Life cycle costing: Practice v theory

Numerous studies have already been conducted in the area of life-cycle costing (LCC), however few studies have been conducted into resolving its lack of utilisation in practice. This paper sets out known barriers and limitations and provides some advice for how education can play a role in developing future perceptions, and hence assist in bridging the gap between practice and theory. LCC is sometimes undertaken on projects of a build, own and occupy nature where it is in the client's best interest to conduct such an exercise and where taxpayers' monies are involved, however projects which are of a build and sell nature rarely utilise the technique. It is concluded that presenting LLC as an instrument of climate change adaptation increases its relevance to society and, together with an understanding of potential obstacles in practice, can succeed in educating the next generation of project stakeholders about its value in project design.