American National Standards Institute Publishes Total Cost of Ownership Standard

The American National Standards Institute published APPA 1000-1 in January of 2018, creating the first national standard for Total Cost of Ownership (TCO) in the United States. The standard identifies and defines the foundational elements and the structure required to implement TCO principles for facilities. It is essential that the entire cost of purchasing and owning a building through its lifetime is understood by all stakeholders, especially before finalizing design plans for new construction. Predictive cost analysis for a new building often stops at the first costs of planning, construction and commissioning, when in fact the life of an asset requires replacement of building systems, interior and exterior maintenance, updates to design and functionality, and other critical requirements. As building infrastructure ages, and as a facility’s purpose changes over time, owners and operators must anticipate necessary updates and replacements to support the full value of the asset while effectively managing costs. Utilizing Total Cost of Ownership, building owners and facility professionals are empowered to predict needs and deliver data-driven results, thereby allowing them to manage the building portfolio proactively, rather than reactively. APPA 1000-1 – Total Cost of Ownership for Facilities Asset Management – Part 1: Key Principles is available through the APPA bookstore.