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<html><head><style> body, p, td { font: 12px Verdana, sans-serif; } </style></head><body>
 <table width="700" border="1" cellspacing="0" cellpadding="20">
 <tr>
 <td valign="top" width="50%">Ref: M4.A07</td>
 <td valign="top" width="50%">Where it fits: 
 Module 4: Finance</td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Title: Project Lifecycle Costing</td>
 </tr>
 <tr>
 <td valign="top">Objectives: 

	 
	&bull;&nbsp;Understand the principles of project life cycle costs</td>
 <td valign="top">Assessment Criteria: 

	In Evaluating this Assignment, the student should be able to:

	 
	o&nbsp;Understand the importance of the project life cycle cost in relation to the project financial feasibility 
	o&nbsp;Understand the elements of costs included in the life cycle cost. 
	o&nbsp;Distinguish between owning (acquisition) and operating (sustaining) costs 
	o&nbsp;Appreciate the client&rsquo;s needs in relation to the life cycle cost of a project 
	o&nbsp;Be aware of the importance of life cycle costing in relation to the sustainability of a project.</td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Due Date: 2013-09-30</td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Assignment / Activity: 
 
	Activity No: ACT M4.A07&nbsp; Project Lifecycle Costing

	Classroom Activity: Discussion Session/ Question and Answer

	Complete Activity ACT M4.A07 in your Contact Session 3 Student Activities Workbook, which covers the following:

	Consider the three projects described in the Heritage Project Case Study, namely:

	&bull;&nbsp;School 
	&bull;&nbsp;Wastewater Treatment Works 
	&bull;&nbsp;Retail Shopping Centre

	Add a fourth project:

	&bull;&nbsp;New production line to produce the C Class Mercedes Benz

	Explain why the Client for each of the above projects will have a different philosophy when considering the life cycle costs.

	Assignment&nbsp; No:&nbsp; ASS M4.A07&nbsp; Project Lifecycle Costing 
	Project Lifecycle Costing

	 
	Refer to the preliminary estimates presented in Clause 2.2 of the Heritage Project Case Study. Assume you are the Project leader in charge of all the engineering disciplines and you are preparing a feasibility study for presentation to the Client. The report must include an estimate of the full life cycle cost of the project:

	 
	1.&nbsp;Describe examples of at least 5 additional owning costs to be included in the report 
	2.&nbsp;Describe examples of at least 5 additional operating costs to be included in the report 
	3.&nbsp;Describe examples of at least 2 additional indirect factors which may influence the total life cycle cost of the project. 
	&nbsp;</td>
 </tr>
 <tr>
 <td valign="top">Reading and Resources: 
 
	Contact Session 3: Student Activities Workbook: 2013.MG. AB05 
	Presentation: M2. P07, P08,P09,P10: Construction Financial Administration 
	ECSA Scope of Services and Determining Professional Fees June 2013 
	Heritage Project Case Study 
	Student Notes: Role of the Consulting Engineer in Project Delivery 
	Student Notes: Financial Processes During Project Delivery 
	Websites: Various, including Wikipaedia</td>
 <td valign="top">Pre-Reading: 
 </td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Notes: </td>
 </tr>
 <tr>
 <td colspan="2" valign="top">Module Convenor: Celia Mullane (MBA) 
 011 325 2695&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;082 891 8057&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="http://www.cesa.co.za/cesanet/modcontact.php?id=3&amp;facilitator=1">send Celia Mullane a message</a>
</td>
 </tr>
 </table></body></html>