AICTE Approved, Affiliated to RGPV, Bhopal

Autonomous Institute | NBA Accredited | AICTE Approved, Affiliated to RGPV, Bhopal

Jul 30, 2025

Assessment of economic performance of an industrial building using life cycle cost & refined benefit-cost analysis – A case study

Dr. Rewa Bochare, Dr. Monika Dagliya

Prestige Institute of Engineering Management and Research, Indore, Madhya Pradesh
452010, India

Abstract

This study utilizes Life cycle costing (LCC) analysis to assess the economic viability of an industrial building. It has been adapted to estimate daily costs and the resulting benefitcost ratio (BCR), determining whether the new facility investment is worthwhile. Additionally, the study investigates awareness and usage of the LCC concept among civil engineers and architects. A survey was conducted on 500 technically qualified individuals in the construction industry in the study area. Results show that LCC for buildings is underrated. The study breaks down construction, operation, maintenance, and deconstruction cost and calculates the total cost over the building’s life. The BCR, based on daily costs and expected annual profit, is 9. A sensitivity analysis accounts for market fluctuations, with the worst-case ratio being 2. This innovative technique can aid in assessing the proposed building’s feasibility and profitability during the design phase. However, LCC concepts are not widely known or used for cost estimation, so more awareness is needed to convey its economic advantages to stakeholders.

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