Recruiter's Glossary

Examples: Traffic Impact • Public-Private Partnership • Due Diligence

Life Cycle Cost

Term from Infrastructure Development industry explained for recruiters

Life Cycle Cost (also known as LCC) is a way of calculating the total cost of a building, bridge, road, or any infrastructure project over its entire lifespan - not just what it costs to build it. It's like considering the total cost of owning a car, including not just the purchase price, but also fuel, maintenance, repairs, and eventual replacement. Project managers and cost analysts use this approach to make smarter decisions about design, materials, and construction methods by looking at long-term expenses, not just upfront costs.

Examples in Resumes

Developed Life Cycle Cost analysis for major highway infrastructure projects, resulting in 30% long-term savings

Led team in creating Life Cycle Cost Analysis models for municipal building projects

Implemented LCC optimization strategies that reduced 20-year operational costs by $2.5M

Typical job title: "Cost Analysts"

Also try searching for:

Cost Engineer Project Cost Manager Infrastructure Cost Analyst Construction Cost Estimator Value Engineer Asset Management Specialist Infrastructure Planning Specialist

Where to Find Cost Analysts

Professional Organizations

Online Communities

Job Resources

Example Interview Questions

Senior Level Questions

Q: Can you explain how you would approach creating a Life Cycle Cost analysis for a major infrastructure project?

Expected Answer: A strong answer should include mention of gathering initial construction costs, maintenance costs, operational costs, and end-of-life costs. They should discuss involving various stakeholders, using historical data, and considering factors like inflation and discount rates.

Q: How do you handle uncertainty in long-term cost predictions?

Expected Answer: Look for answers that discuss risk analysis methods, sensitivity analysis, and using ranges rather than exact figures. They should mention ways to validate assumptions and update predictions as new information becomes available.

Mid Level Questions

Q: What factors do you consider when calculating maintenance costs in an LCC analysis?

Expected Answer: Should mention regular maintenance schedules, replacement of parts, labor costs, equipment costs, and how different material choices affect maintenance needs. Should also discuss how to find reliable data sources for these estimates.

Q: How do you compare different design options using Life Cycle Cost analysis?

Expected Answer: Should explain how to create comparable scenarios, normalize costs over time, and present options in a way that helps decision-makers understand trade-offs between initial and long-term costs.

Junior Level Questions

Q: What are the main components of a Life Cycle Cost calculation?

Expected Answer: Should identify initial capital costs, operational costs, maintenance costs, and disposal/replacement costs as the main components. Basic understanding of how these costs occur over time.

Q: Why is Life Cycle Cost analysis important in infrastructure projects?

Expected Answer: Should explain that it helps make better long-term decisions by considering all costs over time, not just initial construction costs. May give simple examples like choosing between different materials or designs.