"Fashions fade, but style is eternal." - Yves Saint Laurent

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Thursday, June 28, 2012

Life Cycle Costing


One of the tools we use in the tile industry is the TCNA (Tile Council of North America) handbook, previously known as the TCA.  They have recently added a “Life Cycle Cost” table for flooring, which is a wonderful tool when comparing flooring options!

What is Life Cycle Costing or LCC?  Life Cycle Costing is a methodology used to evaluate the economic performance of investments in construction & building systems.  LCC is a calculation where consideration is given only to the relevant costs, which are directly or indirectly affected by the material options being considered.  Product evaluation is given in which all costs arising from owning, operating, maintaining, and disposing of a product are considered important to the decision.  The time intervals at which the various costs arise during the selected life period must also be taken into account.  Before the various cost items can be put together, those that arise every year, and those that arise at certain time intervals during the service life must be converted into present values.

Check out the Life Cycle Costing website (http://www.uniformat.com/index.php/what-is-life-cycle-costing), which is specific to the construction industry.  Their objective is to support the application of LCC based on the American Society for Testing & Materials (ASTM).  The definition of LCC used in the TCNA study was the initial cost to install; which includes labor, materials, normal contractor’s overhead & profit, plus periodic maintenance costs to preserve & maintain the appearance of the product, and the final costs to remove the floor covering at the end of its useful life.  It was assumed that there is no salvage value to any of the products at the end of their useful life, and there are disposal fees associated with the removal of the floor covering.  The LCC analyzes these considerations when looking at interior finishes and the determination of how long a material is expected to last in the proposed environment.

From our perspective in the tile industry, typically tile is considered a “permanent” finish, with the expectation that it will last 30 years or longer.  This is nice from an environmental standpoint to think that our material will not end up in a landfill 5-10years after install.  The other point with hard-surface flooring is the maintenance is quite minimal, without requiring costly equipment or VOC’s (Volatile Organic Compounds) in the up-keep of the material.

With more conversations regarding “Green” and sustainable materials, the idea of LCC is important in regards to the energy required for delivery, installation, and maintenance of a material.  Energy analysis should be done at the conceptual phase, which dovetails with the basic philosophy of how a LEED project is documented & implemented.  Another aspect of LEED requirements is the indoor air quality during installation & maintenance, which also is taken into consideration in the LCC calculations.

Following is the Life Cycle Costs for flooring from the TCA handbook:

Floor Finish
Install Cost
LCC
Expected Life
Cost/Year
Quarry Tile
$6.83
$16.13
50
$.32
Glazed Ceramic
$7.00
$16.30
50
$.33
Glazed Porcelain
$8.34
$17.64
50
$.35
Mosaic Tile
$8.20
$17.50
50
$.35
Unglazed Porcelain
$8.30
$17.60
50
$.35
Natural Hardwood
$9.31
$20.80
50
$.42
Travertine – Turkish
$12.50
$21.80
50
$.44
Marble
$21.00
$30.30
50
$.61
Laminate
$8.84
$17.77
25
$.71
Man-Made Hardwood
$9.58
$18.51
25
$.74
Port. Cement Terrazzo
$14.88
$24.27
30
$.81
Stained Concrete
$12.40
$24.60
25
$.98
Carpet
$3.22
$6.50
6
$1.08
Resin Terrazzo
$8.50
$16.53
15
$1.10
Sheet Vinyl
$6.90
$13.90
10
$1.39
Poured Epoxy
$8.18
$15.18
10
$1.52
VCT
$3.91
$18.35
10
$1.83


All costs are calculated per square foot of material.

This should be valuable information when looking at options to best suit your clients needs for their flooring material considerations, and to have the data to back up your information.

Additional information: www.tileusa.com