Evaluation of different design options within the procurement process of the Czech public sector based on the overall economic benefit

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F68407700%3A21110%2F16%3A00301446" target="_blank" >RIV/68407700:21110/16:00301446 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Evaluation of different design options within the procurement process of the Czech public sector based on the overall economic benefit

Original language description

The procurement process of the public sector construction projects in the Czech Republic indicates strong focus on selection of the lowest bidding cost, which is very easily comparable and straightforward. However, current practice forgets or completely omits the impact of operational expenditures of the planned public asset, which ultimately negatively affects the achieved value for money. Even though the Czech law allows an option of using comparable weights for bidding, based on the overall economic benefit, this option is scarcely used. The main aim of this paper is to present Life Cycle Cost Inspector (LCCI), which is a tool for assessing a building design in regards to the whole asset life cycle and thus promoting sustainable solutions. LCCI is a quantitative comparator of the overall planned capital investment and the operational expenditures (OPEX) over a specific period of time. This method is based on dividing the selected project into separate components (e.g. heating, plumbing or ventilation) that have their own operational characteristics. Subsequently, projected cash flows are estimated over a chosen time period based Ofl preferred criteria, square meters and life span of each component. An additional feature of the comparator allows calculating vice versa, which means that the investment costs can be adjusted, based on the targeted operational performance of the asset, which could be directly specified. The overall process of operational expenditures assessment and optimization of the capital costs indicates higher value for money achieved through sustainable architecture; and thus, advocates higher initial capital cost during the tendering process. Therefore, within this research, the traditionally perceived concept of the lowest cost selection is questioned and a new perception of value for money is introduced and applied within the quantitative comparator environment.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

JM - Structural engineering

OECD FORD branch

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Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Central Europe towards Sustainable Building 2016 - Innovations for Sustainable Future

ISBN

978-80-271-0248-8

ISSN

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e-ISSN

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Number of pages

7

Pages from-to

709-715

Publisher name

GRADA PUBLISHING

Place of publication

Praha

Event location

Prague

Event date

Jun 22, 2016

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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