New generation whole-life costing : property and construction decision-making under uncertainty

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Furthermore, these resources are, in turn, being wasted, used inefficiently and causing negative externalities. Their political forces will be something that cannot simply be ignored, and continued resistance would be detrimental to the cost of building ownership, both directly and indirectly. Accordingly, to procure buildings using alternative methods will no doubt lower their life cycle costs and reduce their environmental, economic and social impact. Clearly, this would be a result of embedding sustainability principles, i. It is understandable that traditionally procured buildings, which have not adopted this paradigm shift from cheap and inferior materials, will indeed experience the impact of increased ownership costs in time, as sustainability is a serious issue.

The government is indeed taking the issue of sustainability seriously to ensure future generations are provided with an acceptable standard of living and quality of life. Until there is an efficient allocation of resources, and new buildings are procured on a value for money basis, the government will use its forces to reverse our unsustainable practices. Furthermore, these costs will be mainly borne by, for example, the resources and manufacturing sectors who will then pass the costs on to consumers through higher material, water and energy costs.

Highton: Life-cycle costing and the procurement of new buildings It can be seen from Table 1 that bulk water prices are predicted to increase by up to 67 per cent between and and, similarly, energy is predicted to increase by up to 45 per cent between and Table 2 Australian Energy Market Commission, ; QLD Water Commission, In addition, material prices are also increasing.

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For example, between December and December , the cost of materials increased by 3. Despite the merits of a sustainable approach, this kind of approach is unfortunately coupled with higher initial capital costs. Initial capital costs are also considered when undertaking an assessment of the cost of a building over its lifetime. It is natural to be attracted to cheaper alternatives in anticipation that the acquired building would perform, to its entirety, in the same manner as an ecologically sustainable building.

New Generation Whole-Life Costing : Property and Construction Decision-Making Under Uncertainty

This however is not the 16 case and, according to the US Green Building Council, ecologically sustainable buildings perform 50 per cent better than traditionally procured buildings USGBC, Thus, greater emphasis needs to be placed on ecologically sustainable buildings whereby initial capital costs are proportionately higher and capital expenditure in due course is lower.

Both buildings were obviously procured using an alternative procurement method in order to achieve value for money. Each building has rendered significant savings based on their efficient functional capabilities and achievement of exceptional performance benchmarks, and these savings will continue. Sustainable buildings attract substantial savings due to their ability to perform efficiently and effectively.

The Solaire, equally, saw comparable savings due to a significant reduction in energy and water demand to 35 per cent and 50 per cent respectively Natural Resources Defense Council, n. It is essential to note that high initial expenditure is not wasted money, as it, in conjunction with savings and lower LCC ownership costs , decreases the payback period of the investment.

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Pay back periods are shortened when sustainability principles are embedded into the building design. This period of time is based on how long it takes for the initial capital investment, which in this instance would be sustainable i. Cartlidge clearly demonstrates this theory by using a wooden framed window and comparing it with a PVCa framed window. Clearly, the PVCa frame would be a more viable option in the circumstances, as it would only take 3 years to repay its initial capital cost.

Due to a significant saving on operation costs, in particular energy and water, payback periods of four, seven and four years respectively were achieved Natural Resources Defense Council, n. Conversely, traditionally procured buildings would not reap these sorts of savings or payback periods due to the use of inferior materials and components, deficient workmanship, and a lack of innovative design and adoption of new technologies.

Thus, further costs, in addition to appreciating utility prices, would be incurred; so life cycle costs and payback periods will increase, which decrease the attractiveness of the investment. Obviously, if in the circumstance this were a short-term project, i.

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Not only are greater savings and earlier payback a result of exceptional efficiency and performance, they can also result in tenancy security. Higher tenancy rates can improve savings and payback periods, and lower ownership costs. This means aligning their actions in accordance with what is now seen as a societal norm, i. Highton: Life-cycle costing and the procurement of new buildings leasing sustainable buildings, they are indeed seen to be making a positive contribution to sustainability Angel, All 12 storeys of this building were tenanted three months ahead of schedule GBCA, Reasons for this would not have been simply a result of corporate responsibility, but also the understanding that operation costs, particularly utilities, to be outlaid in the future would be substantially lower compared to a traditionally procured building.

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Many catalogs include CAD drawings. GlobalSpec GlobalSepc is a specialized vertical search, information services and e-publishing company serving the engineering, manufacturing and related scientific and technical market segments. Related Titles To find more items related to cost data, try a library catalog search on "cost data" or "building estimates". Subjects: Construction Management.

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  • New Generation Whole-Life Costing: Property and Construction Decision-Making Under Uncertainty;
  • New Generation Whole-life Costing: Property and Construction Decision Making under Uncertainty.
  • Life-cycle evaluation.
  • To find more items related to cost data, try a library catalog search on "cost data" or "building estimates".

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