This note GEN 10, originally published in November 1996, was reviewed by Craig Langston in November 2001. This summary page includes recent updates to the topic since publication.
Although the concept of considering all of the costs of a project may seem common sense, unfortunately in current practice decisions are largely made on the basis of capital costs. This results in value for money being viewed in a narrow context and limits the efficient use of resources within society. Whilst value assessment must additionally include factors such as functionality, aesthetics, environmental impact and financial return, life-cost studies remain as a significant part of any asset decision. Architects must be conscious of the importance of life-costs and seek out solutions in their practice that will not ultimately become financial burdens for their clients or others in the community.