Life Cycle Calculations and Procurement
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Chalmers University of Technology Life Cycle Calculations and Procurement Göran Lindahl Chalmers University of Technology Presentation International FM & REM Congress 2010 Chalmers University of Technology Agenda Presentation The study of LCC and procurement LCC as a mangement concept Issues in the city of Göteborg Further issues raised by the study Q&A Chalmers University of Technology The presenter Göran Lindahl PhD, MSc Architecture, Architect MSA Associate professor, Construction Management, Chalmers University of Technology Project Manager, the Premises Office, City of Göteborg Chalmers University of Technology What I do 1 Chalmers University of Technology Research Project Management, clients perspective FM, Usability LCC, decision making Teaching PM and FM Masters program: Design and Construction Project Management Chalmers University of Technology What I do 2 The Premises Office,, City y of Göteborgg R&D project Database for guidelines and regulations for construction for the City of Göteborg LCC Construction projects p j Pre-school, 600m2 Refurbishment of school, 4000m2 Chalmers University of Technology Life Cycle Lif C l Calculations C l l ti and Procurement Chalmers University of Technology Background Society’s change towards a more sustainable approach h Use of resources in construction affects costs Need of re-thinking (as always…) Chalmers University of Technology Background to study To much attention on construction cost and not LCC There is research, but no tools for procurement Chalmers University of Technology But, there are already metods? Procurement models Lowest price LOU, public procurement LCC tools B Basically i ll versions i off NPV Standard metods concerning energy related installations Chalmers University of Technology Results Procurement based on comparative alternatives in tenders Price based on yearly costs not what it cost to build Maintenance costs part of the tender Broader application of performance contracting Clients that shall maintain themselves are the only ones with strong drivers Chalmers University of Technology Dilemmas discovered LCC total How do you calculate quality of work in LCC How do you calculate assembled parts, here yyou have to mix LCA and LCC Chalmers University of Technology .. and Life Cycle Consideration is a first step for many Chalmers University of Technology LCC as a management conceptt for f sustainable t i bl renovation of buildings - Practice and decision making proceses Chalmers University of Technology Background Lack of demand of sustainable buildingg Organizational and behavioral measures have been suggested Stakeholder influence (e.g. Gluch 2009) Partnering (e.g. Horsley et.al 2003) Management practice, praxis and social interaction is poorly understood Chalmers University of Technology Research question To investigate how the business concept of LCC is adopted and acted upon by decision makers within the building owners, clients and developer organizations. Concerns those who are in a position to act for an energy efficient and sustainable development of current building stock as well as coming projects Chalmers University of Technology Results? Decision makers know to little and have other perspectives than the sector, at the same time they set the objectives for it Will know more in 2012… Chalmers University of Technology Issues in the city of Göteborg Chalmers University of Technology Background To define basis for decison regarding g g building stock from the 60-ies and 70-ies Maintenance costs are increasing, what would be the smart thing to do? Refurbish or tear down? Chalmers University of Technology Issues addressed Shall we refurbish 30 year old buidings and extend their life by 20 years or shall we build new ones that last for 40? The cost is 700 million SEK (politically impossible) If we refurbish we do not meet the city’s policies regarding energy use Chalmers University of Technology Results? It is better to build new Maintenance costs are higher than energy costs if we should maintain the buildings But.. Building value or use value The cost is different for different actors, the internal rent model has to be renewed Ongoing work Chalmers University of Technology F ther Fur th i issues… Chalmers University of Technology Further issues Value management, management use value or building value Location bias, concern banks and insurance companies How do we relate NOI and LCC,, new business models Will green building be enough? Chalmers University of Technology Th Thanks k for f li t listening i Contact: Göran Lindahl g o r a n . l i n d a h l @ ch a l m e r s . s e
