Life-Cycle Costing in Municipal Construction Projects
Publication: Journal of Infrastructure Systems
Volume 2, Issue 1
Abstract
The objective of life-cycle costing (LCC) analysis is to optimize the total cost of ownership over the life span of an asset. A survey was conducted in the early months of 1995 of the largest municipalities in the U.S. to investigate the use of LCC analysis. The survey indicated that 40% of the municipalities use LCC analysis and that some had been using it for over 20 years. The reasons why 60% of the municipalities did not use LCC analysis include the lack of formal guidelines and the difficulty of estimating future costs and incomes. Other aspects of the survey included the typical profile of the LCC analysis process including project types, work categories, and project stages. The criteria used in selecting projects for LCC implementation appear to be arbitrary. Finally, most municipalities assessed their LCC analysis process as a successful or a somewhat successful operation.
Get full access to this article
View all available purchase options and get full access to this article.
References
1.
Ahuja, H., and Walsh, M. (1983). Successful methods in cost engineering . Wiley-Interscience, New York N.Y.
2.
Ashworth, A.(1989). “Life-cycle costing: a practice tool.”Cost Engrg., AACE, 31(3), 8–11.
3.
Barrie, D., and Paulson, B. (1992). Professional construction management, 3d Ed., McGraw-Hill, Inc., New York, N.Y.
4.
Bernstein, H.(1994). “Engineering R & D strategy.”Civ. Engrg., ASCE, 64(2), 44–46.
5.
City of Chicago 1994-1998 capital improvement program. (1993). City of Chicago Office of Budget and Management, Chicago, Ill.
6.
Dell'Isola, A., and Kirk, K. (1981). Life cycle costing for design professionals. McGraw-Hill, Inc., New York, N.Y.
7.
Grant, E., and Ireson, W. (1970). Principles of engineering economy, 5th Ed., Ronald Press, New York, N.Y.
8.
“Guidelines and discount rates for benefit-cost analysis of federal programs.” (1992). Circular No. A-94 ( Revised ). U.S. Ofc. of Mgmt. and Budget, Washington, D.C.
9.
“Intermodal surface transportation efficiency act of 1991.” (1992). United States statutes at large . U.S. Congress, Senate and House, U.S. GPO, Washington, D.C., 105(3), 1914–2207.
10.
Meyer, J. (1990). “A look back in time to verify life cycle cost analyses.”Pipeline design and installation, Proc. of the Int. Conf., Pipeline Planning Committee of the Pipeline Division, ASCE, 630–38.
11.
Miles, L. (1972). Techniques of value analysis and engineering, 2d Ed., McGraw-Hill, Inc., New York, N.Y.
12.
Municipal executive directory: October 1994/March 1995. (1994). Carroll Publishing, Washington, D.C.
13.
Noel, L.(1985). “What do pavements cost?”Civ. Engrg., ASCE, 55(11), 61–63.
14.
Novick, D. (1991). “The importance of life cycle design for new and rehabilitated infrastructure.”Const. business rev., HLK Global Communications, (6), 58–61.
15.
Novick, D. (1993). “Life cycle considerations in infrastructure management.”Paper Prepared for the FHWA Life Cycle Cost Symp., Federal Highway Administration, and American Association of State Highway and Transportation Officials.
16.
Riggs, J., and West, T. (1986). Essentials of engineering economics, 3rd Ed. McGraw-Hill, New York, N.Y.
17.
Shepard, R., and Abed-Al-Rahim, I. (1993). “Using life cycle cost analysis for bridge management system applications.”Paper Prepared for the FHWA Life Cycle Cost Symp., Federal Highway Adminstration, American Association of State Highway and Transportation Officials.
18.
Wonsiewicz, T. (1990). “Life cycle cost analysis discount rates and inflation.”Pipeline Design and Installation, Proc. of the Int. Conf., Pipeline Planning Committee of the Pipeline Division of the ASCE, 639–48.
19.
1990 census of population and housing: population and housing unit counts: United States. (1993). U.S. Dept. of Commerce, Bureau of the Census, U.S. GPO, Washington, D.C.
Information & Authors
Information
Published In
Copyright
Copyright © 1996 American Society of Civil Engineers.
History
Published online: Mar 1, 1996
Published in print: Mar 1996
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.