Whole life costing refers to the process of evaluating the total cost of owning and operating a building or infrastructure asset over its entire life cycle. It takes into account all costs associated with the asset, including design, construction, maintenance, and disposal.
Whole life costing is a comprehensive approach that considers the financial and environmental impact of a building or infrastructure asset over its entire lifespan, from the initial concept and design phase through to demolition or decommissioning. It factors in the initial capital cost, ongoing maintenance and repair costs, energy and operating costs, and end-of-life costs, such as demolition and disposal costs.
By considering the total cost of ownership over the asset’s lifespan, whole life costing helps to identify the most cost-effective design and construction options that will minimize the total cost of ownership over the asset’s lifespan. It also helps to identify opportunities for energy efficiency and sustainability, which can further reduce costs and improve the asset’s overall environmental impact.
Whole life costing is increasingly important in construction, as building owners and operators are seeking to minimize the total cost of ownership of their assets over their entire life cycle, rather than just focusing on the initial capital cost. By adopting a whole life costing approach, construction professionals can help their clients make informed decisions that will lead to the creation of more sustainable and cost-effective buildings and infrastructure assets.
