The-Quan Nguyen This email address is being protected from spambots. You need JavaScript enabled to view it.1 and Van-Yen Ngo1

1National University of Civil Engineering, 55 Giai Phong Road, Hai Ba Trung District, Hanoi, Vietnam


 

Received: February 4, 2021
Accepted: May 4, 2021
Publication Date: June 23, 2021

 Copyright The Author(s). This is an open access article distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are cited.


Download Citation: ||https://doi.org/10.6180/jase.202112_24(6).0006  


ABSTRACT


The use of life-cycle costing in construction management is fruitful. There is an abundance of tailored, casespecific methods of LCC being developed for use in different cases or industries. However, in public buildings in Vietnam, due to the unavailability of cost, norm data and official guidance, no case of LCC use has been discovered in practice. The paper proposes an adapted approach for LCC in which life-cycle cost can be calculated as a sum of three major elements: initial construction costs, operation and maintenance costs, and the deconstruction costs. For illustration, the paper introduces a case study in calculating life-cycle cost for the Vietnam Securities Depository Centre, the first public office building being accredited as a green building under LOTUS scheme in the country. Using the same process, life-cycle costs can be calculated for other design alternatives for the building. The results are then compared to support the decision-making process to get the most viable alternative. Though this approach has some shortcomings, practitioners can find it as a step-by-step guidance for LCC; they can also use lessons learned from the case study to deal with the lack of detailed data for conducting an estimation of life-cycle costs for public buildings projects.


Keywords: Life-cycle cost, Life-cycle costing, NPV approach, Green buildings, Public buildings


REFERENCES


  1. [1] David Elmakis and Anatoly Lisnianski. Life cycle cost analysis: Actual problem in industrial management. Journal of Business Economics and Management, 7(1):5–8, 2006.
  2. [2] Jutta Schade. Life cycle cost calculation models for buildings. Open Information Environment for Knowledge- Based Collaborative Processes throughout the Lifecycle of a Building, (October):2–4, 2007.
  3. [3] Marianna Lena Kambanou. Life cycle costing: Understanding how it is practised and its relationship to life cycle management-A case study. Sustainability (Switzerland), 12(8):3252, 2020.
  4. [4] Ooi Chu Hui and Abdul Hakim Mohammed. The role of cost breakdown structure in life cycle cost model. Jurnal Teknologi, 74(2):117–121, 2015.
  5. [5] Varshini Gopanagoni and Sree Lakshmi Velpula. An analytical approach on life cycle cost analysis of a green building. In Materials Today: Proceedings, volume 33, pages 387–390, 2020.
  6. [6] Sieglinde K Fuller and Stephen R Petersen. Life-cycle costing Manual for the Federal Energy Management Program, 1996.
  7. [7] Jemima Highton. Life-cycle costing and the procurement of new buildings : The future direction of the construction industry. Public Infrastructure Bulletin, 1(8):14–19, 2012.
  8. [8] Maria Rosa De Giacomo, Francesco Testa, Fabio Iraldo, and Marco Formentini. Does Green Public Procurement lead to Life Cycle Costing (LCC) adoption? Journal of Purchasing and Supply Management, 25(3), 2019.
  9. [9] Pernilla Gluch and Henrikke Baumann. The life cycle costing (LCC) approach: A conceptual discussion of its usefulness for environmental decision-making. Building and Environment, 39(5):571–580, 2004.
  10. [10] Shengping Li, Yujie Lu, HarnWei Kua, and Ruidong Chang. The economics of green buildings: A life cycle cost analysis of non-residential buildings in tropic climates. Journal of Cleaner Production, 252, 2020.
  11. [11] Achini Shanika Weerasinghe, Thanuja Ramachandra, and James O.B. Rotimi. Comparative life-cycle cost (LCC) study of green and traditional industrial buildings in Sri Lanka. Energy and Buildings, 234, 2021.
  12. [12] Bee Hua Goh and Yuting Sun. The development of life-cycle costing for buildings. Building Research and Information, 44(3):319–333, apr 2016.
  13. [13] HP Barringer, DPWeber, and MHWestside. Life-cycle cost tutorials. Fourth International Conference on Process Plant Reliability (Gulf Publishing Company), 1995.
  14. [14] Akintayo Opawole, Solomon Olusola Babatunde, Kahilu Kajimo-Shakantu, and Oluwatumininu A. Ateji. Analysis of barriers to the application of life cycle costing in building projects in developing countries: A case of Nigeria. Smart and Sustainable Built Environment, 9(4):503–521, mar 2020.
  15. [15] Maria D’Incognito, Nicola Costantino, and Giovanni C. Migliaccio. Actors and barriers to the adoption of LCC and LCA techniques in the built environment. Built Environment Project and Asset Management, 5(2):202– 216, may 2015.
  16. [16] 013-NR-2.0-NC - Vietnam Securities Depository - VGBC.
  17. [17] Ministry of Construction 09/2019/TT-BXD, Circular guiding the estimation and management of construction costs, 2019.
  18. [18] Tung Thanh. Contruction Electronic Newspaper - Ministry of Construction. An overview of the green buildings market in Vietnam 2018, 2019.


    
 

0.7
2020CiteScore
 
 
33rd percentile
Powered by  Scopus

SCImago Journal & Country Rank

Enter your name and email below to receive latest published articles in Journal of Applied Science and Engineering.