This dissertation provides a critical analysis of the effectiveness of life cycle costing (LCC) as a decision-making tool at design stage, including a literature review focused on identifying and critically discussing the theoretical benefits of LCC and the main obstacles to practical application of the technique.
A fieldwork study of 11 semi-structured interviews was conducted with construction professionals who have experienced the application of LCC in industry. Based on their feedback and the main findings of the literature review the dissertation concludes that LCC can, with specific projects and clients, be effectively used to aid design decision-making. A series of guidelines have been developed to avoid the technique being used simply as a budgeting exercise, but rather as a bottom-up decision-making strategy, underpinned by building operation and maintenance regimes.
Employing LCC was found to benefit clients by helping them appreciate the impact that early stage design decisions can have on long-term performance of the facility. Using LCC as a decision-making framework compels construction clients to think of the building from an operational point of view at an early stage in the design process, resulting in more thought out solutions, which enhance fitness for purpose.
Mr Giacomo Mastantuono
Giacomo graduated with first class honours in Project Management for Construction from University College London and is currently attending an MPhil in Real Estate Finance at the University of Cambridge. He is passionate about all aspects of the built environment and is especially interested in being able to get involved in projects throughout their whole development cycle from early inception phases to completion and operation. Giacomo is also an RYA Skipper with a life-long passion for sailing and the nautical industry.
“The depth of knowledge shown in this dissertation is highly exceptional at the undergraduate level. The research questions are carefully justified and highly relevant. Based on a set of semi-structured interviews with senior practitioners in the industry, the dissertation offers a mature analysis of the realised qualitative data. It is exemplary in its presentation and sets a standard to which all undergraduates should aspire.”