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What Is Life-Cycle Costing (LCC)?
A costing method that, alongside price, takes into account the costs of using, maintaining and disposing of a product or service over its whole life cycle.
What does life-cycle costing include?
The purchase price plus the costs of use, maintenance, energy, consumables and disposal over the product's life, and sometimes environmental externalities such as emissions.
How is it used in evaluation?
As an award criterion, so that a product that costs more to buy but less to run can win. The buyer must publish the method and the data it will use.
What should suppliers prepare?
Documented figures for energy use, maintenance intervals, expected lifetime and disposal. Claims that cannot be verified will not be credited.
