What analytical method allows selection of the most advantageous maintenance strategy by balancing initial costs and long-term costs?

Life Cycle Cost Analysis (LCCA) is the analytical method that allows selection of the most advantageous maintenance strategy by balancing initial costs and long-term costs. LCCA is an economic evaluation technique that considers all relevant costs associated with a project or asset over its entire life cycle, from initial construction to disposal. In the context of pavement management, LCCA is used to compare different maintenance and rehabilitation strategies by considering both the initial costs of the treatment and the long-term costs associated with future maintenance, rehabilitation, and user costs (such as vehicle operating costs and delay costs). The goal of LCCA is to identify the strategy that minimizes the total life cycle cost while meeting the desired performance objectives. For example, a simple overlay might have a lower initial cost than a full-depth reconstruction, but the overlay may require more frequent maintenance and have a shorter service life, resulting in higher long-term costs. LCCA considers factors such as the discount rate (which reflects the time value of money), the expected service life of each treatment, and the predicted pavement performance over time. By comparing the present worth of the life cycle costs for each strategy, LCCA allows pavement managers to make informed decisions about which treatment is most cost-effective in the long run. This approach moves beyond simply looking at the initial cost and considers the entire life span of the pavement.