Management of the LCC considering industrial construction life cycle contracts

Abstract

Currently the most urgent problem is increasing the efficiency of industrial construction in the green-field and brown-field formats. Introduction of the development method is a typical organizational form of industrial construction management. The method of program management is its variety. The article deals with the analysis of up-to-date strategic aspects of industrial property management. An important task is to create territorial and reproduction systems of industrial property based on life cycle cost (LCC) management. The paper describes the methodical approach to the evaluation of the life cycle cost of industrial property ownership. The evaluation covers the entire life cycle of the property item, from the stage of land development to finished item operation. It is proposed to use life cycle contracts for the development to increase the efficiency of industrial property management. The comparative analysis of life cycle contracts and similar contracts and subcontrator agreements in the area of construction concluded in the territory of Russia showed certain advantages of this approach. The article describes an approach to modeling of an efficient portfolio of industrial development orders. Results of modeling of the structure of the life cycle cost of industrial property ownership as the passive part of fixed funds by functions and stages for the estimated ownership cycle equal to 50 years are presented. Based on the research results the final life cycle cost of ownership for the end user – a resident or owner of the industrial park (IP) industrial property – is determined.