![Sample our Built Environment journals, sign in here to start your access, Latest two full volumes FREE to you for 14 days]({"type":"image" , "src" : "/sda/5926/TOC-Subject-Sample-2021-Built-Environment.jpg"})
Abstract
A life cycle costing system should include the key variables that drive future costs in order to provide a framework for reducing the risk of under- or overestimating the future costs for maintenance and rehabilitation activities. In Sweden, price of oil products is mostly affected by the global economy rather than by the national economy. Whereas the price index of oil products has had a high fluctuation in different time periods, the cost fluctuation related to labour and equipment has been steady and followed the consumer price index (CPI). Contribution of the oil products was shown to be more than 50% of the total costs regarding construction and rehabilitation of asphalt pavements in Sweden. Consequently, it was observed that neither Swedish road construction price index (Vägindex) nor CPI has properly reflected the price trend regarding the asphalt pavement construction at the project level. Therefore, in this study, a framework is suggested in which energy- and time-related costs are treated with different inflation indices in order to perform a better financial risk assessment regarding future costs.