The importance of using 'Life-cycle cost analysis' (LCCA): In public procurement of construction objects

Abstract

Life-cycle cost analysis (LCCA) is a new tool in public procurement used by governments all over the world, with the aim of establishing sustainable public procurement. In this paper, LCCA is analyzed in the light of the European Union efforts to establish a mechanism of sustainable public procurement in order to promote green construction, environmental protection and to establish economic and social sustainability. Special attention is paid to the procurement of construction objects, bearing in mind that the construction industry is the largest polluter of environment but also the industry that employs the largest number of people in the world. This paper also analyzes the advantages of using LCC analysis, difficulties in the process of its implementation and the current legislation in the European Union and the Republic of Serbia.

Keywords

• life-cycle cost analysis (LCCA)
• sustainable public procurement
• environmental protection