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Transcript of Life Cycle Costing of a Building Adapting to ASHRAE Standards
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
P R O J E C T S E M I N A R 1
PRESENTED BY-
DIVISHA JINDAL BEM/471 SCHOOL OF PLANNING & ARCHITECTURE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Chapter: 1 INTRODUCTION
Introduction
Life Cycle of a building
Life Cycle Costing
Energy Efficiency
Energy Efficiency in
Buildings
ASHRAE
1.2 Need of the Study
1.3 Aim
1.4 Objectives
1.5 Scope of work
1.6 Methodology
……………………………………………
Chapter: 2 LITERATURE
REVIEW
……………………………………………
Chapter: 3 ASHRAE
STANDARDS
3.1 Introduction
3.2 ASHRAE 90.1 - 2007
3.2.1 Purpose
3.2.2 Scope
3.3. Integrated Design Process
for Achieving Energy Savings
3.4 Introduction to case study
3.4.1 Introduction
3.4.2 Climatic Data CONTENTS
Contents 3.5 Guidelines by ASHRAE AND ECBC
3.5.1 Building Envelope Requirements for
Climate Zone – 1, Composite Climate
3.5.1.1 Roofs
3.5.1.2 Opaque Walls
3.5.1.3 Floors
3.5.1.4 Opaque Doors
3.5.1.5 Vertical Glazing
3.5.2 Heating, Ventilating and Air
Conditioning Requirements for Climate
Zone 1
3.5.3 Lighting Requirements for
Climate Zone 1
3.6 Energy Efficient Design Practices
3.6.1 Building Envelope
3.6.2 Lighting
3.6.2.1 Day lighting
3.6.2.2 Interior Electric Lighting
3.6.2.3 Exterior Lighting
3.6.3 HVAC
……………………………………………………
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Chapter: 4 PROCEDURES FOR LCC &
LCA
4.1 Introduction
4.1.1 General definitions
4.2 Fundamental study of LCC
4.2.1 Historical development of
LCC
4.2.2 LCC – as a tool for Value
engineering
4.2.3 Recent trends and their LCC
concerns
4.2.4 Purpose of Life Cycle Cost
Analysis (LCCA)
4.2.5 Effectiveness of LCC in
various stages of a project
4.2.6 Applications and limitations of
LCC
4.2.7 Comparison with other
economic evaluation tools
4.3 Life Cycle Cost Analysis Methodology
4.3.1 Steps in Life Cycle Cost
Analysis
4.3.2 Type of costs included in LCC
4.3.3 Methods of Calculation of LCC CONTENTS
4.3.4 Parameters for Present
Worth Method
4.4 Uncertainty Assessment in LCCA
4.4.1 Sensitivity Analysis
4.4.2 Break- even Analysis
4.5 Detailed LCCA procedure
4.6 Fundamental study of Life Cycle
Assessment
4.6.1 Introduction
4.6.2 Fundamentals of LCA
4.6.3 Historical Background of
LCA
4.6.4 Parameters for LCA
4.7 LCA generic procedure
4.8 Conclusion
…………………………………………………
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Chapter: 5 OVERVIEW OF CODES AND
STANDARDS FOR LCC and LCA
5.1 Introduction
5.2 Life cycle costing
5.3.1 IS 13174 (part 1): 1991
5.3.2 IS 13174 (part 2): 1991
5.3.3 ASTM E917-99
5.3.4 ASTM E2150-02
5.3.5 Code of Federal Regulations
5.3 Life cycle assessment
5.3.1 ISO 14041: 1998(E)
5.3.2 ISO 14043: 2000(E)
5.3.3 ASTM E1991-98
5.4 Conclusion
………………………………………………………
CONTENTS
Chapter: 6 CASE STUDY &
IDENTIFICATION OF ALTERNATIVE
FOR LCCA
6.1 Introduction
6.2 Review of Life Cycle Cost Calculation
for a sustainable building
6.3 Introduction to case study – MTNL
Office Building, Sector-6, Dwarka, New
Delhi
6.4 Analysis of Building Envelope, HVAC
and lighting system in case study
6.5 List of various building materials and
technologies – conventional & energy-
efficient
6.6 Inventory of specifications and systems
in case example and their alternatives
6.7 Conclusion
…………………………………………………
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Chapter: 7 VALIDATION OF ASHRAE
STANDARD COMPLIANT BUILDING
PROPOSAL
7.1 Introduction
7.2 LCC Calculation Spreadsheets
7.2.1 Building Envelope
7.2.2 HVAC
7.2.3 Lighting
7.3 Payback calculation for the case example in
terms of building envelope, HVAC & lighting
7.4 Limitations of existing design
7.5 Advantages of ASHRAE compliant design
7.6 Statistical comparison of the existing design
and the ASHRAE compliant proposal
7.7 Conclusion from case study and LCC
calculations
………………………………………………………
CONTENTS
Chapter: 8 CONCLUSIONS AND
FUTURE SCOPE OF WORK
8.1 Conclusion
8.2. Recommendations
8.3. Future scope of study
…………………………………………………
List of References
…………………………………………………
Appendices
A. Definitions, Abbreviations and
Acronyms – from ASHRAE 90.1- 2007
B. Codes for LCC
C. Codes for LCA
D. Interest Table for Life Cycle Costing –
at 8% discount rate
………………………………………………
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
1. INTRODUCTION
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Buildings
Transportation
Industries
1. INTRODUCTION
The construction sector alone counts for nearly 50% towards the
country‟s economics as well as energy consumption..
Buildings and building related activity:
• Largest consumer of resources whether it is material, capital or energy
• Causes the largest amount of environmental degradation
• Largest progenitors of waste output i.e. construction debris etc.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
1. INTRODUCTION
Source: www.emsd.gov.hk
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
In the past, economic assessment of alternative designs, constructions, or otherinvestments has been based on initial (first) cost which ignores the total cost incurred forthe investment throughout its lifetime.The concept of life cycle costing provides an economic tool which takes into accounttotal costs for an investment during its life span.
1. INTRODUCTION
LIFE CYCLE COST
Life Cycle Cost is the total
cost of owning, operating,
maintaining and (eventually)
disposing off any product,
asset, building, etc. over a
given study period, with all
costs adjusted (discounted)
to reflect the time value of
money.
LIFE CYCLE COSTING
(LCC)
It is a comprehensive
method to evaluate the
overall economic
performance of investments
in building and building
systems.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
1. INTRODUCTION
Various codes and standards are available nowadays, that serve as reference benchmarkto achieve at least a certain percentage of energy savings consumed in a building, thateventually aid in reducing the life cycle cost of the building; such as :• ‘Energy Conservation Building Code – 2007’ by Bureau of Energy Efficiency• ASHRAE Energy Standards 62.1, 62.2, 90.1, 90.2, 189.1• ‘Handbook on Functional Requirements of Buildings’ by Bureau of Indian Standards
ASHRAE was founded in 1894 at a
meeting of engineers in New York City.
The American Society of Heating,
Refrigerating and Air Conditioning
Engineers is an international technical
society organized into Regions,
Chapters and Student Branches; it
allows exchange of heating, ventilation,
air-conditioning, and refrigeration
(HVAC&R) knowledge & experiences for
the benefit of field's practitioners and
public.
ASHRAE also publishes a well
recognized series of standards and
guidelines relating to HVAC systems
and issues. In most of the proposed
Green Buildings, energy efficiency
parameters are compared with ASHRAE
standards as a base case.
ASHRAE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
1. INTRODUCTION
Firstly, the most criticized issue about constructing environment-friendly
buildings is the high amount of cost involved in their design and construction
processes. The stigma is between the knowledge of up-front cost vs. life-cycle
cost.
Secondly, although the concept of LCC is well developed, very little
application is made in the construction sector. This is mainly due to the
technique being a mathematical computation with the help of some economic
formula, without considering the overall value of any asset. Value includes the
costs, but studies indicate that many times maintenance and operating cost
of assets are much higher than the initial costs. Thus, the decisions made on
initial cost considerations are many times misleading.
Need of Study
Aim
To evaluate the life cycle cost for an existing conventional building.
Identification of an alternative proposal complying to ASHRAE 90.1-2007
Comparison of life cycle costs of the existing design and ASHRAE compliant
proposal, over an economic life period.
• The specific aim is to verify if energy- efficient standards and technologies
contribute to savings in the life cycle cost of a building.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
• Understanding the concept of life cycle of a building, the various stages
involved.
• To illustrate generic procedures for life cycle assessment (LCA) and life
cycle costing (LCC).
• To illustrate various tools and methods for life cycle costing analysis.
• To study ASHRAE standards and apply these in a case study building. Thus,
provide an alternative building design that complies with these standards.
•To compare the life cycle costs of the existing building and the proposed
alternative.
1. INTRODUCTION
Scope of Work
• Study of life cycle of a building – understanding of LCC and LCA.
• Illustration of the various tools and techniques for calculating LCC and LCA.
• Studying the ASHRAE standards.
• Detailed analysis of a case example and application of the ASHRAE
standards to identify an energy- efficient alternative.
• Calculation and comparison of the LCC of the existing and the alternative
ASHRAE compliant proposal.
Objectives
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
1. INTRODUCTION
Methodology
1. Introduction
2. Literature Study
4. Procedures for LCC
3. ASHRAE Standards
8. Conclusion & Future Scope
1
2
3
4
5. Overview of Codes & Standards for LCC
6.Case Study & Identification of Alternative
7. Validation of ASHRAE compliant proposal
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
2. LITERATURE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
• UNPUBLISHED WORKS
• PUBLISHED WORKS
2. LITERATURE STUDY
Literature Study
1. Seminar on “Life Cycle Costing for Sustainable Buildings” Dec.‟09 by Rajesh Kumar
Mani
2. Thesis on “Framework for selection of appropriate building envelope material based
on energy performance and economic evaluation” – Dec. 2009 by Thambiarajan G.
3. Seminar on “Life Cycle Assessment of Green Building Materials and Technologies” –
December 2008 by Prajakta Bakshi
4. Seminar on “Life Cycle Cost Analysis and Applications” – Dec.‟07 by Vanaja
Srivastava
5. Seminar on “Life Cycle Assessment of Green Building Materials from Environmental
Considerations” – May 2002 by Jyotisubray Hegde
6. Seminar on “Life Cycle Costing for HVAC Services” by Hemant Kaklij
1. Life Cycle Costing for Design Professionals” – Second Edition by Dr. Stephen J. Kirk &
Alphonse J. Dell‟Isola
2. “Life Cycle Cost Data ” by Dr. Stephen J. Kirk & Alphonse J. Dell‟Isola
3. “Life Cycle Cost Analysis Handbook ” – First Edition by Deptt. of Education & Early
Development, Alaska Publications
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
• RESEARCH WORKS
• CODES & STANDARDS
• WEBSITES
www.wbdg.org www.buildnova.com
www.greencampusharvard.edu www.greenbuilding.com
www.buildlca.edu.au www.wiley.com
www.Nibs.org www.archenergy.com
www.ashrae.org
www.usgbc.org
Literature Study
1. IS 13174 (Part 1 & 2): LCC Terminologies & Methodologies
2. ASTM E917-99: Standard Practice for Measuring Life Cycle Costs of Buildings and
Building Systems
3. ASHRAE Energy Standards 90.1-2007
4. Advanced Energy Design Guide for Small Office Buildings – Achieving 30% energy
savings over ANSI / ASHRAE / IESNA Standard 90.1 - 1999
1. RICS Research - “Life Cycle Costing of Sustainable Design” – Feb.‟09 by Professor
John Kelly, Dr. Kirsty Hunter
2. “LCA tools, data & application in the building & construction industry” – Jan.‟01 by
Centre of Design at RMIT University
2. LITERATURE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE
STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Purpose
The purpose of this standard is to provide minimum requirements for the
energy- efficient design of buildings except low- rise residential buildings.
3. ASHRAE STANDARDS
Scope
This standard provides:
a) Minimum energy- efficient requirements for the design and construction
of:
b) Criteria for determining compliance with these requirements.
ASHRAE 90.1 - 2007
This particular standard provides guidelines to determine the orientation
and geometric shape of building on site, number of storey, thermal comfort
parameters; selection of building envelope, heating, ventilation, air-
conditioning and refrigeration (HVAC & R) systems, minimizing electrical
loads and energy cost budget methods.
1. New buildings and their systems
2. New portions of buildings and their systems
3. New systems and equipments in existing buildings
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
The provisions of this standard apply to:
a) The envelope of buildings, provided that the enclosed spaces are
b) The following systems and equipment used in conjunction with buildings:
1. Heated by a heating system whose output capacity is greater than
or equal to 3.4 Btu/h. ft2
2. Cooled by a cooling system whose sensible output capacity is
greater than or equal to 5 Btu/ h.ft2
1. Heating, ventilating, and air conditioning
2. Service water heating
3. Electric power distribution and metering provisions,
4. Electric motors and belt drives, and
5. lighting
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Life cycle energy = Operational energy + Embodied energy
3. ASHRAE STANDARDS
The ASHRAE standards provides guidelines that would assist the user in
achieving energy efficiency credits for LEED or other building energy rating
systems, by making improvements in the following technical areas:
Building Envelope
• Roofs
• Walls
• Floors
• Slabs
• Doors
• Vertical Glazing
Lighting
• Day lighting
• Interior Electric Lighting
• Controls
• Exterior Façade Lighting
• Parking Lot Lighting
• Plug Loads
HVAC Equipment and Systems
• Cooling Equipment Efficiencies
• Heating Equipment Efficiencies
• Supply Fans
• Ventilation Control
• Ducts
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INTRODUCTION
MTNL Office Building, Sector 6, Dwarka, New Delhi
3. ASHRAE STANDARDS
• Client & Project Manager MTNL
• Architect / Consultants Design Well India Pvt Ltd
• Contractors Ralon Associates
SCOPE:
• The site consists of four blocks namely – Administration block, Technical
block, Substation/ Service block and a temporary R.L.U. ( Remote Line Unit).
• The Administration block i.e. the main office building will be studied for the
purpose of the seminar.
• The MTNL building has very few measures taken for energy- efficiency and
thus it has immense scope for application of various energy- efficient
practices to produce alternative solutions, which can be then compared on
the basis of their life cycle costs.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
In accordance with ASHRAE 90.1-2007, Table B-3; New Delhi, India falls
under climate zone 1. Therefore, the various requirements and U-
factors, R-factors etc. shall be studied in terms of climate zone 1 only.
3. ASHRAE STANDARDS
Climate Study
Source: www. bbc.co.uk
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Climate Zone Map of India:
New Delhi falls under the
„composite climate‟ zone
Latitude 28° 35‟ N
Longitude 77° 12 E
3. ASHRAE STANDARDS
Climate Study
Source: ECBC, 2006
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Building Envelope Requirements for Climate Zone 1
*ECBC standards are basically derived from the ASHRAE standards
according to the Indian climatic conditions.
**1 W/m²-°C = 0.176 Btu/h.ft².°F
1 m²-°C/W = 5.678 h.ft².°F/Btu
1. ROOFS
ASHRAE : Maximum U-factor of the overall assembly: U-0.063 Btu/h.ft².°F
Minimum R-value of insulation alone: R- 15.0 c.i. h.ft².°F/Btu
Minimum Surface Reflectance / emittance: 0.65 / 0.86
ECBC* : Roof assembly– Day time use buildings– Composite climate
Maximum U-factor of the overall assembly: U-0.409 W/m²-°C
i.e. U-0.072 Btu/h.ft².°F **
Minimum R-value of insulation alone: R- 2.1 m²-°C/W
i.e. R- 11.92 h.ft².°F/Btu
Minimum Surface Reflectance / emittance: 0.70 / 0.75
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
HVAC Requirements for Climate Zone 1
ASHRAE: Minimum equipment efficiencies for air conditioning
( water chilling packages)
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
HVAC Requirements for Climate Zone 1
ECBC: Minimum equipment efficiencies for air conditioning
( water chilling packages)
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Interior Lighting Requirements for Climate Zone 1
ASHRAE:
Ductwork Insulation
ECBC:
Luminaries in day lighted areas greater than 250 ft2
shall be
equipped with either a manual or automatic control device that is
capable of reducing the light output of the luminaries in the day
lighted areas by at least 50%.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Exterior Lighting Requirements for Climate Zone 1
ASHRAE:
ECBC:
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
DESIGN CRITERIA FOR „COMPOSITE CLIMATE‟ BY ECBC
Thermal Requirements Physical Manifestation
Reduce Heat Gain in Summer and Reduce Heat Loss in Winter
Decreased exposed surface
area
Orientation and shape of building. Use of trees as wind
barriers
Increase thermal resistance Roof insulation and wall insulation
Increase thermal capacity
(time Lag)
Thicker walls
Increase buffer spaces Air locks/ Balconies
Decrease air exchange rate Weather stripping
Increase shading Walls, glass surfaces protected by overhangs, fins &
trees
Increase surface reflectivity Pale color, glazed china mosaic tiles, etc.
Reduce solar heat gain Use glazing with lower SHGC and provide shading for
windows. Minimize glazing in East and West
Promote heat loss in Summer/ Monsoon
Increase air exchange rate
(Ventilation)
Courtyards/ wind towers/ arrangement of openings
Increase humidity levels in dry
summer
Trees and water ponds for evaporative cooling
Decrease humidity in monsoon Dehumidifiers/ Dessicant cooling
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For Building Envelope: Source: Advanced Energy Design Guide by ASHRAE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For Building Envelope: Source: Advanced Energy Design Guide by ASHRAE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For Building Envelope: Source: Advanced Energy Design Guide by ASHRAE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
1. DAY LIGHTING
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
2. INTERIOR ELECTRIC LIGHTING
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
2. INTERIOR ELECTRIC LIGHTING
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
2. INTERIOR ELECTRIC LIGHTING
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
2. INTERIOR ELECTRIC LIGHTING
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
3. EXTERIOR ELECTRIC LIGHTING
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For HVAC: Source: Advanced Energy Design Guide by ASHRAE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
3. ASHRAE STANDARDS
Energy Efficient Design Practices
For HVAC: Source: Advanced Energy Design Guide by ASHRAE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR
LCCA
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR LCC & LCA
Life Cycle Cost Analysis (LCCA)
Method for assessing the total cost of facility ownership.
All costs of acquiring, owning, operating, maintaining and disposing of a
building or building system.
Helps us choose, out of available alternatives based on life cycle
cost, the most effective option on the basis of total life cycle costs incurred
In order to select the one that maximizes net savings.
Should be performed early in the design process.
The Department of Natural Resources, Iowa, USA defines life cycle costing
as:
“Life cycle cost analysis (LCCA) is an economic method used to evaluate building
design alternatives with different levels of energy efficiency. It is a method that
can be applied to any capital investment decision in which higher initial costs
are exchanged for reduced future operating costs. The mutually exclusive design
alternative with the lowest life cycle cost is the most cost-effective. “
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR LCC & LCA
Fundamentals of LCCA
LCC is calculated as NPV i.e. Net Present Value of the accumulated future
costs ( C) over a certain time period (t), e.g. 30 years (N), at an agreed
discount rate (s), say 6% p.a. (r), dependent on prevailing interest and
inflation rates.
Various costs included in LCCA are:
Initial Costs – Purchase, Acquisition, Construction Costs
Operation, Maintenance, and Repair Costs
Replacement Costs
Energy Costs
Residual Values – Resale or Salvage Values or Disposal Costs
Finance Charges – Loan Interest Payments
Non- monetary Benefits or Costs
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR LCC & LCA
Effectiveness of LCC in various stages
INCEPTION STAGE: To determine the most economic way of meeting a
need for additional building space.
PRELIMINARY DESIGN STAGE: To assist in developing the most
economic plan shape, structural form and internal layout.
DETAILED DESIGN STAGE: To identify the design
features, components and finishing that have the lowest total cost.
CONSTRUCTION STAGE: By incorporating this aspect in tender
documents for design and build proposals/ submitting alternative
methods, components and materials which if incorporated, result in overall
life cycle cost saving.
OCCUPATION PERIOD: To assist in formulating planned maintenance
and renewal policies.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR LCC & LCA
Applications of LCC:
To determine whether or not a given project is economically justified.
To determine the efficient scale of investment when several levels of
investment are under consideration.
Alternative designs or systems for a given purpose are compared on the
basis of their Life cycle costs.
If a number of non- mutually exclusive projects (for example, retrofitting
a high- efficiency heating system, a high- efficiency lighting system, and
new windows in an existing building) are being considered for a single
facility for which a single overall LCC can be evaluated, and a limited
budget is available to fund those projects, use LCC analysis to allocate that
budget efficiently. The combination of projects resulting in the overall LCC
for that facility, and whose overall funding requirement fits within the
budget constraint, is the most economic combination.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR LCC & LCA
Example showing advantage of LCC:
Source:
www.insideoutarch.com
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR LCC & LCA
Steps in Life Cycle Cost Analysis:
Select design alternatives to evaluate.
Compute the initial cost associated with each alternative.
Establish the economic life, in years, for each alternative.
Determine the future costs for each alternative.
Using the appropriate calculation method, compute the life-cycle cost of
each alternative over a period.
Analyze the results.
Methods of Calculation of LCC:
Present Worth Method
Annualized Cost Method
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR LCC & LCA
Present Worth Method:
Annualized Cost Method:
Cost Type Formula Cost ($) PW** PWA* N yrs. i % Present Worth ($)
Initial (I) ----------- 10,000 ---------- ------ -------- ----- 10,000
Energy (E) A x PWA 750 ---------- 8.514 20 10 6,386
Maintenance(M) A x PWA 500 ---------- 8.514 20 10 4,257
Replacement(R) F x PW 3,000 0.3855 ------- 10 10 1,157
Salvage (S) F x PW 2,000 0.1486 ------- 20 10 297
Total LCC I+E+M+R-S ---------- --------- ------- 20 10 21,503
*A = Uniform Sum of money in each period
**PWA = Present Worth Annuity
Cost Type Formula Cost ($) PW ($) PP* PWA N yrs. i % Annualized Worth ($)
Initial (I) P x PP 10,000 10,000 0.117 -------- 20 10 1,170
Energy (E) --------------- 750 750 ------- -------- -------- ----- 750
Maintenance(M) --------------- 500 500 ------- -------- -------- ----- 500
Replacement(R) P x PP 3,000 1,157 0.117 -------- 20 10 142
Salvage (S) P x PP 2,000 297 0.117 -------- 20 10 35
Annual Cost I+E+M+R-S --------- -------- ------- -------- -------- ----- 2,527
Total LCC P x PWA --------- 2,527 ------- 8.514 -------- ----- 21,515
*PP = Periodic Payment
Reference: Published work – Life Cycle Costing for Design Professionals by
Stephen J. Kirk and Alphonse J. Dell’Isola
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR LCC & LCA
Introduction to Life Cycle Assessment
Tool for the systematic evaluation of the environmental aspects of a
product or service system through all stages of its life cycle.
Aim is to reduce the ever-increasing consumption of production and
services.
Focused on the understanding about the driving forces behind
consumption-using them to inspire cost effective improvements, thereby
raising the quality of life and reducing the environmental impacts
The Code of Practice‟, SETAC, Brussels defines life cycle assessment as:
“Life Cycle Assessment is a process to evaluate the environmental burdens associated with
a product, process, or activity by identifying and quantifying energy and materials used
and wastes released to the environment; to assess the impact of those energy and materials
used and releases to the environment; and to identify and evaluate opportunities to affect
environmental improvements. The assessment includes the entire life cycle of the product,
process or activity, encompassing, extracting and processing raw materials;
manufacturing, transportation and distribution; use, re-use, maintenance; recycling, and
final disposal“
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
4. PROCEDURES FOR LCC & LCA
Parameters for Life Cycle Assessment
Material Usage
Embodied Energy
CO2 Emissions
Air Pollution
Solid Waste Generation
Water Pollution
Environmental Costs
Phases of Life
Cycle
Assessment
Source:
www.emsd.gov.hk
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
6. CASE STUDY &
ALTERNATIVES
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
MTNL Office Building, Sector 6, Dwarka, New Delhi
SITE PLAN AND VIEW
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
MTNL Office Building, Sector 6, Dwarka, New Delhi
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
MTNL Office Building, Sector 6, Dwarka, New Delhi
Area under consideration:
Administration block B+G+5
Technical block B+G
Total built up area 10,403.36 m2
(1,11,981 sq.ft.)
Site Layout Plan
Administration Block –
Ground Floor Plan
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE
PROPOSED WALL ASSEMBLY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
HVAC
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
HVAC
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
HVAC
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
LIGHTING
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
CASE STUDY
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
LIGHTING
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF
ASHRAE COMPLIANT
BUILDING PROPOSAL
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
Introduction
The intent of this chapter is to:
• Compute Life Cycle Cost of the case example as well as its alternative
proposal in terms of Building Envelope, HVAC and Lighting.
•This is done with an intent to finally analyze the more cost- effective design
option over an economic life period of 30 years, assuming the discount rate
to be 8%.
•The analysis also gives the cost savings during the life cycle period, usually
for the proposed solution as it is designed considering the energy efficiency
guidelines prescribed by ASHRAE.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
Format of LCC calculation spreadsheet
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
LIFE CYCLE COSTING ESTIMATE FOR BUILDING ENVELOPE –
MASONRY
In the alternative design proposal:
Initial cost is higher by a value of Rs. 15,84,357/-
Replacement Costs are higher by a value of Rs. 72,880/-
Annual Expenditures for Operation & Maintenance and Energy costs are
lesser by a value of Rs. 6,04,422/- which is the value for annual cost savings.
( Annual cost for original design is Rs.22,66,680/- and for alternative design
proposal is Rs. 16,62,258/-)
The total savings during the economic life period turn out to be Rs.
51,47,345/-.
Therefore, the payback period for the lighting system (= Extra capital cost/
Annual savings) = 1584357/604422 = 2.62 years
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
LIFE CYCLE COSTING ESTIMATE FOR BUILDING ENVELOPE –
FINISHES
In the alternative design proposal:
Initial cost is higher by a value of Rs. 10,62,069/-
Replacement Costs are higher by a value of Rs. 2,82,017/-
Annual Expenditures for Operation & Maintenance and Energy costs are
lesser by a value of Rs. 2,07,324/- which is the value for annual cost savings.
( Annual cost for original design is Rs.4,02,385/- and for alternative design
proposal is Rs. 1,95,061/-)
The total savings during the economic life period turn out to be Rs.
9,89,968/-.
Therefore, the payback period for the lighting system (= Extra capital cost/
Annual savings) = 1062069/207324 = 5.1 years
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
LIFE CYCLE COSTING ESTIMATE FOR BUILDING ENVELOPE –
ROOFING
In the alternative design proposal:
Initial cost is higher by a value of Rs. 1,95,889/-
Replacement Costs are higher by a value of Rs. 129251/-
Annual Expenditures for Operation & Maintenance and Energy costs are
lesser by a value of Rs. 64,005/- which is the value for annual cost savings. (
Annual cost for original design is Rs.166395/- and for alternative design
proposal is Rs. 1,02,390/-)
The total savings during the economic life period turn out to be Rs.
3,95,428/-.
Therefore, the payback period for the lighting system (= Extra capital cost/
Annual savings) = 195889/64005 = 3.1 years
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
LIFE CYCLE COSTING ESTIMATE FOR BUILDING ENVELOPE –
FLOORING
In the alternative design proposal:
Initial cost is higher by a value of Rs. 14,29,564/-
Replacement Costs are higher by a value of Rs. 6,16,213/-
Annual Expenditures for Operation & Maintenance and Energy costs are
lesser by a value of Rs. 6,80,711/- which is the value for annual cost savings.
( Annual cost for original design is Rs. 62,18,504/- and for alternative design
proposal is Rs. 55,37,793/-)
The total savings during the economic life period turn out to be Rs.
56,17,667/-.
Therefore, the payback period for the lighting system (= Extra capital cost/
Annual savings) = 1429564/680711 = 2.1 years
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
LIFE CYCLE COSTING ESTIMATE FOR BUILDING ENVELOPE –
FENESTRATIONS
In the alternative design proposal:
Initial cost is higher by a value of Rs. 42,39,408/-
Replacement Costs are higher by a value of Rs. 5,24,794/-
Annual Expenditures for Operation & Maintenance and Energy costs are
lesser by a value of Rs. 7,05,235/- which is the value for annual cost savings.
( Annual cost for original design is Rs. 16,05,042/- and for alternative design
proposal is Rs. 8,99,807/-)
The total savings during the economic life period turn out to be Rs.
31,75,333/-.
Therefore, the payback period for the lighting system (= Extra capital cost/
Annual savings) = 4239408/705235 = 6.0 years
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
PAYBACK CALCULATION FOR THE OVERALL BUILDING
ENVELOPE
In the alternative design proposal:
Initial cost is higher by a value of Rs. 85,11,287/-
Replacement Costs are higher by a value of Rs. 16,25,155/-
Annual Expenditures for Operation & Maintenance and Energy costs are
lesser by a value of Rs. 22,61,697/- which is the value for annual cost savings.
The total savings during the economic life period turn out to be Rs.
1,53,25,741/-.
Therefore, the payback period for the lighting system (= Extra capital cost/
Annual savings) = 8511287/2261697 = 3.8 years
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
LIFE CYCLE COSTING ESTIMATE FOR HVAC
In the alternative design proposal:
Initial cost is higher by a value of Rs. 44,65,350/-
Replacement Costs are lesser by a value of Rs. 2,40,104/-
Annual Expenditures for Operation & Maintenance and Energy costs are
lesser by a value of Rs. 4,75,691/- which is the value for annual cost savings.
( Annual cost for original design is Rs. 16,11,553/- and for alternative design
proposal is Rs. 11,35,862/-)
The total savings during the economic life period turn out to be Rs.
2,90,34,578/-.
Therefore, the payback period for the lighting system (= Extra capital cost/
1st
year savings) = 4465350/ 475691 = 9.4 years
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
LIFE CYCLE COSTING ESTIMATE FOR LIGHTING
In the alternative design proposal:
Initial cost is higher by a value of Rs. 68,309/-
Replacement Costs are higher by a value of Rs. 20,388/-
Annual Expenditures for Operation & Maintenance and Energy costs are
lesser by a value of Rs. 1,11,993/- which is the value for annual cost savings.
( Annual cost for original design is Rs. 4,45,028/- and for alternative design
proposal is Rs. 3,33,035/-; which is almost half the expenditure per year)
The total savings during the economic life period turn out to be Rs.
24,10,506/-.
Therefore, the payback period for the lighting system (= Extra capital cost/
1st
year savings) = 68309/111993 = 0.61 years
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
PAYBACK CALCULATION FOR THE CASE EXAMPLE IN TERMS
OF BUILDING ENVELOPE, HVAC & LIGHTING
In the alternative design proposal:
Initial cost is higher by a value of Rs. 1,30,44,946/-
Replacement Costs are higher by a value of Rs. 18,85,647/-
Annual Expenditures for Operation & Maintenance and Energy costs are
lesser by a value of Rs. 28,49,381/- which is the value for annual cost savings.
The total savings during the economic life period turn out to be Rs.
4,67,70,825/-.
Therefore, the payback period for the lighting system (= Extra capital cost/
Annual savings) = 13044946/2849381 = 4.5 years
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
STATISTICAL COMPARISON OF THE EXISTING DESIGN AND
ASHRAE- COMPLIANT PROPOSAL
For the 1st
year, the comparison
between the initial, replacement and
annual costs is as shown in the graph
below:
0
2
4
6
8
10
12
Existing Design Proposed Design
Annual Costs
Replacement Cost
Initial Cost
For the economic life period of 30
years, the comparison between the
initial, replacement and annual costs is
as shown in the graph below:
0
2
4
6
8
10
12
Existing Design Proposed Design
Annual Costs
Replacement Cost
Initial Cost
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
LIMITATIONS OF EXISTING DESIGN
The existing design is a Government building under consideration. As per
latest rules and regulations for new Government buildings, they should be
ECBC compliant. But still, most of the materials and systems used in the
building are of conventional type and less consideration to energy- efficiency
has been done.
Though the initial cost of the building is less, but it incurs higher energy
costs than could have been in an energy- efficient alternative.
Operation and maintenance costs are varying as they are nearly
equal, sometimes lesser but usually more than the ASHRAE compliant option.
As a result, the existing design has lesser initial and replacement
costs, but due to the annual expenditures on operation and maintenance
costs and energy costs, it turns out to be a more expensive option over the
economic life period.
Also, the energy consumption of the materials and technologies used in
the building such as embodied energy, operational energy etc. is high. So, it
is not so environment- friendly.
Though orientation of building is favorable, but absence of shading devices
leads to high thermal gain through unshielded fenestrations.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
ADVANTAGES OF ASHRAE COMPLIANT BUILDING PROPOSAL
The proposed alternative not only complies to ASHRAE standards, but
leads to 20% - 30% more energy savings than a baseline model.
Though the initial and hence the replacement costs are comparatively
higher in case of the proposed design, but due to energy savings, the
HVAC, electrical and lighting loads are lesser. Therefore, it leads to lesser
annual energy costs.
Operation and maintenance costs too are lesser especially in case of
HVAC and lighting.
Over a period of years, the accumulated annual energy and O&M costs will
eventually payback for the extra capital costs spent initially.
Also, the overall energy consumption of the proposed design is
comparatively much less, thus it is more environment- friendly.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
CONCLUSION FROM CASE STUDY
The above Life Cycle Cost Analysis proves that an energy- efficient design
proposal conforming to ASHRAE standards turns out to be cost- effective
during the economic life period of the building, though the initial investment
may be comparatively higher.
The payback periods too are not very long.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
FUTURE SCOPE
This study has been limited to life cycle cost analysis of the building
primarily in terms of building envelope, HVAC and lighting, as the basis of
comparison for the two designs is ASHRAE. The analysis may be further
carried out for other services such as
plumbing, mechanical, electrical, infrastructure works etc. Though ASHRAE
recommendations are not available for all, but more energy- efficient options
that are available may be explored and the comparison can be continued.
Also, the Life cycle Assessment i.e. quantification of energy getting
consumed at various stages of the building‟s life cycle from pre- construction
to post- occupancy stage, can be an attempt to evaluate.
Simultaneously, measures to reduce the respective consumption can be
explored.
The case study taken here is an office building. Similar attempts can be
done for various other type of buildings such as hospitals, apartments, hotels
etc. This may prove beneficial for presentation to professionals who have not
yet understood the economic benefits that can be achieved from energy-
efficient building designs.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL
FUTURE SCOPE
Various costs such as Downtime costs, cost of carbon, salvage costs etc.
have been included in the calculation datasheets but due to non- availability
of required data for their calculation/assumption, they could not be
evaluated. Attempts can be done to gather data for various type of costs
required for evaluation of LCC, or at least a complete proforma indicating
basis of assumption for value of various costs.
A list of various building materials and technologies can be identified – both
conventional and energy- efficient. Life cycle energy consumption and costs
associated with each can be evaluated. This will form a good reference for
future projects to identify better alternatives and concentrate more on the
calculation part rather than mere identification of alternatives.
The application of various software‟s in the LCA and LCC study can be
explored. There are quite a few available such as Bridge LCC etc. but the
limitation with them lies that they do not accept our currency INR.
Instead of analyzing and proposing any building on manual basis, attempt
can be made to do modelling it on softwares such as Ecotect etc. so that an
accurate energy consumption can be obtained.
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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