Whole Life Costing in the United Kingdom

1. Whole Life Costing in the United Kingdom Michael Byng FRICS AAIQS ACIArb MPWI Chairman RICS Quantity Surveying & Construction Faculty 2006 Construction Cost Management International Conference Shenzhen China

2. 英国的全生命成本计价 麦克·彬 英国皇家测量师协会工料测量及建筑部主席 英国皇家测量师协会会员 澳大利亚测量师协会会员 英国注册仲裁协会会员 英国铁路协会会员 建筑成本管理国际研讨会 中国 深圳 2006.05 2006 Construction Cost Management International Conference Shenzhen China

3. What is whole life cycle costing?什么是全生命成本计价计价? • “….a tool to assist in assessing the cost performance of construction work, aimed at facilitating choices where there are alternative means of achieving the client’s objectives and where those alternatives differ, not only in their initial cost but also in the subsequent operational costs” • Definition from the emerging ISP Standard 15686 on service life planning “(全生命成本计价)是一个协助评估建筑工程成本表现的工具。旨在对达到业 主目的的多种不同质的可选择手段提供一个便利比选的方法。其不仅考虑建设期的成本，而且要考虑建成投产后运营使用的成本。” -摘自《the emerging ISP Standard 15686 on service life planning》 2006 Construction Cost Management International Conference Shenzhen China

4. Why - whole life cycle costing? (1)为什么要全生命成本计价? “Increasingly, clients are taking the view that construction should be designed and costed as a total package, including costs in use and final decommissioning” • Construction Task Force Report - “Rethinking Construction” “越来越多地，业主接受这样的观念—建筑应该作为一个完整生命体，即包括使用期的成本和最后拆除的费用—去设计和核算成本。” -摘自《 Construction Task Force Report 》之“建筑业的再思考” 2006 Construction Cost Management International Conference Shenzhen China

5. Why - whole life cycle costing? (2)为什么要全生命成本计价? • In the UK and elsewhere in the European Union, public authorities are turning to Private Finance Initiative (PFI) or Public Private Partnership (PPP) routes to deliver new building and infrastructure programmes and associated services. 在英国和其它欧盟国家，政府正在转向采用民营资本先投入（ PFI）或政府民营合作伙伴（ PPP）的途径去提供新的公共建筑、基础设施和其它服务。 • Elsewhere in developing countries, where these is insufficient revenue from current taxation, governments seek to make use of PFI and PPP methods to deliver projects on a deferred payment basis. 在其它发展中国家，由于其当前的税务体制下的财政收入不足，政府寻求运用PFI 和PPP的方式分期付款地去兴建项目。 • In these areas, PFI/PPP techniques are being applied to health, education, security and road and rail transportation programmes. 在这些地区， PFI 和PPP策略被广泛运用于卫生、教育、安全、道路及铁路交通等发展计划。 • The key factors in making the award of these contracts are the operational cost of running the facilities, the condition of the asset on termination and the operating agreement and/or the cost of decommissioning or disposal. 应用PFI和PPP协议的关键因素是：设备运行成本、资产最终状况、操作协议、拆除和废物处置成本。 2006 Construction Cost Management International Conference Shenzhen China

6. What are the benefits to clients?什么是业主的好处? • WLCC 全生命成本计价 • Encourages the bidder to analyse the client’s business needs by the bidder who communicates them to his project team. 通过投标人与业主项目组的沟通,鼓励投标人分析业主的需求。 • Evaluates the alternative cost of ownership (construction, purchase or renting) over the whole life of the asset (s). 对各种可选择的资产权属关系（兴建、购买或租赁），评估其全生命成本。 • Optimises the total cost of ownership by balancing initial capital and running costs. 通过比较初期投入资本和后期运行费用，对相应权属关系的总成本进行优化。 • Analyses the risks and costs of functional performance due to failure of maintenance. 分析由于维护不当引起的功能损失的风险和成本。 • Promotes realistic budgeting for operation maintenance and repairs. 为运行期的维护和修理提出切实可行的预算。 • Encourages discussion and recording of decisions about durability of materials and components at the outset of the project. - 鼓励讨论并记录在项目开始时对材料和构件的耐久性所作的决定。 • Provide a “Value for Money” approach to project solutions. 对项目的解决方案提供“经济合理性”评价 • Provides data on actual performance and operation compared with predictions as a benchmark for future projects. 提供实际使用表现的数据与预期指标相对比, 并以此数据作为未来项目发展的依据。 2006 Construction Cost Management International Conference Shenzhen China

7. Culture changes required to realise the benefits认识业主利益要求相应的文化改变 • Make WLCC part of the procurement brief. 把全生命成本计价作为采办策略大纲的一部分。 • Spend more time earlier in the project, with designers and constructors to review data and agree results. 在项目的早期，多花点时间与设计师和承建商分析数据和商量结果。 • Ensure that the results are presented with an indication of the sensitivity of variables. 确信这些结果表现了可变因素的敏感性指征。 • Log decisions on durability are available for feedback on events during operation. 耐久性的决定日志可供运行过程中回顾。 • Ensure that procurement decisions are linked to Health & Safety file and to operating and maintenance documents at handover from the acquisition to the use and maintenance stages. 保证采办方式的确定从取得到使用直至维护阶段,都符合”健康与及安全守则”和竣工移交后的”运行与维护指引”。 • To conclude: • Make WLCC as a decision making tool in procurement。 结论：以全生命成本计价作为采办方式决策的工具。 2006 Construction Cost Management International Conference Shenzhen China

8. To be effective, WLCC must be applied at the all phases of construction. During the initial appraisal and the decision to purchase or lease. Feasibility assessment of alternative construction solutions; these include replace and/or maintenance over the life of the asset. In outline design During the choice of components in detailed design. In bid appraisal Assessment of proposed construction change orders. Effectiveness of construction on occupancy evaluation。 为达到目的，全生命成本计价理论须运用于建设全过程的各个阶段： 在前期评估和决定购买或租赁时； 在选择建设方法的可行性评估时，包括资产整个生命期间的重置和/或维护； 在概念设计时； 在详细设计阶段选择设备部件时； 在评标时； 在评价建议的施工变更指令时； 在使用阶段评估建筑物的效应。 WLCC – when?何时考虑全生命成本计价？ 2006 Construction Cost Management International Conference Shenzhen China

9. Phases in Construction life建筑生命期的划分 • Based on draft ISO15686 – 5 根据草案ISO15686-5 2006 Construction Cost Management International Conference Shenzhen China

10. Acquisition – Costs to consider获得-应考虑的费用 • By construction建设 • Site costs; purchase, clearance and preparation土地购买、清理和准备 • Design设计 • Construction施工 • Commissioning/handover移交 • Transaction costs – fees转让费 • In-house administration and costs内部行政管理和费用 • By purchase/renting购买/租赁 • Purchase price购买价格 • Cost of purchase/adaptation购买/改造的费用 • Transaction costs – fees转让成本/相关费用 • In-house administration and costs内部行政管理和费用 2006 Construction Cost Management International Conference Shenzhen China

11. Costs成本 Management costs; cleaning, energy utilities, janatorial services, land and grounds including landscaping 管理费用，包括清洁、能源、设备、服务、景观 Maintenance; commissioning or fitting out 维护，佣金和装修 Repairs and renewals “churn costs” 维修和翻新各种费用 Income收入 Receipts of ownership of the asset 资产权益收入 Rents from surplus space (less any loss of income during interim refurbishment or failure of facilities) 富余空间出租收入（减去室内装修或设备故障期租金损失） Use and Maintenance – Costs and income使用与维护-成本和收入 2006 Construction Cost Management International Conference Shenzhen China

12. Costs支出 Disposal including demolition, 废物处理，包括拆除 Obligation under repairing obligation under leases修复义务和租赁责任 Site clean up, decontamination场地的清理；污染物的清除 Costs of sale销售费用 Income收入 Sale of interest in asset. 资产权益的出售 Sale of materials for recycling 可回收使用材料的出售 Disposal – Costs and income废物处理-支出和收入 2006 Construction Cost Management International Conference Shenzhen China

13. Why consider these costs and with whom?为什么考虑这些费用及由谁来考虑？ • In the UK, the Construction Client’s Form said:- • “(we) want whole life (cycle) costs to be appraised and the supply chain to commit themselves to build on time, budget and quality and provide genuine value for money throughout the life of the construction” Constructing Improvement – The Client’s Pact with the Industry 在英国，建筑业的业主说： - “（我们）希望（建筑物）整个生命周期的成本被评估，供应链能履行诚诺按约定工期、预算、质量将项目完成，提供能贯穿建筑物终生的真正物有所值的产品。 建筑业的成就—业主与行业公约 2006 Construction Cost Management International Conference Shenzhen China

14. WLCC – Key decisions (1)全生命成本计价—关键决定 • Client involvement in the process – Setting the whole life span 业主全程参与-设定建筑物的寿命 • To agree the decision on the required life span of the asset. 同意关于建筑所要求寿命的决定 • The balance required between capital and running costs. 建设成本与运营成本间的平衡 • The maintenance strategy; planned or reactive? 保养维护的策略—预先计划或随机应变？ • Fall back plans to mitigate the effects of premature failure of components or loss of functionality 缓和构件潜在失效或功能丧失的影响的补救计划。 “Client’s should seek to evaluate all tenders on the basis of quality, likely cost-in-us and known past performance as well as (bid) price” Sir Michael Latham’s report – “Constructing the Team” ”业主应在比较投标报价的同时，设法在质量、使用期可能发生的成本和过往表现等方面上评价各个标书。“ 迈克.雷森爵士的报告—”缔造队伍” 2006 Construction Cost Management International Conference Shenzhen China

15. WLCC – Key decisions (2)全生命成本计价—关键决定 • Project team involvement in the process – Setting the cost parameters. 项目组全程参与—设定成本核算的参数. • Considering relationship between capital and operating costs. 考虑投资成本与运营费用之间的关系。 • Setting realistic levels of costs and receipts. 设定成本和收益的实际水平。 • Reviewing allowances to be made future inflation. 检讨未来通货膨胀的幅度。 • Agreeing discount rates to calculate NPV (Net Present Value); NB in publicly procured schemes this rate is set by the Treasury. 商定计算净现值的折算率。注意：在公共生产部门这个比率由英国财政部厘定。 “Members seek objective value based sourcing throughout the supply chain by establishing and implementing selection criteria designed with business objectives and understood by suppliers” Construction Round Table – Agenda for Change 通过供应连，让项目组建立，执行和理解设定的商业目标，以达到业主寻求的目标和价值。 班 2006 Construction Cost Management International Conference Shenzhen China

16. Criteria to review – The need to define functional requirements. Consideration of alternative forms of construction Buy or build or repair or adaptation of existing assets. Review client’s priorities to achieve the required rate of return on capital investment. Length of design life or in the case of PFI/PPP, the length of the concession 检查的准则- - 功能性要求的定义 - 建筑形式的选择 - 购买、兴建、修复或改造使用现成的建筑 - 检讨达到要求资产回报率关键要点 - 设计寿命，或在PFI/PPP情况下协议 商定的建筑寿命 Assumptions required to satisfy these criteria 满足检查准则的假定； Performance requirements for the completed projects. 项目表现要求； Timing of cost and income flows and period between review or re-appraisal 成本的时效性、收入流 及回顾与 再评估的时间间隔； Programme of major component repair or replacement during the project life. 在项目生命期内，主要部件修复或置换的计划； Cost of alternative fuels. 使用不同燃料的成本。 A step by step project appraisal guide (1) – Initial Investment Appraisal项目评估分步指引—初期投资评估 2006 Construction Cost Management International Conference Shenzhen China

17. A step by step project appraisal guide (2) – Design and construction appraisal项目评估分步指引— 设计与建造评估 • Prepare WLCC plan; develop and refine with design development. 准备全生命成本计价计划，并随设计发展逐步优化. • Involve the supply chain in all decisions; contractors, suppliers and manufacturers. 将供应链考虑在内: 承建商, 供货商 和工厂. • Define components requiring long life and those for which a short life is required. 定义要求长期使用和短期使用的构件。 • Include WLLC criteria in construction procurement documents. 将全生命成本计价评价准则包括在采办大纲文件中。 And • Develop WLCC with the design and the overall investment plan, gradually replacing historic data with accurately predicted costs. 配合设计进展和总体投资计划,逐步用准确的预测成本取代全生命成本计价的历史数据。 2006 Construction Cost Management International Conference Shenzhen China

18. A step by step project appraisal guide (3) – Completion and post-occupation appraisal项目评估分步指引—竣工和使用评估 • Develop the WLCC plan to include: - • Durability information • Reconciliation of maintenance profile with asset design life. • Anticipated whole life costs of components and services. 修订全生命成本计划,包括: - 耐久性资料 - 按建筑设计寿命调整维护指引 - 预测构件及设备的全生命成本 • Monitor the performance and cost of the completed construction to highlight: - • Variations from cost predictions • Effects of the variations on operating and maintenance plans. • Increases in the cots of major periodic replacement of major repair of assets. • Over-cautious of optimistic durability or cost estimates. 监测已交工项目的表现和成本,着重: - 在成本预测范围内的变更 - 变更对营运和维护计划的影响 - 建筑主要维修和更换费用的提高 - 特别留意耐久性的估计和成本的估算 • For major refurbishment works, assess:- • Residual service life of retained assets. • Remaining service life of assets and • Validity of original design life when set against achieved service lives. 对大型翻新工程,评估; - 被保留建筑的剩余使用寿命 - 保留设备的可使用寿命,和 - 当达到设备服务期时，原设计寿命的有效性 2006 Construction Cost Management International Conference Shenzhen China

19. A step by step project appraisal guide (4) – Disposal appraisal项目评估分步指引—废物处理评估 • The end of service life:- • As planned, sale or demolition; NB in PFI/PPP projects there are contractual obligation to transfer the assets in a pre-agreed condition. • Early obsolescence not predicted or brought about by unforeseen circumstances. • Unforeseen opportunities; early sale delivering benefits in place of the cost of demolition and environmental refurbishment 服务期的结束: - 按计划,出售或拆除.注意:在PFI/PPP项目中有按预定条件让度资产的合约义务. - 没有预测的提早退化. - 没有预测的机会:提早出售带来的衍生收益多于拆除和恢复环境的开支. 2006 Construction Cost Management International Conference Shenzhen China

20. WLCC – Use in the UK全生命成本计价在英国的应用 • BRE/DETR survey 1998 found that:- “Despite the recognised benefits, whole life costing is currently only used by 25% of construction clients” 1998年BRE/DETR调查发现— “尽管已认识到好处, 全生命成本计价理论仅被25%的建筑业业主所应用.” • Since then, due to the ever increasing influence of public sector procurement by PFI/PPP means, the use of WLCC is applied to all publicly procured projects of over £10 million (sterling) in value and to all PFI/PPP projects. 自始,由于政府部门PFI/PPP采办方式的影响日益提高, 全生命成本计价理论已广泛应用于造价超过£10m的各种公益项目和全部的PFI/PPP项目中. 2006 Construction Cost Management International Conference Shenzhen China

21. Whole Life Costing in the United Kingdom Michael Byng FRICS AAIQS ACIArb MPWI Chairman RICS Quantity Surveying & Construction Faculty Thank you, questions please michael.byng@michaelbyng.com 2006 Construction Cost Management International Conference Shenzhen China