Life Cycle Cost Analysis for

Bridges
In Search of Better
Investment and
Engineering Decisions
Presented by: Hank Bonstedt
Executive Director
Prestressed Concrete Association of
Pennsylvania

What is Life Cycle

Cost?
An economic analysis procedure that
uses engineering inputs
Compares competing alternatives
considering all significant costs
Expresses results in equivalent dollars
(present worth)

Cost Considerations

Costs

Present Worth

Initial Cost
Rehabilitation Cost

Salvag
e Costs
Maintenance and
Inspection
Cost

Years
Salvag
e Value

Present Worth Analysis

Discounts all future costs and benefits
to the present:
t=n

PW = FC +
t=0

FC
t
MC
IC
FRC
UC
S
pwf

=
=
=
=

pwf [MC+IC+FRC+UC] + pwf [S]

First (Initial) Cost

Time Period of Analysis
Maintenance Costs
Inspection Costs
= Future Rehabilitation Costs
= Users Costs
= Salvage Values or Costs
= Present Worth Factor

First (Initial) Cost

Initial cost of structure
Incentive/disincentive payments should
not be included since they would reflect
user benefits or costs prior to structure
going into service

Time Period of Analysis

Normally equal for all alternatives
Should include at least one major
rehabilitation
Needed to capture the true economic benefit of
each alternative

Bridge design today is based on a

probabilistic model of 100 years

Maintenance Costs
Annual cost associated with the upkeep
of the structure
Information is difficult to obtain for a
given project
Cost varies on the basis of size of the
structure (sqft)
Best Guess Values
Frequency - Annual
Concrete
0.05 % of Initial Cost
Structural Steel
0.05 % of Initial Cost

Inspection Costs
Requirements set forth in the National
Bridge Inspection Standards (23 CFR 650.3)
Occurs for all alternatives every two years
Cost varies on the basis of size of the
structure (sqft) and by construction material
Best Guess Values
Frequency - Biannual
Concrete
0.15 % of Initial Cost
Structural Steel
0.20 % of Initial Cost

Future Painting Costs

Only applies to structural steel structures
but excludes weathering steel
Should occur every 20 years
Cost varies on the basis of size of the
structure (sqft)
Best Guess Values
Frequency every 20 years
Concrete
0.0 % of Initial Cost
Structural Steel
7.0 % of Initial Cost

Future Rehabilitation
Costs
The frequency is not only a function of time but
also the growing traffic volume and the
structural beam system
Cost varies on the basis of size of the structure
(sqft) and structural beam system
Best Guess Values
Frequency
First occurrence Concrete 40 years
First occurrence Structural Steel 35 years
Annual traffic growth rate .75 % (shortens rehab
cycles)
Concrete
20.0 % of Initial Cost
Structural Steel
22.0 % of Initial Cost

Salvage Value/Costs
Occurs once at end of life of structure
Difference between
Removal cost
Salvage value
Best Guess Values
Removal cost 10 % of Initial Cost
Salvage Value Concrete - 0 % of Initial Cost
Salvage Value Structural Steel - 2 % of Initial Cost

Users Costs
For early construction completion,
maintenance and rehabilitations only
Delay-of-use
Time delay
Fuel consumption
Driver discomfort

Vehicle operating costs

Accidents

Users Costs
Pros
Users pay for transportation system
Drives the results

Cons
Owner can not recoup costs
Not in my budget
Drives the results

Users Costs
Driver Delay Costs:
DDC = (L/Sa-L/Sn) x ADT x N x w
L
=
Sa =
Sn =
ADT
day)
N =
w =

Length of affected road way

Traffic speed during maintenance activity
Normal traffic speed
= Average daily traffic (vehicles per
number of days of maintenance activity
Hourly time value of drivers

Users Costs
Vehicle Operating Costs:
VOC = (L/Sa-L/Sn) x ADT x N x r
L
=
Sa =
Sn =
ADT
day)
N =
r
=

Length of affected road way

Traffic speed during maintenance activity
Normal traffic speed
= Average daily traffic (vehicles per
number of days of maintenance activity
weighted-average vehicle cost

Users Costs
Accident Costs:
AC = L x ADT x N x (Aa-An) x ca
L
=
ADT
day)
N =
Aa =
An =
ca =

Length of affected road way

= Average daily traffic (vehicles per
number of days of maintenance activity
Accident rate during maintenance activity
Normal accident rate
Cost per accident

Present Worth Factor

1
pwf =
(1 + i)n
pwf = Present Worth Factor for discount
rate i
and year n
i
= Discount rate
n
= Number of years when cost
(benefit) will occur

Discount Rate
Interest - Inflation
i=
1 + Inflation
Interest The return of an investment that
raises the future value of an invested
dollar
Inflation The erosion of a dollars value
that raises any future expenses
Use of a discount rate allows for the use of
constant dollars in the analysis

Process And Approach

Limits
Government does not invest money to
gain cash benefits (interest)
Government money is generally invested
only in depreciating assets
Anything not bought this year costs more
next year (inflation)

User Costs Input

User Costs Inputs
Length of affected roadway *
ADT *

Alternative 1
Prestressed
Concrete

Alternative 2
Structural Steel

2.00
5,000

Normal traffi
c speed
traffic
Construction traffi c speed

45
20

Normal accident rate

Construction accident rate

1.9
2.2

Number of construction days

Early Construction Completion
Maintenance
Inspection
Painting
Rehabilitation
Hourly time value of drivers
Weighted average vehicle cost
Cost per accident

90
10
5
0
120
6.25
8.00
100,000

2.00 miles
5,000 vehicles per day
45 mph
20 mph
1.9 /million vehicle miles
2.2 /million vehicle miles
0 days
10 days/occurrence
8 days/occurrence
90 days/occurrence
120 days/occurrence
6.25 $/hour
8.00 $/hour
100,000 $/occurrence

Note*: Total traffic affected by Maintenance, Inspection, Painting, and Rehabilitation

activity over and under s
tructure
structure

Discount Rate Inputs

Present Worth Factors
Discount Rate
Inflation Rate

For All Alternatives

0.00%
2.00%

Structure Costs Input

Initial Cost of Structure
Analysis Period

7,000,000
100
Alternative 1 - Prestressed Concrete
Frequency
(Years)

Maintenance Costs
Inspection Costs
Painting Costs

Cost Per Occurrence

Factor
Cost

1
2
0

0.05%
0.15%
0.00%

3,500
10,500
0

40
0.75%

20.00%

1,400,000

100
100

10.00%
0.00%

700,000
0
700,000

Rehabilitation Costs
First Rehabilitation
Annual Traffic Growth Rate *
Salvage Costs/Value
Demolition Costs
Salvage Value
Net Salvage Costs

Structure Costs Input

Initial Cost of Structure
Analysis Period

7,000,000
100
Alternative 2 - Structural Steel
Frequency
(Years)

Maintenance Costs
Inspection Costs
Painting Costs

Cost Per Occurrence

Factor
Cost

1
2
20

0.05%
0.20%
7.00%

3,500
14,000
490,000

35
0.75%

22.00%

1,540,000

100
100

10.00%
2.00%

700,000
140,000
560,000

Rehabilitation Costs
First Rehabilitation
Annual Traffi c Growth Rate *
Salvage Costs/Value
Demolition Costs
Salvage Value
Net Salvage Costs

Life Cycle Costs Results

Alternative 1 - Prestressed Concrete
Costs User Costs

Total

Construction

7,000,000

Maintenance

346,500

4,215,750

4,562,250

Inspection

514,500

1,043,292

1,557,792

4,200,000

1,533,000

5,733,000

Painting
Rehabilitation
Salvage
Total Constant Dollars
Present Worth

(383,250)

700,000
12,761,000
30,235,675

6,616,750

700,000
6,408,792
21,746,666

19,169,792
51,982,341

Life Cycle Costs Results

Alternative 2 - Structural Steel
Costs User Costs

Total

Construction

7,000,000

7,000,000

Maintenance

346,500

4,215,750

4,562,250

Inspection

686,000

1,669,267

2,355,267

Painting

1,960,000

1,533,000

3,493,000

Rehabilitation

6,160,000

2,044,000

8,204,000

Salvage
Total Constant Dollars
Present Worth

560,000
16,712,500
48,910,066

560,000
9,462,017
31,365,348

26,174,517
80,275,414

Life Cycle Costs

Comparisons
Prestressed Concrete Savings
Costs

User Costs

Total

Constant Dollars

31%

48%

37%

Present Worth

62%

44%

54%

Questions?
Thank you for your Attention!