Life Cycle Cost Analysis
Assessing the total cost of facility or system component ownership over its lifespan.
Life Cycle Cost Analysis (LCCA) is an important economic analysis used in the selection of alternatives that impact both initial and future costs. It compares initial investment options and identifies the least cost alternatives for various performance periods.
K2M utilizes existing utility data and software-based analysis to benchmark baseline energy usage. This baseline is utilized to evaluate the energy savings potential of various Building HVAC, Lighting and Envelope Alternatives as well as variations in building orientation and geometry.
Our Life Cycle Cost Analysis incorporates the following parameters:
- Lifecycle cost time period
- Inflation rate of labor
- Inflation rate of materials
- Inflation rate of utility costs
- Interest rate of finance
- General Conditions
- Design Fees
- Escalation (as applicable)
- Residual Worth where an alternative has service life beyond the analysis period
- Maintenance Cost