LIFECYCLE COST ANALYSIS
Lifecycle Cost Analysis (LCCA) evaluates competing MEP/FP system options by comparing installed cost, utility consumption, maintenance, and replacement cycles over an owner-defined study period. We model realistic operating profiles and utility rate structures, then quantify present-worth outcomes with sensitivity testing so stakeholders can select systems that deliver the best long-term value and defend decisions during acquisition, financing, or design.
Key Features
Compare MEP/FP system alternatives using present-worth life-cycle costs, replacement schedules, and sensitivity testing to support investment-grade decisions.
Utility & Load Profile Modeling for Alternatives
Develop calibrated operating profiles and end-use energy/water assumptions for the building, then model baseline and proposed MEP/FP system alternatives using project-specific utility rates, demand charges, escalation assumptions, and climate data. Outputs include annual energy and water use by end use, peak demand impacts, and utility cost projections suitable for option-to-option comparisons.
Capital, Replacement, and O&M Cost Model by System
Build a life-cycle cost model that includes installed first costs, preventive maintenance, corrective maintenance allowances, component replacement schedules (by expected service life), and residual values. Costs are structured by system (HVAC, controls, plumbing, electrical distribution, lighting, fire protection) and normalized to consistent scopes so bidders and owners can validate assumptions.
NPV, Sensitivity, and Decision-Ready LCCA Reporting
Calculate net present value (NPV), present worth, and equivalent annual cost for each alternative using owner-approved discount and inflation rates. Provide sensitivity testing on energy escalation, discount rate, maintenance/replacement variability, and operating schedules, plus clear recommendations and risk notes so stakeholders can select the best long-term option during funding, design, or procurement.
Owners & Developers evaluating long-term ROI
Uses the alternative utility/load modeling and NPV comparison to choose systems that minimize total cost of ownership—not just first cost—when setting project basis-of-design and approving upgrades.
Lenders and investment committees
Relies on a documented life-cycle cost model (capex, replacements, O&M, and assumptions) to validate underwriting, confirm payback logic, and defend funding decisions during due diligence or capital planning.
Facilities and operations teams
Needs replacement schedules and maintenance cost allowances tied to specific equipment life expectancies so staffing, spares, and planned shutdowns can be budgeted and aligned with reliability targets.
Who Needs This
Client Benefits
Defensible total cost of ownership decisions
Provides an auditable comparison of alternatives (first cost + energy + water + maintenance + replacements) so teams can select systems based on life-cycle value and document the rationale for boards, lenders, and public stakeholders.
Reduced budget surprises from replacements and maintenance
Identifies major component replacement timing and realistic O&M allowances by system, helping owners plan capital reserves, align warranty and service strategies, and avoid unplanned expenditures during ownership.
Stronger procurement and bid comparability
Normalizes scope and assumptions across alternates, enabling clearer performance requirements, cleaner bid leveling, and fewer change orders driven by hidden operating or maintenance assumptions.