The Life Cycle Costing Analysis for Facilities Management: Technical Approach

Life Cycle Costing Analysis (LCCA) is an economic assessment of an item, system, or facility over its life,
expressed in terms of equivalent cost, using baseline identical to those used for initial cost. In facilities
management, future costs will often match or exceed the initial cost of procurement. Owners are recognizing
the relationship between costs and looking for ways to reduce total life cycle cost without adding undue
burdens to initial procurement. Thus, LCCA is used to compare various options by identifying and assessing
economic impacts over the life of each option.