https://doi.org/10.14311/APP.2022.33.0552 Acta Polytechnica CTU Proceedings 33:552–557, 2022 © 2022 The Author(s). Licensed under a CC-BY 4.0 licence Published by the Czech Technical University in Prague METHODOLOGY FOR EVALUATION OF THE LIFE CYCLE OF BUILDINGS WITH A FOCUS ON THE PRIVATE SECTOR Renáta Schneiderová Heralová∗, Eduard Hromada, Jakub Holcman, Stanislav Vitásek Czech Technical University in Prague, Faculty of Civil Engineering, Department of Construction Management and Economics, Thakurova 7, 166 29 Praha 6, Czech Republic ∗ corresponding author: heralova@fsv.cvut.cz Abstract. The paper describes the innovative methodology for the evaluation of the life cycle of buildings, which will be used in construction projects of Skanska, or other construction companies, in selecting the optimal solution from the point of view of construction engineering and LCC. The aim is to help LCC to be perceived by construction practice as a topic that needs to be addressed at the beginning of each construction project. The quantification of life cycle costs based on relevant input data on the technical parameters of the construction, structural elements and equipment, the time period of incurring the related costs should be an important basis for the decision of the investor, designer and future user of the building also with regard to environmental and social aspects, and in particular the long-term economic consequences. Keywords: Building, life cycle, life cycle costing, methodology. 1. Introduction This paper deals with innovative methodology in con- struction company Skanska concerning the evaluation of construction’s life cycle costs (LCC). Mentioned methodology will be applied to construction projects of blocks. This will lead to optimal choices account- ing for technical aspects of construction, and LCC from the very moment of designing a construction. According to the International Standard [1], life cy- cle costing is a valuable technique that is used for pre- dicting and assessing the cost performance of build- ings. Life cycle costing is one form of analysis for de- termining whether a project meets the clients perfor- mance requirements. Life cycle costs (LCC) mean in- volving all of the costs deriving from the use of build- ings during their entire life span. The LCC method- ology is a tool for evaluating these costs over time. Its main goal is to assess the various designs, where those designs differ not only in their acquisition costs but also in their operational and maintenance costs. Assessment of life cycle costs is a valuable tool for both the construction company and the eventual user of construction. Both company and end user are clearly informed about total costs from the begin- ning of construction. Therefore, they do not need to concentrate only on investment costs or use them as the single criterion of choice. Options of construc- tion may be designed as soon as the designing phase of a project. So the end user obtains higher added value and may compare variant designs to reach op- timal value for money. Variant designs enable better choices of construction suitable for the end user’s re- quirements. End user may plan eventual maintenance costs accordingly. This advantage may be the key factor especially for end users who finance the con- struction with third party resources, such as loans. Life cycle planning lowers the amount of risk in the investment. Transparency can be reached as to oper- ational costs of construction. With life cycle costing it will be possible to benchmark competing projects. LCC analysis has already been implemented as one of the measures for varied certifications, which serve for project evaluation (BREEAM, LEED, SB Tool, etc.). 2. Literature overview Buildings and constructions are long-term posses- sions. This is the reason why all decisions connected with a construction project have long-term and sig- nificant impact [2]. Construction project investors have often focused only on the acquisition costs, when they were about to make decisions on such matters as the building design, facilities, fittings. They often neglected future operation and maintenance costs [3]. Life cycle costing is a method assisting an effort to estimate the total cost of ownership. The method is able to help in making decisions within building investment projects [4]. Life cycle costing is partic- ularly useful for estimating total costs at the early stage of a project [5]. Life cycle costing consists of all costs directly connected to a construction during its whole existence. That is building costs, main- tenance and renovation of construction units’ costs, facility equipment costs, facility management and op- eration costs, demolition costs. [6] Many authors also link other factors closely with life cycle cost- ing. Among such factors, let us name externalities, non-construction costs and income which arise from 552 https://doi.org/10.14311/APP.2022.33.0552 https://creativecommons.org/licenses/by/4.0/ https://www.cvut.cz/en vol. 33/2022 LCC Methodology for Private Construction Sector ID Category Designation Description 1 Const. MCW1 WORKS AND PROVISIONS 2 Const. 1 Ground works 3 Const. 2 Ground solidification 4 Const. 3 Vertical and complete constructions 5 Const. 4 Horizontal constructions 6 Const. 6 Finishes and flooring 7 Const. 60 Finishes internal 8 Const. 63 Flooring and floor construction 9 Const. 9 Other constructions and works, demolition 10 Const. 90 Other constructions and works 11 Const. 94 Scaffolding, construction lifts 12 Const. 96 Demolition of constructions 13 Const. ACW2 WORKS AND PROVISIONS 14 Const. 71 Insulation 15 Const. 711 Water, moisture and gas insulation 16 Const. 76 Constructions 17 Const. 763 Assembled constructions 18 Const. 764 External plumbing 19 Const. 766 Carpentry 20 Const. 767 Ironworks 21 Const. 768 Panel work - windows 22 Const. 77 Flooring 23 Const. 771 Floors - tiled 24 Const. 775 Floors - wooden, frieze, floating 25 Const. 776 Floors - thin finish 26 Const. 777 Floors - cast, synthetic 27 Const. 778 Floors - double 28 Const. 78 Finishing works 29 Const. 781 Ceramic tiles 30 Const. 784 Paintwork and wallpapers 31 Const. 788 Fire-fighting devices 32 Const. 789 Facade casing and contact insulation 33 Const. 790 Roof constructions 34 Const. 791 Roof vegetational 35 Const. 792 Roof trafficable 36 Const. 793 Roof non-trafficable 37 Const. 794 Roof movable 38 Monolith MCW1 WORKS AND PROVISIONS 39 Monolith 2 Ground solidification 40 Monolith 27 Foundations 41 Monolith 3 Vertical and complete constructions 42 Monolith 31 Construction walls 43 Monolith 33 Columns, pier, framework 44 Monolith 34 Walls and partitions 45 Monolith 4 Horizontal constructions 46 Monolith 41 Ceilings and ceiling constructions of buildings 47 Monolith 43 Stairway constructions and ramps 48 Infrastructure 101 Sewage connection 49 Infrastructure 102 Waterway connection 50 Infrastructure 103 Heating connection 51 Infrastructure 105 Gas connection 52 Infrastructure 106 Weak current service line 53 Infrastructure 107 Outdoor water distribution 553 R. Schneiderová Heralová, E. Hromada, J. Holcman, S. Vitásek Acta Polytechnica CTU Proceedings 54 Infrastructure 108 Outdoor sewage 55 Infrastructure 109 Outdoor gas distribution 56 Infrastructure 110 Outdoor weak current service line 57 Infrastructure 111 Outdoor heavy current service line 58 Infrastructure 112 Outdoor lights 59 Infrastructure 113 Electricity substation 60 Infrastructure 114 Ground preparation 61 Infrastructure 115 Roads, pavements, public equipment 62 Infrastructure 117 Landscaping 63 Infrastructure 118 Fencing 64 Infrastructure 119 Traffic signs 65 Infrastructure 120 Structural walls 66 Air conditioning 240 Air conditioning 67 Heating / Cooling 731 Central heating 68 Sanitary units / Gas conduit 721 Sanitary units 69 Sanitary units / Gas conduit 723 Indoor gas conduit 70 Heavy current 210 Heavy current, lightning rod 71 Weak current 211 Weak current 72 Electric fire alarm 212 Electric fire alarm 73 Measuring and regulation 213 Measuring and regulation 74 Fire extinguishing equipment 214 Semi-stable fire extinguishing device 75 Lifts 330 Lifts, escalators 1 Major construction works, 2 Additional construction works. Table 1. Structure of construction units and technologies with regard to LCC. the use of a construction in a specific location [7]. Other authors are dealing with the topic of nearly Zero Energy Buildings (nZEB) and cost-optimal level [8]. Building certification is also closely related to the issues addressed. There is a national certification system SBToolCZ in the Czech Republic. The cer- tification systems were focused on new construction originally [9]. 3. Construction project database The LCC methodology will include a draft of Skan- ska construction project database. The database has already been created with Microsoft Access. It cur- rently contains rough data of projects. The database will serve as an individual tool as well as data source for other programs. For the sake of clarity, the Ta- ble 2 shows the structure of construction units and technologies with regard to LCC. Decisions concerning the choice of the construction technology and construction materials are not any longer based entirely on technical and economic at- titudes, but are becoming increasingly influenced by life cycle cost and environmental considerations. In fact, the capability to influence the outcomes of whole life ownership is enormous during the design phase. The types of material specified, the quality of the de- sign and the contracting method have to be chosen directly upon operation and maintenance costs. For example, choice of materials for horizontal and verti- cal supporting structures influences the total building time, transportation of materials and construction life span. Moreover, it influences the environmental impact of construction. It is well documented that the majority of deci- sions about operating, maintenance and rehabilita- tion costs are predetermined at the design stage. Ba- sically, it is crucial to establish a device at the de- sign stage that brings together the life cycle costing, service life, environmental life cycle assessment, and risk associated with decisions taken at this stage. The proposed methodology will enable variant solutions of a construction project which will help the construc- tion company minimize environmental impact and life cycle cost. Regarding the construction site itself, these may include air pollution caused by transporta- tion and dust fall. The level of dust in the air may be reduced by sprinkling dirt roads within construc- tion sites. However, water costs for sprinkling enter the total building costs, and they are not perceived as either economically efficient or ecological in terms of introducing water to the landscape in appropriate ways. Moreover, this example is set in the operational phase which is currently under minimal surveillance when investment decisions are made. The methodology assigns economical life cycle of a construction to be 30 - 40 years. Within this period it is not necessary to renovate carry constructions or stabilize them in any way unless an emergency situ- ation. Most construction elements are protected by finishes which need maintenance. This will be taken into account in the application. Therefore, carry el- ements do not appear in the following phases of the life cycle, unlike maintenance and renovation costs of 554 vol. 33/2022 LCC Methodology for Private Construction Sector Maintenance level (LM) Annual costs Service life Sub-standard maintenance Reduction by 20 % Reduction by 5 % Standard maintenance No change No change Above-standard maintenance Increase by 20 % Increase by 5 % Table 2. Maintenance level. other construction units. (Demolition of construction is not considered in the model.) Concrete constructions may only enter the main- tenance phase in case there are face concrete units which would need renovation during the building life cycle. These issues can be treated as soon as the design phase - the relation of construction demands in operational and maintenance phase. Use of con- crete suggests variants of monolithic constructions or prefabricated units. Monolithic ceiling construction has ultimately different characteristics than prefabri- cated construction. With prefabricated units, there is higher risk of plaster ruptures or there are higher costs of plaster in such quality as to ensure consistent finish. When considering the eventual life cycle phase - demolition - waste management would need to be taken into account, as well as transportation and/or recycling materials (such as concrete). Environmen- tal issues and health protection should not be under- estimated in this phase, as well as costs connected with these issues. An environmental LCC methodol- ogy takes into consideration not only the main cost categories (investment costs, operating costs, main- tenance cost), but also external environmental costs. The environmental impact may carry consequential costs for society. In general, constructed buildings, materials and products may have environmental im- pacts. The processes of manufacture, transport, as- sembly/disassembly, maintenance and disposal linked to buildings result, for example, in emission of green- house gases. Subsequently, significant investment will be needed to neutralize these consequences in the fu- ture. Calculation should include the costs of green- house gas emissions calculated using cumulated car- bon costs for the period which is analyzed (through prices of emission allowances). The LCC methodol- ogy evaluates costs of mitigating/reducing environ- mental impacts. As a result, the best value solution could be identified from both economic and environ- mental perspectives. 4. LCC calculation tool Life cycle cost calculation will be performed by a tool which was created by the authors of this paper. The application SW is used for the calculation of the LCC for ground structures in the Microsoft Excel operat- ing environment. The LCC calculation includes the costs of acquisition, maintenance, service, renovation and energy consumption for designed development project options. It is a complex tool the operation of which is subject to the entry of input values to several separated topic-related spreadsheets. This separation was chosen for the sake of better clarity of data en- tered to the SW. The tool offers the possibility of the entry of three options of the design. Each option makes it possible to follow up to sixty years period of the project including the possibility to postpone the starting date of its operation. This time shift takes into account a postponement and the lead time of the construction works. The following sections describe individual spreadsheets that are included in the cal- culation of the LCC in the designed application SW. The spreadsheet Recapitulation is used to summa- rize the basic identifiers of the project and clear eval- uation of individual LCC calculation options. The software shows both figures and graphic representa- tion of individual LCC sections and the total LCC of the project including key parameters of the calcula- tion (the nominal discount rate and the monitoring period). The LCC formula components are converted to the current value in individual periods using the discount factor. The additional (comparative) indices include "LCC per 1 m2 of the floor area", and "The ratio (budget costs/LCC)". The spreadsheet Acquisition Costs is used for the calculation of the total acquisition construction costs of individual project options that are divided into two groups. The first category includes the structuresť acquisition costs included in the maintenance, oper- ation and renovation. The other category includes structures where the maintenance, service and reno- vation costs are expressed by a lump sum. In contrast to the above, costs of structures included to the main- tenance, operation and renovation are calculated on individual basis. The Model Parameters spreadsheet is used for the entry of key inputs for the calculation of the LCC total net present value such as the monitoring pe- riod, inflation rate, actual discount rate, anticipated postponement of the project implementation and an- ticipated construction period for designed options. The spreadsheet Structural Element is used for the entry of key inputs for the calculation of the total present net value of the LCC such as the acquisition price, area, service life, maintenance costs, individual structural element service regularity and costs. More- over, the spread sheet makes it possible to enter the maintenance level (LM) to the structural elements. It uses a specific coefficient to modify their maintenance costs and their service life (for details see the Table 2 below - starting values). 555 R. Schneiderová Heralová, E. Hromada, J. Holcman, S. Vitásek Acta Polytechnica CTU Proceedings Figure 1. Evaluation of design options - life cycle cost. The spreadsheet Operation_Energy is used for the calculation of energy price during the monitoring pe- riod for individual design options. The spreadsheet includes respective results diagrams for a better pre- sentation. Three energy types consumption is moni- tored: electric power, gas and water. The calculations are based on designed energy consumption for indi- vidual technological systems included in the project (usually in the document called Building energy per- formance certificate (BEPC). Each option specifies eight pre-defined technologies that could be included in the project. Moreover, there is a so called optional item available that can be used for the entry of any technology whatsoever that has been added to the project. Not all technologies have to be accounted for in all cases. Sometimes only the most relevant ones from the point of view costs can be included. On the spreadsheet Structure, there is a key calcu- lation tool for the partial parameters of the total net present value of the LCC such as the service life in- cluding maintenance level, number of renovation cy- cles in the monitoring period, acquisition costs, reno- vation costs, maintenance costs including the mainte- nance level, the number of service cycles in the mon- itoring period and costs of service of structural ele- ments of individual design options. The spreadsheet Renovation, Maintenance and Op- eration is primarily designated for the graphic repre- sentation of acquisition costs, renovation costs, main- tenance costs, service costs and operation costs bro- ken down to individual years converted to the present value using the discount factor. A summary table is available for the service, renovation and maintenance with three maximum and minimum cost values for individual structural elements. 5. Case study A benefit of the LCC calculation tool is the possibil- ity to model the life cycle costs for individual design options with different input parameters. That means that the user can choose the more efficient solution for him/her. For instance, he/she may find out what will be the impacts of a more expensive but energy saving option like not only on energy costs but on the total LCC, too. Similarly, if he/she includes "maintenance" free equipment that requires higher acquisition costs, there is an apparent impact residing in the reduction 556 vol. 33/2022 LCC Methodology for Private Construction Sector of the maintenance costs but also in the value of the total costs of this project design option. The model includes a graphic processing of data for the presentation of results to all stakeholders. The Data Recapitulation is the most useful tool for the analysis of the building LCC for any manage- rial decisions. This is the presentation of results and basis source document for the adoption of respec- tive decisions in the investment project preparation phase. Any project can be integrated to the calcula- tion model. Having added various design options, we can find out the impact of the given change on the total costs. Anticipated changes can be addressed on individual basis or as summary change sets. The given recapitulation example clearly indicate the load of the project when we take into account the mainte- nance, service and building operation (energy) costs. The key importance of the developed model resided in its capability to define the advantageous combina- tion of the designed technologies for the economical operation. This is one of the most essential aspects from the point of view of the building life cycle costs. The optimal combination of the technological units becomes an essential quantity for the entire building life cycle. The model cannot secure the presence of the complete offer of technologies as may be available on the construction market. Properly specialized and authorized designers should be aware of such informa- tion. The model can look at the technologies from the framework of the interval of performance, consump- tion of energy or operating costs. The combination of the most expensive systems does not guarantee the problem-free and low cost operation of the building. Chosen technologies have to be able to communicate with each other, i.e. they have to be effective. This is the most demanding part of the LCC calculation. The developed tool is therefore designed as an aid for those company workers who are in charge of the preparatory phase of the project. Given the fast de- velopment of technologies, it will be necessary to see the future results as just recommending but not bind- ing data that are correct for the entire economic life period. 6. Conclusions One of tools use for the assessment of the economic sustainability of designed buildings is the analysis of life cycle costs that is executed based on relevant in- put data on technical parameters of the building de- sign, structural elements and equipment, related time interval of the costs that incurred. The analysis be- comes an important underlying document for the de- cision of the investor on the identification of the best option of the building design taking into account also environmental aspects and long-term economic con- sequences. The analysis may be a significant market- ing tool focused on the future building user to whom it presents the environment-friendly parameters and economic sustainability of the building. The evalua- tion of a construction project on the basis of its life cycle is included in certification systems evaluating the quality of buildings. The analysis of life cycle cost is assessed as a pertinent tool for improving the sustainability of building structures. It is advisable that both professional and lay popu- lation realize the necessity of exploring both acquisi- tion costs and all combined other costs during the entire life cycle when making decisions about new constructions. 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