2020 Life Cycle Cost
2020 Life Cycle Cost
4. Construction & commissioning The construction process up to Recurring cost necessary for
completion and the handing over of the occupational charges such as rate,
project to client insurance, repairs, improvements, fuel,
cleaning and estate control
6. Completion
a. Maintenance The use of the building for its intended
purpose
b. Modification Alterations necessary to keep the Recurring cost required for major
building in a good standard of repair or changes to building in respect of
to improve the current-day standard refurbishment and redevelopment
1. Capital cost
2. Maintenance (per annum)
3. Redecoration (interval)
4. Minor new work (year)
5. Energy (per annum)
Aircond
Lighting
Power
6. Cleaning (per annum)
7. General rates (per annum)
8. Insurances (per annum)
9. Estate mgt. (annual)
10. Tax allowance (per annum)
Total net present value (NPV)
Annual equivalent
THE FORMULA
AMOUNT
1 5
AMOUNT OF RM 1 YEAR
RM 1 PER ANNUM
PRESENT
VALUE
PRESENT VALUE OF RM1
Eg.
WHAT SUM WILL BE OBTAINED IF RM 10,000 IS TODAY FOR 10 YEARS AT 7%
SUM RM 10,000
AMT OF RM 1.967
10 YRS@7%
ACCUMULATED OUTLAY 19,670