Life Cycle Cost Analysis – Making a Case for Green Building and Efficiency Retrofits

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Steven Forrester?s small Colorado engineering firm is four years old. While he started DMA Engineering during tough economic times, he is holding his own because of clients like the city of Louisville, where his firm recently designed a solar thermal lap pool for a city recreation center.

Source: blog.rmi.org

>”“When we present a design, 99% of the time, we do LCCA, “ says Forrester. “It shows we bring added value.”

In the case of the solar-heated pool, the facilities manager had to go to City Council members for approval. The LCCA demonstrated the financial incentive to do the project. Forrester uses LCCA mainly to compare different types of systems over the lifetime of the building. The price of new equipment is an easily comprehensible but incomplete cost. LCCA also accounts for future costs. LCCA adds in maintenance, energy use, tax incentives or rebates, and any salvage value. It also can…

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