Life-Cycle Costing - An Economic Approach to Evaluate the Operational Equipment of Tunnels

"1. INTRODUCTION AND MOTIVATION Traditionally design processes are focussed at creating new tunnels for lowest building cost. But the trend towards sustainable constructions in tunnelling has greatly increased in recent years. A critical subtask of this approach is to realize the potential for optimizing and reducing the life-cycle costs (LCC) of tunnels and their components. To evaluate underground infrastructure projects from an economic point of view is therefore a highly topical subject of public authorities as well as private companies participating in Public Private Partnerships (PPP) projects. Nowadays, in the case of public works contracts, the contracting authorities shall draw up rules not only for the design but also for life-cycle costing. Within the scope of the decision-making process of building a new tunnel, planning the maintenance activities or the refurbishment of a tunnel in operation, the decision-makers need detailed knowledge about the current and future financial conditions of the planned projects and selected sub-measures. But in practice, the initial costs still represent the primary decision criterion in the planning phase, whereas the subsequent or follow-up costs, respectively, are only estimated roughly. Although tunnels are the key components and the most costly parts of the transport infrastructure, only a small number of scientific papers deal explicitly with the calculation of life-cycle costs for underground infrastructure. And in these cases, most authors use as the starting point only the basic form of the Net Present Value method which is known as the frequently applied life-cycle costing technique in building construction. The present study explains the strategic concept of life-cycle costing and its fundamental instruments for operational implementation. It shows the necessity to take into consideration that there are fundamental methodical problems when the life-cycle concept is transposed without modifications from building construction to civil engineering. The paper will discuss in detail some selected associated problems with the net present value method. On the basis of operational and safety related tunnel equipment it is shown, what impact this may have on principle determining the LCC of tunnels. Selected best-practices of maintenance planning for tunnels undertaken by the German Ministry of Transport fill the theoretical approach of the concept with life and give a practical orientation. In particular government authorities but also construction companies are interested parties in modern cost management considerations. The reason for this development is the replacement of aged excisting structures and the advancement of technical standards. The increase in the total numbers of tunnels (Fig. 1) as well as the need for future re-investments in existing tunnels show the overall economic impact and justify the change towards the life-cycle perspective."