Life cycle cost risk calculator for green highway criteria

Abstract

The negative perception of the high initial cost of investment in green characteristics into buildings or infrastructure projects is a stigma for project developers when adopting sustainable construction. A green project must ascertain the long-term cost benefits during the project viability stage. Life Cycle Cost (LCC) analysis is a method introduced to highlight the return of investment and cost risks that possibly encounter during the life span of the buildings or infrastructures. Besides green building, "green highway" or "green road" is among the emerging concern in sustainable construction. The establishment of Green Highway & Road (H&R) Rating Tools such as Malaysia Green Highway Index (MyGHI), offers multi-criteria of sustainable initiatives that count towards the score of the green certification of H&R. The decision to implement sustainable initiatives implementation raises questions about the cost risk of the investment. This research aims to develop Life Cycle Cost Risk Calculator (LCC-RC) for green highway criteria as a decision-making support for the green cost benefits and prediction of risk analysis. This research used the highways certified by MyGHI to identify relationships between LCC components and the green highway’s measurable criteria. The subject of cost benefit and risk analysis was based on risk associated with the green criteria of Energy Efficiency (EE) only. A questionnaire survey of 65 respondents was conducted. Friedman's Test and Spearman's Correlation Coefficient Analysis were used to validate LCC component, and the correlation was used in LCC-RC. The results show the average total LCC of RM481,156 for a green highway project and its energy efficiency green criteria cost have a positive and significant relationship except for capital, maintenance, and replacement costs. Risk contingency costs have the strongest positive relationship (0.29, p <0.005). The results of the calculator portray the descriptive statistical summary of the calculated LCC analysis, along with the simulation output chart. The electrical system of LED street lighting data from LED lantern manufacturer in Malaysia was selected to test the LCC-RC. The User Acceptance Test (UAT) resulted in agreement that the LCC-RC is a unique and user-friendly tool. It was also agreed that LCC-RC supports the decision-making for green H&R projects by accumulating the total LCC of green criteria investment. This research innovation is novel in terms of an alternative for reducing the negative perception of green highways. The LCCRC also exceptionally facilitates decision-making, hence, aiding the H&R stakeholders in foreseeing the green highway cost benefits and risks evaluation.