### Christiono Utomo : *Life Cycle Cost on Value Criteria for Project Evaluation*

Christiono Utomo S.T., M.T.

Abstract

As a process for evaluating the total economic worth of a usable project segment by analyzing initial costs and discounted future costs, Life Cycle Cost (LCC) can be implemented at any level of the design process and can be an effective tool for project evaluation. This paper deals with the definition of the value criteria for evaluating a construction project. The criteria are taken from the basic theory of Value Management which is function and cost. The main reason for using function is the ontology of design, that every design of technical solution should have a function. Function will be determined from Function Analysis System Technique (FAST) and Cost will be calculated from the concept of LCC. Because existing models on many researches in project evaluation commonly accept optimization-based models, the characteristic of value criteria cannot be applied and can not solve the problem of value criteria. This research applies the satisfying game method where function and cost of solution techniques as value criteria can be formulated on project evaluation by categorizing the problem, comparing function and cost, and representing the value of a project on same scale. This may be done by creating selectability (Ps) and rejectability (Pr) functions and normalizing the problem so that the decision-maker has a unit of function utility and a unit of cost utility to evaluate the project.