Life Cycle Cost Plan of a College Hostel Building

Abhishek Verma

P. G. Scholar, Sardar Patel College of Engineering,

Mumbai
 Presentation Outline
• Overview
• Scope and objectives
• Methodology
• Results and Discussion
• Conclusion
Overview
• The study focuses on the sustainability of the facility which is to be
established for the purpose of inexpensive food and lodging for the
students of an institute.
• Sustainability is a critical factor for the long run independent
functioning of the facility.
• The study focuses on sustainability in terms of: -
• Cash Outflow vs Cash Inflow
• Facility Operation & Maintainance
• Environmental Impact
• Sociological Impact
Overview
• At this level of planning we don't see construction as a project but the
process of making the venture involving the construction profitable as
a project.
• Analysing capital requirements from client perspective.
• Identifying major cost packages during the project life cycle.
• Determining the sources of cost anomalies through project life.
• Developing a sunk fund.
• Identifying various stakeholders and their relative importance.
Scope & Objectives
• The work in the thesis will focus majorly on the various stages of
development of the project and how each stage of the project
contributes towards developing a sustainable framework such that all
possible circumstances are accounted for throughout project life cycle
and appropriate risk redressal techniques are devised from the very
first day of project commencement.
• Determining the profitability of the project
• Prepare a stakeholder management guide
• Analysing and implementing green building concepts
• Effect of general inflation on the life cycle cost of project
Scope & Objectives
• Determining various Operational and Maintainance costs and devising
ways to regulate them
• Determining appropriate equity structure
• Making efficient use of capital employed in project by achieving value
• Deciding amount & tenure of loan
• Developing an elemental activity monitoring software
Methodology
• Identified various expenses occurred in lieu of hostel operation from:-
• College accounts department
• Literature Review
• Interview
• E-mails to various concerned professionals
• Forecasting factors were to be determined for usage of
• Electricity
• Water
• Direct wages
• Repair and Maintainance
• Reports referred for electricity usage and its future aspect: -
• Previous years usage patterns for existing hostel (SPSS)
• Japan International Cooperation Agency (JICA)
• Energy Statistics (Central Statistics Office)
• Annual report (Central Electricity Authority)
• Production patterns for previous years state wise
• Production deficit and surplus
• Tariff rates over the years
• Moving towards renewable production
• Documents referred for water usage: -
• Drinking water, sanitation and hygiene report (Planning Dept. GOM)
• Previous years bills for hostel
• Prevailing tariff rates
• Rain water harvesting
• Direct Wages to security, cleaning, general management staff : -
• General rate of inflation over the years
• Average incremental patterns in wages
• Repair and Maintainance
• Historical records for similar facilities
• Research papers
• Green Building concepts
• Facility Depreciation
• Identifying Direct Costs to commissioning of facility
• Architect, Consultant, Supporting Staff, Contractor fee, Interest on loan
• Rendering all costs to present value
• Land Cost Significance in facility commissioning
• Present land cost from property dealers(off-line, on-line) and circle rates
• Land costs from land acquisition and property related legal cases
• Loan amount
• Calculate WACC
• Benefits of commercial loan
• Income tax rebate
• General repair and Maintainance
Results & Discussion
• 80% weightage to number of students and 20% weightage to the area
increment of facility
Built-up Area Student Capacity Area per Student (sq. ft)
Current Facility 27,997.00 350 79.99
New Facility 62,976.24 500 125.95
Increment 2.24939251 1.428571429

• General incremental factor of 1.5932

2022 2082
Project Staff ₹ 18,00,000.00 ₹ 59,58,000.00
Interest on loan ₹ 4,76,94,000.00 ₹ 15,78,67,140.00
Architect fee ₹ 10,00,000.00 ₹ 33,10,000.00
Consultant fee ₹ 10,00,000.00 ₹ 33,10,000.00
Overheads ₹ 80,00,000.00 ₹ 2,64,80,000.00
Contractor fee ₹ 22,04,16,847.32 ₹ 72,95,79,764.62
Grand Total ₹ 27,99,10,847.32 ₹ 92,65,04,904.62
 TYPICAL YEARLY OPERATING & MAINTAINANCE EXPENSE COLLEGE HOSTEL
Other Water Charges
2% 3%
Repairs & Maintainance to Building
12%
Repairs & Maintainance to Furniture
& Fixture
Electricity charges paid 1%
40%

Wages to Contractual staff

42%
• ₹ 20,921.50 is the Model “0” cost per student to institute
• ₹ 30,251.86 is the Model “1” cost per student to institute
• ₹ 74,007.14 is the Model “2” cost per student to institute
• Annual cost to rent the same area provided by the hostel, in the
nearby vicinity ₹ 1,50,821.99 in Jan-2022
• General Inflation Average No. of Years
7.8959% Last 40 Years
7.4451% Last 30 Years
6.5387% Last 20 Years

• Forecasting and computing inflation till Jan-2082

• 331.14923% inflation rate as compared to Jan-2022
 LIFE CYCLE COST
Repairs & Maintainance to
Water Charges
Building
Land 2%
11%
17%
Repairs & Maintainance to
Furniture & Fixture
1%

FCC
15%

Wages to Contractual staff

23%

Other
1%

Electricity charges paid

15%
Depriciation
15%
 Income Phase

Investment Phase

Year Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Jan-27 Jan-28 Jan-29 Jan-30 Jan-31 Jan-32 Jan-33 Jan-34 Jan-35 Jan-36 Jan-37 Jan-38 Jan-39 Jan-40 Jan-41 Jan-42 Jan-43 Jan-44 Jan-45 Jan-46 Jan-47 Jan-48 Jan-49 Jan-50 Jan-51 Jan-52 Jan-53 Jan-54 Jan-55 Jan-56 Jan-57 Jan-58 Jan-59 Jan-60 Jan-61 Jan-62 Jan-63 Jan-64 Jan-65 Jan-66 Jan-67 Jan-68 Jan-69 Jan-70 Jan-71 Jan-72 Jan-73 Jan-74 Jan-75 Jan-76 Jan-77 Jan-78 Jan-79 Jan-80 Jan-81 Jan-82 Jan-83

Stage of Project Pre Construction Construction Facility Operating & Maintainance

Respective Year 1st 1st 2nd 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36th 37th 38th 39th 40th 41st 42nd 43rd 44th 45th 46th 47th 48th 49th 50th 51st 52nd 53rd 54th 55th 56th 57th 58th 59th 60th

Topographic Site Clearance Jan-23

Land Survey
Geographic Jan-22 Handed over to Contractor Feb-23 Columns Slabs & Facilitation Cost Student Management Staff
Super Structure Beam Block
Architectural Site Preparation Work

Mar-23
Structural Feb-22 PCC Commissioning Security Staff

Facility Designing MEP Mar-22 Footings Apr-23 Lift Cleaning Staff

Sub-Structure
Student Management
Plinth Beams May-23 Municipal Taxes
Staff
Green Building Aspects Apr-22 Electrical System
DPC Jun-23 Mechanical Bank Charges
Electrical
Architectural May-22 Jul-23 Plumbing Security Staff
Repair & Maintainance
Structural Jun-22 Plumbing Works Cleaning Staff
Aug-23
Cost Jul-22 Municipal Taxes Depriciation

Schedule Aug-22 Columns Slabs Sep-23 Painting Bank Charges

Facility Design
Super-Structure & Beam Block Electricity Charges
Analysis
Energy Sep-22 Work Oct-23 Flooring
Repair & Maintainance
Legal/Ethical Oct-22 Finishing Work
Nov-23 Doors & Windows Water Charges
Resource Nov-22 Depriciation

Environmental Dec-22 Dec-23 Steel Work Telecomm

Electricity Charges
Architect General Exp.

Quantity Survey
Quantity Surveyor Water Charges

Architect Telecomm

General Exp.
Tender Preparation Quantity Surveyor

Consultant

Architect

Consultant

Tender Float
Quantity Surveyor

Client Engineer

Architect

Quantity Surveyor
Tender Evaluation

Consultant

Client Engineer

Background Check

Contractor Finalized

Formalizing Paper work

Meeting with Key

Stakeholders during
construction
Client Project team
finalized

Office Staff

Site Staff
Conclusion
• The energy requirement's of the building should be reduced as much
as possible as it would account for a significant portion of the
investment required for the project
• Wages to staff for security and cleaning of the facility is a huge
portion of the life cycle cost
• The loan amount should be taken such that the WACC is less than
20%
• Emphasize on self generation of energy
• The cost per student to rent the same area in the nearby vicinity is
200.123733% more
• The key element of an effective mapping process is as far as possible
to replace subjectivity with objective measures and to make the
assessment process transparent
• Stakeholder management is very important for achieving true value of
capital employed
Thank You
 Repairs & Maintainance to Building
Water Charges
11%
2%
Land
17%

Repairs & Maintainance to Furniture & Fixture

1%

FCC
15%

Other
1%

Wages to Contractual staff

23%

Electricity charges paid

15%

Depriciation
15%