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Automated Life-Cycle Costing V2 (CML)

Updated over 3 weeks ago


This guide helps you complete a Life Cycle Costing (LCC) analysis for building projects in One Click LCA using the new Life-cycle cost (ISO 15686-5 and EN 16627) - CML V2 tool.

The new LCC tool can be used independently or together with Life Cycle Assessment (LCA) and introduces more detailed cost categorization, improved transparency, and updated cost databases. This tool is designed for building projects only. Infrastructure projects are not supported in this version.

The tool supports automated life cycle cost calculations aligned with recognized life cycle costing principles and reporting structures. It replaces earlier cost tools and will become the standard LCC workflow for buildings in One Click LCA.


The Life Cycle Costing Tool (Version 2) is compatible with the EN 16627 and ISO 15686-5 standards and is designed to work only with building LCA-related data, quantities, and operational inputs either imported directly into the LCC tool or shared automatically from a building LCA project. The tool relies on regional reference cost databases, applying average market unit costs for materials and labor, adjusted using regional cost indices, inflation, and discount factors defined in the LCC parameters.

So far, this version of the tool does not support TRACI or +A2 data.


How to complete your assessment, step-by-step

Set your LCC study parameters

When you activate the LCC tool for a project, the LCC parameters are automatically available. You can also access or modify these parameters from your project's main page:


These parameters are location-specific and enable automated cost calculations. Each time you change the project location, the cost parameters are updated accordingly.

The LCC parameters control:

  • Regional cost data

  • Cost calculation assumptions

  • Discounting and inflation

  • End-of-life cost shares

Review and adjust these parameters as required for your project.

- Firstly, set the relevant Cost Database and Regionalization according to the project's location. The second version of the LCC tool uses a central reference cost database as the starting point for all calculations, with unit costs that represent average market prices for materials and labour. These reference costs are not used directly as-is; instead, they are regionalised based on the selected project location.

When a location is set or changed, the tool automatically loads the appropriate regional parameters and applies regional multipliers, such as labor rates and material cost indices to adapt the base costs to local market conditions. This ensures that the same material or building element can have different costs depending on where the project is located, while still maintaining a consistent and transparent calculation logic across regions.


- You can also choose an applicable currency exchange rate to match your preferences or the currency of the country/region selected above.


- The Regionalised Cost Index works as a multiplier applied to the default material or labor costs in the database. The tool first takes the reference unit cost for a material or labor cost from the cost database (for example, an average national price). This base default cost is then multiplied by the regional cost index to reflect local market conditions. If the index is 1.00, the cost remains unchanged; if it is higher than 1.00, the material cost increases; if it is lower than 1.00, the cost decreases. In this way, the same material automatically becomes more or less expensive depending on the project location. The index is populated automatically based on location, but can be adjusted if you have project-specific data that better represents local pricing.


- The Discount factor (capital cost) and inflation define how costs evolve and are compared over time in the LCC calculation. Inflation represents the expected annual increase in prices and is applied separately depending on the cost type: a general inflation rate is applied to all resources except energy and water, while specific inflation rates are applied annually to energy and water resources to better reflect their market behaviour. These inflation rates increase future costs in nominal terms. The discount rate (cost of capital) is then applied annually to convert those future, inflated costs back to present value, allowing costs occurring at different points in the building’s life cycle to be compared on a time-equivalent basis. The tool first applies inflation to future costs and then discounts them, which is why nominal (undiscounted) and discounted results differ. If an inflation rate is set to zero, nominal and real (discounted) costs will be equal for that resource type.

- End Of Life costs are calculated using a simplified, percentage-based approach rather than modelling each demolition or disposal activity in detail. Instead of requiring separate inputs for every material at the end of life, the tool takes the total capital costs from stages A0-A5 and applies a predefined percentage share to estimate end-of-life costs. This percentage represents typical costs related to deconstruction, demolition, waste handling, and disposal. The default percentage values are provided in the LCC parameters and can be adjusted if you have project-specific information or local guidance that suggests a different end-of-life cost level.


​If your LCA calculations are already complete, LCC results will be generated automatically once the calculation period is set. However, you should always review and adjust the LCC inputs and parameters to reflect any project-specific cost information before finalising the results.

Conduct your LCC Assessment

1. Define Pre-construction Costs (A0)

Pre-construction stage costs (A0) are included under Other capital costs.

You can enter costs such as:

  • Land purchase

  • Permits and licences

  • Planning, design, and supervision

  • Soil studies and similar preparatory activities

If a specific cost item is not available in the dropdown list, select Other costs and describe the cost element in the comment field. These costs are treated as one-off capital expenses at the start of the project life cycle.


2. Add Construction Material and Installation Costs (A1–A5)

Construction costs (A1–A5) are primarily included via Building materials.

  • Materials and quantities can be imported automatically or added manually

  • If an LCA has already been completed, materials, quantities, and service lives are automatically shared with the LCC tool

  • Default average unit costs for materials and associated labour costs are applied from the cost database

Each material cost is built up from:

  • A reference material unit cost

  • Associated labour cost (which can vary significantly by element, e.g. elevators)

  • Aggregation into detailed L3 cost categories

  • Multiplication by regional cost indices and other parameters

You can overwrite unit costs or enter a total cost if project-specific data is available.


If you have cost data at the building element level rather than the material level:

  • Set the material total cost to 0

  • Add the element cost under Other capital costs → Construction costs

  • Clearly label the element in the comment field (e.g. “External windows and roof lights”)

Important: Service life must be defined for materials to enable correct replacement cost calculations.

Any changes made to quantities, units, or service life in LCC will also affect the LCA model (and vice versa).


3. Review L3 Cost Categories and Descriptions

The second version of the LCC tool introduces a much more detailed L3 cost category structure than earlier tools.

Each L3 category:

  • Aggregates material and labour costs

  • Includes an AI-generated description explaining:

    • What is included

    • The pricing basis

    • What is excluded (e.g. high-end or designer products)

These descriptions help users understand assumptions behind the costs and interpret results correctly.


4. Include Maintenance, Operation, and Repair Costs (B1–B3)

Maintenance, operation, and minor repair costs are included under Other operating costs.

  • These costs are typically calculated based on building area

  • If you know the lump-sum cost for an item, set the quantity to 1 and enter the total cost

Examples include:

  • Cleaning

  • Minor repairs

  • Routine maintenance activities

5. Calculate Replacement and Refurbishment Costs (B4–B5)

Replacement and refurbishment costs are calculated automatically based on:

  • Material service lives

  • Associated material and labour costs

  • Discounting to present value

Service life values are taken from the LCA settings by default but can be adjusted if needed. When a material reaches the end of its service life within the calculation period, the tool automatically schedules and costs its replacement.


6. Include Operational Energy and Water Costs (B6–B7)

Operational energy and water costs are calculated using:

  • Annual energy and water consumption values

  • Default unit costs from the database

If LCA is used, consumption values are shared between LCA and LCC. You can:

  • Adjust unit costs

  • Enter known annual or total costs directly if project-specific data is available

Separate inflation rates are applied for:

  • General resources

  • Energy

  • Water

7. Apply End-of-Life Costs (C)

End-of-life costs (C1–C4) are calculated using a percentage-based approach.

Instead of modelling demolition and disposal in detail, the tool:

  • Takes total capital costs from A0–A5

  • Applies a predefined percentage share to estimate end-of-life costs

These percentage values are defined in the LCC parameters and can be adjusted if project-specific or local guidance is available.


8. Review and Analyse Results

Once all inputs are defined and the calculation period is set:

  • Results are available on the Results page

  • Costs are shown as:

    • Discounted (present value) results

    • Nominal (undiscounted) results including inflation

You can download the Life Cycle Cost report from More actions in the Results view.


9. Interpret Results Using Discounting and Inflation

Discounting and inflation settings defined in the LCC parameters determine how future costs are treated.

  • Inflation increases future costs in nominal terms

  • Discounting converts those future costs back to present value

  • Both result views use the same inflation assumptions

This allows meaningful comparison of costs occurring at different points over the building’s life cycle.

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