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Life Cycle Costing
Life cycle costing is still not a widely used tool in the development of an asset management approach. Old perceptions of increased capital expense equalling higher quality and longer life have prevented owners, designers and builders from improving the Whole of Life Cost for a project.
Facility managers often complain that "if only they had considered this aspect before building" when expensive maintenance costs start to mount and the asset becomes victim to its economic position.
Yet, where we have undertaken life cycle costing all stakeholders have benefited. Examples include,
Selection of a roofing product for a new Hospital project that was the cheapest capital cost, had the longest life and least maintenance.
Development of forward sinking funds to assess the future real profit and loss for a major asset investment
Scope of Service
| Feasibility Assessment |
This Tool allows Project Managers to undertake assessments for major design and product options analysis using quantifiable and qualitative assessments.
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| Design Life-cycle Assessment |
Covering feasibility, full contract development and implementation. Also our innovative Performance Contracting approach that is KPI free.
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| Sinking Funds |
Development of long-term sinking funds for asset maintenance and cyclic replacements. |
Value Added benefits
A major builder was able to demonstrate the initial whole of cost life cycle as part of its design and construct tender demonstrating savings of over a $1m in life cycle costs
A client saved over $700,000 by using our design and product selection methodology without compromise to the projects quality
The development of a Sinking Fund projection allowed a client to assess the risks and viability of a major private sector infrastructure project
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