ABSTRACT
Life cycle costing involves the application of established economic techniques to the decision-making process associated with the design and commissioning of capital works projects. The pursuit of economic life cycle costs is the central theme of the whole evaluation. The method of application incorporates the combination of managerial, functional and technical skills in all phases of the life cycle. Life cycle costing can be used to evaluate the various options in the design in order to assess their economic impact throughout the project's life. The effects of inflation and the problem that it causes to capital investment decisions need to be taken into account in a life cycle costing comparison. Economists have indicated that costs and prices cannot be assumed to rise indefinitely, and that there may be a future lapse or even a reversal of the traditional historic patterns.
