Life-cycle cost analysis is a method for assessing the total cost of building ownership which includes; initial costs, energy costs, water costs, operating/maintenance costs and replacement costs. BGR Consulting Engineers can use life cycle cost analysis to compare alternative building elements or systems that fulfill the same function but differ with respect to their purchase price and operating costs. This comparison can then be used to select the product that has lowest overall cost of ownership. This type of analysis is much more accurate than simply evaluating first costs. Often even though the initial costs may be higher the operating and maintenance costs could be substantially less resulting in a net savings.

BGR Consulting Engineers recommends performing the life cycle cost analysis early in the design process since the outcome of several of the design decisions will be based on the end result. This assessment will be significantly better than focusing solely on initial costs or operating costs and will provide the design team with the conclusions from which to base their decisions.