The Life Cycle Cost Handbook: Guidance for Life Cycle Cost Estimation and Analysis (2014) provides a structured framework for estimating and evaluating the total cost of projects over their entire life cycle. Developed by the U.S. Department of Energy, the handbook aims to improve investment decisions by ensuring that cost estimates capture all phases of a project, including planning, design, construction, operation, maintenance, and eventual disposal. The guide explains principles of life-cycle cost analysis, data requirements, cost modeling techniques, and procedures for developing consistent and credible estimates. It emphasizes transparency, documentation, and sensitivity analysis to manage uncertainty and risk. By applying life-cycle cost methods, project managers and analysts can compare alternatives on a long-term economic basis rather than focusing only on initial capital costs, enabling more sustainable and cost-effective project planning and asset management.
