What role does life-cycle cost analysis (LCCA) play in selecting the most cost-effective pavement rehabilitation strategy?

Life-Cycle Cost Analysis (LCCA) is an economic evaluation technique that considers all relevant costs associated with a pavement rehabilitation strategy over its entire service life, not just the initial construction cost. Its role is to identify the strategy that provides the lowest total cost, considering both agency costs and user costs. Agency costs include initial construction or rehabilitation costs, future maintenance and repair costs, and eventual reconstruction costs. User costs include vehicle operating costs (VOC), travel time costs (TTC), and accident costs. VOC are affected by pavement roughness, which increases fuel consumption and tire wear. TTC are affected by construction delays and reduced speed limits during maintenance activities. Accident costs are affected by pavement condition and work zone safety. LCCA involves estimating these costs for different rehabilitation strategies over a defined analysis period, typically 20 to 50 years. A discount rate is used to convert future costs to their present worth, reflecting the time value of money. The strategy with the lowest present worth cost is considered the most cost-effective. LCCA allows agencies to compare strategies with different initial costs and service lives, taking into account the long-term implications of each decision. For example, a strategy with a higher initial cost might have lower maintenance costs and a longer service life, resulting in a lower overall life-cycle cost. By considering both agency and user costs, LCCA provides a more comprehensive and economically sound basis for selecting pavement rehabilitation strategies. It helps agencies to make informed decisions that maximize the return on investment and minimize the total cost to society.