ASTM E1185-07e1

Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems

SIGNIFICANCE AND USE
Standard practices for measuring the economic performance of investments in buildings and building systems have been published by ASTM. A computer program that produces economic measures consistent with these practices is available. Discount Factor Tables has been published by ASTM to facilitate computing measures of performance for most of the practices.
This guide can be used to: (1) identify types of building design and system decisions that require economic analysis; (2) match the technically appropriate economic methods with the decisions; and (3) locate the methods in the ASTM practices and adjuncts listed in Section 2.  
More than one method can be technically appropriate for many building decisions. Therefore the choice in practice of which technically appropriate economic method to use for evaluating a particular building decision will often depend on the perspective of the user. Some examples of factors that influence the user are: (1) ease of applying the methods, (2) level of familiarity of the user with the methods, (3) preference of the user for different methods, and (4) presence of budget limitations for the projects.  
This guide identifies some features and limitations of the methods that might influence users' choices under varying conditions.
SCOPE
1.1 This guide identifies types of building design and building system decisions that require economic analysis and recommends ASTM practices, adjuncts, and computer programs that may be used to implement the appropriate economic methods for each decision type.

General Information

• Status: Historical
• Publication Date: 31-Mar-2007
• ICS: 91.010.20 - Contractual aspects
• Technical Committee: E06 - Performance of Buildings
• Drafting Committee: E06.81 - Building Economics

Relations

• Replaces: ASTM E1185-07 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 01-Apr-2007
• Replaced By: ASTM E1185-12 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 01-Apr-2012
• 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-Apr-2007
• Referred By: ASTM E2103/E2103M-19 - Standard Classification for Bridge Elements—UNIFORMAT II
• Effective Date: 01-Apr-2007
• 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-Apr-2007
• 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-Apr-2007
• Referred By: ASTM E3130-21 - Standard Guide for Developing Cost-Effective Community Resilience Strategies
• Effective Date: 01-Apr-2007
• 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-Apr-2007
• Referred By: ASTM E3008/E3008M-16(2023) - Standard Classification for Transportation Surface Elements—UNIFORMAT II
• Effective Date: 01-Apr-2007
• 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-Apr-2007
• Referred By: ASTM E917-17(2023) - Standard Practice for Measuring Life-Cycle Costs of Buildings and Building Systems
• Effective Date: 01-Apr-2007
• Referred By: ASTM E1121-15(2020)e1 - Standard Practice for Measuring Payback for Investments in Buildings and Building Systems
• Effective Date: 01-Apr-2007
• Referred By: ASTM E1557-09(2020)e1 - Standard Classification for Building Elements and Related Sitework—UNIFORMAT II
• Effective Date: 01-Apr-2007

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:E1185–07
Standard Guide for
Selecting Economic Methods for Evaluating Investments in
1
Buildings and Building Systems
This standard is issued under the fixed designation E1185; 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 2.2 and Footnote 4 were editorially corrected and Section 7 was editorially added in January 2009.
1. Scope 4. Significance and Use
1.1 This guide identifies types of building design and 4.1 Standard practices for measuring the economic perfor-
building system decisions that require economic analysis and mance of investments in buildings and building systems have
recommends ASTM practices, adjuncts, and computer pro- been published by ASTM. A computer program that produces
gramsthatmaybeusedtoimplementtheappropriateeconomic economic measures consistent with these practices is avail-
4
methods for each decision type. able. Discount Factor Tables has been published byASTM to
facilitate computing measures of performance for most of the
2. Referenced Documents
practices.
2
2.1 ASTM Standards:
4.2 This guide can be used to: (1) identify types of building
E631 Terminology of Building Constructions designandsystemdecisionsthatrequireeconomicanalysis;(2)
E833 Terminology of Building Economics
match the technically appropriate economic methods with the
E917 Practice for Measuring Life-Cycle Costs of Buildings decisions; and (3) locate the methods in the ASTM practices
and Building Systems
and adjuncts listed in Section 2.
E964 Practice for Measuring Benefit-to-Cost and Savings- 4.3 More than one method can be technically appropriate
to-Investment Ratios for Buildings and Building Systems
for many building decisions. Therefore the choice in practice
E1057 Practice for Measuring Internal Rate of Return and of which technically appropriate economic method to use for
Adjusted Internal Rate of Return for Investments in Build-
evaluating a particular building decision will often depend on
ings and Building Systems the perspective of the user. Some examples of factors that
E1074 PracticeforMeasuringNetBenefitsandNetSavings influence the user are: (1) ease of applying the methods, (2)
for Investments in Buildings and Building Systems
level of familiarity of the user with the methods, (3) preference
E1121 Practice for Measuring Payback for Investments in of the user for different methods, and (4) presence of budget
Buildings and Building Systems
limitations for the projects.
2.2 Adjuncts: 4.4 Thisguideidentifiessomefeaturesandlimitationsofthe
Discount Factor Tables Adjunct to Practices E917, E964,
methods that might influence users’ choices under varying
3
E1057, E1074, and E1121 conditions.
3. Terminology
5. How to Use This Guide
3.1 Definitions—For definitions of terms used in this guide, 5.1 Table 1 indicates which standard practices (that is,
refer to Terminologies E631 and E833.
economic methods) are technically appropriate for the follow-
ing four types of building investment decisions: acceptance/
rejection, design, size, and priority.
1
This guide is under the jurisdiction of ASTM Committee E06 on Performance
5.1.1 In the context of this guide, an acceptance/rejection
of Buildings and is the direct responsibility of Subcommittee E06.81 on Building
Economics.
decision pertains to the cost effectiveness of an individual
Current edition approved April 1, 2007. Published April 2007. Originally
building or building system. This type of decision is made
approved in 1987. Last previous edition approved in 2002 as E1185 – 02. DOI:
independently of other project evaluations. It focuses on the
10.1520/E1185-07E01.
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
4
Standards volume information, refer to the standard’s Document Summary page on The NIST Building Life-Cycle Cost (BLCC) Computer Program helps users
the ASTM website. calculate measures of worth for buildings and building components that are
3
Available from ASTM International Headquarters. Order Adjunct No. consistent with ASTM standards. The program is downloadable from http://
ADJE091703. www.eere.energy.gov/femp/information/download_blcc.html.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
´1
E1185–07
A
TABLE 1 Standard Practices For Making Building Decisions
5.3 Once the type of decision has been identified and Table
Applicable Standards 1 has been consulted for the technically appropr
...

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:E 1185–07 Designation:E1185–07
Standard Guide for
Selecting Economic Methods for Evaluating Investments in
1
Buildings and Building Systems
This standard is issued under the fixed designation E 1185; 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 2.2 and Footnote 4 were editorially corrected and Section 7 was editorially added in January 2009.
1. Scope
1.1 Thisguideidentifiestypesofbuildingdesignandbuildingsystemdecisionsthatrequireeconomicanalysisandrecommends
ASTM practices, adjuncts, and computer programs that may be used to implement the appropriate economic methods for each
decision type.
2. Referenced Documents
2
2.1 ASTM Standards:
E 631 Terminology of Building Constructions
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
2.2 ASTM Adjuncts:
Discount Factor Tables, Adjunct to Practice E917 Adjuncts:
3
Discount Factor Tables Adjunct to Practices E 917, E 964, E 1057, E 1074, and E 1121
3. Terminology
3.1 Definitions—For definitions of terms used in this guide, refer to Terminologies E 631 and E 833.
4. Significance and Use
4.1 Standard practices for measuring the economic performance of investments in buildings and building systems have been
4
published byASTM.Acomputer program that produces economic measures consistent with these practices is available. Discount
factor tables have Discount Factor Tables has been published byASTM to facilitate computing measures of performance for most
of the practices.
4.2 This guide can be used to: (1) identify types of building design and system decisions that require economic analysis; (2)
match the technically appropriate economic methods with the decisions; and (3) locate the methods in the ASTM practices and
adjuncts listed in Section 2.
4.3 Morethanonemethodcanbetechnicallyappropriateformanybuildingdecisions.Thereforethechoiceinpracticeofwhich
technically appropriate economic method to use for evaluating a particular building decision will often depend on the perspective
of the user. Some examples of factors that influence the user are: (1) ease of applying the methods, (2) level of familiarity of the
user with the methods, (3) preference of the user for different methods, and (4) presence of budget limitations for the projects.
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 1, 2007. Published April 2007. Originally approved in 1987. Last previous edition E 1185 – 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.
4
BLCC5, the “NIST Building Life-Cycle Cost Program,” Office of Applied Economics, Building and Fire Research Laboratory, National Institute of Standards and
Technology. Available at http://www.eren.doe.gov/femp. Click on “Technical Assistance” first, then on “Life-Cycle Cost Analysis.”
4
The NIST Building Life-Cycle Cost (BLCC) Computer Program helps users calculate measures of worth for buildings and building components that are consistent with
ASTM standards. The program is downloadable from http://www.eere.energy.gov/femp/information/download_blcc.html.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
´1
E1185–07
4.4 This guide identifies some features and limitations of the methods that might influence users’ choices under varying
conditions.
5. How to Use This Guide
5.1 Table 1 indi
...

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:E 1185–02 Designation:E1185–07
Standard Guide for
Selecting Economic Methods for Evaluating Investments in
1
Buildings and Building Systems
This standard is issued under the fixed designation E 1185; 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 2.2 and Footnote 4 were editorially corrected and Section 7 was editorially added in January 2009.
1. Scope
1.1 Thisguideidentifiestypesofbuildingdesignandbuildingsystemdecisionsthatrequireeconomicanalysisandrecommends
ASTM practices, adjuncts, and computer programs that may be used to implement the appropriate economic methods for each
decision type.
2. Referenced Documents
2
2.1 ASTM Standards:
E 631 Terminology of Building Constructions
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
2.2 ASTM Adjuncts:
Discount Factor Tables, Adjunct to Practice E917 Adjuncts:
3
Discount Factor Tables Adjunct to Practices E 917, E 964, E 1057, E 1074, and E 1121
3. Terminology
3.1 Definitions—For definitions of terms used in this guide, refer to Terminology E833Terminologies E 631. and E 833.
4. Significance and Use
4.1 Standard practices for measuring the economic performance of investments in buildings and building systems have been
4
published byASTM.Acomputer program that produces economic measures consistent with these practices is available. Discount
factor tables have Discount Factor Tables has been published byASTM to facilitate computing measures of performance for most
of the practices.
4.2 This guide can be used to: (1) identify types of building design and system decisions that require economic analysis; (2)
match the technically appropriate economic methods with the decisions; and (3) locate the methods in the ASTM practices and
adjuncts listed in Section 2.
4.3 Morethanonemethodcanbetechnicallyappropriateformanybuildingdecisions.Thereforethechoiceinpracticeofwhich
technically appropriate economic method to use for evaluating a particular building decision will often depend on the perspective
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.
´1
Current edition approved Oct. 10, 2002. Published November 2002. Originally published as E1185–87. Last previous edition E1185–93 (1998) .
Current edition approved April 1, 2007. Published April 2007. Originally approved in 1987. Last previous edition E 1185 – 02.
2
Annual Book of ASTM Standards, Vol 04.11.
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 Headquarters. Order ADJE091703.
3
Available from ASTM International Headquarters. Order Adjunct No. ADJE091703.
4
BLCC5, the “NIST Building Life-Cycle Cost Program,” Office of Applied Economics, Building and Fire Research Laboratory, National Institute of Standards and
Technology. Available at http://www.eren.doe.gov/femp. Click on “Technical Assistance” first, then on “Life-Cycle Cost Analysis.”
4
The NIST Building Life-Cycle Cost (BLCC) Computer Program helps users calculate measures of worth for buildings and building components that are consistent with
ASTM standards. The program is downloadable from http://www.eere.energy.gov/femp/information/download_blcc.html.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959, United States.
1

---------------------- Page: 1 ----------------------
´1
E1185–07
of the user. Some examples of factors that influence the user are: (1) ease of applying the methods, (2) level of familiarity of the
user with the methods, (3) preference of the
...