Statsbygg/Scandiaconsult AS The Workplace Network The Life Cycle Profit model 10th Annual TWN Workshop Oslo, Norway, May 6-11, 2001 Statsbygg/Scandiaconsult AS

Life Cycle Profit The key to sucsess!

Why use LCP calculations? Buildings and constructions represent over 2/3 of the nations real capital. The right tool for planning and evaluating projects. To document sustainable solutions. To give credebility towards the customers and a precedence towards competitors in the buisiness. It will be demanded in future projects: Public authorities By law (Lov om offentlig anskaffelser) Statsbygg Private investors? 03.01.2019 The Life Cycle Profit Model

The Life Cycle Profit Model Background In autumn 1998 Statsbygg made it mandatory to perform LCP calculations in all Statsbygg projects. To ease calculating LCP, Statsbygg develops a spreadsheet model implemented in Excel 97. The model is based on the Norwegian Standard NS 3454 (LCC for buildings and civil engineering work). The calculation tool was made available to all participants in Statsbygg projects. Other landlords, both public and private, are starting to demand LCP calculations in their projects. 03.01.2019 The Life Cycle Profit Model

LCC distribution - Capital and MOM Calculating LCC is an important process, especially in projects where MOM-costs gives a major contribution to the buildings lifetime costs. 03.01.2019 The Life Cycle Profit Model

The Life Cycle Profit Model Annual cost theory Discounting to NPV LIfeime costs (NVP of LCC) Project cost Replacements and major maintenance Annual MOM Functional lifetime Dette er en rask innføring i årskostnadsteori, som egentlig er finansmatematikk: Vi tenker oss en brukstid for bygningen, dvs. den tid bygningen er tenkt brukt til formålet. Ved år 0 har man en investeringskostnad, i årskostnadssammenheng kalt kapitalkostnad. Videre har man en jevn FDV-kostnad over brukstiden, f.eks. renhold- og energikostnader. I tillegg kommer nødvendige utskiftninger med ujevnt intervall gjennom brukstiden. For å få disse kostnadene sammenlignbare må man diskontere kontantstrømmen til nåverdi. De årlige FDV-kostnadene summeres opp og diskonteres ned til nåverdi Det samme gjøres med utskiftningskostnadene. Til sammen utgjør nå kostnadene levetidskostnaden for bygningen. For å kunne sammenligne med årlig husleie må levetidskostnaden uttrykkes i årlige beløp eller en ”annuitet”. Annuiteten av levetidskostnaden er det vi kaller årskostnaden, og er enkelt sagt hva bygningen koster oss hvert år. Husleien bør da helst være større enn dette! Lifetime costs are calculated as annuity costs Annuity costs 03.01.2019 The Life Cycle Profit Model

The Life Cycle Profit Model Levels of LCP 1 2 3 Strategic level Tactical level Operational level Asset-survey Location and site Investment Main consept Dessision-making Systems Elements Qualitys Operation and maintenance The model is best suited for use on the tactical and operational level. On the strategic level a simlified method may be used. 03.01.2019 The Life Cycle Profit Model

The Life Cycle Profit Model The LCP model Factors Alternatives Electrical HVAC Originally developed to meet Statsbyggs need for LCP calc. Implementet as a spreadsheet tool in Excel 97 11 sheets giving you an easy-to-follow interface Construction Maintenance Operation Management Calculation Assumptions Front page 03.01.2019 The Life Cycle Profit Model

The Life Cycle Profit Model The Front page Gives an overveiw over key figures the building calculation assumptions annuity costs Graphics that summarizes the results 03.01.2019 The Life Cycle Profit Model

The Life Cycle Profit Model Assumptions All major assumptions concerning the calculation (except for maintenance data) Planners are only to enter information in this sheet. Assumptions are grouped into areas of interest 03.01.2019 The Life Cycle Profit Model

The Life Cycle Profit Model Maintenance 03.01.2019 The Life Cycle Profit Model

Maintenance - input section 03.01.2019 The Life Cycle Profit Model

Maintenance - distribution section 03.01.2019 The Life Cycle Profit Model

The Life Cycle Profit Model MOM - Costs Table - MOM-cost for different building categories (Multiconsult) 03.01.2019 The Life Cycle Profit Model