Study on life cycle costing: a case of building for private high school in Jakarta

There are increasing awareness of life cycle costing (LCC) by the management who has lengthy experience in operation and maintenance of the building. Maintenance of buildings includes replacement, updating, and repair building components in accordance with predetermined standards. This research aim at identifying building maintenance practices of a private high school Building in Jakarta. This instrument of the study was referred to Regulation of Minister of Public Works. Another aim is to identify service life of the building components, and conducts 25 years life cycle cost plan for the school management by adopting model of LCC from ISO 15686 part 5. Research data obtained by distributing questionnaires to the Section of Maintenance 30 persons, and school teachers 68 persons. Result showed that the implementation of the management school provides a score of 4.6 out of 5 scale and considered as a very good maintenance performance for the building. To confirms whether the user perception on the operating and maintenance efforts, a similarly assessment were obtained from direct users who provide a good category. From the results of life cycle costing, the study shows that: for long-term life cycle cost plan, the proportion cost for 1) construction, 2) operational, and 3) replacement and maintenance are 46%, 39% and 15% respectively.


Introduction
Indonesia Government concerned to the environment issue since it established Ministry of Supervisory and Environment at the first time at 1983 with Emil Salim as the leader of department in Soeharto presidential era. The first Acts no 23:1997 regarding Environment Management was issued in 1997 [1]. Since then many regulatory following the Acts, and the one related to sustainable construction was the Government Regulation no 27:1999 [2] regarding Environment Impact Analysis. To implement the regulations, Ministry of Environment issued types and scales of business that needed to apply the regulation, and provided guidance on how to carry out the environment impact analysis [3]. The efforts for sustainable development in construction industry in Indonesia was shown by the established of Green Building Council of Indonesia (GBCI) since 2008. GBCI working together with the International Finance Corporation, the World Bank Groups issued an initial guide green building assessment [4].
Indonesia as a developing country in the world today is promoting sustainable development in all fields. In implementing directed development, it is expected construction to be able to deliver efficient and effective results and environmentally accepted. This refers to the constructions sustainable concept, where a development can work together between concept of the responsible development, has the spirit of maintenance, and accountability.
Lack of operation and maintenance strategies to maintain building system performance leads to increased operating and maintenance (O&M) cost and less healthy buildings. The first step toward improved practices that take advantage of potential operating savings is to identify the O&M practices routinely performed in buildings. Understanding LCC and service life of building component has two major benefits. First, baseline for service life is the benchmark from which to estimate cost for O&M practices. And second, service life baseline practices can be used as a guide to direct the long terms O&M cost estimate for the assets [4].
In line with the concept of sustainable constructions, costs incurred in the development process is based on the calculation of life cycle cost, which is an integrated process in decision making, planning and control, procurement, operational, security, and the final value assets [5]. The purpose of the life cycle cost is to manage the process repeated from the planning to the destruction or replacement of assets, to manage the lifecycle cost (long-term) of the short-term savings, to ensure the appropriate consistent quality service of the designed building, to improve sustainability and lowers the risk of failure and maximize the potential and advantages of the provision of services, in order to minimize the associated costs throughout the life of the building itself [6].
In planning life cycle cost, information of the service life of component used such as equipment, and building materials are needed. This is something interesting because whenever service life assessment is only done on a building in overall activities. Determine the service life calculation aims at facilitating the maintenance and replacement of components of the building materials that have overdue the limit of its service life [7] The objectives of the study were: 1). to assess the level of building maintenance; 2) to identify service life of component of the material a building; and 3). to provide a long-term plan of 25-year life cycle cost a school building in Jakarta. The building is located in the complex of the school at S. Parman Street in Western Jakarta. This school building plans take as long as 1 year. The building is planned to have 5 floors and functioned for offices, class rooms, dancing, laboratory, meeting rooms.

Building maintenance issues.
According to the Regulation of the Minister of Public Works No. 24 / PRT / M / 2008 [10] concerning Guidance on Maintenance and Maintenance of Building, Building is the activity of maintaining the building of building and facility for building always functional (preventive maintenance). [11], explains the main objectives of the process are: 1) for additional building age; 2) to ensure the transfer of existing and also profit from maximum investment; 3) to ensure the safety of people using the building; and 4) to ensure operational readiness of emergencies. Ervianto [12], conducted a case study on the maintenance of a campus building. The purpose of the research is to find out the program of building maintenance and its facilities that have been running and redefine the building maintenance program that should be done. In his research Ervianto [12] concluded that there is no clear and structured maintenance program, which is only doing activities when there has been instability of the system or facilities attached to the building. In addition, there is no data about the lifespan of any particular facility, such as lamp, faucet, plumbing, telephone. As well as past data about the replacements that have been made. Based on these conclusions, Ervianto [12] suggests to start thinking of a maintenance program structured and periodic for all existing facilities. All facility data in the building is prepared and recorded the date of replacement of all components, so that the age of each component can be detected properly and need to be improved managerial aspects of the maintenance unit, including special executive in facilities that require skill and knowledge enough.

Building maintenance and maintenance guidance
In this study Regulation of Minister of Public Works Number: 24/PRT/M/2008 regarding Guidance of Maintenance and Maintenance of Building was referred. The observed scope of maintenance was the architectural, mechanical electrical, and plumbing. However, not all building components were observed for maintenance due to limited research resource. The 21 standards of components for maintenance of building available in the guideline was adopted [10].

Building maintenance management planning
The process of making maintenance planning is based on the general condition, but if there is a specific building then the maintenance program is adjusted to the characteristics of the building itself. Completeness of each component of the building and its facilities should be maintained properly so that at any time throughout the building is enabled to work in accordance with operational requirements. The maintenance period of each part of the building differs from one to another depending on its life cycle. Planning is a process that depends on each other comprehensively. Some of the things that should be of concern in the creation of a maintenance program are: the number of activities that can be separated; the time scale of each activity; sequence of activities; take notes during inspection [12].

Life Cycle Costing
According to ISO 15686 part 5, life-cycle costing (LCC) is a valuable technique that is used for predicting and assessing the cost performance of constructed assets. LCC is one form of analysis for determining whether a project meets the client's performance requirements. Analyses can necessitate the use of other parts of ISO 15686 and current economic data from clients and the construction industry. It should be possible to use this part of ISO 15686 without extensive reference to other parts, although a number of the terms and techniques described are covered in more detail in the other parts [13] LCC is a simple idea, in which all costs arising from investment decisions are relevant to the decision. Life cycle cost is suggested as a step forward through a number of stages. All stages in the development cycle will be skipped over the life of the building, and of course in running it all cost. There are some understanding life cycle cost according to some experts, including as the following. 1. According to Ashworth [14], the Life Cycle Cost of a building or structure includes the total related cost from the beginning to the final disassembly stage.
According to Barringer and Weber [7], Life Cycle Cost (LCC) is a conceptual modeling of cost calculation from the initial stage to dismantling an asset from a project as a tool for making decisions on an analysis study and calculating the total cost that exists during the cycle his life. 3. According to Pujawan [15], Life Cycle Cost of an item is the amount of all expenditures associated with the item since it was designed until it is no longer used.
The key use of Life Cycle Costs is when evaluating alternative solutions to specific design issues. Things to review are not just costs but also the cost of maintenance and repair, the long term plan, the appearance, and the things that might affect the value as a result of the available options. Although the appearance aspect is an aesthetic consideration, it is very subjective, but that aspect cannot be ignored in the overall evaluation. Thus, LCC is a combination of estimation and wisdom.

Methodology
This research is a quantitative research using descriptive statistics method. As Sekaran, [16] argued that descriptive statistics method was to the search for facts with appropriate interpretation. Descriptive research studies problems in the community as well as certain situations, including on relationships, activities, attitudes, views and processes that are underway and the effects of a phenomenon.
The location of the research is a building in BPK Penabur 2 Jakarta. Preparation of the study began in September 2016. Questionnaires began to be distributed to respondents as well as in October 2016. Data analysis, discussion and conclusion were made during October-December 2016.
The data were collected by using questionnaires. List of questions a very important tool, and its statement should be easily understood regarding a particular aspect. Questionnaires in this study were closed questionnaire, i.e. the respondent was only given the opportunity to choose an answer which has been provided [17]. In this research used structural questionnaire. Secondary data of cost regarding LCC were obtained from the Office of the Maintenance for the school.
Life cycle cost is the cost during the life of the plan buildings, which can be formulated as below: LCC = Initial Cost + Usage Fee + Maintenance and Replacement Cost. Where, the initial cost is the cost of planning and implementation of buildings, costs use is the cost incurred during the building is in operation, and maintenance and replacement costs are fees for maintenance and reimbursement building components during the life of the building plan.

Respondents and the description of the School Sites
Total respondents participated in this study was categorized as direct user category are 68 people, consisting of 40 students from middle school and 28 teachers and staff of BPK Penabur 2 Jakarta. From the total 68 respondents between students and teachers/staaf consists of 35 male respondents and 33 female respondents. As common knowledge, the school since the last two decades had produced many talents students who won many Olympic medals in mathematics, physics, and others in International level.

Analysis of service life and results
The questionnaire were distributed directly to the respondent supported by interview to know service life of component of building material used in building in the school. From the interview results obtained data service life and description of building materials used in school building. Table 2 shows the data of service life and description of building component and material used for the school building.

Development costs
The value of construction costs is based on information from the management of the building based on development data of Rp.5.000.000/ m² and fees 10% of development cost. Then the total cost of development is (9.984 x Rp.5.000.000) + (10% x (9.984 x Rp.5.000.000)) = Rp.54.912.000.000.   Table 4 shows the cost spent for the utilities group based on the information provided from the building maintenance officers during the interview. For the calculation of the group that make the operational cost with total cost per month that is Rp.154.311.480 used as percentage, hence get the percentage of cleaning 45%, utilities 23%, and admin 32%. The pie chart of the group that makes up the operational costs is shown in Figure 1.

Maintenance and Replacement Costs
The cost of maintenance and replacement with a 25 years plan consists of the cost of roof structure, wall, floor, ceiling, sanitation, ME, and accessories. For details of cost calculation can be seen below: 1. Group roof structure consists of the following components. Structure steel frame with service life 40 years. The school building was built in 2009 with the LCC of 25 year plan then there is no maintenance and replacement on steel frame structure. Zincalume tile with 35 year service life. The 25 year LCC plan there is no replacement and but still possible the maintenance by painting. Gutter with service life of 15 years. The total cost was estimated as Rp. 343.000.000. 2. The wall group consists of the following components. Paint wall with 10 year service life for exterior and 15 years for interior. The interior area is 16,520 m² and the replacement cost is Rp.105.000/m² (cost including material and wage), then the cost incurred in the 15th year is 16,520 x Rp.105.000 = Rp. 1 Table 6 and Figure 2 shows the summary of LCC for 25 years for maintenance and replacement cost of the building, and the proportion the groups components of the building respectively. Roof structure = 2.70%; wall = 36.10%; ceiling = 11.60%; sanitary = 4.60%; accessory = 1.80% and mechanical and electrical (ME) =43.20%.
Since service life for the floor is longer than 25 years, then the replacement cost would not appear in the LCC plan.  Figure 3 shows the proportion of these costs.

Discussion on depreciation
Depreciation is a decrease in physical property over time for its service life. Depreciation is a non-cash cost that affects income tax. Deprecated properties must meet the following conditions: 1) should be used in business or maintained to generate income; 2) must have a certain useful life, and should be longer than a year; 3) the property was decay/destruction, obsolescence, or decreases the value of its original value.
Depreciation is an important component in technical economic analysis, since it can be used to determine the value of an asset over time, can be used to allocate depreciation (accounting depreciation) value of the asset. Since the building would be handed over and be operated by the building management of the school building, the calculation of depreciation value of the building was ignored [18,19,20]. Table 7 shows the comparison of LCC cost of three studies. Private schools tends to have larger operational cost. While that from state university had larger maintenance and replacement. Based on the experience gained during the study, five suggestion are provided. 1) As to find out the gap provided by building maintenance officers and the user, the building maintenance officers should pay more attention to the maintenance of buildings ranging from the smallest to large components and facilities in order to provide comfort for users of the building, i.e. maintenance of gypsum ceiling has to be carried out with accordance to the standard of Regulation of Minister of Public Works Number: 24/PRT/M/2008. 2) In this study the life cycle costing plan that using service life obtained from in building management officers are not recorded data. All data were at the top of the head of the officer. Therefore, the top management school should start with the policies to record g service life related to the use of materials and quality of materials so it can determine more reasonable service period of the component of the building. This can also be a consideration for better of the future in planning life cycle costing.

Comparison with other school buildings
3) The cost incurred in each group of the LCC plan can be adjusted to the financial condition of the school, if the management desires for savings on some group of building components. 4) For the future studies in service life of the building components, it cannot solely rely on the manufactures that produced on the building component. Factors methods form ISO 15686 part 1 on service life predicting and methodology can be adopted. 5) For future study, perhaps the LCC 25 five years would be more appropriate to extend to whole life cycle costing.