Chapter 4: Life-cycle Costing for Building Projects

In the era of increasing inflation and high interest rates, more attention should be given to mechanisms promoting optimum value for money in the construction industry. This chapter discusses life-cycle costing (LCC) as a concept to add value and eliminate waste in the whole life cycle of a construction project. Many stakeholders are interested in the project's initial cost without considering operational and maintenance costs. The chapter identifies challenges in the use of LCC techniques in building projects in developing countries, using Nigeria as a case study. Methods used for investment appraisal are covered, with several examples.