Tendering Based on Life Cycle Cost and Life Cycle Analysis

Abstract

<p>Construction projects have high social and environmental costs by nature. A tendering procedure including estimation of the environmental life cycle cost in awarding a contract can facilitate best engineering solutions along with least damage to the environment. Basing the award criteria to the life cycle cost (LCC) and life cycle analysis (LCA) can be made by calculating the total CO2e emissions of a project, then pricing and including this cost in the tender price. As application of sustainability principles is crucial at the design stage, it is proposed to include cost of CO2 in the BOT projects and public residential projects where there is a developer-contractor responsible from the design as well as the construction of the facility, so an effort will be made to reduce bid price, hence CO2 price and emission. In this study, effect of CO2 price level on different types of projects are investigated to understand applicability of the procedure for public projects.</p>