All costs associated with manufacturing and construction are referred to as "lifecycle costs." This includes initial costs, running costs, repair costs, management fees, and demolition costs.
The breakdown of life cycle costs consists of six components: construction costs, operating costs, utility costs, repair costs, management costs, and disposal costs. Construction costs include planning and design costs, material costs, manufacturing costs, transportation costs, and on-site construction costs. On the other hand, operating costs include security costs, cleaning costs, and maintenance and inspection costs. Utility costs encompass expenses for water supply and sewage, gas, electricity, and so on. Repair costs require expenses for regular maintenance, equipment and parts replacement, and repairs. Management costs include operating costs, taxes, and insurance costs. Finally, disposal costs involve expenses related to demolition.
Initial costs account for about 20-25% of the total for many structures and products, which is surprisingly low. However, the composition of running costs can vary significantly depending on the use, and renovation and repair costs may exceed construction costs.
Large structures, such as bridges, were built in large numbers during the period of rapid economic growth, but they are now aging. Since it is not realistic to replace all buildings with new ones, appropriate renovation and repair work is crucial. To ensure safe use over a long period, it is necessary to properly understand and manage life cycle costs.