BQS 562-COMPUTER

AIDED MEASUREMENT
& ESTIMATING

LIFE CYCLE COSTING

SOFTWARE

Prepared For :
Sir Izz Kamil

AP224 4F
MUHAMMAD AIMAN HAKIMI BIN
ROSLI (2021847098)
AIMAN AZMIL BIN MAHUZI
(2021460008)
IZZAH IRDINA BINTI ABDUL RAZAK
(2021492022)
MASHITAH BINTI IBRHIM
(2021812522)
NABILAH BINTI UBAIDI
(2021459934)
 OUR TEAM

Aiman Hakimi Aiman Azmil

Izzah Irdina

Mashitah Nabilah
TABLE OF
CONTENT

Introduction

Concept of LCC
Objective of LCC
Application of LCC
Phases of LCC

Advantages and
Disadvantages of LCC

LCC Software
Microsoft Excel
Background
Function
Features
One Click LCA
Background
Function
Features
TABLE OF
CONTENT
(Cont'd)

Comparison Between
Chosen Software

Conclusion

References
LIFE CYCLE COSTING SOFTWARE

INTRODUCTION
 INTRODUCTION
Life cycle costing is a technique for
totalling all expenses related to an
asset, from the initial cost through
the end of its lifecycle. The asset's
residual or salvage value are not
taken into consideration. The cost
an asset will incur during its lifespan
is estimated using life cycle costing.
Different cost categories—initial
costs, service cost, maintenance
expenses, operating costs, disposal
costs are often added when
calculating life cycle costs. The value
of life cycle costing is determined by
adding these expenses (Tally
Solutions, 2021).
Life cycle costing may be quite
advantageous for organizations of
all types and sizes. It provides a
precise estimate of costs across a
product's lifetime. The method
employs the common accounting
concept of discounted cash flow to
bring the entire expenses spent
throughout a lifespan period down
to current levels. This enables a valid
comparison of the alternatives to be
done (Sassda, 2022).
The asset's minimum life cycle cost
will be determined by optimising
the trade-off between various cost
elements. This procedure entails
estimating expenditures over the
course of the building’s lifespan
before deciding whether or not to
purchase an asset from the different
options available. This process can
be done by using software that can
save time and money.
In this task, we will go into greater
detail regarding the LCC concept,
which is comprised of LCC's
objectives, application, and stages.
The next step is to discuss the
benefits and drawbacks of
producing LCC in this building
construction and to select the
software solution.
LIFE CYCLE COSTING SOFTWARE

CONCEPT
OF LCC
 OBJECTIVE
LIFE CYCLE COSTING

The most reliable method to

maximise your building’s
project savings is life cycle
costing analysis (LCC), a
mathematical technique used to
evaluate numerous design
options. With the knowledge
that they are interconnected,
LCC focuses on long-term costs
and savings to help with
decision-making. It is
frequently employed while LCC also helped to a project’s
weighing numerous options feasibility study. Life cycle costing
(Ahmad.K, 2011). There are can be carried out as part of feasibility
certain goals that can help studies to identify the most cost-
people make wise decisions: effective solution, as part of detailed
designs to identify an in-service
budget for the owner, as part of
1. Determine the total cost tenders to assess the most cost-
involved. effective bid proposal, or as part of
2. Assist in making wise processes to identify the best
decisions when deciding maintenance and operation strategy.
between various options and
strategies to achieve stated
goals.
3. It is a management technique that outlines the
operational costs incurred while the assets are being
used.
4. Points out the places where operating costs can be
decreased
 APPLICATION

Through the use of LCC, it is able to compare

many options, such as design ideas for a new
project or alternate sites. LCC is also able to
compare new developments with structures
that are already in operation and meeting a
client's expectations. LCC can also be used to
compare structures that are comparable to one
another.

However, LCC also submitted an application to

compare various building materials, structural
elements, mechanical and electrical system
installations, and similar things. Last but not least,
LCC also submitted an application to compare
building refurbishment, extension, and alteration.
In conclusion, the purpose of an LCC application is
to assist in project decision-making by letting a
person foresee future costs (Ahmad.K, 2011).
 LCC

PHASES
LCC PHASES DESCRIPTION ASSOCIATED COSTS

1. Specification The formulation of the clients Initial cost connected withland

requirements and translating purchase, professionalfees,
these into an acceptanle design. construction andrelated
construction cost.
2. Design

The construction process up to Recurring cost necessaryfor

3. Installation
completion and the handing-over of administrative costs and
the project for its intended purpose. occupational charges for
payments on rates,insurance,
improvements.

4. Commissioning

The uses of the project as designed

5. Maintenance
and fulfills itsintended purpose.

Alterations necessary tokeep the

Recurring cost required formajor
Modification and building orstructure in a good
changes to building inrespect of
renovation standardof repair or to improve
refurbishmentand redevelopment
tocurrent-day standards

The evaluation of the projectfor

major refurbishment orthe site for
Replacement redevelopment.This includes

alternatives todemolish existing

buildings
LIFE CYCLE COSTING SOFTWARE

ADVANTAGES &
DISADVANTAGES
ADVANTAGES
Best long-term value Improved Forecasting
Although project costs can go down or The use of LCC techniques enables more
stay the same, the value of building the precise estimation of the total cost
project is maximised. LCC may improve related to a procurement. Better
the bottom line while fixing faults and decisions are made at all levels as a
inconsistencies in the initial design. This result, such as when choosing big
offers more durability, higher quality, investments or putting in place
less maintenance, fewer risks, and lower supportive programmes that are
operational costs for a given investment. affordable. LCC analysis also makes it
In some circumstances, well carried out possible to anticipate future costs with
LCC may be able to sustain the life of a more accuracy for use in long-term
building. Better materials are more costing analysis.
durable and less expensive to maintain,
therefore this likely outcome is
predicted.

Improved Awareness Reliable planning

Utilizing LCC techniques helps
managers get a better understanding of
the variables that affect cost and the
resources needed for the purchase. The
cost drivers must be identified in order
to focus management efforts on the
parts of the acquisition that are most
cost-effective.
LCC assists the project teams in
maintaining control of the project at all
phases. It is a great planning tool for
long periods of time. With appropriate
LCC, the project may successfully
prevent surprises, avoid financial risks,
and rest while patiently waiting for the
next maintenance works, knowing how
much that will cost ahead of time.

Influences early-stage decision making

LCC may have entirely different operational costs from
two similar investments with equivalent expenses, but it
will have an impact on early decisions. It is inappropriate
to focus just on capital costs. Early-stage decisions will
consider future operational costs using LCC.

LIFE CYCLE COSTING SOFTWARE

DISADVANTAGES
High cost of performance
Due to the planning and analytical tasks,
the cost will be high if the LCC model is
to be precise. Because it requires a
difficult cost model that is costly to set
up and maintain.
Value of Depreciation
Money written off afterwards in an
asset's life cycle could not be worth as
much as money written off earlier.
Depreciation may lose value over time
since the life-cycle strategy spreads an
asset's cost out over a long period of
time in equal instalments. In order for
write-offs to nearly equal the amount
that was spent when the asset was
purchased, it is preferable to depreciate
an asset as much as feasible in the first
few years of its life.

Drop in Productivity Paying Back Loans

The life cycle costing concept assumes
an asset will be as productive in later
years as it is when it's new. This may
not be the case. If a piece of equipment,
for example, gradually slows down, a
person is earning less income from it
while receiving the same write-off you
got when the product was first put into
production. Though this may make the
steady write-off attractive as
percentage of income earned from the
asset, that write-off may not be enough
to make up for the loss in productivity.
If an individual borrows money to buy
an asset, deducting equal portions of
the cost across the asset's life cycle may
result in interest charges. It would do
better if it wrote off a bigger percentage
of the asset during its early years,
allowing it to save on taxes and use the
proceeds to pay down the debt. Because
interest is charged each month on the
a remaining debt, the sooner you pay off a
loan, the cheaper your interest
payments will be.

High sensitivity to changing requirements

Due to the complexity of the project and business, changes in
the input data must be considered carefully. Future expenses
might be significantly impacted by even minor adjustments to
the existing situation or conditions.

LIFE CYCLE COSTING SOFTWARE

LIFE CYCLE COSTING SOFTWARE

LCC
SOFTWARE
 MICROSOFT
EXCEL

BACKGROUND

Microsoft Excel is a piece of software developed by Microsoft

that makes use of spreadsheets to arrange numbers and data
using formulas and functions. Financial analysis is performed
by businesses of all sizes using Excel, which is widely used
worldwide. The software is made up of a number of columns
and rows, and each cell that is formed by the intersection of a
column and a row contains data. The information can be found
more easily and in a more organised manner by using Microsoft
Excel.
FUNCTIONS OF MICROSOFT
EXCEL

A total of 50 financial functions that can be used in Microsoft Excel

to calculate life cycle costs have been implemented. In fact, a lot of
companies run their entire accounting, budgeting, and forecasting
processes through Excel spreadsheets (CFI, 2020). Metrics like the
standard deviation of an asset or a portfolio, the percentage of
return, and the overall profit and loss can all be calculated
automatically.

The calculations can be done in LCC by using Microsoft Excel and a

financial table. In addition, Microsoft Excel can be used to estimate
Whole Life-cycle Cost and present the results in a table for easy
access to the data (Kehily, 2016). Aside from that, Microsoft Excel
has tools for calculating annualised payments, present value (PV),
and future value (FV) (PMT).

Plus, applications in Excel can be created using a variety of

sophisticated numerical techniques thanks to Visual Basic. For
writing code, debugging, and organising code modules,
programmers have the option of using the 10 Visual Basic Editor,
including Windows.
 FEATURES
AVAILABLE

Microsoft Excel offers a wide variety of features. Charts, histograms,

and line graphs can also be used to display data (Techopedia,
2020). All spreadsheet programmes, including Excel, use a group of
cells arranged into rows and columns to organise and manipulate
data. These applications all share some fundamental features.
Charts, histograms, and line graphs can all be used to display data.
A spreadsheet for data analysis, graphical user interface, and
statistical and mathematical functions for cost calculation are just
a few of the additional features that these features add to Excel.

Next, Microsoft Excel has the auto-sum format, which enables you
to add up all of the numbers entered in the cell with just one
formula. For reuse on subsequent projects, Microsoft Excel enables
you to create a template specifically for LCC calculations.
Additionally, each Excel file can generate a number of worksheets
that can be used to distinguish between the different types of
calculations made in this worksheet.

For instance, The worksheet can be used for a variety of services,

such as electrical, solar, and firefighting systems. Any formula
required in the calculation of LCC can be used to determine LCC.
without retyping the formula, the entered value is applied to all
associated cells again. One more thing, Excel's exporting BIM
quantities to Microsoft Excel feature enables users to be approved
by the QS for use in cost reports.

MICROSOFT EXCEL
 ONE CLICK
LCA

BACKGROUND

Due to its simplicity of use and sophisticated automation, One Click

LCA is the Building Life Cycle Metrics software that enables you to
quickly calculate the Life Cycle Assessment, Life Cycle Costing,
Carbon Footprint, and other environmental impacts. One Click LCA
can be used for low-carbon building, ecodesign, green building
credits, and infrastructure. It is compatible with more than 40 green
building certification programmes, including LEED, and has the
highest BREEAM LCA software rating. They had received many
honours up to this point, including the 2018 Energy Globe Award
(Bionova, 2015)
FUNCTIONS OF ONE CLICK
LCA

One Click LCA enables simple, entirely browser-based

sustainability evaluation for construction projects and does not
demand LCA expertise from its users. By enabling users to import
data from applications like Revit, IES-VE, Solibri, and more, One
Click LCA automates the process where Building Information
Models or energy models are available. It is now simple to perform
LCAs and other environmental assessments, which reduces the
time needed to complete one to under an hour. As a result, more
businesses start including LCA and carbon footprint calculations in
their construction projects, which enables architects, designers,
and consultants to create more sustainable buildings without
resorting to ambiguous eco-labeling or greenwashing.

Moreover, One Click LCA can be used to produce Environmental

Product Calculations, earn Green Building credits for all significant
certifications like BREEAM and LEED, and incorporate
decarbonization into every stage of the design process. It can also
be used to determine the environmental lifecycle impacts of a
material.
 FEATURES
AVAILABLE
The software allows users to use the same data from LCA calculations or
import design from other software such as Revit, IFC, Excel, IESVE, energy
model (gbXML) and other tools. Compatibility is important in choosing a
software and One Click LCA is user friendly and data from excel or Revit could
easily be transferred to the current needs of the building. Replacements are
calculated based on the service life of the user's current construction
materials. All other costs can be added manually and easily edit the figures if
user’s have project specific information.

Moreover, users can analyze the cost structures which allow users to check
and improve the cost. The cost data is available for all main construction
materials in the One Click LCA database. The database production process
has used various cost databases and is easy as data is already available. All
material data include modifications for different regions related to labour
costs and cost indexes. Datasets for material costs are structured to consider
the cost of materials installed, and they include a labour cost component. The
cost data is available for all main construction materials in the One Click LCA
database. Its accuracy will depend on variances in type, specification, and
method of construction. Another feature is able to create and compare
design alternatives to find your most ecological and cost-efficient solution.
One Click LCA also allows users to create standardized LCC reports which
comply with EN 16627 and ISO 15686-5 standards.

ONE CLICK LCA

LIFE CYCLE COSTING SOFTWARE

COMPARISON
BETWEEN EXCEL
AND ONE CLICK LCA
COMPARISON

EXCEL ONE CLICK

LCA
BACKGROUND
Using a spreadsheet system. Developed by Bionova which
consists of a number of is a member of Green
columns and rows which are Building Council.
the intersection of a column Were known as Bionova Ltd
and a row are called a “cell” and from July 1 st 2021 they
and each cell will contain were called One Click LCA.
data.

FUNCTIONS
Used for data organisation Calculate costs of a project
and financial analysis from its inception towards
Used as data entry, data its demolition.
management, accounting, Reduce the lifetime cost of
financial analysis, charting building by measuring the
and graphing, time best option, not only
management and financial calculating the LCC
modeling. calculation.
Estimation of Whole Life- Data can be easily edited
cycle cost can be calculated according to the current
in Microsoft Excel and can be building that the users want
presented in table to enable to calculate the LCC.
the easy access of the
information.
Functions to calculate the
present value (PV) and future
value (FV) as well as
annualized payment (PMT).
COMPARISON

EXCEL ONE CLICK

LCA
FEATURES
AVAILABLE
Autosum format Allows users to use the same
Can create a template that is data from LCA calculations
dedicated for LCC calculation or import design from other
so that the template can be software (revit, IFC, Excel,
used again for the next IESVE & more)
project. Helps to analyze the cost
Can create many worksheets structures which allow users
that can be used to to check and improve the
differentiate what type of cost.
works are calculated. Datasets for material costs
Special PV functions inl are structured to consider
which can be used to the cost of materials
calculate the Present Value installed, and they include a
factors and costs in one cell. labour cost component.
Allows BIM quantities to be Able to create and compare
exported. design alternatives to find
your most ecological and
cost-efficient solution.
LIFE CYCLE COSTING SOFTWARE

CONCLUSION
 CONCLUSION
In conclusion, life cycle costing is a technique for totaling all expenses
related to an asset, from initial cost through end of its lifecycle. It provides a
precise estimate of costs across a product's lifetime. According to
AbouHamad and Abu-Hamd (2019), the objectives of using LCC is
minimizing the cost while providing sustained performance. Identifying
elements or specifications that influence the LCC cost of the building is one
of the objectives of the Life Cycle Cost Analysis (LCC). The LCC is an
important factor in design and the life cycle management of a building. LCC
can be used to compare the total costs of different design options for the
same duration of time. LCC was mostly set up to find the most cost-effective
way to do repairs and replacements. It is especially useful for comparing
different building designs that meet the required level of building
performance.

There is five phases in LCC which start with specification and design. At this
stage, LCCs need to think about the costs of getting started. Secondly is
installation, commissioning and maintenance. Administrative costs,
insurance costs, and facility maintenance costs are all examples of regular
costs at this time. Thirdly is modification and renovation. For a building to
stay useful and attract people to see it, it needs to be changed and fixed up.
Lastly, replacement. his phase is to determine whether or not extensive
demolition or renovation is required.

As for advantages Improved awareness of the factors that drive cost and the
resources required by the purchase. Long term value - an LCC ensures that
your project has the highest possible value. LCC technique not only focuses
on cost but also considers other factor such as quality and level of service to
be provided. As for drawback Life cycle costing analysis might take some
time because of the changes of new technology day to day. The longer the
project life time, the more operating cost will be incurred. These are due to
the incomplete historical data and hardships in predicting the life span of
each materials and components.

Lastly, there are two software application in producing LCC in this building
construction that we elaborate which is WINDCHILL LCC & DECISION LCC. It
is cover for software background, function of the software and features of
the software. Next there is comparison between these two which compare
on calculation method, main features, input and output.
LIFE CYCLE COSTING SOFTWARE

REFERENCES
 REFERENCES
AbouHamad, M., & Abu-Hamd, M. (2019).
Framework for construction system Rahman, F. U. (2022, April 11). Life Cycle
selection based on life cycle cost and Cost: Category, Costing Technique, and
sustainability assessment. Journal of Application. The Constructor.
Cleaner Production, 241, 118397. https://theconstructor.org/construction/li
https://doi.org/10.1016/j.jclepro.2019.11839 fe-cycle-cost-technique/
7 Sassda. (2022). LCC Software : Retrieved
Accountinguide (2022). Life Cycle July 17, 2022, from
Costing. Retrieved July 19, 2022 from https://sassda.co.za/about-stainless/the-
https://accountinguide.com/life-cycle- life-cycle-costing-of-stainless-steel/
costing/ Tally Solutions. (2021). Life Cycle Costing |
Digital Transforms Physical (2022). Definition, Process, Example, & More.
Windchill PLM Software. Retrieved July 16, Tally. Retrieved July 19, 2022, from
2022 from https://3hti.com/products- https://tallysolutions.com/accounting/life
2/windchill-quality-solutions/windchill- -cycle-costing/
life-cycle-cost/ TEC (2022). PTC Windchill - Features &
d-lcc. (2022). Aldservice.com. Functions Lists. Retrieved July 16, 2022,
https://aldservice.com/D-LCC.html from
Heralova, R. S. (2017). Life Cycle Costing https://www3.technologyevaluation.com/
as an Important Contribution to selection-tools/features-list/31889/ptc-
Feasibility Study in Construction Projects. windchill
Procedia Engineering, 196, 565–570. 3HTi (2022). Windchill LCC (Life Cycle
https://doi.org/10.1016/j.proeng.2017.08.0 Cost). Retrieved July 16, 2022 from
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Lca, O. C. (2018). Life Cycle Costing in quality-solutions/windchill-life-cycle-cost/
Construction. Retrieved July 19, 2022 from
https://www.oneclicklca.com/building-
life-cycle-costing-in-construction/