Comparative life-cycle cost (LCC) study of green and traditional industrial buildings in Sri Lanka

Abstract

The demand for green buildings is growing, but the trend is below the expected level due to the perceived higher construction cost required by building investors. In addition, the industry or the practitioners knowledge and awareness of major operational cost savings of facilities is questionable. on that note, this study aims to establish the cost implications of green buildings via a comparative life-cycle cost analysis of two green certified industrial and one traditional building. The industrial sector is one of the largest energy consuming sectors in the world with over 50% of the world’s total delivered energy is absorbed by the sector. Energy consumption of industrial sector is likely to increase more due to the economic and population growth. The data for the analysis were extracted from construction, operation, and maintenance expenditure budget records of the selected organisations. The analysis shows that in terms of life-cycle costs, green industrial buildings are 17% cheaper than that of traditional buildings. Though the initial construction cost of a green industrial building is 29% higher, the operation and maintenance costs of green buildings result in 23% and 15% overall savings throughout the life cycle. The findings provide further empirical proof of the benefits of green buildings, especially in industrial manufacturing where it is expected to improve future uptakes and consequently the achievement of sustainable development initiatives.