LIFE CYCLE COSTING - AN EVALUATION OF AIR CONDITIONING SYSTEMS

Abstract

The concept of Life Cycle Costing is not new. However, the applications of Life Cycle Costing technique in the real estate industry, such as performance evaluation in facilities managements have yet to be explored. The need for staying competitive for building owners and investors has become crucial over these years. There is a need for facilities professionals to employ a technique that enables them to select the best option, and evaluate the performance of their facility in a more effective and efficient manner. The Life Cycle Costing technique is one such tool whereby it can assists in decision making, and setting direction for improvement by means of benchmarking. Air conditioning has become an essential service in commercial buildings, especially in tropical countries like Singapore. The operation, maintenance and repair costs of the system air conditioning system is significant. Thus, it is important that the appropriate system is selected. The successful facilities professionals in the new millennium will be able to identify the cost incurred throughout the life cycle of the facilities, and to achieve optimum value for the buildings.