Analysis of Life Cycle Cost

Abstract

Life-cycle cost analysis (LCCA) is an economic method of project evaluation in which all costs of the project incurred over its life period are considered to be potentially important to design decision. LCCA is particularly suitable for the evaluation of building design alternatives that satisfy a required level of building performance, but that may have different initial investment costs; different operating, maintenance, and repair costs. However, LCCA can be applied to any investment decision in which higher initial costs are traded for reduced future cost obligations. Paper develops the methodology for the life cycle cost analysis for residential building. From this study we found out that the energy efficiency approach can significantly reduce the building lifecycle cost. Thus LCCA provides a better assessment of the long-term cost effectiveness of a project.