Whole life costing
Consider the Bigger Picture, a saving made at initial purchase can be quickly washed away by higher running costs
Whole life costing is an investment appraisal and management tool which assesses the total cost of an asset over its whole life. It takes account of the initial capital cost, as well as operational, maintenance, repair, upgrade and eventual disposal costs. Whole life costing can also factor in related income streams, where appropriate.
Guidance from both HM Treasury and the Department for Communities and Local Government recognises the value of adopting a whole life cost perspective when appropriate.
The wider application of WLC includes smaller asset purchase decisions as well as reviewing assets at various stages of their useful life.