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Preserving continuity in whole-life cost models for net-zero carbon buildings

conference contribution
posted on 01.01.2013, 00:00 authored by Olubukola TokedeOlubukola Tokede, B Sloan, A Brown
Investment in net-zero carbon buildings requires comprehensive evaluation especially with regards to economic viability. Mathematical modelling of whole-life costing provides a relevant framework to assess the investment potential of net-zero carbon buildings. Previous studies in investment analysis have suggested insufficiency in the discounting mechanism of cash flows leading to unrealistic estimation, and in some instances, incorrect decisions. There is a growing body of evidence that conceptual adjustments to cost models could facilitate improvements in the costing of zero carbon buildings. This study, - which is part of a PhD investigation on cost studies in zero carbon buildings, presents an approach to preserving continuity in whole-life cost models using the binomial theorem. The work builds on the New Generation whole-life costing developed in Ellingham and Fawcett (2006) by extending the period under consideration and concurrently providing for other elements of time, uncertainty and irrevocability. The study also highlights the conceptual importance of continuity in decision-models. An illustrative costing exercise is carried out, over a 25-year period, on a conventional and net-zero carbon building using three different whole-life cost procedures. Results from the study suggest that continuous whole-life cost models provide a realistic template for representing cost variables especially in comparative studies. Future research will examine the implications of continuous whole-life costing for a generic net-zero carbon building. This will provide construction professionals with clear aspirational objectives on the economic performance of net-zero carbon buildings.

History

Event

Association of Researchers in Construction Management. Annual Conference (29th : 2013 : Reading, England)

Pagination

1231 - 1241

Publisher

Association of Researchers in Construction Management

Location

Reading, England

Place of publication

Reading, Eng.

Start date

02/09/2013

End date

04/09/2013

ISBN-13

9780955239076

Language

eng

Publication classification

E Conference publication; E1.1 Full written paper - refereed

Copyright notice

[2013, The Conference]

Editor/Contributor(s)

S Smith, D Ahiaga-Dagbui

Title of proceedings

ARCOM 2013 : Proceedings of the 29th Association of Researchers in Construction Management Annual Conference

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