Educate your Owners: Total Cost of Ownership & APPA TCO 1000™

APPA, the BCxA’s partner in developing the Building Commissioning Handbook (third edition 2017), has established a framework for owners of facility assets to identify, track and manage costs over the full life cycle. APPA TCO 1000™ is a recently ANSI-accredited APPA Standard for Facilities Asset Management.

It provides decision-making tools for new construction and existing building planning, investment, and project implementation across the owner’s portfolio (in APPA’s case, higher education). For example, should the owner retrofit, repair or replace? What are the consequences of each decision? How can you help your owners strategically analyze first cost vs. a facility’s (and portfolio’s) life span?

According to APPA, “TCO also includes the cost of accurate handover of data to the owner, including commissioning, which validates that this was the facility purchased and that it is performing as contracted. The owner needs to be able to accept and use the information for the life of the facility.

It also includes the cost of operating and maintaining the facility, which is typically accounted for over time … TCO includes the cost of disposal and any reclamation … Finally, the implementation of TCO includes business processes to capture life-cycle knowledge to be applied on future projects to refine the model, another completely overlooked facet.”

For more information, watch APPA’s June 6th 2019 videos explaining how to apply the Standard in your market – APPA 1000 Key Principles (Part 1) and Implementation (Part 2), presented by TCO co-chairs Deke Smith, DKS Information Consulting, and Ana Thiemer, University of Texas Austin.

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