ASTM E833-13b

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: 31-Oct-2013
• 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 E833-13a - Standard Terminology of Building Economics
• Effective Date: 01-Nov-2013
• Referred By: ASTM E2691-20 - Standard Practice for Job Productivity Measurement
• Effective Date: 01-Nov-2013
• Referred By: ASTM E2083-05(2016) - Standard Classification for Building Construction Field Requirements, and Office Overhead & Profit
• Effective Date: 01-Nov-2013
• 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-Nov-2013
• Referred By: ASTM E2114-23 - Standard Terminology for Sustainability
• Effective Date: 01-Nov-2013
• Referred By: ASTM E2168-10(2023) - Standard Classification for Allowance, Contingency, and Reserve Sums in Building Construction Estimating
• Effective Date: 01-Nov-2013
• Referred By: ASTM E1946-18(2023) - Standard Practice for Measuring Cost Risk of Buildings and Building Systems and Other Constructed Projects
• Effective Date: 01-Nov-2013
• 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-Nov-2013
• Referred By: ASTM E2103/E2103M-19 - Standard Classification for Bridge Elements—UNIFORMAT II
• Effective Date: 01-Nov-2013
• Referred By: ASTM E2637-17 - Standard Guide for Utilizing the Environmental Cost Element Structure Presented by Classification <astmref design="E2150"/>
• Effective Date: 01-Nov-2013
• Referred By: ASTM E1971-19 - Standard Guide for Stewardship for the Cleaning of Commercial and Institutional Buildings
• Effective Date: 01-Nov-2013
• Referred By: ASTM E2013-20 - Standard Practice for Developing Functions, Constructing FAST Diagrams, and Performing Function Analysis During Value Engineering (VE)/Value Analysis (VA) Study
• Effective Date: 01-Nov-2013
• Referred By: ASTM E1699-14(2020) - Standard Practice for Performing Value Engineering (VE)/Value Analysis (VA) of Projects, Products and Processes
• Effective Date: 01-Nov-2013
• 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-Nov-2013
• Referred By: ASTM E1185-15(2020)e1 - Standard Guide for Selecting Economic Methods for Evaluating Investments in Buildings and Building Systems
• Effective Date: 01-Nov-2013

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 − 13b
StandardTerminology 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 annually recurring costs, n—those costs that are incurred in a
regular pattern each year throughout the study period.
1.1 This terminology relates to the economic evaluation of
building construction as used in other standards under the
base date, n—See base time.
jurisdiction of ASTM Committee E06 on Performance of
base time, n—the date to which all future and past benefits and
Buildings, and it does not necessarily correspond to the
costs are converted when a present value method is used
terminology used in other areas of accounting and economics.
(usually the beginning of the study period) (syn. base date).
2. Referenced Documents baseline labor hour budget, n—a budget of direct labor hours
2 created at the onset of a new construction project that
2.1 ASTM Standards:
approximates how many hours will be spent on any defined
E1699 Practice for Performing Value Engineering (VE)/
part of the project.
Value Analysis (VA) of Projects, Products and Processes
DISCUSSION—Thebudgetedhoursarefirstassignedtothetasksonthe
E2691 Practice for Job Productivity Measurement
project, and can be summed to determine budgeted hours for any cost
code or for the entire project.
3. Terminology
baseline plan, n—an established scope, cost, schedule, and
adjusted internal rate-of-return (AIRR), n—the compound
technical performance plan against which the status of
rate of interest that, when used to discount the terminal
resources and the effort of the overall program or project
values of costs and benefits of a project over a given study
activities are measured, assessed, and controlled.
period, will make the costs equal the benefits when cash
benefit-cost analysis, n—a method of evaluating projects or
flows are reinvested at a specified rate (syn. financial
investments by comparing the present value or annual value
management rate of return (FMRR)).
of expected benefits to the present value or annual value of
allowance, n—in construction design planning and estimating,
expected costs.
an allocation of money that is intended to be spent for a
benefit-to-cost ratio (BCR), n—benefits divided by costs,
specific purpose.
where both are discounted to a present value or equivalent
DISCUSSION—An allowance is used in the absence of precise
uniform annual value (syn. benefit-cost ratio).
knowledge, and estimated, to be of one’s knowledge, to ensure a full
and complete estimate. Allowances cover events and activities that are
break even analysis, n—a technique for determining that
normally directly controllable within a project plan.
value of a variable which results in benefits (savings) just
equal to costs.
annual value, n—a uniform annual amount equivalent to the
project costs or benefits taking into account the time value of
building decision, n—a decision regarding the design,
money throughout the study period (syn. annual worth,
financing, engineering, construction, management, or opera-
equivalent uniform annual value).
tion of a building.
annual worth, n—See annual value.
building economics, n—the application of economic analysis
to the design, financing, engineering, construction,
management, operation, ownership, or disposition of build-
1
This terminology is under the jurisdiction of ASTM Committee E06 on
ings.
Performance of Buildings and is the direct responsibility of Subcommittee E06.81
on Building Economics.
building system, n—an aggregation or assemblage of items
Current edition approved Nov. 1, 2013. Published November 2013. Originally
joined in regular interaction or interdependence in buildings
approved in 1981. Last previous edition approved in 2013 as E833 – 13a. DOI:
or building construction.
10.1520/E0833-13B.
2
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
capital cost, n—the costs of acquiring, substantially
contact ASTM Customer Service at [e-mail]. For Annual Book of ASTM
improving, expanding, changing the functional use of, or
Standards volume information, refer to the standard’s Document Summary page on
the ASTM website. replacing a building or building system.
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1

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E833 − 13b
cash flow, n—the stream of monetary (dollar) values—costs cost limitations, n—the budget boundaries for project ele-
and benefits—resulting from a project investment. me
...

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 − 13a E833 − 13b
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
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.
2. Referenced Documents
2
2.1 ASTM Standards:
E1699 Practice for Performing Value Engineering (VE)/Value Analysis (VA) of Projects, Products and Processes
E2691 Practice for Job Productivity Measurement
3. 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.
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 Oct. 15, 2013Nov. 1, 2013. Published November 2013. Originally approved in 1981. Last previous edition approved in 2013 as
E833 – 13.E833 – 13a. DOI: 10.1520/E0833-13A.10.1520/E0833-13B.
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 Standards
volume information, refer to the standard’s Document Summary page on the ASTM website.
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 labor hour budget, n—a budget of direct labor hours created at the onset of a new construction project that approximates
how many hours will be spent on any defined part of the project.
DISCUSSION—
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
1

---------------------- Page: 1 ----------------------
E833 − 13b
The budgeted hours are first assigned to the tasks on the project, and can be summed to determine budgeted hours for any cost code or for the entire
project.
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
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