ASTM E1121-98

Standard Practice for Measuring Payback for Investments in Buildings and Building Systems

SCOPE
1.1 This practice provides a recommended procedure for calculating and applying the payback method in evaluating building designs and building systems.

General Information

• Status: Historical
• Publication Date: 09-Sep-1998
• ICS: 03.060 - Finances. Banking. Monetary systems. Insurance
• ICS: 91.010.99 - Other aspects
• Technical Committee: E06 - Performance of Buildings
• Drafting Committee: E06.81 - Building Economics

Relations

• Replaced By: ASTM E1121-02 - Standard Practice for Measuring Payback for Investments in Buildings and Building Systems
• Effective Date: 10-Oct-2002
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 10-Sep-1998
• Referred By: ASTM E3008/E3008M-16(2023) - Standard Classification for Transportation Surface Elements—UNIFORMAT II
• Effective Date: 10-Sep-1998
• Referred By: ASTM E1765-16(2023) - Standard Practice for Applying Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments Related to Projects, Products, and Processes
• Effective Date: 10-Sep-1998
• Referred By: ASTM E2506-15(2020)e1 - Standard Guide for Developing a Cost-Effective Risk Mitigation Plan for New and Existing Constructed Facilities
• Effective Date: 10-Sep-1998
• Referred By: ASTM E964-15(2020)e1 - Standard Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems
• Effective Date: 10-Sep-1998
• Referred By: ASTM E2204-15(2020)e1 - Standard Guide for Summarizing the Economic Impacts of Building-Related Projects
• Effective Date: 10-Sep-1998
• Referred By: ASTM E1074-15(2020)e1 - Standard Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems
• Effective Date: 10-Sep-1998
• Referred By: ASTM E2103/E2103M-19 - Standard Classification for Bridge Elements—UNIFORMAT II
• Effective Date: 10-Sep-1998
• Referred By: ASTM E1057-15(2020)e1 - Standard Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and Building Systems
• Effective Date: 10-Sep-1998
• Referred By: ASTM E1185-15(2020)e1 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 10-Sep-1998
• Referred By: ASTM E1557-09(2020)e1 - Standard Classification for Building Elements and Related Sitework—UNIFORMAT II
• Effective Date: 10-Sep-1998
• Referred By: ASTM E1369-15(2020)e1 - Standard Guide for Selecting Techniques for Treating Uncertainty and Risk in the Economic Evaluation of Buildings and Building Systems
• Effective Date: 10-Sep-1998
• Referred By: ASTM E917-17(2023) - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 10-Sep-1998

Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or discontinued.
Contact ASTM International (www.astm.org) for the latest information.
Designation: E 1121 – 98 An American National Standard
Standard Practice for
Measuring Payback for Investments in Buildings and
1
Building Systems
This standard is issued under the fixed designation E 1121; 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.
1. Scope 4.1.3 Section 4, Summary of Practice—Outlines the con-
tents of the practice.
1.1 This practice provides a recommended procedure for
4.1.4 Section 5, Significance and Use—Explains the signifi-
calculating and applying the payback method in evaluating
cance and use of this practice.
building designs and building systems.
4.1.5 Section 6, Procedures—Describes step-by-step the
2. Referenced Documents
procedures for making economic evaluations of buildings.
4.1.6 Section 7, Objectives, Alternatives, and Constraints—
2.1 ASTM Standards:
2
Identifies and gives examples of objectives, alternatives, and
E 833 Terminology of Building Economics
constraints for a payback evaluation.
E 917 Practice for Measuring Life-Cycle Costs of Buildings
2
4.1.7 Section 8, Data and Assumptions—Identifies data
and Building Systems
needed and assumptions that may be required in a payback
E 964 Practice for Measuring Benefit-to-Cost and Savings-
2
evaluation.
to-Investment Ratios for Buildings and Building Systems
4.1.8 Section 9, Compute Payback Period—Presents alter-
E 1057 Practice for Measuring Internal Rate of Return and
native approaches for finding the payback period.
Adjusted Internal Rate of Return for Investments in Build-
2
4.1.9 Section 10, Applications—Explains the circumstances
ings and Building Systems
for which the payback method is appropriate.
E 1074 Practice for Measuring Net Benefits for Investments
2
4.1.10 Section 11, Limitations—Discusses the limitations of
in Buildings and Building Systems
the payback method.
E 1185 Guide for Selecting Economic Methods for Evalu-
2
ating Investments in Buildings and Building Systems
5. Significance and Use
2.2 ASTM Adjuncts:
3
5.1 The payback method is part of a family of economic
Discount Factor Tables, Adjunct to Practice E 917
evaluation methods that provide measures of economic perfor-
Computer Program and User’s Guide to Building Main-
mance of an investment. Included in this family of evaluation
tenance, Repair, and Replacement Database for Life-
methods are life-cycle costing, benefit-to-cost and savings-to-
Cycle Cost Analysis, Adjunct to Practices E 917, E 964,
4
investment ratios, net benefits, and internal rates of return.
E 1057, and E 1121
5.2 The payback method accounts for all monetary values
3. Terminology associated with an investment up to the time at which cumu-
lative net benefits, discounted to present value, just pay off
3.1 Definitions—For definitions of terms used in this
initial investment costs.
practice, refer to Terminology E 833.
5.3 Use the method to find if a project recovers its invest-
4. Summary of Practice
ment cost and other accrued costs within its service life or
within a specified maximum acceptable payback period
4.1 This practice is organized as follows:
(MAPP) less than its service life. It is important to note that the
4.1.1 Section 2, Referenced Documents—Lists ASTM stan-
decision to use the payback method should be made with care.
dards and adjuncts referenced in this practice.
(See Section 11 on Limitations.)
4.1.2 Section 3, Definitions—Addresses definitions of terms
used in this practice.
6. Procedures
6.1 The recommended steps for making an economic evalu-
1
This practice is under the jurisdiction of ASTM Committee E-6 on Performance
ation of buildings or building components are summarized as
of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics. follows:
Current edition approved Sept. 10, 1998. Published March 1999. Originally
6.1.1 Identify objectives, alternatives, and constraints,
published as E 1121 – 86. Last previous edition E 1121 – 93.
2 6.1.2 Select an economic evaluation method,
Annual Book of ASTM Standards, Vol 04.11.
3
6.1.3 Compile data and establish assumptions,
Available from ASTM Headquarters. Order PCN 12-509170-10.
4
Available from ASTM Headquarters. Order PCN 12-509171-10 for the 3.5 in.
6.1.4 Convert cash flows to a common time basis, and
disk. Order PCN 12-509172-10 for the 5.25 in. disk.
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1

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NOTICE: This standard has either been superseded and replaced by a new version or discontinued.
Contact ASTM International (www.astm.org) for the latest information.
E 1121
6.1.5 Com
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