adw developments breeam man05 life cycle costing and service life planning cpd

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ADW Developments provides best practice solutions for the built environment ADW Developments

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ADW Developments carries out Life Cycle Cost (LCC) analysis which meets the requirements for the BREEAM appraisal. Our assessment is made in collaboration with the design team and will demonstrate that the selection of the most appropriate strategy has been made in order to improve design, specification, through-life maintenance and operation. The analysis carried out meets the requirements detailed in the BREEAM Technical Manual to achieve three BREEAM credits under the Man 05, Life Cycle Cost and Service Life Planning Credits. Achieving the first credit ADW Developments carries out a critical appraisal at the feasibility stage of the construction project, reporting service life estimations and maintenance implications for various design and specification options. The appraisal is in accordance with the ISO 15686 Buildings and Constructed Assets - Service Life Planning Part 1 Methodology, with our Reference Service Lives informed by our in-house service life database and third party datasets where appropriate. The Estimated Service Lives are derived using the ISO 15686 Buildings and Constructed Assets - Service Life Planning Part 1 Methodology. We also prepare the initial cost model that forecasts the LCC based on the proposals developed during RIBA Work Stages C/D (concept design/design development) or equivalent, and cover the following stages: Construction Operation - includes as a minimum, utilities, cleaning, management costs Maintenance - includes as a minimum, planned maintenance, replacements and repairs costs We report on the relative merits of alternative designs and specifications, and identify which design development proposals will provide benefits to the client both in terms of LCC and improved building performance. Achieving the second credit For the second credit, we carry out component level LCC analysis on at least two of the following areas: Envelope: e.g. cladding, windows, and/or roofing Services: e.g. heat source, cooling source, and/or controls Finishes: e.g. walls, floors and/or ceilings External spaces Achieving the third credit The model developed under the first LCC credit is updated during RIBA Work Stages D/E (design development/technical design) or equivalent. We advise which alternatives, as identified for the second credit, can feasibly be implemented in the specification, design and final construction of the assessed building. In addition, a maintenance strategy report is prepared. This is informed by the LCC analysis, detailing where and how the need for maintenance has been reduced, and how systems have been included in the specification to facilitate safe, efficient and cost-effective operation and maintenance. Contact Details ADW Developments Mobile: +44 (0)7825 782 999 E-mail: [email protected] Web: adwdevelopments.com

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Page 1: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

ADW Developments provides best practice solutions for the built environment

ADW Developments

Page 2: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

About ADW DevelopmentsADW Developments is a company that

specialises in identifying and delivering best practice consultancy solutions

We help our clients assess the many design, specification and operation alternatives in order to derive a project solution that demonstrates value for money

Page 3: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

MAN 05 Life cycle cost and service life planning CPD

Page 4: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

Today’s CPD Session What is Life Cycle Costing

Why Carry out Life Cycle Costing

How to carry out Life Cycle Costing

BREEAM 2011 – MAN05: Life Cycle Costing

A worked example

Discussion

Page 5: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

What is Life Cycle Costing

Page 6: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

What is Life Cycle Costing ISO15686-1 (2000)

A technique that enables comparative cost assessments to be made over a specified period of time, taking into account all relevant economic factors both in terms of initial capital costs and future operational costs

Simple DefinitionWhat needs to be doneHow much will it cost When will it happen

Page 7: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

What is Life Cycle Costing

ISO 15686 Buildings and Constructed Assets - Service Life Planning

Page 8: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

Why carry out Life Cycle Costing

Page 9: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

Why Carry out Life Cycle CostingCan be used to decide:

whether to accept or reject a project

optimise capital investment (optimise component selection or design)

choosing an optimal combination of interdependent systems - recognising the impact one building system will have on another at the same time

Page 10: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

Why Carry out Life Cycle Costing

TIME

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3MINIMUM LEVEL

CO

ND

ITIO

N FAILURE OCCURS

DETERIORATION STARTS TO

OCCUR

Page 11: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

Why Carry out Life Cycle Costing

TIME

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2

5

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CO

ND

ITIO

N

MINIMUMLEVEL

DETERIORATION STARTS TO OCCUR

FAILURE OCCURS

Page 12: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

How to carry out Life Cycle Costing

Page 13: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

How to carry out Life Cycle CostingSimply...

Identify option Identify any alternatives Identify assumptions Identify future costsAdjust costs to allow for the time value of moneyCompute the LLC for various alternativesConsider uncertainty in input values Select option with the lowest discounted LLC

Page 14: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

How to carry out Life Cycle Costing

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Cumulative Componenet LCC @ Nominal Discountied Costs

Page 15: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

How to carry out Life Cycle CostingSelect Alternative with the Lowest LCCSupporting Economic Measures

Payback (PB) Net Savings (NS) Savings to Investment Ratio (SIR) IRR

Page 16: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

How to carry out Life Cycle Costing Sources for Service Life

Data HAPM Manual (Taylor &

Francis) BPG Building Fabric

Component Life Manual Building Services

Component Life Manual (CIRIA)

Building Services Component Life Manual (BLP)

The Green Guide to Specification (BRE)

Life Expectancy of Building Components (RICS/ BMI)

Guide M: Maintenance Engineering and Management (CIBSE)

Data provided by suppliers and trade associations information

Page 17: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

Sources of Cost dataProfessional Quantity Surveyor’s databank and expert opinionData provided by suppliers and trade associations informationCost-In-Use Tables (PSA)Price Books including:

Hutchins Small Works and Maintenance Construction Cost Guide Volume One: Small Works

Spon's Mechanical and Electrical Services Price Book Spon's Architects' and Builders' Price BookBCIS Wessex Comprehensive Building Price BookBCIS Wessex Painting and Decorating Price Book

How to carry out Life Cycle Costing

Page 18: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

How to carry out Life Cycle CostingAdjusting the Service Life

ISO 15686 Buildings and Constructed Assets - Service Life Planning

Page 19: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

How to carry out Life Cycle CostingAdjusting cash amounts to present value (PV)What is discountingThe year on year cash flows are discounted to

account for the fact that these monies will be worth less in the future than they are today. When the monies are discounted they are expressed in (PVs)

What discount rate to apply?

Page 20: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

How to carry out Life Cycle CostingX/ (1+r)n

When

X= input value

r = rate of interest or discount rate

n = number of years

More information is available on this in the "Green Book" (Treasury 1997, 2000), Appraisal and Evaluation in Central Government, HM Treasury.

Page 21: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

Life Cycle Costing for BREEAM 2011

Page 22: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

BREEAM 2011 – MAN05

To recognise and encourage Life Cycle Costing and Service Life Planning3 credits are available under the BREEAM New

Construction 2011 schemeThese credits are intended to improve design, specification

through-life maintenance and operation of a built asset

Page 23: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

BREEAM 2011 – MAN05 First Credit

A critical appraisal has been completed at the feasibility stage

Building Level LCC at RIBA Stage C/D over a 60 year period of analysis, shown in real and discounted cash flow terms

Includes: Construction Operation - includes as a minimum, utilities, cleaning, management

costs, Maintenance - includes as a minimum, planned maintenance,

replacements and repairs costs Occupancy Disposal

Page 24: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

BREEAM 2011 – MAN05Second Credit

Component Level LCC analysis (at least 2)

Envelope: e.g. cladding, windows and/or roofingServices: e.g. heat source, cooling source and/or

controlsFinishes: e.g. walls, floors and/or ceilingsExternal spaces

Page 25: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

BREEAM 2011 – MAN05Third Credit

Model outlined in the first LCC credit is updated during RIBA Work Stages D/E

The results of the study must be implemented in the specification, design and final construction of the assessed building.

A maintenance strategy is developed, informed by the LCC analysis

Page 26: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

Contact Us

Page 27: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD

Contact Us ADW Developments Ltd has developed an LCC Model and procedure which

meets the requirements for the BREEAM appraisal

We can demonstrate that the selection of the most appropriate strategy has been made in order to improve design, specification, through-life maintenance and operation

The analysis carried out meets the requirements detailed in the BREEAM Technical Manual to achieve three BREEAM credits under the Man 05, Life Cycle Cost and Service Life Planning Credits

Please contact Anthony Waterman [email protected]: +44 (0)7825 782 999

Page 28: ADW Developments BREEAM MAN05 LIfe Cycle Costing and Service Life Planning CPD