1. Scope

1.1 This practice establishes a procedure for evaluating the life-cycle cost (LCC) of a building or building system and comparing the LCCs of alternative building designs or systems that satisfy the same functional requirements.

1.2 The LCC method measures, in present-value or annual-value terms, the sum of all relevant costs associated with owning and operating a building or building system over a specified time period.

1.3 The basic premise of the LCC method is that to an investor or decision maker all costs arising from an investment decision are potentially important to that decision, including future as well as present costs. Applied to buildings or building systems, the LCC encompasses all relevant costs over a designated study period, including the costs of designing, purchasing/leasing, constructing/installing, operating, maintaining, repairing, replacing, and disposing of a particular building design or system.

2. Referenced Documents (purchase separately) The documents listed below are referenced within the subject standard but are not provided as part of the standard.

ASTM Standards

E631 Terminology of Building Constructions

E833 Terminology of Building Economics

E964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems

E1057 Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and Building Systems

E1074 Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems

E1121 Practice for Measuring Payback for Investments in Buildings and Building Systems

E1185 Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems

E1369 Guide for Selecting Techniques for Treating Uncertainty and Risk in the Economic Evaluation of Buildings and Building Systems

E1765 Practice for Applying Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments Related to Buildings and Building Systems

E1946 Practice for Measuring Cost Risk of Buildings and Building Systems and Other Constructed Projects

E2204 Guide for Summarizing the Economic Impacts of Building-Related Projects

Keywords

building economics; building systems; cost analysis; engineering-economics; life-cycle costs; present-value analysis;

ICS Code

ICS Number Code 91.010.20 (Contractual aspects)

DOI: 10.1520/E0917-05E01

ASTM International is a member of CrossRef.