by Shane Henson — August 28, 2013—As the building technologies market strides toward optimizing intelligent building investments by managing end-user experiences, energy efficiencies, and monitoring and maintenance of assets, life cycle costing (LCC) proves of paramount importance, according to new research by business consulting firm Frost & Sullivan.
Through collaborative research between Frost & Sullivan and the Continental Automated Buildings Association (CABA), findings show that cost evaluations are not the industry norm; instead, purchases are most often based on the lowest costs and relationships with past vendors. Despite this, industry participants agree the use and adoption of LCC as a valid prerequisite for building technology purchases is a key benchmark in the years to come.
To ease the challenges around long-term building technology purchase decisions for maximum return on investment (ROI), Frost & Sullivan and CABA are midway through a project they say is aimed at defining the role of LCC in intelligent buildings, with support from CABA’s Intelligent Integrated Buildings Council (IIBC). The analysis is evaluating the current tools and techniques available to accurately measure LCC, as well as LCC’s current and future impact on the market as a key purchasing factor to consider before any major building technology-related purchase.
This Frost & Sullivan and CABA collaborative research project will also cover the adequacy of training and education initiatives and collaborative efforts required to make LCC and related methods a mainstream component.
Many businesses have already expressed an interest in this research.
“We look forward to the outcomes of this research, and feel this represents an important and timely analysis that reflects the importance of life cycle costing within our industry,” according to a statement from Honeywell. “We feel the discovery of best practices and appropriate ROI models raises the necessary awareness and provides benefits to all stakeholders.”
For more information before the release of the final analysis in October 2013, please send an e-mail with contact details to Britni Myers .
