ARDHI UNIVERSITY.

SCHOOL OF ARCHITECTURE CONSTRUCTION ECONOMICS AND

MANAGEMENT (SACEM).
DEPARTMENT OF BUILDING ECONOMICS.
BE435 CONSTRUCTION ECONOMICS II ASSIGNMENT NO. 1

GROUP NO.4
S/N STUDENT NAMES. REGISTRATION NO.
01 JOHN, RICHARD M 10923/T.2017
02 JANE, JAMES B 10102/T.2016
03 MBISE, CALVIN M. 11682/T.2017
04 UBWE, CYNTHIA E 11613/T.2017
05 BYRUGABA, JONIA J 10245/T.2017
06 MBWELWA, SALVATORY ADELITUS 10934/T.2017
07 WARYOBA, JOHN A 11805/T.2017
08 MALONGO, GABRIEL A 11249/T.2017
 Name of Journal: Life cycle costing as an important contribution to feasibility study in
construction projects
Author: Renata Schneiderova Heralova.

Life cycle costing as an important contribution to feasibility study in construction projects

The purpose of this journal paper is to highlight the role of life cycle cost (LCC) analysis in the
feasibility study of construction projects, mainly based in the public sector.

Introduction

Feasibility study is simply a precise review and examination to decide the possibility of successful
investments of different measurements alternatives. It always mostly applicable during pre-design
of the proposed project on which it applied in construction projects for the aim of understand cost
implication of the project through set budget limit of the project, through plan and design the
proposed structure, monitoring cost during construction, running and maintenance cost example
avoiding installation of air condition on a certain project and opting the installation of wide
windows in order to allow enough air circulation and installation of fans. Through that help to
reduce running and maintenance cost for running air condition. Also Feasibility studies it applied
in construction projects for the aim of promote or defend design proposal. Public sector feasibility
study mainly focuses on three aspects; cost, benefits and purpose of conducting feasibility study.

In this journal the writer explain on the experience of assessing the building design in term of Life
cycle cost mainly based in the public sector in the ezech republic. Life cycle cost begin in UD
Department of defense on which it was used as method of collecting data concerning on running
cost, operating cost and maintainace cost of the design building. It normally undertake on the Early
stage of construction project with the main objectives to settle on whether a project is reasonable
proposition, It enable to determine different possible alternative and develops the additional
project documentation such as project execution plan and the brief strategic.Through the use of
discounted cash flow method can help on assessing the life cycle cost under the help of Net present
value and equivalent anual cost.

The crech republic have establishing SAO (supreme Audit Office) as independent body that audits
all economic activities despite that supremenAudit Office is currently based in an older office
building which are leased and purchases of a new building is being considered. Through assessing
LCC the following are the weaknesses observed during conducting feasibility study. Availability
of data for construction project, feasibility study is based on assessing the past data which are
likely with the design.Its absence endup on unqualified feasibility report about the project ( not
able to adress well the project due to absence of enough information of past data) the author as
proposed way for resolve it is throuh updating the historical data for LCC. Another weakness is
the time value of money. Time value for money is full deals with consideration of maintenance
aspect and possible future cost at the design stage both are likely for client to securing better value
of his money. The author proposed the best way of work with time problem is to make cost
expected to increase more than other cost.

The author finalize the journal through indicating benefits of using Life cycle cost. Inorder to use
it the decision makers must perceive benefits of use it. Also life cycle cost can be used as part of
feasibility studies to find the most cost effective solution as part of detailed design and early
optimization of potential in design phase is significant and also cheap.

General conclusion from the journal the author of journal explaining on benefits of conducting
feasibility study on the early stage of desig on which can help to forecast on all the cost on which
the building can incured starting from initial cost, Running costs and occupation charges on which
both of them are to be assessed early for better in maitainig the total cost of the stracture.