IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v25y2023i11d10.1007_s10668-022-02579-x.html
   My bibliography  Save this article

Life cycle cost analysis (LCCA) of construction projects: sustainability perspective

Author

Listed:
  • Muhammad Altaf

    (Universiti Teknologi PETRONAS)

  • Wesam Salah Alaloul

    (Universiti Teknologi PETRONAS)

  • Muhammad Ali Musarat

    (Universiti Teknologi PETRONAS)

  • Abdul Hannan Qureshi

    (Universiti Teknologi PETRONAS)

Abstract

Construction industry projects play a significant role in the sustainable economic growth of all other industries. To achieve a sustainable economy, the future associated costs act as a barrier that must be addressed in the initial stages of a construction project. To evaluate the future costs, Life Cycle Cost Analysis (LCCA) is found to be an effective technique that determines the present worth of future costs. This study focuses on reviewing the conducted research in the field of optimising cost during the project life cycle via LCCA to sustain economic sustainability and associating the environmental and social cost factors to enhance sustainability. A systematic literature review strategy is developed to extract relevant literature from Scopus, Web of Science, Science Direct, Emerald and American Society of Civil Engineering from the year 2009 to 2020. Adopting the PRISMA statement, a total of 83 articles are reviewed systematically in detail. Many construction sections are explored with the impact of LCCA on them. The LCCA impact the performance of construction projects during certain practices such as structural designing, energy cost optimisation, building envelope efficiency in energy demand and utilisation optimisation and earthquake engineering. Moreover, this study highlights the influence of LCCA in optimising the environmental impact of a new or existing construction project to avail economic sustainability along with the social and environmental. A conceptual framework has been proposed that shows the influence of LCCA on the construction industry, which directly impacts economic sustainability and indirectly environmental sustainability.

Suggested Citation

  • Muhammad Altaf & Wesam Salah Alaloul & Muhammad Ali Musarat & Abdul Hannan Qureshi, 2023. "Life cycle cost analysis (LCCA) of construction projects: sustainability perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12071-12118, November.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:11:d:10.1007_s10668-022-02579-x
    DOI: 10.1007/s10668-022-02579-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-022-02579-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-022-02579-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jihui Yuan & Craig Farnham & Kazuo Emura, 2017. "Optimum Insulation Thickness for Building Exterior Walls in 32 Regions of China to Save Energy and Reduce CO 2 Emissions," Sustainability, MDPI, vol. 9(10), pages 1-13, September.
    2. Kovacic, Iva & Zoller, Veronika, 2015. "Building life cycle optimization tools for early design phases," Energy, Elsevier, vol. 92(P3), pages 409-419.
    3. Jozef Švajlenka & Mária Kozlovská, 2018. "Houses Based on Wood as an Ecological and Sustainable Housing Alternative—Case Study," Sustainability, MDPI, vol. 10(5), pages 1-20, May.
    4. Oh, Jeongyoon & Koo, Choongwan & Hong, Taehoon & Cha, Seung Hyun, 2018. "An integrated model for estimating the techno-economic performance of the distributed solar generation system on building façades: Focused on energy demand and supply," Applied Energy, Elsevier, vol. 228(C), pages 1071-1090.
    5. Hikmat H. Ali & Shorouq N. Alzu’bi, 2017. "Design optimization of sustainable affordable housing model in hot-arid climate-case of Jordan," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 10(5), pages 607-627, October.
    6. Aysin Sev, 2009. "How can the construction industry contribute to sustainable development? A conceptual framework," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(3), pages 161-173.
    7. Zoran Pučko & Damjan Maučec & Nataša Šuman, 2020. "Energy and Cost Analysis of Building Envelope Components Using BIM: A Systematic Approach," Energies, MDPI, vol. 13(10), pages 1-24, May.
    8. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    9. Milan, Christian & Bojesen, Carsten & Nielsen, Mads Pagh, 2012. "A cost optimization model for 100% renewable residential energy supply systems," Energy, Elsevier, vol. 48(1), pages 118-127.
    10. Marszal, Anna Joanna & Heiselberg, Per & Lund Jensen, Rasmus & Nørgaard, Jesper, 2012. "On-site or off-site renewable energy supply options? Life cycle cost analysis of a Net Zero Energy Building in Denmark," Renewable Energy, Elsevier, vol. 44(C), pages 154-165.
    11. Elena Fregonara & Diego Giuseppe Ferrando, 2020. "The Stochastic Annuity Method for Supporting Maintenance Costs Planning and Durability in the Construction Sector: A Simulation on a Building Component," Sustainability, MDPI, vol. 12(7), pages 1-21, April.
    12. Patrick Schroeder & Kartika Anggraeni & Uwe Weber, 2019. "The Relevance of Circular Economy Practices to the Sustainable Development Goals," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 77-95, February.
    13. Anthony C. Fisher & John V. Krutilla, 1975. "Resource Conservation, Environmental Preservation, and the Rate of Discount," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 89(3), pages 358-370.
    14. repec:eme:ijhma0:ijhma-01-2017-0009 is not listed on IDEAS
    15. Saafi, Khawla & Daouas, Naouel, 2018. "A life-cycle cost analysis for an optimum combination of cool coating and thermal insulation of residential building roofs in Tunisia," Energy, Elsevier, vol. 152(C), pages 925-938.
    16. Souayfane, Farah & Biwole, Pascal Henry & Fardoun, Farouk & Achard, Patrick, 2019. "Energy performance and economic analysis of a TIM-PCM wall under different climates," Energy, Elsevier, vol. 169(C), pages 1274-1291.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sehrish Atif & Shehzad Ahmed & Muhammad Wasim & Bassam Zeb & Zeeshan Pervez & Lorraine Quinn, 2021. "Towards a Conceptual Development of Industry 4.0, Servitisation, and Circular Economy: A Systematic Literature Review," Sustainability, MDPI, vol. 13(11), pages 1-27, June.
    2. Kristoffersen, Eivind & Blomsma, Fenna & Mikalef, Patrick & Li, Jingyue, 2020. "The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies," Journal of Business Research, Elsevier, vol. 120(C), pages 241-261.
    3. Lopes de Sousa Jabbour, Ana Beatriz & Chiappetta Jabbour, Charbel Jose & Choi, Tsan-Ming & Latan, Hengky, 2022. "‘Better together’: Evidence on the joint adoption of circular economy and industry 4.0 technologies," International Journal of Production Economics, Elsevier, vol. 252(C).
    4. Gibbons, Laurence & Javed, Saqib, 2022. "A review of HVAC solution-sets and energy performace of nearly zero-energy multi-story apartment buildings in Nordic climates by statistical analysis of environmental performance certificates and lite," Energy, Elsevier, vol. 238(PA).
    5. Fahd Diab & Hai Lan & Lijun Zhang & Salwa Ali, 2015. "An Environmentally-Friendly Tourist Village in Egypt Based on a Hybrid Renewable Energy System––Part Two: A Net Zero Energy Tourist Village," Energies, MDPI, vol. 8(7), pages 1-17, July.
    6. Pina Puntillo, 2023. "Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 941-954, March.
    7. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    8. Wesam Salah Alaloul & Muhammad Altaf & Muhammad Ali Musarat & Muhammad Faisal Javed & Amir Mosavi, 2021. "Systematic Review of Life Cycle Assessment and Life Cycle Cost Analysis for Pavement and a Case Study," Sustainability, MDPI, vol. 13(8), pages 1-38, April.
    9. Gilberto Santos & Jose Carlos Sá & Maria João Félix & Luís Barreto & Filipe Carvalho & Manuel Doiro & Kristína Zgodavová & Miladin Stefanović, 2021. "New Needed Quality Management Skills for Quality Managers 4.0," Sustainability, MDPI, vol. 13(11), pages 1-22, May.
    10. Bruno Michel Roman Pais Seles & Janaina Mascarenhas & Ana Beatriz Lopes de Sousa Jabbour & Adriana Hoffman Trevisan, 2022. "Smoothing the circular economy transition: The role of resources and capabilities enablers," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1814-1837, May.
    11. Ed Burton & David John Edwards & Chris Roberts & Nicholas Chileshe & Joseph H. K. Lai, 2021. "Delineating the Implications of Dispersing Teams and Teleworking in an Agile UK Construction Sector," Sustainability, MDPI, vol. 13(17), pages 1-21, September.
    12. Michal Gluszak & Remigiusz Gawlik & Malgorzata Zieba, 2019. "Smart and Green Buildings Features in the Decision-Making Hierarchy of Office Space Tenants: An Analytic Hierarchy Process Study," Administrative Sciences, MDPI, vol. 9(3), pages 1-16, July.
    13. Durán-Romero, Gemma & López, Ana M. & Beliaeva, Tatiana & Ferasso, Marcos & Garonne, Christophe & Jones, Paul, 2020. "Bridging the gap between circular economy and climate change mitigation policies through eco-innovations and Quintuple Helix Model," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    14. Defrancesco, Edi & Gatto, Paola & Rosato, Paolo, 2014. "A ‘component-based’ approach to discounting for natural resource damage assessment," Ecological Economics, Elsevier, vol. 99(C), pages 1-9.
    15. Toorajipour, Reza & Oghazi, Pejvak & Sohrabpour, Vahid & Patel, Pankaj C. & Mostaghel, Rana, 2022. "Block by block: A blockchain-based peer-to-peer business transaction for international trade," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    16. Oscar F. Bustinza & Ferrán Vendrell-Herrero & Francisco J. Sánchez-Montesinos & José Antonio Campos-Granados, 2021. "Should Manufacturers Support the Entire Product Lifecycle with Services?," Sustainability, MDPI, vol. 13(5), pages 1-14, February.
    17. Kögel, Tomas, 2009. "On the Relation between Dual-Rate Discounting and Substitutability," Economics Discussion Papers 2009-10, Kiel Institute for the World Economy (IfW Kiel).
    18. Chen, Liming & Zhao, Yuanyuan & Xie, Rui & Su, Bin & Liu, Yue & Renfei, Xv, 2023. "Embodied energy intensity of global high energy consumption industries: A case study of the construction industry," Energy, Elsevier, vol. 277(C).
    19. D. D’Amato, 2021. "Sustainability Narratives as Transformative Solution Pathways: Zooming in on the Circular Economy," Circular Economy and Sustainability,, Springer.
    20. Geoffrey Heal, 2008. "Climate Economics: A Meta-Review and Some Suggestions," NBER Working Papers 13927, National Bureau of Economic Research, Inc.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:25:y:2023:i:11:d:10.1007_s10668-022-02579-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.