Whole Life Appraisal: for Construction by Roger Flanagan
By Roger Flanagan
Entire lifestyles appraisal includes a evaluation not only of the capital expenses of a venture, but in addition the operating and upkeep expenses and is more and more being required by way of consumers looking greatest worth for funds. This new ebook presents an creation to the topic, discusses concerns resembling funding appraisal and existence expectancy of parts, and indicates via case experiences how you can perform a complete lifestyles appraisal.
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Additional info for Whole Life Appraisal: for Construction
Judgement, skill and knowledge are required to ensure realistic forecasts are made. For a whole life approach to be effective in reducing the running costs of existing facilities it is necessary that these running costs are monitored. In other words, whole life cost should be seen also as an essential element of overall cost management. It can identify in detail one major area in which an organisation incurs costs – the operation of assets – and point to ways in which potential cost savings might be achieved.
The owner-occupier has similar needs. For example, the retail store owner might invest to increase the sales area or to create a new image for the 32 An Overview of WLA company. The question of the client image may be important as many clients are prepared to pay for prestige value. Public sector clients usually build to satisfy a public need, for example, for housing, sports complexes, schools, fire stations, roads, prisons. Developers and financial institutions, on the other hand, invest primarily for the capital appreciation potential and the income cash flow.
There will continue to be many cases in which such an option is also the least total cost option. 3 The changing balance between fixed and variable costs for various options. appraisal ensures that selection is made for the correct reasons after proper comparison. Second, even everyday economic decisions such as the choice between double or triple glazing, or glazing with a specially coated or manufactured glass, may often have to be made by intuitive judgement. Any estimate about the future costs involves uncertainty and this will be discussed later.