Life Cycle Costing, Value Engineering & Value Management Studies

Life Cycle Cost Analysis (LCCA) is a technique which was researched and developed to enable evaluation and comparison of the construction, operating and maintenance costs of commercial buildings throughout their useful lifespan. Initially applied in the field of building maintenance, LCCA now provides a sophisticated methodology of cost comparisons to achieve optimum long term commercial benefits. It is used for the comparison of costs at project design stage as well as for operating and maintenance cost comparisons of existing buildings and industrial plants. LCCA can be applied to cost manage either the entire life of a building or plant or for shorter specific periods. Given that a building's capital costs are generally regarded as amounting to only 30% of its total costs, the importance of careful cost management during a project's design stage cannot be over emphasized.

Value Engineering (VE), is the application of a technique first developed in the USA to obtain "Value for Money", where value is the relationship between function over cost. The significant elements of capital costs are considered and a detailed review is made of their functionality, and the extent of their requirement in relation to being achieved at the lowest possible cost is examined. The earlier this technique is applied in the design stage the greater the impact it can have. A cornerstone of VE is reliable cost information together with the use of structured brainstorming workshops to extract the maximum benefits to be derived.

Value Management (VM), while similar to VE is a function which focuses on overall objectives rather than specific design and construction elements and is used more appropriately at the point where options are identified and selected rather than in the earlier conceptual stage.

We offer clients the following services in relation to LCCA, VE and VM:

  • Definition of the System of Cost Comparisons, Functionality
  • Collation of Cost Data (Capital, Planned Cost Management, Costs in Use, Assessment of Tax Implications) at Design Stage and Post Completion; Project Performance Analysis
  • Definition of Project Functionality, Design Alternatives, Benefits to be Derived
    Clarification of Appropriate Techniques and Job Plan Management
  • Establishment, Organization and Control of VM Workshops
  • Coordination of Design Team with Other Consultants
  • Cost Benefit Analysis
  • Independent Audits and Reports


Life Cycle Costing, Value Engineering & Value Management Studies image

The importance of careful cost management during a project's design stage cannot be over emphasized

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