Research on Cost Estimation Optimization of International Engineering Projects Based on Life Cycle Cost Concept

Abstract

Against the complex and volatile external environment of international engineering projects, this study constructs an optimized cost estimation system by applying the Life Cycle Cost (LCC) concept, which comprehensively covers the full cycle of planning, design, demolition, construction, operation, maintenance, and disposal. International engineering projects frequently encounter multifaceted risks, including geopolitical shifts, economic fluctuations, and supply chain disruptions, rendering traditional cost estimation methods inadequate. These conventional approaches often suffer from one-sided estimating scopes and inaccurate predictions caused by uncertain external factors, primarily focusing on the construction phase while neglecting long-term operational and maintenance expenditures. To address these critical gaps, this research clarifies the LCC core calculation formulas and integrates dynamic variables to account for external uncertainties. By establishing a robust mathematical framework, the proposed model facilitates a more holistic financial assessment from project inception to final decommissioning. The research finds that the LCC concept effectively compensates for the inherent defect of overemphasizing construction-stage costs, providing stakeholders with a transparent and sustainable financial outlook. Furthermore, empirical validation demonstrates that the optimized system significantly improves the comprehensiveness, reliability, and accuracy of cost estimation for international engineering projects. Ultimately, this study offers valuable theoretical insights and practical guidelines for project managers and investors aiming to enhance cost control, mitigate financial risks, and ensure the long-term economic viability of large-scale global infrastructure developments.