Life Cycle Costs as the Key to Sustainable and Economical Building Design

In the construction industry, the focus is often on low initial investment costs. However, the largest cost blocks usually arise during operation and subsequent maintenance. Life cycle costs make these connections transparent: they encompass all building-related expenses – from construction to maintenance, renovations, energy consumption, and decommissioning. Economically and ecologically sustainable planning begins in the early design phase.

Of particular interest is the incorporation of CO₂ pricing – currently, for example, €32.50/t of CO₂ in Austria, €45/t in Germany, and already €120/t in Switzerland. Moreover, only life cycle costs take demolition and disposal costs into account.

Thinking in life cycles pays off
One of the most common misconceptions: a cheap building is automatically economical. In fact, reducing construction costs often leads to disproportionately high operating expenses. For example, poor insulation or outdated, inefficient building services technology can result in significant long-term energy costs. Life cycle cost analyses show that in such cases, high-quality, durable materials and systems – despite higher initial investments – are significantly more economical.

Forecast for Planning Security
The dynamic present value method is usually used to calculate life cycle costs. Projected costs are discounted to today's value (present value) and compared. Key parameters include:

• Consideration period (e.g. 50 years)

• Discount rate for the discounting of future expenses

• Assumptions regarding price development (e.g. energy, maintenance)

It is considered that costs and revenues that will occur or are expected in the future are of less value than those that occur or are taken today. Discounting all costs to today's present value enables their comparison and identification of the biggest cost categories over the lifespan.

Thinking of Buildings as Resource Storages
A promising approach is to consider materials as strategic resources. Tools like Madaster allow documentation throughout the entire lifecycle. If materials that can be easily separated for recycling are used, they can be recycled at the end of the building's life or even be sold at a profit.

A striking example: A facade made of copper may be more expensive to manufacture than alternatives made of wood or aluminum - however, its material value can increase significantly over decades, making the investment completely profitable.

Real-life Example from Practice
In a Swiss project, four facade variants were compared - including a building-integrated photovoltaic solution. This was the most expensive option in construction at around 1.2 million CHF. Over the life cycle, its total value reduced to around 360,000 CHF - thanks to saved energy costs and feed-in remuneration. The payback period was only twelve years. After that, the facade generated economic added value - and over the entire life cycle was the most cost-effective solution.

Sustainability Pays Off
A common rule of thumb: The operating and maintenance costs of an average building can be four to five times the construction costs. Particularly in conventional construction without a focus on energy efficiency or low maintenance, this factor can increase significantly.

Life cycle costs allow for targeted countermeasures – through the choice of durable materials, efficient technology, or well-thought-out building concepts.

Conclusion and Outlook
Life cycle costs are more than just a calculation tool – they are a control instrument for sustainable construction. They make visible which decisions are worthwhile in the long run – economically and ecologically. In times of rising energy prices, increasing regulations, and growing responsibility for climate protection, they are an essential component of climate-conscious, economically viable planning.