Focus on life cycle costs is one of the most important success criteria in PPP projects as – in contrast to conventional construction projects – low construction cost is not the only major factor. On the contrary, operating and maintenance costs are at the forefront of such large projects.
Here too, KMG partners can contribute with their considerable know-how and have, as early as the tendering phase, strived to optimise the M51 Kliplev-Sønderborg motorway project such that life cycle costs with the chosen construction technologies are not only optimised during the concession's life span but also for decades thereafter. KMG's offer thus not only reduces construction costs through innovative solutions but also ensures lower life cycle costs which are sustainable beyond 26 years. All in all, the technologies chosen by KMG will reduce life cycle costs by more than 40% in comparison with a typical Danish motorway.
Motorway concessions are highly complex projects, which consist of several phases. The phases range from initial ideas on project optimisation, assessment of the project baseline and goal formulation through project monitoring and actual construction to subsequent monitoring during the operating phase. A high degree of cooperation is required if such a complex process is to succeed. Often, cooperation between the parties involved in a project simply entails exchanging results. Proposals are prepared for individual project goals without any coherent, unifying consideration of the various project goals. Through its planning of the project, KMG will ensure that solutions are attained for the various project goals which contribute to the overall objectives. This approach is characterised by:
- Overall consideration of the project goals and integration of technical, financial, social and relevant environmental criteria
- Close communication between project participants
- Long-term consideration of the motorway's total life cycle
- Simulation and assessment of various construction techniques
- Interdisciplinary planning and cooperation between the parties involved
A motorway's life cycle consists of the total duration of the planning, construction, operating and maintenance phases. The costs incurred during the life cycle that can be directly linked to the project thus constitute the life cycle costs.
By comparing life cycle costs for various construction methods, it is possible to find the most economically favourable variant in relation to the total life span. The objective of planning is to optimise the life cycle costs, i.e. the construction costs plus the discounted consequential costs (the life cycle costs' cash value). Cost optimisation of the entire life cycle is only possible if consequential costs are included during the planning of infrastructure systems. A precondition is that the costs are transparent, i.e. that costs can be specified within the framework of the planning process as initial costs or consequential costs.