Standard Practice for Life-Cycle Cost Analysis of Plastic Pipe Used for Culverts, Storm Sewers, and Other Buried Conduits

Importancia y uso:

5.1 LCC analysis is an economic method to evaluate alternatives that are characterized by differing cash flows over the designated project design life. The method entails calculating the LCC of each alternative capable of satisfying the functional requirements of the project and comparing them to determine which have the lowest estimated LCC over the project design life.

5.2 The LCC method is particularly suitable for determining whether the higher initial cost of an alternative is economically justified by reductions in future costs (for example, operating maintenance, rehabilitation, or replacement) when compared to an alternative with lower initial costs but higher future costs. If a design alternative has both a lower initial cost and lower future costs than other alternatives, an LCC analysis is not necessary to show the former is the economically preferable choice.

Subcomité:

F17.62

Volúmen:

08.04

Número ICS:

03.100.50 (Production. Production management), 23.040.20 (Plastic pipes)

Palabras clave:

cost analysis; discount rate; drainage system; engineering economics; least cost; life-cycle cost; material service life; present value analysis; project design life;