APPLICATION OF COST SIGNIFICANT ITEMS TOWARDS IMPROVING ESTIMATION FOR LIFE CYCLE COSTING OF BUILDING PROJECTS

Construction projects have numerous variable factors affecting the value of life cycle-cost (LCC) and there is interaction between these factors, leading to complicated process. Therefore the current LCC models suffer from the absence of a standardized and a simple methodology of both the collection data and estimation LCC. Identification of the significant cost factors affecting the output of LCC is important step before embarking upon the collection of progress information. Furthermore, components of construction differ in their cost and time-importance, and thus management effort must be equivalently distributed. The concept of cost significant items (CSIs) is the best method to simplify estimation methodology as well as the collection data of construction projects. In general, The CSIs concept aims to determine the small number of items which represent a constant percentage of the LCC of construction projects. Therefore, this paper aims to present the explanation of each stage of LCC, the current classifications of asset components, the CSIs concept and previous practice of the significant cost items on the construction sector.