Project Life Cycle:
definition of life cycle costing
Life cycle costing is:
• an economic evaluation method
• that accounts for all relevant costs
• over the investment’s time horizon,
• adjusted for time value of money,
Another Life Cycle
• Why do we want to count?
• What do we want to count?
• How are we going to count it?
• Available data? Estimating?
Carbon Life Cycle –
Embodied carbon –
and fabrication of a product
•Can include energy used
during the design and end-of-
Operational carbon –
once the building is
Construction carbon –
+ /- 20-30% + /- 5% + /- 15%-70%
15-30% 3-4% 5-6% 50-70% 2-4%
a “Carbon Footprint or Carbon Profile equals the overall amount of
carbon dioxide (CO2) and other greenhouse gas (GHG) emissions (e.g.
methane, NOx, etc.) associated with a product along its supply-chain,
including use and end-of-life recovery and disposal….. “
Definitionused in UK constructionindustry
• Embodied carbon – the sum of fuel related carbon
emissions (i.e. embodied energy which is combusted
– but not feedstock energyretained within building
material) and process related carbon emissions (i.e.
non-fuel related emissions which may arise, for
example, from chemical reactions).”
The Inventory of Carbon and Energy (ICE V2.0)
as published by University of Bath, January 2011
To use this data you need to measure the weight of the different
materials in a building. There are two options for using the
1. Transform it into values for products in the units in which
they are procured and use existing estimating measurement
2. Produce a database to estimate weights of materials which
may need a whole new set of rules of measurement and
A dog is for life and not just for Christmas 14
The Wisdom of Crowds
If people do not hear the opinions of others, or if
they render their true predictions anyway crowds
can be incredibly wise.
Morton Thiokol’s stock plunge
Hollywood Stock Exchange
Iowa Electronic Market
Sports Betting Markets
Who Wants to be a Millionaire?
1906 West of England Fat Stock and Poultry Exhibition
The Madness of Crowds:
true or false?
We tend to think of crowds of people as irrational mobs.
IQ Diversity: which group performs better
Alpha Group Diverse Group
In Praise of Experts?
Theorem: If an expert can integrate
every variable considered by any one of
the novices, the expert predicts better
than the crowd of novices.
Else, the crowd of novices will prevail.