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

ADW Developments provides best practice solutions for the built environment

ADW Developments

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

MAN 05 Life cycle cost 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

What is Life Cycle Costing

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

What is Life Cycle Costing

ISO 15686 Buildings and Constructed Assets - Service Life Planning

Why carry out Life Cycle Costing

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

Why Carry out Life Cycle Costing

TIME

1

2

5

4

3MINIMUM LEVEL

CO

ND

ITIO

N FAILURE OCCURS

DETERIORATION STARTS TO

OCCUR

Why Carry out Life Cycle Costing

TIME

1

2

5

4

3

CO

ND

ITIO

N

MINIMUMLEVEL

DETERIORATION STARTS TO OCCUR

FAILURE OCCURS

How to carry out Life Cycle Costing

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

How to carry out Life Cycle Costing

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100

200

300

400

500

600

700

800

900

1,000

Year

0

Year

5

Year

10

Year

15

Year

20

Year

25

Year

30

Year

35

Year

40

Year

45

Year

50

Year

55

Year

60

Cumulative Componenet LCC @ Nominal Discountied Costs

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

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

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

How to carry out Life Cycle CostingAdjusting the Service Life

ISO 15686 Buildings and Constructed Assets - Service Life Planning

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?

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.

Life Cycle Costing for BREEAM 2011

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

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

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

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

Contact Us

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 anthony.waterman@adwdevelopments.comMobile: +44 (0)7825 782 999