APPENDIX D
Life-Cycle Cost Example
Life-cycle costing is a best practice that is not yet widely used in facility management (FM). The reason usually given is that management is only interested in first cost (a dubious excuse, if you really think about it).
The calculations are relatively simple, especially when using automated spreadsheets. The more difficult task is to obtain adequate projections of the savings and costs. A facility manager with sophisticated staff and accurate data department is likely to be able to project into the future fairly accurately. However, often facility managers have to depend on vendors or contractors to predict costs and savings in the future for new initiatives. Even that can work well provided that the ...
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