Lifecycle Costing
Lifecycle Costing is a method used in facilities management to calculate the total cost of owning and maintaining a building or asset over its entire lifespan. It goes beyond just looking at the initial purchase price and considers all costs like maintenance, repairs, energy use, and eventual replacement. Think of it like planning the total cost of owning a car - not just the purchase price, but also gas, insurance, repairs, and resale value. Facilities managers use this approach to make smarter decisions about building materials, equipment, and systems by understanding their true long-term costs. Other names for this include "Total Cost of Ownership" or "Whole-life Costing."
Examples in Resumes
Implemented Lifecycle Costing analysis for $10M building renovation project, resulting in 25% long-term savings
Developed Life Cycle Costing strategies for facility equipment selection and maintenance planning
Led team in creating Life-cycle Cost assessments for multiple campus buildings
Applied Whole-life Costing methods to optimize building systems selection
Typical job title: "Facilities Managers"
Also try searching for:
Where to Find Facilities Managers
Professional Organizations
Online Communities
Job Resources
Example Interview Questions
Senior Level Questions
Q: How would you implement a lifecycle costing strategy for a large facility?
Expected Answer: Should discuss creating comprehensive cost models, considering all aspects from initial purchase to disposal, involving stakeholders, and using data to make strategic decisions. Should mention experience with multiple building systems and long-term planning.
Q: Can you explain how you've used lifecycle costing to justify investment in sustainable building systems?
Expected Answer: Should provide examples of comparing initial costs versus long-term savings, energy efficiency calculations, and demonstrating return on investment through comprehensive analysis.
Mid Level Questions
Q: What factors do you consider when performing a lifecycle cost analysis?
Expected Answer: Should mention initial costs, maintenance costs, operational costs, energy costs, replacement costs, and disposal costs. Should demonstrate understanding of how these factors interact over time.
Q: How do you track and analyze lifecycle costs for building equipment?
Expected Answer: Should discuss using maintenance records, energy consumption data, repair histories, and cost tracking systems to monitor and analyze equipment performance and costs over time.
Junior Level Questions
Q: What is lifecycle costing and why is it important in facilities management?
Expected Answer: Should explain that it's a method to calculate total costs over an asset's life, not just purchase price. Should understand basic concepts of long-term cost planning.
Q: Can you explain the difference between initial costs and lifecycle costs?
Expected Answer: Should explain that initial costs are just purchase price, while lifecycle costs include maintenance, operations, energy, repairs, and eventual replacement over the entire life of an asset.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of cost analysis
- Ability to collect and organize cost data
- Knowledge of building systems basics
- Understanding of maintenance schedules
Mid (2-5 years)
- Detailed cost analysis and reporting
- Equipment lifecycle planning
- Budget management
- Maintenance program development
Senior (5+ years)
- Strategic lifecycle cost planning
- Capital project management
- Team leadership and training
- Complex financial analysis
Red Flags to Watch For
- No understanding of basic maintenance and operations costs
- Unable to demonstrate experience with cost analysis
- Lack of knowledge about building systems and equipment
- No experience with facilities management software or tools
Related Terms
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