Life-cycle cost analysis (LCCA)

Comparison of alternatives using costs over a defined period, rather than initial purchase or construction cost alone.

Why it matters

Include the stated assumptions for maintenance, replacement, energy, discounting, and residual value. The result is sensitive to both cost inputs and operating conditions.

In practice

A project example

A more expensive system is evaluated against lower anticipated energy and maintenance costs over the study period.

General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.