LIFE CYCLE COST PRACTICES IN INDONESIA

• Main Author: RAHMI HALIDA - NIM : 25015060 , AULIA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25928
• Institution: Institut Teknologi Bandung

<p align="justify">Sustainable concept in construction industry has given lots of benefits for the owner, user, and environment. However, its development is not as fast as expected because sustainable practices paradigm in construction industry still coonsidered as cost increasement as it will decrease the incomes as well. Whereas, the cost incurred in the beginning of the building’s life cycle will be repaid with the results that it gives such as resource efficiencies, increase in productivity, and lowering its risks throughout the building’s usage life. Integrating Life Cycle Cost (LCC) Analysis in life cycle cost estimation becomes more important in order to improve chances to get the best value of money throughout its life cycle by considering all aspects and alternatives that follow. In some other countries, life cycle cost analysis have been applicated while Indonesia has started developing green building regulations since 2009 and the outputs are Permen PUPR no. 2 2015 about Green Building and Permen PUPR no. 5 2015 about Sustainable Infrastructure. Considering the benefits of life cycle costing for sustainability implementation, it is needed to do more research about how life cycle cost analysis had been done around green building projects. This study itself has a purpose to review about the practice of life cycle cost in Indonesia’s construction industry and done by interviewing 6 respondents that are experienced in green building projects which are 2 Owners, 1 Design Consultants, 2 Contractor, and 1 Green Consultant. From this study we can conclude that all parties involved in each stage of the cycle already understand about the importance of life cycle cost and its impact on alternatives selection throughout the cycle even though there are no regulations about life cycle cost in Indonesia. However, there still practices differences among them that caused by each’s purpose in doing life cycle costing that’s not all about helping the owners to improve the life cycle cost estimation to be more accurate.other than that, the life cycle cost calculation only considered until operational stage, not until demolition stage. Other things that needs to be noticed that all of the respondents have not done the risk analysis and its consequences to cost have not been calculated in details. <p align="justify">