The Research On Activity-based Life Cycle Costing Of Construction Project

Since the thought of life cycle cost management is brought up in 1970's, people have already developed a lot of methods and models on Life Cycle Costing including Probability Theoryand Monte Carlo simulation, Fuzzy Mathematics, Neural Networks etc. But there are three fundamental problems not to be solved in these models. The first problem is the calculation problem about construction cost. At present, construction cost in models is assumed to be known, but the clear answer about how to calculate construction cost isn't be given. The second problem is on operational and maintenance (O&M) cost. Cost breakdown structure of O&M cost is too simple to give the actual results. The third problem is on the theory base of life cycle costing. Life cycle cost (LCC) consists of construction cost and O&M cost. Both construction cost and O&M cost are formed by consuming and possessing resource. Whereas consuming and possessing any resource are formed by correlative activities. So life cycle costing of construction project should begin with activity breakdown and activity analysis methods of project. Then LCC of construction project can be calculated according to the special condition of project activity. Further more, the goal of LCC control can be achieved by reasonable reducing the project activity.Firstly, this thesis makes some research about background of Activity-based Life Cycle Cost (ABLCC) of construction project, and discusses the disadvantages of calculating the construction cost, and then summarizes the objective, meaning, content, method, speciality of this research.Secondly, this thesis introduces foreign and domestic research actuality about Activity-based costing (ABC), Life Cycle Costing and ABLCC, and summarizes the advantages of ABLCC. Then it defines ABLCC, resource, cost driver etc.Thirdly, this thesis discusses the theory of ABLCC. On the one hand, this thesis measures off the phase of construction project and according as the theory of the phase, we can gain the calculating model and framework of Life Cycle Costing. On the other hand, it discusses Cost driver and activity hierarchy, and then brings forward the thought of using ABC in the calculation process.Fourthly, this thesis mainly analyses the impact of cost drivers on construction cost and O&M cost of construction project. At first, it defines cost driver. Then, through two cases, it analyses resource cost driver and activity cost driver, and discusses the impact on construction cost and O&M cost of construction project. At last, it discusses the impact of cost drivers on Life Cycle Cost of construction project.Fifthly, this thesis analyses the uncertainty on construction project with Monte Carlo method. Then, we can improve the veracity of ABLCC.Lastly, this thesis ends with a study case in order to explain the steps of ABLCC.And we can calculate the ABLCC of construction project with the certain method and Monte Carlo method.