Analysis of The Application of The Life Cycle Cost Method of Green Retrofit of Mosque
Building Based on Gbci and Edge Benchmarks to Improve Investment Performance
Indonesian Journal of Social Technology, Vol. 5, No. 4, April, 2024 1387
system for energy-saving transformations in buildings, reducing energy consumption by
27.69%.
In addition, based on previous research on other buildings, such as the CIMB
NIAGA building in Jakarta, which already holds a green platinum certification from
BCAI Singapore, there is an energy conservation efficiency of 10% and a water
conservation efficiency of 10% for green retrofit buildings (Purnomo & Tenriajeng,
2022).
Life cycle costing is technically based on the principles of engineering economics,
and it considers the time value of money at each stage of the life cycle to calculate costs
and benefits. The calculations take into account various cost aspects, including initial
investment costs (initial costs for both design and installation), energy costs (electricity
and water costs), and operation and maintenance costs (Dwaikat & Ali, 2014).
Several cost components are used to conduct a life cycle cost (LCC) analysis to
compare different retrofit strategies that address relevant costs. These costs include
construction site preparation and preliminary works, construction (retrofit), maintenance,
repair, replacement, and operational energy costs. The overall life cycle cost breakdown
consists of dismantling original parts, developing each retrofit strategy, replacing material
for maintenance, and using operational energy (Rodrigues & Freire, 2017).
Based on (Kamaralo, Alhilman, & Atmaji, 2020), the journal Life Cycle Cost is
classified into several parts, including Sustaining and Acquisition costs. Sustaining costs
are annual energy or operational costs, maintenance, and replacement costs. Acquisition
Cost is the sum of initial yearly costs, including construction costs, initial costs of green
building features, and administrative costs.
This study examines how a cost-benefit analysis could be used to evaluate
sustainability, with a particular emphasis on the economic aspect of sustainability and the
use of LCC as a tool (Tushar et al., 2022). Results of cost simulations generated from the
LCC process include investment performance indicators such as Net Present Value
(NPV), Benefit-Cost Ratio (BCR), Internal Rate Of Return (IRR), and break-even point
(BEP), along with additional indicators for starry designs (Huo et al., 2023).
A project risk index system for the retrofit project in the Old Housing Area (ORA)
was constructed throughout the project life cycle. Participants' opinions on possible risk
factors and the degree of impact on the project were collected through a questionnaire
survey. Based on C-OWA and grey cluster analysis, a risk assessment model was
developed to evaluate risks, and risk management and control were proposed based on
different risk levels. Risks involve decision-making, design, construction, operation, and
maintenance stages (Lee, Mohamed, Masrom, Abas, & Wee, 2020).
The risks throughout the project cycle will affect the overall value of the entire
project. According to (Wen, Lau, Leng, & Liu, 2023), risk is a factor causing unexpected
conditions that can cause loss, damage, or loss. Therefore, based on previous research, an
evaluation of the risks avoided in the green retrofit of buildings in the preliminary study
on energy efficiency is conducted to overcome the risks of using green building items,