ASTM E2204-05e1

Standard Guide for Summarizing the Economic Impacts of Building-Related Projects

SIGNIFICANCE AND USE
This guide reduces the time and effort to communicate the findings of project impact studies and improves the quality of communication between those who measure economic impacts and those who evaluate and interpret them.
Following the guide assures the user that relevant economic information on the project is included in a summary format that is understandable to both the preparer and user.
Since the standard guide provides a consistent approach to reporting the economic impacts of projects, it facilitates the comparison of economic studies across projects and over time.
The guide focuses on projects in construction and building-related research. It applies to government as well as private projects. And while the examples treat building-related projects, the guide is applicable to non-building-related projects as well.
Building-sector users of this guide include building owners and managers, private-sector construction companies, research groups in building and construction industry trade associations, parties to public-sector construction projects, and government laboratories conducting building-related research.
Use the guide to summarize the results of economic impact studies that use Practices E 917 (Life-Cycle Costs), E 964 (Benefit-to-Cost and Savings-to-Investment Ratios), E 1057 (Internal Rate of Return and Adjusted Internal Rate of Return), E 1074 (Net Benefits and Net Savings), E 1121 (Payback), E 1699 (Value Analysis), and E 1765 (Analytical Hierarchy Process for Multiattribute Decision Analysis).
Use this guide in conjunction with Guide E 1369 to summarize the results of economic impact studies involving natural or man-made hazards, or both, that occur infrequently but have significant consequences.
Use the guide to summarize the impacts of projects that affect exclusively initial costs, benefits, or savings, as well as projects that affect life-cycle costs, benefits, or savings.
Note 1—Examples of projects dealing exclusively with initi...
SCOPE
1.1 This guide covers a generic format for summarizing the economic impacts of building-related projects.
1.2 The guide provides technical persons, analysts, and researchers a tool for communicating project impacts in a condensed format to management and non-technical persons.
1.3 The generic format described in this guide calls for a description of the significance of the project, the analysis strategy, a listing of data and assumptions, and a presentation of the key economic measures of project impact.

General Information

• Status: Historical
• Publication Date: 30-Apr-2005
• ICS: 03.100.01 - Company organization and management in general
• ICS: 91.020 - Physical planning. Town planning
• Technical Committee: E06 - Performance of Buildings
• Drafting Committee: E06.81 - Building Economics

Relations

• Replaces: ASTM E2204-05 - Standard Guide for Summarizing the Economic Impacts of Building-Related Projects
• Effective Date: 01-May-2005
• Replaced By: ASTM E2204-11 - Standard Guide for Summarizing the Economic Impacts of Building-Related Projects
• Effective Date: 01-May-2005
• 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: 01-May-2005
• 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: 01-May-2005
• Referred By: ASTM E917-17(2023) - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 01-May-2005
• 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: 01-May-2005
• 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: 01-May-2005
• 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: 01-May-2005
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 01-May-2005

Standards Content (Sample)

NOTICE: This standard has either been superseded and replaced by a new version or withdrawn.
Contact ASTM International (www.astm.org) for the latest information
´1
Designation:E2204–05
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.
1
´ NOTE—Section 2 was editorially corrected in February 2009.
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 for Investments in Buildings and Building Systems
E1121 Practice for Measuring Payback for Investments in
1.1 This guide covers a generic format for summarizing the
Buildings and Building Systems
economic impacts of building-related projects.
E1369 Guide for Selecting Techniques for Treating Uncer-
1.2 The guide provides technical persons, analysts, and
tainty and Risk in the Economic Evaluation of Buildings
researchers a tool for communicating project impacts in a
and Building Systems
condensed format to management and non-technical persons.
E1699 Practice for Performing Value Analysis (VA) of
1.3 The generic format described in this guide calls for a
Buildings and Building Systems
description of the significance of the project, the analysis
E1765 Practice for Applying Analytical Hierarchy Process
strategy, a listing of data and assumptions, and a presentation
(AHP) to Multiattribute Decision Analysis of Investments
of the key economic measures of project impact.
Related to Buildings and Building Systems
2. Referenced Documents
2.2 Adjuncts:
2
Discount Factor Tables, Adjunct to Practices E917, E964,
2.1 ASTM Standards:
3
E1057, E1074, and E1121
E833 Terminology of Building Economics
2.3 ASTM Software Product:
E917 Practice for Measuring Life-Cycle Costs of Buildings
MNL 29, Software to Support ASTM E1765: Standard
and Building Systems
PracticeforApplyingAnalyticalHierarchyProcess(AHP)
E964 Practice for Measuring Benefit-to-Cost and Savings-
to Multiattribute Decision Analysis of Investments Re-
to-Investment Ratios for Buildings and Building Systems
2
lated to Buildings and Building Systems
E1057 Practice for Measuring Internal Rate of Return and
Adjusted Internal Rate of Return for Investments in Build-
3. Terminology
ings and Building Systems
3.1 Definitions—For definitions of terms used in this guide,
E1074 Practice for Measuring Net Benefits and Net Savings
refer to Terminology E833.
1 4. Summary of Guide
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
4.1 This guide presents a standard format for presenting the
Economics.
economic impacts of building-related projects. It includes the
Current edition approved May 1, 2005. Published May 2005. Originally
entire range of private and public construction projects, as well
approved in 2002. Last previous edition approved in 2002 as E2204 – 02. DOI:
10.1520/E2204-05E01.
as research related to those projects.
2
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
contact ASTM Customer Service at [e-mail]. 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.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
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E2204–05
Examples include, but are not limited to, building-related research
4.2 The generic format provided in this guide helps decision
conducted by government laboratories, projects aimed at mitigating the
makers and managers understand the background and objec-
consequences of natural or man-made hazards, or both, that have the
tives of a project, the data from which impacts were calculated,
potential to cause collateral damage, and highway and bridge construc-
how impact was measured, and the significance of the project’s
tions that affect traffic patterns.
measures of worth.
5.10 There is no limitation to the use of the guide in
5. Significance and Use
facilitating communication between project analysts and
5.1 This guide reduces the time an
...

This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
´1
Designation:E2204–05 Designation: E 2204 – 05
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 (´) indicates an editorial change since the last revision or reapproval.
1
´ NOTE—Section 2 was editorially corrected in February 2009.
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
1.1 This guide covers a generic format for summarizing the economic impacts of building-related projects.
1.2 The guide provides technical persons, analysts, and researchers a tool for communicating project impacts in a condensed
format to management and non-technical persons.
1.3 The generic format described in this guide calls for a description of the significance of the project, the analysis strategy, a
listing of data and assumptions, and a presentation of the key economic measures of project impact.
2. Referenced Documents
2
2.1 ASTM Standards:
E 833 Terminology of Building Economics
E 917 Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
E 964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems
E 1057 Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and
Building Systems
E 1074 Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems
E 1121 Practice for Measuring Payback for Investments in Buildings and Building Systems
E 1369 Guide for Selecting Techniques for Treating Uncertainty and Risk in the Economic Evaluation of Buildings and
Building Systems
E 1699 Practice for Performing Value Analysis (VA) of Buildings and Building Systems
E 1765 Practice for Applying the Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments
Related to Buildings and Building Systems
2.2 ASTM Adjuncts:
Discount Factor Tables,Adjunct to Practice E917
Computer Program and User’s Guide to AHP/Expert Choice for ASTM Building Evaluation,Adjunct to Classifications E1557,
E1660 through E1671, E1693, E1694, E1700, and E1701, and Practices E917Adjuncts:
3
Discount Factor Tables, Adjunct to Practices E 917, E 964, E 1057, E 1074, and E1765 , and E 1121
2.3 ASTM Software Product:
MNL 29, Software to Support ASTM E 1765: Standard Practice for Applying Analytical Hierarchy Process (AHP) to
1
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
Economics.
Current edition approved May 1, 2005. Published May 2005. Originally approved in 2002. Last previous edition approved in 2002 as E 2204 – 02.
2
For referencedASTM standards, visit theASTM website, www.astm.org, or contactASTM Customer Service at [e-mail]. For Annual Book of ASTM Standards
volume information, refer to the standard’s Document Summary page on the ASTM website.
3
Available from ASTM International Headquarters. Order Adjunct No. ADJE091703.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
´1
E2204–05
2
Multiattribute Decision Analysis of Investments Related to Buildings and Building Systems
3. Terminology
3.1 Definitions—For definitions of terms used in this guide, refer to Terminology E 833.
4. Summary of Guide
4.1 This guide presents a standard format for presenting the economic impacts of building-related projects. It includes the entire
range of private and public construction projects, as well as research related to those projects.
4.2 The generic format provided in this guide helps decision makers and managers understand the background and objectives
ofaproject,thedatafromwhichimpactswerecalculated,howimpactwasmeas
...

This document is not an ASTM standard and is intended only to provide the user of an ASTM standard an indication of what changes have been made to the previous version. Because
it may not be technically possible to adequately depict all changes accurately, ASTM recommends that users consult prior editions as appropriate. In all cases only the current version
of the standard as published by ASTM is to be considered the official document.
´1
An American National Standard Designation: E 2204 – 05
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 (´) indicates an editorial change since the last revision or reapproval.
1
´ NOTE—Section 2 was editorially corrected in February 2009.
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
1.1 This guide describescovers a generic format for summarizing the economic impacts of building-related projects.
1.2 The guide provides technical persons, analysts, and researchers a tool for communicating project impacts in a condensed
format to management and non-technical persons.
1.3 The generic format described in this guide calls for a description of the significance of the project, the analysis strategy, a
listing of data and assumptions, and a presentation of the key economic measures of project impact.
2. Referenced Documents
2
2.1 ASTM Standards:
E 833 Terminology of Building Economics
E 917 Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
E 964 Practice for Measuring Benefit-to-Cost and Savings-to-Investment Ratios for Buildings and Building Systems
E 1057 Practice for Measuring Internal Rate of Return and Adjusted Internal Rate of Return for Investments in Buildings and
Building Systems
E 1074 Practice for Measuring Net Benefits and Net Savings for Investments in Buildings and Building Systems
2
E 1121 Practice for Measuring Payback for Investments in Buildings and Building Systems Practice for Measuring Payback
for Investments in Buildings and Building Systems
E 1369 Guide for Selecting Techniques for Treating Uncertainty and Risk in the Economic Evaluation of Buildings and
Building Systems
E 1699 Practice for Performing Value Analysis (VA) of Buildings and Building Systems
E 1765 Practice for Applying the Analytical Hierarchy Process (AHP) to Multiattribute Decision Analysis of Investments
Related to Buildings and Building Systems
2.2 ASTM Adjuncts:
Discount Factor Tables,Adjunct to Practice E917
Computer Program and User’s Guide to AHP/Expert Choice for ASTM Building Evaluation,Adjunct to Classifications E1557,
E1660 through E1671, E1693, E1694, E1700, and E1701, and Practices E917Adjuncts:
1
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
Economics.
Current edition approved April 10, 2002. Published August 2002.
Current edition approved May 1, 2005. Published May 2005. Originally approved in 2002. Last previous edition approved in 2002 as E 2204 – 02.
2
For referencedASTM standards, visit theASTM website, www.astm.org, or contactASTM Customer Service at [e-mail]. For Annual Book of ASTM Standards
, Vol 04.11.volume information, refer to the standard’s Document Summary page on the ASTM website.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
´1
E2204–05
3
Discount Factor Tables, Adjunct to Practices E 917, E 964, E 1057, E 1074, and E1765 , and E 1121
2.3 Other Document:
Chapman, R. E., 2000, Benefits and Costs of Research: A Case Study of Construction Systems Integration and Automation
Technologies in Industrial Facilities,NISTIR6501,Gaithersburg,MD:NationalInstituteofStandardsandTechnologyASTM
Software Product:
MNL 29, Software to Support ASTM E 1765: Standard Practice for Applying Analytical Hierarchy Process (AHP) to
2
Multiattribute Decision Analysis of Investments Related to Buildings and Building Systems
3. Terminology
3.1 Definitions—For definitions of terms used in this guide, refer to Terminology of Building Economics, E833. E 833.
4. Summary of Guide
4.1 This guide presents a stan
...