The Conceptual Model of Activity-Based Life Cycle Cost in Public University Building Facilities Maintenance

Abstract:

Maintenance  costs  in  public  university  buildings  are  increasing  every  year. Building  maintenance  activities  have become  increasingly  crucial  and  the  management of building maintenance must be in an effective way as an attempt to reduce the expenditures. The  expenditures  of  public  university  building  facilities  maintenance  are  based  on  fund allocation  from  the  government  operating  expenditure  and  thus,  the  effective  way  of achieving  cost  reduction  and optimization,  became  necessary.  Life  cycle  cost  (LCC) approach  was  suggested  by  several  government  bodies in  producing  a  better  cost management  in  public  asset  management.  The  components  of  building  facilities  have variation  of  the  life  cycle  which  leads  to  the  complication  of  LCC.  Therefore,  one  of  the shortcomings in implementing LCC on building facilities is lacked of common process and activities.  The  conceptual  framework  of activity-based  life  cycle  cost  (ABLCC)  of  building facilities  maintenance  in  public  universities  is  proposed  to effectively  manage  the  cost management of building facilities maintenance. ABLCC approach can signify the activities’ cost components which explain the cost of building facilities activities. As building facilities is considered as at facilities level of activity based costing (ABC), the determination of the cost activities and cost drivers is important in order to formulate the process model of ABLCC. Establishment of the process model of ABLCC can reduce the complexity of implementing LCC for effective building facilities maintenance planning.