It is probably fair to claim that one reason, or, more properly, excuse, for the relatively slow introduction of life cycle costing methods to the building industry has been a feeling that life cycle cost estimates are in some sense inaccurate, or based merely on guess-work. If this view is to be challenged effectively, simple, practical techniques must be developed that address risk and uncertainty explicitly, and give the decision-maker comprehensive information on which to base their judgements. A major objective of life cycle costing is to rank competing projects, whether these be competing designs, or competing finishes to a floor space. Sensitivity analysis of the life cycle cost may indicate that the ranking of the options being considered is unaffected by variation in a particular parameter. There is little value in trying to improve the estimate of that parameter.
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