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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’
Contents 3.5 Guidelines by ASHRAE AND ECBC
Chapter: 1 INTRODUCTION
Introduction 3.5.1 Building Envelope Requirements for
Life Cycle of a building Climate Zone – 1, Composite Climate
Life Cycle Costing 3.5.1.1 Roofs
Energy Efficiency 3.5.1.2 Opaque Walls
Energy Efficiency in 3.5.1.3 Floors
Buildings 3.5.1.4 Opaque Doors
ASHRAE 3.5.1.5 Vertical Glazing
1.2 Need of the Study
1.3 Aim 3.5.2 Heating, Ventilating and Air
1.4 Objectives Conditioning Requirements for Climate
1.5 Scope of work Zone 1
1.6 Methodology
…………………………………………… 3.5.3 Lighting Requirements for
Chapter: 2 LITERATURE Climate Zone 1
REVIEW
…………………………………………… 3.6 Energy Efficient Design Practices
Chapter: 3 ASHRAE 3.6.1 Building Envelope
STANDARDS 3.6.2 Lighting
3.1 Introduction 3.6.2.1 Day lighting
3.2 ASHRAE 90.1 - 2007 3.6.2.2 Interior Electric Lighting
3.2.1 Purpose 3.6.2.3 Exterior Lighting
3.2.2 Scope 3.6.3 HVAC
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
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Chapter: 4 PROCEDURES FOR LCC &
4.3.4 Parameters for Present
LCA
Worth Method
4.1 Introduction
4.4 Uncertainty Assessment in LCCA
4.1.1 General definitions 4.4.1 Sensitivity Analysis
4.4.2 Break- even Analysis
4.2 Fundamental study of LCC
4.2.1 Historical development of 4.5 Detailed LCCA procedure
LCC
4.2.2 LCC – as a tool for Value 4.6 Fundamental study of Life Cycle
engineering Assessment
4.2.3 Recent trends and their LCC 4.6.1 Introduction
concerns 4.6.2 Fundamentals of LCA
4.2.4 Purpose of Life Cycle Cost 4.6.3 Historical Background of
Analysis (LCCA) LCA
4.2.5 Effectiveness of LCC in 4.6.4 Parameters for LCA
various stages of a project
4.2.6 Applications and limitations of 4.7 LCA generic procedure
LCC
4.2.7 Comparison with other 4.8 Conclusion
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
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Chapter: 5 OVERVIEW OF CODES AND Chapter: 6 CASE STUDY &
STANDARDS FOR LCC and LCA IDENTIFICATION OF ALTERNATIVE
FOR LCCA
5.1 Introduction
6.1 Introduction
5.2 Life cycle costing
5.3.1 IS 13174 (part 1): 1991 6.2 Review of Life Cycle Cost Calculation
5.3.2 IS 13174 (part 2): 1991 for a sustainable building
5.3.3 ASTM E917-99
5.3.4 ASTM E2150-02 6.3 Introduction to case study – MTNL
5.3.5 Code of Federal Regulations Office Building, Sector-6, Dwarka, New
Delhi
5.3 Life cycle assessment
5.3.1 ISO 14041: 1998(E) 6.4 Analysis of Building Envelope, HVAC
5.3.2 ISO 14043: 2000(E) and lighting system in case study
5.3.3 ASTM E1991-98
6.5 List of various building materials and
5.4 Conclusion technologies – conventional & energy-
……………………………………………………… efficient

6.6 Inventory of specifications and systems


in case example and their alternatives

6.7 Conclusion
…………………………………………………

CONTENTS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Chapter: 7 VALIDATION OF ASHRAE
STANDARD COMPLIANT BUILDING Chapter: 8 CONCLUSIONS AND
PROPOSAL FUTURE SCOPE OF WORK
7.1 Introduction 8.1 Conclusion

7.2 LCC Calculation Spreadsheets 8.2. Recommendations


7.2.1 Building Envelope
7.2.2 HVAC 8.3. Future scope of study
7.2.3 Lighting …………………………………………………

7.3 Payback calculation for the case example in List of References


terms of building envelope, HVAC & lighting …………………………………………………

7.4 Limitations of existing design Appendices

7.5 Advantages of ASHRAE compliant design A. Definitions, Abbreviations and


Acronyms – from ASHRAE 90.1- 2007
7.6 Statistical comparison of the existing design
and the ASHRAE compliant proposal B. Codes for LCC

7.7 Conclusion from case study and LCC C. Codes for LCA
calculations
……………………………………………………… D. Interest Table for Life Cycle Costing –
at 8% discount rate
………………………………………………

CONTENTS
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’


The construction sector alone counts for nearly 50% towards the
country‟s economics as well as energy consumption..

Buildings
Transportation
Industries

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.

1. INTRODUCTION
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Source: www.emsd.gov.hk
1. INTRODUCTION
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
In the past, economic assessment of alternative designs, constructions, or other
investments has been based on initial (first) cost which ignores the total cost incurred for
the investment throughout its lifetime.
The concept of life cycle costing provides an economic tool which takes into account
total costs for an investment during its life span.

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.

1. INTRODUCTION
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Various codes and standards are available nowadays, that serve as reference benchmark
to achieve at least a certain percentage of energy savings consumed in a building, that
eventually 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
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.
1. INTRODUCTION
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Need of Study
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.

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.

1. INTRODUCTION
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Objectives

• 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.

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.
1. INTRODUCTION
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Methodology

1. Introduction

2. Literature Study
1
3. ASHRAE Standards

2 4. Procedures for LCC

5. Overview of Codes & Standards for LCC

3 6.Case Study & Identification of Alternative

7. Validation of ASHRAE compliant proposal

4 8. Conclusion & Future Scope

1. INTRODUCTION
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’


Literature Study
• UNPUBLISHED WORKS
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

• PUBLISHED WORKS

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

2. LITERATURE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Literature Study
• RESEARCH WORKS

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

• CODES & STANDARDS

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

• 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 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’


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.

Purpose
The purpose of this standard is to provide minimum requirements for the
energy- efficient design of buildings except low- rise residential buildings.

Scope
This standard provides:
a) Minimum energy- efficient requirements for the design and construction
of:

1. New buildings and their systems


2. New portions of buildings and their systems
3. New systems and equipments in existing buildings

b) Criteria for determining compliance with these requirements.

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
The provisions of this standard apply to:
a) The envelope of buildings, provided that the enclosed spaces are

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

b) The following systems and equipment used in conjunction with buildings:


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

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Life cycle energy = Operational energy + Embodied energy

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 HVAC Equipment and Systems

• Roofs • Cooling Equipment Efficiencies


• Walls • Heating Equipment Efficiencies
• Floors • Supply Fans
• Slabs • Ventilation Control
• Doors • Ducts
• Vertical Glazing

Lighting

• Day lighting
• Interior Electric Lighting
• Controls
• Exterior Façade Lighting
• Parking Lot Lighting
• Plug Loads

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INTRODUCTION
MTNL Office Building, Sector 6, Dwarka, New Delhi

• 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.

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Climate Study
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.

Source: www. bbc.co.uk

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Climate Study

Climate Zone Map of India:


New Delhi falls under the
„composite climate‟ zone

Latitude 28° 35‟ N


Longitude 77° 12 E

Source: ECBC, 2006

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Building Envelope Requirements for Climate Zone 1
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

*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

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
HVAC Requirements for Climate Zone 1
ASHRAE: Minimum equipment efficiencies for air conditioning
( water chilling packages)

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
HVAC Requirements for Climate Zone 1
ECBC: Minimum equipment efficiencies for air conditioning
( water chilling packages)

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Interior Lighting Requirements for Climate Zone 1
ASHRAE:

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%.

Ductwork Insulation
3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Exterior Lighting Requirements for Climate Zone 1
ASHRAE:

ECBC:

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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 Orientation and shape of building. Use of trees as wind
area barriers
Increase thermal resistance Roof insulation and wall insulation
Increase thermal capacity Thicker walls
(time Lag)
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 Courtyards/ wind towers/ arrangement of openings


(Ventilation)
Increase humidity levels in dry Trees and water ponds for evaporative cooling
summer
Decrease humidity in monsoon Dehumidifiers/ Dessicant cooling

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For Building Envelope: Source: Advanced Energy Design Guide by ASHRAE

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For Building Envelope: Source: Advanced Energy Design Guide by ASHRAE

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For Building Envelope: Source: Advanced Energy Design Guide by ASHRAE

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
1. DAY LIGHTING

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
2. INTERIOR ELECTRIC LIGHTING

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
2. INTERIOR ELECTRIC LIGHTING

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
2. INTERIOR ELECTRIC LIGHTING

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
2. INTERIOR ELECTRIC LIGHTING

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For Lighting: Source: Advanced Energy Design Guide by ASHRAE
3. EXTERIOR ELECTRIC LIGHTING

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For HVAC: Source: Advanced Energy Design Guide by ASHRAE

3. ASHRAE STANDARDS
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Energy Efficient Design Practices
For HVAC: Source: Advanced Energy Design Guide by ASHRAE

3. ASHRAE STANDARDS
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’


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. “

4. PROCEDURES FOR LCC & LCA


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

4. PROCEDURES FOR LCC & LCA


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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.

4. PROCEDURES FOR LCC & LCA


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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.

4. PROCEDURES FOR LCC & LCA


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Example showing advantage of LCC:

Source:
www.insideoutarch.com
4. PROCEDURES FOR LCC & LCA
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

4. PROCEDURES FOR LCC & LCA


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Present Worth 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

Annualized Cost Method:


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
4. PROCEDURES FOR LCC & LCA
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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“

4. PROCEDURES FOR LCC & LCA


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

4. PROCEDURES FOR LCC & LCA


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’


MTNL Office Building, Sector 6, Dwarka, New Delhi

SITE PLAN AND VIEW

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
MTNL Office Building, Sector 6, Dwarka, New Delhi

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE

PROPOSED WALL ASSEMBLY

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
BUILDING ENVELOPE

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
HVAC

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
HVAC

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
HVAC

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
LIGHTING

CASE STUDY
Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
INVENTORY OF SPECIFICATIONS AND SYSTEMS USED IN CASE
EXAMPLE AND THEIR ALTERNATIVES
LIGHTING

CASE STUDY
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’


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.

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
Format of LCC calculation spreadsheet

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
STATISTICAL COMPARISON OF THE EXISTING DESIGN AND
ASHRAE- COMPLIANT PROPOSAL
For the 1st year, the comparison For the economic life period of 30
between the initial, replacement and years, the comparison between the
annual costs is as shown in the graph initial, replacement and annual costs is
below: as shown in the graph below:

12 12

10 10

8 8

Annual Costs Annual Costs


6 6
Replacement Cost Replacement Cost
Initial Cost Initial Cost
4 4

2 2

0 0
Existing Design Proposed Design Existing Design Proposed Design

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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.

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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.

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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.

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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.

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
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.

7. VALIDATION OF ASHRAE COMPLIANT PROPOSAL


Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’
THANKYOU

Life Cycle Costing of a Building Adapting to ASHRAE Standards SEMINAR ‘1’

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