University of Florida
OP-16: Life Cycle Cost Analysis

Life cycle cost analysis shall be used as a design tool to ensure that the design provides the best value to the university. Life cycle cost analysis evaluates investment cost (first cost), utility costs (energy, water use, wastewater disposal), operation and maintenance costs, and periodic replacement costs. Life cycle cost analysis is recommended to guide the following decisions: High performance building envelope: Test options that create a high performance envelope including high performance glazing, insulation (beyond code required levels), overhangs for sun control, light shelves, etc. Evaluate savings in energy consumption and potential reductions in the cost of mechanical systems that may result. Also consider maintenance and periodic replacement costs of these options. Energy efficient lighting: Test options that utilize daylighting, energy efficient electric lighting, task-ambient lighting and lighting controls such as daylight dimming and occupancy sensors. Evaluate savings in energy consumption and potential reductions in the cost of mechanical systems that may result. Also consider maintenance and periodic replacement costs of these options. Mechanical system selection: Test a minimum of three different system options to determine the relationship between first cost and life cycle value. Consider operating costs, maintenance and periodic replacement costs of these options. Depending on the scope of the project, life cycle cost analysis is recommended to guide development of feasibility study(s), to explore potential use of these design strategies and to select the preferred system options prior to engaging in a full life cycle cost analysis.