ASTM E2204-02

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An American National Standard
Designation:E2204–02
Standard Guide for
Summarizing the Economic Impacts of Building-Related
1
Projects
This standard is issued under the fixed designation E 2204; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (e) indicates an editorial change since the last revision or reapproval.
INTRODUCTION
Quantitative descriptions of economic impacts are a basic requirement in many organizations for
evaluating budget requests and the value of a project to the organization. Several measures of
economic performance are available for evaluating building-related investments. These measures
include, but are not limited to, life-cycle cost, the benefit-to-cost ratio, adjusted internal rate of return,
and net benefits. This guide provides a generic format for presenting these economic measures of
building-related investments.
1. Scope E 1699 Practice for Performing Value Analysis (VA) of
2
Buildings and Building Systems
1.1 This guide describes a generic format for summarizing
E 1765 Practice forApplying theAnalytical Hierarchy Pro-
the economic impacts of building-related projects.
cess (AHP) to Multiattribute Decision Analysis of Invest-
1.2 The guide provides technical persons, analysts, and
3
ments Related to Buildings and Building Systems
researchers a tool for communicating project impacts in a
2.2 ASTM Adjuncts:
condensed format to management and non-technical persons.
Discount Factor Tables, Adjunct to Practice E 917
1.3 The generic format described in this guide calls for a
Computer Program and User’s Guide toAHP/Expert Choice
description of the significance of the project, the analysis
for ASTM Building Evaluation, Adjunct to Classifica-
strategy, a listing of data and assumptions, and a presentation
tions E 1557, E 1660 through E 1671, E 1693, E 1694,
of the key economic measures of project impact.
E 1700, and E 1701, and Practices E 917, E 964, E 1057,
2. Referenced Documents
E 1074, and E 1765
2.3 Other Document:
2.1 ASTM Standards:
Chapman, R. E., 2000, Benefits and Costs of Research: A
E 917 Practice for Measuring Life-Cycle Costs of Buildings
2
Case Study of Construction Systems Integration and
and Building Systems
Automation Technologies in Industrial Facilities, NISTIR
E 964 Practice for Measuring Benefit-to-Cost and Savings-
2
6501, Gaithersburg, MD: National Institute of Standards
to-Investment Ratios for Buildings and Building Systems
and Technology
E 1057 Practice for Measuring Internal Rate of Return and
Adjusted Internal Rate of Return for Investments in Build-
3. Terminology
2
ings and Building Systems
3.1 Definitions—For definitions of terms used in this guide,
E 1074 Practice for Measuring Net Benefits for Investments
2
refer to Terminology of Building Economics, E 833.
in Buildings and Building Systems
E 1121 Practice for Measuring Payback for Investments in
4. Summary of Guide
2
Buildings and Building Systems
4.1 This guide presents a standard format for presenting the
economic impacts of building-related projects. It includes the
1 entire range of private and public construction projects, as well
This guide is under the jurisdiction of ASTM Committee E06 on Performance
as research related to those projects.
of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
Current edition approved April 10, 2002. Published August 2002.
2 3
Annual Book of ASTM Standards, Vol 04.11. Annual Book of ASTM Standards, Vol 04.12.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
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E2204–02
4.2 The generic format provided in this guide helps decision 5.9 There is no limitation to the use of the guide in
makers and managers understand the background and objec- facilitating communication between project analysts and
tives of a project, the data from which impacts were calculated,
project managers and other decision makers. Substantial ben-
how impact was measured, and the significance of the project’s efits from using the guide, however, are likely to come from its
measures of worth.
application in a large institution, such as a Federal agency,
where many projects are competing for funding, and a system-
5. Significance and Use aticpresentationofresultsthatcanbecomparedacrossprojects
and agencies is needed to allocate efficiently scarce funds.
5.1 This guide reduces the time and effort to communicate
the findings of project impact studies and improves the quality
6. How to Use This Guide
of communication between those who measure economic
impacts and those who evaluate and interpret them.
6.1 The generi
...