Document downloads - Whole life and life cycle costing

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  • Whole life costing - Worked example 2 table

    The whole life cost (WLC) of an asset is defined as the present value of the total cost of that asset over its operating life (including initial capital cost, maintenance and replacement cost, energy cost and the cost or benefit of the eventual disposal of the asset at the end of its life).

    Whole life costing techniques can be used to evaluate options at the elemental, component and total building levels. For example, during the design process, it may be appropriate to compare window-cleaning access options or alternative heating solutions. At the initial design stage, a whole life comparison of building refurbishment against demolition and new build would recognise the life-cycle efficiencies of the latter, and could be crucial to efforts to establish the correct way forward.

    Examples of each of these option appraisal calculations are included in this table and the other two parts of the worked example.

  • Whole life costing - Worked example 1 table

    The whole life cost (WLC) of an asset is defined as the present value of the total cost of that asset over its operating life (including initial capital cost, maintenance and replacement cost, energy cost and the cost or benefit of the eventual disposal of the asset at the end of its life).

    Whole life costing techniques can be used to evaluate options at the elemental, component and total building levels. For example, during the design process, it may be appropriate to compare window-cleaning access options or alternative heating solutions. At the initial design stage, a whole life comparison of building refurbishment against demolition and new build would recognise the life-cycle efficiencies of the latter, and could be crucial to efforts to establish the correct way forward.

    Examples of each of these option appraisal calculations are included in this table and the other two parts of the worked example.

  • Code of measuring practice

    Published: September 2007
    Reinstated: 23 January 2018
    Effective from: 23 January 2018

    Code of measuring practice, 6th edition was reinstated on 23 January 2018 after publication of RICS property measurement, 2nd edition.

    The 6th edition of the code became effective globally from 18 May 2015 when it was incorporated into the first professional statement, that for offices.

  • Surveyors' construction handbook: life cycle costing (ARCHIVED)

    This document has been archived and is available on isurv for information purposes only.

    Any questions relating to its status and application should be addressed to the RICS QS and construction professional group.

  • Surveyors' construction handbook: elements for buildings (ARCHIVED)

    This document has been archived and is available on isurv for information purposes only.

    Any questions relating to its status and application should be addressed to the RICS QS and construction professional group.

  • Whole life costing - Worked example 3 tables

    The whole life cost (WLC) of an asset is defined as the present value of the total cost of that asset over its operating life (including initial capital cost, maintenance and replacement cost, energy cost and the cost or benefit of the eventual disposal of the asset at the end of its life).

    Whole life costing techniques can be used to evaluate options at the elemental, component and total building levels. For example, during the design process, it may be appropriate to compare window-cleaning access options or alternative heating solutions. At the initial design stage, a whole life comparison of building refurbishment against demolition and new build would recognise the life-cycle efficiencies of the latter, and could be crucial to efforts to establish the correct way forward.

    Examples of each of these option appraisal calculations are included in this table and the other two parts of the worked example.

  • Whole life costing - Discount factor tables

    The whole life costing (WLC) technique is concerned with the assessment of the time stream of costs and revenues that will flow throughout the life of a construction project option.

    As 'money today' has a different value to 'money tomorrow' or 'money in 10 years' time', a technique has to be adopted that will express future costs or revenues in present values for comparative purposes. The process of converting 'future money' to 'present money' is called 'discounting'.

    Discounting involves establishing the discount rate to be used. In making a decision on a discount rate for a particular project, some judgment will need to be exercised about the degree of risk return (interest) and the likely levels of future inflation rates.

    These tables provide assistance in calculating the discount rate and are taken from pages 45-47 in Part 2, section 2 of the old Surveyor's Construction Handbook.

  • Life cycle costing of sustainable design (RICS)

    Published February 2009

    This report, by John Kelly and Kirsty Hunter with RICS Education Trust funding, provides a methodology for assessing the life cycle cost of buildings that incorporate elements of sustainable design.

  • Cost analysis and benchmarking – UK (ARCHIVED)

    This document has been archived and is available on isurv for information purposes only.

    This guidance note summarises the purpose and process of both cost analysis and construction project benchmarking.

    It is based on current practice within the UK and covers the general principles applying to each operation. It does not seek to cover every approach to cost analysis or benchmarking but looks at the subject areas from a practical aspect.

    In addition, while the processes of cost analysis and benchmarking are applicable to the whole life costs associated with the construction and operation of a building, this guidance note considers capital cost only. The principles covered may, however, also be applied to costs in use.

    This is part of the RICS QS and construction standards (the 'Black Book').

  • Cost analysis and benchmarking – global (ARCHIVED)

    This document has been archived and is available on isurv for information purposes only.

    This first edition guidance provides a summary of the purpose and process of both cost analysis and construction project benchmarking.

    The purpose of this guidance note is to ensure consistent practice, delivered in a professional manner that is in line with internationally recognised guidance.

    This is part of the RICS QS and Construction Standards.

  • Cost reporting

    Published: March 2015
    Effective from: March 2015

    This 1st edition guidance note sets out the principles of cost reporting from the perspective of the quantity surveyor to the client during construction.

    This guidance note explains the purpose of cost reporting, the factors affecting outturn cost and explores the different formats and types of cost report.

    This guidance note covers:
    - the purpose of cost reporting;
    - cost reporting models;
    - report formats;
    - establishing the budget;
    - treatment of variable costs;
    - strategic importance; and
    - reporting of loss and expense.

    This is part of the RICS QS and Construction Standards.

  • BIM for cost managers: requirements from the BIM model

    Published: August 2015
    Effective from: August 2015

    This global guidance note should be used as a source of reference for quantity surveyors or cost managers when BIM has been implemented in the life cycle of a project. It offers an awareness of BIM and provides readers with recommendations for good practice when producing measurement outputs.

    This guidance note covers:
    - working in a BIM environment
    - background information on naming structures conventions/data drops
    - internal practice procedures and
    - BIM measurement.

    This guidance note is effective from publication in August 2015.

  • Life cycle costing

    Published April 2016
    Effective from 1 July 2016

    This guidance note summarises what is meant by a life cycle costing and whole life costing service for both new construction works and for the refurbishment of existing assets.

    Covered in this guidance note:
    - standards and definitions
    - essentials of life cycle costing
    - worked examples.

    This is part of the RICS QS and construction standards (the 'Black Book').

  • Value management and value engineering

    Published January 2017
    Effective from 1 May 2017

    This 1st edition guidance note introduces the concepts of value management and value engineering as they relate to construction projects and to the role of chartered surveyors, who have a key role to play in helping manage value across the project.

    Value management and value engineering are both concerned with increasing the ratio between benefit (outputs) and the cost or effort (inputs) required, but are often separated in terms of their timing and their scale. But value is also a relative concept, and one of the roles of project management, supply chain procurement and overall procurement is to manage these imbalances so that the project as a whole provides value to the client.

    This guidance note is part of the RICS QS and construction standards (the ‘Black Book’).

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