Life cycle costing (LCC) as a contribution to sustainable construction ...

Towards a common European methodology for Life Cycle Costing (LCC) – Guidance Document
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Results (continued)
The LCC-criteria should be related
more thoroughly to other
requirements and specifications in
the contract to avoid negative
unforeseen effects. Expansion
joints give a good example that
illustrates the unforeseen effects of
conflicting requirements, as they
can make up 20 to 30% of
maintenance costs for viaducts.
Conclusions and benefits
Life cycle costs were incorporated as a criterion for determining the
(economically) most profitable bid in the tender of functionally specified
contracts. By considering life cycle costs in a tender process, contractors
were encouraged to design, develop and offer solutions that are profitable
and beneficial on a longer term. This is not only in the interest of the
procurer but also offers contractors a better opportunity to distinguish
themselves in terms of quality and service. In addition, parties may gain from
design optimisation for maintenance.
The LCC-tender for A4 Burgerveen - Leiden was successful in a sense that
the expected maintenance costs where reduced considerably, without having
a considerable effect on the construction cost. Contractors were given the
opportunity to distinguish themselves by offering a balanced life cycle
design and development of innovations that imply savings on life cycle cost.
Contact details
Jaap Bakker
Civil Engineering Division, Ministry of Transport Public Works
& Water Management
Utrecht, The Netherlands
E-mail: jaap.bakker@rws.nl
Davis Langdon Management Consulting May 2007