ECONOMIC ASSESSMENT OF ENGINEERING SOLUTIONS IN LIFE CYCLE COST MANAGEMENT OF CAPITAL CONSTRUCTION FACILITIES

Abstract

The article examines organizational and economic approaches to the evaluation of engineering solutions in the design, construction and operation of capital construction facilities. The relevance of the study is due to the fact that the traditional choice of design solutions is mainly based on minimizing initial capital costs and does not fully take into account future costs for operation, maintenance, repair, modernization and elimination of the consequences of technical failures. The necessity of applying the concept of life cycle cost (Life Cycle Cost, LCC— in the construction engineering system is substantiated. The components of the life cycle cost and the factors determining the economic efficiency of engineering alternatives are systematized. An organizational and economic model for evaluating engineering solutions is proposed, combining the analysis of capital and operating costs, discounting cash flows, risk assessment, residual value and prevented damage. A system of indicators for the selection of engineering solutions and an algorithm for managing the cost of the life cycle of an object has been developed. It is concluded that the application of the LCC approach provides a transition from minimizing the initial cost of construction to optimizing total costs and increasing the long-term efficiency of capital construction facilities.