Whole Life-Cycle Costing: Risk and Risk Responses

✍ Scribed by Abdelhalim Boussabaine

• Publisher: Wiley-Blackwell
• Year: 2003
• Tongue: English
• Leaves: 267
• Category: Library

✦ Synopsis

With its mixture of established theory, best practice and innovation Whole-life costing: risk and risk responses offers a thorough grounding in both the theory and practical application of WLCC. It will help to improve accuracy of the assessments of long-term effectiveness of projects - now an essential tool for those performing risk analysis in construction investment.

✦ Table of Contents

Contents......Page 7
Foreword by Nigel Dorman, NHS Estates......Page 11
Preface......Page 13
Acknowledgements......Page 15
Part I: Fundamentals of Whole Life-cycle Costing......Page 17
1.1 Introduction......Page 19
1.2 Whole life-cycle costing: a brief history......Page 20
1.3 Defining whole life-cycle costing......Page 23
1.5 Subjectivity in WLCC......Page 25
References......Page 26
2.2 Why has the construction industry failed to embrace WLCC?......Page 28
2.3 Why risk assessment in whole life costing?......Page 29
2.4 Data requirements in whole life-cycle costing and risk assessment......Page 31
2.5 Specifying a comprehensive set of objectives and measures for each WLCC component......Page 33
2.6 A framework for whole life costing risk management......Page 38
References......Page 42
3.1 Introduction......Page 44
3.2 Justification for investment and extraction of client requirements......Page 45
3.3 Key decisions at the conceptual development stage......Page 47
3.4 Key decisions at the detailed design stage......Page 48
3.5 Key decisions at the production stage......Page 49
3.6 Decisions at the operational stage......Page 50
3.8 Summary......Page 51
References......Page 52
4.2 Concepts of the time value of money......Page 53
4.3 WLCC calculation models......Page 54
4.4 Measuring economic performance in whole life-cycle costing......Page 57
4.5 WLCC forecasting methods......Page 65
4.6 Benchmarking and key performance indicators......Page 68
4.7 WLCC key performance indicators......Page 69
References......Page 70
5.2 Risk analysis......Page 72
5.4 Risk matrices......Page 74
5.5 Risk registers......Page 76
5.6 Event trees......Page 77
5.7 Influence diagrams......Page 78
5.9 Brainstorming sessions......Page 79
5.11 Probabilistic approaches to risk......Page 80
5.12 Simulation......Page 87
5.14 Markov theory......Page 90
5.15 Deterministic measures of risk......Page 91
5.16 Mathematical and analytical techniques......Page 93
5.17 Artificial intelligence and fuzzy set theory......Page 94
5.18 Summary......Page 97
References......Page 98
Part II: Whole Life-cycle Costing: The Design Stage......Page 101
6.1 Introduction......Page 103
6.2 Estimation of service life for new structures......Page 104
6.3 Estimation of the remaining service life for existing structures......Page 111
6.4 Summary......Page 119
References......Page 120
7.1 Introduction......Page 122
7.2 Life-cycle assessment......Page 123
7.3 Life-cycle assessment for design optimisation......Page 126
7.4 LCA tools......Page 128
7.5 Environmental life-cycle cost......Page 130
7.6 Case study......Page 133
7.7 Summary......Page 136
Reference......Page 137
8.2 Design whole life-cycle cost planning......Page 138
8.3 An integrated framework for WLC budget estimation......Page 139
8.4 Benchmarking WLC budgets......Page 142
8.5 Whole life cost planning......Page 144
References......Page 157
9.1 Introduction......Page 158
9.2 Design whole life risk......Page 159
9.3 WLC risk identification and risk response measures at design/precontract stages......Page 162
9.5 Design WLCC risk quantification......Page 170
9.6 Design risk response measures......Page 175
9.7 Summary......Page 177
References......Page 178
10.1 Introduction......Page 179
10.2 Modelling the whole life cost of air-conditioning systems......Page 180
10.3 Data and methodology......Page 182
10.4 Results and discussion......Page 186
References......Page 190
Part III: Whole Life-cycle Costing: Construction and Occupancy Stages......Page 193
11.2 WLCC at the construction stage......Page 195
11.4 Typology of WLCC risk at the construction stage......Page 196
11.5 Tools for allocating WLCC construction risk......Page 203
11.7 Monitoring WLCC risk throughout the construction programme......Page 204
11.8 Construction WLCC risk responses......Page 205
References......Page 206
12.2 WLCC risks at operation stage......Page 207
12.3 Identifying the WLCC operational risks......Page 208
12.4 The maintenance cost centre......Page 209
12.6 The facilities management cost centre......Page 211
12.8 Operational stage WLCC: risks and risk responses......Page 215
References......Page 220
13.1 Introduction......Page 221
13.4 Conceptualising the WLCC model......Page 222
13.5 Existing WLCC models......Page 223
13.6 Recording WLCC data during occupancy stage......Page 224
13.7 Forecasting energy WLCC: a case study......Page 226
13.8 New WLCC models for operational stage WLCC analysis......Page 232
13.9 WLCC for an existing building: a case study of facilities management cost modelling......Page 236
References......Page 238
14.2 Sources of occupancy costs......Page 239
14.3 Set-up costs......Page 241
14.5 Controllable occupancy costs......Page 242
14.6 Disruption costs......Page 243
14.7 Data and methodology......Page 245
14.8 Results and analysis......Page 250
References......Page 257
Index......Page 259