Life Cycle Cost Analysis

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Life-cycle cost analysis (LCCA) is a method for assessing the total cost of facility ownership. It takes into account all costs of acquiring, owning, and disposing of a building or building system. LCCA is especially useful when project alternatives that fulfill the same performance requirements, but differ with respect to initial costs and operating costs, have to be compared in order to select the one that maximizes net savings. For example, LCCA will help determine whether the incorporation of a high-performance HVAC or glazing system, which may increase initial cost but result in dramatically reduced operating and maintenance costs, is cost-effective or not.

EBS excels at life cycle costing - our approach has helped several high profile clients either avoid unnecessary capital expenditures and/or choosing project alternatives with the highest returns. We avoid the typical financial analysis (something we jokingly call "kindergarten math") in an effort to bring a higher level of decision making ability to our clients. That ability comes in the form of detailed engineering math fused with robust financial calculations resulting in risk evaluated metrics such as Modified Internal Rate of Return (MIRR), Savings to Investment Ratio (SIR), and of course the king, Net Present Value (NPV). Our results however don't stop there. Mixing market conditions and capitalization rate assumptions allows us to prove great value outside of a traditional Discounted Cash Flow approach.

Lastly, we go one step further. Any good model has parameters that are conditional and therefore includes a sensitivity and/or scenario analysis. The Sustainability Financial Impact Analysis (SFIA) modeling we undertake uses an on the fly approach to these sensitivity concerns of our clients - SFIA was built to provide instantaneous feedback that can be vital for quickly analyzing trade-off scenarios. "Our Life Cycle Costing approach transcends siloed thinking by incorporating all facets of project valuation by incorporating technical capacity, the financial equation, and the real world real estate scenario - all three pieces make our puzzles complete and robust.

LEED GAP Analysis/Feasibility

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LEED GAP Analyses are the basis for making sustainable improvements to existing facilities or for planning the construction of new ones. A GAP analysis compares current conditions to optimal conditions and uses the "gap" between the two to determine profitability. GAP strategies can estimate overall lifetime costs for project alternatives allowing us to advise the most appropriate triple bottom line design, renovation, or certification process.

LEED EBOM GAP Anlaysis: These studies allow our clients to make informed decisions through an initial assessment that does so much more than list potential points your building can qualify for - our assessments use a "rack and stack" approach. We list each credit, its requirements, both the hard and soft costs of pursuing those credits, and an all told cost figure for achieving LEED Certification at the various levels (i.e. Silver, Gold, etc.) This format provides the most transparent approach to a process (EBOM Certification) that is somewhat complicated to understand for novice audiences.

You will receive:
• List of credits your project can qualify for (with little or no changes)
• Action List of necessary tasks to qualify under the LEED EBO&M criteria
• Analysis of the soft & hard costs and description of the associated benefits
• An all LEED AP staff of experts
• The ability to hire us for outside services such as ASHRAE 62.1 calculations or ASHRAE Level I/II Energy Audits

Furthermore, this analysis will include a price for retaining the services of Environmental Building Strategies for the LEED Project Management & Certification under LEED for Existing Building Operations & Maintenance 2009 criteria.
NOTE: 100% of the costs of these studies will be credited if using our firm for the associated full scope of work (e.g. LEED Project Management & Certification) following the study results.

For a new build project you can expect a similar format where our team will review project drawings, specs and timelines to analyze the project's ability to qualify under various certification criteria.

Contact Us for more information.