Identifying the optimum balance across capital, life-cycle and environmental costs in new build construction projects

The costs associated with buildings are many and varied and reflect the impact buildings have on their owners, users, the environment in which they are set and the environment from which the resources employed in their construction and maintenance come. If the costs associated with construction projects are to be evaluated successfully, a full understanding of these costs and how they interact and influence each other is necessary. This paper introduces a research initiative, which aims to develop a methodology to identify the optimum balance across the various costs when procuring new build construction projects. Literature reviewed identifies the costs associated with buildings. Methods used to evaluate these costs, categorising them into capital costs, life-cycle costs and environmental costs, are discussed. The paper considers the interaction of the different cost categories and the potential of a benchmark reflecting a clear understanding of the interaction between the different cost categories, which could be set as a standard to be attained in building projects.