FPB ICONS: Life Cycle Costing

Life Cycle Costing simply means what is the cost of the product or the service over its life cycle. In many cases that which is dearer at day one is actually cheaper in the long term, therefore careful consideration in future-proofing tomorrow’s buildings life cycle costing analysis should be extensively done and demanded.

Yesterday:

Yesterday life cycle costing was not necessarily an issue. Things weren’t made in mass production in plastic nor were they imported from Asia . Yesterday things were built to last. Mass production and cost of raw materials were not necessarily an issue. We have all heard it “they don’t make it like they used to!” or “the cost of the part costs more than the original purchase!”

Today:

Today cheap products, mass produced and a throwaway society has meant that many of the building components to create a home have been supplied with no consideration for life cycle costing. A great example of this is in the commercial area where many buildings are costing more per annum to maintain than they do to rent. Similar signs are among residential dwellings recently built. What looks like gold or chrome comes off on your fingers or is plastic. As providers of products and developers of buildings continue to think from the hip and not the head we are going to see the life cycle of today’s building needing regular upgrades and maintenance.

Tomorrow:

Tomorrow will see many appliances, pieces of hardware and components within the building industry made with no replaceable parts. Total sealed working units will mean that once it’s past its use by date it will be a throwaway. We have seen technology changing that today’s model is unable to be replaced by tomorrow’s model. Therefore careful consideration in life cycle costing and product choice is imperative if one is to build a future-proof home. Construction costs, land and money will never be cheaper than they are today. So why is it that we continually try to build cheaper more cost-effective construction when tomorrow’s building should be future-proofed against costly maintenance and replacement changes?

<<< BACK

Lester/management/busdev/life cycle costing