Question

Whole Life Costing (WLC) is an evaluation process that needs to be undertaking during the design phase. However implementation of (WLC) often faces two major problems. Explain these two problems and how they have been addressed.

Please don’t write for hand because i can’t read your handstyle and thank you :)

Answer 1

The two major problem of WLC are INDUSTRIAL BARRIER and CLIENT BARRIER

INDUSTRIAL BARRIER

The capital cost of construction is almost separated from running cost. It is normal practice to accept the cheapest initial cost and the handover the building to other to maintain. In additional there is no clear definition of the buyer, seller, and their responsibilities toward the operating and maintenance cost. Furthermore, there is lack of motivation in cost optimisation because the design and cost estimating fee are usually a percentage of the total project cost. However the expansion of project delivery systems such as private finance initiative and build operate and transfer seems to overcome these obstacles.

CLIENT BARRIER

Bull (1993) pointed out that there is also a lack of understanding on the part of the client. This may increase the possibility of subjective decision making. In addition, there is usually multiple aspect of needs desired by clients. Most of these aspects cannot be assessed in a strict WLC framework. This is mainly because either the are in conflict with the main WLC objectives or because the are mostly 'non financial'. Some of these factors are even tangible such as aesthetics. In many cases, these intangible is also in conflict with results of WLC.