For years, the architecture and construction industries have focused on two primary concerns in the creation of buildings. The first, of utmost importance to architects, is the design of a building. Is the building enjoyable to view and occupy? Does the organization of spaces enhance the user’s program? The client expects an architect to be able to design a building that satisfies their aesthetic and functional goals.

The second concern, the primary focus of contractors, is the construction of a building. How will the building be built? How much will the building cost? The client expects a contractor to be able to construct a sound building for the estimated construction cost. These are typically the primary concerns of a client when the idea of constructing a building is addressed, so it is no surprise that architects and contractors focus their efforts to this end. Granted, these are significant concerns, however they are not the only concerns that should be addressed when planning for the future.

A third concern that is receiving more attention as building owners investigate the economics of facility management, is the cost of building operations over the life of a building. The combination of economic theory and computer technology allows for a more sophisticated approach to the design and construction of a facility than ever before. Instead of merely looking at the facility in terms of cost to design and build, owners can broaden their perspective to include operations, maintenance, repair, replacement, and disposal costs. The sum of initial and future costs associated with the construction and operation of a building over a period of time is called the life cycle cost of a facility.