Abstract
The construction industry consistently strives to optimize resource allocation and maximize long-term value while adhering to budget constraints and sustainability objectives. This study investigates the application of life cycle costing as a strategic approach for evaluating the economic viability of construction projects and contractor development initiatives. The research emphasizes optimizing resource allocation and maximizing long-term value by considering all cost factors from project inception to decommissioning. The methodology employed involves a systematic process with 41 articles selected for the review analysis. Key findings highlight the role of life cycle costing in supporting informed decision-making by balancing initial investments with long-term financial outcomes, thereby enabling stakeholders to assess the fiscal sustainability of construction capacity development initiatives. The study demonstrates that life cycle costing offers a robust framework for aligning financial strategies with long-term objectives, facilitating detailed expense assessments at each project stage and promoting resource efficiency. Additionally, integrating life cycle costing into procurement processes provides a structured method for evaluating the total cost of ownership, which aids in sustainable and environmentally friendly construction project management, fostering sustainable development, and enhancing the capabilities and competitiveness of construction firms.