ASTM E833-09

Standard Terminology of Building Economics

SCOPE
1.1 This terminology relates to the economic evaluation of building construction as used in other standards under the jurisdiction of ASTM Committee E06 on Performance of Buildings, and it does not necessarily correspond to the terminology used in other areas of accounting and economics.

General Information

• Status: Historical
• Publication Date: 30-Apr-2009
• ICS: 01.040.91 - Construction materials and building (Vocabularies)
• ICS: 91.010.01 - Construction industry in general
• Technical Committee: E06 - Performance of Buildings
• Drafting Committee: E06.81 - Building Economics

Relations

• Replaces: ASTM E833-08 - Standard Terminology of Building Economics
• Effective Date: 01-May-2009
• Replaced By: ASTM E833-09a - Standard Terminology of Building Economics
• Effective Date: 01-Nov-2009
• 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-2009
• Referred By: ASTM E2168-10(2023) - Standard Classification for Allowance, Contingency, and Reserve Sums in Building Construction Estimating
• Effective Date: 01-May-2009
• Referred By: ASTM E3372-23 - Standard Guide for Schedule Performance Index, Schedule Beta (β<inf>s</inf >)
• Effective Date: 01-May-2009
• Referred By: ASTM E2166-16(2023) - Standard Practice for Organizing and Managing Building Data
• Effective Date: 01-May-2009
• Referred By: ASTM E1185-15(2020)e1 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 01-May-2009
• Referred By: ASTM D1356-20a - Standard Terminology Relating to Sampling and Analysis of Atmospheres
• Effective Date: 01-May-2009
• Referred By: ASTM E2691-20 - Standard Practice for Job Productivity Measurement
• Effective Date: 01-May-2009
• Referred By: ASTM E3200-21 - Standard Guide for Investment Analysis in Environmentally Sustainable Manufacturing
• Effective Date: 01-May-2009
• Referred By: ASTM E2637-17 - Standard Guide for Utilizing the Environmental Cost Element Structure Presented by Classification <astmref design="E2150"/>
• Effective Date: 01-May-2009
• Referred By: ASTM E3035-15(2020) - Standard Classification for Facility Asset Component Tracking System (FACTS)
• Effective Date: 01-May-2009
• 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-2009
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 01-May-2009
• Referred By: ASTM E1946-18(2023) - Standard Practice for Measuring Cost Risk of Buildings and Building Systems and Other Constructed Projects
• Effective Date: 01-May-2009

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.
Designation:E833–09
Standard Terminology of
1
Building Economics
This standard is issued under the fixed designation E833; 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. Scope resources and the effort of the overall program or project
activities are measured, assessed, and controlled.
1.1 This terminology relates to the economic evaluation of
benefit-cost analysis, n—a method of evaluating projects or
building construction as used in other standards under the
investments by comparing the present value or annual value
jurisdiction of ASTM Committee E06 on Performance of
of expected benefits to the present value or annual value of
Buildings, and it does not necessarily correspond to the
expected costs.
terminology used in other areas of accounting and economics.
benefit-to-cost ratio (BCR), n—benefits divided by costs,
2. Terminology where both are discounted to a present value or equivalent
uniform annual value (syn. benefit-cost ratio).
adjusted internal rate-of-return (AIRR), n—the compound
break even analysis, n—a technique for determining that
rate of interest that, when used to discount the terminal
value of a variable which results in benefits (savings) just
values of costs and benefits of a project over a given study
equal to costs.
period, will make the costs equal the benefits when cash
building decision, n—a decision regarding the design, financ-
flows are reinvested at a specified rate (syn. financial
ing, engineering, construction, management, or operation of
management rate of return (FMRR)).
a building.
allowance, n—in construction design planning and estimating,
building economics, n—the application of economic analysis
an allocation of money that is intended to be spent for a
to the design, financing, engineering, construction, manage-
specific purpose.
ment, operation, ownership, or disposition of buildings.
DISCUSSION—An allowance is used in the absence of precise knowl-
building system, n—an aggregation or assemblage of items
edge, and estimated, to be of one’s knowledge, to ensure a full and
joined in regular interaction or interdependence in buildings
complete estimate. Allowances cover events and activities that are
or building construction.
normally directly controllable within a project plan.
capital cost, n—the costs of acquiring, substantially improv-
annual value, n—a uniform annual amount equivalent to the ing, expanding, changing the functional use of, or replacing
project costs or benefits taking into account the time value of a building or building system.
money throughout the study period (syn. annual worth, cash flow, n—the stream of monetary (dollar) values—costs
equivalent uniform annual value). and benefits—resulting from a project investment.
annual worth, n—See annual value. certainty equivalent technique, n—a technique used to adjust
annually recurring costs, n—those costs that are incurred in economic measures of project worth to reflect risk exposure
a regular pattern each year throughout the study period. and risk attitude.
base date, n—See base time.
DISCUSSION—Estimated project returns are multiplied by a certainty
base time, n—the date to which all future and past benefits and
equivalent factor (CEF) to determine the certainty equivalent amount a
costs are converted when a present value method is used
decision maker finds equally acceptable to the estimated project
(usually the beginning of the study period) (syn. base date).
returns.
baseline plan, n—an established scope, cost, schedule, and
code of accounts, n—a hierarchical, company-specific system
technical performance plan against which the status of
for cost accounting, control, and management.
Comprehensive Environmental Response, Compensation,
1
and Liability Act (CERCLA), n—also known as “Super-
This terminology is under the jurisdiction of ASTM Committee E06 on
Performance of Buildings and is the direct responsibility of Subcommittee E06.81
fund,” CERCLA prescribes actions and regulatory require-
on Building Economics.
ments for reducing risks to human health and the environ-
Current edition approved May 1, 2009. Published June 2009. Originally
ment resulting from releases or threatened releases of
approved in 1981. Last previous edition approved in 2008 as E833 – 08. DOI:
10.1520/E0833-09. hazardous substances into the environment.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

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E833–09
costs. The current replacement value for a given building may include
condition index—descriptive
...

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.
Designation:E833–08 Designation: E 833 – 09
Standard Terminology of
1
Building Economics
This standard is issued under the fixed designation E 833; 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. Scope
1.1 Thisterminologyrelatestotheeconomicevaluationofbuildingconstructionasusedinotherstandardsunderthejurisdiction
of ASTM Committee E06 on Performance of Buildings, and it does not necessarily correspond to the terminology used in other
areas of accounting and economics.
DEFINITIONS
2. Terminology
adjusted internal rate-of-return (AIRR), n—the compound rate of interest that, when used to discount the terminal values of
costs and benefits of a project over a given study period, will make the costs equal the benefits when cash flows are reinvested
at a specified rate (syn. financial management rate of return (FMRR)).
allowance, n— in construction design planning and estimating, an allocation of money that is intended to be spent for a specific
purpose.
DISCUSSION—An allowance is used in the absence of precise knowledge, and estimated, to be of one’s knowledge, to ensure a full and complete
estimate. Allowances cover events and activities that are normally directly controllable within a project plan.
annual value, n—a uniform annual amount equivalent to the project costs or benefits taking into account the time value of money
throughout the study period (syn. annual worth, equivalent uniform annual value).
annual worth, n—See annual value.
annually recurring costs, n— those costs that are incurred in a regular pattern each year throughout the study period.
base date, n—See base time.
base time, n—the date to which all future and past benefits and costs are converted when a present value method is used (usually
the beginning of the study period) (syn. base date).
baseline plan, n—an established scope, cost, schedule, and technical performance plan against which the status of resources and
the effort of the overall program or project activities are measured, assessed, and controlled.
benefit-cost analysis, n— a method of evaluating projects or investments by comparing the present value or annual value of
expected benefits to the present value or annual value of expected costs.
benefit-to-cost ratio (BCR), n—benefits divided by costs, where both are discounted to a present value or equivalent uniform
annual value (syn. benefit-cost ratio ).
break even analysis, n—a technique for determining that value of a variable which results in benefits (savings) just equal to costs.
building decision, n—a decision regarding the design, financing, engineering, construction, management, or operation of a
building.
building economics, n—the application of economic analysis to the design, financing, engineering, construction, management,
operation, ownership, or disposition of buildings.
building system, n—an aggregation or assemblage of items joined in regular interaction or interdependence in buildings or
building construction.
capital cost, n—the costs of acquiring, substantially improving, expanding, changing the functional use of, or replacing a building
or building system.
cash flow, n—the stream of monetary (dollar) values—costs and benefits—resulting from a project investment.
certainty equivalent technique, n—a technique used to adjust economic measures of project worth to reflect risk exposure and
risk attitude.
1
This terminology 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 Nov.May 1, 2008.2009. Published November 2008.June 2009. Originally approved in 1981. Last previous edition approved in 20042008 as
E 833 – 068.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
E833–09
DISCUSSION—Estimated project returns are multiplied by a certainty equivalent factor (CEF) to determine the certainty equivalent amount a decision
maker finds equally acceptable to the estimated project returns.
code of accounts, n—a hierarchical, company-specific system for cost accounting, control, and management.
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), n—also known as “Superfund,”
CERCLA
...