ABSTRACT
Engineering economics involves formulating, estimating, and evaluating the economic outcomes when there are alternatives to accomplish a defined purpose. During the Schematic Design and Design Development phases of the project design, designers make increasingly detailed decisions about the final design for the building, including mechanical, electrical, structural, telecommunications, and plumbing systems. Capital costs are the sum of the design, construction, and financing costs necessary to provide a finished building or building component ready for use. Annual recurring or “uniform” maintenance is a difficult cost element to estimate since most designers have little experience in following up on their designs to determine long-term costs and actual costs vary widely based on the owner’s maintenance philosophy and/or the training and expertise of the maintenance staff. After the life-cycle cost for each design alternative is computed, the relative performance of the alternatives may require further evaluation before a final selection is made.
