A more comprehensive breakdown of whole life costs: Pre-acquisition costs Acquisition costs and design purchase price • specification • allocation delivery charge • budget • preparation and issuing of invitation to insurance and taxes (inc. import duties, • • tenders etc) cost of tender evaluation installation and commissioning • • cost of letting contract training and support • • preparation for receipt of the requirement internal costs associated with changing • • professional external advice (eg. legal) from the incumbent supplier (which should • be identified prior to tenders being received) integration of systems • storage requirements • Operating costs Maintenance costs labour specialist labour • • materials specialist tooling • • consumables spare and replacement parts • • energy supply and consumption reduced output with age • • contract and supplier management frequency of maintenance and • • transaction costs recommended • environmental costs downtimes • cost of change, for instance, a decision to servicing and inspection regimes • • use alternative materials Downtime costs End of life costs lost profits safe disposal • • extra costs of overtime or sub-contracting re-sale • • costs associated with breakdown of ongoing liabilities • • equipment decommissioning • claims resulting from non-performance removal for sale or scrap • • re-instatement of land or buildings for • alternative use
A more comprehensive breakdown of whole life costs: Pre-acquisition costs Acquisition costs • specification and design • budget allocation • preparation and issuing of invitation to tenders • cost of tender evaluation • cost of letting contract • preparation for receipt of the requirement • professional external advice (eg. legal) • purchase price • delivery charge • insurance and taxes (inc. import duties, etc) • installation and commissioning • training and support • internal costs associated with changing from the incumbent supplier (which should be identified prior to tenders being received) • integration of systems • storage requirements Operating costs Maintenance costs • labour • materials • consumables • energy supply and consumption • contract and supplier management • transaction costs • environmental costs • cost of change, for instance, a decision to use alternative materials • specialist labour • specialist tooling • spare and replacement parts • reduced output with age • frequency of maintenance and recommended downtimes • servicing and inspection regimes Downtime costs End of life costs • lost profits • extra costs of overtime or sub-contracting • costs associated with breakdown of equipment • claims resulting from non-performance • safe disposal • re-sale • ongoing liabilities • decommissioning • removal for sale or scrap • re-instatement of land or buildings for alternative use
whole_life_costing.docx