Replacement Costs

Again, closely tied to performance, the expected life of a technology is an important economic consideration. This indicator will estimate how often you will have to replace it. Light bulbs are a good example. An incandescent bulb has a life expectancy of about 1,200 hours; a CFL bulb, on average has a life expectancy of approximately 10,000 hours, although an LED is expected to have a useful life of about 50,000 hours. So, for any technology, you should also consider how often it will need to be replaced. Be sure to include the labor to replace it in addition to the cost of the product.

The durability of a product or technology will impact future costs for both replacement and maintenance. Therefore, as you select technologies to include in your project, always consider how well they will hold up under the expected wear and tear they will get. For example, more durable flooring materials will not only last longer than cheaper alternatives, but they also may not require as much maintenance, such as waxing or refinishing. The countertop is another product for which you may want to consider higher quality materials that will last longer than the least cost option. More durable materials and equipment may reduce the amount you need to set aside in your reserve fund each year.