Life Cycle Cost Analysis for Building Construction 1

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<p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Life Cycle Costing</p> <p>International Masonry Institute Professional Education Programs IMI 2008, All Rights Reserved</p> <p>IMI is a Registered provider with the American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-AIA members are available on request. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, handling using, distributing or dealing in any material or product. Questions related to specific materials, methods and services will be addressed at the conclusion of this presentation.</p> <p>Copyrighted MaterialsThis presentation is protected by US and International copyright laws. Reproduction, distribution, display and use of the presentation without written permission of th speaker i prohibited. i i f the k is hibit dInternational Masonry Institute 2009</p> <p>Life Cycle Costing</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>What is Life Cycle Costing?An economic assessment of a building or building component that considers all the significant costs of ownership over its economic lifeexpressed in terms of equivalent dollars. Dr. Stephen Kirk</p> <p>Life Cycle CostingExpert life cycle costing consultants IMIs third party expert is Dr. Stephen Kirk Co-author of Life Cycle Costing for Facilities, Published by R.S. Means</p> <p>Embodied Energy:</p> <p>The amount of energy invested in a building, from the light over the draftsman's table, through construction including all the energy invested in the materials, all the lighting, heating, cooling, maintenance necessary for building operation, including, ultimately the energy invested in demolition at the end of its useful life.</p> <p>James Marston Fitch</p> <p>Life Cycle Costing</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>How does one get access to Life Cycle costing information?Hire an expert consultant to do a custom study for you, Try to determine on your own own, Go to the IMI web site (www.imiweb.org) and request to have one run to your specifications.</p> <p>Life Cycle Costing InstrumentThe Life Cycle Cost instrument that IMI uses gives an owner, design professional or CM the opportunity to compare the lifecycle costs of a group of wall or f f f floor systems while there is still time to make informed decisions as to the best value for their specific application.</p> <p>What is the advantage of having Life Cycle Costing information?Making an informed decision is all about having the right information at the right time.</p> <p>Life Cycle Costing</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>How did IMI develop an instrument to determine Life Cycle Costs?</p> <p>IMI hired a third party expert to develop the system using data that is d l th t i d t th t i readily available and recognized by the design and construction industry.</p> <p>QUIZ #1Is Life Cycle costing the same for everyone?Not always Different building types Different values</p> <p>Green:The Right Thing to Do</p> <p>Life Cycle Costing</p> <p>Green Thinkingtakes the long-term view and looks at the larger impacts on the environment and society. recognizes that total life cycle costing i an essential part of ti is ti l t f such holistic thinking</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>realizes that a buildings initial capital cost amounts to only a fraction of the total cost of running and maintaining it.</p> <p>How Can Consideration of Life Cycle Cost add value?Cost of operation Life Cycle Costing exceeds building value Added valuePoorly considered</p> <p>Embodied Energy ($)</p> <p>Carefully considered y g Life Cycle Costing</p> <p>Lifespan of BuildingConstructionResources committed: Mining, Manufacturing, Energy, Labor Recycle components / Disposal</p> <p>Factors to consider:Initial cost Daily or typical maintenance costs Energy costs Regular but periodic maintenance Major renovation / restorations Inflation Building lifespan</p> <p>Life Cycle Costing</p> <p>Demolition</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>What is the lifespan of a building?Lifespan of Building0 100 200 300</p> <p>Construction</p> <p>Intervention Maintenance</p> <p>Restoration, Continuing</p> <p>DETERIORA ATION</p> <p>Point at which initial rehabilitation or preservation takes place</p> <p>Frequently spaced interventions for maintenance Amount of deterioration</p> <p>Rate of deterioration</p> <p>TIME</p> <p>Intervention Single EventPoint at which single rehabilitation or restoration event takes place Rate of deterioration Amount of deterioration TIME Continuing rate of deterioration</p> <p>DETERIORA ATION</p> <p>Life Cycle Costing</p> <p>Demolition</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009What is the lifespan of a building?Lifespan of Building0 100 200 300</p> <p>Construction</p> <p>Bay City Train Depot</p> <p>QUIZ #2Name at least 3 key factors to consider when preparing a LCCA?Initial cost Daily or typical maintenance costs Inflation</p> <p>Executive Order 13327:Federal Environmental, Energy, and Transportation Management Into effect Jan. 2008 Aimed at Improving energy efficiency I i ffi i Reducing greenhouse gasses Considers sustainable environmental practicesAcquisitions of goods and services</p> <p>Life Cycle Costing</p> <p>Demolition</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Executive Order 13327: LCCA - recommended method foraccomplishing these goals</p> <p>National Institute of Standards and Technology (NIST)Handbook 135 Life Cycle Costing Manual for the Energy Management ProgramStandard life-cycle costing method Developed in 1987 Revised in 1996</p> <p>NIST Handbook 135Serves as the definitive guide for developing LCCA studies. Provides defined discount rates for LCCNIST annual supplements provide current rates.</p> <p>Life Cycle Costing</p> <p>QUIZ #3What is the Life Cycle Costing Manual for the Energy Management Program?</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>NIST Handbook # 135</p> <p>ASTM StandardsHelp in the development of LCCA studies.E917 05 Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems E1057 05 Practice for Measuring Internal Rate of Return in Buildings &amp; Building Systems</p> <p>Life Cycle costing studies help to control costsConsiders long-term material choice implications Improves ability to make better design choices EXAMPLE: Flooring options: carpet vs. terrazzo. Most cost effective option for a busy high school public area? Most cost effective for leased office space?</p> <p>Life Cycle Costing</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Carpet / Terrazzo</p> <p>$ / SF 20 10</p> <p>7</p> <p>Years</p> <p>14</p> <p>21</p> <p>28</p> <p>35</p> <p>Current Decisions = Long-term ImplicationsOnly practical opportunity to minimize your long-term maintenance costs lie in the choices made during design. Poor choices impactBudget Building performance for the lifespan of the structure.</p> <p>QUIZ #4How does Life Cycle fit into sustainable projects?Life cycle is becoming more important to LEED projects. Innovation and Design points awarded for i t d df Cradle to Cradle product certification. ASTM continuing to look at life cycle.</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Wall or floor - consideration factorsInitial Cost Maintenance Costs Energy Costs Non-monetary Considerations</p> <p>Cost Analysis ReportInitial Costs are like construction estimates. Cost adjustment factors per CSI division for each location. No Present Worth (PW) analysis because all these costs occur at the beginning.</p> <p>How its done:Produce a sketch for each system and indicate what portion of the wall or floor is included. Cost an approximate 10 X 10 area then divide back to get an average square foot cost.</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Initial CostR.S. Means was used as the data source. Break down systems to components and price.Costs include material, labor, equipment, overhead and profit.</p> <p>Cost Analysis ReportReplacement Cost deals with major maintenance or replacement costs Present Worth (PW) represents purchasing powerPresent Worth addresses:Periodic spending and costs Purchasing power changes in dollar over time</p> <p>Maintenance CostWhitestone - data source. Data - field gathered. Costs - by building type. Long-term &amp; daily cost were considered.</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Energy cost: ASHRAEPerformed by energy analysis consultant. Uses heating/cooling industry softwareCalculations performed for specific wall types. p p yp</p> <p>Energy cost escalators calculated separately from general inflation factors.</p> <p>Non - Monetary RatingFitting the client is not all about money.Different clients have different needs/ priorities.</p> <p>Example of non - monetary environmental sustainability desireClient placing high priority on LEED platinum</p> <p>Weights and ScoresWeights define clients desires and criteria:Image and Aesthetics Color Rendition Environmental Sustainability Obsolescence Avoidance Operational Effectiveness Durability Future Extendibility</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Understanding WeightsTotal of 100 points of combined weights Higher values lead to lower values on others.Image and Aesthetics Color Rendition Environmental Sustainability Obsolescence Avoidance Operational Effectiveness Durability Future Extendibility 20 5 25 10 10 30 0 Total 100</p> <p>ScoringEstablishes systems ability to meet criteria. Scores are based on a value of 1 through 101 is low and 10 is high.</p> <p>Examine each wall or fl E i h ll floor Determine how well it meets the same criteria used for weighting.For example, how durable is the wall or is it aesthetically pleasing?</p> <p>School Case StudyExterior Wall Choices Metal stud with gypsum interior and brick exterior CMU cavity wall with painted i t i it ll ith i t d interior and brick exterior Integrally colored burnished block cavity wall with brick exterior</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>School Case StudyLets also limit ourselves to the three factors listed below. We will apply the following weights to these three factors: Image or Appearance: g pp Environmental Sustainability: Durability 30 30 40</p> <p>AppearanceGyp &amp; Stud Painted Block Burnished Block 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 7 8 9 10 7 8 9 10</p> <p>Gyp &amp; Stud</p> <p>Painted Block</p> <p>Colored Burnished Block</p> <p>Environmental SustainabilityGyp &amp; Stud Painted Block Burnished Block 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 7 8 9 10 7 8 9 10</p> <p>Gyp &amp; Stud</p> <p>Painted Block</p> <p>Colored Burnished Block</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>DurabilityGyp &amp; Stud Painted Block Burnished Block 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 7 8 9 10 7 8 9 10</p> <p>Gyp &amp; Stud</p> <p>Painted Block</p> <p>Colored Burnished Block</p> <p>Comparing Wall SystemsBenefit Score Defines how well each wall meets the clients desires Multiply M lti l Weight for a given factor by Score for that factor and then the Benefit (total) for the wall.</p> <p>Weight X Score = BenefitAppearance W S B GYP &amp; 30 X 6 = 180 Stud Paint CMU Burn Blk 30 X 7 = 210 30 X10 = 300 Environment W S B Durability W S B</p> <p>30 X 4 = 120 40 X 4 = 160 30 X 7 = 210 40 X 7 = 280 30 X10 = 300 40 X10 = 400</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Benefit totals for each wall typeAppearance Environment Durability Benefit Score</p> <p>GYP &amp; Stud Paint CMU Burn Blk</p> <p>180 210 300</p> <p>120 210 300</p> <p>160 280 400</p> <p>460 700 1000</p> <p>Cost Benefit RatioBenefit to Cost Ratio = Benefit Total Life-Cycle Cost</p> <p>Benefit to cost ratio compares Ability of selected systems meet clients desires Cost of selected systems</p> <p>The higher the value the better the fit.</p> <p>Cost Benefit Ratio best bang for the buck score</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Adjusted Cost Data by CitiesCost data for each wall type is adjusted by city. The following numbers are for Philadelphia. By looking up some lifecycle costs in our system we can provide the following data: Gyp &amp; stud $39.57 Painted CMU $40.34 Burnish Block $47.42</p> <p>Benefit to cost ratio and rankBenefit Cost Benefit / Cost Rank</p> <p>GYP &amp; Stud Paint CMU Burn Blk</p> <p>460 700 1000</p> <p>$39.57 $40.34 $47.42</p> <p>11.6 17.3 21.1</p> <p>3 2 1</p> <p>QUIZ #5What are the key points for comparing p g systems per LCCA?Establish criteria for comparison Establish Weights, Scores, Scores and Benefits for criteria Understand and apply local costs</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Getting the most out of your report:Choose most realistic wall/ floor systems for your application. REMEMBER: Exterior wall systems, interior walls &amp; floors are separate reports Request more than one report if necessary</p> <p>Request your report from IMI</p> <p>WWW.IMIWEB.ORGOR: Call your local IMI office at 1 - 800 IMI - 0988</p> <p>For Answers to Your Masonry Questions</p> <p>Contact IMI</p> <p>1800IMI-0988 800IMI-</p> <p>Life Cycle Costing</p> <p>1</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Life Cycle Costing</p> <p>2</p> <p>New York State School Boards Association 2009 Annual Convention, NYC October 15-18, 2009</p> <p>Life Cycle Costing</p> <p>2</p>

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