Life Cycle Cost Analysis Report: Commercial Development Project

This report provides a comprehensive analysis of Life Cycle Cost (LCC) in commercial development, focusing on the various aspects influencing project success. It explores the importance of proper contract selection, procurement strategies, and building appraisals. The report highlights key considerations for quantity surveyors, including standard contract types and their suitability based on project requirements. It delves into the Construction Contracts Act 2013 and its implications for non-payment issues in construction. Furthermore, the analysis covers different procurement strategies such as traditional acquisition, design-build, and management acquisition, emphasizing how each impacts contract choices and project outcomes. The report includes a construction cost analysis for a residential project, outlining cost planning, environmental targets, and a life cost analysis schedule. Finally, it provides recommendations for quantity surveyors to ensure the best value for clients and mitigate risks associated with contract management.

LCC Basis of Life Cycle Cost
COMMERCIAL DEVELOPMENT
By Name
Course
Instructor
Institution
Location
Date

LCC Basis of Life Cycle Cost
INTRODUCTION
Successful projects are those which are conveyed to the required quality principles, securely, on
time, and inside the endorsed spending plan. Successful venture administration looks to
guarantee that these destinations are accomplished: picking a proper contract game plan is a key
component in this procedure. Despite the fact that agreements can be made by listening in on
others' conversations or by direct, it is hard to demonstrate what has been said or done except if
some type of record has been kept (Khosrowshahi and Arayici 2012). With the end goal to
prevail in an activity in getting, the weight of verification lays on the inquirer to appear, that on
the parity of probabilities, his or her case is substantial.
It is imperative in this way that a record of the deal struck by the gatherings, the points of
interest of the work, and the rights and commitments of the gatherings are obviously
communicated in composing. The significance of composed records can't be overemphasized as
these are normally the main proof of what precisely had been concurred. When these terms are
consolidated, they diminish the probability of question which can, thusly, prompt lawful
activity. As some researchers point out contracts are drawn up with the aim of depending upon
them in an official courtroom sooner or later'.
Task Two
Building appraisal
The scope of the appraisal of the building included the site inspections. The relevant data on the
market was collected. Latham (1994) clarifies that the decision of agreement conditions is an
issue for the customer, who organizes the subsidizing for the undertaking as well as pays for it.
Where both primary gatherings simultaneously - boss and temporary worker - are similarly
coordinated, the decision of agreement conditions might commonly concur. Practically

LCC Basis of Life Cycle Cost
speaking, notwithstanding, advertise powers more often than not make one collection
overwhelming. Most contracts for considerable building projects are chosen by customers,
much of the time on the guidance of their structure group or potentially quantity surveyor, who
is frequently seen as the master within. The caution that is using a wrong standard type of
agreement for a task is hazardous.
Figure 1:Identified site(Khosrowshahi and Arayici 2012)
It will frequently imply that targets as far as time cost and quality are not completely
acknowledged and that the probability of question will build.' Quantity surveyors must, in this
manner, have working information of the reasonableness of the different contract choices.
The different standard structures mirror the particular needs of their creators and each
apportions chance in an individual way. With regards to the Republic of Ireland where there are
some degree constrained, yet extending, the decision of 'indigenous' standard types of a
building contract is not simple. It is difficult to build up a mentality to suggest a natural shape.
Customers' interests, in any case, are ideally serviced by picking a suitable shape as opposed to

LCC Basis of Life Cycle Cost
a helpful one. No single type of agreement is in every case superior to another – and the
inevitable decision will rely upon the specific conditions. It is vital for surveyors to stay
unprejudiced, the prescribed contract ought to be what offers the best an incentive to a
customer. For instance, it might suit a specific private area customer to utilize an agreement like
the GCCC Public Works Contract.
Figure 2:Residential building in the site: (Khosrowshahi and Arayici 2012)
The growing scope of agreement choices proposes that a more formal basic leadership approach
is judicious to guarantee that fitting decisions are made, especially where a customer requires a
method of reasoning for the suggested contract methodology, for instance, examine the need to
build up a contact profile, for example, a radar chart which may recommend where the plan
obligations are to rest, their degree, the most appropriate acquisition strategies, and contract
systems. This thusly will influence offering courses of action and the sum and type of data
which offering contractual workers will require. Sandtra (1994) has built up a lattice which
maps customer needs to likely reasonable obtainment choices. This methodology is analyzed
under customer chance demeanor beneath.

LCC Basis of Life Cycle Cost
The issue of development contracts is topical. The Construction Contracts Act 2013 has been
instituted on the 29th July of this current year. The Act intends to handle the issue of non-
installment to development contractual workers who have finished works. Clergyman of State
Brian Hayes TD commented that numerous development contracts are 'awfully uncertain' and
not cost effective. He expressed that 'the Government is focused on securing little building
subcontractors that have been denied installment from greater organizations'. The Act applies to
non-private development contracts in abundance of €10,000 and private contracts over 200m2
in the territory. It accommodates indicated installment sums at particular interims amid the
development stage, restricts pay-when-paid provisions, acquaints a privilege with suspend work
where installment isn't made by the due date and accommodates settling methodology to
determine installment question in a quick way.
The effect of acquirement methodology on contract decision
The decision of a perfect type of agreement is personally connected to the general obtainment
system produced for an undertaking. A concise blueprint of the principle acquirement
frameworks is incorporated underneath to give the set to contract choice; the peruser alludes for
additional data to the various reading material and productions which look at this theme in more
noteworthy detail.
Procurement Strategies
Acquisition alludes to the way toward acquiring merchandise and projects from another for
some thought. They illustrate the procedure as being basic in principle – adjusting quality, time
and cost needs, yet confused by enactment, the need to accomplish an incentive for cash,
exhibit responsibility and facilitate specialist and legally binding jobs and commitments to
accomplish consumable result. Research take note of that the decision of acquisition system
recognizes how the project is organized as far as where duty regarding configuration is to be

LCC Basis of Life Cycle Cost
set, how the work is to be facilitated, and the value premise on which the agreement is to be
granted. Structure and coordination contemplations have prompted the improvement of three
guideline development obtainment techniques: customary acquisition, plan, manufacture, and
administration acquirement.
Application
This course of action normally includes a customer designating specialists to create a structure,
select a contractual worker and oversee the work through to culmination. The temporary worker
is normally chosen based on rivalry and is in charge of the administration and conveyance of
the office and for the nature of workmanship and materials utilized, including those of the
subcontractors. The procedure has been broadly utilized before and keeps on being generally
utilized. Conventional acquirement is suited to an extensive variety of undertakings including
those where the extent of the works contain critical questions and dangers, which contractual
workers would be notable build-up ahead of time; they are frequently utilized on restoration,
modification, and legacy extends thus. The methodology, in any case, may not be suited to
especially complex tasks requiring propelled administration frameworks, structures and
abilities. Engineers and bosses who can benefit of in-house plan and administration
administrations or who wish to rehash a previous standard structure may support this
methodology..
The conventional acquisition approach is related with tasks where the business organizes the
tasteful and quality parts of the project; it permits him/her to keep up command over the nature
of the work amid the plan and development periods of the undertaking. The procedure is
regularly direct in methodology and continues through a progression of plan improvement
stages which ought to enable adequate time for configuration groups to investigate choices and

LCC Basis of Life Cycle Cost
to conclude the works requirements within budgetary and time limitations. The procedure
enables extensive delicate documentation to be produced which encourages aggressive offering
courses of action and empowers single amount contracts to concur with contractual workers.
The result ought to thusly advance cost assurance. All things considered, expenses may be in
this manner balanced, as the course of action gives the adaptability to bosses to choose or name
temporary workers to complete master parts of the structure. The capacity to acquaint varieties
and degree changes within the task for possibilities and the changing needs of the business will
be recommended.
The fundamental disadvantages of the customary methodology are obtained from the
detachment of the plan from the development work. The specialized and administration faculty
engaged with the undertaking are not part of a solitary incorporated group with single point
obligation regarding structure and development. Temporary workers, who are the development
specialists are to a great extent avoided from the structure advancement process with the
outcome that more buildable, imaginative, or maintainable arrangements may have been
ignored. This division additionally convolutes correspondences and may encourage a mentality
which decreases the camaraderie crucial for effective activities. This trouble is intensified by
the aggressive offering process related to customary acquirement; separating targets among
development members may prompt irritable connections amid the conveyance of an
undertaking. The division additionally prompts troubles in setting up risk for imperfections as it
might be misty whether these emerge from structure or development deficiencies.
The Type of Documentation Being Used
Contract choice will regularly drive the prerequisite for contract documentation.

LCC Basis of Life Cycle Cost
Outline
This investigation has quickly depicted the contemplations which underlie the decision of
agreement shapes in countries. It has talked about the impact and ramifications of obtainment
and installment courses of action on this choice and infers that the reason for the decision, for
the most part, spills out of the customer's needs and that due thought of these needs, such
requirements are critical to settling on powerful decisions. It has talked about the idea of
bespoke and the diverse groups of agreements and their primary structures. This should help in
guiding the surveyor to a proper shape for the customer's circumstance. It has clarified the
reason and utilization of the different GCCC and RIAI contract shapes. At long last, the
investigation looks at the inspecting standards underlining suggestions on contract decision
(Ashworth and Perera 2018).
Proposals for Quantity Surveyors
Standard types of the agreement once in a while coordinate the business necessities precisely.
Quantity surveyor sought to in this manner ponder the proposed contract before making a
suggestion. Viewpoints which sometimes fall short for the business prerequisites ought to be
recognized. Where these are minor issues, at that point minor corrections to the agreement
might be considered, ideally following lawful exhortation. Real issues demonstrate that an
elective contract procedure or a sensible trade-off would be all together. Surveyors ought to
have the capacity to legitimize the purposes behind, and the ramifications of their suggestions.
Numerous undertakings experience the ill effects of agreement goals not being met. This makes
pointless hazard for bosses and may harm the Quantity surveyor's notoriety.

LCC Basis of Life Cycle Cost
Location of the site
CONSTRUCTION COST ANALYSIS
 PROJECT
TITLE:
Location Marina Bay
Project Details: Residential constriction
Owner: Client X
Occupier: Tenants
Prepared By: Company Y

LCC Basis of Life Cycle Cost
DATES
Plan Preparation
date:
NO
V-
Indexing
Base
N
/
Construction Cost Base Date: J-
04
Start Date: Au
g-
Date of
Completion:
01/08/017 Date of
Hand Over:
01/08/018
Maintenance Start Date: 01/08/017 End Date: 31/07/018
Operation Start Date: 01/08/017 End Date: 31/07/018
Occupancy Start Date: 01/08/017 End Date: 5/
End of Life End Date: 31/07/017 Hand Back
Liability N
/
Period of
Analysis:
6
0
Uni
t
of
Yea
r
Total Asset
Life
Expectancy:
1
0
BASIS OF YEARS (eg. Calendar; financial year) – please state
Calander
Years
PROCUREMENT DETAILS
Procurement
Route:
Traditional
Procurement
Stage:
Cost Plan Stage 6 – Tender
Tender Basis: Two Stage Selective
Market
Conditions:
Non Competitive
BUILDINGS ENVIRONMENTAL TARGET
Scheme None Target Score
Other
BASIS OF COST
Current Price Yes Discount Rate 5%
Net Present
Value
Yes Escalation 3%
Escalation Rate Oil & Gas 5% GIFA 7,440
LIFE COST ANALYSIS
Schedule of Areas

LCC Basis of Life Cycle Cost
Basement floors: Percentage of gross
Ground floor Below ground floor
Upper floors Single storey
Total (Gross Internal Two storey
Usable Area storey construction
Circulation Area storey construction
Ancillary Areas Average story height:
Internal divisions Below ground floor(s)
Total (Gross Internal Ground floor
Spaces not enclosed: Above ground floor(s)
Areas Requiring
Regular
External vertical
envelope (Ext. walls,
Internal cube Area of Glazing
Area of site Number of units
Exclusions Inclusions
1 Asbestos Removal 1 Professional Fees
2 Abnormal Ground Conditions 2 Furniture Fixtures and equipment
3 Legal Fees 3 Planning Fees
4 Archaeology 4 Fire Certification Fees
5 Removal of Contaminated Material 5 PC's
6 Overtime due to accelerated 6 Electricity Costs
7 Land Acquisition Costs 7 Fuel Costs
8 Site Investigation Costs 8 Telephone Costs
9 Wages and Salaries 9 Postal Costs
1 Finance Costs 1 Cleaning
1 Taxes 1 Classroom Materials
1 Incomes
1 Building and Contents Insurance
1 Contingency for Life Cycle Costs
1 Enabling Works
1 Externalities
1 Non Construction Costs
Documents Used as Bases of Analysis Source
1
.
Construction Cost Plan Stage 6 KSN
2
.
Replacement Values Department of Education
3
.
Replacement Values BCIS
4
.
Annual Costs Board of Management Colaiste
Bride
5
.
Methodology BCIS Standard Method of
Measurement for LCC, ISO 15868

WLCC Whole Life Cycle Cost Life Cycle
Cost €/m2
Total
Present
Value €/m2
CC Construction Costs 12,774,063 1716.94 12,774,063
1716.94
2.0 Maintenance Costs 17,177,655 2308.82
9,501,431 1277.07
3.0 Operations Costs 5,640,000 758.06 4,625,512
621.71
4.0 Occupancy Costs 5,469,000 735.08 3,213,619
431.94
5.0 End of Life Costs 0 0.00 0 0.00
LLC Life Cycle Cost (2.0 - 5.0) 28,286,655 3801.97 17,340,562
2330.72
TLLC Total Life Cycle Cost (Incld Construction) 41,060,718
5518.91 30,114,625 4047.66
6.0 Non Construction Costs 0 0.00 0 0.00
7.0 Income 0 0.00 0 0.00
8.0 Externalities 0 0.00 0 0.00
WLC Whole Life Cycle Cost (ex VAT) 41,060,718 5518.91 30,114,625
4047.66
VAT Vat 5,543,197 745.05 4,065,474 546.43
WLC VAT Whole Life Cycle Cost (Inc. VAT) 46,603,914 6263.97 34,180,100
4594.10
NAE Net Annual
Expenditure Annual Costs €/m2 %
2.0 Maintenance Costs 286,294 38.48 61%
3.0 Operations Costs 94,000 12.63 20%
4.0 Occupancy Costs 91,150 12.25 19%
NAE Net Annual Expeniture 471,444 63.37 100%
7.0 Annual Income
WNAE Whole Net Annual Expenditure 471,444 63.37