Analysis of different impact rates on the forecasts cost of building project using sensitivity analysis techniques
1 Department of Civil Engineering, University of Cross River State, Calabar.
2 Department of Civil Engineering, University of Nigeria, Nsukka.
Research Article
World Journal of Advanced Engineering Technology and Sciences, 2021, 04(01), 040–051.
Article DOI: 10.30574/wjaets.2021.4.1.0083
Publication history:
Received on 20 November 2021; revised on 29 December 2021; accepted on 31 December 2021
Abstract:
Over the years, Life Cycle Costing (LCC) has been recognized and used as an important technique for evaluating, forecasting and discounting the future costs of building to the present day value, from conception, design to completion, operation, maintenance, down to decommissioning. This work presents a study of Analysis on different discount rate of the forecasts cost of building project using sensitivity analysis techniques, the case study being Calabar International Conference Center (CICC) building project. Life cycle cost analysis was conducted and forecast for 51 years using Net present value (NPV) with the following discount rates 4%, 5%, 6%, 8%, 10%, 12% and 13% respectively. Results showed that the lower the discount rates, the higher the cost value and via vasa. The building had a positive value >0 indicating a significant benefit at the end of the study period. The percentage contribution of the discount rate on the initial cost, salvage value and the life cycle cost indicates that at 4% the initial cost accounted for 85% of the discounted cost, life cycle cost 13% and salvage value 2%. The salvage value recorded 0% at 12% and 13% discount rate The higher the discount rates the higher the discounted initial cost and the lower the life cycle cost.
Keywords:
Life cycle cost; Discount rates; Sustainability assessment; Forecasting; Building industry, Sensitivity analysis
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