Barriers affecting implementation of life cycle cost analysis in construction projects: SEM approach

The future cash flow associated with construction projects remains the most significant challenge to be reviewed in the initial stages. Life cycle cost analysis (LCCA) is an efficient approach for determining the associated future cost of a project. However, despite its significance, LCCA has yet to be implemented in construction projects due to certain barriers. This study aims to identify LCCA barrier factors and analyse their correlation using a structural equation (SEM) model. To achieve the aim of the study, an extensive literature review was conducted about LCCA barriers and their impact on implementation, followed by an SEM. Centralised relationships and hypotheses were developed to reflect the interactions amongst the variables logically. Finally, a questionnaire survey amongst the construction industry professionals was undertaken to assess barriers to implementing LCCA. Relative importance index (RII) is used to rank the individual factors. Whereas partial least square (PLS) method was applied to analyse the data and evaluate the impact of the classified latent variables on LCCA implementation. Results show that data availability and LCCA knowledge are the most significant barriers influencing LCCA implementation. The lack of policies, time and motivation also affects the implementation of this approach. However, budget constraints and uncertainty do not significantly affect LCCA implementation.