What is Life Cycle Cost Analysis?

• A. An economic assessment considering initial construction costs
• B. A method to calculate energy use intensity only
• C. A method to evaluate lifecycle costs including initial, operating, maintenance, and disposal costs
• D. A qualitative rating of sustainability

Answer: (C)

Life Cycle Cost Analysis looks at the total cost of owning and operating a building over its entire life. It goes beyond the initial construction price to include ongoing operating costs like energy and water use, routine maintenance, repairs and replacements, and eventual disposal or decommissioning. By estimating these cash flows over a chosen time horizon and often discounting them to present value, you can compare different design or material choices on a fair basis and identify options that save money in the long run. This makes it the best choice because it explicitly accounts for all stages of costs from start to end of life, rather than focusing only on upfront costs, just energy use, or a qualitative sustainability rating.