Version No. 1
DEFENCE GREEN BUILDING REQUIREMENTS PART 1 Issue Date: 4 Sep 2006
WOL (WHOLE OF LIFE) COSTING FOR ESD INITIATIVES IN DBC Amendment Dates:
Review Date: Mar 2007
Purpose
The Commonwealth Procurement Guidelines require that value for money should be evaluated on a whole-of-life basis. The WOL
Costing Tool for ESD Initiatives in the Detailed Business Case (DBC) will provide guidance on the appropriate parameters for a WOL
investigation. It will:
n Present key definitions
n Formulate and present an approach which allows for capture of non-financial determinants
n Provide advice for criteria that are relevant for determining WOL for various building and system elements
n Provide a sample WOL calculation for a lighting system
Use
The WOL Costing Tool will be utilised during the DBC stage as a means to provide accurate costings and inform design decision-
making as various options are considered to meet the Defence Green Building Requirements (GBR) Part 1. Note that WOL costing is
synonymous with life cycle costing; however life cycle analysis, which captures extensive non-financial benefits and typically takes a
"cradle to cradle" approach is a separate exercise altogether and the terms should not be confused. Information on life cycle analysis is
presented in the following page.
The Tool will be utilised primarily by quantity surveyors in order to provide accurate cost estimates to Defence and to other project
team members. It can also be utilised by other external project team members as an informal resource to assist in narrowing down
design and system choices as the project moves toward 30% (approximately) design completion. The Tool will also assist Defence
project staff in reviewing design decisions and costings put forward by the project team.
The WOL tool can be used for both minor and major projects.
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
Terms and Definitions
The following terms and definitions are provided for the benefit of consistency of approach when undertaking a WOL costing.
Item Description
Capital cost All costs associated with the initial procurement including planning, design, construction and commissioning. These cost
are usually non-recurring, though will need to capture replacement costs if the effective life of the element is less than the
effective life of the project. Refer Effective Life below.
Discounted cashflow Presentation of future cash flow cost to a common time base (i.e. present day) using discounting techniques to allow
comparable cost comparisons to be made.
Discount rate The rate reflecting the time value of money that is used to convert benefits and costs occurring at different times to the
equivalent cost at common point in time, and is normally expressed as a percentage per annum.
Effective Life The period of time after which it becomes more economical to replace rather than to maintain a system or component.
Can be referred to as "indicative product life."
In an WOL calculation, if the effective life of the product or element is less than the project effective life, additional
capital expenditure is required to replace the element and needs to be captured as a capital cost.
Elements A portion of the project that fulfils a particular physical purpose.
Net Personnel and Operating NPOC is the difference between future operating costs and current funded operating costs associated with a capability,
Costs (NPOC) facility, system or specific item of equipment. It reflects the net difference between the cost estimates to operate a new,
upgraded or replacement capability offset by the guidance available to operate the current capability, across all affected
Groups.
Net Present Value (NPV) The discounted cost of the flow of all expenses including capital outlay over the evaluation period for the building
component under consideration.
Non-discounted cash flow Presentation of anticipated expenditure over the evaluation period based on current rates.
Recurrent cost Combination of ongoing costs such as operating costs inclusive of energy, water, waste, maintenance costs such as
corrective and replacement, and garrison support costs such as cleaning.
Residual Value The recoverable value of a component at the termination of the evaluation period, expressed as a negative cost.
Value of recoverable materials generally based on quantity of materials involved; it is up to the discretion of the user to
determine of the quantity being considered for the project is viable to cost as a recoverable asset. However, take back
versus materials sent for disposal should be quantified.
Sensitivity Analysis Testing the outcome of an evaluation by altering the values of key factors such as the discount rate, the effective life or
others about which there might be uncertainty.
WOL Costing
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing can be defined as the total of the direct/indirect, recurring/non-recurring, fixed/variable financial costs to the Commonwealth arising out of, or
in any way in connection with, the Works over the whole life of the Works including the costs of designing and constructing the Works prior to Completion
and operating and maintaining the Works after Completion.
The objective of WOL costing is to assist in decision making by providing a means of comparing different option costs. WOL objectives in a defence project
means balancing:
(a) WOL Cost;
(b) the useful life of the Works;
(c) the reliability and availability for use of the Works throughout their useful life;
(d) the operability and maintainability of the Works throughout their useful life;
(e) the value for money achieved by the Commonwealth from the design, construction, operation and maintenance of the Works;
(f) the achievement of the ESD Principles; and
(g) the achievement of the specific additional matters (if any) relating to WOL specified in the Contract Particulars
Typically WOL option cost data is inputted into a decision model which considers factors such as a discount rate, costs / rates for energy, water charges, cost
escalation (only for items or instances over and above the anticipated rate of inflation), etc. Provided inflation for all costs is approximately equal, the
calculation should exclude cost escalation impacts when undertaking WOL costing.
WOL costing may initially be performed early in the design process when data with limited accuracy is available (though will be updated as more accurate
data becomes available), which may impact on the overall analysis outcome. Sensitivity analysis techniques can be applied to the decision model to
measures how expected values will be affected by variation of critical data inputs. Data points that can be subject to a sensitivity analysis include capital
cost, discount rate and energy rate. The values are chosen to reflect the level of uncertainty for the data. For example the sensitivity analysis may consider the
effects of a +/- 10% variation in capital cost.
WOL cost information and effective product life typically come from various sources such as: historical data, manufacturers’ advice, Defence advice
(including discount rate based on Defence recommended rate), industry cost guides, industry guides (e.g. AIRAH, ASHRAE, CIBSE) and ESD best practice
resources. As the project is developed the WOL costing is refined by reviewing the additional details developed for selected options against previous data
and assumptions.
The flowchart below describes the steps and considerations that are part of a WOL investigation. WOL costing allows for:
Model of discounted WOL Costing
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The below flowchart demonstrates the process for evaluating whole of life costs for different building elements / design options, allowing for an equitable
comparison to be made. The chart also demonstrates that, when considering products and elements from an ESD perspective, non-financial determinants
such as ecological and social values can be applied to the decision-making. Examples of ecological and social values might include demonstration of
leadership in sustainable environmental management, water savings, enhancement or protection of flora and fauna, recycled content and recyclability,
improved indoor environmental quality, materials from local sources, 'triple bottom line' record / reporting of suppliers, improved productivity, preserved
cultural and heritage resources, etc. These measures should be brought in as an adjunct to the WOL calculation (as WOL traditionally deals with financial
parameters only). Additionally, different weightings can be applied to the economic, ecological and social measures to ensure that a balance is reached that
suits the needs of the user.
Determine system or
element to be costed
Nominate options to be
compared
Initial
Discount rate
Capital Cost
Component Capital Cost
replacement based on Non-discounted cash Discounted Cash flow NPV Sensitivity Analysis
effective life flow
Recurrent Costs:
Maintenance; Additional Potential Option Costs
Utility Costs; Comparison:
Cleaning; etc Non-financial
Design Reports
determinants
Evaluate and apply:
- ecological values Recommended Option Costing Plan
- social values
NPOC, Maintenance
Plan, Post Occupancy
Review
Further information on Whole of Life or life cycle costing may be found at:
Australian National Audit Office Better Practice Guide:
http://www.anao.gov.au/WebSite.nsf/Publications/4A256AE90015F69B4A256B57001DC439/$file/15543_ANAO+LCC+guide2.pdf
AS3595 - Energy management programs— Guidelines for financial evaluation of a project
Whole Building Design Guide: http://www.wbdg.org/design/lcca.php
US Department of Energy - Building Technologies Toolbox: http://www.eere.energy.gov/buildings/info/design/wholebuilding/costanalysis.html
WOL costing for ESD initiatives in DBC v1 4Sep2006
Life Cycle Assessment
For the purpose of evaluating ESD benefits, it is possible to undertake a life cycle assessment (a k a life cycle analysis, eco-balance). A Life Cycle
Assessment (LCA) systematically describes and assesses all material, energy and ecological flows related to a product or process from a cradle to grave
perspective. There are two main steps in an LCA.
1.) Describe which emissions will occur and which raw materials are used during the life of a product. This is usually referred to as the inventory step.
2.) Assess what the impacts of these emissions and raw material depletions are. This is referred to as the impact assessment step.
A complete life cycle assessment will combine the extensive environmental / ecological analysis with costing information to inform decision-making around
product selection. All stages in the life of a product are analysed: raw material acquisition, manufacture, transportation, installation, use, and recycling and
waste management. Economic performance should be measured using whole of life or life cycle costing methods which covers the costs of initial
investment, replacement, operation, maintenance and repair, and disposal.
Note that a proper LCA is a complex and costly undertaking that requires enormous volumes of data and extensive investigations to be done
objectively. For more information, the following references can be searched:
US Environmental Protection Agency - Systems Analysis Research: http://www.epa.gov/ORD/NRMRL/std/sab/lca/index.html
Ecospecifier: http://www.ecospecifier.org/knowledge_base/downloads/life_cycle_analysis
Life Cycle Assessment links: http://www.life-cycle.org/
American Center for Life Cycle Assessment: http://www.lcacenter.org/
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL" Rules of Thumb"
The WOL "Rule of Thumb" table below provides a guidance on a range of ESD design considerations and complementary elements. (This table is not an exhaustive list
and there may be other elements to consider.) Effective ESD design usually involve a combination of elements rather than a single element or components in isolation.
Therefore effective WOL option assessment needs to consider the combined effect of an ESD option. For example the assessment of double glazed windows should
consider the reduction in energy used by the mechanical system.
The required effective life of a building is usually defined in the FDB. The WOL options need to consider the relationship between the effective life of the building and
the effective life of the components / complimentary elements being considered in WOL options.
In WOL costing for ESD initiatives, each building will have a number of areas that can be assessed:
o Building fabric,
o Internal finishes,
o Structures,
o Fitments,
o Building Services,
o Sitework
The key to the complimentary elements is found below and is based on the Australian Institute of Quantity Surveyors definition of elements. The column is meant to
indicate that whilst WOL calculations may be performed on individual elements only, it is more likely and necessary that the WOL investigation capture considerations
from other elements. For example, WOL costing of glazing will need to be informed by other building fabric issues and the heating and cooling system.
Note that the effective product life listed is indicative only and confirmation is required for each element / component being considered. Further, indicative product life
(or, the economic life) should not be confused with functional and technological obsolescence. Whilst in reality, many products, systems and finishes will be replaced
before the end of their economic life, there is no consistent nor objective means to cost these considerations into a WOL calculation and therefore they cannot be factored.
ESD Design Description Complimentary Effective Product Recurrent Costs Residual Value
Consideration Elements Life (indicative only)
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Structures
Substructure SB, CL, UF, RF 25 + years Protective coatings Material recovery (Timber or
steel framing, floor lining),
recyclable material recovery
(Concrete, Steel
reinforcement)
Upper Floors & SB, CL, UF, RF 25 + years Protective coatings Material recovery (Timber or
Columns steel framing, floor lining),
recyclable material recovery
(Concrete, Steel
reinforcement)
Building Fabric
Glazing WW, EW, AC 25 + years Moving part and seal Framing material recovery
replacement, paint (aluminium, timber)
finishes, energy cost
External Walls WW, AC, WF, CL, 25 - 25 + years Seals, finishes, fixings, Material recovery (metal,
SB energy cost timber)
Roof SB, CL, EW, AC 25 - 25 + years Seals (roof fabric / Material recovery (metal
membrane), landscaping, cladding, steel framing)
energy cost
Internal Finishes
Floor coverings Carpet: 5 - 15 Finishes / re-finishes; Material recovery (timber) ,
Linoleum, vinyl, fixings, cleaning regimes carpet leasing / take-back
rubber: 15 - 20 policies
Timber: 25 +
Tiling, terrazzo - 25 +
Concrete - 25 +
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Wall finishes EW, NW Paint: 5 - 10 Material recovery (timber)
Timber panelling: 25
+
Vinyl: 25 +
Wall fabrics: 15
Fitments
Joinery 25 + years Hardware / moving parts, Material recovery (timber)
finishes / re-finishes
Building Services
Hydraulics XR, XK, XW, XD, Pipes 25 + years Fittings and moving Material recovery (copper
PD, WS Fixtures 20 - parts, seals, cleaning pipes)
25 years regimes, pumps
(servicing), water costs
Lighting WW, AC, EW Wires 25 + years Replacement of lamps, Material recovery (metal)
Fixtures 20 - 25 ballasts, covers /
years diffusers, control
component failure /
upgrade, energy costs
HVAC EW, WW, RF, LP, Refrigeration plant: Component Material recovery (metal)
GS, WS, CE 15 - 20 years maintenance, energy
Fans: 20 - 25 years costs, water costs,
Pumps, motors: 20 - cleaning costs, ongoing
25 years operational replacements
Cooling towers: 10 - (filters, belts, lubricants,
25 years etc.)
Packaged air
handling: 15 - 20
years
Radiators: 25 + years
Boilers: 20 - 25 years
Minor plant: 15 - 20
years
Siteworks
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Roads and XK, XL, XP 25 + years Landscaping
footpaths, maintenance /
stormwater retention remediation, sealing /
topping, water cost
Definition of Elements
00 PR PRELIMINARIES
SUBSTRUCTURE
01 SB SUBSTRUCTURE
SUPERSTRUCTURE
02 CL COLUMNS
03 UF UPPER FLOOR
04 SC STAIRCASES
05 RF ROOF
EXTERNAL FABRIC AND FINISHES
06 EW EXTERNAL WALLS
07 WW WINDOWS
08 ED EXTERNAL DOORS
INTERNAL FABRIC AND FINISHES
09 NW INTERNAL WALLS
10 NS INTERNAL SCREENS & BORROWED LIGHTS
11 ND INTERNAL DOORS
12 WF WALL FINISHES
13 FF FLOOR FINISHES
14 CF CEILING FINISHES
FITMENTS
15 FT FITMENTS
16 SE SPECIAL EQUIPMENT
SERVICES
17 SF SANITARY FIXTURES
18 SD SANITARY PLUMBING
19 WS WATER SUPPLY
20 GS GAS SERVICE
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21 SH SPACE HEATING
22 VE VENTILATION
23 EC EVAPORATIVE COOLING
24 AC AIR CONDITIONING/MECHANICAL SERVICES
25 FP FIRE PROTECTION
26 LP ELECTRIC LIGHT & POWER
27 CM COMMUNICATIONS
28 TS TRANSPORTATION SERVICES
29 SS SPECIAL SERVICES
CENTRALISED ENERGY SYSTEMS
30 CE CENTRALISED ENERGY SYSTEM
ALTERATIONS
31 AR ALTERATIONS
SITEWORKS
32 XP SITE PREPARATION
33 XR ROADS, FOOTPATHS & PAVED AREAS
34 XN BOUNDARY WALLS, FENCING & GATES
35 XB OUTBUILDING
36 XL LANDSCAPING & IMPROVEMENTS
EXTERNAL SERVICES
37 XK EXTERNAL STORMWATER DRAINAGE
38 XD EXTERNAL SEWER DRAINAGE
39 XW EXTERNAL WATER SUPPLY
40 XG EXTERNAL GAS
41 XF EXTERNAL FIRE PROTECTION
42 XE EXTERNAL ELECTRIC LIGHT & POWER
43 XC EXTERNAL COMMUNICATIONS
44 XS EXTERNAL SPECIAL SERVICES
45 XX ALTERATIONS & RENOVATIONS TO EXT WORKS
SPECIAL PROVISIONS
46 YY SPECIAL PROVISIONS (Provisional Sums)
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WOL costing for ESD initiatives in DBC v1 4Sep2006
tary elements. (This table is not an exhaustive list
han a single element or components in isolation.
assessment of double glazed windows should
hip between the effective life of the building and
definition of elements. The column is meant to
at the WOL investigation capture considerations
d the heating and cooling system.
being considered. Further, indicative product life
products, systems and finishes will be replaced
L calculation and therefore they cannot be factored.
Related ESD considerations:
WOL costing for ESD initiatives in DBC v1 4Sep2006
Local material sourcing, recycled content
Local material sourcing, recycled content
Daylighting, natural ventilation, thermal
comfort, natural resource extraction, local
material sourcing, PVC minimisation,
greenhouse gas emissions
Natural resource extraction, local material
sourcing, PVC minimisation, thermal
comfort, greenhouse gas emissions
Recycled content, local ecology,
stormwater emissions (site damage and
downstream impacts), greenhouse gas
emissions
Local sourcing, recycled content, PVC
minimisation, use of natural materials /
natural resource management, VOCs /
indoor environmental quality, end of life
provisions / recyclability
WOL costing for ESD initiatives in DBC v1 4Sep2006
Local sourcing, PVC minimisation, use of
natural materials / natural resource
management, VOCs / indoor
environmental quality, end of life
provisions / recyclability
Local sourcing, PVC minimisation, indoor
environmental quality / formaldehyde
minimisation
Natural resource management, emissions
(stormwater and sewage)
Indoor environmental quality, greenhouse
gas emissions
Indoor environmental quality, natural
resource management, greenhouse
emissions
WOL costing for ESD initiatives in DBC v1 4Sep2006
Local ecology, stormwater emissions (site
damage and downstream impacts)
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WOL costing for ESD initiatives in DBC v1 4Sep2006
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WOL costing for ESD initiatives in DBC v1 4Sep2006
WOL costing for ESD initiatives in DBC v1 4Sep2006
Sample WOL Cost Comparison (simplified format)
Investigation of three lighting system alternatives
ITEM / OPTION: Standard Lighting System
Description: lighting system with minimum specialist switching.
NON-DISCOUNTED CASHFLOW
SECTION Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 TOTAL
Capital Cost 100,000 - - - - - - - - - - - - - - - - - - 50,000 - - - - - 150,000
Recurrent 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 250,000
Others (Residual Value) -
NET COST 100,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 60,000 10,000 10,000 10,000 10,000 10,000 400,000
DISCOUNTED CASHFLOW 8% (Discount Rate)
- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
SECTION Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 TOTAL
Capital Cost 100,000 - - - - - - - - - - - - - - - - - - - 10,727 - - - - - 110,727
Recurrent - 9,259 8,573 7,938 7,350 6,806 6,302 5,835 5,403 5,002 4,632 4,289 3,971 3,677 3,405 3,152 2,919 2,703 2,502 2,317 2,145 1,987 1,839 1,703 1,577 1,460 106,748
Others - - - - - - - - - - - - - - - - - - - - - - - - - - -
NET COST 100,000 9,259 8,573 7,938 7,350 6,806 6,302 5,835 5,403 5,002 4,632 4,289 3,971 3,677 3,405 3,152 2,919 2,703 2,502 2,317 12,873 1,987 1,839 1,703 1,577 1,460 217,475
ITEM / OPTION: Standard lighting system with control switching
Description: lighting system with control switching such as light sensors
NON-DISCOUNTED CASHFLOW
SECTION Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 TOTAL
Capital Cost 110,000 - - - - - - - - - - - - - - - - - - - 50,000 - - - - - 160,000
Recurrent - 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 212,500
Others -
NET COST 110,000 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 8,500 58,500 8,500 8,500 8,500 8,500 8,500 372,500
DISCOUNTED CASHFLOW 8% (Discount Rate)
- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
SECTION Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 TOTAL
Capital Cost 110,000 - - - - - - - - - - - - - - - - - - - 10,727 - - - - - 120,727
Recurrent - 7,870 7,287 6,748 6,248 5,785 5,356 4,960 4,592 4,252 3,937 3,646 3,375 3,125 2,894 2,680 2,481 2,297 2,127 1,970 1,824 1,689 1,563 1,448 1,340 1,241 90,736
Others - - - - - - - - - - - - - - - - - - - - - - - - - - -
NET COST 110,000 7,870 7,287 6,748 6,248 5,785 5,356 4,960 4,592 4,252 3,937 3,646 3,375 3,125 2,894 2,680 2,481 2,297 2,127 1,970 12,551 1,689 1,563 1,448 1,340 1,241 211,463
ITEM / OPTION: High Technology Lighting and Control System
Description: High technology light fitting with special lighting control and auto dimmer system.
NON-DISCOUNTED CASHFLOW
SECTION Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 TOTAL
Capital Cost 125,000 - - - - - - - - - - 34,000 - - - - - - - 30,000 - - - - - 189,000
Recurrent - 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 180,000
Others -
NET COST 125,000 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 41,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 7,200 37,200 7,200 7,200 7,200 7,200 7,200 369,000
DISCOUNTED CASHFLOW 8% (Discount Rate)
- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
SECTION Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 TOTAL
Capital Cost 125,000 - - - - - - - - - - 14,582 - - - - - - - - 6,436 - - - - - 146,018
Recurrent - 6,667 6,173 5,716 5,292 4,900 4,537 4,201 3,890 3,602 3,335 3,088 2,859 2,647 2,451 2,270 2,102 1,946 1,802 1,668 1,545 1,430 1,324 1,226 1,135 1,051 76,858
Others - - - - - - - - - - - - - - - - - - - - - - - - - - -
NET COST 125,000 6,667 6,173 5,716 5,292 4,900 4,537 4,201 3,890 3,602 3,335 17,670 2,859 2,647 2,451 2,270 2,102 1,946 1,802 1,668 7,981 1,430 1,324 1,226 1,135 1,051 222,877
Notes:
1. Cost escalation was excluded in this WOL analysis.
WOL costing for ESD initiatives in DBC v1 4Sep2006
Sample WOL Cost Comparison (simplified format)
2. Breakdown of capital costs, recurrent costs and others should be annotated to provide transparency in the assumptions and calculations. Eg. additional capital expenditure is shown in Year 20, reflecting the effective life of the system being considered.
3. Note that the second option provides the best financial benefit; however, in this simplified example, the benefits that may accrue from reduced heat load from the lighting system and its
impact on the HVAC plant should be considered. Additionally, non-financial determinants such as indoor environmental quality and greenhouse gas emissions should be taken into account
when comparing the systems to determine overall benefits of each option.
WOL costing for ESD initiatives in DBC v1 4Sep2006