ASTM E2204-11a

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Designation: E2204 − 11a
StandardGuide for
Summarizing the Economic Impacts of Building-Related
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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 E964 Practice for Measuring Benefit-to-Cost and Savings-
to-Investment Ratios for Buildings and Building Systems
1.1 This guide covers a generic format for summarizing the
E1057 Practice for Measuring Internal Rate of Return and
economic impacts of building-related projects.
Adjusted Internal Rate of Return for Investments in
1.2 The guide provides technical persons, analysts, and
Buildings and Building Systems
researchers a tool for communicating project impacts in a
E1074 Practice for Measuring Net Benefits and Net Savings
condensed format to management and non-technical persons.
for Investments in Buildings and Building Systems
1.3 The generic format described in this guide calls for a
E1121 Practice for Measuring Payback for Investments in
description of the significance of the project, the analysis
Buildings and Building Systems
strategy, a listing of data and assumptions, and a presentation
E1369 Guide for Selecting Techniques for Treating Uncer-
of the key economic measures of project impact.
tainty and Risk in the Economic Evaluation of Buildings
1.4 This standard does not purport to address all of the
and Building Systems
safety concerns, if any, associated with its use. It is the
E1699 Practice for Performing Value Analysis (VA) of
responsibility of the user of this standard to establish appro-
Buildings and Building Systems and Other Constructed
priate safety and health practices and determine the applicabil-
Projects
ity of regulatory limitations prior to use.
E1765 Practice for Applying Analytical Hierarchy Process
(AHP) to Multiattribute DecisionAnalysis of Investments
2. Referenced Documents
Related to Buildings and Building Systems
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2.1 ASTM Standards:
E2506 Guide for Developing a Cost-Effective Risk Mitiga-
E631 Terminology of Building Constructions
tion Plan for New and Existing Constructed Facilities
E833 Terminology of Building Economics
2.2 Adjuncts:
E917 Practice for Measuring Life-Cycle Costs of Buildings
Discount Factor Tables, Adjunct to Practices E917, E964,
and Building Systems
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E1057, E1074, and E1121
2.3 ASTM Software Product:
1 MNL 29 Software to Support ASTM E1765: Standard
This guide is under the jurisdiction of ASTM Committee E06 on Performance
of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
PracticeforApplyingAnalyticalHierarchyProcess(AHP)
Economics.
to Multiattribute Decision Analysis of Investments Re-
Current edition approved Oct. 1, 2011. Published October 2011. Originally
2
lated to Buildings and Building Systems
approved in 2002. Last previous edition approved in 2011 as E2204 – 11. DOI:
10.1520/E2204-11A.
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 − 11a
3. Terminology 5.9 Use the guide to summarize the impacts of projects that
affect parties that are internal to the organization preparing the
3.1 Definitions—For definitions of terms used in this guide,
summary as well as projects that affect not only the organiza-
refer to Terminologies E631 and E833.
tion preparing the summary but also groups external to the
organization.
4. Summary of Guide
NOTE 2—Projects whose impacts are internal only correspond to
situations where the organization preparing the summary bears all of the
4.1 This guide presents a standard format for presenting the
costs and receives all of the benefits or savings, or both, from the project.
economic impacts o
...