Seeking a total life sub

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Most sport and recreation facilities in Western Australia are built or refurbished with funding from the department. An important part of the funding process is to make sure the community can bear the true cost of running and maintaining a facility well into the future. These Life Cycle Cost Guidelines provides facility owners, architects and engineers with the tools they need to develop life cycle cost reports that will be used by the department as it considers publicly owned or funded facilities.

The guidelines mean analysis and reporting can be standardised to ensure a timely and accurate technical review of your facility or project. The Department of Sport and Recreation is committed to pursuing the most desirable project outcomes that reduce the cost to the sport and recreation industry and the broader community. Life cycle costing is a key asset management tool that takes into the whole of life implications of planning, acquiring, operating, maintaining and disposing of an asset.

The process is an evaluation method that considers all ownership and management costs. These include;. You would have to factor in an additional component — deferred maintenance DM — for refurbishment or redevelopment projects. Put simply, the costs to be included within the LCC equation are those that are directly attributed to the ownership, management and operation of an asset. An example would be air conditioning where you have installation, operation and replacement expenses. Costs such as annual staff salaries, service provision, training associated with corporate functions would not be included.

Local governments own or manage the majority of sporting and recreational facilities in Western Australia, so management is often exposed to a highly competitive and localised budgetary process. With few exceptions, facility management within local government has not been exposed to the rigour of consolidated asset management planning processes and the associated financial systems.

Maintenance competes for funding with other programs and is often deferred when other projects receive a higher priority. The cost is the increased risk of components failing and potentially increased safety hazards, poor service to the public, higher costs in the future and inefficient operations. In many cases the deferral of routine scheduled maintenance will mean your asset will deteriorate faster, making it harder for you to meet the deferred maintenance costs.

In terms of the life cycle cost process, deferred maintenance is understood to be the cost of maintenance not committed to maintaining the assets original or desired level of service. Overall, the need to identify deferred maintenance will help you to establish the funding responsibilities of all parties in the project proposal. The process of identifying and quantifying the true cost of deferred maintenance is detailed in Section 2. The timing of a LCCA is crucial to the long—term success of a facility. In contemporary project management the concept and de stages are the greatest opportunities to influence a successful facility structure and operation.

The further a project develops, the further opportunities diminish. For a LCCA to successfully guide decisions about building de or asset replacement it must be completed before systems are selected and approved and construction tenders are awarded. The image depicted at figure 1. This opportunity greatly diminishes as we move along the life cycle axis.

The aim of this guide is to reinforce the concept of whole of life costs for the practitioner to deliver better project decisions. LCC is a valuable and powerful tool that can be used to gain support for the preferred project option.

Many people across the sport and recreation industry have considered the lowest construction cost as being the best alternative. The LCC approach encourages proponents to focus decisions on a developed life cycle cost regime to reduce energy consumption, maintenance requirements and ongoing operational costs.

The adoption of a life cycle cost approach will be necessary when applying for public funds to assist in your project, renovation or construction. An analysis should conform to the requirements set down in this guide before a contract is let for an improvement or construction of a public facility. Should an analysis not be possible, a written submission should be lodged with DSR outlining the circumstances. The life cycle cost analysis procedure considers the option of selecting from a set of alternatives, the building de or plant with the lowest whole of life cycle cost.

The de and development aspect of the project analysis procedure recognises that many of the facilities that will provide future sporting and recreational services already exist. Consideration of funding applications for sport or recreation facilities will fall into two :. A Greenfields project for new facilities provides the facility owner the greatest opportunity to minimise the total cost for construction, operation and maintenance through total asset management strategies.

This can be achieved through the adoption of an integrated facility asset management program early in the development stage of a new facility see figure 1. The issue of deferred maintenance typically does not encumber Greenfields projects and consequently the project manager can adopt maintenance and budgetary projections with a greater level of confidence.

Information is to be clearly presented and understandable to all parties in the process facility, financial and technical. LCCA reports are to be stand—alone documents containing all support documentation and be capable of independent review. The Greenfields application will clearly identify rights and responsibilities of all parties involved in the project and detail all estimated cost exposures over the life of the project.

Brownfields projects are those where submissions are made for existing facilities to be upgraded or refurbished or a new facility developed on a site currently being used for other purposes,. Facilities funding processes both capital and operating for existing local government facilities are typically exposed to the pressures of annual budget bids in a very competitive financial environment.

Exposing existing facilities to this style of budgetary process may lead to inadequate maintenance funding that ultimately in their premature deterioration. When calculating the deferred maintenance exposure, a facility manager needs to undertake a facility condition assessment refer to the Asset Management Guide for a sample template. This process begins with a multi—disciplined team conducting a thorough inspection of the facility. If all systems of the facility are being included in the facility plan, the team should include an architectural representative and structural, mechanical and electrical engineers.

Where this is not practical due to budgetary constraints, qualified staff within your organisation should conduct the process. If the scope of the plan is being limited, then a representative of only those disciplines to be included is required. The scope of the plan can also be expanded to include room fixtures, fittings and equipment where knowledgeable personnel are available.

Other specialists such as gas testing specialists or roofing inspectors may also be added to the team as appropriate. In all cases, the inspectors must be experienced and knowledgeable practitioners in their field. In most cases, the inspection is entirely visual and therefore the inspectors are called upon to make value judgements by extrapolation from their observations. Where necessary, more invasive and preferably non— destructive methods may be employed to gain better insight into the condition of the facility. For ease of inspection, each discipline i.

The mechanical systems for example can be divided into eight basic components that are;. The data gathered with respect to the deferred maintenance deficiencies will include building component and sub—component which includes a sequential reference and a deficiency rating, location and description. A deficiency repair cost will be added later. The deficiency rating system is flexible and can be adjusted to meet specific project needs. Typically, a process would use a rating system from one to five based upon the relative level of disrepair and the effects on the overall facility, with one being poor to catastrophic and five being in a good state of repair.

A numeric rating of one would be for aspects that contravene code, health, and regulation or Act violations — thus requiring immediate attention. The costs apportioned for remedial repair including regional adjustments are to be provided by a quality surveyor or qualified contractor and have the capacity to be reviewed in accordance with a recognised industry building estimates publication such as Rawlinsons Australian Construction Handbook.

The purpose of undertaking this procedure is to identify the true cost exposure for the various funding bodies and also gather valuable baseline data for the formulation of a fully integrated asset management plan. When applicable, the analyst is to consider de alternatives for on—site electricity generation. Each analysis is to be based on a 20—year study period. In order to be considered as an effective investment, an energy application project should have a simple payback period of five years or less.

The analysis methodology must consider the relationship between energy—using systems. When the amount of energy consumed by one system impacts the energy consumed by another, this interaction must be carefully considered in the analysis. The accepted methodology is for the analysis to first evaluate independent systems, followed by those systems that interact.

A particularly useful reference for life cycle costing procedures is the Australian Standard for Life—Cycle Costing. The challenge in determining the best whole of life financial option is to achieve a position where the various options under consideration can be fairly evaluated. When considering various proposals, you will be faced with comparing capital and operating costs that are expended at different times.

This provides the basis to accurately judge the costs and benefits associated with various alternatives. In order to better understand the issue, examples have been provided at Each option considers the replacement of an air conditioner and factors the purchase cost and the life cycle annual maintenance and running costs. The present values chart at 36 shows the future value of a dollar at a nominated discount rate. Option one considers an air conditioner of lesser quality that requires replacement at more frequent intervals and has a higher annual running and maintenance cost.

Conversely, option two considers a more expensive unit requiring a lesser level of annual maintenance and running costs. Due to reliability, over the period considered 30 years option two requires replacement once at year The result demonstrates that the total present value of installing, operating and maintaining an air conditioner of the size considered is ificant over a thirty—year period.

The first form required is the Certificate of Responsibility. The report must be certified by the Project Principal and notarised by either a registered Architect or a d Professional Engineer in Australia. The analyst is to answer the question at the bottom of the form to verify that all de options in the report comply with the energy code. You can find a download link for a sample certificate of responsibility form in the resources sidebar located at the top of this part of the guidelines.

The Executive Summary is to include a brief synopsis of the purpose of the report, a summary of important findings of the report, a description of important assumptions and special de considerations used in the analysis and system selection recommendations based on lowest life cycle cost. The Executive Summary must also provide an annual energy budget for the facility based on the assumptions outlined in table 3.

The LCCA Summary Form also provides the derivation for the annual energy budget for the base case and for the facility alternatives yielding the lowest life cycle cost. The derivation of the annual energy budget should not double count energy consumption data, such as lighting energy that is often also included in HVAC energy consumption calculations.

Specifically with regard to asset renewal, refurbishment or reconstruction projects the Executive Summary must identify the deferred maintenance backlog calculations to establish the baseline funding position. You can find a download link for the sample life cycle cost analysis summary table in the resources sidebar located at the top of this part of the guidelines.

This section defines the scope of the project refer to the following . The project identification form is divided into four topic areas including a project summary, organisation contact information, de professional contact information and special de considerations. Information that is provided is to be as complete and accurate as possible.

The Project Summary section includes general information about the facility such as the location as well as specific building de information. Many of the items are self— explanatory and some only require a yes or no answer, however, an explanation for a few of the items is provided below. De constraints that affect system alternatives selection must be documented here as well as in the report. This section should also include a statement of the analysis objective, operating and support scenarios, assumptions, constraints and alternative courses of action considered.

You can find a download link for the sample project identification table in the resources sidebar located at the top of this part of the guidelines. The Assumptions Form Table 4. Information that forms the basis for inclusion on the assumptions form considers the expected recurrent operating cost for the LCC and briefly identifies how the building de has been managed to reduce these costs or enhance service provision. Assumptions regarding initial energy rates used in the analysis are also to be provided.

The energy rates should be entered for both summer and winter as applicable. On—site electricity generation should also include information about utility buy back rates. The next area provides a location to document other assumptions made in the analysis. Examples of other assumptions include the quantity of domestic hot water used annually, maintenance costs, residual value or salvage costs.

The final area on the Assumptions Form provides a location to document references used. These references include, but are not limited to, those used to perform calculations and those used to estimate construction costs. Additional s may be added as necessary to list all of the assumptions and references. You can find a download link for a sample assumptions form in the right sidebar located at the top of this part of the guidelines. The analysis of each option must consider all of the phases associated with the development and delivery of the project and include costs associated with:.

An example of the Life Cycle Cost Analysis model is appended at s 26 to The LCCA has been formed on the basis of the following conventions and concepts. The base convention is that the model provided by DSR does not incorporate any direct capital costs.

Seeking a total life sub

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Seeking a total life sub