Policy statement 451 - Life-cycle cost analysis

Approved by the Engineering Practice Policy Committee on January 22, 2024
Approved by the Public Policy and Practice Committee on May 29, 2024
Adopted by the Board of Direction on July 18, 2024

Policy

The American Society of Civil Engineers (ASCE) recommends the appropriate use of Life-Cycle Cost Analysis (LCCA) principles to evaluate the total cost of projects. The analysis should include life-cycle costs associated with the planning, financing, design, construction, operation, maintenance, and decommissioning of projects. The analysis should also include costs associated with innovation, resiliency, and sustainability as well as regulatory, environmental, safety, and other costs anticipated during the life of the project, whether borne by the project owner, project users, or other stakeholders.

Issue

Life-cycle costs are one of the most significant considerations in evaluating project alternatives during the planning and design of infrastructure; however, in many cases LCCA is not sufficiently considered. The use of LCCA will raise the awareness of owners, clients, users, and the general public of the full cost of infrastructure and the need to plan for and finance this total cost. The systematic use of LCCA will promote innovative, resilient, sustainable, and cost-effective engineering solutions.

Rationale

The ASCE Grand Challenge asks civil engineers to implement performance-based standards, resilience, sustainability, innovation, and LCCA in all projects. The goal is to significantly reduce life cycle cost, enhance the performance and value of infrastructure projects over their life cycles, and to optimize infrastructure investments for society.

ASCE’s 2021 Report Card for America’s Infrastructure calls for smarter investing by planning for the financing, design, construction, operation, maintenance, and decommissioning of projects.

This policy has worldwide application
ASCE Policy Statement 451
First Approved in 1997