A Life Time Cost Analysis (Life Cycle Cost Analysis, LCCA) is a method of the total cost assessment of a project that takes into account all costs of acquiring, owning and disposing of the facilities. A LCCA is especially useful when the project alternative studies that operates the same performance requirements, but differs with initial costs and operating costs, and have to be compared in order to select the one that maximises net savings. The purpose of a LCCA is to estimate the overall costs of project alternatives and to select the technology that ensures the facility will provide the lowest overall cost of ownership consistent with its quality and function. A LCCA should be performed early in the design process while there is still a chance to refine the design to ensure a reduction in Life Cycle Costs.
Related Definitions in the Project: The Project Cost; Economic Reviews; Project Management
