Sponsored by ASCE Continuing Education and ASCE’s Architectural Engineering Institute (AEI)  

Purpose and Background

Public and private sector investors in buildings seek reassurances more than ever before that maximum value be received for funds expended. This means that not only initial costs but long-term operational costs must be considered. The latter costs directly affect the total cost of ownership, i.e. the Life Cycle Cost (LCC). They also have a direct impact on the market value of a facility which increases with lower operational cost.

This webinar introduces Life Cycle Costing, based on the American Society of Testing and Materials (ASTM) International Building Economics Standards, as a means to achieve this objective. The methodology, illustrated with simple examples and case histories, ensures that a uniform standardized method is used for calculations and the analysis of investments in buildings, including those related to energy and green buildings/sustainability.

Whether involved in the design, construction, renovation, maintenance, operation, or management of buildings, participants will find it in their interest to understand the principles of the Life Cycle Costing methodology, based on ASTM International standards, and its value as a tool to analyze and lower their total cost of ownership of buildings.  

Learning Outcomes and Webinar Benefits

Assessment of Learning Outcomes

Students' achievement of the learning outcomes will be assessed via a short post-assessment (true-false, multiple choice and fill in the blank questions).

Intended Audience

This webinar will benefit those who can directly or indirectly, from a supervisory or managerial position, affect the economic viability of new and retrofit building construction projects during the planning, design, and operational phases by applying Life Cycle Cost Analysis techniques based on ASTM International Building Economics Standards. These include design architects and engineers, technicians, facility managers, projects and program managers, owners, developers, Green Building and sustainability practitioners, general and design-build contractors, cost managers/consultants and educators. It will also be of interest to management personnel who recognize the benefits of standardizing economic analysis practices within their organization, a task simplified by the adoption of ASTM standards.

Webinar Outline

• The notion of the Life Cycle Costing (LCC) – examples
• ASTM International Building Economics Standards
• Present Value (PV) factors for converting future costs to Present Values (today’s dollar)
• Data requirements and the convention to be adhered to for calculating Life Cycle Costs: an example of the LCC costs of completing HVAC systems
• Evaluating the economic performance of building investments with measures such as the Adjusted Internal Rate of Return (AIRR); an example on calculating investment measures for the additional cost of increasing roof insulation to save energy
• Integrating LCC in the design process, barriers and solutions
• Case histories: chiller VFD, geothermal HVAC, daylighting and other features of a commercial Green Building project
• The Kats Report on the Cost and Benefits of Green Buildings (addresses productivity)
• LCC References