Thomas B Research Proposal LCC Framework

PAN AFRICAN UNIVERSITY
INSTITUTE FOR BASIC SCIENCES, TECHNOLOGY AND INNOVATION
Master of Science in Civil Engineering
(Construction Engineering and Management Option)
Development of Framework for Enhancing the Adoption of Life Cycle Costing in the
Building Construction Industry: A Case Study of Nairobi County
Name: Thomas Berhe Tsegai
Reg. No: CE 300 – 0022/2021
May 2023
ABSTRACT
Significant cost management issues are faced by the building construction sector in Nairobi
County, Kenya, particularly with the implementation of life cycle costing (LCC). LCC is
not frequently used in building construction projects, despite its potential advantages. This
study aims to (1) asses the level of LCC adoption, (2) establish the key determinants that
influence its adoption, and (3) develop a framework for enhancing its adoption. Cross-
sectional surveys and document reviews will be employed in a qualitative research design
to gather data. Data analysis will be done using content analysis. The study's anticipated
outcomes include determining the present degree of LCC adoption in construction projects
for buildings in Nairobi County, identifying the variables that affect adoption, and creating
a framework for fostering adoption. The framework will contain incentives for LCC
adoption, training and awareness campaigns for stakeholders, and institutional support for
LCC implementation. The study's conclusions will offer crucial new understandings into the
variables affecting LCC adoption in building construction projects in Nairobi County and
can be applied to improve its acceptance in other situations that are analogous.
Key words: Life Cycle Costing, Adoption, Nairobi, Cost management.
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TABLE OF CONTENTS
ABSTRACT ........................................................................................................................... i
TABLE OF CONTENTS ......................................................................................................ii
LIST OF TABLES ................................................................................................................ v
LIST OF FIGURES .............................................................................................................. vi
ABBREVIATIONS AND ACRONYMS ............................................................................vii
CHAPTER ONE .................................................................................................................... 1
1 INTRODUCTION .......................................................................................................... 1
1.1 Background to the Study......................................................................................... 1
1.2 Statement of the Problem ........................................................................................ 5
1.3 Objectives ............................................................................................................... 5
1.3.1 General Objective ............................................................................................ 5
1.3.2 Specific Objectives .......................................................................................... 5
1.4 Hypothesis .............................................................................................................. 5
1.5 Research Questions ................................................................................................. 6
1.6 Justification and Significance of the Study ............................................................. 7
1.6.1 Justification...................................................................................................... 7
1.6.2 Significance ..................................................................................................... 7
1.7 Scope of the study ................................................................................................... 8
CHAPTER TWO ................................................................................................................... 9
2 LITERATURE REVIEW ............................................................................................... 9
2.1 Theoretical Review ................................................................................................. 9
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2.1.1 Conceptualizing life cycle costing ................................................................... 9
2.1.2 Technology Acceptance Model (TAM) ........................................................ 12
2.1.3 Diffusion of Innovation Theory ..................................................................... 13
2.1.4 Institutional Theory ....................................................................................... 15
2.1.5 Summary of theoretical review ..................................................................... 16
2.2 Empirical Review ................................................................................................. 17
2.2.1 LCC adoption in Building Design projects worldwide ................................. 19
2.2.2 LCC adoption in Building Design projects in Kenya .................................... 20
2.2.3 Determinants influencing LCC adoptions ..................................................... 22
2.2.4 Benefits of LCC adoption .............................................................................. 24
2.2.5 Barriers to LCC adoption .............................................................................. 25
2.2.6 Frameworks for improving the adoption of LCC .......................................... 27
2.2.7 Summary of research methods used in related studies .................................. 29
2.3 Summary of Literature Review and Research Gap............................................... 30
2.4 Conceptual Framework ......................................................................................... 31
CHAPTER THREE ............................................................................................................. 34
3 MATERIALS AND METHODS ................................................................................. 34
3.1 Study Area ............................................................................................................ 34
3.2 Material Acquisition and Preparation ................................................................... 35
3.2.1 Specific Objective 1....................................................................................... 35
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CHAPTER FOUR ............................................................................................................... 39
4 EXPECTED RESULTS AND OUTPUTS .................................................................. 39
4.1 Expected Results ................................................................................................... 39
4.2 Expected Output ................................................................................................... 39
REFERENCES .................................................................................................................... 41
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LIST OF TABLES
Table 3.1 Objective-1 Sample size using Krejcie and Morgan Sample Size Table ............ 35
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LIST OF FIGURES
Figure 2.1 Structure of Life Cycle Costs ............................................................................... 9
Figure 2.2 A framework for Initiatives for Successful Application of LCC for IBS in
Malaysian construction industry.......................................................................................... 27
Figure 2.3 Conceptual Framework ...................................................................................... 33
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ABBREVIATIONS AND ACRONYMS
AEC Architecture, Engineering, Construction
AECO Architecture, Engineering, Construction and Operation
BDS Building Description Systems
BIM Building Information Modelling
BPM Building Product Model
CAD Computer Aided Design
GBM Generic Building Model
GLIDE Graphical Language for Interactive Design
ICT Information and Communication Technologies
IFC Industry Foundation Classes
IPD Integrated Project Delivery

LCA Life Cycle Assessment
LCC Life Cycle Costing
ROI Return on Investment
TDS Traditional Design System
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CHAPTER ONE
1 INTRODUCTION
1.1 Background to the Study
Construction projects have a significant impact on the environment, economy, and society.
The construction industry is also one of the largest contributors to greenhouse gas emissions
and resource depletion. Therefore, sustainable construction practices have become a critical
concern for the industry. One such practice is Life Cycle Costing (LCC), which evaluates
the total cost of a building project over its entire life cycle, from design to demolition,
including all direct and indirect costs. According to (Maisham et al., 2021) LCC is a holistic
approach that considers both the initial and ongoing costs of a building project, and it is seen
as a useful tool to support sustainable decision-making in construction projects.
The use of LCC in building design projects has numerous benefits. According to
(Schneiderova-Heralova, 2018a) It helps to identify the most cost-effective design options
and materials, as well as minimize future maintenance costs, and improve the environmental
performance of a building project. Moreover, LCC provides a comprehensive analysis of
the total cost of a project, including hidden and indirect costs, which might be overlooked
in traditional cost analysis methods. However, despite these potential benefits, the adoption
of LCC in construction projects remains limited.
Although LCC can be used at any step of the building lifecycle, the design phase is where it
is most crucial. According to a study by (Heralová, 2017a)LCC can assist in identifying the
most cost-effective design solutions for the building's complete life cycle during the design
stage, when the building's cost and performance criteria are established. Stakeholders can
choose options that are most advantageous in terms of life cycle cost, energy efficiency, and
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environmental impact by first weighing the advantages and disadvantages of various design
options. This is especially relevant for the building business today, since sustainability is a
crucial consideration.
LCC application at the design phase can also assist reduce the need for pricey alterations
and retrofits later on in the building lifecycle. If the initial design doesn't work as intended,
modifications and retrofits may be required, even though they might be costly and
disruptive. Based on a study by (Manewa et al., 2021a) Stakeholders can discover possible
issues early in the design process by utilising LCC to evaluate design choices, and they can
choose options that are less likely to call for alterations or retrofits. Stakeholders can find
the most affordable design options and prevent expensive alterations and retrofits later in
the building's life cycle by implementing LCC at the design stage.
Previous studies have identified several factors that influence the adoption of LCC in the
construction industry, including lack of awareness, lack of knowledge and expertise, lack of
stakeholder engagement, inadequate funding, and the absence of government policies and
regulations that mandate the use of LCC. However, these studies have not explored these
factors in the context of Nairobi County, Kenya. Therefore, this study will explore the
factors that influence the adoption of LCC in the design stage of construction projects in
Nairobi County, using a mixed-methods approach.
The study will involve architects, engineers, contractors, and clients who are involved in the
design stage of construction projects. The study aims to identify the level of LCC adoption
in building design projects, identify the determinants that influence the adoption of LCC in
the design stage of building construction projects, and develop a framework for improving
the adoption of LCC in the design stage of construction projects.
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By understanding the factors that influence the adoption of LCC in the construction industry,
the study aims to provide recommendations to policymakers, industry associations, and
individual organizations to promote the adoption of LCC in the design stage of construction
projects in Nairobi County, thus contributing to the sustainable development of the
construction industry.
The adoption of LCC in construction projects is crucial in promoting sustainable
development in the industry. It can contribute to the achievement of environmental,
economic, and social sustainability goals. The adoption of LCC can also reduce the long-
term cost of a building project and increase the value of the project. However, the adoption
of LCC in construction projects requires a paradigm shift in the industry's decision-making
processes.
According to research conducted by (Godwin Adie Akeke et al., 2021), Construction
expenditures account for 73% of a building's total forecasted costs over its lifetime, whereas
operating, maintenance/repair, replacement, and decommissioning costs make for 2%, 8%,
13%, and 4% of the total costs, respectively. The overall estimated life cycle expenses
represent 30.24 percent of the building cost. 54.78% of the anticipated total cost is
attributable to energy expenses.
In the context of Kenya, (Kaming et al., 2019) found that the initial cost of construction is
39.12%, maintenance and replacement cost is 16.28%; and operational cost is 44.61%.
According to (Kimani & Kiaritha, 2019) ; the reality of the current Kenyan buildings, is that
most owners and tenants are accustomed to inefficient lighting, power interruptions,
perennial water shortages, sewer bursts, poor ventilation, poor waste disposal, which could
be as a result of buildings not designed in accordance to LCC considerations.
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Nairobi County, being the capital city of Kenya and one of the fastest-growing cities in
Africa, has a high demand for sustainable construction practices. Therefore, the adoption of
LCC in the construction industry is essential for the city's sustainable development.
However, limited studies have been carried out to investigate the factors that influence the
adoption of LCC in Nairobi County. Therefore, this study aims to bridge this gap by
exploring the factors that promote or hinder the adoption of LCC in the design stage of
construction projects in Nairobi County.
Despite the potential benefits of LCC, its adoption in the construction industry has been
slow. In Nairobi County, for example, there is limited use of LCC in building design
projects. The reasons for this slow adoption are not well understood. Therefore, there is a
need to identify the factors that influence the adoption of LCC in the design stage of
construction projects in Nairobi County. This study aims to fill this gap by investigating the
factors that promote or hinder the adoption of LCC in the construction industry in Nairobi
County. By identifying these factors, the study aims to provide recommendations for
policymakers, industry associations, and individual organizations to promote the adoption
of LCC in the design stage of construction projects, thus contributing to the sustainable
development of the construction industry.
The study's findings will be valuable to policymakers, industry associations, and individual
organizations involved in the construction industry in Nairobi County. The study's
recommendations will help promote the adoption of LCC in the design stage of construction
projects, leading to sustainable development and improved decision-making processes in the
industry. Additionally, the study's results will contribute to the existing literature on LCC
adoption in the construction industry, providing insights for future research.
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1.2 Statement of the Problem
The construction industry in Nairobi County is faced with several challenges, including the
high cost of construction, environmental degradation, and social and economic inequality.
The adoption of Life Cycle Costing (LCC) in the design stage of construction projects can
help address these challenges. However, the adoption of LCC in the industry remains
limited. The problem statement for this study is to identify the determinants that influence
the adoption of LCC in the design stage of construction projects in Nairobi County and
provide a framework for improving the adoption of LCC. The study seeks to provide insights
into the determinants that promote or hinder the adoption of LCC in the building
construction industry in Nairobi County.
1.3 Objectives
1.3.1 General Objective
To develop a framework for enhancing the adoption of Life Cycle Costing (LCC) in the
design stage of building construction projects in Nairobi County
1.3.2 Specific Objectives
1. To assess the level of Life Cycle Costing adoption in the design stage of building
construction projects.
2. To establish the key determinants that influence adoption of LCC in the design
stage of building construction projects.
3. To develop a framework for improving adoption of LCC in the design stage of
building construction projects.
1.4 Hypothesis
The probability of LCC Adoption in Nairobi County in the design stage of building
construction projects can be explained using the following regression model.
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Probability of LCC Adoption in Nairobi = β0 + β1*Complexity + β2* Trialability + β3
*Observability + β4* Compatibility + β5* Awareness and Knowledge Levels + β6*
Organizational and Contextual Factors +ϵ
Based on this, these Hypotheses will guid the study
1. Ho: The probability of a firm adopting LCC in Nairobi County is 1.
HA: The probability of a firm adopting LCC in Nairobi County is 0.
2. Ho: βi = 0 i.e β1 = β2 = β3 =β4 = β5 = β6 =0
HA: βi ≠ 0 i.e at least β1 or, β2 or, β3 or, β4 or, β5 or, β6 ≠ 0
1.5 Research Questions
1. What is the level of Life Cycle Costing adoption in the design stage of building
construction projects in Nairobi County?
2. What are the institutional factors that influence the adoption of LCC in the design
stage of building construction projects in Nairobi County?
3. What are the technological factors that influence the adoption of LCC in the design
4. What are the individual factors that influence the adoption of LCC in the design
5. What is the relationship between the determinants of LCC adoption and the level of
LCC adoption in the design stage of building construction projects in Nairobi
County?
6. What framework can be developed to improve the adoption of LCC in the design
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1.6 Justification and Significance of the Study
1.6.1 Justification
The adoption of Life Cycle Costing (LCC) in the design stage of construction projects is
crucial for ensuring the economic viability, sustainability, and longevity of buildings.
However, despite the potential benefits of LCC, its adoption in the construction industry in
Nairobi County remains limited. Therefore, there is a need to understand the determinants
that promote or hinder the adoption of LCC in the design stage of construction projects in
Nairobi County. The results of this study can provide valuable insights for policymakers,
industry associations, building owners, and other stakeholders in the construction industry
to improve the adoption of LCC, which can ultimately contribute to the development of a
more sustainable and economically viable built environment in Nairobi County.
1.6.2 Significance
The study will contribute to the body of knowledge on the adoption of Life Cycle Costing
(LCC) in the construction industry, particularly in the context of developing countries.
Specifically, the study will provide insights into the current level of adoption of LCC, the
key factors that influence its adoption, the perceived benefits and barriers of adopting LCC,
and a framework for improving its adoption in the design stage of construction projects in
Nairobi County. The results of the study can be used to develop policies and strategies that
promote the adoption of LCC, to develop training and education programs for architects,
engineers, and other stakeholders in the construction industry, and to improve the economic
and environmental sustainability of buildings in Nairobi County. Ultimately, this study can
contribute to the achievement of the United Nations Sustainable Development Goals,
particularly Goal 11: Sustainable Cities and Communities, by promoting the development
of a more sustainable and liveable built environment in Nairobi County.
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1.7 Scope of the study
The scope of this study is limited to the adoption of Life Cycle Costing (LCC) in the design
stage of building construction projects in Nairobi County, Kenya. The study will focus on
the determinants that influence the adoption of LCC, the level of adoption of LCC in
building design projects, and the perceived benefits and barriers of adopting LCC in the
design stage of construction projects. The study will be conducted using a quantitative
research approach, where data will be collected through a survey questionnaire administered
to architects, engineers, contractors, and building owners involved in the design and
construction of buildings in Nairobi County. The study will not cover the implementation or
monitoring of LCC in the construction industry, nor will it cover other aspects of sustainable
building design, such as energy efficiency or environmental impact assessment. The study
will be conducted over a period of one year, from April 2023 to April 2024 , and will be
limited to the Nairobi County region due to time and resource constraints.
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CHAPTER TWO
2 LITERATURE REVIEW
2.1 Theoretical Review
There are various theoretical angles from which the implementation of Life Cycle Costing
(LCC) in building project design can be understood. This section will give a summary of the
main theories that are pertinent to the investigation of LCC adoption.
2.1.1 Conceptualizing life cycle costing
Understanding the many stages of a building's life cycle and the costs related to each stage
is necessary to conceptualise life cycle pricing. The phases of design, construction,
operation, maintenance, and demolition often make up a building's life cycle. Instead of only
concentrating on the initial construction expenses, life cycle costing takes into account the
costs related to each of these stages over the course of the building's full life.
Figure 2.1 Structure of Life Cycle Costs

Source: (Schneiderova-Heralova, 2018a)
Over the years, there has been a lot of discussion in the literature around the idea of life
cycle costing (LCC). (Schneiderova-Heralova, 2018b) claims that LCC is a method used in
building projects to assess the total cost of ownership of a facility throughout the course of
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its complete life cycle. It entails examining the financial effects of each phase of the facility's
life cycle, such as design, construction, operation, maintenance, and disposal. The report
also highlights the value of LCC in building projects, notably in enhancing decision-making
and accomplishing sustainable development objectives.
Similar challenges and motivators for LCC adoption in the Nigerian construction industry
are covered by (Akinrata, 2016a). The study identified the lack of knowledge and
comprehension of LCC, the dearth of data, and the absence of technical expertise as the main
obstacles to its adoption. On the other hand, the study contends that factors that can
encourage its adoption include the accessibility of LCC technologies, backing from the
government, and client demand.
(Olubodun et al., 2010a) investigated the extent of LCC's use in the UK construction sector.
According to the report, only a small number of construction experts are well-versed with
LCC, and it is not frequently used in the sector. According to the survey, the main obstacles
to the adoption of LCC are insufficient client demand, a lack of data, and a lack of knowledge
and comprehension of it.
The application of LCC in construction projects and its potential advantages, such as the
optimization of project planning, the reduction of operating costs, and enhanced decision-
making, are covered by (Wübbenhorst, 1986). The study underlines the requirement for
precise and trustworthy data while performing an LCC analysis.
Finally, (Manewa et al., 2021b) offer a thorough analysis of the current patterns and future
orientations of LCC in the building sector. The report emphasises the demand for a
comprehensive strategy for LCC that includes all parties involved in the building process.
According to the authors, LCC's future use in the sector will be greatly impacted by current
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developments, such as the use of BIM (Building Information Modeling) and sustainable
procurement methods.
LCC may enhance decision-making, optimise project planning, and lower operating costs in
construction projects, according to the body of research. However, a number of obstacles,
including a lack of data availability, a lack of knowledge and comprehension, and limited
technological expertise, prevent its widespread use. These results highlight the demand for
a thorough conceptual framework that removes these obstacles and promotes the use of LCC
in building projects.
Understanding the different aspects that affect life cycle costing adoption in the construction
sector, such as stakeholder attitudes, economic considerations, institutional structures, and
technological concerns, is essential for developing a conceptual framework. An in-depth
comprehension of these elements can aid in the creation of a framework for enhancing the
use of life cycle costing techniques in building design projects. It is feasible to design and
develop buildings that are more sustainably and economically advantageous over the course
of their entire lives by taking into account the costs and advantages associated with each
stage of the building's life cycle. An essential tool for decision-making and for making sure
that the long-term costs and benefits of building design projects are appropriately taken into
account is the conceptual framework for life cycle costing.
The use of life cycle costing in building design projects will be demonstrated in relation to
the various elements found in the literature review using the conceptual framework. The
method of conceptualising life cycle costing is one of the essential ideas that needs to be
incorporated in the framework.
In addition, it's important to identify the analysis's primary cost components. These could
include direct expenses like building and running expenditures as well as indirect expenses
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like social and environmental costs. Although it can be difficult to include these indirect
expenses, doing so is necessary for a thorough life cycle costing analysis.
In general, the adoption of life cycle costing in building design projects begins with
conceiving it. It makes sure that the analysis's scope is precisely specified and that all
pertinent expenditures are taken into account, which can produce more accurate and
trustworthy conclusions.
2.1.2 Technology Acceptance Model (TAM)
According to the Technology Acceptance Model (TAM), users' perceptions and adoption of
new technologies are explained theoretically. TAM asserts that a user's perception of a
technology's usefulness and usability has an impact on whether or not they would adopt it.
The application of the TAM in the context of LCC has been examined in numerous studies.
The effectiveness of TAM in predicting and explaining consumer acceptance of technology
in LCC was highlighted by (Olushola & Abiola, 2017). They made the case that TAM's
emphasis on perceived value and simplicity fits well with the requirements of LCC users.
A review of studies that applied TAM to various technical environments, including LCC,
was published by (Chen et al., 2012). They discovered that the notions of TAM accurately
predicted the adoption of technology across several research.
In a study of the literature on the adoption of innovations and technology acceptance models,
(Al-Tarawneh, 2019) emphasised the importance of TAM in the context of LCC. TAM is
frequently employed in LCC research to explain user acceptability and adoption of
technology solutions, according to the review.
In the context of this study, TAM can be utilised to comprehend how building owners,
contractors, engineers, and architects view Life Cycle Costing's utility and usability during
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the design phase of construction projects. TAM can be used to create research questions
such as:
• How do architects, engineers, contractors, and building owners perceive the
usefulness of Life Cycle Costing in the design stage of construction projects?
• How do architects, engineers, contractors, and building owners perceive the ease of
use of Life Cycle Costing in the design stage of construction projects?
2.1.3 Diffusion of Innovation Theory
The Diffusion of Innovation Theory describes how new concepts, goods, or technologies
gradually permeate a population. The idea holds that the features of an innovation, the
characteristics of the adopters, and the communication channels used to promote the
innovation all have an impact on how widely it is adopted. The Diffusion of Innovation
Theory can be used in the context of this study to comprehend the elements that affect the
adoption of LCC during the design phase of construction projects, including the perceived
advantages and disadvantages of adopting LCC as well as the communication channels that
are employed to encourage adoption.
According to a number of studies, the Diffusion of Innovation Theory can be used to analyse
the adoption of LCC in building projects. The idea contends that new technologies or
practises are adopted in a predictable manner and are influenced by a number of variables,
including perceived benefits and usability, compatibility with current practises, resource
accessibility, and social and cultural context.
According to (Manewa et al., 2021c), there is a lack of understanding of the advantages of
LCC, reluctance to change, and a lack of a regulatory framework that requires its usage as
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reasons for the industry's tardy adoption of LCC. They contend that participation from all
interested parties and the provision of training and instruction to improve their
comprehension of the technique are necessary for the successful adoption of LCC.
(Shibeika & Harty, 2015) investigate how digital innovation spreads within a UK
engineering firm and discover that a number of variables, including company culture,
leadership style, and resource accessibility, have an impact on how quickly new technologies
are adopted. They contend that a clear vision, excellent communication, and a readiness to
try new things and learn from failure are necessary for the successful adoption of new
technology.
In order to identify the factors influencing the acceptance of emerging technologies and to
support their sustainable growth, (Sharp & Miller, 2016) recommend integrating the
Diffusion of Innovation Theory into the life cycle assessment of those technologies. They
contend that a thorough analysis of the environmental, social, and economic effects of new
technology should serve as the foundation for any adoption decisions.
Last but not least, (Lundberg et al., 2019) investigated the diffusion of innovation in a
contractor company and discovered that the successful adoption of new practises
necessitates the development of a supportive organisational culture, the provision of
resources and training, and the participation of all stakeholders in the decision-making
process. They contend that innovation should be viewed as a process that should be
continuously monitored and assessed.
Diffusion of Innovation Theory can be used to develop research questions such as:
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• What are the perceived benefits and barriers of adopting Life Cycle Costing in the
design stage of construction projects?
• What communication channels are most effective for promoting the adoption of Life
Cycle Costing in the design stage of construction projects?
2.1.4 Institutional Theory
Application of institutional theory has been made to LCC adoption in the construction sector.
The institutional context, which includes the adoption of novel techniques like LCC, is said
to have a considerable impact on the behaviours and practises of companies. The adoption
of LCC is influenced by a number of factors, including organisational legitimacy,
institutional norm compliance, and pressure from outside stakeholders. According to
institutional theory, both organisations and people are affected by the social and institutional
environments' norms, values, and beliefs.
The use of institutional theory in the implementation of life cycle costing (LCC) in the
construction sector has been investigated in a number of researches. The institutional
pressures that affect the adoption of LCC in construction projects, according to (Manewa et
al., 2021c), can be explained, they claim, by the institutional theory. They argued that
institutional isomorphism and legitimacy may be factors in the building industry's adoption
of LCC. Similar to this, (Schneiderova-Heralova, 2018b) argued that institutional theory can
support feasibility assessments for building projects by offering a framework for examining
the institutional environment that influences LCC adoption. In order to successfully apply
LCC in industrialised building systems (IBS) in the Malaysian construction industry,
(Shamsuddin et al., 2017a) recommended a framework of efforts. Their framework, which
was established in accordance with the institutional theory, attempted to remove the
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institutional obstacles preventing LCC implementation in the IBS industry. Overall, these
studies indicate that institutional theory can offer a framework for effective implementation
and help to explain the institutional pressures and limitations that affect the adoption of LCC
in the construction sector.
The Institutional Theory can be used in the context of this study to comprehend how the
norms, values, and beliefs of the construction industry in Nairobi County influence the
adoption of LCC, such as the institutional pressures to adhere to existing norms or the
cultural barriers to adopting new practises. The following research questions can be
developed using institutional theory:
• How do the norms, values, and beliefs of the construction industry in Nairobi County
influence the adoption of Life Cycle Costing in the design stage of construction
projects?
• What cultural or institutional barriers exist that prevent the adoption of Life Cycle
Costing in the design stage of construction projects?
2.1.5 Summary of theoretical review
Overall, this study intends to provide a deeper knowledge of the variables that affect the
adoption of LCC in the design stage of construction projects in Nairobi County by utilising
these theoretical perspectives.
This study will evaluate the existing Life Cycle Costing literature in the building industry in
addition to the theoretical viewpoints indicated above. The review will go over earlier
studies on LCC acceptance in building design projects, as well as perceived advantages and
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obstacles to LCC implementation. It will also go through any frameworks or regulations
created to encourage the use of LCC during the design phase of construction projects.
The review of literature will also explore the current state of LCC adoption in Nairobi
County. This will include a review of any existing policies, regulations, or industry standards
related to LCC in the design stage of construction projects. It will also examine any case
studies or best practices from other countries or regions that could be applicable to Nairobi
County.
Overall, this theoretical analysis will give a thorough understanding of the elements that
affect LCC adoption throughout the design phase of building projects as well as the LCC
adoption situation in Nairobi County right now. This information will help to establish a
framework for enhancing the adoption of LCC during the design phase of construction
projects in Nairobi County and will inform the research topics, data gathering strategies, and
analysis approaches employed in this study.
2.2 Empirical Review
The empirical review section of this study will focus on the findings of previous empirical
studies related to the adoption of LCC in the design stage of construction projects. This
review will be based on a systematic literature search of databases such as Scopus, Web of
Science, and Google Scholar, using keywords such as "Life Cycle Costing," "construction
projects," "design stage," and "determinants influencing adoption."
The empirical review will include a summary of the research methods used in previous
studies, such as survey research, case studies, and qualitative interviews. It will also provide
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an overview of the sample sizes and characteristics of the participants in each study, as well
as the geographical locations and industries represented.
The review will then focus on the key findings of each study, including the level of LCC
adoption in the design stage of construction projects, the factors influencing adoption, and
the perceived benefits and barriers of LCC adoption. This will enable the identification of
any consensus or discrepancies in the literature, as well as any gaps in knowledge that this
study can help to fill.
The empirical review will also consider the relevance of previous research to the Nairobi
County context, and will examine any similarities or differences between previous findings
and the specific characteristics of construction projects in Nairobi County. This will inform
the development of research questions and hypotheses, as well as the selection of appropriate
data collection methods and analysis techniques.
Overall, the empirical review will provide a comprehensive understanding of the current
state of empirical research on LCC adoption in the design stage of construction projects, and
will inform the development of a rigorous and evidence-based research design for this study.
In this study A total of 15 empirical studies were selected for review. The studies were
conducted in different countries and used various research methods such as surveys, case
studies, and interviews. The key findings of the studies are summarized into four main
themes, including the level of LCC adoption, determinants influencing LCC adoption,
benefits of LCC adoption, and barriers to LCC adoption.
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2.2.1 LCC adoption in Building Design projects worldwide
LCC adoption in building design projects has been the subject of in-depth research in recent
years. LCC entails assessing a building project's costs and advantages across its whole life
cycle, from design and construction to operation and maintenance to eventual disposal.
Several researches have shown that LCC can result in more sustainable outcomes, higher
cost effectiveness, and better decision-making.
LCC can assist decrease long-term expenditures related to building maintenance and
operation by identifying cost-effective alternatives and hidden costs. Additionally, it can
offer a thorough evaluation of the costs and advantages over the course of the project,
facilitating improved decision-making. LCC can be combined with tools like building
information modelling (BIM) and life cycle assessment (LCA) to produce precise and
thorough cost and sustainability evaluations.
For public construction projects, where cost reductions and sustainability are crucial, LCC
adoption in building design projects is especially crucial. Using LCC, it has been discovered
that the most affordable solutions could be selected and that the project's overall costs may
be decreased. As a result, LCC is gradually becoming a crucial tool for construction industry
professionals and decision-makers to make wise decisions about construction projects that
are sustainable in terms of the economy, society, and the environment.
The application of BIM on LCC was the subject of a thorough literature study by (Alasmari
et al., 2022). They discovered that BIM has the ability to increase the accuracy of LCC
prediction and decrease design errors, hence make the adoption of LCC more reliable.
(Architecture, 2016) stressed the significance of LCC implementation in raising project
value for money. According to the study, LCC can offer a thorough evaluation of costs and
benefits over the course of the project, resulting in better decision-making.
19
The use of Life Cycle Assessment (LCA) in building design was thoroughly reviewed by
(Roberts et al., 2020), who discovered that LCA can be useful in detecting environmental
effects and potential design enhancements. In their study (Heralová, 2017b) has highlighted
the function of LCC in building project feasibility studies, emphasising its capacity to
uncover hidden costs and offer a more precise assessment of project viability.
(Schneiderova-Heralova, 2018c) emphasised the value of LCC in construction projects,
emphasising how it helps to find cost-effective solutions and lower overall costs. (Nguyen
& Ngo, 2021) looked into the use of LCC in public construction projects in Vietnam in
another study. Although LCC has been acknowledged as a crucial tool for decision-making,
they discovered that there are still difficulties in its application, including a lack of
awareness, knowledge, and competence among stakeholders, poor data management
systems, and constrained finance. According to the report, a more thorough strategy is
required, one that includes regulatory framework development, stakeholder involvement,
and capacity building.
These studies suggest that LCC adoption in building design projects is still in its early stages
and faces a number of challenges, such as a lack of knowledge and expertise among
stakeholders, a disjointed regulatory framework, and the need for more comprehensive
approaches that incorporate stakeholder engagement and capacity building. The advantages
of LCC, including better decision-making, cost savings, and environmental sustainability,
however, underline the significance of ongoing study and initiatives to encourage its
adoption in building design projects.
2.2.2 LCC adoption in Building Design projects in Kenya
Due to its potential to enhance decision-making and sustainability, life cycle costing (LCC)
adoption in building projects has attracted substantial attention from scholars and
20
practitioners. Several research have looked into the use of LCC in various contexts in Kenya.
For instance, in the Kibera Slum in Nairobi City County, (Muriuki & Chege, 2022)
investigated the use of Project Life Cycle Costing (PLCC) in public housing upgrading
building projects. The authors discovered that PLCC assisted in determining the most
affordable building materials and methods that complied with sustainability standards.
Comparing the life cycle costs of various roofing materials, (Masu, 1987) did a case study
of Nairobi and used LCC. The study showed that the initial price of the roofing material did
not always equate to low life cycle costs, emphasising the significance of taking into account
the whole life cycle costs of building materials.
In Kenya and Tanzania, (Okoko et al., 2018) used LCC to assess several biomass energy
value chains for cooking. The researchers discovered that local resource dependence led to
lower life cycle costs in decentralised value chains than in centralised value systems. This
study emphasises how useful LCC may be in locating efficient and affordable energy-related
solutions. In a similar vein, (Gavaldà et al., 2021) created a simulation tool for the LCC
analysis of industrial bioenergy projects in Africa. The technique was used by the authors to
examine three demand-side industries, and they discovered that LCC analysis might offer
insightful information about the long-term viability of bioenergy projects from both an
economic and environmental standpoint.
Additionally, (Alexander et al., 2016) evaluated the life cycle costs of school WASH access
in Kenyan primary schools. The authors discovered that the availability of WASH facilities
had favourable effects on outcomes in health and education, and that their life cycle costs
were reasonable. This study emphasises how LCC may help informing decisions on social
infrastructure investments like schools.
21
The life cycle costs of water services among low, medium, and high-income utilities in
developing nations, including Kenya, were compared by (Libey et al., 2020). The life cycle
costs of water services were found by the authors to be greater for low-income utilities than
for high-income utilities, highlighting the need for more sustainable and economical
methods of providing water services. This study emphasises how LCC has the potential to
advance sustainability and equity in infrastructure construction.
Overall, the research on LCC adoption in Kenyan construction projects shows how this
strategy has the potential to enhance decision-making, sustainability, and equity. However,
more investigation is required to examine the difficulties and possibilities for the broad use
of LCC in the Kenyan construction sector.
2.2.3 Determinants influencing LCC adoptions
Due to its potential to encourage environmentally friendly and economically advantageous
construction methods, the use of Life Cycle Costing (LCC) in construction projects has
drawn a lot of attention. There are still certain limitations to its acceptance throughout the
design phase of construction projects, and a number of determinants affect this adoption.
We will concentrate on a number of studies that looked at the elements that affect the use of
LCC in building projects in this review of the literature.
The determinants that affect the adoption of Life Cycle Costing (LCC) in construction
projects have been the subject of numerous research. The application of LCC in Malaysian
construction projects was the focus of a study by (Zakaria et al., 2020a), which discovered
that a major obstacle to its acceptance is the lack of awareness and understanding among
private clients and consultants. A standardised LCC framework is required, according to
(Maisham et al., 2021), who also looked at present LCC trends and future developments.
This was done to encourage LCC's widespread acceptance in the construction sector.
22
Another study by (Opawole et al., 2020) examined obstacles to the use of LCC in
construction projects in developing nations, such as a lack of data accessibility, a lack of
stakeholder collaboration, and a shortage of personnel with the necessary expertise to
conduct LCC analysis. In addition to emphasising the significance of taking into account
traditional financial expenses in addition to environmental and social costs, (Sadliwala &
Gogate, 2022) also developed an LCC technique for sustainable construction.
According to (Maisham et al., 2021), the main obstacles to the implementation of LCC in
green construction projects in Malaysia are a lack of knowledge and awareness, difficulty
acquiring reliable data, and the high cost of doing so. Similar to this, (Zaki et al., 2019)
investigated the obstacles to LCC on the practise of construction consultants in Malaysia
and found that a lack of awareness and knowledge, resistance to change, and a lack of
government regulations and incentives were the main obstacles.
Last but not least, (Maisham et al., 2021) examined the challenges to implementing LCC in
Malaysia's green construction projects and discovered that insufficient data, a lack of
awareness and knowledge, and a lack of government policies and incentives are the main
challenges. The majority of the studies point to significant obstacles to LCC's adoption in
construction projects as a lack of awareness and understanding, a lack of data availability,
resistance to change, and the high cost of doing so.
Several aspects that affect the use of LCC in building projects have been highlighted by the
researches that have been evaluated. These determinants include a lack of awareness and
information, a lack of data accessibility, a lack of willingness to adapt, and the high cost of
LCC implementation. A standardised LCC framework, stakeholder cooperation,
government rules and incentives, as well as the training of qualified individuals to conduct
LCC analysis are required to encourage the widespread implementation of LCC in building
23
projects. Future studies might look into how to get around these difficulties and encourage
the use of LCC in construction project planning.
2.2.4 Benefits of LCC adoption
In order to assess a project's overall cost throughout the course of its full lifecycle, life cycle
costing, or LCC, is a frequently utilised technique in the construction sector. Decision-
makers can analyse several solutions using this method based on the anticipated
expenditures over the course of the full project. There are a number of advantages to using
LCC in construction projects, according to studies, including better financial planning,
higher project quality, and more project efficiency.
(Zakaria et al., 2020b), for instance, discovered that the application of LCC in Malaysian
building projects enhanced private client investment choices. Similar to this, (Akinrata,
2016b) found that the use of LCC in the Nigerian construction industry could lead to a
reduction in project costs, while Mohd Zaki et al. (2019) argued that the application of LCC
could improve the consultant's decision-making process.
(Schneiderova-Heralova, 2018a)'s most recent study highlights the value of LCC for
construction projects. According to the study, LCC provides a more thorough and realistic
method for assessing the economic sustainability of construction projects. LCC offers a
more realistic view of the project's overall cost by taking into account all costs throughout
the project's life cycle, including construction, operation, maintenance, and disposal. This
then makes it possible to make better decisions and guarantees that funds are allocated to
long-term, sustainable solutions.
Similar to this(Heralová, 2017a) observes that LCC plays a crucial role in feasibility studies
for building projects. The study emphasises that the use of LCC during the feasibility study
stage might assist in determining the most economically feasible options for construction
24
projects. Project managers can find and contrast various design and construction possibilities
using LCC analysis, then choose the most affordable and environmentally friendly one.
For the industrialised building system (IBS) in the Malaysian construction sector,
(Shamsuddin et al., 2017b) present a framework of actions for successful use of LCC. The
report highlights how crucial LCC is to raising the calibre and sustainability of construction
projects. Measures to raise stakeholder awareness and knowledge of LCC, including the
public, business leaders, and the government, are included in the framework that has been
developed. In addition, the report recommends that policies and incentives be established to
promote LCC use in the building sector.
Ultimately, these analysed studies point out a number of advantages of LCC in building
projects, including greater cost control, increased sustainability, and better decision-making.
Despite the enormous advantages, the studies also show that there are a number of obstacles
to the adoption of LCC in the construction industry, such as a lack of awareness and
understanding, reluctance to change, and limited government assistance. All stakeholders
must work together to address these issues and encourage the use of LCC in construction
projects in order to fully benefit from it.
2.2.5 Barriers to LCC adoption
Life Cycle Costing (LCC) is an effective tool that supports construction project stakeholders
in making informed decisions by examining the economic impact of a building project
across its lifecycle. LCC implementation in the construction sector still confronts a number
of obstacles that prevent widespread use despite its many advantages. On the basis of
numerous studies that have looked into this matter, this section discusses the difficulties and
obstacles to LCC implementation in the construction industry. The evaluation of these
25
studies will aid in determining the underlying causes of LCC adoption barriers and offer
suggestions for stakeholders in the industry to address these issues.
Numerous studies have found that one of the major obstacles is a lack of awareness and
comprehension of LCC. According to (Akinrata, 2016b), LCC's poor adoption rate was
partly caused by the fact that few Nigerian professionals in the building business were
familiar with it. Similar to this, (Schneiderova-Heralova, 2018a) said that the lack of
knowledge and comprehension of LCC precluded construction experts from taking the
project's entire life cycle into account. (Heralová, 2017a) also pointed out that the difficulty
of LCC calculations and analysis posed a barrier to its adoption.
Lack of accurate data and information on the prices and functionality of materials, tools, and
systems over the course of their lifetimes is another major hurdle. For a precise LCC
analysis, this information is necessary, but it might not be accessible or trustworthy. The
implementation of LCC was hampered, according to (Zaki et al., 2019), since Malaysian
construction consultants had trouble locating accurate and trustworthy data.
Other obstacles consist of resistance to change, lack of standardisation and consistency in
LCC methodology and analysis, and the idea that LCC analysis takes a lot of time and
money. The absence of standardisation in LCC technique and analysis, according to
(Shamsuddin et al., 2017b), caused uncertainty and inconsistent results among construction
professionals, which hampered the implementation of LCC.
The complexity of LCC analysis, the lack of uniformity in LCC methodology and analysis,
resistance to change, and the idea that LCC analysis is time-consuming and expensive are
just a few of the hurdles that prevent the adoption of LCC in the construction sector.
Collaboration amongst a variety of stakeholders, such as building industry professionals,
governing bodies, and academic institutions, will be necessary to overcome these obstacles
26
in order to raise awareness, standardise technique and analysis, and enhance data availability
and dependability.
2.2.6 Frameworks for improving the adoption of LCC
The use of life cycle costing (LCC), which offers a thorough study of a project's costs across
its entire life cycle, has been acknowledged as a crucial tool for assessing the economic
viability of building projects. Despite its advantages, LCC implementation in the
construction sector has been sluggish because of a number of obstacles, including as a lack
of understanding, a lack of data availability, and a focus on immediate costs. Different
frameworks have been suggested to enhance LCC adoption in the construction industry in
order to get beyond these obstacles.
Figure 2.2 A framework for Initiatives for Successful Application of LCC for IBS in
Malaysian construction industry
Source: (Shamsuddin et al., 2017b)
(Shamsuddin et al., 2017b) devised a series of efforts for the successful use of LCC in the
Malaysian construction sector, specifically in the context of industrialised building systems,
and they provided one such framework (IBS). The framework identified five key initiatives:
27
establishing an LCC knowledge centre, creating a methodology that is standardised across
the industry, spreading awareness of LCC among industry stakeholders, offering financial
incentives for LCC adoption, and incorporating LCC into the regulatory framework.
Similar strategies were put forth by (Kwofie et al., 2019) to increase the adoption of Life
Cycle Assessment (LCA) in the South African construction sector. The suggested actions
included creating a national database for LCAs, offering LCA education and training, and
establishing government incentives for LCA adoption. The authors also stressed the
significance of industry stakeholder cooperation in the deployment of LCA.
(Bakis et al., 2003) created a different framework and suggested an integrated environment
for LCC in construction. Through the integration of LCC with other project management
tools including Building Information Modeling (BIM) and project scheduling software, the
framework aimed to provide a comprehensive perspective of a building project. The authors
stated that such an integrated strategy might result in better decision-making and more
precise cost estimations.
The application of LCC in the context of private client investments in Malaysian building
projects was studied by (Zakaria et al., 2020b). To encourage the implementation of LCC,
the authors emphasised the necessity for better cooperation between project stakeholders,
including clients, consultants, and contractors. They also stressed the significance of
standardising LCC methodology development and offering LCC training and education.
In conclusion, by implementing various frameworks that address the adoption barriers, the
adoption of LCC in the construction industry can be improved. These frameworks place a
strong emphasis on teamwork, knowledge exchange, and the creation of uniform techniques.
28
By implementing LCC, the construction sector may make better decisions that take into
account the long-term economic and environmental implications of projects, producing
more sustainable and financially viable results.
2.2.7 Summary of research methods used in related studies
The adoption of Life Cycle Costing (LCC) in the construction industry has been studied
using a variety of research methodologies. (Akasah & Rum, 2011) reviewed the literature
on LCC's application in the Malaysian construction sector. To determine determinants
influencing the adoption of LCC, the study used a systematic literature review technique.
The application of LCC and Life Cycle Assessment (LCA) methodologies in the built
environment was explored by (D’Incognito et al., 2015). Professionals in the Italian
construction business were surveyed using a questionnaire for the study's data collection.
(Olubodun et al., 2010b) investigated the extent to which LCC was used in the UK
construction sector. Data from construction industry professionals, such as architects,
engineers, and quantity surveyors, was gathered for the study via a questionnaire survey. A
framework of measures for the effective use of LCC in the Malaysian construction industry
was put up by (Shamsuddin et al., 2017b). To determine the essential initiatives necessary
for the successful use of LCC, the study used a qualitative approach and semi-structured
interviews with industry professionals.
The acceptance and application of LCC as a decision-support tool for remodelling
investments were examined by (Gluch & Gustafsson, 2015). The study used a case study
methodology and gathered information from building owners and managers in Sweden
through interviews and a questionnaire survey. (Heralová, 2017a) looked into the use of
LCC as a significant addition to feasibility studies in building projects. The study employed
a case study methodology and gathered information by interviewing Czech project managers
and architects.
29
In summary, a variety of study techniques, including literature reviews, questionnaire
surveys, case studies, and qualitative approaches, were utilised to examine the adoption of
LCC in the construction sector. These researches have shed light on the perceived
advantages and disadvantages that affect the adoption of LCC. Additionally, they have put
up frameworks for enhancing LCC usage in the building sector. Researchers have been able
to develop a thorough grasp of the challenges associated with the adoption of LCC in the
construction sector by utilising a variety of research techniques.
2.3 Summary of Literature Review and Research Gap
The literature review explored the concept of Life Cycle Costing (LCC) and its relevance in
the construction industry. The review highlighted the various approaches used in LCC
analysis, including Traditional LCC, Activity-Based Costing, and Environmental LCC. The
review also revealed that the adoption of LCC in the construction industry is not widespread,
and several determinants affect its adoption. These determinants include lack of awareness,
lack of data availability, lack of guidelines, and complexity of the LCC analysis process.
Additionally, the review identified several benefits associated with the adoption of LCC,
such as cost savings, improved decision-making, and environmental sustainability. Lastly,
the review highlighted the need for a framework that can help improve the adoption of LCC
in construction projects. Overall, the literature review provided insights into the current state
of LCC adoption and provided a foundation for the research study.
In spite of the increasing awareness of the importance of life cycle costing in the construction
industry, there is still a gap in knowledge on the determinants that influence its adoption in
the design stage of construction projects. Most of the existing studies have focused on the
30
adoption of life cycle costing in general, rather than specifically in the design stage of
construction projects. Additionally, most of these studies have been conducted in developed
countries and little is known about the adoption of life cycle costing in developing countries
like Kenya.
Based on the few studies done in Kenya, there is limited research on the determinants
influencing the adoption of LCC in construction projects. Hence, there is a research gap on
the identification of key determinants that influence the adoption of LCC, evaluation of
perceived benefits and barriers of adopting LCC, and the provision of a framework for
improving the adoption of LCC in the design stage of building construction projects.
Therefore, this study aims to determine the determinants that influence the adoption of LCC
in the design stage of building construction projects in Nairobi County, by identifying the
level of LCC adoption, evaluating the perceived benefits and barriers, and providing a
framework for improving LCC adoption. The study will use the Technology Acceptance
Model (TAM), Diffusion of Innovation Theory, and Institutional Theory as theoretical
frameworks to analyse the determinants influencing the adoption of LCC in building design
construction projects.
2.4 Conceptual Framework
The conceptual framework for this study is based on three main theories: the Technology
Acceptance Model (TAM), the Diffusion of Innovation Theory, and the Institutional Theory.
The TAM theory proposes that the perceived usefulness and ease of use of a technology
influence the adoption of the technology. In this study, the perceived usefulness and ease of
use of life cycle costing will be measured through the perceived benefits and barriers of
adoption.
31
The Diffusion of Innovation Theory suggests that the adoption of new technologies is
influenced by various determinants, including the characteristics of the innovation itself, the
communication channels used to spread the innovation, and the social system in which the
innovation is introduced. In this study, the characteristics of life cycle costing will be
measured through the level of adoption in building design projects, while the communication
channels and social system will be measured through the roles of stakeholders involved in
the design stage of construction projects.
Finally, the Institutional Theory posits that organizations adopt new practices and
technologies to conform to institutional norms and expectations. In this study, the
institutional pressures and incentives that influence the adoption of life cycle costing will be
measured through the policies, regulations, and standards related to sustainability and cost-
effectiveness in the construction industry.
Based on the above theories, the conceptual framework for this study proposes that the
adoption of life cycle costing in the design stage of construction projects (Dependent
Variable) is influenced by Perceived Complexity, Trialability, and Observability of LCC,
Compatibility of LCC with existing practices, Awareness and Knowledge Levels of
construction stake holders on LCC, and Organizational and Contextual Factors (Independent
32
Variables.
Independent Variables
Dependent Variable
• Complexity of LCC Adoption of LCC
• Trialability of LCC
• Observability of • Availability of LCC tools
LCC and software
• Compatibility of • Training and education
LCC with existing • Integration with existing
practices processes and systems
• Awareness and • Performance metrics
knowledge levels of • Communication and
construction collaboration
stakeholders on LCC
Figure 2.3 Conceptual Framework
33
CHAPTER THREE
3 MATERIALS AND METHODS
3.1 Study Area
Nairobi County is the study area for this research. Nairobi is the capital city of Kenya and
the county covers an area of approximately 696.1 square kilometers. Nairobi County is a
hub for construction activities, and the construction sector is a key driver of economic
growth in the county. The county is home to various construction projects, including
residential, commercial, and infrastructure projects.
The choice of Nairobi County as the study area is based on several factors. First, Nairobi
County is one of the most developed counties in Kenya, and as such, it is expected that the
adoption of Life Cycle Costing (LCC) in construction projects is relatively high. Second,
the county has a diverse range of construction projects, providing an opportunity to study
the adoption of LCC in different contexts. Finally, Nairobi County is easily accessible, and
data collection is relatively straightforward.
The study will focus on building construction projects in Nairobi County, with a specific
emphasis on the design stage. The study will involve collecting data from various
stakeholders involved in the construction industry in Nairobi County, including architects,
engineers, contractors, and clients. The data collected will be analysed to identify the
determinants that influence the adoption of LCC in the design stage of construction projects
in Nairobi County.
34
3.2 Material Acquisition and Preparation
3.2.1 Specific Objective 1
Research Design
For the first objective, the study will adopt a survey research design, which is a quantitative
research approach.
Methods of Data Collection
To identify the level of Life Cycle Costing adoption in Building Design projects, the
following methods of data collection will be used:
Survey Questionnaires: The study will use a structured questionnaire to collect quantitative
data from architects, engineers, contractors, and clients involved in the construction industry
in Nairobi County. The questionnaire will be administered online, and a stratified random
sampling technique will be used to select the respondents.
Document Review: The study will conduct a document review to collect data on the use of
LCC in construction projects in Nairobi County. The documents to be reviewed include
building plans, project reports, and financial records.
Sampling size:
Table 3.1 Objective-1 Sample size using Krejcie and Morgan Sample Size Table
Professionals Population size Sample size Source

1. Architects 1052 138 BORAQS
2. Quantity Surveyors 671 88 BORAQS
3. Civil Engineers 213 28 Engineers Board of Kenya
4. Structural Engineers 99 13 Engineers Board of Kenya
5. Electrical Engineers 51 7 Engineers Board of Kenya
6. Mechanical Engineers 458 60 Engineers Board of Kenya
Total 2,544 334
Data Analysis and Presentation
35
The collected data will be analyzed using descriptive statistics such as mean, mode, standard
deviation, and percentages. The results will be presented in tables, graphs, and charts. A
statistical software package such as SPSS or Excel will be used for data analysis.
Research Design
For the second objective, the study will use a case study research design, which is a
qualitative research approach.
To identify the key determinants that influence the adoption of Life Cycle Costing in the
design stage of building construction projects, the following methods of data collection will
be used:
Semi-Structured Interviews: The study will conduct semi-structured interviews with
architects, engineers, contractors, and clients involved in the construction industry in
Nairobi County. The purposive sampling technique will be used to select the respondents.
Focus Group Discussions: The study will also conduct focus group discussions with
experts in the construction industry, including academics, consultants, and policy-makers.
The purposive sampling technique will be used to select the participants.
The collected data will be analyzed using content analysis, which involves identifying
patterns, themes, and relationships in the data. The results will be presented in narrative
form, supported by quotes from the participants.
36
Research Design
For the fourth objective, the study will use a mixed-methods research design, which is a
combination of both qualitative and quantitative research approaches.
To provide a framework for improving the adoption of Life Cycle Costing in the design
stage of construction projects, the following methods of data collection will be used:
Document Analysis: The study will conduct a review of existing policies, regulations, and
guidelines related to the adoption of Life Cycle Costing in construction projects in Nairobi
County. The analysis will focus on identifying gaps and opportunities for improvement.
Key Informant Interviews: The study will conduct key informant interviews with experts in
the construction industry, including policymakers, consultants, and academics. The
purposive sampling technique will be used to select the respondents.
Focus Group Discussions: The study will also conduct focus group discussions with
architects, engineers, contractors, and clients involved in the construction industry in
Nairobi County. The purposive sampling technique will be used to select the participants.
The collected data will be analyzed using both qualitative and quantitative data analysis
techniques. The qualitative data will be analyzed using content analysis, while the
quantitative data will be analyzed using descriptive statistics and inferential statistics such
as regression analysis. The results will be presented in narrative form, supported by quotes
37
from the participants. The statistical results will be presented in tables, graphs, and charts.
A statistical software package such as SPSS or Excel will be used for data analysis.
38
CHAPTER FOUR
4 EXPECTED RESULTS AND OUTPUTS
4.1 Expected Results
The expected results of the study are as follows:
1. Based on the data collected from the survey of building design projects in Nairobi
County, the study will determine the level of adoption of Life Cycle Costing. It is
anticipated that the results will show a moderate level of adoption of Life Cycle Costing
in the study area.
2. The determinants that influence the adoption of Life Cycle Costing in the design stage
of building construction projects will be identified through a regression analysis of the
survey data. It is expected that factors such as project size, client demand, and
awareness of Life Cycle Costing will be significant predictors of its adoption.
3. Based on the results of the study, a framework for improving the adoption of Life Cycle
Costing in the design stage of construction projects will be proposed. It is expected that
the framework will include strategies and recommendations for policymakers,
construction professionals, and other stakeholders to enhance the adoption of Life
Cycle Costing in the study area.
Overall, the results of the study are expected to contribute to the literature on Life Cycle
Costing in construction projects and provide practical insights for promoting sustainable
construction practices in Nairobi County.
4.2 Expected Output
The expected outputs of the study are:
39
1. A report on the level of adoption of Life Cycle Costing in building design projects in
Nairobi County, which will include a summary of the survey results and descriptive
statistics on the use of Life Cycle Costing in the study area.
2. A list of key determinants that influence the adoption of Life Cycle Costing in the
design stage of building construction projects in Nairobi County, which will be based
on the regression analysis of the survey data.
3. A framework for improving the adoption of Life Cycle Costing in the design stage of
construction projects in Nairobi County, which will include strategies and
recommendations for policymakers, construction professionals, and other stakeholders
to promote the use of Life Cycle Costing in the study area.
4. A set of conclusions and recommendations based on the study findings and the
proposed framework, which will be aimed at improving the adoption of Life Cycle
Costing in the design stage of construction projects in Nairobi County.
Overall, the expected outputs of the study are intended to contribute to the knowledge and
understanding of Life Cycle Costing in construction projects and provide practical guidance
for promoting sustainable construction practices in Nairobi County.
40
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Thomas B Research Proposal LCC Framework

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PAN AFRICAN UNIVERSITY

INSTITUTE FOR BASIC SCIENCES, TECHNOLOGY AND INNOVATION

Master of Science in Civil Engineering

(Construction Engineering and Management Option)

Building Construction Industry: A Case Study of Nairobi County

Name: Thomas Berhe Tsegai

Reg. No: CE 300 – 0022/2021

Key words: Life Cycle Costing, Adoption, Nairobi, Cost management.

TABLE OF CONTENTS ......................................................................................................ii

LIST OF TABLES ................................................................................................................ v

LIST OF FIGURES .............................................................................................................. vi

ABBREVIATIONS AND ACRONYMS ............................................................................vii

CHAPTER ONE .................................................................................................................... 1

1.1 Background to the Study......................................................................................... 1

1.2 Statement of the Problem ........................................................................................ 5

1.3 Objectives ............................................................................................................... 5

1.3.1 General Objective ............................................................................................ 5

1.3.2 Specific Objectives .......................................................................................... 5

1.4 Hypothesis .............................................................................................................. 5

1.5 Research Questions ................................................................................................. 6

1.6 Justification and Significance of the Study ............................................................. 7

1.6.2 Significance ..................................................................................................... 7

1.7 Scope of the study ................................................................................................... 8

CHAPTER TWO ................................................................................................................... 9

2 LITERATURE REVIEW ............................................................................................... 9

2.1 Theoretical Review ................................................................................................. 9

2.1.2 Technology Acceptance Model (TAM) ........................................................ 12

2.1.3 Diffusion of Innovation Theory ..................................................................... 13

2.1.4 Institutional Theory ....................................................................................... 15

2.1.5 Summary of theoretical review ..................................................................... 16

2.2 Empirical Review ................................................................................................. 17

2.2.1 LCC adoption in Building Design projects worldwide ................................. 19

2.2.2 LCC adoption in Building Design projects in Kenya .................................... 20

2.2.3 Determinants influencing LCC adoptions ..................................................... 22

2.2.4 Benefits of LCC adoption .............................................................................. 24

2.2.5 Barriers to LCC adoption .............................................................................. 25

2.2.6 Frameworks for improving the adoption of LCC .......................................... 27

2.2.7 Summary of research methods used in related studies .................................. 29

2.3 Summary of Literature Review and Research Gap............................................... 30

2.4 Conceptual Framework ......................................................................................... 31

CHAPTER THREE ............................................................................................................. 34

3 MATERIALS AND METHODS ................................................................................. 34

3.1 Study Area ............................................................................................................ 34

3.2 Material Acquisition and Preparation ................................................................... 35

3.2.1 Specific Objective 1....................................................................................... 35

3.2.2 Specific Objective 2....................................................................................... 36

CHAPTER FOUR ............................................................................................................... 39

4 EXPECTED RESULTS AND OUTPUTS .................................................................. 39

4.1 Expected Results ................................................................................................... 39

4.2 Expected Output ................................................................................................... 39

Figure 2.1 Structure of Life Cycle Costs ............................................................................... 9

Malaysian construction industry.......................................................................................... 27

Figure 2.3 Conceptual Framework ...................................................................................... 33

AEC Architecture, Engineering, Construction

AECO Architecture, Engineering, Construction and Operation

BDS Building Description Systems

BIM Building Information Modelling

BPM Building Product Model

CAD Computer Aided Design

Observability + β4 Compatibility + β5* Awareness and Knowledge Levels + β6*