Strategic Framework for Lifecycle Cost Management in Green Building Projects: Managerial Economics Analysis in The Indonesian Context

Green building projects in developing countries often face implementation challenges due to the emphasis on initial costs and limited consideration of long-term economic benefits. Conventional cost management approaches are therefore insufficient to support sustainable investment decisions. This study proposes a strategic framework for lifecycle cost management (LCCM) in green building projects based on managerial economics principles, with a focus on the Indonesian context. Using a conceptual research approach, the framework integrates lifecycle costing with key managerial economics tools, including discounting, cost–benefit analysis, sensitivity analysis, and risk assessment, to support decision-making across the building lifecycle. The results indicate that lifecycle-oriented economic evaluation provides a more rational basis for assessing the financial performance of green buildings, demonstrating that higher upfront investments can be economically justified through long-term operational savings and reduced risk. The framework also supports the alignment of green building regulations with economically sound project management practices. This study contributes by positioning LCCM as a strategic managerial instrument and offers practical insights for improving the financial viability of green building investments in developing economies.