ASTM E2204-11

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Designation:E2204–11
Standard Guide for
Summarizing the Economic Impacts of Building-Related
1
Projects
This standard is issued under the fixed designation E2204; 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 (´) 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 E1057 Practice for Measuring Internal Rate of Return and
Adjusted Internal Rate of Return for Investments in Build-
1.1 This guide covers a generic format for summarizing the
ings and Building Systems
economic impacts of building-related projects.
E1074 PracticeforMeasuringNetBenefitsandNetSavings
1.2 The guide provides technical persons, analysts, and
for Investments in Buildings and Building Systems
researchers a tool for communicating project impacts in a
E1121 Practice for Measuring Payback for Investments in
condensed format to management and non-technical persons.
Buildings and Building Systems
1.3 The generic format described in this guide calls for a
E1369 Guide for Selecting Techniques for Treating Uncer-
description of the significance of the project, the analysis
tainty and Risk in the Economic Evaluation of Buildings
strategy, a listing of data and assumptions, and a presentation
and Building Systems
of the key economic measures of project impact.
E1699 Practice for Performing Value Analysis (VA) of
1.4 This standard does not purport to address all of the
Buildings and Building Systems and Other Constructed
safety concerns, if any, associated with its use. It is the
Projects
responsibility of the user of this standard to establish appro-
E1765 Practice for Applying Analytical Hierarchy Process
priate safety and health practices and determine the applicabil-
(AHP) to Multiattribute Decision Analysis of Investments
ity of regulatory limitations prior to use.
Related to Buildings and Building Systems
2. Referenced Documents E2506 Guide for Developing a Cost-Effective Risk Mitiga-
2
tion Plan for New and Existing Constructed Facilities
2.1 ASTM Standards:
2.2 Adjuncts:
E833 Terminology of Building Economics
Discount Factor Tables, Adjunct to Practices E917, E964,
E917 Practice for Measuring Life-Cycle Costs of Buildings
3
E1057, E1074, and E1121
and Building Systems
2.3 ASTM Software Product:
E964 Practice for Measuring Benefit-to-Cost and Savings-
MNL 29, Software to Support ASTM E1765: Standard
to-Investment Ratios for Buildings and Building Systems
PracticeforApplyingAnalyticalHierarchyProcess(AHP)
to Multiattribute Decision Analysis of Investments Re-
1 2
This guide is under the jurisdiction of ASTM Committee E06 on Performance lated to Buildings and Building Systems
of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
3. Terminology
Current edition approved March 1, 2011. Published May 2011. Originally
´1
3.1 Definitions—For definitions of terms used in this guide,
approved in 2002. Last previous edition approved in 2005 as E2204 – 05 . DOI:
10.1520/E2204-11.
refer to Terminology E833.
2
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM
3
Standards volume information, refer to the standard’s Document Summary page on Available from ASTM International Headquarters. Order Adjunct No.
the ASTM website. ADJE091703.
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E2204–11
costs and receives all of the benefits or savings, or both, from the project.
4. Summary of Guide
Examples include, but are not limited to, the use of innovative construc-
4.1 This guide presents a standard format for presenting the
tion practices or alternative building materials, components, or systems
economic impacts of building-related projects. It includes the
that reduce initial costs or future costs, or both, to the building owner.
entire range of private and public construction projects, as well
NOTE 3—Projects with a public-sector component frequently have
as research related to those projects. impacts that reach beyond
...