Abstract: Life Cycle Cost (LCC) is one of the goals and key
pillars of the construction management science because it comprises
many of the functions and processes necessary, which assist
organisations and agencies to achieve their goals. It has therefore
become important to design and control assets during their whole life
cycle, from the design and planning phase through to disposal phase.
LCCA is aimed to improve the decision making system in the
ownership of assets by taking into account all the cost elements
including to the asset throughout its life.
Current application of LCC approach is impractical during
misunderstanding of the advantages of LCC. This main objective of
this research is to show a different relationship between capital cost
and long-term running costs. One hundred and thirty eight actual
building projects in United Kingdom (UK) were used in order to
achieve and measure the above-mentioned objective of the study. The
result shown that LCC is one of the most significant tools should be
considered on the decision making process.
Abstract: Despite all the hype about green building, many developers are still resistant to the idea of building green due to the common perception that green building construction is expensive. This contradicts with scholarly findings that identify only a marginal cost premium or none at all given that green design is considered during the design process and planning stage. Nevertheless, cost implications continue to become an issue when deciding to build green. The planning stage is of strategic importance as decisions made at this early stage would influence the project cost thereafter. Using analysis of existing literature, the paper identifies six elements of soft cost that are considered in the planning stage. The elements include consultants, green building consultant, certification, commissioning, market, and tax. Out of the six elements, commissioning represents the bulk of soft cost for buildings seeking green certification. The study concluded that, although hard cost may have a bigger impact on the project cost, but soft cost is the hidden cost which people tend to ignore. Poor consideration of soft cost during planning stage may lead to over-realistic expectations and ultimately, overlooked cost additions.
Abstract: Quality costs are the costs associated with preventing,
finding, and correcting defective work. Since the main language of
corporate management is money, quality-related costs act as means of
communication between the staff of quality engineering departments
and the company managers. The objective of quality engineering is to
minimize the total quality cost across the life of product. Quality
costs provide a benchmark against which improvement can be
measured over time. It provides a rupee-based report on quality
improvement efforts. It is an effective tool to identify, prioritize and
select quality improvement projects. After reviewing through the
literature it was noticed that a simplified methodology for data
collection of quality cost in a manufacturing industry was required.
The quantified standard methodology is proposed for collecting data
of various elements of quality cost categories for manufacturing
industry. Also in the light of research carried out so far, it is felt
necessary to standardise cost elements in each of the prevention,
appraisal, internal failure and external failure costs. . Here an attempt
is made to standardise the various cost elements applicable to
manufacturing industry and data is collected by using the proposed
quantified methodology. This paper discusses the case study carried
in luggage manufacturing industry.
Abstract: Green buildings have been commonly cited to be more
expensive than conventional buildings. However, limited research
has been conducted to clearly identify elements that contribute to this
cost differential. The construction cost of buildings can be typically
divided into “hard" costs and “soft" cost elements. Using a review
analysis of existing literature, the study identified six main elements
in green buildings that contribute to the general cost elements that are
“soft" in nature. The six elements found are insurance, developer-s
experience, design cost, certification, commissioning and energy
modeling. Out of the six elements, most literatures have highlighted
the increase in design cost for green design as compared to
conventional design due to additional architectural and engineering
costs, eco-charettes, extra design time, and the further need for a
green consultant. The study concluded that these elements of soft cost
contribute to the green premium or cost differential of green
buildings.