Short answer
Designers and engineers should advocate for and contribute to the development of more sophisticated LCC tools that can accurately model the economic, environmental, and social impacts of circular design strategies throughout a building's entire lifecycle.
- Field
- Sustainability
- Source
- Discover Applied Sciences (2026)
- Method
- Systematic Literature Review
- Sample
- 51 case studies
- Evidence
- Moderate effect
While Life Cycle Costing (LCC) can quantify the financial benefits of circular economy (CE) approaches in construction, its current application is fragmented and limited by linear assumptions. This sustainability research insight is drawn from a 2026 study published in Discover Applied Sciences. Using Systematic literature review with 51 case studies, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Designers and engineers should advocate for and contribute to the development of more sophisticated LCC tools that can accurately model the economic, environmental, and social impacts of circular design strategies throughout a building's entire lifecycle.
Life Cycle Costing (LCC) is Underutilized for Circular Economy Strategies in Construction
While Life Cycle Costing (LCC) can quantify the financial benefits of circular economy (CE) approaches in construction, its current application is fragmented and limited by linear assumptions.
Discover Applied Sciences · 2026
Key Findings
- 01There is a slow but increasing trend in using LCC to evaluate the economic feasibility of CE strategies in construction.
- 02Financial LCC is dominant, but environmental and social LCC approaches are emerging.
- 03Challenges include the linear progression of building life cycle stages assumed in LCC and the lack of a standardized LCC methodology.
- 04Diverse LCC approaches, system boundary definitions, and cost perspectives are used.
Application
Design takeaway
Designers and engineers should advocate for and contribute to the development of more sophisticated LCC tools that can accurately model the economic, environmental, and social impacts of circular design strategies throughout a building's entire lifecycle.
How to apply
When evaluating design options, utilize LCC frameworks that extend beyond initial construction costs to include operational, maintenance, and end-of-life phases, with a specific focus on how circular material choices and design strategies impact these long-term costs.
Project actions
- 01When conducting a Life Cycle Assessment (LCA) or LCC, clearly define the system boundaries and the specific cost categories you will include.
- 02Consider how the principles of the circular economy (e.g., reuse, remanufacturing, recycling) might influence costs at different stages of a product's or building's life.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Comprehensive review of a significant number of case studies.
- +Identifies both current practices and critical gaps in the literature.
Limitations
The availability of data for all life cycle stages, especially for novel circular materials or systems, can be a significant limitation. Standardizing the definition of 'cost' across financial, environmental, and social dimensions is also challenging.
Reliability & validity
The reliability of the findings depends on the quality and consistency of the reviewed literature. Validity is enhanced by the systematic approach to the literature search and selection process.
Think critically
To what extent can current LCC methodologies truly capture the long-term economic benefits of circular design, given their historical focus on linear product lifecycles?
Design Principles
"Holistic Life Cycle Costing for Circular Design"
Designers and engineers need robust financial tools to advocate for and implement sustainable, circular strategies. Understanding the limitations of current LCC methods in a CE context is crucial for developing more comprehensive evaluation frameworks that truly capture the long-term value of circular design.
What This Means for Your Design
Using Life Cycle Costing (LCC) to figure out the total cost of a building over its whole life is important for circular design, but current methods aren't perfect and need to be improved to better handle how circular buildings work.
How to use in your project
- 1.Reference this review when discussing the importance of financial evaluation for circular design strategies and when identifying limitations in current assessment tools.
Add to My Project
Quick Cite
Paragraph starter
This research highlights the critical need for robust financial evaluation of circular economy strategies in the construction sector. While Life Cycle Costing (LCC) offers a framework for quantifying these impacts, current methodologies often fall short due to their inherent linearity and lack of standardization. Future design projects should aim to develop and apply more comprehensive LCC approaches that fully integrate economic, environmental, and social considerations across the entire lifecycle of circular built environments.
Source
Discover Applied Sciences
Life cycle costing in the circular economy: a state-of-the-art review of current trends in the building construction sector
journal · 2026
View sourceQuestions About This Research
- What does the research say about life cycle costing (lcc) is underutilized for circular economy strategies in construction?
- Designers and engineers should advocate for and contribute to the development of more sophisticated LCC tools that can accurately model the economic, environmental, and social impacts of circular design strategies throughout a building's entire lifecycle. Evidence: Discover Applied Sciences (2026).
- Why does "Life Cycle Costing (LCC) is Underutilized for Circular Economy Strategies in Construction" matter for design?
- Designers and engineers need robust financial tools to advocate for and implement sustainable, circular strategies. Understanding the limitations of current LCC methods in a CE context is crucial for developing more comprehensive evaluation frameworks that truly capture the long-term value of circular design.
- How can designers apply this research?
- Designers and engineers should advocate for and contribute to the development of more sophisticated LCC tools that can accurately model the economic, environmental, and social impacts of circular design strategies throughout a building's entire lifecycle.
- What were the main findings?
- There is a slow but increasing trend in using LCC to evaluate the economic feasibility of CE strategies in construction.. Financial LCC is dominant, but environmental and social LCC approaches are emerging.. Challenges include the linear progression of building life cycle stages assumed in LCC and the lack of a standardized LCC methodology.. Diverse LCC approaches, system boundary definitions, and cost perspectives are used.
- What research method was used?
- Systematic Literature Review with 51 case studies.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2026 journal from Discover Applied Sciences.
- What should I do differently in my next project?
- When evaluating design options, utilize LCC frameworks that extend beyond initial construction costs to include operational, maintenance, and end-of-life phases, with a specific focus on how circular material choices and design strategies impact these long-term costs.
- What are the limitations?
- The review is based on published literature, which may not capture all industry practices. The definition of system boundaries and cost perspectives in LCC studies can vary significantly, making direct comparisons challenging.