Assess whole life costs
To maintain value in a project you should always consider the costs of the asset over its whole life and not just the initial capital cost.
You should consider:
- Operational costs as well as delivery costs
- Developing a cost management framework to reflect whole life costs
- Any changes to design should capture whole life costs
Consider operational as well as delivery costs
Low initial delivery costs can very often lead to significantly increased costs over the life of the project. For instance a low cost roof covering or thinner road surfacing may ensure that a project is maintained within its initial cost profile/budget but if it has to be replaced four times during the life of the asset then it is likely to cost the client significantly more in terms of operational costs.
Develop a whole life cost management framework
Establish project costs on the basis of the asset life as well as the project life to develop the asset. This will ensure that the project cost model and any changes to the project are well informed.
Manage changes without compromising whole life value
Using a whole life cost management framework or model will ensure that any changes to the project are well informed and allow impacts of any project changes to be considered over the life of the project.