Design Economics for the Built Environment: Impact of Sustainability on Project Evaluation

Chapter 19Life Cycle Costing and Sustainability Assessments: An Industry Perspective with Case Studies

Sean Lockie

19.1 Introduction

Sustainability is a critical consideration affecting the design, construction, operation and maintenance through to the disposal of an asset. The environmental impact of constructing, operating and maintaining the built environment is a particularly important element of sustainability. In general, the materials and products used in construction cause environmental impacts from manufacture, transport, assembly or disassembly, maintenance and decommissioning and/or disposal. Additionally, constructed facilities generate a significant environmental impact in their own right due to the operations carried out during their in-use phase. Taken together, the environmental impacts are highly significant and should be addressed at the design and planning stages.

This chapter explores the relationship between life cycle costing and sustainability through the application of life cycle costing as a technique to make an informed decision about the trade-off between economic, environmental and social costs. It starts with key sustainability considerations at the early stages of the design process. The chapter also explains the key elements of the Standardised Method of Life Cycle Costing¹ (SMLCC) and discusses the life cycle costing methodology as a tool in assessing the sustainability of the built environment. The life cycle costing methodology allows for the ...