FAQ: LCC in Buildings: How to boost Value from Design Phase
Key Takeaways:
- What is LCC? → Life Cycle Cost: CAPEX + OPEX – residual value.
- Why use LCC in buildings? → Reduce total costs and increase long-term value.
- How does more time in design improve outcomes? → Better decisions, less redesign, higher flexibility.
- Is LCC mandatory in public projects? → Yes, but few implement consistently.
- How can buildings be made flexible? → Modular layouts, accessible service routes, adaptable floor plans.
What is LCC?
Answer: Life Cycle Cost (LCC) is the total cost of owning and operating a building over its life, including:
- Capital investment (CAPEX)
- Operational, maintenance, and management costs (OPEX / FM)
- Minus residual value at end-of-life
In Europe, methodologies align with standards such as EN 16627:2015 (Life Cycle Costing in Buildings) and guidance from local public authorities. In Norway, NS 3454 provide structured approaches.
LCC is not an optional calculation. It is a strategic tool for value management, often legally required in public procurements. Planning operations and maintenance in parallel with design and construction ensures cost efficiency and long-term performance.
Why should building owners use LCC?
Answer: LCC highlights the total cost of ownership, not just construction costs.
Key benefits:
- Lower annual operational costs
- Reduced redesign risk
- Optimized energy consumption and maintenance
- Increased building flexibility and residual value
LCC also supports portfolio management, allowing comparisons of projects over time and better financial forecasting. Decisions can be based on documented total cost rather than assumptions.
How does more time in the design phase increase building value?
Answer: Early-phase decisions account for 70–80% of a building’s total life costs.
Allocating more time in the design and concept phase ensures:
- Smarter material and system choices
- Fewer redesigns and delays
- Optimized technical and structural solutions
A study by the American Society of Civil Engineers (2015) shows that projects with dedicated early design time achieve higher quality and overall value.
How is LCC used in public procurement?
Answer: Public clients must consider LCC, but only a small percentage do it consistently.
Best practices include:
- Integrating LCC in tender and contract documents
- Linking LCC to project schedules and key decision points
- Clearly defining roles and responsibilities (e.g., FM consultants, design teams, project owners)
- Ensuring complete and structured FM documentation
This guarantees that operation planning is part of construction planning, not an afterthought.
How can flexible buildings reduce future costs?
Answer: Buildings designed for adaptability reduce refurbishment costs and maintain value.
Flexibility examples:
- Adaptable floor plans
- Modular and upgradable technical systems
- Service routes and shafts designed for future expansion
- Multi-use zoning options
Flexible buildings can accommodate changing user needs or regulatory updates without costly structural interventions.
Also read: Science: Creativity in Architecture is Investment
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