At what stage of a project is there the best influence over Total Cost of Ownership (TCO)?

The stage at which there is the best influence over Total Cost of Ownership (TCO) is during the conception phase with minimal investment. At this early stage, key decisions are made regarding the project’s scope, design, materials, and processes, all of which fundamentally impact the overall cost throughout the asset's lifecycle.

In the conception phase, stakeholders can identify potential issues, assess different design alternatives, and make choices that can significantly reduce long-term costs, such as selecting energy-efficient technologies or durable materials. These decisions not only affect initial capital costs but also operational expenses, maintenance, and disposal costs over the lifespan of the asset.

Once the project moves beyond this phase, particularly into construction or after equipment installation, the opportunities to influence TCO diminish. Changes made in later stages are often more costly and complex, making it harder to achieve the same level of cost optimization as is available early in the project life cycle. Thus, the conception phase is critical for setting the foundation for a cost-effective asset.