What is tco in construction terms?

TCO stands for Total Cost of Ownership in construction industry. It is a concept used to determine the total cost of an asset over its lifecycle including the acquisition costs, operational costs, maintenance costs, and disposal costs. In construction terms, TCO is a holistic approach to managing the costs associated with building and maintaining a facility.

Factors that impact the TCO of a construction project include materials used in construction, durability and longevity of those materials, energy efficiency, maintenance requirements, and costs associated with renovations and upgrades. Construction companies and building owners often use TCO calculations to analyze the long-term financial impact of their construction decisions and identify opportunities for cost savings.

By considering all of the costs associated with owning and operating a building, TCO can help construction professionals make informed decisions about equipment, materials, and systems that offer the best long-term value. It is a crucial metric in the construction industry as it helps in budgeting, projecting cashflow, mitigating risks, and ensuring the financial viability of a project.