New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009

Life Cycle Costing

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International Masonry Institute 2009

Life Cycle Costing

New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009

What is Life Cycle Costing?
“An economic assessment of a building or building component that considers all the significant costs of ownership over its economic life…expressed in terms of equivalent dollars.” Dr. Stephen Kirk

Life Cycle Costing
Expert life cycle costing consultants IMI’s third party expert is Dr. Stephen Kirk Co-author of Life Cycle Costing for Facilities, Published by R.S. Means

Embodied Energy:

The amount of energy invested in a building, from the light over the draftsman's table, through construction including all the energy invested in the materials, all the lighting, heating, cooling, maintenance necessary for building operation, including, ultimately the energy invested in demolition at the end of its useful life.

James Marston Fitch

Life Cycle Costing

Try to determine on your own own. What is the advantage of having Life Cycle Costing information? Making an informed decision is all about having the right information at the right time. design professional or CM the opportunity to compare the lifecycle costs of a group of wall or f f f floor systems while there is still time to make informed decisions as to the best value for their specific application. Go to the IMI web site (www. Life Cycle Costing Instrument The Life Cycle Cost instrument that IMI uses gives an owner.New York State School Boards Association 2009 Annual Convention.imiweb.org) and request to have one run to your specifications. 2009 How does one get access to Life Cycle costing information? Hire an expert consultant to do a custom study for you. NYC October 15-18. Life Cycle Costing .

NYC October 15-18. QUIZ #1 Is Life Cycle costing the same for everyone? Not always Different building types Different values Green: The Right Thing to Do Life Cycle Costing .New York State School Boards Association 2009 Annual Convention. 2009 How did IMI develop an instrument to determine Life Cycle Costs? IMI hired a third party expert to develop the system using data that is d l th t i d t th t i readily available and recognized by the design and construction industry.

Labor Recycle components / Disposal Factors to consider: Initial cost Daily or typical maintenance costs Energy costs Regular but periodic maintenance Major renovation / restorations Inflation Building lifespan Life Cycle Costing Demolition . How Can Consideration of Life Cycle Cost add value? Cost of operation Life Cycle Costing exceeds building value Added value Poorly considered Embodied Energy ($) Carefully considered y g Life Cycle Costing Lifespan of Building Construction Resources committed: Mining. 2009 realizes that a building’s initial capital cost amounts to only a fraction of the total cost of running and maintaining it. Energy. NYC October 15-18. Manufacturing. recognizes that total life cycle costing i an essential part of ti is ti l t f such holistic thinking New York State School Boards Association 2009 Annual Convention.Green Thinking takes the long-term view and looks at the larger impacts on the environment and society.

NYC October 15-18. Continuing DETERIORA ATION Point at which initial rehabilitation or preservation takes place Frequently spaced interventions for maintenance Amount of deterioration Rate of deterioration TIME Intervention – Single Event Point at which single rehabilitation or restoration event takes place Rate of deterioration Amount of deterioration TIME Continuing rate of deterioration DETERIORA ATION Life Cycle Costing Demolition .New York State School Boards Association 2009 Annual Convention. 2009 What is the lifespan of a building? Lifespan of Building 0 100 200 300 Construction Intervention Maintenance Restoration.

NYC October 15-18.New York State School Boards Association 2009 Annual Convention. 2009 What is the lifespan of a building? Lifespan of Building 0 100 200 300 Construction Bay City Train Depot QUIZ #2 Name at least 3 key factors to consider when preparing a LCCA? Initial cost Daily or typical maintenance costs Inflation Executive Order 13327: Federal Environmental. and Transportation Management Into effect Jan. 2008 Aimed at Improving energy efficiency I i ffi i Reducing greenhouse gasses Considers sustainable environmental practices Acquisitions of goods and services Life Cycle Costing Demolition . Energy.

recommended method for accomplishing these goals National Institute of Standards and Technology (NIST) Handbook 135 “Life Cycle Costing Manual for the Energy Management Program” Standard life-cycle costing method Developed in 1987 Revised in 1996 NIST Handbook 135 Serves as the definitive guide for developing LCCA studies. Provides defined discount rates for LCC NIST annual supplements provide current rates.New York State School Boards Association 2009 Annual Convention. NYC October 15-18. 2009 Executive Order 13327: LCCA . Life Cycle Costing .

E917 – 05 Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems E1057 – 05 Practice for Measuring Internal Rate of Return in Buildings & Building Systems Life Cycle costing studies help to control costs Considers long-term material choice implications Improves ability to make better design choices EXAMPLE: Flooring options: carpet vs. Most cost effective option for a busy high school public area? Most cost effective for leased office space? Life Cycle Costing . terrazzo.QUIZ #3 What is the “Life Cycle Costing Manual for the Energy Management Program”? New York State School Boards Association 2009 Annual Convention. 2009 NIST Handbook # 135 ASTM Standards Help in the development of LCCA studies. NYC October 15-18.

QUIZ #4 How does Life Cycle fit into sustainable projects? Life cycle is becoming more important to LEED projects. ASTM continuing to look at life cycle. 2009 Carpet / Terrazzo $ / SF 20 10 7 Years 14 21 28 35 Current Decisions = Long-term Implications Only practical opportunity to minimize your long-term maintenance costs lie in the choices made during design. Innovation and Design points awarded for i t d df Cradle to Cradle product certification. NYC October 15-18. Poor choices impact Budget Building performance for the lifespan of the structure.New York State School Boards Association 2009 Annual Convention. Life Cycle Costing 1 .

Life Cycle Costing 1 . 2009 Wall or floor .consideration factors Initial Cost Maintenance Costs Energy Costs Non-monetary Considerations Cost Analysis Report Initial Costs are like construction estimates. Cost adjustment factors per CSI division for each location.New York State School Boards Association 2009 Annual Convention. Cost an approximate 10’ X 10’ area then divide back to get an average square foot cost. How it’s done: Produce a sketch for each system and indicate what portion of the wall or floor is included. NYC October 15-18. No Present Worth (PW) analysis because all these costs occur at the beginning.

by building type. Break down systems to components and price. Long-term & daily cost were considered. Means was used as the data source. Cost Analysis Report Replacement Cost deals with major maintenance or replacement costs Present Worth (PW) represents purchasing power Present Worth addresses: Periodic spending and costs Purchasing power changes in dollar over time Maintenance Cost Whitestone . 2009 Initial Cost R. Life Cycle Costing 1 .field gathered. Costs . labor. equipment. Data .S. Costs include material. NYC October 15-18.data source. overhead and profit.New York State School Boards Association 2009 Annual Convention.

2009 Energy cost: ASHRAE Performed by energy analysis consultant. Example of non . Uses heating/cooling industry software Calculations performed for specific wall types. Different clients have different needs/ priorities.monetary environmental sustainability desire Client placing high priority on LEED platinum Weights and Scores Weights define clients desires and criteria: Image and Aesthetics Color Rendition Environmental Sustainability Obsolescence Avoidance Operational Effectiveness Durability Future Extendibility Life Cycle Costing 1 . p p yp Energy cost escalators calculated separately from general inflation factors.Monetary Rating Fitting the client is not all about money. NYC October 15-18. Non .New York State School Boards Association 2009 Annual Convention.

New York State School Boards Association 2009 Annual Convention. For example. Scores are based on a value of 1 through 10 1 is low and 10 is high. Examine each wall or fl E i h ll floor Determine how well it meets the same criteria used for weighting. NYC October 15-18. how durable is the wall or is it aesthetically pleasing? School Case Study Exterior Wall Choices Metal stud with gypsum interior and brick exterior CMU cavity wall with painted i t i it ll ith i t d interior and brick exterior Integrally colored burnished block cavity wall with brick exterior Life Cycle Costing 1 . Image and Aesthetics Color Rendition Environmental Sustainability Obsolescence Avoidance Operational Effectiveness Durability Future Extendibility 20 5 25 10 10 30 0 Total 100 Scoring Establishes system’s ability to meet criteria. 2009 Understanding Weights Total of 100 points of combined weights Higher values lead to lower values on others.

New York State School Boards Association 2009 Annual Convention. 2009 School Case Study Let’s also limit ourselves to the three factors listed below. NYC October 15-18. We will apply the following weights to these three factors: Image or Appearance: g pp Environmental Sustainability: Durability 30 30 40 Appearance Gyp & Stud Painted Block Burnished Block 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 7 8 9 10 7 8 9 10 Gyp & Stud Painted Block Colored Burnished Block Environmental Sustainability Gyp & Stud Painted Block Burnished Block 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 7 8 9 10 7 8 9 10 Gyp & Stud Painted Block Colored Burnished Block Life Cycle Costing 1 .

NYC October 15-18.New York State School Boards Association 2009 Annual Convention. Weight X Score = Benefit Appearance W S B GYP & 30 X 6 = 180 Stud Paint CMU Burn Blk 30 X 7 = 210 30 X10 = 300 Environment W S B Durability W S B 30 X 4 = 120 40 X 4 = 160 30 X 7 = 210 40 X 7 = 280 30 X10 = 300 40 X10 = 400 Life Cycle Costing 1 . 2009 Durability Gyp & Stud Painted Block Burnished Block 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 7 8 9 10 7 8 9 10 Gyp & Stud Painted Block Colored Burnished Block Comparing Wall Systems Benefit Score Defines how well each wall meets the clients desires Multiply M lti l Weight for a given factor by Score for that factor and then the Benefit (total) for the wall.

NYC October 15-18. 2009 Benefit totals for each wall type Appearance Environment Durability Benefit Score GYP & Stud Paint CMU Burn Blk 180 210 300 120 210 300 160 280 400 460 700 1000 Cost Benefit Ratio Benefit to Cost Ratio = Benefit Total Life-Cycle Cost Benefit to cost ratio compares Ability of selected systems meet clients desires Cost of selected systems The higher the value the better the fit.New York State School Boards Association 2009 Annual Convention. Cost Benefit Ratio “best bang for the buck” score Life Cycle Costing 1 .

Scores and Benefits for criteria Understand and apply local costs Life Cycle Costing 1 . Scores.42 11. 2009 Adjusted Cost Data by Cities Cost data for each wall type is adjusted by city.57 Painted CMU $40.42 Benefit to cost ratio and rank Benefit Cost Benefit / Cost Rank GYP & Stud Paint CMU Burn Blk 460 700 1000 $39.34 Burnish Block $47.1 3 2 1 QUIZ #5 What are the key points for comparing p g systems per LCCA? Establish criteria for comparison Establish Weights.6 17.34 $47. By looking up some lifecycle costs in our system we can provide the following data: Gyp & stud $39.New York State School Boards Association 2009 Annual Convention.57 $40. The following numbers are for Philadelphia.3 21. NYC October 15-18.

2009 Getting the most out of your report: Choose most realistic wall/ floor systems for your application. interior walls & floors are separate reports Request more than one report if necessary Request your report from IMI WWW.ORG OR: Call your local IMI office at 1 .800 – IMI .New York State School Boards Association 2009 Annual Convention. REMEMBER: Exterior wall systems.0988 For Answers to Your Masonry Questions Contact IMI 1–800–IMI-0988 800–IMI- Life Cycle Costing 1 .IMIWEB. NYC October 15-18.

2009 Life Cycle Costing 2 . NYC October 15-18.New York State School Boards Association 2009 Annual Convention.

New York State School Boards Association 2009 Annual Convention. NYC October 15-18. 2009 Life Cycle Costing 2 .

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