Life Cycle Costing
Implementing UK Guidance to
BS ISO 15686-5:2008

Need to significantly reduce the overall cost of construction projects in both financial and environmental terms?  Attend this conference to understand how the British Standards on life cycle costing can help you meet your targets and win those scarce contracts.

This conference provides an update on the use and implementation of BS ISO 15686-5:2008  Buildings and constructed assets. Service life planning. Life cycle costing and accompanying UK Guidance document from the organization that created the standard; as well as providing updates on current good practice in the area of life cycle costing (LCC).

As organizations face the twin challenges of a financial downturn and increasing environmental considerations, calculating the true cost of a building and its all round sustainability becomes essential.

This conference will outline how you can sell the principles and benefits of LCC to clients in order to gain a competitive advantage, and will also inform you of the links between carbon and environmental targets and LCC. There will also be case studies delivered by organizations that are currently leading the way in the implementation of these important standards. 

Key features

• How to use life cycle costing to win new work, improve performance and make efficiencies in the short and long term 
• How LCC standards can improve practices and benefit your organization despite the recession
• Detailed guidance on how to cost-effectively implement BS ISO 15686  in conjunction with the guidance in PD 156865:2008 
• The links between environmental concerns and LCC  
• Briefing on the likely content of the forthcoming publication on maintenance and life cycle costing.

Please check back for updates as the date, venue and programme are confirmed.

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Congratulations to our EcoBuild prize draw winner, Fred Harding of FJ Harding.

Principal sponsor and drinks reception partner

Chair's introduction

John Armstrong  
Independent Consultant, Armville Consultancy;
Past President, CIBSE

Standards update

Update on UK and international Standards. Where are we now?

• Introduction to the ISO 15686 standards
• Future plans and recent developments in the ISO 15686 standards
• Benefits of a standardized and consistent approach to LCC

Dr Charles Whitlock
Programme Manager, Standards Development, BSI

• Content and scope of the document
• Why is it needed? 
• When should it be used?
• Benefits of using the document

Andy Green  
Director, Faithful + Gould

Current life cycle costing issues

Getting clients to buy into life cycle costing

• Estate rationalization and Defence Estates 
• Balancing
  - Assessment of the operational benefit of the asset(s)
  - Cost in through-life terms for the assets’ continued operation
  - Assessment of environmental impact of assets continued use
• Development of the Defence Estates Next Generation Estates Contracts (NGECs) and procurement

Tony Whitehead 
Head of Construction/Built Environment, Defence Estates

Life cycle costing and environmental targets

• How does LCC relate to environmental issues? 
• The Carbon Reduction Commitment

Mike Clift
Associate Director, BRE

Cost and life data for Life Cycle Costing

• Impact of cost and life variables on LCC plans 
• Obtaining service life data 
  - currently available data sources 
  - comparability of data from different sources 
  -  methods of synthesising data 
  - impact of level of detail 
  - associated maintenance data 
  - service lives for existing components 
  - data for 'insurance' vs data for planning
• Obtaining real life cost data

Paul Wornell
Technical Risk Management, BLP

• Overview – applying LCC to existing buildings
• Options assessment based on condition and future plans
• Prioritising expenditure – value for money issues
• Leasehold or freehold – does it make a difference?
• Worked example – energy efficiency and carbon reduction during refurbishment/remodelling
• Summary of issues in using LCC during operation

Kathryn Bourke
Director, Whole Life Limited

Current good practice case studies

Case study: Meeting Homes and Communities Agency (HCA) LCC requirements: Practical guidance, decision making for best value and sustainability

• What are the HCA LCC requirements?
• How to achieve the LCC requirements
• Applying LCC to the development and procurement process
• Using LCC for ongoing asset management
• LCC for best value and sustainability decision making

Peter Mayer
Research and Development Manager, BLP

Case study: Implementing life cycle costing in educational building projects

• LCC practice on BSF projects 
• Benchmark costs 
• Key challenges 
• Operational LCC management 
• Future developments

Ed Bartlett
Whole Life Director, Balfour Beatty Capital

Please check back as details of speakers and sessions are finalized.

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All those for whom life cycle costing is wholly or partly their responsibility, or for whom it impacts on their role, including:

• Local authorities, regional development agencies and housing corporations 
• Procurement managers 
• Quantity and building surveyors 
• Facilities managers 
• Architects 
• Engineers 
• Building subcontractors 
• Client advisors 
• Finance and operations directors 
• Environmental and risk managers
• PFI bid managers.

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Life cycle costing (LCC) is a valuable technique which is used for predicting and assessing the cost performance of constructed assets. LCC is one form of analysis for determining whether a project meets the clients’ performance requirements.

BS ISO 15686-5:2008 Buildings and constructed assets. Service life planning. Life cycle costing

Developed by industry and in consultation with 17 countries, BS ISO 15686-5 is expected to have a major impact on all future construction procurement. It gives guidelines for performing life-cycle cost (LCC) analyses of buildings and constructed assets and their parts.

Key objectives of BS ISO 15686-5 include:

• establish clear terminology and a common methodology for life-cycle costing (LCC)
• enable the practical use of LCC so that it becomes widely used in the construction industry
• set out the guiding principles, instructions, definitions for different forms of LCC and reporting
• provide a common basis for setting LCC targets during design and construction
• clarify the differences between life-cycle costing and whole-life costing.

PD 156865:2008 Standardized method of life cycle costing for construction procurement. A supplement to BS ISO 15686-5. Buildings and constructed assets. Service life planning. Life cycle costing

A supplement to the first international standard on life cycle costing, Standardized Method of Life Cycle Costing for Construction Procurement brings together BS ISO 15686-5 and the BCIS Standard Form of Capital Cost Analysis (SFCA) along with industry recognized occupancy cost codes/

It provides:

• An industry accepted methodology to facilitate a more accurate, consistent and robust application of LCC estimation and option appraisals
• A basis for life cycle cost analysis and benchmarking
• Practical guidance, instructions and definitions, together with informative worked examples on how to undertake LCC
• Process maps to help you to plan, generate, interpret and present your results
• Instructions on how to define your client’s specific requirements for LCC.

Book now