"Lifetime cost is the new bottom line" - Patricia Hewitt, Secretary of State, Department of Trade & Industry, 2004

 

Whole-life values and costing is an approach to costing and valuing land use plans, infrastructure, buildings and major regeneration and new development projects. In order to understand the true value of something it is critically important to consider its costs and benefits over the project's entire lifetime from cradle-to-grave, or even from cradle-to-cradle in the case of recyclable materials and systems.

 

The whole life cost of a development includes the initial capital cost, the finance cost, repairs and maintenance, demolition and disposal. It may also include the cost of redevelopment where, for instance, there may be a financial liability for future clean up of land contaminated by the preceding land use. Whole life cost calculations also incorporate running costs such as energy, water and waste.

 

In addition to the above costs there may also be indirect costs (sometimes called externalities). These might include, for instance, the future cost of mitigating climate change caused by the burning of fossil fuels to compensate for poorly insulated buildings.

 

On the 'value' side of the whole life equation, buildings and communities that are built well provide a better quality of life and in the medium to long term save money.