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Proposal for Construction Manager as Constructor Services <br />Four Winds Renovation and Expansion ― South Bend, Indiana <br />Life Cycle Cost Analysis <br />Life Cycle Cost Analysis (LCCA) is a structured approach to evaluate design <br />alternatives that meet the same functional requirements but differ with <br />respect to initial and overall operating costs. For example, a high <br />performance HVAC or glazing system may have a higher initial cost but may <br />dramatically reduce operating and maintenance costs over the life of the <br />building. Alternatively, a system may have a lower first cost, but also have a <br />much shorter lifespan, greatly reducing the overall value. <br />We understand the Team must consider the impact of the investment on the <br />bottom line, environmental issues, and their importance with regards to all <br />employees in the building, energy program incentives that may be <br />available, price volatility among energy cost alternatives, etc. A complete <br />analysis, including maintenance needs, replacement, and financing is <br />necessary to extend the value analysis beyond just the initial cost of a <br />component or system in the facility. Ultimately, the purpose of an LCCA <br />evaluation is to select the design that provides the lowest overall cost of <br />ownership consistent with the expected quality and function. <br />Our LCCA process begins with the development of alternatives for the <br />project with input from the Owner, Architect, Engineers, consultants, and <br />other members of the project team. LCCA can be performed on the whole <br />building or only on isolated building systems. <br />The range of factors that can be studied varies widely, but typically includes <br />items such as: <br />•Construction costs <br />•Comparative qualities and aesthetics <br />•Impact on staff <br />•Ultimate cost of utilities (i.e. power, gas, water, etc.) <br />•Operating and maintenance costs <br />•Estimated useful life <br />•Repair and replacement expectations <br />•Salvage value at the end of equipment’s useful life <br />•Interest on increased capital costs <br />•Federal or local incentives <br />Our unparalleled experience with projects like the Four Winds Renovation <br />and Expansion gives our firm unique insights into the life cycle of various <br />systems that may be used for this project. We have numerous repeat clients <br />and we’ve visited facilities where we’ve built the facility, renovated it 20 years <br />later, and then renovated it again. This experience gives us a unique <br />understanding of how systems and materials are performing that other <br />contractors may not have. We can use that information and those insights to <br />improve the design for this project. <br />Page 18 of 30