disposal/deconstruction 5 20 19 20 2.84 11%Foundation/structural elements 4 13 30 16 2.92 3% Wali Memon 27
  • 28. FindingsAccuracy of LCC projectionsAccuracy of LCC projections Better than or No post Building component equal to Less than projected construction Weighted avg. projected follow-upLighting/day-lighting 26 7 20 19HVAC system 29 12 13 17Water conservation 21 8 23 13Operations and maintenance 20 8 20 12Windows 13 4 33 9Exterior finishes/Roofing 9 2 38 7Size of building 9 4 35 5Insulation 13 9 29 4Interior finishes 7 3 34 4Foundation/structural elements 3 4 37 -1Disposal/deconstruction 4 6 33 -2Renewable energy 7 14 24 -7 Wali Memon 28
  • 29. FindingsConstraints encountered in the LCC Constraints encountered in LCC Lack of savings justified Added time involved Inaccurate input data Added cost involved Forecasting uncertainties/ complex tools 0 5 10 15 20 25 30 35 40 45 Responses29 Wali Memon
  • 30. Conclusions Why do you suspect you are not using or under utilizing LCC on the LEED project you are associated with? Shift costs/ budget Lack of expertise/user friendly tools Lack of time30 Wali Memon
  • 31. Conclusions Where are improvements needed in the LCC process? User friendly tools Better input data Owner education benefits31 Wali Memon
  • 32. ConclusionsDo you think LCC is an effective tool to increasesustainable building practices? No 11% Yes 89% Wali Memon 32
  • 33. Future Research How can the cost to perform an LCC be justified? How can the time to perform an LCC be reduced? What improvements are needed in LCC software? How can the industry have better trained LCC practitioners?33 Wali Memon

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