Lifecycle costing is being billed by research analyst Frost & Sullivan as the next big thing in cost-validating technology purchases for commercial buildings. Lifecycle costing, or LCC, coincides nicely with the trend toward intelligent buildings, so Frost & Sullivan have teamed up with the Continental Automated Buildings Association to assess current LCC tools and techniques.
“We recognize the challenges our customers have in balancing the demands of meeting first-cost requirements for the original system investment, versus longer-term impact of the system usage throughout the life of the building,” said Peter M. Seyfert, marketing director of Siemens Industry Inc. “We are excited to be hands-on in this landmark CABA and Frost & Sullivan [lifecycle] research.”
CABA and the analyst firm are reportedly halfway through their research project. Initial findings, according to the organizations, show that building equipment purchases are “most often based on the lowest costs and relationships with past vendors.”
Currently, LCC is being deployed either slightly or irregularly during the design process with intelligent-building projects. As a result, buildings don’t get the best-suited technology that LCC may reveal.
LCC, they stress, optimizes such investments by looking into energy efficiencies and maintenance of the assets. They expect LCC to become a key purchasing factor in the future.
The research is being back by a hearty list of CABA members:
- Cadillac Fairview Corporation Limited
- Consolidated Edison Co. of New York, Inc.
- CSA Group
- Distech Controls
- Hydro One Networks
- International Facility Management Association (IFMA)
- Johnson Controls, Inc.
- Microsoft Corporation
- National Institute of Building Sciences (NIBS)/buildingSMART Alliance
- PCN Technology, Inc.
- Public Works and Government Services Canada
- Siemens Industry, Inc.
- The Siemon Company
- Trane, a brand of Ingersoll Rand
The CABA/Frost & Sullivan project will determine what will be needed in education, training, and collaborative efforts to make LCC and related methods a universal tool among building operators.
Honeywell, in a statement, said, “We look forward to the outcomes of this research, and feel this represents an important and timely analysis that reflects the importance of lifecycle costing within our industry.”
Dedicated to research and development of intelligent buildings, CABA counts 300 private and public technology organizations worldwide as members.