Perhaps the most significant difference between short-term profits and long-term business success remains planning. Although expert project analysis and follow through can provide a positive outcome, life cycle costing offers a heightened understanding of asset management. In practical terms, consider existing structures that were once considered among the finest. Then, consider which have fallen into disrepair and which continue to shine. Effective life cycle costing can mean the difference.
Construction Life Cycle Costing
At TruEst Quantity Surveyors, our team of experienced professionals provides critical research and analysis that give business leaders the essential data necessary to make informed decisions. We provide a detailed life cycle costing analysis as part of our quantity surveying services. If you are considering a construction project and need reliable data, TruEst has an established reputation for delivering critical insight into these fundamental life cycle costing analysis:
The upfront costs of an asset involve pre-planning, planning, professional services, legal and regulatory expenses, insurance, land, materials and construction costs, among others. It is common for developers to consider these initial costs as the most pertinent expense of a project. An expert life cycling analysis brings these items into a broader cost perspective.
It’s common for developers to review these costs in a short window. However, understanding the nature and trends impacting a facility’s long-term service expenses supports ongoing, cost-effective business success.
Preventative Maintenance Cost
The cost of repairs is often accompanied by downtime and lost revenues. The manufacturing sector tends to rely on preventative maintenance to deter unanticipated loss of revenue. These same strategies can be applied to a long-term construction asset plan.
Although operating costs are generally included in a project’s feasibility study, a life cycling analysis can augment the fundamental understanding of rising operating costs. That knowledge proves vital to ongoing profitability.
Although acquiring business assets remains essential to increased profitability, it’s important to have a defined exit strategy. Insight into the disposal costs during a project’s early stages assigns long-term value.
Life Cycle Costing Analysis in Ontario Redefines Sustained Profitability
Although life cycle costing remains underused among quantity surveying services, critical tool in the construction sector, it has been a game-changer for long-term profitability and business achievement. Understanding all the moving expenses over time gives industry leaders the ability to predict future profits.
At TruEst Quantity Surveyors, we provide determined life cycle costing analysis and reports that support sustained success. If you are considering developing a construction sector asset, contact our London, Ontario, office for a consultation today.