Advantages of PVC
The whole life costs of the wood and UPVC windows
have been examined. This has entailed a net present value (NPV)
assessment, a representation of the total cost expressed as the
investment required "today" to pay for the 25 year timescale.
Issues Addressed
The NPV is based on capital and maintenance costs for both the
standard 25-year period and the whole life of the profiles of 30
years. The discount rate in the investment appraisal table is
six per cent, in accordance with normal government recommendations.
VAT is excluded. Due to this long timescale, the NPV's
provided are estimates and in some circumstances may not reflect the
actual expenditure during the lifetimes since external factors such
as the actual maintenance cost programme undertaken and the actual
maintenance cost (labour and material costs) will affect whole life
costs. The following analyses have been performed:
- 25-year NPV (standard NPV calculation period);
- NPV (to reflect the whole expected life of the profiles);
- Sensitivity analysis on painting frequency.
Following discussion with Manchester City Council, the following
general assumptions were made for the analysis:
- Number of window per property: 11;
- Capital cost wood per profile: Stg£265;
- Maintenance cost for wood per property (every five years) Stg£400;
- Maintenance cost UPVC per property: Stg£0.
The capital costs quoted are current discounted prices available
to Manchester City Council. Local, undiscounted open market
prices for the profiles were found to be higher at Stg£325 for wood
and Stg£270 for UPVC. Undiscounted prices used as part of the
DETR 2000 study were Stg£375 for wood and Stg£297 for UPVC. It
is apparent the UPVC capital cost is consistently cheaper than wood
by between 4% and 26%, the bulk purchase discounted prices
exhibiting the smallest percentage difference.
Two rates of replacement were examined for each material, 500
properties per year for 10 years and 5,000 properties per year for
10 years. Costs excluded at this stage are:
- Costs incurred due to the necessary repair/replacement of
existing stock through the current practice;
- Disposal costs of the removed windows;
- Disposal/recycling
costs at the end of life of the replaced window.
UPVC Over Wood
The table below
presents the result of the 25-year NPV assessment. The NPV for
wood is 21% greater than that for UPVC for both Option A and B.
This is a result of both higher capital costs and maintenance costs.
| 25-YEAR NPV RESULTS |
| OPTION |
NPV WOOD
|
NPV UPVC |
| A: 10 year programme of 500 units per annum |
Stg£12,542,000 |
Stg£10,378,300 |
| B: 10 year progeamme of 5,000 units per
annum |
Stg£125,419,900 |
Stg£103,783,100 |
The following table presents the results of the 30-year, whole
life NPV assessment. The NPV for wood is 22% greater than that
for UPVC for both Option A and B. This is a result of both
higher capital costs and maintenance costs.