What does "life cycle costing" in construction estimating evaluate?

Life cycle costing in construction estimating focuses on evaluating the total cost of ownership throughout the entire lifespan of a project. This approach transcends just the initial expenses and considers all costs that will accrue during the operational phase, including maintenance, rehabilitation, and even disposal at the end of the project’s life. By taking a holistic view of costs, stakeholders can make more informed decisions that factor in long-term financial implications.

This comprehensive methodology is essential as it aids in assessing not just the upfront investment but also ongoing expenses that impact the overall budget. It helps identify solutions that may have higher initial costs but lower operational and maintenance expenses over time, ultimately leading to more sustainable and cost-effective project outcomes.