Lifecycle cost analysis is a key element in most construction cost management processes. Understanding how lifecycle cost analysis methods work can help your company to make the most practical choices for new buildings and construction projects. By considering the long-term implications of choices made during the construction process, you can enjoy greater control over the costs incurred during operation of your facilities now and in the future.
What Is Lifecycle Cost Analysis?
Most construction budgeting processes focus narrowly on the cost of various material choices, building plans and other elements that can impact the quality of the project and the amount you will pay for the options you select. A construction cost estimator is generally used to determine the short-term costs associated with a project. For long-term lifecycle cost analysis, however, the costs of operating the building and the cost of ownership over the entire expected life of the building are determined. This can provide a clearer picture of the actual value of additions and choices for your next construction project.
Making the Most Cost-Effective Choices
By taking the long view when engaging in cost management of construction projects, your company can enjoy the benefits of lower operating costs and improved energy efficiency. In essence, lifecycle cost analysis is designed to let you spend a little more during construction in return for savings throughout the life of the building:
- Adding insulation during the construction phase can increase the price you and your company will pay for your project. This addition can pay off in lower utility bills and improved comfort inside your facility or office building.
- Upgrading to more durable plumbing fixtures and pipes can extend the useful life of these items. This decision can lower the overall cost of operations by reducing the need to replace these pipes and fixtures and allowing uninterrupted use of the building for a longer period of time.
By comparing the initial cost of these options with the savings possible over the life of the building, you can make the most informed choice when planning your construction project. Working with a qualified construction cost management company can provide you with added help in integrating lifecycle cost management into your overall planning process.
At Halford Busby Construction Company, we specialize in lifecycle cost management services designed to provide you with added information on the value of various additions and choices during the planning phase of your construction project. Our consultants can provide you with the most effective guidance on all aspects of your construction activities, allowing you to enjoy the benefits of our experience and expertise. Call us today at 281-920-1100 to discuss your project with our skilled and knowledgeable professional consultants. We look forward to working with you and your company.