Beyond the Bottom Line: Life Cycle Costing for Smart Investments
A long-term financial perspective is provided on commercial buildings and infrastructure projects. This approach considers the total cost of ownership over an asset’s entire lifespan, from initial construction through operation, maintenance and eventual disposal or renewal.
Our Life Cycle Costing service aims to provide clients with a comprehensive view of their investment, enabling informed decision-making that balances short-term expenditure with long-term value and sustainability.
The Life Cycle Costing process typically involves the following key steps:
- Initial Cost Analysis: Detailed estimates of all costs associated with the first design, construction and commissioning of the asset are provided.
- Operational Cost Projections: Forecasting ongoing costs such as energy consumption, cleaning, security and other day-to-day operational expenses.
- Maintenance and Repair Estimates: Projecting both routine maintenance costs and periodic major repairs or replacements over the asset’s lifespan.
- Renewal and Refurbishment Forecasts: Consider the costs of future upgrades or refurbishments that may be necessary to keep the asset functional and compliant with evolving standards.
- End-of-Life Considerations: Factor in costs associated with the asset’s eventual decommissioning, demolition or repurposing.
- Environmental and Social Impact Assessment: Include considerations of environmental and social costs or benefits associated with the asset over its lifecycle.
Modelling techniques are used to project costs over time, taking into account factors such as inflation, changes in energy prices and evolving building regulations.
Our Life Cycle Costing service is particularly valuable for clients looking to:
- Compare different design options or materials choices on a long-term cost basis
- Justify higher upfront costs for more durable or energy-efficient solutions
- Plan for future maintenance and replacement costs
- Demonstrate value for money in public sector projects
- Improve the balance between capital and operational expenditure
- Enhance the sustainability and long-term viability of their assets
When you choose Hampton Jones for your Life Cycle Costing needs, you are partnering with a team that combines technical ability with a deep understanding of the commercial property and infrastructure sectors in New Zealand. Our goal is to provide you with long-term financial insights to help you make strategic decisions, optimise your investments and ensure the best possible return on investment throughout the entire lifecycle of your assets.
