1.2 Design economics over a buildings life

Question 1

What is life cycle costing?

Answer 1

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Question 2

When would you use life cycle costing?

Answer 2

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Question 3

What do we mean by an optional appraisal in the context of life cycle costing? Can you give an example?

Answer 3

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Question 4

What are the advantages of preparing a life cycle cost?

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Question 5

What do you know about the BS/ISO 15686-5 (Life cycle costing) document?

Answer 5

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Question 6

What is a whole-life cost?

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Question 7

What is the difference between a whole life cost and a life cycle cost?

Answer 7

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Question 8

What elements are included in a whole life cost? Can you give some specific examples?

Answer 8

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Question 9

Describe the different levels at which Life Cycle Costing may be carried out (e.g. component level through to multiple assets level)

Answer 9

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Question 10

How long would you assess a life cycle cost for? What factors might affect this?

Answer 10

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Question 11

Explain what is meant by the ‘base date’ in the context of life cycle costing

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Question 12

What is the difference between nominal costs and real costs?

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Question 13

What is the difference between capital costs and through life costs?

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Question 14

What are the two common processes to bring all future costs to a value at the base date?

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Question 15

Do you know what we mean by annual equivalent in the context of life cycle costing?

Answer 15

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Question 16

Do you know what we mean by present value in the context of life cycle costing?

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Question 17

What do you understand by NPV and AEV in the context of life cycle costing of life cycle costing? What method do you believe to be most common?

Answer 17

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Question 18

In the context of life cycle costing what do we mean by present value?

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Question 19

Can you give an example of a calculation to work out the net present value of a building?

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Question 20

What are the various sources of data you would use for life cycle costing?

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Question 21

Can you explain what we mean by terminal values and how these are incorporated into a life cycle cost?

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Question 22

Can you explain what we mean by residual values and how these are incorporated into a life cycle cost?

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Question 23

What do you know about life cycle costing? Can you run me through the calculation example for roof?

Answer 23

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