The Public's Partner in Building Indiana's Infrastructure

Life Cycle Cost

 Many agencies are turning to life-cycle cost analysis (LCCA) as a means of evaluating the
long-term economic viability of pavement designs. As such, it is important for each agency
to conduct a realistic assessment of pavement economics in order to provide objective input into
the life-cycle cost analysis.

Life-cycle cost analysis is a tool that can help evaluate the long-term benefit of structures.
However, it must be correctly used and the data used in conducting LCCA must be
derived from existing records that accurately reflect the expectations for the initial cost,
rehabilitation timing and costs, salvage value, and discount rate. Some of these data exist
in readily retrievable and usable form while others will require that an agency examine its
own documented experience. It should also be remembered that the life-cycle cost analysis is
only a tool, and its results do not constitute a decision. The decision for selecting a particular
type of pavement should also consider factors not incorporated in the life-cycle cost analysis.

The APA’s software comes in two versions: LCCA Original and LCCA Express. Both use the principles recommended by FHWA. Both are unbiased and reliable.

LCCA Original calculates the net present value of different pavement alternatives using either deterministic or probabilistic analysis as described in FHWA Publication No. FHWA-SA-98-079, Life-Cycle Cost Analysis in Pavement Design.

Among the powerful features of the software are
•The ability to include or exclude user delay costs from the complete analysis or any single work activity
•Maximum AADT value, important for projects analyzed over long periods or with high traffic growth.
LCCA Express is a simplified version of LCCA Original. Geared to less-complex projects, it’s quick and easy to use.

Please click the link below for further information





© 2017, Asphalt Pavement Association of Indiana
Website by Vieth Consulting