What is 'life cycle costing' in the context of MEP design?

Life cycle costing in the context of MEP (Mechanical, Electrical, and Plumbing) design refers to the comprehensive analysis of all costs associated with a system over its entire lifespan. This includes not only the initial capital investment required for acquisition and installation but also ongoing operating and maintenance costs, any costs related to energy consumption, potential upgrades, and the costs associated with decommissioning or disposal at the end of the system's useful life.

This approach enables designers and decision-makers to evaluate the total cost of ownership, ensuring that they consider long-term financial implications rather than focusing solely on short-term expenditures. By using life cycle costing, it becomes possible to identify which systems offer better value over time, facilitating more informed decisions that align with budgetary constraints and sustainability goals.

In contrast, focusing only on maintenance costs, initial project costs, or energy consumption alone would provide an incomplete picture, potentially leading to choices that might seem cost-effective at first but could result in higher expenses in the future. Hence, the analysis of the total cost of ownership encapsulates all relevant financial factors throughout the lifecycle of a system, making it the most comprehensive method for financial evaluation in MEP design.