ASTM E2506-06

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Designation:E2506–06
Standard Guide for
Developing a Cost-Effective Risk Mitigation Plan for New
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and Existing Constructed Facilities
This standard is issued under the fixed designation E 2506; 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
Protecting constructed facilities from damages from natural and man-made hazards in a cost-
effective manner is a challenging task. Several measures of economic performance are available for
evaluatingbuilding-relatedinvestments.Thesemeasuresinclude,butarenotlimitedto,life-cyclecost,
present value net savings, savings-to-investment ratio, and adjusted internal rate of return. This guide
provides a generic framework for assessing the risks associated with natural and man-made hazards,
formulating combinations of risk mitigation strategies for constructed facilities exposed to those
hazards, and using measures of economic performance to identify the most cost-effective combination
of strategies.
1. Scope multiple stakeholders—owners and managers, occupants and
users, and other affected parties—in addressing natural and
1.1 This guide describes a generic framework for develop-
man-made hazards.
ing a cost-effective risk mitigation plan for new and existing
constructedfacilities—buildings,industrialfacilities,andother
2. Referenced Documents
critical infrastructure. This guide provides owners and manag-
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2.1 ASTM Standards:
ers of constructed facilities, architects, engineers, constructors,
E 631 Terminology of Building Constructions
other providers of professional services for constructed facili-
E 833 Terminology of Building Economics
ties, and researchers an approach for formulating and evaluat-
E 917 PracticeforMeasuringLife-CycleCostsofBuildings
ing combinations of risk mitigation strategies.
and Building Systems
1.2 This guide insures that the combinations of mitigation
E 964 Practice for Measuring Benefit-to-Cost and Savings-
strategies are formulated so that they can be rigorously
to-Investment Ratios for Buildings and Building Systems
analyzed with economic tools. Economic tools include evalu-
E 1057 Practice for Measuring Internal Rate of Return and
ation methods, standards that support and guide the application
Adjusted Internal Rate of Return for Investments in Build-
of those methods, and software for implementing the evalua-
ings and Building Systems
tion methods.
E 1074 Practice for Measuring Net Benefits and Net Sav-
1.3 The generic framework described in this guide helps
ings for Investments in Buildings and Building Systems
decision makers assess the likelihood that their facility and its
E 1185 Guide for Selecting Economic Methods for Evalu-
contents will be damaged from natural and man-made hazards;
ating Investments in Buildings and Building Systems
identify engineering, management, and financial strategies for
E 1369 Guide for Selecting Techniques for Treating Uncer-
abating the risk of damages; and use standardized economic
tainty and Risk in the Economic Evaluation of Buildings
evaluation methods to select the most cost-effective combina-
and Building Systems
tion of risk mitigation strategies to protect their facility.
E 1557 Classification for Building Elements and Related
1.4 The purpose of the risk mitigation plan is to provide the
Sitework—UNIFORMAT II
most cost-effective reduction in personal injuries, financial
E 1765 Practice for Applying Analytical Hierarchy Process
losses, and damages to new and existing constructed facilities.
(AHP) to Multiattribute Decision Analysis of Investments
Thus, the risk mitigation plan incorporates perspectives from
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This guide is under the jurisdiction of ASTM Committee E06 on Performance For referenced ASTM standards, visit the ASTM website, www.astm.org, or
of Buildings and is the direct responsibility of Subcommittee E06.81 on Building contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM
Economics. Standards volume information, refer to the standard’s Document Summary page on
Current edition approved Sept. 15, 2006. Published September 2006. the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
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E2506–06
Related to Buildings and Building Systems 5.2 Investments in long-lived projects, such as the erection
E 1946 Practice for Measuring Cost Risk of Buildings and of new constructed facilities or additions and alterations to
Building Systems existing constructed facilities, are characterized by uncertain-
E 2103 Classification for
...