Whole Life Costing


Whole life costing takes into account the total cost of a product or service over its lifetime, from concept through to disposal including purchase, hire or lease, maintenance, operation, utilities, training and disposal. It is important for procurement to take all these elements into consideration when making decisions and comparing the costs of buying, renting or leasing equipment particularly. In most cases the purchase costs are only a small proportion of the cost of operating it.

Procurement Topics

Related concepts

Total Cost of Ownership (TCO)

Total cost of ownership serves as a key mean by which to analyse and evaluate indirect costs (van Weele, 2010).

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Whole Life Costing (WLC)

WLC takes account of the total costs of making or purchasing and then owning (or leasing), operating, maintaining and managing the requirement (including its end of life, whether that...

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Whole Life Costing (WLC)

WLC takes account of the total costs of making or purchasing and then owning (or leasing), operating, maintaining and managing the requirement (including its end of life, whether that...

Find out more