Fundamental math for every real property owner… Knowledge Problems + Data Problems + Management Problems = Outcome Problems
Facilities and infrastructure project investments
have long-term consequences.
Knowledge Problems
- Lack of recognition by senior management of the linkage between between the built environment and organizational mission
- Low level of understanding of both life-cycle total-cost-of-ownership management and integrated lean planning, procurement, and project delivery principles and processes
Data Problems
- Failure to require common terms, definitions, and data environments
- Failure to leverage locally researched detailed line item cost data
- ‘Ad-hoc’ data management resulting in duplication of effort, errors, and omissions
Management Problems
- Lack of continuous competent leadership
- Focus upon command and control versus enabling local expertise and decision-making
Knowledge Problems + Data Problems + Management Problems = Outcome Problems
Why should we care… Construction projects and physical infrastructure contribute to 40 % of carbon emission, consume 40 % of global energy & also consume 32 % of the world’s resources….. yet, 75-95% of cost of operation, maintenance & replacement costs can be determined during the procurement stage… so….
www.4bt.us
References
Cartlidge, D. P. (2004). Procurement of built assets. Elsevier Butterworth-Heinemann, 2004.
Eric Korpi, & Timo Ala‐Risku. (2008). Life cycle costing: a review of published case studies.
Heralova, R. S. (2017). Life Cycle Costing as an Important Contribution to Feasibility Study Construction Projects. Procedia Engineering
Janz, D., & Westkämper, E. (2007). Design to Life Cycle by Value-Oriented Life Cycle Costing. In Advances in Life Cycle Engineering for Sustainable Manufacturing Businesses
Kirkham, R. J. (2005). Re‐engineering the whole life cycle costing process. Construction Management and Economics
Luu Duc Thanh, Ng S. Thomas, & Chen Swee Eng. (2005). Formulating Procurement Selection Criteria through Case-Based Reasoning Approach. Journal of Computing in Civil Engineering
Mostavi, E., Asadi, S., & Boussaa, D. (2017). Development of a new methodology to optimize building life cycle cost, environmental impacts, and occupant satisfaction.
Woodward, D. G. (1997). Life cycle costing—theory, information acquisition and application. International Journal of Project Management
Goh, B. H., & Sun, Y. (2016). The development of life-cycle costing for buildings. Building Research & Information
John W.Bull. (2015). Life Cycle Costing: For the Analysis,Management & Maintenance of Civil Engineering Infrastructure
PD 156865:2008 Standardized method of life cycle costing for construction procurement. A supplement to BS ISO 15686-5. Buildings and constructed assets. Service life planning. Life cycle costing. (2008). BSI Standards Limited.